TSX: ELD NYSE: EGO
VANCOUVER, Feb. 23, 2017 /PRNewswire/ - Eldorado Gold
Corporation, ("Eldorado" or "the Company") today reported the
Company's financial and operational results for the fourth quarter
and year-ended December 31,
2016.
2016 Financial and Operational Highlights (including
discontinued operations)
- Loss of $344.2 million
($0.48 per share), compared to a
loss of $1,540.9 million or
$2.15 per share in 2015. Adjusted
net earnings of $47.4 million
($0.07 per share) compared to
adjusted net earnings of $13.2
million ($0.02 per share) in
2015.
- Gold production of 486,025 ounces (including production
from discontinued operations), slightly lower than the revised
third quarter guidance of 495,000 ounces of gold.
- Gold revenues were $605.9
million on sales of 483,461 ounces of gold at an
average realized gold price of $1,253 per ounce.
- All-in sustaining cash costs averaged $900 per ounce; considerably lower than
original 2016 guidance of all-in sustaining costs of $940-980 per ounce.
- Closed the year with total liquidity of approximately
$1.1 billion, including
$888.5 million in cash, cash
equivalents and term deposits, and $250
million in undrawn lines of credit.
- Completed sale of Chinese assets, which included: the
White Mountain and Tanjianshan mines and the Eastern Dragon
development project to an affiliate of Yintai Resources Co. Ltd,
and the Jinfeng Mine to a wholly-owned subsidiary of China National
Gold Group Corporation.
- Olympias Phase II is scheduled to begin
commissioning in the first quarter 2017.
- Construction at Skouries continues on track for
anticipated 2019 start-up.
- Continued improvement to the overall safety record with
a reduction in the lost time injury rate for the fifth consecutive
year.
- The Company declared that it will pay a dividend of
CDN$0.02 per Common Share on
March 16, 2017, to the holders of the
Company's outstanding Common Shares on the record date of
March 7, 2017.
- Announced the planned retirement of President and Chief
Executive Officer Paul Wright
and named George Burns as his
successor, in addition to changes to the Board of
Directors.
"2016 was a transitional year for Eldorado with Olympias and Skouries in
Greece firmly on track, and the
Chinese assets successfully sold. As we move into 2017, I strongly
believe that Eldorado is now set
for the next phase of the Company's growth. We are well positioned
to focus on and build our internal pipeline of quality assets. We
have the cash balance to internally fund our capital growth plans.
We have the right team in place to execute with George Burns poised to become the next President
and CEO," said Paul Wright,
President and Chief Executive Officer.
Throughout this press
release we use cash operating cost per ounce, total cash costs per
ounce, all-in sustaining cost per ounce, gross profit from gold
mining operations, adjusted net earnings and cash flow from
operating activities before changes in non-cash working capital as
additional measures of Company performance. These are non
IFRS measures. Please see our MD&A for an explanation and
discussion of these non IFRS measures. All dollar amounts in
US$, unless stated otherwise.
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Reserves and Resources
The Company ended 2016 with proven and probable gold reserves of
484 million tonnes at 1.24 grams per tonne gold containing 19.3
million ounces. A gold price of $1,200 per ounce was used in the reserve
estimates, the same as last year.
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Million
Ounces
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Proven and probable
in-situ gold ounces as of January 1, 2016
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24.89
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Mined ounces
including mining depletion during 2016
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(0.74)
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Sale of China
assets
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(3.27)
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Net discovered ounces
and converted resources during 2016
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0.09
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Net decrease due to
engineering and metallurgy
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(1.71)
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Proven and
probable in-situ gold ounces as of December 31, 2016
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19.26
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The complete mineral reserve and mineral resource data can be
found at the end of this news release and includes the data for
tonnes, grades and ounces.
The 22.6% overall reduction in reserve ounces was primarily
attributable to the sale of the Chinese assets followed by a
reduction in reserve ounces at Kisladag. The adjustment in ounces
at Kisladag was the result of maximizing near-term profitability
while designing a 13 million tonne per annum pit. There were also
additional downward adjustments based on recovery factors for
certain ore types.
2016 Financial Results (including discontinued
operations)
($ millions except as noted)
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2016
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Q1
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Q2
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Q3
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Q4
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2016
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Revenues
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164.1
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171.5
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174.0
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140.6
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650.2
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Gold
revenues
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160.0
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162.7
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156.0
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127.2
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605.9
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Gold sold
(oz)
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133,467
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128,090
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116,882
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105,022
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483,461
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Average realized gold
price ($/oz)
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1,198
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1,270
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1,335
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1,211
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1,253
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Cash operating
costs ($/oz)
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603
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607
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566
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531
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579
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All-in sustaining
cash cost ($/oz)
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886
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933
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890
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880
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900
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Gross profit from
gold mining operations
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41.2
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55.5
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64.6
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42.2
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203.5
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Adjusted net earnings
(loss)
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(0.7)
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11.7
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33.5
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2.9
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47.4
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Net profit (loss)
(1)
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(2.5)
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(329.9)
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20.7
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(32.5)
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(344.2)
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Earnings (loss) per
share – basic ($/share) (1)
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(0.00)
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(0.46)
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0.03
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(0.05)
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(0.48)
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Earnings (loss) per
share – diluted ($/share) (1)
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(0.00)
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(0.46)
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0.03
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(0.05)
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(0.48)
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Cash flow from
operating activities (2)
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25.1
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38.1
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52.9
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25.9
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142.0
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(1)
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Attributable to
shareholders of the Company
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(2)
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Before changes in
non-cash working capital
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Review of Annual Financial Results
Loss attributable to shareholders of the Company was
$344.2 million, ($0.48 per share), compared to a loss of
$1,540.9 million, ($2.15 per share) in 2015. The loss in 2016 was
mainly due to the $351.2 million loss
recorded on the sale of the Company's Chinese assets as well as
$13.0 million in transaction costs,
and $17.2 million in unrealized
non-cash losses on foreign exchange translation of deferred income
tax balances. The loss in 2015 was mainly due to impairment losses,
net of tax, in the amount of $1,423.0
million, and a deferred income tax charge of $63.5 million related to a change in income tax
rates in Greece.
Adjusted net earnings for the year were $47.4 million ($0.07 per share) as compared with $13.2 million ($0.02 per share) for 2015. While gross profits
from gold mining operations, including discontinued operations,
were $26.5 million lower year over
year, gross profit from Stratoni was $18.1
million higher. General and administrative expenses, defined
pension plan expense, and share based payments fell a combined
$8.9 million year over year. Tax
expense fell approximately $22.0
million, excluding the impact of the sale of the Company's
Chinese assets, due to lower withholding taxes on dividends
declared by Company subsidiaries and a decrease in the effective
tax rate related to lower taxable income from our Chinese
operations which have a 25 percent income tax rate as compared to
Turkey which has a 20 percent
income tax rate. Foreign exchange loss was $2.7 million as compared with $15.0 million in 2015, as the value of the
Canadian dollar and Brazilian real in comparison to the US dollar
stabilized during 2016, after falling significantly during
2015.
Gold sales volumes decreased year over year, reflecting lower
gold production at Kisladag and the sale of the Company's Chinese
mines during the year. Gross profit from gold mining operations
including discontinued operations fell due to lower sales volumes
and higher unit costs, partly offset by higher gold prices. Gross
profit from continuing gold mining operations (Kisladag and
Efemcukuru) increased slightly year over year on higher realized
gold prices and lower unit operating costs.
Review of Quarterly Financial Results
Loss attributable to shareholders of the Company for the quarter
was $32.5 million ($0.05 per share) as compared to a loss for the
quarter ended December 31, 2015 of
$1,238.0 million ($1.73 per share). Adjusted earnings were
$2.9 million as compared to 2015
adjusted loss of $19.3 million. The
main factors that impacted adjusted earnings for the fourth quarter
year over year were lower sales volumes partly offset by higher
gold prices. During the fourth quarter of 2015 the Company recorded
an impairment charge attributable to shareholders of the Company,
net of taxes, of $1,249.6 million
mainly related to its Skouries project.
