TSX: ELD NYSE: EGO
VANCOUVER, Oct. 27, 2016 /PRNewswire/ - Eldorado Gold
Corporation, ("Eldorado" or "the Company") today reported the
Company's financial and operational results for the third quarter
ended September 30, 2016.
Third Quarter Summary (including discontinued
operations)
- Gold production totaled 117,782 ounces (2015: 183,226
ounces).
- Average cash costs of $566
per ounce; all-in sustaining cash costs averaged
$890 per ounce.
- Revenues totaled $156.0
million on sales of 116,882 ounces of gold.
- Average realized price of $1,335 per ounce of gold.
- Profit attributable to shareholders was $20.7 million or $0.03 per share (2015: loss of $96.1 million or $0.13 per share).
- Cash flow generated cash from operating activities of
continuing operations before changes in non-cash working capital of
$40.5 million.
- Total liquidity at quarter-end of $652.4 million, including $412.4 million in cash, cash equivalents and term
deposits, and $240.0 million in
undrawn lines of credit. Cash of $42.8
million reported under "Assets held for sale" in the balance
sheet is included in the cash figure above.
- Hosted the inaugural Investor and Analyst day, outlining
plans and guidance for the portfolio through 2020.
- Exploration highlights from Serbia, Brazil and Romania.
- 2016 guidance of 495,000 ounces of gold at all-in
sustaining costs of $915 per ounce.
This reflects the completed sale of the Jinfeng mine in September
and the planned completion of the sale of the White Mountain and
Tanjianshan mines by mid-November.
- Board appointment of Dr. George
Albino post quarter-end.
"Our Company has undergone a significant amount of change over
the last 12 months with the sale of the Chinese assets," stated
Paul Wright, President and Chief
Executive Officer of Eldorado Gold. "Our business and growth plan,
as presented at the Investor and Analyst Day in September, is on
track and we are confident that the Company will be transformed
over the next three years as we bring online our portfolio of long
lived, low cost assets."
Throughout this press
release we use cash operating cost per ounce, total cash costs per
ounce, all-in sustaining cost per ounce, gross profit from gold
mining operations, adjusted net earnings and cash flow from
operating activities before changes in non-cash working capital as
additional measures of Company performance. These are non
IFRS measures. Please see our MD&A for an explanation and
discussion of these non IFRS measures. All dollar amounts in
US$, unless stated otherwise.
|
Review of Financial Results
Continuing Operations
|
|
|
Summarized
financial results from continuing operations– millions,
except where noted
|
3 months ended
Sept 30,
|
9 months ended
Sept 30,
|
|
2016
|
2015
|
2016
|
2015
|
Revenues
|
$116.2
|
$112.4
|
$318.0
|
$370.1
|
Gold
revenues
|
$98.4
|
$107.2
|
$287.2
|
$340.8
|
Gold sold
(ounces)
|
73,740
|
95,913
|
226,346
|
289,747
|
Average realized gold
price (per ounce)
|
$1,334
|
$1,118
|
$1,269
|
$1,176
|
Cash operating costs
(per ounce sold)
|
$468
|
$527
|
$492
|
$542
|
Total cash cost (per
ounce sold)
|
$486
|
$539
|
$509
|
$557
|
All-in sustaining
cash cost (per ounce sold)
|
$777
|
$787
|
$816
|
$787
|
Gross profit from
gold mining operations
|
$45.8
|
$35.0
|
$119.2
|
$123.2
|
Including Discontinued Operations
|
|
|
Summarized
financial results including discontinued operations–
millions, except where noted
|
3 months ended
Sept 30,
|
9 months ended
Sept 30,
|
|
2016
|
2015
|
2016
|
2015
|
Gold
revenues
|
$156.0
|
$206.2
|
$478.6
|
$634.4
|
Gold sold
(ounces)
|
116,882
|
182,124
|
378,439
|
534,000
|
Average realized gold
price (per ounce)
|
$1,335
|
$1,132
|
$1,265
|
$1,188
|
Cash operating costs
(per ounce sold)
|
$566
|
$552
|
$593
|
$547
|
Total cash cost (per
ounce sold)
|
$607
|
$609
|
$640
|
$601
|
All-in sustaining
cash cost (per ounce sold)
|
$890
|
$835
|
$904
|
$819
|
Gross profit from
gold mining operations
|
$64.6
|
$53.1
|
$159.2
|
$191.7
|
Adjusted net
earnings/(loss)
|
$33.5
|
($4.0)
|
$44.6
|
$32.5
|
Net profit (loss)
attributable to shareholders of the Company
|
$20.7
|
($96.1)
|
($311.6)
|
($302.9)
|
Earnings (loss) per
share attributable to shareholders of the Company – Basic (per
share)
|
$0.03
|
($0.13)
|
($0.43)
|
($0.42)
|
Earnings (loss) per
share attributable to shareholders of the Company – Diluted (per
share)
|
$0.03
|
($0.13)
|
($0.43)
|
($0.42)
|
Profit attributable to shareholders of the Company was
$20.7 million (or $0.03 per share) for the quarter compared with a
loss of $96.1 million (or
$0.13 per share) in the third quarter
of 2015. The Company recorded non-cash charges to income tax
expense of $84.4 million during the
third quarter of 2015 mostly related to a change in the corporate
income tax rate in Greece and the
impact of foreign exchange movements. The loss reported in 2015 was
also impacted by mine standby costs in Greece of $7.0
million.
