Eldorado Gold Corporation, (“Eldorado” or “the Company”) today
reports the Company’s financial and operational results for the
fourth quarter and year ended December 31, 2021. For further
information please see the Company’s Consolidated Financial
Statements and Management’s Discussion and Analysis filed on SEDAR
at www.sedar.com under the Company’s profile.
Q4 2021 and Full-Year
Highlights
Operations
- Strong gold
production at the upper end of the increased guidance
range: 122,582 ounces in Q4 2021, and
475,850 ounces in 2021, driven by Kisladag and Lamaque.
- Cash
operating costs(1) within 2021 guidance
range: $571 per ounce sold in Q4 2021, and $626 per ounce
sold in 2021. A significant decrease in cash operating costs at
Olympias in Q4 2021 was related to higher average gold grades and
higher by-product credits.
- All-in
sustaining costs(1) within 2021 guidance
range: $1,077 per ounce sold in Q4 2021, and $1,069 per
ounce sold in 2021.
- Total
capital expenditures: $82.1 million in Q4 2021, and $282.1
million in 2021. Growth capital(1) of $130.4 million in 2021 was
primarily focused at Kisladag and Lamaque.
- 2022
Outlook: We expect production in the first half of the
year to be lower than in the second half due to the ramp-up of the
high-pressure grinding rolls ("HPGR") circuit at Kisladag, weather
challenges in Turkey and Greece, and the impact of the COVID-19
Omicron variant across our operations. We remain confident that we
will deliver within our 2022 production guidance range.
Financial
- Solid
production drove strong cash flow from operating activities, before
changes in non-cash working capital(1):
$116.7 million in Q4 2021, and $374.8 million in 2021.
- Free cash
flow(1): $23.1 million in Q4 2021; and
$62.4 million in 2021.
- Cash and
cash equivalents: $481.3 million, as at December 31,
2021.
- Adjusted
EBITDA(1): $126.1 million in Q4 2021, and
$444.2 million in 2021.
- Net
earnings (loss): $43.1 million loss or $0.24 loss per
share in Q4 2021, and $10.8 million or $0.06 per share in 2021. Net
loss in Q4 2021 was driven by higher income tax expense related to
the weakening of the Turkish Lira in the quarter, unrealized
foreign exchange gains, and impairment loss and asset write- down
related to the closure of Stratoni.
- Adjusted
net earnings(1): $25.1 million or $0.14
per share in Q4 2021, and $119.3 million or $0.66 per share in
2021. Adjusted net earnings in 2021 removes non-cash losses on
foreign exchange due to the translation of deferred tax balances,
finance costs related to debt refinancing, and impairment losses
and asset write-downs related to the closure of Stratoni, including
deferred tax expense resulting from the closure.
|
(1) |
These measures are non-IFRS financial measures and ratios. Certain
additional disclosures for non-IFRS measures have been incorporated
by reference and additional detail can be found at the end of this
press release and in the section 'Non-IFRS and Other Financial
Measures and Ratios' in Eldorado's December 31, 2021
MD&A. |
Growth
- Skouries
Feasibility Study: In December 2021, Eldorado completed
the Skouries Feasibility reflecting robust economics of 19%
after-tax Internal Rate of Return ("IRR") and $1.3 billion
after-tax Net Present Value ("NPV") (5%), based on long-term prices
of $1,500 per ounce gold and $3.85 per pound copper.
-
Successfully delivered on two key growth
projects: In Q4 2021, the Triangle-Sigma decline at
Lamaque was completed on budget and on schedule, and the
construction and wet-commissioning of the HPGR circuit at Kisladag
was completed on budget and, to a large extent, in line with
schedule.
Corporate
- Amended
Investment Agreement in Greece: In February 2021, the
company entered into an amended Investment Agreement with the
Hellenic Republic to the govern the further development,
construction and operation of the Kassandra Mines and provide
necessary investor protections to advance the next phase of growth
in Greece.
- Corporate
Debt Refinancing: In Q3 2021, the Company completed a new
$500 million Senior Notes offering and amended its Senior Secured
Credit Facility. Together they provide the Company greater
financial flexibility to pursue a broader range of financing
alternatives for the development of Skouries and the Kassandra
Mines in Greece.
- Acquisition
of QMX Gold: In April 2021, the Company acquired QMX Gold
Corporation, increasing our footprint in the Abitibi Greenstone
Belt by 550% and adding a potential pipeline of organic growth
opportunities proximal to Lamaque.
- Sale of
Tocantinzinho ("TZ"): In October 2021, the company sold
its TZ project, in Brazil, to G Mining Ventures Corp. Under the
term of the agreement, Eldorado received upfront cash consideration
of $20 million and 19.9% of GMIN shares, plus deferred cash
consideration of $60 million payable on the first anniversary of
commercial production from TZ.
“2021 was a foundational year for Eldorado,”
said George Burns, Eldorado’s Present and Chief Executive Officer.
“I am tremendously proud of the hard work and dedication of our
global teams in delivering exceptional value for the business and
our stakeholders while maintaining a high degree of safety. Across
our four operating mines, we produced over 475,000 ounces of gold,
which was at the top-end of our increased guidance range, and we
achieved cost guidance across the board,” added Burns.
“Furthermore, during the year, Eldorado
delivered on several key milestones, including the completion of
the Skouries Feasibility Study on our development project in
Greece; the completion of two key growth projects at Kisladag, in
Turkey, and Lamaque, in Canada; the sale of the Tocantinzinho
project in Brazil, while also retaining meaningful exposure to
future value creation through our equity stake in G Mining Ventures
Corp; the acquisition of QMX Gold, which expands our footprint in
the prolific Abitibi region; and executing on robust exploration
programs that support our organic growth.”
“As we look to 2022, we see three key value
drivers for Eldorado. Starting with Quebec, earlier today we
published the results of the Lamaque Technical Study, which clearly
demonstrates the future value of Ormaque and the deeper Triangle
zones and improves the NPV from the initial 2018 PFS tremendously.
The strategic acquisition of Lamaque in 2017 has allowed Eldorado
to build a dominant presence in the Abitibi region, and we are
looking forward to operating in the region for years to come.
Second, completion of the Skouries Feasibility Study is a critical
milestone and will allow the company to advance financing
alternatives for the project. Lastly, in Turkey, work continues at
Kisladag to expand and optimize the mine. The north leach pad
expansion is expected to be completed mid-year, and we expect to
realize benefits of increased recovery rates as a result of the
recently commissioned HPGR.”
Consolidated Financial and Operational
Highlights
Summarized Annual Financial
Results
|
Continuing operations (9) |
|
2021 |
|
2020 |
|
2019 |
|
Revenue (1) |
$940.9 |
$1,026.7 |
$617.8 |
|
Gold revenue (1,2) |
$838.6 |
$938.3 |
$530.9 |
|
Gold produced (oz) (3) |
|
475,850 |
|
528,874 |
|
395,331 |
|
Gold sold (oz) (1) |
|
472,307 |
|
526,406 |
|
374,902 |
|
Average realized gold price ($/oz sold) (5) |
$1,775 |
$1,783 |
$1,416 |
|
Production costs |
|
449.7 |
|
445.2 |
|
334.9 |
|
Cash operating costs ($/oz sold) (5) |
|
626 |
|
560 |
|
608 |
|
Total cash costs ($/oz sold) (5) |
|
715 |
|
649 |
|
645 |
|
All-in sustaining costs ($/oz sold) (5) |
|
1,069 |
|
921 |
|
1,034 |
|
Net earnings for the period (4,5,7) |
|
10.8 |
|
131.1 |
|
73.1 |
|
Net earnings per share – basic ($/share) (4,5,7) |
|
0.06 |
|
0.77 |
|
0.46 |
|
Adjusted net earnings (4,5,6,7,8) |
|
119.3 |
|
194.3 |
|
10.2 |
|
Adjusted net earnings per share ($/share) (4,5,6,7,8) |
|
0.66 |
|
1.14 |
|
0.06 |
|
Cash flow from operating activities before changes in working
capital (5,8) |
|
374.8 |
|
438.5 |
|
186.5 |
|
Free cash flow (5,8) |
|
62.4 |
|
268.7 |
|
3.0 |
|
Cash, cash equivalents and term deposits |
|
481.3 |
|
511.0 |
|
181.0 |
|
(1) |
Excludes sales of inventory mined at Lamaque during the
pre-commercial production period (Q2 2019). |
|
(2) |
See Note 30 of our Consolidated Financial Statements for further
details. |
|
(3) |
Includes pre-commercial production at Lamaque (Q1 2019) |
|
(4) |
Attributable to shareholders of the Company. |
|
(5) |
These are non-IFRS financial measures and ratios. Further details
on these non-IFRS financial measures and ratios are provided in the
MD&A accompanying Eldorado’s financial statements filed from
time to time on SEDAR at www.sedar.com. |
|
(6) |
2019 amounts have been adjusted to conform with 2021 and 2020
presentation by excluding adjustments relating to normal course
gains on disposal of assets ($7.4 million) and inventory
write-downs ($2.5 million). Adjusted net earnings as originally
presented in 2019 were $5.6 million ($0.04 per share). |
|
(7) |
2020 and 2019 amounts have been recast to correct an immaterial
error related to an understatement of the net book value of certain
of our property, plant and equipment as a result of errors in the
amounts recorded for depreciation. See Note 2(a) of our
Consolidated Financial Statements |
|
(8) |
2020 and 2019 amounts have been restated for a voluntary change in
accounting policy to classify cash paid for interest on the
statement of cash flows as a financing, rather than an operating
activity. See Note 5(d) of our Consolidated Financial
Statements. |
|
(9) |
Amounts presented are from continuing operations only and exclude
the Brazil Segment. See Note 7 of our Consolidated Financial
Statements. |
Summarized Quarterly Financial
Results
|
2021 Continuing
Operations(1) |
Q1 |
Q2 |
|
Q3 |
Q4 |
|
|
2021 |
|
Revenue |
$224.6 |
$233.2 |
|
$238.4 |
$244.6 |
|
$940.9 |
|
Gold revenue (2) |
$195.7 |
$209.5 |
|
$221.5 |
$212.0 |
|
$838.6 |
|
Gold produced (oz) |
|
111,742 |
|
116,067 |
|
|
125,459 |
|
122,582 |
|
|
475,850 |
|
Gold sold (oz) |
|
113,594 |
|
114,140 |
|
|
125,189 |
|
119,384 |
|
|
472,307 |
|
Average realized gold price ($/oz sold) (3) |
$1,723 |
$1,835 |
|
$1,769 |
$1,776 |
|
$1,775 |
|
Production costs |
|
108.6 |
|
112.8 |
|
|
110.2 |
|
118.2 |
|
|
449.7 |
|
Cash operating cost ($/oz sold) (3,4) |
|
641 |
|
645 |
|
|
646 |
|
571 |
|
|
626 |
|
Total cash cost ($/oz sold) (3,4) |