2016 Review and 2017 Outlook
TURKEY
Kisladag
In 2016 the original guidance for Kisladag was estimated
between 225,000-240,000 ounces of gold at cash costs of
$550-600 per ounce. Total
production of 211,161 ounces was lower due to slower than expected
leach rates from certain ore types mined earlier in the year. While
gold production improved in the final quarter to 59,416 ounces,
leach pad inventory levels over the year increased by approximately
35,500 ounces. A reduction in leach pad inventory levels of
approximately 6,800 ounces occurred during the fourth quarter due
to the installation of new leach trains. The average ore
grade placed on the leach pad during the year was 0.80 grams per
tonne gold and the average cash operating cost was $474 per ounce. Capital expenditures for the year
were $39.8 million and consisted of
capitalized waste stripping, leach pad construction, mine equipment
overhauls along with various process improvements.
In 2017, Kisladag is expected to place 13.1 million
tonnes of ore on the leach pad at a grade of 0.94 grams per tonne
gold with a strip ratio of 1.2:1, producing between 230,000 –
245,000 ounces of gold. It is anticipated that with a
continued increase in gold grade to 0.94 grams per tonne, leach pad
inventory levels are expected to remain constant year over year.
Mining in the pit throughout 2017 will return to areas with
expected higher metallurgical recoveries. Projected cash costs of
$500-550 per ounce are based on
minimal tonnes of run of mine material being treated in 2017, in
combination with reduced waste mining requirements under the new
mine plan. Sustaining capital expenditures for the year are
estimated to be $45.0 million,
similar to the 2016 actual spend of $41.5
million.
Average ore grades for 2018 and 2019 are expected
to be slightly over 1.00 grams per tonne with a strip ratio
averaging 1.6:1. Kisladag is expected to produce an average
of 285,000 ounces per year with cash operating costs between
$425-475 per ounce; previous guidance
was based on an expansion to a 20 million tonne per annum mining
rate.
Efemcukuru
During 2016 Efemcukuru met its original production
guidance of 90,000-100,000 ounces of gold with cash costs between
$550-600 per ounce, finishing the
year with 98,364 ounces of gold produced at cash operating costs of
$514 per ounce. Capital spending of
$23.5 million was primarily for
underground development, the Kestane Beleni drift and the tailings
dam expansion.
In 2017, Efemcukuru is expected to mine and process over
450,000 tonnes of ore at an average grade of 7.3 grams per tonne
gold, producing between 95,000-105,000 ounces of gold, at operating
costs between $525-575 per ounce.
Sustaining capital expenditures for 2017 are expected to be
approximately $25.0 million (2016:
$23.3 million), spent primarily on
underground mine development, waste handling and tailings
facilities construction.
GREECE
Stratoni
Stratoni processed 19% more ore tonnes and produced 20% more
concentrate in 2016 than in the previous year due to
improved mine output and higher zinc grade. Stratoni reported a
profit from mining operations of $5.6
million (2015: operating loss $12.5
million). Higher lead and zinc prices resulted in improved
profitability in the second half of the year. Sustaining capital
expenditures for the year included new mine mobile equipment and
upgrades to the processing plant, water treatment circuit and the
analytical laboratory.
In 2017, the Company expects to process 187,000 tonnes of
ore at grades of 6.0% lead, 9.7% zinc and 155 grams per tonne
silver. Sustaining and mine development capital expenditure
for the year is expected to be $12.7
million.
The Mavres Petres mine currently has a life of approximately 18
months based on the known proven and probable reserves.
Geological potential exists to extend the mine life at Mavres
Petres by delineation of additional resources and in 2016 the
Company initiated a three-year mine development and drilling
program for this purpose at an anticipated total cost of
$25 million. The first drilling
results are expected in mid-2017.
Olympias
In 2016, the Olympias plant retreated 87,350 tonnes of
tailings at a grade of 2.47 grams per tonne and produced 2,774
payable ounces of gold in concentrate. Tailings retreatment ceased
at the end of February 2016 to allow
construction of the new Phase II plant to commence.
Underground mine development and access rehabilitation continued
at Olympias during 2016 in readiness for commencement of
underground ore production scheduled for the first quarter 2017. A
total of 3,680 meters of development and rehabilitation was
completed during the year together with 21,400 meters of orebody
definition drilling.
Construction of the initial stage of the new Kokkinolakas
tailings management facility (TMF) advanced substantially and
commissioning is expected by mid-2017. Capital costs incurred
in 2016 totalled $132.1 million,
consisting of mine construction, Phase II plant construction,
Kokkinolakas TMF construction and capitalized cost for tailings
retreatment.
In 2017, the Olympias mine is budgeted to process 267,000
tonnes of ore at grades of 9.6 grams per tonne gold, 3.4% lead,
3.4% zinc and 105 grams per tonne silver. Total site capital
expenditure in 2017 is expected to be $85.0
million which includes completion of the Phase II plant,
general sustaining capital expenditures, and capital associated
with advancement to Phase III including the continued construction
of the Kokkinolakas tailings facility along with underground
development and water management.
Skouries
Due to delays in the issuance of routine permits and licenses by
the Greek permitting authorities, the Company announced the
decision to suspend development at Skouries in early
2016. The majority of construction works were on hold
for the first half of the year while environmental protection works
and care and maintenance activities continued.
On May 9, 2016, the Company
received approval of the updated revised Technical Study and the
construction team began to remobilise in late May/early June and
ramped up over the next few months. During 2016, a total of
$43.5 million was spent at Skouries,
excluding capitalized exploration and capitalized interest.
Following internal reviews and engineering studies a decision
was made to convert the waste management process at the Skouries
project from paste tailings to a dry stack tailings disposal
concept. This decision facilitates early mining of higher value
underground ore and greatly reduces the environmental
footprint. Engineering design work was initiated for a
single integrated waste management facility and associated
filtration plant in the middle of 2016; the basic engineering for
the revised scope progressed during the final quarter of 2016, with
detailed engineering having commenced in early 2017.
During 2016, work was also completed on the Pre-Feasibility
Study for the Skouries underground mine design; feasibility level
engineering will be further developed in 2017.
Capital expenditures at Skouries for 2017 are expected to
be between $170.0 and $200.0 million,
lower than September 2016 guidance
mainly due to the flexibility in the capital plan in combination
with cost initiatives that are underway. Funds will be used
to continue the construction of the process plant and the
integrated waste management facility. Development of the
decline is continuing, which will allow for extraction of material
from the underground soon after the open pit start-up – currently
scheduled for 2019.
Perama Hill
The project remains on care and maintenance. In 2016, a
total of $1.0 million was spent on
the Perama Hill project.
CHINA
In 2016 the Company successfully completed the sales of
its Chinese assets: its 82 percent interest in the Jinfeng mine to
a subsidiary of China National Gold Corporation; and its respective
interests in the White Mountain and Tanjianshan Mines and Eastern
Dragon Development Project to an affiliate of Yintai Resources Co.
Ltd. Combined, the sales of the Company's Chinese assets generated
proceeds of $881.6 million, net of
taxes. A loss of $351.2 million was
recorded, net of taxes, on the sale of the assets.
Jinfeng
The sale of Jinfeng to China National
Gold closed September 6, 2016.
Gold production of 68,195 ounces was lower year over year mainly as
a result of an incomplete year due to business unit sale, and lower
ore tonnage due to completion of the open pit in 2015. Cash
operating costs of $705 per ounce
were higher year over year mainly due to lower gold production.
Capital expenditures of $6.7 million
for the year included underground development and the completion of
dry stacking facilities at the flotation and carbon in leach
tailings dams.
Tanjianshan
The sale of Tanjianshan to Yintai Resources closed November 22, 2016. Gold production of
49,266 ounces was lower year over year mainly due to lower grade
and remnant mining from the nearly complete JLG pit, an extended
mill shutdown for repairs in the third quarter, and the incomplete
year due to the sale. Cash operating costs per ounce of
$819 were higher than 2015 mainly due
to lower production and head grade. Capital expenditures of
$2.1 million for the year included
resource drilling and continuing the QLT Deep decline in order to
develop the QLT resource.
