Eldorado Gold Corporation (“Eldorado” or “the Company”) today
reports the Company’s financial and operational results for the
first quarter of 2022. For further information please see the
Company’s Consolidated Financial Statements and Management’s
Discussion and Analysis ("MD&A") filed on SEDAR at
www.sedar.com under the Company’s profile.
First Quarter 2022
Highlights
Operations
- Q1 gold
production: 93,209 ounces in Q1 2022. Production was
heavily impacted in the earlier part of the quarter by
COVID-related absenteeism, weather related challenges and power
outages at our operations. In the latter part of the quarter, most
operations returned to planned levels of tonnage, grades and
production.
- Q1 gold
sales: 94,472 ounces at an average realized gold price per
ounce sold (1) of $1,889 in Q1 2022.
- Cash
operating costs(1): $835
per ounce sold in Q1 2022. The increase in cost was primarily
driven by lower overall gold production and an increase in the
price of certain commodities and consumables.
- All-in
sustaining costs
("AISC")(1): $1,347 per
ounce sold in Q1 2022.
- Total
capital expenditures: $60.8 million in Q1 2022,
including $5.6 million of growth capital(1) spent at Skouries
with activity focused on cladding of the process plant,
commencement of basic engineering, and continued preservation of
site facilities and equipment. Growth capital of $23.7 million
in Q1 2022 focused on waste stripping at Kisladag and construction
of the North leach pad.
- Production
outlook: We are maintaining our 2022 annual guidance of
460,000 – 490,000 ounces of gold production.
Financial
- Cash flow
from operating activities before changes in working
capital(1):
$49.7 million in Q1 2022.
- Cash, cash
equivalents and term deposits: $434.7 million, as at
March 31, 2022.
- Adjusted
EBITDA(1): $62.1 million
in Q1 2022.
- Net
loss: Q1 2022 net loss attributable to shareholders of the
Company was $316.8 million or $1.74 loss per share. Lower net
income in Q1 2022 is primarily attributable to an impairment of
$365.4 million ($345.4 million, net of deferred tax) of the Certej
project, a non-core asset, and a write-down of $19.8 million ($15.4
million, net of deferred tax) relating to decommissioned equipment
at Kisladag.
- Adjusted
net loss(1): $19.0
million net loss, or $0.10 loss per share in Q1 2022. Adjusted net
loss in Q1 2022 removes, among other things, the non-cash
impairment charge related to the Certej project and the non-cash
write-down of decommissioned equipment at Kisladag.
- Free cash
flow(1): Negative $26.8 million in Q1 2022, primarily
due to lower gold production and sales.
- Financial
outlook: Cash operating costs and AISC were higher in Q1
2022 due to operational challenges that resulted in lower gold
ounces produced and sold. In light of significant volatility in
prices for electricity, fuel, reagents and other consumables
required for our operations, we are monitoring the impact on
expected full year operating and capital costs and will provide an
update next quarter.
(1) These financial measures or ratios are
non-IFRS financial measures or ratios. Certain additional
disclosures for non-IFRS financial measures and ratios 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 the Company's March 31, 2022
MD&A.
Other
-
Strengthened union agreements: In January 2022, we
completed a two-year collective bargaining agreement with our
labour union in Turkey. Adjustments were incorporated in light of
continued high consumer inflation rates to support our workforce
with rising costs of food and electricity. In April 2022, we also
completed a two-year collective bargaining agreement with our
labour unions in Greece. The agreement incorporates technology and
flexibility to support the achievement of productivity and
efficiency targets.
"Our global operations were met with significant
challenges in the first quarter,” said George Burns, Eldorado’s
President and Chief Executive Officer. "Severe weather in Turkey
and Greece, a government-mandated power outage in Turkey, and
COVID-related absenteeism across all sites impacted our production.
As we previously indicated, production in 2022 is expected to be
heavily weighted to the second half of the year. Despite the
headwinds, we have seen operations improve towards the end of the
quarter and are maintaining our consolidated full-year guidance of
460,000 to 490,000 ounces of gold," added Burns.
“During the quarter, we made meaningful progress
at Skouries, our development project in Greece, with activity
focused on cladding of the process plant, commencement of basic
engineering, and continued preservation of site facilities and
equipment. At Kisladag, the ramp-up of the newly installed HPGR is
continuing, and agglomeration optimization continues to show
improvements. At Lamaque, an exploration drift is currently being
developed from the Triangle-Sigma decline to provide drilling
platforms for resource conversion of the Ormaque deposit beginning
in the second quarter."
"Our focus ahead is on maintaining positive
momentum by delivering on key initiatives including a financing
package for Skouries. Financing discussions continue to advance,
and we are evaluating all available options including, joint
venture equity partners, project and debt financing through EU and
Greek lenders as well as the EU Recovery and Resilience Fund, and
metal streams. Subject to financing and Board approval, target
restart of construction at Skouries is in the second half of
2022."