Gross profit from mining operations, including discontinued
operations, increased year over year. While gold sales volumes
fell, gross profit margins increased. The average realized price of
gold increased $203 per ounce. In
addition, at Jinfeng and White Mountain, gross margins were higher
year over year partly due to the suspension of depreciation,
depletion and amortization expense, as a result of the application
of IFRS 5 – "Non-current assets held for sale and discontinued
operations", from the date the assets and liabilities were
classified as discontinued.
Gold Operations Update
TURKEY
Kisladag
Gold production of 49,270 ounces at Kisladag
was lower year on year as a result of longer leach cycles caused by
higher leach pad lifts and lower grade ore placed on the leach pad
earlier in 2016 (2015: 69,672). The increase in average treated
head grade in the second and third quarters has been reflected in a
doubling of the daily gold adsorption rate from the beginning of
September through mid-October. During the fourth quarter, the
installation of extra carbon column sets is underway to increase
adsorption capacity. As a result the Company expects fourth quarter
gold production to return to levels achieved in 2015. Cash
operating costs per ounce decreased year on year due to higher gold
grades, and reduced waste mining. Capital expenditures for the
quarter of $7.9 million included
costs for capitalized waste stripping and sustaining construction
activities.
Efemcukuru
Gold production of 24,229 ounces for the
quarter at Efemcukuru was lower year on year due to lower average
treated head grade (2015: 27,123). An increase in cash operating
costs to $554 per ounce was mainly
driven by lower head grades. Capital expenditures of $4.7 million included underground development,
mine equipment overhauls, and process and waste rock/tailings
facilities construction projects.
CHINA
Tanjianshan
Gold production of 10,401 ounces at
Tanjianshan during the quarter was lower year on year due to a
decrease in tonnes mined from the Jinlonggou pit, but supplemented
by ore from low grade stockpiles (2015: 29,055). An unplanned
mill shutdown due to repairs to a cracked mill shell also impacted
quarterly production. Cash operating costs of $797 per ounce were higher year on year as a
result of lower production.
Jinfeng
Reported gold production at Jinfeng of 19,907
ounces reflects production through September
6, 2016, the date of closing of the Company's interest in
Jinfeng.
White Mountain
Gold production of 13,975 ounces at
White Mountain during the quarter was lower year over year due to
lower average treated head grade and reduced average recovery rates
(2015: 16,359). Cash operating costs of $811 per ounce were higher driven by lower gold
production. Capital expenditures of $1.4
million for the quarter included underground development,
tailings dam lift construction, and sustaining capital projects
within the processing plant.
Gold Projects Update
TURKEY
Kisladag Expansion
Work is expected to commence in the
fourth quarter.
GREECE
Olympias
During the quarter, 90% of the internal
steelwork for the Phase II crusher building was erected.
Installation focused on the crushers, chutes, screens and the
control room. Work completed inside the main production building
included the erection of steelwork, and the placement of tanks,
pumps and other equipment onto their foundations. The first
flotation tanks were lifted into place, the ball mill foundation
was completed, and all other concrete pertaining to the process
plant were completed. The regrind and thickening areas have also
progressed well and are nearly complete.
Total capital expenditure for the quarter was $41.7 million, including $18.9 million on the Phase II mill construction,
$13.9 million on mine development and
other surface capital works, and $8.9
million on Kokkinolakas dam construction.
Skouries
Earthworks, building erection and site
clearing all progressed during the quarter. Targeted work included
road and stockpile dome embankments, excavation work, and piling of
production building column foundations and tailings thickener area
retaining wall. Basic engineering was also underway for the
integrated waste management facility. Total capital expenditure for
the quarter was $13.2 million.
Perama Hill
The project remained on care and
maintenance. No project development activities took place
during the quarter.
ROMANIA
Certej
Engineering optimization work during the
quarter focused on the metallurgical process, water and waste
management, and site infrastructure to support ongoing permitting
activities. Development continued onsite with quarry operation,
aggregate production and onsite road and water management
construction. Offsite infrastructure work continued on
upgrading the main water line and advancing permitting of the
access road and power supply. A total of $4.0 million was spent at Certej during the
quarter, including land acquisition.
BRAZIL
Tocantinzinho
Engineering to support ongoing
permitting activities advanced during the quarter, including design
of the power line, access road, mine and waste management. Tenders
for the basic engineering of the process facilities were received
and assessed. Site activity during the quarter included
geotechnical drilling at the plant and infrastructure areas,
maintenance work on the access road and an increase in security
facilities. Capital costs incurred at Tocantinzinho during the
quarter totalled $2.8 million.