White Mountain
The sale of White Mountain to Yintai Resources closed
November 22, 2016. Gold
production of 56,265 ounces was lower year over year due to lower
treated grade and an incomplete year due to the sale. Cash
operating costs of $731 per ounce
were higher than in 2015 as a result of the lower average treated
head grade. Capital expenditures of $9.9
million for the year included underground development,
resource drilling, and land acquisition to extend the tailings
storage facility.
BRAZIL
Tocantinzinho
The Company applied for installation licences for the site,
road, and power line and initiated basic engineering for the
Tocantinzinho project during 2016. Capital costs incurred at
Tocantinzinho totalled $6.0 million
for engineering, permitting, land agreements, mobile equipment, and
site works including minor camp infrastructure and access road
improvements.
Completion of basic engineering for the site and detailed
engineering for some infrastructure will be completed in
2017 to prepare for a construction decision and advancement
of permitting. In 2017 the Company expects to spend up to
$35.0 million in capital, primarily
on engineering, early work construction and general site
improvements. This amount could change contingent on permitting and
a construction decision.
ROMANIA
Certej
In 2015 the Company released the results of the Certej
Feasibility Study. The study included improvements in the mine
design and further optimization of the flotation and oxidation
processes for gold recovery. This study resulted in a decrease in
projected capital investment and reduced life of mine capital and
operating costs as compared with the previous Pre-Feasibility
Study.
Engineering work continued during 2016 on metallurgical
testwork and trade off studies with a focus on further
optimizations to improve the project and increase the level of
engineering confidence. Work continued on the engineering for the
permitting process to reflect the proposed changes and such work
will continue to be the focus of efforts in 2017. During 2016 a
total of $11.6 million was spent on
Certej, mainly on geotechnical and metallurgical testing, site
preparation and engineering studies.
During 2017, the Company expects to spend approximately
$20.0 million at Certej, with a focus
on continuing off site infrastructure projects, advancing
permitting and support engineering as defined in the 2015
Feasibility Study.
Exploration Review
A total of $26.2 million was spent
on exploration programs in 2016. Exploration drilling totaled
51,000 meters and was conducted at 16 projects including
early-stage, brownfields and in-mine programs in Turkey, China, Brazil, Greece, Serbia and Romania.
Turkey
At Efemcukuru surface drilling programs tested extensions to
previously defined mineralized zones within the Kokarpinar vein
system. Greenfields reconnaissance exploration programs
evaluated grassroots targets in the eastern Pontide belt and
associated with Cenozoic volcanic centres in western Turkey.
China
Prior to the close of the transactions, White Mountain mine
exploration drilling was conducted from underground platforms,
testing extensions to the North and Far North Zones. Surface
drilling programs were completed on the Xiaoshiren license and the
White Mountain license. At Tanjianshan exploration drilling
was limited to testing step-out targets at the Xijingou deposit and
at the Dushugou, Qingshan and Qinlongshan occurrences.
Brazil
In Brazil, option agreements
were signed for the large Borborema and Nazareno license
areas. Mapping and geochemical sampling programs were
conducted on both of these license areas as well as at the Mara
Rosa project. An initial drilling program was completed on
the Vulture target at Borborema.
Greece
Exploration in Greece included
drilling programs at the Fisoka porphyry target and at the Rian
prospect near the Skouries deposit. At Mavres Petres, an
exploration crosscut was driven into the hangingwall of the
Stratoni Fault, enabling systematic underground exploration and
definition drilling of the untested down-dip and along-strike
extensions to the orebody beginning in early 2017.
Romania
In Romania, drilling was
conducted at the Brad, Sacaramb, Certej North and Bolcana
projects. At Sacaramb, drillholes targeted along-strike
extensions of historically mined high-grade vein systems. Two
drillholes tested deeper levels of the Bolcana porphyry system, and
porphyry and epithermal targets peripheral to the Bolcana system
were tested on the adjacent Certej North license.
Serbia
In Serbia, the Company completed acquisition of the KMC project
from Euromax Resources Ltd. and acquired five new early-stage
licenses. Drilling at KMC tested the Copper Canyon, Gravina
and Shanac areas. A large gold-rich magnetite skarn system
was identified at Shanac, and will be further drilled in 2017.
2017 Outlook
In 2017 Eldorado expects to produce 365,000-400,000 ounces of
gold, including pre-commercial ounces from Olympias Phase II. Cash
costs are forecasted at $485-535 per
ounce, with all-in sustaining cash costs expected to range from
$845-875 per ounce.
The Company's balance sheet remains one of the strongest in its
peer group, with approximately $888.5
million in cash, cash equivalents and term deposits and
$250 million in undrawn credit
lines. Sustaining capital for gold mining operations in 2017
is estimated to be approximately $70
million. Planned expenditures for mining development
total $345 million. Exploration
expenditures in 2017 are budgeted at $35
million (65% expensed and 35% capitalized), with a balanced
focus on resource delineation and brownfield drilling at existing
operations, advancing early-stage projects, and project
generation.
Depreciation, depletion and amortization expense is expected to
be approximately $335 per ounce of
gold sold. General and administrative expense is expected to be
approximately $45 million.
Financing Activities
On June 13, 2016, the Company
announced that it had renewed its revolving credit facility. The
amended and restated credit agreement includes available credit of
US$250 million, an accordion feature
of US$100 million and an extension of
the term to June 13, 2020.
Dividend
On February 23, 2017, the Company
declared that it will pay a dividend of CDN$0.02 per Common Share on March 16, 2017 to the holders of the Company's
outstanding Common Shareholders as the close of business on the
record date of March 7, 2017. The
Company did not pay dividends to shareholders in 2016, as the
decision by the Board of Directors to suspend payments was done in
consideration of the low gold price, the terms and conditions of
the Dividend Policy and the requirements of the Canada Business
Corporations Act.
Corporate
During 2016 the Board appointed Dr. George Albino in October, while Mr. Donald Shumka retired from the Board at the
Company's Annual General Meeting in May.
In December, the Company also announced that Paul Wright, the Company's current President and
Chief Executive Officer, will retire from these roles at the
upcoming Annual General Meeting in April
2017. Mr. Wright will be succeeded by Mr. George Burns, who will also join Eldorado's Board of Directors. Mr. Wright will
continue as a member of Eldorado's
Board of Directors, taking on the position of Vice-Chairman.
Conference Call
A conference call to discuss the details of the Company's 2016
Year End and Fourth Quarter Results will be held by senior
management on February 24, 2017 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
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Replay
(available until March 10, 2017)
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Date:
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Friday February 24,
2017
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Toronto:
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416 849
0833
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Time:
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8:30 am PT (11:30 am
ET)
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Toll
Free:
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855 859
2056
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Dial
in:
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647 427
7450
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Pass
code:
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4916 2097
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Toll
free:
|
888 231
8191
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About Eldorado Gold
Eldorado is a leading low cost
gold producer with mining, development and exploration operations
in Turkey, 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).
Cautionary Note about Forward-looking Statements and
Information
Certain of the statements made and information provided in
this press release are 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, these forward-looking statements and forward-looking
information can be identified by the use of words such as "plans",
"expects", "is expected", "budget", "continue", "projected",
"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 contained in this
release include, but are not limited to the Company's 2016 Year-end
and Fourth Quarter Financial and Operational Results, including
statements or information with respect to: our guidance and
outlook, including expected production, projected cash cost,
planned capital and exploration expenditures for 2017 and mineral
reserve and mineral resource estimates; our expectation as to our
future financial and operating performance, including future cash
flow, estimated cash costs, mineral reserve targets, expected
metallurgical recoveries, gold price outlook and proposed dividend
payment; and our strategy, plans and goals, including our proposed
exploration, development, construction, permitting, permitting and
operating plans and priorities, and related timelines.
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
geopolitical, economic, permitting and legal climate that we
operate in; the future price of gold and other commodities;
exchange rates; anticipated costs and expenses; production, mineral
reserves and resources and metallurgical recoveries, the impact of
acquisitions, dispositions, suspensions or delays on our business
and the ability to achieve our goals. In particular, except
where otherwise stated, we have assumed a continuation of existing
business operations on substantially the same basis as exists at
the time of this release.