Consolidated Financial and Operational
Highlights
|
|
3 months ended March 31, |
|
Continuing Operations(6) |
|
2022 |
|
|
|
2021 |
|
Revenue |
$ |
194.7 |
|
|
$ |
224.6 |
|
Gold produced (oz) |
|
93,209 |
|
|
|
111,742 |
|
Gold sold (oz) |
|
94,472 |
|
|
|
113,594 |
|
Average realized gold price ($/oz sold)(2) |
$ |
1,889 |
|
|
$ |
1,732 |
|
Production costs |
$ |
104.6 |
|
|
$ |
108.6 |
|
Cash operating costs ($/oz sold)(2,3) |
$ |
835 |
|
|
$ |
641 |
|
Total cash costs ($/oz sold)(2,3) |
$ |
941 |
|
|
$ |
687 |
|
All-in sustaining costs ($/oz sold)(2,3) |
$ |
1,347 |
|
|
$ |
986 |
|
Net (loss) earnings for the period(1,4) |
$ |
(316.8 |
) |
|
$ |
14.3 |
|
Net (loss) earnings earnings per share – basic ($/share)(1,4) |
$ |
(1.74 |
) |
|
$ |
0.08 |
|
Adjusted net (loss) earnings (1,2,4) |
$ |
(19.0 |
) |
|
$ |
25.2 |
|
Adjusted net (loss) earnings per share ($/share)(1,2,4) |
$ |
(0.10 |
) |
|
$ |
0.14 |
|
Net cash generated from operating activities(5) |
$ |
35.2 |
|
|
$ |
99.1 |
|
Cash flow from operating activities before changes in working
capital(2,5) |
$ |
49.7 |
|
|
$ |
81.2 |
|
Free cash flow(2,5) |
$ |
(26.8 |
) |
|
$ |
33.4 |
|
Cash, cash equivalents and term deposits |
$ |
434.7 |
|
|
$ |
533.8 |
(1) Attributable to shareholders
of the Company. (2) These financial measures or ratios are
non-IFRS financial measures or ratios. See the section 'Non-IFRS
and Other Financial Measures and Ratios' in the Company's MD&A
for explanations and discussion of these non-IFRS financial
measures and ratios. (3) Revenues from silver, lead and zinc
sales are off-set against cash operating costs.(4) Q1 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.(5) Q1 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.(6) The Brazil segment is presented as a
discontinued operation in 2021. See Note 17 of our condensed
consolidated interim financial statements. Amounts presented are
from continuing operations only.
Total revenue was $194.7 million in Q1 2022, a
decrease of 13% from total revenue of $224.6 million in Q1 2021.
The decrease was primarily driven by lower sales volumes in Q1
2022, and was partly offset by higher average metal prices.
Production costs decreased to
$104.6 million in Q1 2022 from $108.6 million in Q1 2021
primarily due the suspension of operations at Stratoni at the end
of 2021. Production costs at Stratoni totalled $15.3 million in Q1
2021. This decrease was partly offset by increases in certain
production costs in Q1 2022 as a result of supply concerns caused
by financial and trade sanctions against Russia, and ongoing supply
chain challenges due to COVID-19. Cost increases primarily impacted
electricity, fuel and reagents.
Cash operating costs in Q1 2022 averaged $835
per ounce sold, an increase from $641 per ounce sold in Q1 2021.
The increase was primarily due to lower production in the quarter,
combined with an increase in certain production costs. AISC per
ounce sold increased to $1,347 in Q1 2022, from $986 in Q1 2021,
primarily due to the increase in cash operating costs per ounce
sold, combined with higher royalty expense.
We reported net loss attributable to
shareholders from continuing operations of $316.8 million ($1.74
loss per share) in Q1 2022, compared to net earnings of $14.3
million ($0.08 earnings per share) in Q1 2021. Lower net income in
Q1 2022 is primarily attributable to the impairment of the Certej
project, a non-core gold asset, and the write-down of
decommissioned equipment at Kisladag.
Adjusted net loss was $19.0 million ($0.10 loss
per share) in Q1 2022, compared to adjusted net earnings of $25.2
million ($0.14 earnings per share) in Q1 2021. Adjusted net loss in
Q1 2022 removed the $365.4 million ($278.0 million
attributable to shareholders and net of deferred tax) non-cash
impairment of Certej, the $19.8 million ($15.4 million
net of deferred tax) non-cash write-down of decommissioned
equipment at Kisladag, $12.4 million loss on foreign exchange due
to translation of deferred tax balances, a $7.0 million gain
on the non-cash revaluation of the derivative related to redemption
options in our debt and a $1.0 million deferred tax recovery
relating to the impact of tax rate changes in Turkey.
Operations Update
Gold Operations
|
|
3 months ended March 31, |
|
|
|
2022 |
|
|
2021 |
|
Total |
|
|
|
Ounces produced |
|
93,209 |
|
|
111,742 |
|
Ounces sold |
|
94,472 |
|
|
113,594 |
|
Production costs |
$ |
104.6 |
|
$ |
108.6 |
|
Cash operating costs ($/oz sold) (1,2) |
$ |
835 |
|
$ |
641 |
|
All-in sustaining costs ($/oz sold) (1,2) |
$ |
1,347 |
|
$ |
986 |
|
Sustaining capital expenditures (2) |
$ |
24.5 |
|
$ |
20.5 |
|
Kisladag |
|
|
|
Ounces produced |
|
29,779 |
|
|
46,172 |
|
Ounces sold |
|
29,778 |
|
|
47,507 |
|
Production costs |
$ |
30.1 |
|
$ |
26.3 |
|
Cash operating costs ($/oz sold) (1,2) |
$ |
861 |
|
$ |
492 |
|
All-in sustaining costs ($/oz sold) (1,2) |
$ |
1,084 |
|
$ |
607 |
|
Sustaining capital expenditures (2) |
$ |
2.5 |
|
$ |
2.8 |
|
Lamaque |
|
|
|
Ounces produced |
|
33,377 |
|
|
28,835 |
|
Ounces sold |
|
34,125 |
|
|
29,078 |
|
Production costs |
$ |
27.2 |
|
$ |
23.0 |
|
Cash operating costs ($/oz sold) (1,2) |
$ |
763 |
|
$ |
759 |
|
All-in sustaining costs ($/oz sold) (1,2) |
$ |
1,182 |
|
$ |
1,162 |
|
Sustaining capital expenditures (2) |
$ |
13.0 |
|
$ |
9.3 |
|
Efemcukuru |
|
|
|
Ounces produced |
|
21,057 |
|
|
23,298 |
|
Ounces sold |
|
21,382 |
|
|
24,130 |
|
Production costs |
$ |
17.0 |
|
$ |
14.6 |
|
Cash operating costs ($/oz sold) (1,2) |
$ |
648 |
|
$ |
525 |
|
All-in sustaining costs ($/oz sold) (1,2) |
$ |
999 |
|
$ |
693 |
|
Sustaining capital expenditures (2) |
$ |
3.5 |
|
$ |
2.6 |
|
Olympias |
|
|
|
Ounces produced |
|
8,996 |
|
|
13,437 |
|
Ounces sold |
|
9,187 |
|
|
12,879 |
|
Production costs |
$ |
30.2 |
|
$ |
29.4 |
|
Cash operating costs ($/oz sold) (1,2) |
$ |
1,449 |
|
$ |
1,145 |
|
All-in sustaining costs ($/oz sold) (1,2) |
$ |
2,399 |
|
$ |
1,799 |
|
Sustaining capital expenditures (2) |
$ |
5.6 |
|
$ |
5.8 |
(1) Revenues from silver, lead
and zinc sales are off-set against cash operating
costs.(2) These financial measures or ratios are non-IFRS
financial measures or ratios. See the section 'Non-IFRS and Other
Financial Measures and Ratios' in the Company's MD&A for
explanations and discussion of these non-IFRS financial measures
and ratios.