|
687 |
|
746 |
|
|
743 |
|
681 |
|
|
715 |
|
All-in sustaining cost ($/oz sold) (3,4) |
|
986 |
|
1,074 |
|
|
1,133 |
|
1,077 |
|
|
1,069 |
|
Net earnings (loss) (5,6) |
|
14.3 |
|
31.0 |
|
|
8.5 |
|
(43.1 |
) |
|
10.8 |
|
Net earnings (loss) per share – basic ($/share) (5,6) |
|
0.08 |
|
0.17 |
|
|
0.05 |
|
(0.24 |
) |
|
0.06 |
|
Adjusted net earnings (3,5,6) |
|
25.2 |
|
29.1 |
|
|
39.9 |
|
25.1 |
|
|
119.3 |
|
Adjusted net earnings per share ($/share) (3,5,6) |
|
0.14 |
|
0.16 |
|
|
0.22 |
|
0.14 |
|
|
0.66 |
|
Cash flow from operating activities before changes in working
capital (3,7) |
|
81.2 |
|
75.9 |
|
|
101.0 |
|
116.7 |
|
|
374.8 |
|
Free cash flow (3,7) |
|
33.4 |
|
(23.7 |
) |
|
29.7 |
|
23.1 |
|
|
62.4 |
|
Cash, cash equivalents and term deposits |
|
533.8 |
|
410.7 |
|
|
439.3 |
|
481.3 |
|
|
481.3 |
|
|
|
|
|
|
|
|
2020 Continuing
Operations(1) |
Q1 |
Q2 |
|
Q3 |
Q4 |
|
|
2020 |
|
Revenue |
$204.7 |
$255.9 |
|
$287.6 |
$278.5 |
|
$1,026.7 |
|
Gold revenue (2) |
$185.4 |
$235.0 |
|
$264.3 |
$253.7 |
|
$938.3 |
|
Gold produced (oz) |
|
115,950 |
|
137,782 |
|
|
136,922 |
|
138,220 |
|
|
528,874 |
|
Gold sold (oz) |
|
116,219 |
|
134,960 |
|
|
137,704 |
|
137,523 |
|
|
526,406 |
|
Average realized gold price ($/oz sold) (3) |
$1,580 |
$1,726 |
|
$1,919 |
$1,845 |
|
$1,783 |
|
Production costs |
|
101.4 |
|
109.5 |
|
|
117.4 |
|
117.0 |
|
|
445.2 |
|
Cash operating cost ($/oz sold) (3,4) |
|
627 |
|
550 |
|
|
537 |
|
536 |
|
|
560 |
|
Total cash cost ($/oz sold) (3,4) |
|
678 |
|
616 |
|
|
664 |
|
640 |
|
|
649 |
|
All-in sustaining cost ($/oz sold) (3,4) |
|
952 |
|
859 |
|
|
918 |
|
959 |
|
|
921 |
|
Net earnings (5,6) |
|
4.5 |
|
50.6 |
|
|
46.0 |
|
30.0 |
|
|
131.1 |
|
Net earnings per share – basic ($/share) (5,6) |
|
0.03 |
|
0.30 |
|
|
0.26 |
|
0.17 |
|
|
0.77 |
|
Adjusted net earnings (3,5,6) |
|
16.4 |
|
47.9 |
|
|
63.6 |
|
66.4 |
|
|
194.3 |
|
Adjusted net earnings per share ($/share) (3,5,6) |
|
0.10 |
|
0.28 |
|
|
0.37 |
|
0.38 |
|
|
1.14 |
|
Cash flow from operating activities before changes in working
capital (3,7) |
|
74.0 |
|
117.3 |
|
|
135.1 |
|
112.1 |
|
|
438.5 |
|
Free cash flow (3,7) |
|
9.6 |
|
81.1 |
|
|
114.7 |
|
63.4 |
|
|
268.7 |
|
Cash, cash equivalents and term deposits |
|
363.6 |
|
440.3 |
|
|
504.4 |
|
511.0 |
|
|
511.0 |
|
(1) |
Amounts presented are from continuing operations only and exclude
the Brazil Segment. See Note 7 of our Consolidated Financial
Statements. |
|
(2) |
See Note 30 of our Consolidated Financial Statements for further
details. |
|
(3) |
These are non-IFRS financial measures and ratios. Further details
on these non-IFRS financial measures and ratios are provided in the
MD&A accompanying Eldorado’s financial statements filed from
time to time on SEDAR at www.sedar.com. |
|
(4) |
By-product revenues are off-set against cash operating costs. |
|
(5) |
Attributable to shareholders of the Company. |
|
(6) |
2020, Q1-Q2 2021 amounts have been recast to correct an immaterial
error related to an understatement of the net book value of certain
of our property, plant and equipment as a result of errors in the
amounts recorded for depreciation. See Note 2(a) of our
Consolidated Financial Statements. |
|
(7) |
2020, Q1-Q2 2021 amounts have been restated for a voluntary change
in accounting policy to classify cash paid for interest on the
statement of cash flows as a financing, rather than an operating
activity. See Note 5(d) of our Consolidated Financial
Statements. |
Gold sales in 2021 totaled 472,307 ounces, a
decrease of 10% from 526,406 ounces in 2020. The lower sales volume
in 2021 compared with the prior year primarily reflected a decrease
of 51,033 ounces sold at Kisladag due to planned lower average
grade. There was also a decrease of 5,582 ounces sold at Efemcukuru
due to a change in the structure of concentrate sales contracts, a
decrease of 6,608 ounces sold at Olympias due to lower processing
volumes, and an increase of 9,124 ounces sold at Lamaque due to
increased tonnes mined and processed. Gold sales were 119,384
ounces in Q4 2021, a decrease of 13% from 137,523 ounces in Q4
2020, due in part to decreased production at Kisladag as a result
of the HPGR commissioning.
Total revenue was $940.9 million in 2021, a
decrease of 8% from total revenue of $1,026.7 million in 2020.
Total revenue was $244.6 million in Q4 2021, a decrease of 12% from
total revenue of $278.5 million in Q4 2020. Decreases in both
periods were primarily due to lower sales volumes combined with
lower average realized gold prices.
Cash operating costs in 2021 averaged $626 per
ounce sold, an increase from $560 per ounce sold in 2020. In Q4
2021, cash operating costs averaged $571 per ounce sold, an
increase from $536 per ounce sold in Q4 2020. Increases in both
periods were primarily due to lower grade ore mined and processed
at Kisladag, resulting in fewer ounces produced and sold. These
increases were partly offset by a reduction in cash operating costs
per ounce sold at Olympias, and to a lesser extent Efemcukuru. A
significant decrease in cash operating costs per ounce sold at
Olympias in Q4 2021 was primarily a result of higher average gold
grades, combined with higher silver and base metal sales, which
reduce cash operating costs as by-product credits.
Net earnings attributable to shareholders from
continuing operations were $10.8 million ($0.06 per share) in 2021,
compared to $131.1 million ($0.77 per share) in 2020
and net loss was $43.1 million ($0.24 per share) in Q4 2021,
compared to $30.0 million ($0.17 per share) in Q4 2020. Decreases
in both periods reflect lower production and sales volumes, lower
average realized gold prices, higher finance costs related to the
debt refinancing, and higher income tax expense.
Adjusted net earnings were $119.3 million ($0.66
per share) in 2021, compared to $194.3 million ($1.14 per share) in
2020. Adjusted net earnings in 2021 removes, among other things, a
$54.6 million loss on foreign exchange due to translation of
deferred tax balance, $31.1 million of finance costs related to
debt refinancing, and $30.8 million of impairment losses and asset
write-downs related to the closure of Stratoni, including deferred
tax expense resulting from the closure.
Lower sales volumes in 2021, combined with a
lower gold price, resulted in EBITDA of $423.5 million, including
$103.8 million in Q4 2021. Adjusted EBITDA(1) of $444.2 million in
2021 and $126.1 million in Q4 2021 exclude, among other things,
$17.4 million of impairment losses and asset write-downs related to
the closure of Stratoni.
Operations Update and Outlook
Gold Operations
|
|
3 months ended December 31, |
12 months ended December 31, |
|
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
2022 Outlook |
|
Total |
|
|
|
|
|
|
Ounces produced |
|
122,582 |
|
138,220 |
|
475,850 |
|
528,874 |
460,000 – 490,000 |
|
Ounces sold |
|
119,384 |
|
137,523 |
|
472,307 |
|
526,406 |
n/a |
|
Production costs |
$118.2 |
$117.0 |
$449.7 |
$445.2 |
n/a |
|
Cash operating costs ($/oz sold) (1) |
$571 |
$536 |
$626 |
$560 |
$640 – 690 |
|
All-in sustaining costs ($/oz sold) (1) |
$1,077 |
$959 |
$1,069 |
$921 |
$1,075 – 1,175 |
|
Sustaining capital expenditures (1) |
$33.8 |
$29.0 |
$113.1 |
$92.4 |
$118 – 138 |
|
Kisladag |
|
|
|
|
|
|
Ounces produced |
|
33,136 |
|
56,816 |
|
174,365 |
|
226,475 |
145,000 – 155,000 |
|
Ounces sold |
|
33,269 |
|
55,807 |
|
175,862 |
|
226,895 |
n/a |
|
Production costs |
$28.8 |
$34.1 |
$122.6 |
$129.3 |
n/a |
|
Cash operating costs ($/oz sold) (1) |
$737 |
$447 |
$583 |
$451 |
$690 – 740 |
|
All-in sustaining costs ($/oz sold) (1) |
$977 |
$732 |
$797 |
$664 |
n/a |
|
Sustaining capital expenditures (1) |
$4.0 |
$6.5 |
$18.6 |
$20.1 |
$14 – 19 |
|
Lamaque |
|
|
|
|
|
|
Ounces produced |
|
51,354 |
|
44,168 |
|
153,201 |
|
144,141 |
165,000 – 175,000 |
|
Ounces sold |
|
50,257 |
|
44,990 |
|
151,393 |
|
142,269 |
n/a |
|
Production costs |
$26.7 |
$24.0 |
$99.0 |
$78.3 |
n/a |
|
Cash operating costs ($/oz sold) (1) |
$482 |
$503 |
$616 |
$522 |
$620 – 670 |
|
All-in sustaining costs ($/oz sold) (1) |
$815 |
$789 |
$1,017 |
$827 |
n/a |
|
Sustaining capital expenditures (1) |
$13.4 |
$9.8 |
$47.3 |
$32.9 |
$55 – 60 |
|
Efemcukuru |
|
|
|
|
|
|
Ounces produced |
|
22,631 |
|
25,828 |
|
92,707 |
|
99,835 |
85,000 – 90,000 |
|
Ounces sold |
|
21,797 |
|
24,956 |
|
92,758 |
|
98,340 |
n/a |
|
Production costs |
$18.1 |
$17.4 |
$67.2 |
$72.6 |
n/a |
|
Cash operating costs ($/oz sold) (1) |
$606 |
$493 |
$551 |
$556 |
$600 – 650 |
|
All-in sustaining costs ($/oz sold) (1) |
$1,104 |
$989 |
$901 |
$918 |
n/a |
|
Sustaining capital expenditures (1) |
$6.4 |
$7.3 |
$18.0 |
$19.1 |
$15 – 20 |
|
Olympias |
|
|
|
|
|
|
Ounces produced |
|
15,461 |
|
11,408 |
|
55,577 |
|
58,423 |
65,000 – 75,000 |
|
Ounces sold |
|
14,061 |
|
11,770 |
|
52,294 |
|
58,902 |
n/a |
|
Production costs |
$28.1 |
$27.6 |
$113.4 |
$113.4 |
n/a |
|
Cash operating costs ($/oz sold) (1) |
$441 |
$1,166 |
$930 |
$1,078 |
$650 – 700 |
|
All-in sustaining costs ($/oz sold) (1) |
$1,467 |
$1,768 |
$1,715 |
$1,541 |
n/a |
|
Sustaining capital expenditures (1) |
$10.1 |
$5.5 |
$29.1 |
$20.2 |
$34 – 39 |
|
(1) |
These are non-IFRS financial measures and ratios. Further details
on these non-IFRS financial measures and ratios are provided in the
MD&A accompanying Eldorado’s financial statements filed from
time to time on SEDAR at www.sedar.com. |
Kisladag
Kisladag produced 174,365 ounces of gold in
2021, a decrease of 23% from 226,475 ounces in 2020. The decrease
was the result of a planned shift to lower-grade ore through 2021
as compared to 2020. As expected, average grade declined in 2021 to
0.75 grams per tonne, as compared to an average grade of 1.00 grams
per tonne in 2020, and is expected to remain at reduced levels in
2022. Tonnes placed on the heap leach pad were reduced in Q4 2021
by the commissioning of the HPGR circuit during the quarter. The
lower tonnage placed on the heap leach pad in Q4 2021 is expected
to reduce gold production in Q1 2022. Construction and wet
commissioning of the HPGR circuit was completed in December, and we
are now ramping up production and metallurgical adjustments. To
date, the HPGR circuit performance is meeting our expectations and
our team continues to balance ore agglomeration and tonnes placed
with leach kinetics to obtain optimal performance.