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. Many
assumptions may be difficult to predict and are beyond our
control.
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: geopolitical and economic climate (global and
local), risks related to mineral tenure and permits; gold and other
metal price volatility; mining operational and development risk;
foreign country operational risks; risks of sovereign investment;
regulatory environment and restrictions, including environmental
regulatory restrictions and liability; discrepancies between actual
and estimated production, mineral reserves and resources and
metallurgical recoveries; risks related to impact of the sale of
our Chinese assets on the Company's operations; additional funding
requirements; currency fluctuations; litigation risks; community
and non-governmental organization actions; speculative nature of
gold exploration; dilution; share price volatility; competition;
loss of key employees; 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 our
business" in the Company's most recent Annual Information
Form & Form 40-F. The reader is directed to carefully review
the detailed risk discussion in our most recent Annual Information
Form filed on SEDAR under our Company name, which discussion is
incorporated by reference in this release, for a fuller
understanding of the risks and uncertainties that affect the
Company's business and operations.
Forward-looking statements and information is designed to
help you understand management's current views of our near and
longer term prospects, and it may not be appropriate for other
purposes.
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.
Financial Information and condensed statements contained
herein or attached hereto may not be suitable for readers that are
unfamiliar with the Company and is not a substitute for reading the
full annual financial statements and related MD&A available on
our website and on SEDAR under our Company name. The reader
is directed to carefully review such document for a full
understanding of the financial information summarized
herein.
Except as otherwise noted, scientific and technical
information contained in this press release was reviewed and
approved by Paul Skayman, FAusIMM,
Chief Operating Officer for Eldorado Gold Corporation, and a
"qualified person" as defined by Canadian Securities
Administrators' National Instrument 43-101 – Standards of
Disclosure for Mineral Projects ("NI 43-101").
Cautionary Note to US Investors Concerning Estimates of
Measured, Indicated and Inferred Resources
The terms "mineral resource", "measured mineral resource",
"indicated mineral resource", "inferred mineral resource" used
herein are Canadian mining terms used in accordance with National
Instrument 43-101 – Standards of Disclosure for Mineral Projects
("NI 43-101") under the guidelines set out in the Canadian
Institute of Mining and Metallurgy and Petroleum (the "CIM")
Standards on Mineral Resources and Mineral Reserves, adopted by the
CIM Council, as may be amended from time to time. These definitions
differ from the definitions in the United
States Securities & Exchange Commission ("SEC") Industry
Guide 7. In the United States, a
mineral reserve is defined as a part of a mineral deposit which
could be economically and legally extracted or produced at the time
the mineral reserve determination is made.
While the terms "mineral resource", "measured mineral
resource," "indicated mineral resource", and "inferred mineral
resource" are recognized and required by Canadian regulations, they
are not defined terms under standards in the United States and normally are not
permitted to be used in reports and registration statements filed
with the SEC. As such, information contained herein concerning
descriptions of mineralization and resources under Canadian
standards may not be comparable to similar information made public
by U.S. companies in SEC filings.
Mineral resources which are not mineral reserves do not have
demonstrated economic viability. With respect to "indicated
mineral resource" and "inferred mineral resource", there is a great
amount of uncertainty as to their existence and a great uncertainty
as to their economic and legal feasibility. It cannot be assumed
that all or any part of a "measured mineral resource", "indicated
mineral resource" or "inferred mineral resource" will ever be
upgraded to a higher category.
Accordingly, information herein containing descriptions of
our mineral deposits may not be comparable to similar information
made public by US companies subject to the reporting and disclosure
requirements under US federal securities laws and the rules and
regulations thereunder.
Eldorado Gold
Mineral Reserves, as of December 2016
|
|
|
|
|
|
Project
|
Proven Mineral
Reserves
|
Probable Mineral
Reserves
|
Total Proven and
Probable
|
Gold
|
Tonnes
|
Au
|
In-situ
Au
|
Tonnes
|
Au
|
In-situ
Au
|
Tonnes
|
Au
|
In-situ
Au
|
|
(x1000)
|
g/t
|
ounces
(x1000)
|
(x1000)
|
g/t
|
ounces
(x1000)
|
(x1000)
|
g/t
|
ounces
(x1000)
|
Certej
|
22,788
|
1.93
|
1,414
|
21,500
|
1.43
|
988
|
44,288
|
1.69
|
2,402
|
Efemcukuru
|
1,687
|
8.08
|
438
|
2,137
|
7.18
|
493
|
3,824
|
7.57
|
931
|
Kisladag
|
205,442
|
0.76
|
5,046
|
11,884
|
0.58
|
221
|
217,326
|
0.75
|
5,267
|
Olympias
|
4,851
|
8.65
|
1,349
|
11,236
|
7.54
|
2,724
|
16,087
|
7.87
|
4,073
|
Perama
|
2,477
|
4.44
|
354
|
7,220
|
2.68
|
621
|
9,697
|
3.13
|
975
|
Skouries
|
73,474
|
0.91
|
2,148
|
79,262
|
0.64
|
1,643
|
152,736
|
0.77
|
3,791
|
Tocantinzinho
|
16,699
|
1.53
|
821
|
22,914
|
1.36
|
1,003
|
39,613
|
1.43
|
1,824
|
TOTAL
GOLD
|
327,418
|
1.10
|
11,570
|
156,153
|
1.53
|
7,693
|
483,571
|
1.24
|
19,263
|
Silver
|
Tonnes
|
Ag
|
In-situ
Ag
|
Tonnes
|
Ag
|
In-situ
Ag
|
Tonnes
|
Ag
|
In-situ
Ag
|
|
(x1000)
|
g/t
|
ounces
(x1000)
|
(x1000)
|
g/t
|
ounces
(x1000)
|
(x1000)
|
g/t
|
ounces
(x1000)
|
Certej
|
22,788
|
10
|
7,004
|
21,500
|
12
|
8,551
|
44,288
|
11
|
15,555
|
Olympias
|
4,851
|
124
|
19,339
|
11,236
|
130
|
46,962
|
16,087
|
128
|
66,301
|
Perama
|
2,477
|
3
|
254
|
7,220
|
4
|
897
|
9,697
|
4
|
1,151
|
Stratoni
|
118
|
169
|
641
|
69
|
144
|
319
|
187
|
160
|
960
|
TOTAL
SILVER
|
30,234