CHINA
Eastern Dragon
During the quarter, Eastern Dragon
remained on care and maintenance as the Company continued to
advance the permitting process. The Mining License application has
been accepted by the Ministry of Land and Resources. Work continued
on the forestry and land permit submittal, with submission expected
during the fourth quarter.
Exploration Review
During the quarter 14,470 metres of exploration drilling were
completed at the Company's operations and exploration projects.
Year-to-date exploration expenditures total $16.6 million.
Greece
In
Greece, exploration activities
focused on the Stratoni corridor. Development of the hanging wall
exploration crosscut and drift at Mavres Petres began in July and
advanced 105 metres during the quarter. The first hanging wall
drill stations are estimated to be completed late in the fourth
quarter.
Romania
In August,
the Company was granted the exploration license for the Bolcana
porphyry project in the Certej district. Permitting for
fourth quarter drilling is underway. Drilling during the third
quarter at the nearby Sacaramb project tested the southerly
extensions to historically mined veins in the southern part of the
deposit.
Turkey
In
Turkey, reconnaissance level
exploration continued, focused mainly on tertiary volcanic centers
in the western part of the country.
Brazil
In
Brazil, Eldorado signed option agreements with
Votorantim Metais covering in excess of 3,750 square kilometres of
licenses and license applications in Minas Gerais and Pernambuco
states. The agreement provides Eldorado the ability to earn up to 70% of any
of the licenses on delivery of a bankable feasibility study.
Drilling commenced late in the quarter on the licenses at the
Vulture showing in Pernambuco state.
China
In China, exploration drilling continued at both
the White Mountain and Tanjianshan operations. At White Mountain,
underground drilling tested step outs of the North and Far North
zones, and surface drill holes targeted potential southwest
extensions to the deposit. At Tanjianshan, drilling was conducted
at the Xijingou deposit.
Serbia
The Company continued drilling at the KMC skarn
project in Serbia. The first hole completed at the Shanac target
intersected 298 metres grading 0.78 grams per tonne gold and 0.14%
copper within magnetite-bearing skarn. Drilling will continue
through most of the fourth quarter at both the Shanac and Copper
Canyon/Gradina zones.
2016 Outlook
New guidance for 2016 gold production takes into account
discontinued operations, uses the actual September 6, 2016 closing date for the Jinfeng
transaction, and assumes a mid-November
2016 closing date for White Mountain, Tanjianshan and
Eastern Dragon.
Full year production is forecast to be 495,000 ounces of gold
with average cash costs for commercial production of $575 per ounce and all-in sustaining cash costs
of $915 per ounce. Previous guidance
(that included all operations for all of 2016) was production of
570,000 ounces of gold at average cash costs of $595 per ounce and all-in sustaining cash costs
of $930 per ounce.
Capital spending is forecast to be $80.0
million in sustaining capital and $230.0 million in new project development capital
compared with previous guidance of $95.0
million and $250.0 million
respectively. Ounce production, sustaining capital spending and
development capital spending have all been reduced due to the sale
of the Chinese assets.
Board of Directors Update
The Board of Directors is pleased to announce that it has
appointed Dr. George Albino as a new
director following a search process conducted by the Corporate
Governance and Nominating Committee of the Board.
Dr. George Albino was appointed
to the Board of Directors on October 27,
2016. Dr. Albino has over 35 years of experience in
mining and finance, having been a geologist for 18 years and as a
highly-ranked sell side analyst covering mining (principally gold)
stocks for 19 years. As a geologist he worked in industry for
a variety of producing and development companies in exploration,
operating, and corporate roles, as well as spending time in
academia and as a government research geologist. While an analyst
he worked for several global banks as well as Canadian independent
brokerages. He holds B.A.Sc., M.S., and Ph.D. degrees in geology
from Queen's University, Colorado State
University, and University of Western
Ontario, respectively.
Conference Call
A conference call to discuss the details of the Company's Third
Quarter 2016 Results will be held by senior management on
October 28, 2016 at 8:30 AM PT (11:30 AM
ET). The call will be webcast and can be accessed at
Eldorado Gold's website: www.eldoradogold.com
Conference Call
Details
|
Replay (available
until November 11, 2016)
|
|
|
|
|
Date:
|
Friday October 28,
2016
|
Toronto:
|
416 849
0833
|
Time:
|
8:30 am PT (11:30 am
ET)
|
Toll Free:
|
1 855 859
2056
|
Dial in:
|
647 427
7450
|
Pass code:
|
897 162 76
|
Toll free:
|
1 888 231
8191
|
|
About Eldorado Gold
Eldorado is a leading low cost
gold producer with mining, development and exploration operations
in Turkey, China, Greece, Romania, Serbia and Brazil. The
Company's success to date is based on a low cost strategy, a highly
skilled and dedicated workforce, safe and responsible operations,
and long-term partnerships with the communities where it
operates. Eldorado's common
shares trade on the Toronto Stock Exchange (TSX: ELD) and the New
York Stock Exchange (NYSE: EGO).