Cash operating costs per ounce sold increased to
$583 in 2021 from $451 in 2020 and was primarily due to lower
production and sales as a result of the lower average grade of ore
placed on the leach pad throughout 2021. Cash operating costs per
ounce sold increased to $737 in Q4 2021 from $447 in Q4 2020
primarily as a result of lower production in the quarter.
AISC per ounce sold increased to $797 in 2021
from $664 in 2020 and to $977 in Q4 2021 from $732 in Q4 2020.
Increases in both periods were primarily due to higher cash
operating costs per ounce sold, partly offset by lower sustaining
capital expenditure. Sustaining capital expenditure(1) of $18.6
million in 2021, including $4.0 million in Q4 2021, related
primarily to mine equipment overhauls and process infrastructure
upgrades.
Growth capital expenditures were $89.9 million
in 2021, including $19.0 million in Q4 2021. Growth capital in
2021 included construction of the HPGR circuit, waste stripping to
support the mine life extension and construction of the first phase
of the north heap leach pad, which is expected to be available for
stacking in mid-2022.
Lamaque
Lamaque produced 153,201 ounces of gold in 2021,
a 6% increase from 144,141 ounces in 2020. The increase in gold
production reflects higher throughput throughout the year, which
offset planned lower grades. Average grade was 6.54 grams per tonne
in 2021 and benefited from mining higher-grade stopes in Q4 2021
resulting in average grade of 9.16 grams per tonne in the quarter.
Tonnes processed in the year increased 17% from 2020 as a result of
increased underground development and the ability to process higher
volumes, a result from ongoing successful debottlenecking of the
mill. Production of 51,354 ounces of gold in Q4 2021 increased 16%
from 44,168 ounces in Q4 2020 primarily due to higher grade and
recovery rates.
Cash operating costs per ounce sold increased to
$616 in 2021 from $522 in 2020 and primarily reflect the planned
shift to lower-grade ore. Cash operating costs decreased in the
quarter to $482 in Q4 2021 from $503 in Q4 2020 as a result of
higher average grade and increased processing volumes.
AISC per ounce sold increased to $1,017 in 2021
from $827 in 2020 and to $815 in Q4 2021 from $789 in Q4 2020 with
increases in both periods reflecting higher sustaining capital
expenditure. Sustaining capital expenditure of $47.3 million in
2021, including $13.4 million in Q4 2021, related primarily to
underground development and underground infrastructure
improvements.
Growth capital expenditure totalled $35.2
million in 2021, including $9.1 million in Q4 2021, and primarily
related to the development of the underground decline from the
Sigma mill to the Triangle mine, which was completed in Q4 2021.
The decline is expected to reduce operating costs, reduce
greenhouse gas emissions, and provide access for underground drill
platforms for Ormaque, Plug 4, and other exploration targets in the
prospective corridor between the Triangle mine and the Sigma
mill.
Efemcukuru
Efemcukuru produced 92,707 payable ounces of
gold in 2021, a 7% decrease from 99,835 payable ounces in 2020. The
decrease reflects lower average grade in 2021, combined with
reduced effective rates for payable ounces to reflect the structure
of concentrate sales contracts in 2021. The majority of sales
contracts in 2021 had reduced effective rates for payable ounces
that were offset by the elimination of treatment charges and other
deductions blended in the reduced effective rate for those
contracts.
|
(1) |
These measures are non-IFRS financial measures and ratios. Certain
additional disclosures for non-IFRS measures have been incorporated
by reference and additional detail can be found at the end of this
press release and in the section 'Non-IFRS and Other Financial
Measures and Ratios' in Eldorado's December 31, 2021
MD&A. |
Cash operating costs per ounce sold improved
slightly to $551 in 2021, from $556 in 2020 and reflected lower
selling costs due to the change in structure of concentrate sales
contracts, as well as lower costs resulting from the weakening of
the Turkish Lira during 2021. Cash operating costs per ounce sold
increased to $606 in Q4 2021 from $493 in Q4 2020 primarily due to
processing lower grade ore.
AISC per ounce sold improved to $901 in 2021
from $918 in 2020 reflecting lower cash operating costs per ounce
sold and lower sustaining capital expenditure. AISC per ounce sold
increased to $1,104 in Q4 2021 from $989 in Q4 2020 reflecting the
increase in cash operating costs per ounce sold.
Sustaining capital expenditure of $18.0 million
in 2021, including $6.4 million in Q4 2021, related primarily to
underground development and equipment rebuilds and
replacements.
Olympias
Olympias produced 55,577 ounces of gold in 2021,
a 5% decrease from 58,423 ounces in 2020 and reflecting lower
processing volumes as a result of lower mining rates. Gold
production of 15,461 ounces in Q4 2021 increased from 11,408 in Q4
2020 as a result of higher grade ore processed in the quarter,
despite lower processing volumes. Lead, silver and zinc production
were also higher in Q4 2021 as compared to Q4 2020, reflecting
higher average grades. Operations at Olympias continued to be
negatively affected in 2021 by low productivity as the Company
progresses through transformation efforts at its Kassandra mines,
targeting efficiency and productivity improvements. These
efficiency initiatives, coupled with positive grade reconciliation,
resulted in higher fourth quarter production at Olympias to end the
year. Discussions with stakeholders are ongoing and are expected to
lead to sustainable improvement.
Cash operating costs per ounce sold decreased to
$930 in 2021 from $1,078 in 2020 and to $441 in Q4 2021 from $1,166
in Q4 2020. Decreases in both periods were the result of higher
base metal revenue, which reduces cash operating costs as
by-product credits. The significant decrease in cash operating
costs per ounce sold in Q4 2021 is the result of a higher
proportion of silver and base metal revenue in the quarter,
combined with higher gold production due to the higher average gold
grade.
AISC per ounce sold increased to $1,715 in 2021
from $1,541 in 2020 as a result of increased sustaining capital
expenditure, which was partly offset by lower cash operating costs
per ounce sold. AISC per ounce sold decreased to $1,467 in Q4 2021
from $1,768 in Q4 2020 as a result of lower cash operating costs
per ounce sold in the quarter, partly offset by higher sustaining
capital expenditure.
Sustaining capital expenditure increased to
$29.1 million in 2021 from $20.2 million in 2020 and to $10.1
million in Q4 2021 from $5.5 million in Q4 2020. Spending in both
periods primarily included underground development, tailings
facility construction and underground infrastructure improvements.
Growth capital expenditure of $5.3 million in 2021 included
processing upgrades.
For further information on the Company’s
operating results for the year-end and fourth quarter of 2021,
please see the Company’s Management’s Discussion and Analysis filed
on SEDAR at www.sedar.com under the Company’s profile.
Conference Call
A conference call to discuss the details of the
Company’s Fourth Quarter and Year-End 2021 Results and the Lamaque
Technical Study will be held by senior management on Friday,
February 25, 2022 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 and via this link:
http://services.choruscall.ca/links/eldoradogold20220225.html
|
Conference Call Details |
|
Replay (available until April 1, 2022) |
|
Date: |
February 25, 2022 |
|
Toronto: |
+1 604.638.9010 |
|
Time: |
8:30 am PT (11:30 am ET) |
|
Toll Free: |
+1 800.319.6413 |
|
Dial in: |
+1 604.638.5340 |
|
Access code: |
8299 |
|
Toll free: |
+1 800.319.4610 |
|
|
|
About Eldorado Gold
Eldorado is a gold and base metals producer with
mining, development and exploration operations in Turkey, Canada,
Greece, and Romania. The Company has a highly skilled and dedicated
workforce, safe and responsible operations, a portfolio of
high-quality assets, and long-term partnerships with local
communities. Eldorado's common shares trade on the Toronto
Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE:
EGO).
Contacts
Investor Relations
Lisa Wilkinson, VP Investor
Relations604.757.2237 or 1.888.353.8166
lisa.wilkinson@eldoradogold.com
Media
Louise McMahon, Director Communications &
Public Affairs604.757.5573 or 1.888.363.8166
louise.mcmahon@eldoradogold.com
Non-IFRS and Other Financial Measures and
Ratios
Certain non-IFRS and other non-financial
measures and ratios are included in this press release, including
average realized gold price per ounce sold, cash operating costs
and cash operating costs per ounce sold, total cash costs and total
cash costs per ounce sold, all-in sustaining costs ("AISC") and
AISC per ounce sold, adjusted net earnings/(loss) attributable to
shareholders, adjusted net earnings/(loss) per share attributable
to shareholders, working capital, cash flow from operations before
changes in non-cash working capital, earnings before interest,
taxes and depreciation and amortization ("EBITDA") and adjusted
earnings before interest, taxes and depreciation and amortization
("Adjusted EBITDA"), free cash flow and sustaining and growth
capital.
Please see the December 31, 2021 MD&A for
explanations and discussion of these non-IFRS and other
non-financial measures and ratios. The Company believes that these
measures and ratios, in addition to conventional measures and
ratios prepared in accordance with International Financial
Reporting Standards (“IFRS”), provide investors an improved ability
to evaluate the underlying performance of the Company. The non-IFRS
and other non-financial measures and ratios are intended to provide
additional information and should not be considered in isolation or
as a substitute for measures or ratios of performance prepared in
accordance with IFRS. These measures and ratios do not have any
standardized meaning prescribed under IFRS, and therefore may not
be comparable to other issuers. Certain additional disclosures for
these non-IFRS measures have been incorporated by reference and can
be found in the section 'Non-IFRS and Other Financial Measures and
Ratios' in the December 31, 2021 MD&A available on SEDAR
at www.sedar.com and on the Company's website under the 'Investors'
section.