Kisladag
Kisladag produced 29,779 ounces of gold in Q1
2022, a 36% decrease from 46,172 ounces in Q1 2021. The decrease
was primarily due to COVID-19 related absenteeism, severe weather
and an approximate three-day government-mandated power outage. The
decrease was also the result of lower tonnage placed on the heap
leach pad in Q4 2021 during the commissioning of the high-pressure
grinding rolls circuit ("HPGR"). Average grade declined to 0.61
grams per tonne in Q1 2022 from 0.77 grams per tonne in Q1
2021.
Tonnes placed on the heap leach pad in Q1 2022
were lower than planned, primarily due to snowfall and prolonged
freezing temperatures that impacted the ore conveyance and stacking
system, reducing productivity in the quarter. Tonnes placed on the
pad and production ramped up in March and optimization of the
agglomeration circuit continued. The HPGR is performing to plan,
with recovery rates as expected. Lower tonnes placed on the heap
leach pad in Q1 2022 are expected to negatively impact gold
production in Q2 2022.
Revenue decreased to $56.6 million in Q1 2022
from $85.7 million in Q1 2021, reflecting lower sales in the
quarter and partly offset by an increase in the average realized
gold price.
Production costs increased to $30.1 million in
Q1 2022 from $26.3 million in Q1 2021 primarily due to cost
increases in labour, reagents, electricity and fuel. These
increases, combined with lower production in the quarter, resulted
in a significant increase in cash operating costs per ounce sold to
$861 in Q1 2022 from $492 in Q1 2021.
AISC per ounce sold increased to $1,084 in Q1
2022 from $607 in Q1 2021, primarily due to the increase in cash
operating costs per ounce sold, combined with an increase in
royalty expense. The increase in royalty expense to $3.7 million in
Q1 2022 from $2.1 million in Q1 2021 was primarily due to a $2.8
million reversal of expense recorded in Q1 2021 following an
amendment of retroactive gold royalty rates, and to a lesser
extent, due to higher gold royalty rates in Q1 2022 in line with
higher gold prices in the quarter.
Sustaining capital expenditures(1) of $2.5
million in Q1 2022 primarily included equipment rebuilds and
processing improvements. Growth capital expenditures of $20.0
million in Q1 2022 included waste stripping to support the mine
life extension, and construction of the first phase of the North
heap leach pad. Severe weather in the quarter resulted in some
delays in construction of the North heap leach pad and it is
expected to be available for stacking in late 2022.
Lamaque
Lamaque produced 33,377 ounces of gold in Q1
2022, a 16% increase from 28,835 ounces in Q1 2021 and primarily
due to higher throughput in the quarter. COVID-19 related
absenteeism led to a reduction in workforce hours in January and
February. This delayed the underground development of high-grade
stopes, which led to lower than planned gold grades in the quarter.
Mine development increased in March and gold grade and tonnage
returned to planned levels. Average grade increased slightly to
5.27 grams per tonne in Q1 2022 from 5.17 grams per tonne in Q1
2021. Full-year gold production at Lamaque is expected to be in
line with guidance.
Revenue increased to $64.9 million in Q1 2022
from $52.0 million in Q1 2021 due to higher production in the
quarter, combined with a higher average realized gold price.
Production costs increased to $27.2 million
in Q1 2022 from $23.0 million in Q1 2021, primarily due to
higher production in the quarter. Cost increases for consumables
were partly offset by a slightly weaker Canadian dollar during the
quarter. Cash operating costs per ounce sold increased to $763 in
Q1 2022 from $759 in Q1 2021, primarily reflecting higher
production.
AISC per ounce sold increased to $1,182 in Q1
2022 from $1,162 in Q1 2021, primarily due to an increase in
sustaining capital expenditure. Sustaining capital expenditure of
$13.0 million in Q1 2022 primarily included underground
development and construction. Growth capital expenditure of $1.8
million in Q1 2022 was primarily construction of underground
infrastructure.
(1) These financial measures or ratios are
non-IFRS financial measures or ratios. Certain additional
disclosures for non-IFRS financial measures and ratios 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 the Company's March 31, 2022
MD&A.
Efemcukuru
Efemcukuru produced 21,057 payable ounces of
gold in Q1 2022, a 10% decrease from 23,298 payable ounces in Q1
2021. The decrease was due to a planned decrease in grade to 5.95
grams per tonne in Q1 2022 from 6.67 grams per tonne in Q1 2021,
and was partly offset by higher throughput during the quarter
despite experiencing COVID-19 related absenteeism.
Revenue increased to $41.3 million in Q1
2022 compared to $39.8 million in Q1 2021. The increase was
due to a higher average realized gold price during Q1 2022, partly
offset by lower payable gold ounces sold.
Production costs increased to $17.0 million
in Q1 2022 from $14.6 million in Q1 2021 due to increased
tonnes processed, combined with cost increases in labour,
electricity and consumables. These increases, combined with lower
production in the quarter, resulted in an increase in cash
operating costs per ounce sold to $648 in Q1 2022, from $525 in Q1
2021.