|
28
|
27,238
|
40,025
|
44
|
56,729
|
70,259
|
37
|
83,967
|
Copper
|
Tonnes
|
Cu
|
In-situ
Cu
|
Tonnes
|
Cu
|
In-situ
Cu
|
Tonnes
|
Cu
|
In-situ
Cu
|
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
Skouries
|
73,474
|
0.54
|
394
|
79,262
|
0.48
|
382
|
152,736
|
0.51
|
776
|
TOTAL
COPPER
|
73,474
|
0.54
|
394
|
79,262
|
0.48
|
382
|
152,736
|
0.51
|
776
|
Lead
|
Tonnes
|
Pb
|
In-situ
Pb
|
Tonnes
|
Pb
|
In-situ
Pb
|
Tonnes
|
Pb
|
In-situ
Pb
|
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
Olympias
|
4,851
|
4.1
|
199
|
11,236
|
4.4
|
494
|
16,087
|
4.3
|
693
|
Stratoni
|
118
|
6.3
|
7
|
69
|
5.5
|
4
|
187
|
6.0
|
11
|
TOTAL
LEAD
|
4,969
|
4.1
|
206
|
11,305
|
4.4
|
498
|
16,274
|
4.3
|
704
|
Zinc
|
Tonnes
|
Zn
|
In-situ
Zn
|
Tonnes
|
Zn
|
In-situ
Zn
|
Tonnes
|
Zn
|
In-situ
Zn
|
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
Olympias
|
4,851
|
5.1
|
247
|
11,236
|
6.0
|
674
|
16,087
|
5.7
|
921
|
Stratoni
|
118
|
9.2
|
11
|
69
|
8.2
|
6
|
187
|
8.8
|
17
|
TOTAL
ZINC
|
4,969
|
5.2
|
258
|
11,305
|
6.0
|
680
|
16,274
|
5.8
|
938
|
Eldorado Gold
Mineral Resources as of December 2016
|
|
|
|
|
|
|
|
|
Project
|
Measured Resources
|
Indicated Resources
|
Total Measured and
Indicated
|
Inferred Resources
|
Gold
|
Tonnes
|
Au
|
In-situ
Au
|
Tonnes
|
Au
|
In-situ
Au
|
Tonnes
|
Au
|
In-situ
Au
|
Tonnes
|
Au
|
In-situ
Au
|
|
(x1000)
|
g/t
|
ounces
(x1000)
|
(x1000)
|
g/t
|
ounces
(x1000)
|
(x1000)
|
g/t
|
ounces
(x1000)
|
(x1000)
|
g/t
|
ounces
(x1000)
|
Certej
|
27,518
|
1.80
|
1,592
|
62,463
|
1.23
|
2,472
|
89,981
|
1.40
|
4,064
|
12,228
|
0.96
|
376
|
Efemcukuru
|
2,277
|
8.58
|
628
|
2,224
|
8.02
|
574
|
4,501
|
8.30
|
1,202
|
5,095
|
4.94
|
809
|
Kisladag
|
383,886
|
0.65
|
8,047
|
93,312
|
0.47
|
1,419
|
477,198
|
0.62
|
9,466
|
290,466
|
0.45
|
4,165
|
Olympias
|
4,464
|
9.97
|
1,431
|
10,644
|
8.55
|
2,926
|
15,108
|
8.97
|
4,357
|
3,955
|
8.34
|
1,060
|
Perama
|
3,064
|
4.30
|
424
|
9,375
|
3.18
|
958
|
12,439
|
3.46
|
1,382
|
8,766
|
1.96
|
554
|
Piavitsa
|
|
|
|
0
|
0.00
|
0
|
0
|
0.00
|
0
|
10,542
|
5.70
|
1,932
|
Sapes
|
|
|
|
2,423
|
6.08
|
474
|
2,423
|
6.08
|
474
|
1,011
|
10.65
|
347
|
Skouries
|
100,018
|
0.79
|
2,534
|
189,263
|
0.47
|
2,867
|
289,281
|
0.58
|
5,401
|
170,136
|
0.31
|
1,680
|
Tocantinzinho
|
17,530
|
1.51
|
851
|
31,202
|
1.26
|
1,264
|
48,732
|
1.35
|
2,115
|
2,395
|
0.90
|
69
|
TOTAL
GOLD
|
538,757
|
0.90
|
15,507
|
400,906
|
1.01
|
12,954
|
939,663
|
0.94
|
28,461
|
504,594
|
0.68
|
10,992
|
Silver
|
Tonnes
|
Ag
|
In-situ
Ag
|
Tonnes
|
Ag
|
In-situ
Ag
|
Tonnes
|
Ag
|
In-situ
Ag
|
Tonnes
|
Ag
|
In-situ
Ag
|
|
(x1000)
|
g/t
|
ounces
(x1000)
|
(x1000)
|
g/t
|
ounces
(x1000)
|
(x1000)
|
g/t
|
ounces
(x1000)
|
(x1000)
|
g/t
|
ounces
(x1000)
|
Certej
|
27,518
|
9
|
7,768
|
62,463
|
9
|
17,833
|
89,981
|
9
|
25,601
|
12,228
|
3
|
1,364
|
Olympias
|
4,464
|
142
|
20,380
|
10,644
|
147
|
50,305
|
15,108
|
146
|
70,685
|
3,955
|
118
|
15,050
|
Perama
|
3,064
|
3
|
335
|
9,375
|
9
|
2,833
|
12,439
|
8
|
3,168
|
8,766
|
7
|
1,860
|
Piavitsa
|
|
|
|
0
|
0
|
0
|
0
|
0
|
0
|
10,542
|
57
|
19,156
|
Stratoni
|
480
|
218
|
3,364
|
70
|
169
|
380
|
550
|
212
|
3,744
|
0
|
0
|
0
|
TOTAL
SILVER
|
35,526
|
28
|
31,847
|
82,552
|
27
|
71,351
|
118,078
|
27
|
103,198
|
35,491
|
33
|
37,430
|
Copper
|
Tonnes
|
Cu
|
In-situ
Cu
|
Tonnes
|
Cu
|
In-situ
Cu
|
Tonnes
|
Cu
|
In-situ
Cu
|
Tonnes
|
Cu
|
In-situ
Cu
|
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
Skouries
|
100,018
|
0.48
|
484
|
189,263
|
0.40
|
758
|
289,281
|
0.43
|
1,242
|
170,136
|
0.34
|
578
|
TOTAL
COPPER
|
100,018
|
0.48
|
484
|
189,263
|
0.40
|
758
|
289,281
|
0.43
|
1,242
|
170,136
|
0.34
|
578
|
Lead
|
Tonnes
|
Pb
|
In-situ
Pb
|
Tonnes
|
Pb
|
In-situ
Pb
|
Tonnes
|
Pb
|
In-situ
Pb
|
Tonnes
|
Pb
|
In-situ
Pb
|
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
Olympias
|
4,464
|
4.7
|
210
|
10,644
|
5.0
|
532
|
15,108
|
4.9
|
742
|
3,955
|
3.9
|
153
|
Stratoni
|
480
|
8.3
|
40
|
70
|
7.0
|
5
|
550
|
8.1
|
45
|
0
|
0.0
|
0
|
TOTAL
LEAD
|
4,944
|
5.1
|
250
|
10,714
|
5.0
|
537
|
15,658
|
5.0
|
787
|
3,955
|
3.9
|
153
|
Zinc
|
Tonnes
|
Zn
|
In-situ
Zn
|
Tonnes
|
Zn
|
In-situ
Zn
|
Tonnes
|
Zn
|
In-situ
Zn
|
Tonnes
|
Zn
|
In-situ
Zn
|
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
Olympias
|
4,464
|
5.8
|
259
|
10,644
|
6.8
|
724
|
15,108
|
6.5
|
983
|
3,955
|
4.3
|
171
|
Stratoni
|
480
|
11.1
|
53
|
70
|
10.6
|
7
|
550
|
11.0
|
60
|
0
|
0.0
|
0
|
TOTAL
ZINC
|
4,944
|
6.3
|
312
|
10,714
|
6.8
|
731
|
15,658
|
6.7
|
1,043
|
3,955
|
4.3
|
171
|
Iron
|
Tonnes
|
Fe
|
|
Tonnes
|
Fe
|
|
Tonnes
|
Fe
|
|
Tonnes
|
Fe
|
|
|
(x1000)
|
%
|
|
(x1000)
|
%
|
|
(x1000)
|
%
|
|
(x1000)
|
%
|
|
Vila
Nova
|
2,212
|
59.3
|
|
10,982
|
58.5
|
|
13,194
|
58.7
|
|
9,519
|
59.7
|
|
TOTAL
IRON
|
2,212
|
59.3
|
|
10,982
|
58.5
|
|
13,194
|
58.7
|
|
9,519
|
59.7
|
|
Notes on Mineral Resources and Reserves
- Mineral reserves and mineral resources are as of December 31, 2016.
- Mineral reserves are included in the mineral resources.
- The mineral reserves and mineral resources are disclosed on a
total project basis.
MINERAL RESERVE NOTES
1. Long Term Metal Price
Assumptions
- Gold price: $1,200/oz
- Silver price: $16.00/oz (for
Stratoni it was $7.74/oz Ag as
governed by a streaming agreement with Silver Wheaton (Caymans)
Ltd.)
- Copper price: $2.75/lb
- Lead price: $1,800/t
- Zinc price: $2,000/t
2. Skouries
The current open pit and underground designs used a Cu price of
$3.00/lb. Because the open pit
is governed by permit limits its reserves remain unchanged at the
lower reserve price of $2.75/lb. In the underground portion, the
change in metal price has no impact on mine design and extraction
philosophy, and placement of long-term underground
infrastructure. Furthermore, the lower price does not affect
the first half of the planned underground minelife due to starting
in higher grade Au and Cu sections of the orebody. The latter
part of the project's long minelife does contain stopes with
mineral reserve tonnes and metal at risk at the lower Cu
price. These are in the lowermost parts of the planned mine
and along its peripheries, and comprise 7% tonnes, 4% gold metal
and 6% copper metal of the stated mineral reserves.