Reconciliation of Production Costs to Cash
Operating Costs and Cash Operating Costs per ounce sold:
|
|
Q4 2021 |
|
Q4 2020 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
Production costs (1) |
$118.2 |
|
$117.0 |
|
$449.7 |
|
$445.2 |
|
$334.8 |
|
|
Stratoni production costs (2) |
|
(16.5) |
|
|
(13.8) |
|
|
(47.6) |
|
|
(51.6) |
|
|
(53.8) |
|
|
Production costs – excluding Stratoni |
|
101.7 |
|
|
103.2 |
|
|
402.2 |
|
|
393.6 |
|
|
281.1 |
|
|
By-product credits |
|
(20.5) |
|
|
(15.1) |
|
|
(64.7) |
|
|
(52.2) |
|
|
(39.3) |
|
|
Royalty expense and production taxes |
|
(13.1) |
|
|
(14.4) |
|
|
(42.0) |
|
|
(46.7) |
|
|
(13.7) |
|
|
Cash operating costs |
$68.2 |
|
$73.6 |
|
$295.5 |
|
$294.7 |
|
$228.0 |
|
|
Gold ounces sold |
|
119,384 |
|
|
137,523 |
|
|
472,307 |
|
|
526,406 |
|
|
374,902 |
|
|
Cash operating cost per ounce sold |
$571 |
|
$536 |
|
$626 |
|
$560 |
|
$608 |
|
|
(1) |
Includes inventory write-downs. |
|
(2) |
Base metals production |
Reconciliation of Cash Operating Costs and Cash
Operating Cost per ounce sold, by asset, for the three months ended
December 31, 2021:
|
|
Direct mining costs |
|
By-product credits |
|
Refining and selling costs |
|
Inventory change (1) |
|
Cash operating costs |
|
Gold oz sold |
|
Cash operating cost/oz sold |
|
Kisladag |
$22.6 |
|
($0.6) |
|
|
$0.1 |
|
$2.4 |
|
|
$24.5 |
|
33,269 |
|
$737 |
|
Lamaque |
|
26.5 |
|
|
(0.5) |
|
|
|
0.1 |
|
|
(1.9) |
|
|
|
24.2 |
|
50,257 |
|
|
482 |
|
Efemcukuru |
|
12.8 |
|
|
(1.0) |
|
|
|
1.6 |
|
|
(0.1) |
|
|
|
13.2 |
|
21,797 |
|
|
606 |
|
Olympias |
|
24.9 |
|
|
(18.3) |
|
|
|
3.8 |
|
|
(4.2) |
|
|
|
6.2 |
|
14,061 |
|
|
441 |
|
Total consolidated |
$86.9 |
|
($20.5) |
|
|
$5.5 |
|
($3.8) |
|
|
$68.2 |
|
119,384 |
|
$571 |
|
(1) |
Inventory change adjustments result from timing differences between
when inventory is produced and when it is sold. |
Reconciliation of Cash Operating costs and Cash
Operating Cost per ounce sold, by asset, for the year ended
December 31, 2021:
|
|
Direct mining costs |
|
By-product credits |
|
Refining and selling costs |
|
Inventory change (1) |
|
Cash operating costs |
|
Gold oz sold |
|
Cash operating cost/oz sold |
|
Kisladag |
$97.6 |
|
($3.1) |
|
|
$2.6 |
|
$5.4 |
|
|
$102.4 |
|
175,862 |
|
$583 |
|
Lamaque |
|
97.2 |
|
|
(1.7) |
|
|
|
0.2 |
|
|
(2.5) |
|
|
|
93.3 |
|
151,393 |
|
|
616 |
|
Efemcukuru |
|
49.2 |
|
|
(4.3) |
|
|
|
5.9 |
|
|
0.3 |
|
|
|
51.1 |
|
92,758 |
|
|
551 |
|
Olympias |
|
94.3 |
|
|
(55.7) |
|
|
|
15.1 |
|
|
(5.1) |
|
|
|
48.6 |
|
52,294 |
|
|
930 |
|
Total Consolidated |
$338.3 |
|
($64.7) |
|
|
$23.8 |
|
($1.9 |
) |
|
$295.5 |
|
472,307 |
|
$626 |
|
(1) |
Inventory change adjustments result from timing differences between
when inventory is produced and when it is sold. |
Reconciliation of Cash Operating Costs and Cash
Operating Cost per ounce sold, by asset, for the three months ended
December 31, 2020:
|
|
Direct mining costs |
|
By-product credits |
|
Refining and selling costs |
|
Inventory change (1) |
|
Cash operating costs |
|
Gold oz sold |
|
Cash operating cost/oz sold |
|
Kisladag |
$24.8 |
|
($0.6) |
|
|
$0.1 |
|
$0.6 |
|
|
$25.0 |
|
55,807 |
|
$447 |
|
Lamaque |
|
24.2 |
|
|
(0.5) |
|
|
|
0.1 |
|
|
(1.1) |
|
|
|
22.7 |
|
44,990 |
|
|
503 |
|
Efemcukuru |
|
11.5 |
|
|
(1.1) |
|
|
|
1.8 |
|
|
0.1 |
|
|
|
12.3 |
|
24,956 |
|
|
493 |
|
Olympias |
|
23.4 |
|
|
(12.8) |
|
|
|
3.6 |
|
|
(0.5) |
|
|
|
13.7 |
|
11,770 |
|
|
1,166 |
|
Total consolidated |
$83.9 |
|
($15.1) |
|
|
$5.6 |
|
($0.8) |
|
|
$73.6 |
|
137,523 |
|
$536 |
|
(1) |
Inventory change adjustments result from timing differences between
when inventory is produced and when it is sold. |
Reconciliation of Cash Operating costs and Cash
Operating Cost per ounce sold, by asset, for the year ended
December 31, 2020:
|
|
Direct mining costs |
|
By-product credits |
|
Refining and selling costs |
|
Inventory change (1) |
|
Cash operating costs |
|
Gold oz sold |
|
Cash operating cost/oz sold |
|
Kisladag |
$96.6 |
|
($2.2) |
|
|
$0.6 |
|
$7.3 |
|
|
$102.3 |
|
226,895 |
|
$451 |
|
Lamaque |
|
77.0 |
|
|
(1.2) |
|
|
|
0.2 |
|
|
(1.8) |
|
|
|
74.2 |
|
142,269 |
|
|
522 |
|
Efemcukuru |
|
46.1 |
|
|
(4.0) |
|
|
|
12.1 |
|
|
0.4 |
|
|
|
54.7 |
|
98,340 |
|
|
556 |
|
Olympias |
|
87.2 |
|
|
(44.8) |
|
|
|
16.7 |
|
|
4.4 |
|
|
|
63.5 |
|
58,902 |
|
|
1,078 |
|
Total Consolidated |
$306.9 |
|
($52.2) |
|
|
$29.6 |
|
$10.3 |
|
|
$294.7 |
|
526,406 |
|
$560 |
| (1) |
Inventory
change adjustments result from timing differences between when
inventory is produced and when it is sold. |
Reconciliation of Cash Operating Costs to Total
Cash Costs and Total Cash Costs per ounce sold:
|
|
Q4 2021 |
Q4 2020 |
|
2021 |
|
2020 |
|
2019 |
|
Cash operating costs |
$68.2 |
$73.6 |
$295.5 |
$294.7 |
$228.0 |
|
Royalties and production taxes |
|
13.1 |
|
14.4 |
|
42.0 |
|
46.7 |
|
13.7 |
|
Total cash costs |
$81.3 |
$88.1 |
$337.5 |
$341.4 |
$241.7 |
|
Gold ounces sold |
|
119,384 |
|
137,523 |
|
472,307 |
|
526,406 |
|
374,902 |
|
Total cash costs per ounce sold |
$681 |
$640 |
$715 |
$649 |
$645 |
Reconciliation of All-in Sustaining Costs and
All-in Sustaining Costs per ounce sold:
|
|
Q4 2021 |
Q4 2020 |
|
2021 |
|
2020 |
|
2019 |
|
Total cash costs |
$81.3 |
$88.1 |
$337.5 |
$341.4 |
$241.7 |
|
Corporate and allocated G&A |
|
10.4 |
|
10.1 |
|
37.6 |
|
35.7 |
|
34.2 |
|
Exploration and evaluation costs |
|
2.9 |
|
2.8 |
|
12.3 |
|
8.3 |
|
9.5 |
|
Reclamation costs and amortization |
|
0.2 |
|
1.9 |
|
4.4 |
|
7.0 |
|
4.6 |
|
Sustaining capital expenditure |
|
33.8 |
|
29.0 |
|
113.1 |
|
92.4 |
|
97.4 |
|
AISC |
$128.5 |
$131.9 |
$504.8 |
$484.8 |
$387.5 |
|
Gold ounces sold |
|
119,384 |
|
137,523 |
|
472,307 |
|
526,406 |
|
374,902 |
|
AISC per ounce sold |
$1,077 |
$959 |
$1,069 |
$921 |
$1,034 |
Reconciliation of All-in Sustaining Costs and
All-in Sustaining Costs per ounce sold, by operating asset and
corporate office, for the three months ended December 31,
2021:
|
|
Cash operating costs |
Royalties & production taxes |
Total cash costs |
Corporate & allocated G&A |
Exploration costs |
Reclamation costs and amortization |
Sustaining capex |
Total AISC |
Gold oz sold |
TotalAISC/ oz
sold |
|
Kisladag |
$24.5 |
$3.6 |
$28.2 |
|
$— |
|
$— |
$0.4 |
|
$4.0 |
$32.5 |
33,269 |
$977 |
|
Lamaque |
|
24.2 |
|
1.9 |
|
26.1 |
|
— |
|
2.3 |
|
(0.8 |
) |
|
13.4 |
|
41.0 |
50,257 |
|
815 |
|
Efemcukuru |
|
13.2 |
|
3.9 |
|
17.2 |
|
— |
|
0.3 |
|
0.2 |
|
|
6.4 |
|
24.1 |
21,797 |
|
1,104 |
|
Olympias |
|
6.2 |
|
3.7 |
|
9.9 |
|
— |
|
0.3 |
|
0.4 |
|
|
10.1 |
|
20.6 |
14,061 |
|
1,467 |
|
Corporate (1) |
|
— |
|
— |
|
— |
|
10.4 |
|
— |
|
— |
|
|
— |
|
10.4 |
— |
|
87 |
|
Total consolidated |
$68.2 |
$13.1 |
$81.3 |
$10.4 |
$2.9 |
$0.2 |
|
$33.8 |
$128.5 |
119,384 |
$1,077 |
|
(1) |
Excludes general and administrative expenses related to business
development activities and projects. Includes share based payments
expense and defined benefit pension plan expense. AISC per ounce
sold has been calculated using total consolidated gold ounces
sold. |
Reconciliation of All-in Sustaining Costs and
All-in Sustaining Costs per ounce sold, by operating asset and
corporate office, for the year ended December 31, 2021:
|
|
Cash operating costs |
Royalties & production taxes |
Total cash costs |
Corporate & allocated G&A |
Exploration costs |
Reclamation costs and amortization |
Sustaining capex |
Total AISC |
Gold oz sold |
TotalAISC/ oz
sold |
|
Kisladag |
$102.4 |
$17.1 |
$119.5 |
$0.1 |
|
$1.9 |
|
$18.6 |
$140.2 |
175,862 |
$797 |
|
Lamaque |
|
93.3 |
|
4.1 |
|
97.3 |
|
|
9.5 |
|
(0.3 |
) |
|
47.3 |
|
153.9 |
151,393 |
|
1,017 |
|
Efemcukuru |
|
51.1 |
|
11.8 |
|
63.0 |
|
— |
|
1.6 |
|
1.0 |
|
|
18.0 |
|
83.6 |
92,758 |
|
901 |
|
Olympias |
|
48.6 |
|
9.1 |
|
57.7 |
|
|
1.1 |
|
1.8 |
|
|
29.1 |
|
89.7 |
52,294 |
|
1,715 |
|
Corporate (1) |
|
— |
|
— |
|
— |
|
37.5 |
|
— |
|
— |
|
|
— |
|
37.5 |
— |
|
79 |
|
Total consolidated |
$295.5 |
$42.0 |
$337.5 |
$37.6 |
$12.3 |
$4.4 |
|
$113.1 |
$504.8 |
472,307 |
$1,069 |
|
(1) |
Excludes general and administrative expenses related to business
development activities and projects. Includes share based payments
expense and defined benefit pension plan expense. AISC per ounce
sold has been calculated using total consolidated gold ounces
sold. |
Reconciliation of All-in Sustaining Costs and
All-in Sustaining Costs per ounce sold, by operating asset and
corporate office, for the three months ended December 31,
2020:
|
|
Cash operating costs |
Royalties & production taxes |
Total cash costs |
Corporate & allocated G&A |
Exploration costs |
Reclamation costs and amortization |
Sustaining capex |
Total AISC |
Gold oz sold |
TotalAISC/ oz
sold |
|
Kisladag |
$25.0 |
$8.5 |
$33.5 |
|
$— |
|
$— |
$0.9 |
$6.5 |
$40.9 |
55,807 |
$732 |
|
Lamaque |
|
22.7 |
|
0.9 |
|
23.5 |
|
— |
|
1.7 |
|
0.4 |
|
9.8 |
|
35.5 |
44,990 |
|
789 |
|
Efemcukuru |
|
12.3 |
|
4.0 |
|
16.3 |
|
— |