AISC per ounce sold increased to $999 in Q1 2022
from $693 in Q1 2021, primarily due to the increase in cash
operating costs per ounce sold, combined with an increase in
royalty expense. The increase in royalty expense to
$3.1 million in Q1 2022 from $0.8 million in Q1 2021 was
primarily due to a $1.7 million reversal of expense recorded in Q1
2021 following an amendment of retroactive gold royalty rates, and
to a lesser extent, due to higher gold royalty rates in Q1 2022 in
line with higher gold prices in the quarter.
Sustaining capital expenditures of $3.5 million
in Q1 2022 was primarily underground development and growth capital
expenditures of $0.4 million includes resource conversion
drilling at Kokarpinar.
Olympias
Olympias produced 8,996 ounces of gold in Q1
2022, a 33% decrease from 13,437 ounces in Q1 2021. The decrease
reflected lower processing volumes and lower gold grade in the
quarter. Lead and zinc production were lower in Q1 2022 as compared
to Q1 2021, also due to lower processing volumes while silver
ounces produced were slightly higher due to higher grade. In
January and February, gold production at Olympias was impacted by
COVID-19 related absenteeism. Additionally, operations were
impacted for approximately six days in January due to snowfall in
the region which resulted in an approximate four-day power outage.
Operations resumed mining to plan in March and achieved planned
tonnage and grades for the month. Initiatives are in place to
continue ramping up mine production tonnage, control the grades and
maximize plant throughput for the remainder of the year. Plant
throughput in Q2 2022 is expected to be impacted by planned
processing tie-ins to improve water treatment plant efficiency and
capacity.
Revenue decreased to $31.2 million in Q1 2022
compared to $33.4 million in Q1 2021 primarily as a result of lower
sales volumes. Gold revenue was impacted during the quarter by the
13% VAT import charge levied on customers importing Olympias gold
concentrate into China. This import charge, effective since October
1, 2021, reduces revenue by a corresponding amount. China was the
primary destination of Olympias gold concentrate in Q1 2022, as
shipments to Russia were halted as a result of the Russia-Ukraine
conflict. We continue to explore other markets. These decreases
were partly offset by an increase in the average realized gold
price in the quarter. Silver and base metal revenue increased to
$16.2 million in Q1 2022 from $12.9 million in Q1 2021, primarily
due to strong metal prices in the quarter.
Production costs increased slightly to $30.2
million in Q1 2022 from $29.4 million in Q1 2021. Consistent costs
in the quarter reflected price increases in electricity, fuel and
other consumables, offset by reduced consumption as a result of
lower production. These price increases, combined with lower
production in the quarter, resulted in an increase in cash
operating costs per ounce sold to $1,449 in Q1 2022 from $1,145 in
Q1 2021. This increase was partly offset by a higher proportion of
silver and base metal revenue in the quarter, which reduce cash
operating costs as by-product credits.
AISC per ounce sold increased to $2,399 in Q1
2022 from $1,799 in Q1 2021 primarily due to the increase in cash
operating costs per ounce sold, combined with an increase in
royalty expense. Royalty expense increased to $2.5 million in Q1
2022 from $1.7 million in Q1 2021 as result of higher metal prices
in the quarter. Sustaining capital expenditure of $5.6 million in
Q1 2022 primarily included underground development, and resulted in
a $155 increase in AISC per ounce sold due to lower gold production
in the quarter.
For further information on the Company's
operating results for the first quarter of 2022, please see the
Company’s MD&A 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 First Quarter 2022 Results will be held by senior
management on Friday, April 29, 2022 at 11:30 AM ET (8:30 AM PT).
The call will be webcast and can be accessed at Eldorado Gold’s
website: www.eldoradogold.com or via this link:
https://services.choruscall.ca/links/eldoradogold20220429.html
| Conference
Call Details |
|
Replay
(available until June 3, 2022) |
|
Date: |
April 29, 2022 |
|
Vancouver: |
+1 604 638 9010 |
| Time: |
11:30 am ET (8:30 am PT) |
|
Toll Free: |
+1 800 319 6413 |
| Dial in: |
+1 604 638 5340 |
|
Access code: |
8618 |
| 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 1.888.353.8166
louise.mcmahon@eldoradogold.com
Non-IFRS and Other Financial Measures
and Ratios
Certain non-IFRS financial measures and ratios
are included in this press release, including 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, sustaining and growth capital, average
realized gold price per ounce sold, adjusted net earnings/(loss)
attributable to shareholders, adjusted net earnings/(loss) per
share attributable to shareholders, earnings before interest,
taxes, depreciation and amortization (“EBITDA”), adjusted earnings
before interest, taxes, depreciation and amortization ("Adjusted
EBITDA"), free cash flow, working capital and cash flow from
operating activities before changes in working capital.
Please see the March 31, 2022 MD&A for
explanations and discussion of these non-IFRS and other 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
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 and other financial measures and ratios have been
incorporated by reference and can be found in the section 'Non-IFRS
and Other Financial Measures and Ratios' in the March 31, 2022
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:
|
|
Q1 2022 |
|
Q1 2021 |
|
Production costs
(1) |
$ |
104.6 |
|
|
$ |
108.6 |
|
|
Stratoni production costs (2) |
|
— |
|
|
|
(15.3 |
) |
|
Production costs – excluding Stratoni |
|
104.6 |
|
|
|
93.3 |
|
| By-product credits |
|
(15.6 |
) |
|
|
(15.2 |
) |
| Royalty
expense |
|
(10.1 |
) |
|
|
(5.2 |
) |
|
Cash operating costs |
$ |
78.9 |
|
|
$ |
72.9 |
|
| Gold
ounces sold |
|
94,472 |
|
|
|
113,594 |
|
|
Cash operating cost per ounce sold |
$ |
835 |
|
|
$ |
641 |
|
(1) Includes inventory
write-downs.(2) Base metals production, presented for Q1 2021.