3. Cut-off Grades
Kisladag: $7.65 NSR;
Efemcukuru: 3.24 g/t Au; Perama: 0.8 g/t Au;
Tocantinzinho: 0.42 g/t Au; Skouries: $12.00 NSR (open pit), $33.33 NSR (underground); Olympias: $62.00 NSR; Stratoni: 15.54% Zn Equivalent
grade (=Zn%+Pb%*1.20+Ag%*165); Certej: 0.90 g/t Au Equivalent
grade (=Au(g/t)+Ag(g/t)*0.0121).
4. Qualified Persons
- John Nilsson, P.Eng., of Nilsson
Mine Services, is responsible for the Kisladag, Skouries open pit,
Certej and Tocantinzinho reserves.
- Doug Jones (Registered Member -
SME), consultant for the Company, is responsible for the
Efemcukuru, Olympias, Stratoni and Perama Hill reserves.
- Colm Keogh, P.Eng, Principal
Mining Engineer, AMC Mining Consultants (Canada) Ltd., is responsible for the Skouries
underground reserves.
MINERAL RESOURCE NOTES
1. Cut-off Grades
Kisladag: 0.30 g/t Au for M+I, 0.35 g/t for
Inferred; Efemcukuru: 2.5 g/t Au; Perama: 0.5 g/t
Au; Tocantinzinho: 0.3 g/t Au; Certej: 0.7 g/t Au;
Skouries: 0.20 g/t Au Equivalent grade (open pit), 0.60 g/t
Au Equivalent grade (underground) (=Au g/t + 1.6*Cu%);
Piavitsa: 3.5 g/t Au; Sapes: 2.5 g/t Au (underground), 1.0 g/t Au
(open pit). Resource cut-offs for Olympias and
Stratoni are geological based due to the sharpness of the
mineralized contacts and the high-grade nature of the
mineralization.
2. Qualified Persons
- Stephen Juras, Ph.D., P.Geo.,
Director, Technical Services for the Company, is responsible for
all of the Company's mineral resources except for those associated
with Sapes.
- Peter Lewis, Ph.D., P.Geo., Vice
President, Exploration for the Company, is responsible for the
Sapes mineral resources.
Q4 and Full Year
2016 Gold Production Highlights (in US$)
|
|
|
|
|
|
|
|
|
|
Fourth Quarter 2016
|
Fourth Quarter 2015
|
2016
|
2015
|
2017
Outlook5
|
Gold
Production
|
|
|
|
|
|
|
|
Ounces
Sold
|
|
105,022
|
171,310
|
483,461
|
705,310
|
n/a
|
|
Ounces
Produced1
|
|
103,144
|
169,732
|
486,025
|
723,532
|
365,000 to
400,000
|
|
Cash Operating Cost
($/oz)2,4
|
|
531
|
567
|
579
|
552
|
485 to 535
|
|
Total Cash Cost
($/oz)3,4
|
|
554
|
620
|
621
|
606
|
n/a
|
|
Realized Price ($/oz
- sold)
|
|
1,211
|
1,105
|
1,253
|
1,168
|
n/a
|
Kişladağ Mine,
Turkey
|
|
|
|
|
|
|
|
Ounces
Sold
|
|
59,416
|
64,395
|
211,284
|
280,892
|
n/a
|
|
Ounces
Produced
|
|
59,591
|
64,574
|
211,161
|
281,280
|
230,000 to
245,000
|
|
Tonnes to
Pad
|
|
3,916,917
|
4,755,500
|
16,565,254
|
19,146,685
|
n/a
|
|
Grade (grams /
tonne)
|
|
0.74
|
0.68
|
0.80
|
0.70
|
n/a
|
|
Cash Operating Cost
($/oz)4
|
|
456
|
510
|
474
|
543
|
500 to 550
|
|
Total Cash Cost
($/oz)3,4
|
|
465
|
526
|
488
|
558
|
n/a
|
Efemçukuru Mine,
Turkey
|
|
|
|
|
|
|
|
Ounces
Sold
|
|
25,266
|
25,897
|
99,744
|
99,147
|
n/a
|
|
Ounces
Produced
|
|
23,213
|
24,434
|
98,364
|
100,482
|
95,000 to
105,000
|
|
Tonnes
Milled
|
|
123,815
|
118,870
|
476,528
|
454,863
|
n/a
|
|
Grade (grams /
tonne)
|
|
7.39
|
7.21
|
7.4
|
7.82
|
n/a
|
|
Cash Operating Cost
($/oz)4
|
|
512
|
559
|
514
|
521
|
525 to 575
|
|
Total Cash Cost
($/oz)3,4
|
|
522
|
588
|
530
|
540
|
n/a
|
Tanjianshan Mine,
China
|
|
|
|
|
|
|
|
Ounces
Sold
|
|
10,912
|
16,808
|
49,266
|
97,563
|
n/a
|
|
Ounces
Produced
|
|
10,912
|
16,808
|
49,266
|
97,563
|
n/a
|
|
Tonnes
Milled
|
|
121,237
|
256,371
|
869,964
|
1,060,176
|
n/a
|
|
Grade (grams /
tonne)
|
|
1.70
|
2.41
|
1.90
|
3.14
|
n/a
|
|
Cash Operating Cost
($/oz)4
|
|
785
|
656
|
819
|
473
|
n/a
|
|
Total Cash Cost
($/oz)3,4
|
|
892
|
855
|
970
|
646
|
n/a
|
Jinfeng Mine,
China
|
|
|
|
|
|
|
|
Ounces
Sold
|
|
-
|
41,979
|
66,902
|
149,552
|
n/a
|
|
Ounces
Produced
|
|
-
|
36,707
|
68,195
|
149,655
|
n/a
|
|
Tonnes
Milled
|
|
-
|
313,119
|
766,697
|
1,303,863
|
n/a
|
|
Grade (grams /
tonne)
|
|
-
|
4.13
|
3.32
|
4.13
|
n/a
|
|
Cash Operating Cost
($/oz) 4
|
|
-
|
641
|
705
|
587
|
n/a
|
|
Total Cash Cost
($/oz) 3,4
|
|
-
|
716
|
791
|
669
|
n/a
|
White Mountain
Mine, China
|
|
|
|
|
|
|
|
Ounces
Sold
|
|
9,428
|
22,231
|
56,265
|
78,156
|
n/a
|
|
Ounces
Produced
|
|
9,428
|
22,231
|
56,265
|
78,156
|
n/a
|
|
Tonnes
Milled
|
|
95,278
|
217,950
|
717,145
|
849,335
|
n/a
|
|
Grade (grams /
tonne)
|
|
2.99
|
3.83
|
2.78
|
3.30
|
n/a
|
|
Cash Operating Cost
($/oz) 4
|
|
759
|
536
|
731
|
653
|
n/a
|
|
Total Cash Cost
($/oz) 3,4
|
|
813
|
573
|
773
|
691
|
n/a
|
Olympias,
Greece
|
|
|
|
|
|
|
|
Ounces
Sold
|
|
-
|
-
|
-
|
-
|
n/a
|
|
Ounces
Produced1
|
|
-
|
4,978
|
2,774
|
16,396
|
40,000 to
50,000
|
|
Tonnes
Milled
|
|
-
|
166,427
|
87,350
|
589,675
|
n/a
|
|
Grade (grams /
tonne)
|
|
-
|
2.25
|
2.47
|
1.99
|
n/a
|
|
Cash Operating Cost
($/oz)4
|
|
-
|
-
|
-
|
-
|
n/a
|
|
Total Cash Cost
($/oz)3,4
|
|
-
|
-
|
-
|
-
|
n/a
|
1
|
Ounces produced
include production from tailings retreatment at
Olympias.