|
0.9 |
|
0.2 |
|
7.3 |
|
24.7 |
24,956 |
|
989 |
|
Olympias |
|
13.7 |
|
1.0 |
|
14.8 |
|
— |
|
0.3 |
|
0.3 |
|
5.5 |
|
20.8 |
11,770 |
|
1,768 |
|
Corporate (1) |
|
— |
|
— |
|
— |
|
10.1 |
|
— |
|
— |
|
— |
|
10.1 |
— |
|
73 |
|
Total consolidated |
$73.6 |
$14.4 |
$88.1 |
$10.1 |
$2.8 |
$1.9 |
$29.1 |
$131.9 |
137,523 |
$959 |
|
(1) |
Excludes general and administrative expenses related to business
development activities and projects. Includes share based payments
expense and defined benefit pension plan expense. AISC per ounce
sold has been calculated using total consolidated gold ounces
sold. |
Reconciliation of All-in Sustaining Costs and
All-in Sustaining Costs per ounce sold, by operating asset and
corporate office, for the year ended December 31, 2020:
|
|
Cash operating costs |
Royalties & production taxes |
Total cash costs |
Corporate & allocated G&A |
Exploration costs |
Reclamation costs and amortization |
Sustaining capex |
Total AISC |
Gold oz sold |
TotalAISC/ oz
sold |
|
Kisladag |
$102.3 |
$24.9 |
$127.1 |
|
$— |
|
$— |
$3.3 |
$20.1 |
$150.6 |
226,895 |
$664 |
|
Lamaque |
|
74.2 |
|
2.9 |
|
77.1 |
|
— |
|
6.0 |
|
1.6 |
|
32.9 |
|
117.6 |
142,269 |
|
827 |
|
Efemcukuru |
|
54.7 |
|
13.9 |
|
68.6 |
|
— |
|
1.6 |
|
1.0 |
|
19.1 |
|
90.3 |
98,340 |
|
918 |
|
Olympias |
|
63.5 |
|
5.1 |
|
68.6 |
|
— |
|
0.8 |
|
1.2 |
|
20.2 |
|
90.8 |
58,902 |
|
1,541 |
|
Corporate (1) |
|
— |
|
— |
|
— |
|
35.6 |
|
— |
|
— |
|
— |
|
35.6 |
— |
|
68 |
|
Total consolidated |
$294.7 |
$46.7 |
$341.4 |
$35.7 |
$8.3 |
$7.0 |
$92.5 |
$484.9 |
526,406 |
$921 |
|
(1) |
Excludes general and administrative expenses related to business
development activities and projects. Includes share based payments
expense and defined benefit pension plan expense. AISC per ounce
sold has been calculated using total consolidated gold ounces
sold. |
Reconciliation of general and administrative
expenses included in All-in Sustaining Costs:
|
|
Q4 2021 |
|
Q4 2020 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
General and administrative expenses (from
consolidated statement of operations) |
$9.1 |
|
$7.5 |
|
$36.7 |
|
$28.5 |
|
$29.2 |
|
|
Add: |
|
|
|
|
|
|
Share based payments expense |
|
2.5 |
|
|
3.4 |
|
|
7.9 |
|
|
10.7 |
|
|
10.4 |
|
|
Employee benefit pension plan expense from corporate and operating
gold mines |
|
0.1 |
|
|
0.9 |
|
|
2.3 |
|
|
2.8 |
|
|
2.7 |
|
|
Less: |
|
|
|
|
|
|
General and administrative expenses related to non-gold mines and
in-country offices |
|
(0.2 |
) |
|
0.1 |
|
|
(0.5 |
) |
|
(0.4 |
) |
|
(1.9 |
) |
|
Depreciation in G&A |
|
(0.4 |
) |
|
(0.5 |
) |
|
(1.9 |
) |
|
(2.1 |
) |
|
(2.2 |
) |
|
Business development |
|
(0.4 |
) |
|
(0.9 |
) |
|
(4.6 |
) |
|
(2.5 |
) |
|
(1.7 |
) |
|
Development projects |
|
(0.4 |
) |
|
(0.5 |
) |
|
(2.5 |
) |
|
(1.4 |
) |
|
(2.6 |
) |
|
Adjusted corporate general and administrative
expenses |
$10.4 |
|
$10.1 |
|
$37.5 |
|
$35.6 |
|
$33.9 |
|
|
Regional general and administrative costs allocated to gold
mines |
|
— |
|
|
— |
|
|
0.1 |
|
|
0.1 |
|
|
0.3 |
|
|
Corporate and allocated general and administrative expenses
per AISC |
$10.4 |
|
$10.1 |
|
$37.6 |
|
$35.7 |
|
$34.2 |
|
Reconciliation of exploration costs included in
All-in Sustaining Costs:
|
|
Q4 2021 |
|
Q4 2020 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
Exploration and evaluation expense (1)(from
consolidated statement of operations) |
$1.8 |
|
$3.0 |
|
$18.3 |
|
$12.5 |
|
$14.6 |
|
|
Add: |
|
|
|
|
|
|
Capitalized evaluation cost related to gold mines |
|
2.1 |
|
|
2.3 |
|
|
8.8 |
|
|
6.0 |
|
|
7.2 |
|
|
Less: |
|
|
|
|
|
|
Exploration and evaluation expenses related to non-gold mines and
other sites (1) |
|
(1.0 |
) |
|
(2.4 |
) |
|
(14.9 |
) |
|
(10.1 |
) |
|
(12.3 |
) |
|
Exploration costs per AISC |
$2.9 |
|
$2.9 |
|
$12.3 |
|
$8.4 |
|
$9.5 |
|
|
(1) |
From Q3 2021, the Brazil Segment is presented as a discontinued
operation. See Note 7 of our Consolidated Financial Statements.
Amounts presented are from continuing operations only. |
Reconciliation of reclamation costs and
amortization included in All-in Sustaining Costs:
|
|
Q4 2021 |
|
Q4 2020 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
Asset retirement obligation accretion(from notes
to the consolidated financial statements) |
$0.4 |
|
$0.4 |
|
$1.4 |
|
$1.9 |
|
$2.5 |
|
|
Add: |
|
|
|
|
|
|
Depreciation related to asset retirement obligation assets |
|
(0.1 |
) |
|
1.5 |
|
|
3.2 |
|
|
5.6 |
|
|
2.9 |
|
|
Less: |
|
|
|
|
|
|
Asset retirement obligation accretion related to non-gold mines and
other sites |
|
(0.1 |
) |
|
(0.1 |
) |
|
(0.3 |
) |
|
(0.6 |
) |
|
(0.8 |
) |
|
Reclamation costs and amortization per AISC |
$0.2 |
|
$1.9 |
|
$4.4 |
|
$7.0 |
|
$4.6 |
|
Reconciliation of Sustaining Capital and Growth
Capital:
|
|
Q4 2021 |
|
Q4 2020 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
Additions to property, plant and
equipment(1)(from notes to the
consolidated financial statements) |
$80.1 |
|
$71.9 |
|
$292.8 |
|
$198.4 |
|
$181.1 |
|
|
Growth and development project capital expenditure |
|
(40.0 |
) |
|
(31.5 |
) |
|
(156.7 |
) |
|
(82.9 |
) |
|
(58.2 |
) |
|
Capitalized exploration |
|
(3.6 |
) |
|
(2.5 |
) |
|
(12.4 |
) |
|
(7.4 |
) |
|
(10.9 |
) |
|
Sustaining capital expenditure Stratoni (2) |
|
(2.5 |
) |
|
(2.7 |
) |
|
(7.3 |
) |
|
(7.5 |
) |
|
(9.3 |
) |
|
Sustaining capital expenditure equipment leases (3) |
|
(0.2 |
) |
|
(0.1 |
) |
|
(2.0 |
) |
|
(2.0 |
) |
|
(1.5 |
) |
|
Corporate leases |
|
— |
|
|
(6.2 |
) |
|
(1.3 |
) |
|
(6.2 |
) |
|
— |
|
|
Capitalized interest |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(3.8 |
) |
|
Sustaining capital expenditure at operating gold
mines |
$33.8 |
|
$29.0 |
|
$113.1 |
|
$92.4 |
|
$97.4 |
|
| (1) |
Does not
include capital expenditures related to discontinued
operations |
| (2) |
Base metals production. |
| (3) |
Non-cash sustaining equipment leases. |
Average realized gold price per ounce sold is
reconciled for the periods presented as follows:
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2021 |
|
Q4 2020 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$244.6 |
|
$278.5 |
|
$940.9 |
|
$1,026.7 |
|
$617.8 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Less non-gold revenue |
($32.7 |
) |
($24.8 |
) |
($102.3 |
) |
($88.4 |
) |
($86.9 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Gold revenue |
$212.0 |
|
$253.7 |
|
$838.6 |
|
$938.3 |
|
$530.9 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Gold oz sold |
|
119,384 |
|
|
137,523 |
|
|
472,307 |
|
|
526,406 |
|
|
374,902 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Average realized gold price per ounce sold |
$1,776 |
|
$1,845 |
|
$1,775 |
|
$1,783 |
|
$1,416 |
|
Reconciliation of Net Earnings attributable to
shareholders of the Company to Adjusted Net Earnings attributable
to shareholders of the Company:
|
Continuing Operations |
Q4 2021 |
|
Q4 2020 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
Net earnings (loss) attributable to shareholders of the
Company (1,2) |
($43.1 |
) |
$30.0 |
|
$10.8 |
|
$131.1 |
|
$73.1 |
|
|
Loss (gain) on foreign exchange translation of deferred tax
balances (2,3) |
|
41.4 |
|
|
(6.0 |
) |
|
54.6 |
|
|
10.6 |
|
|
10.4 |
|
|
Closure of Stratoni, net of tax (4) |
|
30.8 |
|
|
— |
|
|
30.8 |
|
|
— |
|
|
— |
|
|
Gain on redemption option derivative |
|
(4.0 |
) |
|
(1.8 |
) |
|
2.7 |
|
|
(1.8 |
) |
|
(4.2 |
) |
|
Finance costs relating to debt refinancing (5) |
|
— |
|
|
— |
|
|
31.1 |
|
|
— |
|
|
— |
|
|
Gain on deferred tax due to changes in tax rates (6) |
|
— |
|
|
— |
|
|
(5.3 |
) |
|
— |
|
|
(7.2 |
) |
|
Gain on sale of mining licences, net of tax (7) |
|
— |
|
|
— |
|
|
(5.3 |
) |
|
— |
|
|
— |
|
|
Write-down of assets (8) |
|
— |
|
|
43.4 |
|
|
— |
|
|
43.4 |
|
|
6.3 |
|
|
Finance costs relating to partial debt redemption |
|
— |
|
|
0.7 |
|
|
— |
|
|
8.6 |
|
|
— |
|
|
Lamaque standby costs, net of tax (9) |
|
— |
|
|
— |
|
|
— |
|
|
2.3 |
|
|
— |
|
|
Impairment (reversal) of property, plant and equipment, net of tax
(10) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(68.2 |
) |
|
Other items (11) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(3.4 |
) |
|
Total adjusted net earnings(1,2) |
$25.1 |
|
$66.4 |
|
$119.3 |
|
$194.3 |
|
$6.8 |
|
|
Weighted average shares outstanding (thousands) |
|
182,496 |
|
|
174,710 |
|
|
180,297 |
|
|
171,047 |
|
|
158,856 |
|
|
Adjusted net earnings per share ($/share) (1) |
$0.14 |
|
$0.38 |
|
$0.66 |
|
$1.14 |
|
$0.04 |
|
|
(1) |
2020 and 2019 amounts have been recast to correct an immaterial
error related to an understatement of the net book value of certain
of our property, plant and equipment as a result of errors in the
amounts recorded for depreciation. See Note 2(a) of our
Consolidated Financial Statements. |
|
(2) |
From Q3 2021, the Brazil Segment is presented as a discontinued
operation. See Note 7 of our Consolidated Financial Statements.