Operations at Stratoni were suspended at the end of 2021.
Reconciliation of Cash Operating Costs and Cash Operating Cost
per ounce sold, by asset, for the three months ended March 31,
2022:
|
|
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 |
$ |
21.2 |
|
$ |
(0.7 |
) |
|
$ |
0.6 |
|
$ |
4.6 |
|
|
$ |
25.7 |
|
29,778 |
|
$ |
861 |
| Lamaque |
|
26.5 |
|
|
(0.3 |
) |
|
|
0.1 |
|
|
(0.1 |
) |
|
|
26.1 |
|
34,125 |
|
|
763 |
| Efemcukuru |
|
12.5 |
|
|
— |
|
|
|
1.5 |
|
|
(0.2 |
) |
|
|
13.9 |
|
21,382 |
|
|
648 |
|
Olympias |
|
25.9 |
|
|
(14.5 |
) |
|
|
3.5 |
|
|
(1.7 |
) |
|
|
13.3 |
|
9,187 |
|
|
1,449 |
|
Total consolidated |
$ |
86.2 |
|
$ |
(15.6 |
) |
|
$ |
5.6 |
|
$ |
2.6 |
|
|
$ |
78.9 |
|
94,472 |
|
$ |
835 |
(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
March 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 |
$ |
23.4 |
|
$ |
(0.8 |
) |
|
$ |
0.1 |
|
$ |
0.6 |
|
|
$ |
23.4 |
|
47,507 |
|
$ |
492 |
| Lamaque |
|
23.2 |
|
|
(0.4 |
) |
|
|
0.1 |
|
|
(0.8 |
) |
|
|
22.1 |
|
29,078 |
|
|
759 |
| Efemcukuru |
|
12.1 |
|
|
(1.1 |
) |
|
|
1.2 |
|
|
0.4 |
|
|
|
12.7 |
|
24,130 |
|
|
525 |
|
Olympias |
|
22.7 |
|
|
(12.9 |
) |
|
|
3.6 |
|
|
1.4 |
|
|
|
14.7 |
|
12,879 |
|
|
1,145 |
|
Total consolidated |
$ |
81.4 |
|
$ |
(15.2 |
) |
|
$ |
5.0 |
|
$ |
1.7 |
|
|
$ |
72.9 |
|
113,594 |
|
$ |
641 |
(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:
|
|
Q1 2022 |
|
Q1 2021 |
|
Cash operating costs |
$ |
78.9 |
|
$ |
72.9 |
|
Royalties |
|
10.1 |
|
|
5.2 |
|
Total cash costs |
$ |
88.9 |
|
$ |
78.0 |
| Gold
ounces sold |
|
94,472 |
|
|
113,594 |
|
Total cash costs per ounce sold |
$ |
941 |
|
$ |
687 |
Reconciliation of Total Cash Costs to All-in
Sustaining Costs and All-in Sustaining Costs per ounce sold:
|
|
Q1 2022 |
|
Q1 2021 |
|
Total cash costs |
$ |
88.9 |
|
$ |
78.0 |
| Corporate and allocated
G&A |
|
11.5 |
|
|
9.6 |
| Exploration and evaluation
costs |
|
0.7 |
|
|
2.6 |
| Reclamation costs and
amortization |
|
1.7 |
|
|
1.4 |
|
Sustaining capital expenditure |
|
24.5 |
|
|
20.5 |
|
AISC |
$ |
127.3 |
|
$ |
112.0 |
| Gold
ounces sold |
|
94,472 |
|
|
113,594 |
|
AISC per ounce sold |
$ |
1,347 |
|
$ |
986 |
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 March 31,
2022:
|
|
Cash operating costs |
Royalties |
Total cash costs |
Corporate & allocated G&A |
Exploration costs |
Reclamation costs and amortization |
Sustaining capex |
Total AISC |
Gold oz sold |
TotalAISC/ oz
sold |
|
Kisladag |
$ |
25.7 |
$ |
3.7 |
$ |
29.3 |
$ |
— |
$ |
— |
$ |
0.4 |
$ |
2.5 |
$ |
32.3 |
29,778 |
$ |
1,084 |
|
Lamaque |
|
26.1 |
|
0.8 |
|
26.9 |
|
— |
|
0.3 |
|
0.1 |
|
13.0 |
$ |
40.3 |
34,125 |
|
1,182 |
|
Efemcukuru |
|
13.9 |
|
3.1 |
|
16.9 |
|
0.2 |
|
0.1 |
|
0.6 |
|
3.5 |
$ |
21.4 |
21,382 |
|
999 |
|
Olympias |
|
13.3 |
|
2.5 |
|
15.8 |
|
— |
|
0.2 |
|
0.4 |
|
5.6 |
$ |
22.0 |
9,187 |
|
2,399 |
|
Corporate (1) |
|
— |
|
— |
|
— |
|
11.3 |
|
— |
|
— |
|
— |
$ |
11.3 |
— |
|
120 |
|
Total consolidated |
$ |
78.9 |
$ |
10.1 |
$ |
88.9 |
$ |
11.5 |
$ |
0.7 |
$ |
1.7 |
$ |
24.5 |
$ |
127.3 |
94,472 |
$ |
1,347 |
(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 March 31,
2021:
|
|
Cash operating costs |
Royalties |
Total cash costs |
Corporate & allocated G&A |
Exploration costs |
Reclamation costs and amortization |
Sustaining capex |
Total AISC |
Gold oz sold |
TotalAISC/ oz
sold |
|
Kisladag |
$ |
23.4 |
$ |
2.1 |
$ |
25.5 |
$ |
— |
$ |
— |
$ |
0.5 |
$ |
2.8 |
$ |
28.8 |
47,507 |
$ |
607 |
|
Lamaque |
|
22.1 |
|
0.5 |
|
22.6 |
|
— |
|
1.7 |
|
0.2 |
|
9.3 |
|
33.8 |
29,078 |
|
1,162 |
|
Efemcukuru |
|
12.7 |
|
0.8 |
|
13.5 |
|
— |
|
0.4 |
|
0.2 |
|
2.6 |
|
16.7 |
24,130 |
|
693 |
|
Olympias |
|
14.7 |
|
1.7 |
|
16.4 |
|
— |
|
0.4 |
|
0.5 |
|
5.8 |
|
23.2 |
12,879 |
|
1,799 |
|
Corporate (1) |
|
— |
|
— |
|
— |
|
9.5 |
|
— |
|
— |
|
— |
|
9.5 |
— |
|
84 |
|
Total consolidated |
$ |
72.9 |
$ |
5.2 |
$ |
78.0 |
$ |
9.6 |
$ |
2.6 |
$ |
1.4 |
$ |
20.5 |
$ |
112.0 |
113,594 |
$ |
986 |
(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:
|
|
Q1 2022 |
|
Q1 2021 |
|
General and administrative expenses(from
consolidated statement of operations) |
$ |
8.3 |
|
|
$ |
10.1 |
|
| Add: |
|
|
| Share-based payments
expense |
|
3.7 |
|
|
|
1.8 |
|
| Employee benefit plan expense
from corporate and operating gold mines |
|
1.8 |
|
|
|
0.7 |
|
| Less: |
|
|
| General and administrative
expenses related to non-gold mines and in-country offices |
|
(0.2 |
) |
|
|
(0.2 |
) |
| Depreciation in G&A |
|
(0.6 |
) |
|
|
(0.6 |
) |
| Business development |
|
(0.5 |
) |
|
|
(1.7 |
) |
|
Development projects |
|
(1.1 |
) |
|
|
(0.7 |
) |
|
Adjusted corporate general and administrative
expenses |
$ |
11.3 |
|
|
$ |
9.5 |
|
|
Regional general and administrative costs allocated to gold
mines |
|
0.2 |
|
|
|
0.1 |
|
|
Corporate and allocated general and administrative expenses
per AISC |
$ |
11.5 |
|
|
$ |
9.6 |
|
Reconciliation of exploration costs included in
All-in Sustaining Costs:
|
|
Q1 2022 |
|
Q1 2021 |
|
Exploration and evaluation expense(from
consolidated statement of operations)(1) |
$ |
5.9 |
|
|
$ |
4.0 |
|
| Add: |
|
|
| Capitalized exploration cost
related to operating gold mines |
|
0.7 |
|
|
|
1.7 |
|
| Less: |
|
|
|
Exploration and evaluation expenses related to non-gold mines and
other sites |
|
(5.9 |
) |
|
|
(3.2 |
) |
|
Exploration costs per AISC |
$ |
0.7 |
|
|
$ |
2.6 |
|
(1) The Brazil
segment is presented as a discontinued operation in 2021. See Note
17 of our condensed consolidated interim financial statements.
Amounts presented are from continuing operations only.
Reconciliation of reclamation costs and
amortization included in All-in Sustaining Costs:
|
|
Q1 2022 |
|
Q1 2021 |
|
Asset retirement obligation accretion(from notes
to the consolidated financial statements) |
$ |
0.6 |
|
|
$ |
0.4 |
|
| Add: |
|
|
| Depreciation related to asset
retirement obligation assets |
|
1.2 |
|
|
|
1.1 |
|
| Less: |
|
|
| Asset
retirement obligation accretion related to non-gold mines and other
sites |
|
(0.1 |
) |
|
|
(0.1 |
) |
|
Reclamation costs and amortization per AISC |
$ |
1.7 |
|
|
$ |
1.4 |
|
Reconciliation of Sustaining and Growth
Capital
|
|
Q1 2022 |
|
Q1 2021 |
|
Additions to property, plant and equipment
(1)(from segment note in the consolidated financial
statements) |
$ |
60.8 |
|
|
$ |
59.4 |
|
| Growth and development project
capital expenditure (1) |
|
(31.9 |
) |
|
|
(34.8 |
) |
| Capitalized evaluation
expenditure |
|
(4.3 |
) |
|
|
(1.8 |
) |
| Sustaining capital expenditure
Stratoni (2) |
|
— |
|
|
|
(1.5 |
) |
| Sustaining capital expenditure
equipment leases (3) |
|
— |
|
|
|
(0.7 |
) |
| Corporate Leases |
|
(0.1 |
) |
|
|
— |
|
|
Sustaining capital expenditure at operating gold
mines |
$ |
24.5 |
|
|
$ |
20.5 |
|
(1) The Brazil
segment is presented as a discontinued operation in 2021. See Note
17 of our condensed consolidated interim financial statements.
Amounts presented are from continuing operations only.(2) Base
metals production, presented for Q1 2021. Operations at Stratoni
were suspended at the end of 2021.(3) Sustaining lease
principal and interest payments, net of non-cash lease
additions.
Average realized gold price per ounce sold is
reconciled for the periods presented as follows:
For the three months ended March 31,
2022:
|
|
Revenue |
Concentrate deductions (1) |
Less non-gold revenue |
Gold revenue |
Gold oz sold |
Average realized gold price per ounce sold |
|
Kisladag |
$ |
56.6 |
$ |
— |
$ |
(0.7 |
) |
$ |
55.9 |
29,778 |
$ |
1,876 |
| Lamaque |
|
64.9 |
|
— |
|
(0.3 |
) |
|
64.6 |
34,125 |
|
1,893 |
| Efemcukuru |
|
41.3 |
|
0.9 |
|
(0.9 |
) |
|
41.3 |
21,382 |
|
1,931 |
| Olympias |
|
31.2 |
|
1.8 |
|
(16.2 |
) |
|
16.7 |
9,187 |
|
1,817 |
|
Stratoni |
$ |
0.6 |
$ |
— |
$ |
(0.6 |
) |
$ |
— |
N/A |
N/A |
|
Total consolidated |
$ |
194.7 |
$ |
2.6 |
$ |
(18.9 |
) |
$ |
178.4 |
94,472 |
$ |
1,889 |
(1) Treatment
charges, refining charges, penalties and other costs deducted from
proceeds from gold concentrate sales.