Certain of the statements made herein may contain
forward-looking statements or information within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities laws. Often, but not always,
forward-looking statements and forward-looking information can be
identified by the use of words such as "plans", "expects", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", or "believes" or the negatives thereof or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved. Forward-looking statements
or information herein include, but are not limited to the Company's
2016 Third Quarter Results.
Forward-looking statements and forward-looking information by
their nature are based on assumptions and involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements or information. We have made certain assumptions
about the forward-looking statements and information, including
assumptions about the political and economic environment that we
operate in, the future price of commodities and anticipated costs
and expenses. Even though our management believes that the
assumptions made and the expectations represented by such
statements or information are reasonable, there can be no assurance
that the forward-looking statement or information will prove to be
accurate. Furthermore, should one or more of the risks,
uncertainties or other factors materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those described in forward-looking statements or
information. These risks, uncertainties and other factors
include, among others, the following: political and economic
environment, gold price volatility; discrepancies between actual
and estimated production, mineral reserves and resources and
metallurgical recoveries; mining operational and development risk;
litigation risks; regulatory environment and restrictions,
including environmental regulatory restrictions and liability;
risks of sovereign investment; risks related to completing the
Chinese monetization process and impact of the Jinfeng, White
Mountain, Tanjianshan and Eastern Dragon sales on the Company;
currency fluctuations; speculative nature of gold exploration;
global economic climate; dilution; share price volatility;
competition; loss of key employees; additional funding
requirements; and defective title to mineral claims or property, as
well as those factors discussed in the sections entitled
"Forward-Looking Statements" and "Risk Factors" in the Company's
Annual Information Form & Form 40-F dated March 30, 2016.
There can be no assurance that forward-looking statements or
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, you should not place undue reliance
on the forward-looking statements or information contained
herein. Except as required by law, we do not expect to update
forward-looking statements and information continually as
conditions change and you are referred to the full discussion of
the Company's business contained in the Company's reports filed
with the securities regulatory authorities in Canada and the U.S.
Dr. Peter Lewis, P. Geo., Vice
President, Exploration at Eldorado, is the Qualified Person for the
technical disclosure of exploration results in this press release.
Drillhole results quoted represent mineralized widths in
drillholes, which may be greater than the true widths of
mineralized zones. Assay results reported in this release for
the KMC Project in Serbia were prepared and analyzed for gold by
fire assay at ALS laboratories in Romania. QAQC samples were
inserted into each batch at a rate of 2 standards, 2 duplicates and
variable numbers of blanks per batch.
Q3 2016 Gold
Production Highlights (in US$)
|
|
|
|
|
|
|
Third
Quarter
2016
|
Third
Quarter
2015
|
YTD
2016
|
YTD
2015
|
Gold
Production 1
|
|
|
|
|
Ounces
Sold
|
116,882
|
182,124
|
378,439
|
534,000
|
Ounces
Produced2
|
117,782
|
183,226
|
382,881
|
553,800
|
Cash Operating
Cost ($/oz)3,5
|
566
|
552
|
593
|
547
|
Total Cash
Cost ($/oz)4,5
|
607
|
609
|
640
|
601
|
Realized Price
($/oz - sold)
|
1,335
|