Amounts presented are from continuing operations only. |
|
(3) |
Deferred tax expense of $41.4 million in Q4 2021 includes $26.4
million expense resulting from the significant weakening of the
Turkish Lira in Q4 2021. |
|
(4) |
Costs relating to the closure of Stratoni include $13.9 million
impairment, $3.5 million equipment write-downs and $13.4 million
deferred tax expense. |
|
(5) |
Finance costs relating to the debt refinancing in Q3 2021 include a
$21.4 million redemption premium and $9.7 million of unamortized
costs related to the debt redeemed that were expensed in full in
the quarter. |
|
(6) |
Includes an $11.4 million deferred tax recovery relating to the
adjustment of opening balances for the tax rate decrease in Greece
net of a $6.1 million deferred tax expense relating to the
adjustment of opening balances for the tax rate increase in Turkey.
Both tax rate changes were enacted in Q2 2021 and were retroactive
to January 1, 2021. |
|
(7) |
Sale of mining licences in Turkey in May 2021, net of tax. |
|
(8) |
Non-recurring write-downs in Q4 2020 include a $40.0 million
write-down of capital works in progress and a $3.4 million VAT
provision associated with the write-down. |
|
(9) |
Mine standby costs relating to the government-mandated temporary
suspension of operations at Lamaque in 2020 to address the COVID-19
pandemic are presented net of tax and net of subsidies recorded in
other income. |
|
(10) |
Impairment reversals include $82.3 million ($68.2 million net of
deferred income tax) relating to the Kisladag leach pad and related
property, plant and equipment following the development of a new
production plan which utilized the leach pad for the life of the
Kisladag mine and no longer required the construction of a
mill. |
|
(11) |
Other items include $3.6 million transaction costs, net of tax,
$8.1 million gain on the sale of a net smelter royalty and $1.1
million other non-recurring items, including severance costs. |
Reconciliation of Net Earnings (Loss) before tax
to EBITDA and Adjusted EBITDA:
|
Continuing Operations |
Q4 2021 |
|
Q4 2020 |
|
|
2021 |
|
|
2020 |
|
|
Earnings before income tax (1,2) |
$52.1 |
|
$28.2 |
|
$151.1 |
|
$206.3 |
|
|
Depreciation, depletion and amortization (1,2,3) |
|
47.1 |
|
|
59.1 |
|
|
202.9 |
|
|
220.2 |
|
|
Interest income |
|
(0.3 |
) |
|
(0.3 |
) |
|
(2.2 |
) |
|
(2.1 |
) |
|
Finance costs (2) |
|
5.0 |
|
|
8.4 |
|
|
71.8 |
|
|
50.9 |
|
|
EBITDA |
$103.8 |
|
$95.3 |
|
$423.5 |
|
$475.4 |
|
|
Write-down of assets (2,4) |
|
— |
|
|
43.4 |
|
|
— |
|
|
43.4 |
|
|
Share-based payments |
|
2.5 |
|
|
3.4 |
|
|
7.9 |
|
|
10.7 |
|
|
Loss on disposal of assets (2) |
|
2.3 |
|
|
2.3 |
|
|
2.3 |
|
|
4.6 |
|
|
Closure of Stratoni (5) |
|
17.4 |
|
|
— |
|
|
17.4 |
|
|
— |
|
|
Gain on sale of mining licences (6) |
|
— |
|
|
— |
|
|
(7.0 |
) |
|
— |
|
|
Lamaque standby costs (7) |
|
— |
|
|
— |
|
|
— |
|
|
3.1 |
|
|
Adjusted EBITDA |
$126.1 |
|
$144.5 |
|
$444.2 |
|
$537.2 |
|
|
(1) |
2020 amounts have been recast to correct an immaterial error
related to an understatement of the net book value of certain of
our property, plant and equipment as a result of errors in the
amounts recorded for depreciation. See Note 2(a) of our
Consolidated Financial Statements. |
|
(2) |
From Q3 2021, the Brazil Segment is presented as a discontinued
operation. See Note 7 of our Consolidated Financial Statements.
Amounts presented are from continuing operations only. |
|
(3) |
Includes depreciation within general and administrative
expenses. |
|
(4) |
Non-recurring write-downs in Q4 2020 include a $40.0 million
write-down of capital works in progress and a $3.4 million VAT
provision associated with the write-down. |
|
(5) |
Costs relating to the closure of Stratoni include $3.5 million
write-down of equipment and $13.9 million impairment. |
|
(6) |
Sale of mining licences in Turkey in May 2021. |
|
(7) |
Mine standby costs relating to the government-mandated temporary
suspension of operations at Lamaque to address the COVID-19
pandemic. |
Reconciliation of Cash Generated from Operating
Activities to Free Cash Flow:
|
Continuing Operations |
Q4 2021 |
|
Q4 2020 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
Cash generated from operating activities
(1)(2) |
$112.6 |
|
$121.8 |
|
$365.9 |
|
$471.8 |
|
$202.4 |
|
|
Less: Cash used in investing activities (2) |
|
(66.2 |
) |
|
(64.3 |
) |
|
(263.0 |
) |
|
(252.7 |
) |
|
(185.4 |
) |
|
Add back: Acquisition of subsidiary, net of cash received (3) |
|
— |
|
|
— |
|
|
19.3 |
|
|
— |
|
|
— |
|
|
Add back: Purchase of marketable securities (4) |
|
1.0 |
|
|
— |
|
|
28.1 |
|
|
— |
|
|
— |
|
|
Add back: Proceeds from sale of marketable securities (4) |
|
(2.4 |
) |
|
— |
|
|
(2.4 |
) |
|
(5.2 |
) |
|
— |
|
|
Add back: Proceeds from sale of Tocantinzinho, net of cash disposed
(5) |
|
(19.7 |
) |
|
— |
|
|
(19.7 |
) |
|
— |
|
|
— |
|
|
Add back: Sale of mining licences (6) |
|
(2.3 |
) |
|
— |
|
|
(7.3 |
) |
|
— |
|
|
— |
|
|
Add back: Increase (decrease) in term deposits |
|
— |
|
|
5.7 |
|
|
(59.0 |
) |
|
55.8 |
|
|
(3.4 |
) |
|
Add back: Increase (decrease) in restricted cash |
|
— |
|
|
0.1 |
|
|
0.6 |
|
|
(1.0 |
) |
|
(10.6 |
) |
|
Free Cash Flow |
$23.1 |
|
$63.4 |
|
$62.4 |
|
$268.7 |
|
$3.0 |
|
|
(1) |
2020 amounts have been restated for a voluntary change in
accounting policy to classify cash paid for interest on the
statement of cash flows as a financing, rather than an operating
activity. See Note 5(d) of our Consolidated Financial
Statements. |
|
(2) |
From Q3 2021, the Brazil Segment is presented as a discontinued
operation. See Note 7 of our Consolidated Financial Statements.
Amounts presented are from continuing operations only. |
|
(3) |
Cash paid upon acquisition of QMX in Q2 2021, net of $4.3 million
cash acquired. |
|
(4) |
Purchase of marketable securities includes $18.7 million cash paid
on the acquisition of Probe Metals Inc. Free cash flow in 2020 has
been adjusted to conform with 2021 presentation by including
adjustments relating to proceeds from the sale of marketable
securities (2020: $5.2 million). |
|
(5) |
Cash proceeds received upon the sale of Tocantinzinho, net of $0.3
million cash disposed. |
|
(6) |
Cash consideration received on sale of mining licences. |
Working capital for the periods highlighted is
as follows:
|
|
As at December 31, 2021 |
As at December 31, 2020 |
|
Current assets, excluding assets held for sale (1) |
$728.2 |
$754.1 |
|
Current liabilities, excluding liabilities held for sale |
|
206.7 |
|
262.0 |
|
Working capital |
$521.6 |
$492.1 |
|
(1) |
2020 amount has been recast to correct an immaterial error related
to an understatement of the net book value of certain of our
property, plant and equipment as a result of errors in the amounts
recorded for depreciation. See Note 2(a) of our Consolidated
Financial Statements. |
Reconciliation of Cash Generated from Operating
Activities to Cash Flow from Operations Before Changes in Working
Capital:
|
Continuing Operations |
Q4 2021 |
|
Q4 2020 |
|
2021 |
|
|
2020 |
|
2019 |
|
Cash generated from operating activities (1)(2) |
$112.6 |
|
$121.8 |
$365.9 |
|
$471.8 |
$202.4 |
|
Less: Changes in non-cash working capital (3) |
|
(4.1 |
) |
|
9.7 |
|
(8.9 |
) |
|
33.4 |
|
15.9 |
|
Cash flow from operations before changes in working
capital |
$116.7 |
|
$112.1 |
$374.8 |
|
$438.5 |
$186.5 |
|
(1) |
2020 amounts have been restated for a voluntary change in
accounting policy to classify cash paid for interest on the
statement of cash flows as a financing, rather than an operating
activity. See Note 5(d) of our Consolidated Financial
Statements. |
|
(2) |
From Q3 2021, the Brazil Segment is presented as a discontinued
operation. See Note 7 of our Consolidated Financial Statements.
Amounts presented are from continuing operations only. |
|
(3) |
2020 amounts have been recast to correct an immaterial error
related to an understatement of the net book value of certain of
our property, plant and equipment as a result of errors in the
amounts recorded for depreciation. See Note 2(a) of our
Consolidated Financial Statements. |
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 "advancing", "allow", "anticipates", "believes", “budget”,
"continue", "estimates", "expected", "expects", "forecast",
"foresee", "future", "goal", "guidance", "intends", "opportunity",
"outlook", "pending", "plans", “projected”, "pursue", "scheduled",
"strive", "target", "underway" or the negatives thereof or
variations of such words and phrases or statements that certain
actions, events or results "can", "could", "may", "might",
“should”, "will" or "would" be taken, occur or be achieved.
Forward-looking statements or information
contained in this release include, but are not limited to,
statements or information with respect to: the Company’s 2022
outlook, including individual mine production; our expectation as
to our future financial and operating performance, including
expectations around generating free cash flow; working capital
requirements; debt repayment obligations; use of proceeds from
financing activities; expected metallurgical recoveries and
improved concentrate grade and quality; gold price outlook and the
global concentrate market; operations at Lamaque and the Lamaque
Technical Report; evaluation of Skouries financing alternatives and
restarting construction; expansion and optimization at Kisladag;
the benefits of the decline from the Sigma mill to the Triangle
mine; Olympias stakeholder discussions; risk factors affecting our
business; our strategy, plans and goals, including our proposed
exploration, development, construction, permitting and operating
plans and priorities and related timelines; schedules and results
of litigation and arbitration proceedings; and Non-IFRS Measures.