For the three months ended March 31,
2021:
|
|
Revenue |
Concentrate deductions (1) |
Less non-gold revenue |
Gold Revenue |
Gold oz sold |
Average realized gold price per ounce sold |
|
Kisladag |
$ |
85.7 |
$ |
— |
$ |
(0.8 |
) |
$ |
85.0 |
47,506 |
$ |
1,788 |
| Lamaque |
|
52.0 |
|
— |
|
(0.4 |
) |
|
51.6 |
29,078 |
|
1,774 |
| Efemcukuru |
|
39.8 |
|
1.1 |
|
(1.1 |
) |
|
39.8 |
24,130 |
|
1,651 |
| Olympias |
|
33.4 |
|
— |
|
(12.9 |
) |
|
20.4 |
12,879 |
|
1,586 |
|
Stratoni |
$ |
13.7 |
$ |
— |
$ |
(13.7 |
) |
$ |
— |
N/A |
N/A |
|
Total consolidated |
$ |
224.6 |
$ |
1.1 |
$ |
(28.9 |
) |
$ |
196.8 |
113,593 |
$ |
1,732 |
(1) Treatment
charges, refining charges, penalties and other costs deducted from
proceeds from gold concentrate sales.
Reconciliation of Net Earnings (Loss)
attributable to shareholders of the Company to Adjusted Net
Earnings (Loss) attributable to shareholders of the Company:
|
Continuing Operations (1) |
Q1 2022 |
|
Q1 2021 |
|
Net (loss) earnings attributable to shareholders of the
Company (2) |
$ |
(316.8 |
) |
|
$ |
14.3 |
| Impairment of property, plant
and equipment, net of tax (3) |
|
278.0 |
|
|
|
— |
| Loss on foreign exchange
translation of deferred tax balances |
|
12.4 |
|
|
|
10.2 |
| (Gain) loss on redemption
option derivative |
|
(7.0 |
) |
|
|
0.7 |
| Gain on deferred tax due to
changes in tax rates (4) |
|
(1.0 |
) |
|
|
— |
|
Write-down of assets, net of tax (5) |
|
15.4 |
|
|
|
— |
|
Total adjusted net (loss) earnings |
$ |
(19.0 |
) |
|
$ |
25.2 |
|
Weighted average shares outstanding |
|
182,362 |
|
|
|
174,534 |
|
Adjusted net (loss) earnings per share
($/share) |
$ |
(0.10 |
) |
|
$ |
0.14 |
(1) The Brazil
segment is presented as a discontinued operation in 2021. See Note
17 of our condensed consolidated interim financial statements.
Amounts presented are from continuing operations only.(2) Q1
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.(3) Impairment of Certej
project in Q1 2022, attributable to shareholders of the Company and
net of tax.(4) Deferred tax recovery relating to the
adjustment of opening balances for the tax rate decrease in Turkey.
The tax rate change was enacted in Q1 2022.(5) Non-recurring
asset write-downs in Q1 2022 include decommissioned equipment at
Kisladag as a result of installation and commissioning of the
HPGR.
Reconciliation of Net Earnings (Loss) before
income tax to EBITDA and Adjusted EBITDA:
|
Continuing Operations |
Q1 2022 |
|
Q1 2021 |
|
(Loss) earnings before income tax
(1)(2) |
$ |
(379.1 |
) |
|
$ |
43.1 |
|
| Depreciation and amortization
(1,2,3) |
|
51.2 |
|
|
|
53.1 |
|
| Interest income |
|
(0.5 |
) |
|
|
(0.3 |
) |
| Finance
costs (2) |
|
2.2 |
|
|
|
10.3 |
|
|
EBITDA |
$ |
(326.2 |
) |
|
$ |
106.2 |
|
| Impairment of property, plant
and equipment(4) |
|
365.4 |
|
|
|
— |
|
| Other write-down of
assets(5) |
|
19.8 |
|
|
|
— |
|
| Share-based payments
expense |
|
3.7 |
|
|
|
1.8 |
|
| (Gain) loss on disposal of
assets(2) |
|
(0.6 |
) |
|
|
0.3 |
|
|
Adjusted EBITDA |
$ |
62.1 |
|
|
$ |
108.3 |
|
(1) Q1 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.(2) The Brazil segment is presented as a
discontinued operation in 2021. See Note 17 of our condensed
consolidated interim financial statements. Amounts presented are
from continuing operations only.(3) Includes depreciation
within general and administrative expenses.(4) Impairment of
Certej project in Q1 2022.(5) Deferred tax recovery relating
to the adjustment of opening balances for the tax rate decrease in
Turkey. The tax rate change was enacted in Q1
2022.(6) Non-recurring asset write-downs in Q1 2022 include
decommissioned equipment at Kisladag as a result of installation
and commissioning of the HPGR.
Reconciliation of Net Cash Generated from
Operating Activities to Free Cash Flow:
|
Continuing Operations |
Q1 2022 |
|
Q1 2021 |
|
Net cash generated from (used in) operating
activities (1,2) |
$ |
35.2 |
|
|
$ |
99.1 |
|
| Less: Cash used in investing
activities (2) |
|
(122.1 |
) |
|
|
(9.7 |
) |
| Add back: Increase (decrease)
in term deposits |
|
60.0 |
|
|
|
(56.1 |
) |
| Add
back: (Decrease) increase in restricted cash |
|
— |
|
|
|
0.1 |
|
|
Free cash flow |
$ |
(26.8 |
) |
|
$ |
33.4 |
|
(1) Q1 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.(2) The Brazil segment is presented as a discontinued
operation in 2021. See Note 17 of our condensed consolidated
interim financial statements. Amounts presented are from continuing
operations only.