1,132
|
1,265
|
1,188
|
Kişladağ Mine,
Turkey
|
|
|
|
|
Ounces
Sold
|
49,247
|
69,514
|
151,868
|
216,497
|
Ounces
Produced
|
49,270
|
69,672
|
151,570
|
216,706
|
Tonnes to
Pad
|
4,345,162
|
5,291,983
|
12,648,337
|
14,391,185
|
Grade (grams /
tonne)
|
0.91
|
0.75
|
0.82
|
0.70
|
Cash Operating
Cost ($/oz)5
|
425
|
548
|
481
|
553
|
Total Cash
Cost ($/oz)4,5
|
441
|
558
|
498
|
568
|
Efemçukuru Mine,
Turkey
|
|
|
|
|
Ounces
Sold
|
24,493
|
26,399
|
74,478
|
73,250
|
Ounces
Produced
|
24,229
|
27,123
|
75,151
|
76,048
|
Tonnes
Milled
|
116,182
|
116,723
|
352,713
|
335,993
|
Grade (grams /
tonne)
|
7.32
|
8.18
|
7.41
|
8.03
|
Cash Operating
Cost ($/oz)5
|
554
|
472
|
514
|
507
|
Total Cash
Cost ($/oz)4,5
|
578
|
487
|
533
|
524
|
Tanjianshan Mine,
China
|
|
|
|
|
Ounces
Sold
|
10,401
|
37,254
|
38,354
|
80,755
|
Ounces
Produced
|
10,401
|
29,055
|
38,354
|
80,755
|
Tonnes
Milled
|
207,439
|
272,314
|
748,727
|
803,805
|
Grade (grams /
tonne)
|
1.95
|
3.28
|
1.93
|
3.38
|
Cash Operating
Cost ($/oz)5
|
797
|
450
|
829
|
435
|
Total Cash
Cost ($/oz)4,5
|
909
|
612
|
992
|
602
|
Jinfeng Mine,
China 6
|
|
|
|
|
Ounces
Sold
|
18,766
|
32,598
|
66,902
|
107,573
|
Ounces
Produced
|
19,907
|
38,028
|
68,195
|
112,948
|
Tonnes
Milled
|
199,112
|
339,300
|
766,697
|
990,744
|
Grade (grams /
tonne)
|
3.55
|
4.09
|
3.32
|
4.13
|
Cash Operating
Cost ($/oz) 5
|
639
|
639
|
705
|
566
|
Total Cash
Cost ($/oz) 4,5
|
733
|
719
|
791
|
651
|
White Mountain
Mine, China
|
|
|
|
|
Ounces
Sold
|
13,975
|
16,359
|
46,837
|
55,925
|
Ounces
Produced
|
13,975
|
16,359
|
46,837
|
55,925
|
Tonnes
Milled
|
216,783
|
214,025
|
621,867
|
631,385
|
Grade (grams /
tonne)
|
2.47
|
2.85
|
2.75
|
3.12
|
Cash Operating
Cost ($/oz) 5
|
811
|
761
|
725
|
699
|
Total Cash
Cost ($/oz) 4,5
|
851
|
799
|
765
|
738
|
Olympias,
Greece
|
|
|
|
|
Ounces
Sold
|
-
|
-
|
-
|
-
|
Ounces
Produced2
|
-
|
2,989
|
2,774
|
11,418
|
Tonnes
Milled
|
-
|
119,315
|
87,350
|
423,248
|
Grade (grams /
tonne)
|
-
|
1.02
|
2.47
|
1.89
|
Cash Operating
Cost ($/oz)5
|
-
|
-
|
-
|
-
|
Total Cash
Cost ($/oz)4,5
|
-
|
-
|
-
|
-
|
1
|
Gold production
includes both continuing and discontinued operations.
|
2
|
Ounces produced
include production from tailings retreatment at
Olympias.
|
3
|
Cost figures
calculated in accordance with the Gold Institute
Standard.
|
4
|
Cash operating costs,
plus royalties and the cost of off-site administration.
|
5
|
Cash operating costs
and total cash costs are non-IFRS measures. Please see our MD&A
for an explanation and discussion of these.
|
6
|
Figures shown for Q3
and YTD 2016 reflect the sale of Jinfeng on September 6,
2016.
|
Eldorado Gold Corporation
Unaudited Condensed Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars)
|
|
September 30,
2016
|
December 31,
2015
|
|
|
$
|
$
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
364,298
|
288,189
|
|
Term
deposits
|
|
5,305
|
4,382
|
|
Restricted
cash
|
|
255
|
248
|
|
Marketable securities
|
|
39,497
|
18,331
|
|
Accounts receivable
and other
|
|
61,553
|
85,468
|
|
Inventories
|
|
120,662
|
175,626
|
|
Assets held for
sale
|
5
|
822,664
|
-
|
|
|
1,414,234
|
572,244
|
Other
assets
|
|
86,165
|
83,147
|
Defined benefit
pension plan
|
|
12,369
|
10,897
|
Property, plant and
equipment
|
|
3,567,473
|
4,747,759
|
Goodwill
|
|
-
|
50,276
|
|
|
5,080,241
|
5,464,323
|
LIABILITIES &
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
119,351
|
236,819
|
|
Current
debt
|
6
|
10,000
|
-
|
|
Liabilities held for
sale
|
5
|
173,223
|
-
|
|
|
302,574
|
236,819
|
Debt
|
6
|
591,040
|
589,395
|
Other non-current
liability
|
|
7,087
|
6,166
|
Asset retirement
obligations
|
|
79,649
|
102,636
|
Deferred income tax
liabilities
|
|
425,539
|
607,871
|
|
|
1,405,889
|
1,542,887
|
Equity
|
|
|
|
Share
capital
|
|
2,819,101
|
5,319,101
|
Treasury
stock
|
|
(7,794)
|
(10,211)
|
Contributed
surplus
|
|
2,604,195
|
47,236
|
Accumulated other
comprehensive loss
|
|
3,294
|
(20,572)
|
Deficit
|
|
(1,895,475)
|
(1,583,873)
|
Total equity