Forward-looking statements and forward-looking information by their
nature are based on assumptions and involve known and unknown
risks, market 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: our 2022 outlook, results from drilling at Ormaque;
advancement of technical work in respect of Lamaque; advancement of
technical work and construction at Skouries; benefits of the
improvements at Kisladag; how the world-wide economic and social
impact of COVID-19 is managed and the duration and extent of the
COVID-19 pandemic; the associated benefits of the completed
underground decline at the Triangle mine; the benefits of using dry
stack tailings; timing of advancement and completion of
construction, technical work and receipt of approvals, at Skouries
and/or other development projects in Greece; the results of our
exploration programs; the geopolitical, economic, permitting and
legal climate that Eldorado operates in; the future price of gold
and other commodities; the global concentrate market; exchange
rates; anticipated values, costs and expenses; production and
metallurgical recoveries; mineral reserves and resources; and the
impact of acquisitions, dispositions, suspensions or delays on the
Company's business and the Company's ability to achieve its goals.
In addition, except where otherwise stated, Eldorado has 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:
inability to meet production guidance; inability to realize the
benefits of the decline between Sigma mill and the Triangle
underground mine; poor results from drilling at Ormaque; inability
to complete expansion and optimization at Kisladag or to meeting
expected timing thereof, or to achieve the benefits thereof;
inability to assess taxes in Turkey or depreciation expenses;
inability to conduct Olympias stakeholder discussions; risks
relating to the ongoing COVID-19 pandemic and any future pandemic,
epidemic, endemic or similar public health threats; risks relating
to our operations being located in foreign jurisdictions; community
relations and social license; climate change; liquidity and
financing risks; development risks at Skouries and other
development projects; indebtedness, including current and future
operating restrictions, implications of a change of control,
ability to meet debt service obligations, the implications of
defaulting on obligations and change in credit ratings;
environmental matters; waste disposal; the global economic
environment; government regulation; reliance on a limited number of
smelters and off-takers; commodity price risk; mineral tenure;
permits; risks relating to environmental, sustainability and
governance practices and performance; non-governmental
organizations; corruption, bribery and sanctions; litigation and
contracts; information technology systems; estimation of mineral
reserves and mineral resources; production and processing
estimates; credit risk; actions of activist shareholders; price
volatility, volume fluctuations and dilution risk in respect of
Eldorado shares; reliance on infrastructure, commodities and
consumables; currency risk; inflation risk; interest rate risk; tax
matters; dividends; financial reporting, including relating to the
carrying value of the Company's assets and changes in reporting
standards; labour, including relating to employee/union relations,
employee misconduct, key personnel, skilled workforce, expatriates
and contractors; reclamation and long-term obligations; regulated
substances; necessary equipment; co-ownership of the Company's
properties; acquisitions, including integration risks, and
dispositions; the unavailability of insurance; conflicts of
interest; compliance with privacy legislation; reputational issues;
competition, as well as those risk factors discussed in the
sections titled “Managing Risk” in the Company’s Management’s
Discussion and Analysis for the three and twelve months ended
December 31, 2021 and in the sections titled “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 Management’s Discussion and Analysis and Annual
Information Form filed on SEDAR and EDGAR 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.
The inclusion of 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.
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 Company’s financial statements and related MD&A
available on our website and on SEDAR and EDGAR 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 Simon Hille, FAusIMM and VP Technical Services for
the Company, and a "qualified person" under NI 43-101.
Eldorado Gold CorporationConsolidated
Statements of Financial Position
As at December 31, 2021 and December 31, 2020 (In thousands of U.S.
dollars)
|
|
Note |
|
December 31, 2021 |
|
December 31, 2020 |
|
|
|
|
|
|
Restated (Note 5(e)) |
|
ASSETS |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
8 |
|
$ |
481,327 |
|
|
$ |
451,962 |
|
|
Term deposits |
|
|
|
— |
|
|
|
59,034 |
|
|
Accounts receivable and other |
9 |
|
|
68,745 |
|
|
|
73,216 |
|
|
Inventories |
2(a),10 |
|
|
178,163 |
|
|
|
164,135 |
|
|
Current portion of employee benefit plan assets |
19 |
|
|
— |
|
|
|
5,749 |
|
|
|
|
|
|
728,235 |
|
|
|
754,096 |
|
|
Restricted cash |
|
|
|
2,674 |
|
|
|
2,097 |
|
|
Other assets |
11 |
|
|
104,023 |
|
|
|
39,562 |
|
|
Property, plant and equipment |
2(a),13 |
|
|
4,003,211 |
|
|
|
4,042,199 |
|
|
Goodwill |
14 |
|
|
92,591 |
|
|
|
92,591 |
|
|
|
|
|
$ |
4,930,734 |
|
|
$ |
4,930,545 |
|
|
LIABILITIES & EQUITY |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
16 |
|
$ |
195,334 |
|
|
$ |
179,372 |
|
|
Current portion of lease liabilities |
|
|
|
7,228 |
|
|
|
11,297 |
|
|
Current portion of debt |
17 |
|
|
— |
|
|
|
66,667 |
|
|
Current portion of asset retirement obligations |
18 |
|
|
4,088 |
|
|
|
4,701 |
|
|
|
|
|
|
206,650 |
|
|
|
262,037 |
|
|
Debt |
17 |
|
|
489,763 |
|
|
|
434,465 |
|
|
Lease liabilities |
|
|
|
14,895 |
|
|
|
14,658 |
|
|
Employee benefit plan obligations |
19 |
|
|
8,942 |
|
|
|
11,109 |
|
|
Asset retirement obligations |
18 |
|
|
131,367 |
|
|
|
106,677 |
|
|
Deferred income tax liabilities |
2(a),21 |
|
|
439,195 |
|
|
|
414,554 |
|
|
|
|
|
$ |
1,290,812 |
|
|
$ |
1,243,500 |
|
|
Equity |
|
|
|
|
|
|
Share capital |
22 |
|
|
3,225,326 |
|
|
|
3,144,644 |
|
|
Treasury stock |
|
|
|
(10,289 |
) |
|
|
(11,452 |
) |
|
Contributed surplus |
|
|
|
2,615,459 |
|
|
|
2,638,008 |
|
|
Accumulated other comprehensive loss |
|
|
|
(20,905 |
) |
|
|
(21,822 |
) |
|
Deficit |
2(a) |
|
|
(2,239,226 |
) |
|
|
(2,103,206 |
) |
|
Total equity attributable to shareholders of the
Company |
|
|
|
3,570,365 |
|
|
|
3,646,172 |
|
|
Attributable to non-controlling interests |
|
|
|
69,557 |
|
|
|
40,873 |
|
|
|
|
|
|
3,639,922 |
|
|
|
3,687,045 |
|
|
|
|
|
$ |
4,930,734 |
|
|
$ |
4,930,545 |
|
Commitments and Contractual Obligations (Notes 17,
26) Contingencies (Note 27), Subsequent event (Note 23)
Approved on behalf of the Board of
Directors
(signed) John
Webster Director
(signed)
George Burns
Director
Date of approval:
February 24, 2022
Eldorado Gold CorporationConsolidated
Statements of Operations
For the years ended December 31, 2021 and December 31, 2020(In
thousands of U.S. dollars except share and per share amounts)
|
|
Note |
|
Year ended December 31, 2021 |
|
Year ended December 31, 2020 |
|
Revenue |
|
|
|
|
|
|
Metal sales |
30 |
|
$ |
940,914 |
|
|
$ |
1,026,685 |
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
|
|
|
|
Production costs |
31 |
|
|
449,748 |
|
|
|
445,183 |
|
|
Depreciation and amortization |
2(a) |
|
|
200,958 |
|
|
|
218,084 |
|
|
|
|
|
|
650,706 |
|
|
|
663,267 |
|
|
|
|
|
|
|
|
|
Earnings from mine operations |
|
|
|
290,208 |
|
|
|
363,418 |
|
|
|
|
|
|
|
|
|
Exploration and evaluation expenses |
|
|
|
18,314 |
|
|
|
12,493 |
|
|
Mine standby costs |
32 |
|
|
15,433 |
|
|
|
13,665 |
|
|
General and administrative expenses |
|
|
|
36,657 |
|
|
|
28,533 |
|
|
Employee benefit plan expense |
19 |
|
|
2,317 |
|
|
|
2,849 |
|
|
Share-based payments expense |
23 |
|
|
7,945 |
|
|
|
10,692 |
|
|
Impairment of property, plant and equipment |
13 |
|
|
13,926 |
|
|
|
— |
|
|
Write-down of assets |
|
|
|
9,106 |
|
|
|
38,660 |
|
|
Foreign exchange gain |
|
|
|
(26,421 |
) |
|
|
(3,997 |
) |
|
Earnings from operations |
|
|
|
212,931 |
|
|
|
260,523 |
|
|
|
|
|
|
|
|
|
Other income (expense) |
20 |
|
|
9,944 |
|
|
|
(3,321 |
) |
|
Finance costs |
20 |
|
|
(71,809 |
) |
|
|
(50,874 |
) |
|
|
|
|
|
|
|
|
Earnings from continuing operations before income
tax |
|
|
|
151,066 |
|
|
|
206,328 |
|
|
Income tax expense |
2(a),21 |
|
|
139,970 |
|
|
|
82,361 |
|
|
Net earnings from continuing operations |
|
|
|
11,096 |
|
|
|
123,967 |
|
|
Net loss from discontinued operations, net of
tax |
7 |
|
|
(146,802 |
) |
|
|
(6,352 |
) |
|
Net (loss) earnings for the year |
|
|
$ |
(135,706 |
) |
|
$ |
117,615 |
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
Shareholders of the Company |
|
|
|
(136,020 |
) |
|
|
124,795 |
|
|
Non-controlling interests |
|
|
|
314 |
|
|
|
(7,180 |
) |
|
Net (loss) earnings for the year |
|
|
$ |
(135,706 |
) |
|
$ |
117,615 |
|
|
|
|
|
|
|
|
|
(Loss) earnings attributable to shareholders of the
Company: |
|
|
|
|
|
|
Continuing operations |
2(a) |
|
|
10,782 |
|
|
|
131,147 |
|
|
Discontinued operations |
7 |
|
|
(146,802 |
) |
|
|
(6,352 |
) |
|
|
|
|
$ |
(136,020 |
) |
|
$ |