|
2
|
Cost figures
calculated in accordance with the Gold Institute
Standard.
|
3
|
Cash operating costs,
plus royalties and the cost of off-site administration.
|
4
|
Cash operating costs
and total cash costs are non-IFRS measures. Please see our
MD&A for an explanation and discussion of these.
|
5
|
Outlook assumes the
following metal prices: Gold $1,150 per ounce; Silver $20 per
ounce.
|
Eldorado Gold Corporation
Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars)
|
|
Note
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
|
|
$
|
|
$
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
6
|
|
883,171
|
|
288,189
|
|
Term
deposits
|
|
|
|
5,292
|
|
4,382
|
|
Restricted
cash
|
|
|
|
240
|
|
248
|
|
Marketable
securities
|
|
|
|
28,327
|
|
18,331
|
|
Accounts receivable
and other
|
|
7
|
|
54,315
|
|
85,468
|
|
Inventories
|
|
8
|
|
120,830
|
|
175,626
|
|
|
|
|
1,092,175
|
|
572,244
|
Other
assets
|
|
10
|
|
48,297
|
|
83,147
|
Defined benefit
pension plan
|
|
16
|
|
11,620
|
|
11,451
|
Property, plant and
equipment
|
|
11
|
|
3,645,827
|
|
4,747,759
|
Goodwill
|
|
12
|
|
-
|
|
50,276
|
|
|
|
|
4,797,919
|
|
5,464,877
|
LIABILITIES &
EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
13
|
|
90,705
|
|
236,819
|
|
|
|
|
90,705
|
|
236,819
|
Debt
|
|
14
|
|
591,589
|
|
589,395
|
Defined benefit
pension plan
|
|
16
|
|
10,882
|
|
6,720
|
Asset retirement
obligations
|
|
15
|
|
89,778
|
|
102,636
|
Deferred income tax
liabilities
|
|
17
|
|
443,501
|
|
607,871
|
|
|
|
|
1,226,455
|
|
1,543,441
|
Equity
|
|
|
|
|
|
|
Share
capital
|
|
18
|
|
2,819,101
|
|
5,319,101
|
Treasury
stock
|
|
|
|
(7,794)
|
|
(10,211)
|
Contributed
surplus
|
|
|
|
2,606,567
|
|
47,236
|
Accumulated other
comprehensive loss
|
|
|
|
(7,172)
|
|
(20,572)
|
Deficit
|
|
|
|
(1,928,024)
|
|
(1,583,873)
|
Total equity
attributable to shareholders of the Company
|
|
|
|
3,482,678
|
|
3,751,681
|
Attributable to
non-controlling interests
|
|
|
|
88,786
|
|
169,755
|
|
|
|
|
3,571,464
|
|
3,921,436
|
|
|
|
|
4,797,919
|
|
5,464,877
|
Approved on behalf of the Board of Directors
(Signed)
John
Webster
|
Director
|
(Signed)
Paul N.
Wright
|
Director
|
Please see the Consolidated Financial Statements dated
December 31, 2016 for notes to the
accounts.
Eldorado Gold Corporation
Consolidated Income Statements
(Expressed in thousands of U.S. dollars except per share
amounts)
For the year ended
December 31
|
|
Note
|
|
2016
|
|
2015
|
|
|
|
|
$
|
|
$
|
|
|
|
|
|
|
(restated)*
|
|
|
|
|
|
|
*See note
5
|
Revenue
|
|
|
|
|
|
|
|
Metal
sales
|
|
|
|
432,727
|
|
479,079
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
|
|
|
Production
costs
|
|
26
|
|
194,669
|
|
252,122
|
|
Inventory
write-down
|
|
|
|
-
|
|
12,024
|
|
Depreciation and
amortization
|
|
|
|
74,887
|
|
89,320
|
|
|
|
|
269,556
|
|
353,466
|
Gross
profit
|
|
|
|
163,171
|
|
125,613
|
|
|
|
|
|
|
|
Exploration
expenses
|
|
|
|
18,773
|
|
16,328
|
Mine standby
costs
|
|
|
|
16,140
|
|
10,244
|
General and
administrative expenses
|
|
|
|
37,851
|
|
44,075
|
Defined benefit
pension plan expense
|
|
16
|
|
5,602
|
|
2,920
|
Share based
payments
|
|
19
|
|
10,559
|
|
15,877
|
Impairment loss on
property, plant and equipment and goodwill
|
|
11,
12
|
|
-
|
|
1,842,965
|
Other write-down of
assets
|
|
|
|
4,529
|
|
10,064
|
Foreign exchange
loss
|
|
|
|
2,708
|
|
15,044
|
Operating profit
(loss)
|
|
|
|
67,009
|
|
(1,831,904)
|
|
|
|
|
|
|
|
Loss on disposal of
assets
|
|
|
|
2,121
|
|
3
|
Loss on marketable
securities and other investments
|
|
|
|
4,881
|
|
-
|
Other
income
|
|
|
|
(243)
|
|
(7,278)
|
Asset retirement
obligation accretion
|
|
15
|
|
1,795
|
|
1,931
|
Interest and
financing costs
|
|
27
|
|
9,757
|
|
17,574
|
|
|
|
|
|
|
|
Profit (loss) from
continuing operations before income tax
|
|
|
|
48,698
|
|
(1,844,134)
|
Income tax expense
(recovery)
|
|
17
|
|
56,205
|
|
(221,390)
|
Loss from
continuing operations
|
|
|
|
(7,507)
|
|
(1,622,744)
|
Loss from
discontinued operations
|
|
5
|
|
(339,369)
|
|
(22,398)
|
Loss for the
year
|
|
|
|
(346,876)
|
|
(1,645,142)
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
Shareholders of the
Company
|
|
|
|
(344,151)
|
|
(1,540,895)
|
Non-controlling
interests
|
|
|
|
(2,725)
|
|
(104,247)
|
Loss for the
year
|
|
|
|
(346,876)
|
|
(1,645,142)
|
|
|
|
|
|
|
|
Loss attributable
to shareholders of the Company
|
|
|
|
|
|
|
Continuing
operations
|
|
|
|
(2,683)
|
|
(1,512,435)
|
Discontinued
operations
|
|
|
|
(341,468)
|
|
(28,460)
|
|
|
|
|
(344,151)
|
|
(1,540,895)
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (thousands)
|
|
28
|
|
|
|
|
Basic
|
|
|
|
716,587
|
|
716,586
|
Diluted
|
|
|
|
716,593
|
|
716,590
|
|
|
|
|
|
|
|
Loss per share
attributable to shareholders
|
|
|
|
|
|
|
of the
Company:
|
|
|
|
|
|
|
Basic loss per
share
|
|
|
|
(0.48)
|
|
(2.15)
|
Diluted loss per
share
|
|
|
|
(0.48)
|
|
(2.15)
|
|
|
|
|
|
|
|
Loss per share
attributable to shareholders
|
|
|
|
|
|
|
of the Company -
continuing operations:
|
|
|
|
|
|
|
Basic loss per
share
|
|
|
|
(0.00)
|
|
(2.11)
|
Diluted loss per
share
|
|
|
|
(0.00)
|
|
(2.11)
|
Please see the Consolidated Financial Statements
dated December 31, 2016 for notes to
the accounts.
Eldorado Gold Corporation
Consolidated Statements of Comprehensive Income
(Expressed
in thousands of U.S. dollars)
For the year ended
December 31
|
|
Note
|
|
2016
|
|
2015
|
|
|
|
|
$
|
|
$
|
|
|
|
|
|
|
|
Loss for the
year
|
|
|
|
(346,876)
|
|
(1,645,142)
|
Other
comprehensive income (loss):
|
|
|
|
|
|
|
Change in fair value
of available-for-sale financial assets, net of income
|
|
|
|
9,687
|
|
(2,232)
|
tax of $1,428 and
$nil
|
|
|
|
|
|
|
Transfer of realized
loss on disposal of availabe-for-sale financial assets
|
|
|
|
4,901
|
|
-
|
Actuarial losses on
defined benefit pension plans
|
|
16
|
|
(1,188)
|
|
(213)
|
Total other
comprehensive income (loss) for the year
|
|
|
|
13,400
|
|
(2,445)
|
Total
comprehensive loss for the year
|
|
|
|
(333,476)
|
|
(1,647,587)
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
Shareholders of the
Company
|
|
|
|
(330,751)
|
|
(1,543,340)
|
Non-controlling
interests
|
|
|
|
(2,725)
|
|
(104,247)
|
|
|
|
|
(333,476)
|
|
(1,647,587)
|
Please see the Consolidated Financial Statements dated
December 31, 2016 for notes to the
accounts.