attributable to shareholders of the Company
|
|
3,523,321
|
3,751,681
|
Attributable to
non-controlling interests
|
|
151,031
|
169,755
|
|
|
3,674,352
|
3,921,436
|
|
|
5,080,241
|
5,464,323
|
Approved on behalf of the Board of Directors
(Signed)
John Webster
|
Director
|
(Signed)
Paul N. Wright
|
Director
|
For accompanying notes, please see the
consolidated financial statements.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Income Statements
(Expressed in thousands of U.S. dollars except per share
amounts)
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
Note
|
|
(restated)*
|
|
|
(restated)*
|
|
|
2016
|
2015
|
|
2016
|
2015
|
Continuing
operations:
|
|
$
|
$
|
|
$
|
$
|
Revenue
|
|
|
|
|
|
|
|
Metal
sales
|
|
116,231
|
112,372
|
|
317,986
|
370,106
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
|
|
|
Production
costs
|
|
50,498
|
58,273
|
|
144,632
|
192,220
|
|
Inventory write-down
(reversal)
|
|
(298)
|
1,595
|
|
-
|
7,806
|
|
Depreciation and
amortization
|
|
16,908
|
22,528
|
|
53,427
|
65,117
|
|
|
67,108
|
82,396
|
|
198,059
|
265,143
|
Gross
profit
|
|
49,123
|
29,976
|
|
119,927
|
104,963
|
|
|
|
|
|
|
|
Exploration
expenses
|
|
4,969
|
4,319
|
|
10,243
|
9,985
|
Mine standby costs
(recovery)
|
|
(415)
|
7,027
|
|
14,962
|
8,439
|
General and
administrative expenses
|
|
9,282
|
9,538
|
|
29,437
|
32,591
|
Defined benefit
pension plan expense
|
|
292
|
406
|
|
872
|
1,266
|
Share based
payments
|
|
2,116
|
2,802
|
|
8,516
|
12,977
|
Impairment loss on
property, plant and equipment
|
|
-
|
-
|
|
-
|
254,910
|
Other write-down of
assets
|
|
164
|
6,891
|
|
643
|
6,891
|
Foreign exchange loss
(gain)
|
|
1,450
|
4,014
|
|
(1,703)
|
11,226
|
Operating profit
(loss)
|
|
31,265
|
(5,021)
|
|
56,957
|
(233,322)
|
|
|
|
|
|
|
|
Loss on disposal of
assets
|
|
221
|
2
|
|
418
|
3
|
Loss on marketable
securities and other investments
|
|
-
|
-
|
|
4,881
|
-
|
Other
income
|
|
(1,018)
|
(1,282)
|
|
(695)
|
(5,466)
|
Asset retirement
obligation accretion
|
|
449
|
483
|
|
1,346
|
1,448
|
Interest and
financing costs
|
|
758
|
3,323
|
|
10,536
|
12,756
|
Profit (loss) from
continuing operations before income tax
|
|
30,855
|
(7,547)
|
|
40,471
|
(242,063)
|
Income tax
expense
|
|
12,653
|
89,887
|
|
23,168
|
84,238
|
Profit (loss) from
continuing operations
|
|
18,202
|
(97,434)
|
|
17,303
|
(326,301)
|
Profit (loss) from
discontinued operations
|
5
|
3,745
|
1,796
|
|
(329,987)
|
26,565
|
Profit (loss) for
the period
|
|
21,947
|
(95,638)
|
|
(312,684)
|
(299,736)
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
Shareholders of the
Company
|
|
20,740
|
(96,091)
|
|
(311,602)
|
(302,935)
|
Non-controlling
interests
|
|
1,207
|
453
|
|
(1,082)
|
3,199
|
Profit (loss) for
the period
|
|
21,947
|
(95,638)
|
|
(312,684)
|
(299,736)
|
|
|
|
|
|
|
|
Profit (loss)
attributable to shareholders of the Company
|
|
|
|
|
|
|
Continuing
operations
|
|
18,453
|
(96,439)
|
|
19,356
|
(324,317)
|
Discontinued
operations
|
|
2,287
|
348
|
|
(330,958)
|
21,382
|
|
|
20,740
|
(96,091)
|
|
(311,602)
|
(302,935)
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
|
|
|
Basic
|
|
716,587
|
716,587
|
|
716,587
|
716,585
|
Diluted
|
|
716,596
|
716,587
|
|
716,594
|
716,585
|
|
|
|
|
|
|
|
Earnings (loss)
per share attributable to shareholders
|
|
|
|
|
|
|
of the
Company:
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
|
0.03
|
(0.13)
|
|
(0.43)
|
(0.42)
|
Diluted earnings
(loss) per share
|
|
0.03
|
(0.13)
|
|
(0.43)
|
(0.42)
|
|
|
|
|
|
|
|
Earnings (loss)
per share attributable to shareholders of the Company - Continuing
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
|
0.03
|
(0.13)
|
|
0.03
|
(0.45)
|
Diluted earnings
(loss) per share
|
|
0.03
|
(0.13)
|
|
0.03
|
(0.45)
|
|
|
|
|
|
|
|
* See note
5
|
|
|
|
|
|
|
For accompanying notes, please see the
consolidated financial statements.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Statements of Comprehensive
Income
(Expressed in thousands of U.S. dollars)