124,795 |
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding (thousands): |
33 |
|
|
|
|
|
Basic |
|
|
|
180,297 |
|
|
|
171,047 |
|
|
Diluted |
|
|
|
181,765 |
|
|
|
175,231 |
|
|
|
|
|
|
|
|
|
Net (loss) earnings per share attributable to shareholders
of the Company: |
|
|
|
|
|
|
Basic (loss) earnings per share |
2(a) |
|
$ |
(0.75 |
) |
|
$ |
0.73 |
|
|
Diluted (loss) earnings per share |
2(a) |
|
$ |
(0.75 |
) |
|
$ |
0.71 |
|
|
|
|
|
|
|
|
|
Net earnings per share attributable to shareholders of the
Company - continuing operations: |
|
|
|
|
|
|
Basic earnings per share |
2(a) |
|
$ |
0.06 |
|
|
$ |
0.77 |
|
|
Diluted earnings per share |
2(a) |
|
$ |
0.06 |
|
|
$ |
0.75 |
|
Eldorado Gold CorporationConsolidated
Statements of Comprehensive Income
(Loss)
For the
years ended December 31, 2020 and December 31, 2019(In thousands of
U.S. dollars)
|
|
Note |
|
Year ended December 31, 2021 |
|
Year ended December 31, 2020 |
|
|
|
|
|
|
|
|
Net (loss) earnings for the year |
2(a) |
|
$ |
(135,706 |
) |
|
$ |
117,615 |
|
|
Other comprehensive (loss) income: |
|
|
|
|
|
|
Items that will not be reclassified to net earnings (loss): |
|
|
|
|
|
|
Change in fair value of investments in equity securities, net of
tax |
|
|
|
1,009 |
|
|
|
1,546 |
|
|
Actuarial losses on employee benefit plans |
19 |
|
|
(115 |
) |
|
|
(3,440 |
) |
|
Income tax recovery on actuarial losses on employee benefit
plans |
|
|
|
23 |
|
|
|
563 |
|
|
Total other comprehensive income (loss) for the
year |
|
|
|
917 |
|
|
|
(1,331 |
) |
|
Total comprehensive (loss) income for the
year |
|
|
$ |
(134,789 |
) |
|
$ |
116,284 |
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
Shareholders of the Company |
2(a) |
|
|
(135,103 |
) |
|
|
123,464 |
|
|
Non-controlling interests |
|
|
|
314 |
|
|
|
(7,180 |
) |
|
|
|
|
$ |
(134,789 |
) |
|
$ |
116,284 |
|
|
|
|
|
|
|
|
Eldorado Gold CorporationConsolidated
Statements of Cash Flows
For the years ended December 31, 2021 and December 31, 2020(In
thousands of U.S. dollars)
|
Cash flows generated from (used in): |
Note |
|
Year endedDecember 31, 2021 |
|
Year endedDecember 31, 2020 |
|
|
|
|
|
|
Restated (Note 5(d)) |
|
Operating activities |
|
|
|
|
|
|
Net earnings for the year from continuing operations |
2(a) |
|
$ |
11,096 |
|
|
$ |
123,967 |
|
|
Items not affecting cash: |
|
|
|
|
|
|
Depreciation and amortization |
2(a) |
|
|
202,857 |
|
|
|
220,224 |
|
|
Finance costs |
|
|
|
71,809 |
|
|
|
50,874 |
|
|
Interest income |
|
|
|
(2,231 |
) |
|
|
(2,056 |
) |
|
Unrealized foreign exchange gain |
|
|
|
(6,231 |
) |
|
|
(2,999 |
) |
|
Income tax expense |
2(a) |
|
|
139,970 |
|
|
|
82,361 |
|
|
Loss on disposal of assets |
|
|
|
2,318 |
|
|
|
4,631 |
|
|
Gain on disposal of mining licenses |
|
|
|
(7,296 |
) |
|
|
— |
|
|
Impairment |
13 |
|
|
13,926 |
|
|
|
— |
|
|
Write-down of assets |
|
|
|
9,106 |
|
|
|
38,660 |
|
|
Share-based payments expense |
23 |
|
|
7,945 |
|
|
|
10,692 |
|
|
Employee benefit plan expense |
19 |
|
|
2,317 |
|
|
|
2,849 |
|
|
|
|
|
|
445,586 |
|
|
|
529,203 |
|
|
Property reclamation payments |
|
|
|
(2,313 |
) |
|
|
(2,301 |
) |
|
Employee benefit plan receipt (payments) |
|
|
|
4,744 |
|
|
|
(2,633 |
) |
|
Income taxes paid |
|
|
|
(75,472 |
) |
|
|
(87,872 |
) |
|
Interest received |
|
|
|
2,231 |
|
|
|
2,056 |
|
|
Changes in non-cash operating working capital |
24 |
|
|
(8,917 |
) |
|
|
33,391 |
|
|
Net cash generated from operating activities of continuing
operations |
|
|
|
365,859 |
|
|
|
471,844 |
|
|
Net cash used in operating activities of discontinued
operations |
|
|
|
(3,489 |
) |
|
|
(1,864 |
) |
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
|
(282,088 |
) |
|
|
(188,858 |
) |
|
Acquisition of QMX Gold Corporation, net of $4,311 cash
received |
6 |
|
|
(19,336 |
) |
|
|
— |
|
|
Proceeds from sale of Tocantinzinho, net of $340 cash disposed |
7 |
|
|
19,660 |
|
|
|
— |
|
|
Proceeds from the sale of property, plant and equipment |
|
|
|
3,090 |
|
|
|
1,214 |
|
|
Value added taxes related to mineral property expenditures,
net |
|
|
|
(24,449 |
) |
|
|
(15,468 |
) |
|
Proceeds from the sale of mining licenses |
|
|
|
7,296 |
|
|
|
— |
|
|
Purchase of marketable securities and investment in debt
securities |
|
|
|
(28,050 |
) |
|
|
— |
|
|
Proceeds from the sale of investments in marketable and debt
securities |
|
|
|
2,375 |
|
|
|
5,237 |
|
|
Decrease (increase) in term deposits |
|
|
|
59,034 |
|
|
|
(55,759 |
) |
|
(Increase) decrease in restricted cash |
|
|
|
(577 |
) |
|
|
983 |
|
|
Net cash used in investing activities of continuing
operations |
|
|
|
(263,045 |
) |
|
|
(252,651 |
) |
|
Net cash (used in) generated from investing activities of
discontinued operations |
|
|
|
(2,833 |
) |
|
|
8,422 |
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
Issuance of common shares, net of issuance costs |
|
|
|
14,552 |
|
|
|
95,992 |
|
|
Acquisition of non-controlling interest |
|
|
|
— |
|
|
|
(7,500 |
) |
|
Contributions from non-controlling interests |
|
|
|
409 |
|
|
|
421 |
|
|
Proceeds from borrowings |
17 |
|
|
500,000 |
|
|
|
150,000 |
|
|
Repayments of borrowings |
17 |
|
|
(517,286 |
) |
|
|
(132,714 |
) |
|
Debt redemption premium paid |
17 |
|
|
(21,400 |
) |
|
|
(6,274 |
) |
|
Loan financing costs |
|
|
|
(9,140 |
) |
|
|
— |
|
|
Interest paid |
|
|
|
(23,643 |
) |
|
|
(38,099 |
) |
|
Principal portion of lease liabilities |
|
|
|
(10,579 |
) |
|
|
(9,732 |
) |
|
Purchase of treasury stock |
|
|
|
— |
|
|
|
(3,550 |
) |
|
Net cash (used in) generated from financing activities
of continuing operations |
|
|
|
(67,087 |
) |
|
|
48,544 |
|
|
Net cash used in financing activities of discontinued
operations |
|
|
|
(40 |
) |
|
|
(75 |
) |
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
|
|
|
29,365 |
|
|
|
274,220 |
|
|
Cash and cash equivalents - beginning of year |
|
|
|
451,962 |
|
|
|
177,742 |
|
|
Cash and cash equivalents - end of year |
|
|
$ |
481,327 |
|
|
$ |
451,962 |
|
Eldorado Gold CorporationConsolidated
Statements of Changes in
Equity
For the years ended December 31, 2021 and December 31, 2020 (In
thousands of U.S. dollars)
|
|
Note |
|
Year ended December 31, 2021 |
|
Year ended December 31, 2020 |
|
|
|
|
|
|
Restated (Note 5(e)) |
|
Share capital |
|
|
|
|
|
|
Balance beginning of year |
|
|
$ |
3,144,644 |
|
|
$ |
3,054,563 |
|
|
Shares issued upon exercise of share options, for cash |
|
|
|
1,738 |
|
|
|
3,559 |
|
|
Shares issued upon exercise of performance share units |
|
|
|
1,202 |
|
|
|
— |
|
|
Transfer of contributed surplus on exercise of options |
|
|
|
684 |
|
|
|
1,267 |
|
|
Shares issued to the public, net of share issuance costs |
|
|
|
11,411 |
|
|
|
85,255 |
|
|
Shares issued on acquisition of QMX Gold Corporation |
6 |
|
|
65,647 |
|
|
|
— |
|
|
Balance end of year |
22 |
|
$ |
3,225,326 |
|
|
$ |
3,144,644 |
|
|
|
|
|
|
|
|
|
Treasury stock |
|
|
|
|
|
|
Balance beginning of year |
|
|
$ |
(11,452 |
) |
|
$ |
(8,662 |
) |
|
Purchase of treasury stock |
23 |
|
|
— |
|
|
|
(3,550 |
) |
|
Shares redeemed upon exercise of restricted share units |
|
|
|
1,163 |
|
|
|
760 |
|
|
Balance end of year |
|
|
$ |
(10,289 |
) |
|
$ |
(11,452 |
) |
|
|
|
|
|
|
|
|
Contributed surplus |
|
|
|
|
|
|
Balance beginning of year |
|
|
$ |
2,638,008 |
|
|
$ |
2,627,441 |
|
|
Share-based payment arrangements |
|
|
|
8,461 |
|
|
|
8,422 |
|
|
Shares redeemed upon exercise of restricted share units |
|
|
|
(1,163 |
) |
|
|
(760 |
) |
|
Acquisition of non-controlling interest, without change in
control |
12 |
|
|
— |
|
|
|
4,172 |
|
|
Shares redeemed upon exercise of performance share units |
|
|
|
(1,202 |
) |
|
|
— |
|
|
Transfer to share capital on exercise of options |
|
|
|
(684 |
) |
|
|
(1,267 |
) |
|
Non-reciprocal capital contribution to Deva |
12 |
|
$ |
(27,961 |
) |
|
$ |
— |
|
|
Balance end of year |
|
|
$ |
2,615,459 |
|
|
$ |
2,638,008 |
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive loss |
|
|
|
|
|
|
Balance beginning of year |
|
|
$ |
(21,822 |
) |
|
$ |
(20,491 |
) |
|
Other comprehensive earnings (loss) for the year attributable to
shareholders of the Company |
|
|
|
917 |
|
|
|
(1,331 |
) |
|
Balance end of year |
|
|
$ |
(20,905 |
) |
|
$ |
(21,822 |
) |
|
|
|
|
|
|
|
|
Deficit |
|
|
|
|
|
|
Balance beginning of year |
|
|
$ |
(2,103,206 |
) |
|
$ |
(2,228,001 |
) |
|
Net (loss) earnings attributable to shareholders of the
Company |
2(a) |
|
|
(136,020 |
) |
|
|
124,795 |
|
|
Balance end of year |
|
|
$ |
(2,239,226 |
) |
|
$ |
(2,103,206 |
) |
|
Total equity attributable to shareholders of the
Company |
|
|
$ |
3,570,365 |
|
|
$ |
3,646,172 |
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
|
|
|
|
Balance beginning of year |
|
|
$ |
40,873 |
|
|
$ |
59,304 |
|
|
Non-reciprocal capital contribution to Deva |
12 |
|
|
27,961 |
|
|
|
— |
|
|
Acquisition of non-controlling interest, without change in
control |
12 |
|
|
— |
|
|
|
(11,672 |
) |
|
Earnings (loss) attributable to non-controlling interests |
|
|
|
314 |
|
|
|
(7,180 |
) |
|
Contributions from non-controlling interests |
|
|
|
409 |
|
|
|
421 |
|
|
Balance end of year |
|
|
$ |
69,557 |
|
|
$ |
40,873 |
|
|
Total equity |
|
|
$ |
3,639,922 |
|
|
$ |
3,687,045 |
|
Please see the Consolidated Financial Statements
dated December 31, 2021 for notes to the accounts.
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