Eldorado Gold Corporation
Consolidated Statements of Cash Flows
(Expressed in thousands of U.S. dollars)
For the year ended
December 31
|
|
Note
|
|
2016
|
|
2015
|
|
|
|
|
$
|
|
$
|
|
|
|
|
|
|
(restated)*
|
|
|
|
|
|
|
*See note
5
|
Cash flows generated
from (used in):
|
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
|
|
Loss for the year
from continuing operations
|
|
|
|
(7,507)
|
|
(1,622,744)
|
Items not
affecting cash:
|
|
|
|
|
|
|
Asset retirement
obligation accretion
|
|
|
|
1,795
|
|
1,931
|
Depreciation and
amortization
|
|
|
|
74,887
|
|
89,320
|
Unrealized foreign
exchange loss
|
|
|
|
1,191
|
|
2,236
|
Deferred income tax
expense (recovery)
|
|
|
|
9,039
|
|
(265,448)
|
Loss on disposal of
assets
|
|
|
|
2,121
|
|
3
|
Other write-down of
assets
|
|
|
|
4,529
|
|
10,064
|
Impairment loss on
property, plant and equipment
|
|
|
|
-
|
|
1,842,965
|
Loss on marketable
securities and other investments
|
|
|
|
4,881
|
|
-
|
Share based
payments
|
|
|
|
10,559
|
|
15,877
|
Defined benefit
pension plan expense
|
|
|
|
5,602
|
|
2,920
|
|
|
|
|
107,097
|
|
77,124
|
Property reclamation
payments
|
|
|
|
(2,662)
|
|
(551)
|
Changes in non-cash
working capital
|
|
20
|
|
32,295
|
|
96,807
|
Net cash provided
by operating activities of continuing operations
|
|
|
|
136,730
|
|
173,380
|
Net cash provided
by operating activities of discontinued operations
|
|
|
|
(23,067)
|
|
49,978
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
Net cash paid on
acquisition of subsidiary
|
|
|
|
(603)
|
|
-
|
Purchase of property,
plant and equipment
|
|
|
|
(297,667)
|
|
(347,060)
|
Proceeds from the
sale of property, plant and equipment
|
|
|
|
4,916
|
|
2,312
|
Proceeds from sale of
mining interest net of transaction costs
|
|
5
|
|
792,511
|
|
-
|
Proceeds on
production of tailings retreatment
|
|
|
|
3,708
|
|
17,918
|
Purchase of
marketable securities
|
|
|
|
(2,526)
|
|
(16,312)
|
Proceeds from the
sale of marketable securities
|
|
|
|
3,665
|
|
-
|
Investment in term
deposits
|
|
|
|
(910)
|
|
(1,582)
|
Decrease in
restricted cash
|
|
|
|
9
|
|
601
|
Net cash provided
(used) by investing activities of continuing
operations
|
|
|
|
503,103
|
|
(344,123)
|
Net cash used by
investing activities of discontinued operations
|
|
|
|
(21,784)
|
|
(48,744)
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
Issuance of common
shares for cash
|
|
|
|
-
|
|
121
|
Dividend paid to
shareholders
|
|
|
|
-
|
|
(11,257)
|
Purchase of treasury
stock
|
|
|
|
-
|
|
(2,394)
|
Long-term and bank
debt proceeds
|
|
|
|
70,000
|
|
-
|
Long-term and bank
debt repayments
|
|
|
|
(70,000)
|
|
-
|
Net cash used by
financing activities of continuing operations
|
|
|
|
-
|
|
(13,530)
|
Net cash used by
financing activities of discontinued operations
|
|
|
|
-
|
|
(27,286)
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
|
|
594,982
|
|
(210,325)
|
Cash and cash
equivalents - beginning of year
|
|
|
|
288,189
|
|
498,514
|
Cash and cash
equivalents - end of year
|
|
|
|
883,171
|
|
288,189
|
Please see the Consolidated Financial Statements dated
December 31, 2016 for notes to the
accounts.
Eldorado Gold Corporation
Consolidated Statements of Changes in Equity
(Expressed in thousands of U.S. dollars)
For the year ended
December 31,
|
|
Note
|
|
2016
|
|
2015
|
|
|
|
|
$
|
|
$
|
Share
capital
|
|
|
|
|
|
|
Balance beginning of
year
|
|
|
|
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
|
|
18
|
|
(2,500,000)
|
|
-
|
Balance end of
year
|
|
|
|
2,819,101
|
|
5,319,101
|
|
|
|
|
|
|
|
Treasury
stock
|
|
|
|
|
|
|
Balance beginning of
year
|
|
|
|
(10,211)
|
|
(12,949)
|
|
Purchase of treasury
stock
|
|
|
|
-
|
|
(2,394)
|
|
Shares redeemed upon
exercise of restricted share units
|
|
|
|
2,417
|
|
5,132
|
Balance end of
year
|
|
|
|
(7,794)
|
|
(10,211)
|
|
|
|
|
|
|
|
Contributed
surplus
|
|
|
|
|
|
|
Balance beginning of
year
|
|
|
|
47,236
|
|
38,430
|
Share based
payments
|
|
|
|
10,264
|
|
16,258
|
|
Shares redeemed upon
exercise of restricted share units
|
|
|
|
(2,417)
|
|
(5,132)
|
|
Recognition of other
non-current liability and related costs
|
|
|
|
(1,416)
|
|
(2,290)
|
|
Reversal of other
current liability and related costs
|
|
|
|
52,900
|
|
-
|
|
Transfer to share
capital on exercise of options and deferred
|
|
|
|
|
|
|
|
phantom
units
|
|
|
|
-
|
|
(30)
|
|
Capital
reduction
|
|
18
|
|
2,500,000
|
|
|
Balance end of
year
|
|
|
|
2,606,567
|
|
47,236
|
|
|
|
|
|
|
|
Accumulated other
comprehensive loss
|
|
|
|
|
|
|
Balance beginning of
year
|
|
|
|
(20,572)
|
|
(18,127)
|
|
Other comprehensive
loss for the year
|
|
|
|
13,400
|
|
(2,445)
|
Balance end of
year
|
|
|
|
(7,172)
|
|
(20,572)
|
|
|
|
|
|
|
|
Deficit
|
|
|
|
|
|
|
Balance beginning of
year
|
|
|
|
(1,583,873)
|
|
(31,721)
|
|
Dividends
paid
|
|
|
|
-
|
|
(11,257)
|
|
Loss attributable to
shareholders of the Company
|
|
|
|
(344,151)
|
|
(1,540,895)
|
Balance end of
year
|
|
|
|
(1,928,024)
|
|
(1,583,873)
|
Total equity
attributable to shareholders of the Company
|
|
|
|
3,482,678
|
|
3,751,681
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
|
|
|
|
Balance beginning of
year
|
|
|
|
169,755
|
|
283,331
|
|
Loss attributable to
non-controlling interests
|
|
|
|
(2,725)
|
|
(104,247)
|
|
Dividends declared to
non-controlling interests
|
|
|
|
-
|
|
(10,929)
|
|
Increase during the
period
|
|
|
|
3,257
|
|
1,600
|
|
Decrease due to sale
of China Business and others
|
|
5
|
|
(81,501)
|
|
-
|
Balance end of
year
|
|
|
|
88,786
|
|
169,755
|
|
|
|
|
|
|
|
Total
equity
|
|
|
|
3,571,464
|
|
3,921,436
|
Please see the Consolidated Financial Statements dated
December 31, 2016 for notes to the
accounts.
SOURCE Eldorado Gold Corporation