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
2015
|
|
2016
|
2015
|
|
|
$
|
$
|
|
$
|
$
|
|
|
|
|
|
|
|
Profit (loss) for
the period
|
|
21,947
|
(95,638)
|
|
(312,684)
|
(299,736)
|
Other
comprehensive income (loss):
|
|
|
|
|
|
|
Change in fair value
of available-for-sale financial assets, net of income
|
|
|
|
|
|
|
|
tax (recovery) of
$(267), $nil, $2,875 and $nil
|
|
(1,683)
|
(5,451)
|
|
19,411
|
(4,542)
|
Transfer of realized
loss on disposal of available-for-sale financial assets
|
|
-
|
-
|
|
4,901
|
-
|
Actuarial losses on
severance obligation
|
|
(324)
|
-
|
|
(446)
|
-
|
Total other
comprehensive income (loss) for the period
|
|
(2,007)
|
(5,451)
|
|
23,866
|
(4,542)
|
Total
comprehensive income (loss) for the period
|
|
19,940
|
(101,089)
|
|
(288,818)
|
(304,278)
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
Shareholders of the
Company
|
|
18,733
|
(101,542)
|
|
(287,736)
|
(307,477)
|
Non-controlling
interests
|
|
1,207
|
453
|
|
(1,082)
|
3,199
|
|
|
19,940
|
(101,089)
|
|
(288,818)
|
(304,278)
|
For accompanying notes, please see the
consolidated financial statements.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Statements of Cash Flows
(Expressed in thousands of U.S. dollars)
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
|
(restated)*
|
|
|
(restated)*
|
|
Note
|
2016
|
2015
|
|
2016
|
2015
|
|
|
$
|
$
|
|
$
|
$
|
Cash flows generated
from (used in):
|
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
|
|
Profit (loss) for the
period from continuing operations
|
|
18,202
|
(97,434)
|
|
17,303
|
(326,301)
|
Items not
affecting cash:
|
|
|
|
|
|
|
Asset retirement
obligation accretion
|
|
449
|
483
|
|
1,346
|
1,448
|
Depreciation and
amortization
|
|
16,908
|
22,528
|
|
53,427
|
65,117
|
Unrealized foreign
exchange loss (gain)
|
|
(70)
|
1,648
|
|
2,352
|
1,797
|
Deferred income tax
expense (recovery)
|
|
2,191
|
78,871
|
|
(10,371)
|
52,036
|
Loss on disposal of
assets
|
|
221
|
2
|
|
418
|
3
|
Other write-down of
assets
|
|
164
|
6,891
|
|
643
|
6,891
|
Impairment loss on
property, plant and equipment
|
|
-
|
-
|
|
-
|
254,910
|
Loss on marketable
securities and other investments
|
|
-
|
-
|
|
4,881
|
-
|
Share based
payments
|
|
2,116
|
2,802
|
|
8,516
|
12,977
|
Defined benefit
pension plan expense
|
|
292
|
406
|
|
872
|
1,266
|
|
|
40,473
|
16,197
|
|
79,387
|
70,144
|
Property reclamation
payments
|
|
(518)
|
(324)
|
|
(1,412)
|
(416)
|
Changes in non-cash
working capital
|
10
|
39,791
|
6,178
|
|
(19,834)
|
79,578
|
Net cash provided
(used) by operating activities of continuing
operations
|
|
79,746
|
22,051
|
|
58,141
|
149,306
|
Net cash provided
(used) by operating activities of discontinued
operations
|
|
(19,862)
|
30,509
|
|
6,671
|
32,192
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
Net cash paid on
acquisition of subsidiary
|
|
(603)
|
-
|
|
(603)
|
-
|
Purchase of property,
plant and equipment
|
|
(85,581)
|
(78,744)
|
|
(206,469)
|
(222,558)
|
Proceeds from the
sale of property, plant and equipment
|
|
578
|
1,217
|
|
1,335
|
1,323
|
Net proceeds from
sale of assets held for sale
|
5
|
264,697
|
-
|
|
264,697
|
-
|
Proceeds (loss) on
production from tailings retreatment
|
|
(170)
|
3,836
|
|
3,708
|
13,938
|
Purchase of
marketable securities
|
|
-
|
(11,079)
|
|
(2,526)
|
(16,312)
|
Proceeds from the
sale of marketable securities
|
|
-
|
-
|
|
3,665
|
-
|
Redemption of
(investment in) term deposits
|
|
12
|
(752)
|
|
(923)
|
(1,654)
|
Decrease (increase)
in restricted cash
|
|
(2)
|
(1)
|
|
(8)
|
590
|
Net cash provided
(used) by investing activities of continuing
operations
|
|
178,931
|
(85,523)
|
|
62,876
|
(224,673)
|
Net cash used by
investing activities of discontinued operations
|
|
(9,244)
|
(15,197)
|
|
(18,817)
|
(37,891)
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
Issuance of common
shares for cash
|
|
-
|
-
|
|
-
|
121
|
Dividend paid to
shareholders
|
|
-
|
(5,489)
|
|
-
|
(11,257)
|
Purchase of treasury
stock
|
|
-
|
-
|
|
-
|
(2,394)
|
Long-term and bank
debt proceeds
|
|
40,000
|
-
|
|
70,000
|
-
|
Long-term and bank
debt repayments
|
|
(60,000)
|
-
|
|
(60,000)
|
-
|
Net cash provided
(used) by financing activities of continuing
operations
|
|
(20,000)
|
(5,489)
|
|
10,000
|
(13,530)
|
Net cash used by
financing activities of discontinued operations
|
|
-
|
(8,178)
|
|
-
|
(19,619)
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
209,571
|
(61,827)
|
|
118,871
|
(114,215)
|
Cash and cash
equivalents - beginning of period
|
|
197,489
|
446,126
|
|
288,189
|
498,514
|
Cash and cash
equivalents - end of period
|
|
407,060
|
384,299
|
|
407,060
|
384,299
|
Less cash and cash
equivalents held for sale - end of period
|
|
(42,762)
|
-
|
|
(42,762)
|
-
|
Cash and cash
equivalents excluding held for sale- end of period
|
|
364,298
|
384,299
|
|
364,298
|
384,299
|
|
|
|
|
|
|
|
* See note
5
|
|
|
|
|
For accompanying notes, please see the
consolidated financial statements.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Statements of Changes in
Equity
(Expressed in thousands of U.S. dollars)
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
Note
|
2016
|
2015
|
|
2016
|
2015
|
|
|
$
|
$
|
|
$
|
$
|
Share
capital
|
|
|
|
|
|
|
Balance beginning of
period
|
|
2,819,101
|
5,319,101
|
|
5,319,101
|
5,318,950
|
|
Shares issued upon
exercise of share options, for cash
|
|
-
|
-
|
|
-
|
121
|
|
Transfer of
contributed surplus on exercise of options
|
|
-
|
-
|
|
-
|
30
|
|
Capital
reduction
|
7
|
-
|
-
|
|
(2,500,000)
|
-
|
Balance end of
period
|
|
2,819,101
|
5,319,101
|
|
2,819,101
|
5,319,101
|
|
|
|
|
|
|
|
Treasury
stock
|
|
|
|
|
|
|
Balance beginning of
period
|
|
(8,015)
|
(12,005)
|
|
(10,211)
|
(12,949)
|
|
Purchase of treasury
stock
|
|
-
|
-
|
|
-
|
(2,394)
|
|
Shares redeemed upon
exercise of restricted share units
|
|
221
|
1,556
|
|
2,417
|
4,894
|
Balance end of
period
|
|
(7,794)
|
(10,449)
|
|
(7,794)
|
(10,449)
|
|
|
|
|
|
|
|
Contributed
surplus
|
|
|
|
|
|
|
Balance beginning of
period
|
|
2,602,027
|
44,540
|
|
47,236
|
38,430
|
|
Share based
payments
|
|
2,389
|
3,041
|
|
7,892
|
13,282
|
|
Shares redeemed upon
exercise of restricted share units
|
|
(221)
|
(1,556)
|
|
(2,417)
|
(4,894)
|
|
Recognition of other
current liability related costs
|
|
-
|
(764)
|
|
(1,416)
|
(1,527)
|
|
Reversal of other
current liability and related costs
|
|
-
|
-
|
|
52,900
|
-
|
|
Transfer to share
capital on exercise of options
|
|
-
|
-
|
|
-
|
(30)
|
|
Capital
reduction
|
7
|
-
|
-
|
|
2,500,000
|
-
|
Balance end of
period
|
|
2,604,195
|
45,261
|
|
2,604,195
|
45,261
|
|
|
|
|
|
|
|
Accumulated other
comprehensive loss
|
|
|
|
|
|
|
Balance beginning of
period
|
|
5,301
|
(17,218)
|
|
(20,572)
|
(18,127)
|
|
Other comprehensive
gain (loss) for the period
|
|
(2,007)
|
(5,451)
|
|
23,866
|
(4,542)
|
Balance end of
period
|
|
3,294
|
(22,669)
|
|
3,294
|
(22,669)
|
|
|
|
|
|
|
|
Deficit
|
|
|
|
|
|
|
Balance beginning of
period
|
|
(1,916,215)
|
(266,416)
|
|
(1,583,873)
|
(53,804)
|
|
Dividends
paid
|
|
-
|
(5,489)
|
|
-
|
(11,257)
|
|
Profit (loss)
attributable to shareholders of the Company
|
|
20,740
|
(96,091)
|
|
(311,602)
|
(302,935)
|
Balance end of
period
|
|
(1,895,475)
|
(367,996)
|
|
(1,895,475)
|
(367,996)
|
Total equity
attributable to shareholders of the Company
|
|
3,523,321
|
4,963,248
|
|
3,523,321
|
4,963,248
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
|
|
|
|
Balance beginning of
period
|
|
167,466
|
304,898
|
|
169,755
|
305,414
|
|
Profit (loss)
attributable to non-controlling interests
|
|
1,207
|
453
|
|
(1,082)
|
3,199
|
|
Dividends declared to
non-controlling interests
|
|
-
|
(5,634)
|
|
-
|
(8,896)
|
|
Decrease during the
period
|
5
|
(17,642)
|
-
|
|
(17,642)
|
-
|
Balance end of
period
|
|
151,031
|
299,717
|
|
151,031
|
299,717
|
|
|
|
|
|
|
|
Total
equity
|
|
3,674,352
|
5,262,965
|
|
3,674,352
|
5,262,965
|
For accompanying notes, please see the
consolidated financial statements.
SOURCE Eldorado Gold Corporation