Working capital for the periods highlighted is
as follows:
|
|
As at March 31, 2022 |
|
As at December 31, 2021 |
|
Current assets |
$ |
681.4 |
|
$ |
728.2 |
| Less:
Current liabilities |
|
188.1 |
|
|
206.7 |
|
Working capital |
$ |
493.3 |
|
$ |
521.6 |
Reconciliation of Net Cash Generated from
Operating Activities to Cash Flow from Operating Activities Before
Changes in Working Capital:
|
Continuing operations |
Q1 2022 |
|
Q1 2021 |
|
Net cash generated from (used in) operating
activities (1,2) |
$ |
35.2 |
|
|
$ |
99.1 |
| Less:
Changes in non-cash working capital (3) |
|
(14.5 |
) |
|
|
18.0 |
|
Cash flow from operating activities before changes in
working capital |
$ |
49.7 |
|
|
$ |
81.2 |
(1) Q1 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.(2) The Brazil segment is presented as a discontinued
operation in 2021. See Note 17 of our condensed consolidated
interim financial statements. Amounts presented are from continuing
operations only.(3) Q1 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.
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 "ahead", “believes”, “continue”, “expects”, “focus”,
“guidance”, “intends”, "outlook", “plans”, "target" or the
negatives thereof or variations of such words and phrases or
statements that certain actions, events or results “can”, “could”,
"may", "might", “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 duration, extent and
other implications of production challenges and cost increases,
including those in respect of COVID-19 and restrictions and
suspensions with respect to the Company's operations; the Company’s
2022 annual guidance, including our individual mine production; the
Ormaque exploration drift; resource conversion drilling; the
optimization and development of Greek operations; the Company's
conference call to be held on April 29, 2022; our expectation as to
our future financial and operating performance; expected
metallurgical recoveries and improved concentrate grade and
quality; non-IFRS financial measures and ratios; risk factors
affecting our business; and our strategy, plans and goals,
including our proposed exploration, development, construction,
permitting, financing and operating potential, 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, 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 preliminary gold production and our guidance, benefits
of the completion of the decline at Lamaque, the improvements at
Kisladag and the optimization of Greek operations; tax expenses in
Turkey; how the world-wide economic and social impact of COVID-19
is managed and the duration and extent of the COVID-19 pandemic;
timing, cost and results of our construction and exploration; the
geopolitical, economic, permitting and legal climate that we
operate in; the future price of gold and other commodities; the
global concentrate market; exchange rates; anticipated values,
costs, expenses and working capital requirements; production and
metallurgical recoveries; mineral reserves and resources; and the
impact of acquisitions, dispositions, suspensions or delays on our
business and the ability to achieve our goals. In addition, 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:
inability to meet production guidance; inability to achieve the
expected benefits of the completion of the decline at Lamaque, the
improvements at Kisladag and the optimization of Greek operations;
inability to assess income tax expenses in Turkey; 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; 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 our
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 our 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 our 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
“Forward-looking information and risks” and “Risk factors in our
business” in our 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 & Form
40-F 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 our
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 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.
Qualified Person
Except as otherwise noted, Simon Hille, FAusIMM,
Vice President, Technical Services, is the Qualified Person under
NI 43-101 responsible for preparing and supervising the preparation
of the scientific or technical information contained in this press
release and verifying the technical data disclosed in this document
relating to our operating mines and development projects. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability. Inferred mineral resources are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves.
Eldorado Gold CorporationCondensed Consolidated
Interim Statements of Financial
Position As at March 31, 2022 and
December 31, 2021(Unaudited – in thousands of U.S. dollars)
| As at |
Note |
|
March 31, 2022 |
|
December 31, 2021 |
| |
|
|
|
|
|
| ASSETS |
|
|
|
|
|
| Current
assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
374,677 |
|
|
$ |
481,327 |
|
|
Term deposits |
|
|
|
60,000 |
|
|
|
— |
|
|
Accounts receivable and other |
5 |
|
|
61,031 |
|
|
|
68,745 |
|
|
Inventories |
6 |
|
|
185,707 |
|
|
|
178,163 |
|
| |
|
|
|
681,415 |
|
|
|
728,235 |
|
| Restricted cash |
|
|
|
2,201 |
|
|
|
2,674 |
|
| Other assets |
|
|
|
109,255 |
|
|
|
104,023 |
|
| Property, plant and
equipment |
|
|
|
3,625,931 |
|
|
|
4,003,211 |
|
| Goodwill |
|
|
|
92,591 |
|
|
|
92,591 |
|
| |
|
|
$ |
4,511,393 |
|
|
$ |
4,930,734 |
|
| LIABILITIES &
EQUITY |
|
|
|
|
|
| Current
liabilities |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
|
$ |
178,017 |
|
|
$ |
195,334 |
|
|
Current portion of lease liabilities |
|
|
|
5,973 |
|
|
|
7,228 |
|
|
Current portion of asset retirement obligations |
|
|
|
4,088 |
|
|
|
4,088 |
|
| |
|
|
|
188,078 |
|
|
|
206,650 |
|
| Debt |
7 |
|
|
482,770 |
|
|
|
489,763 |
|
| Lease liabilities |
|
|
|
14,151 |
|
|
|
14,895 |
|
| Employee benefit plan
obligations |
|
|
|
9,011 |
|
|
|
8,942 |
|
| Asset retirement
obligations |
|
|
|
131,615 |
|
|
|
131,367 |
|
| Deferred income tax
liabilities |
|
|
|
428,907 |
|
|
|
439,195 |
|
| |
|
|
|
1,254,532 |
|
|
|
1,290,812 |
|
| Equity |
|
|
|
|
|
| Share capital |
11 |
|
|
3,240,665 |
|
|
|
3,225,326 |
|
| Treasury stock |
|
|
|
(20,454 |
) |
|
|
(10,289 |
) |
| Contributed surplus |
|
|
|
2,610,136 |
|
|
|
2,615,459 |
|
| Accumulated other
comprehensive loss |
|
|
|
(19,773 |
) |
|
|
(20,905 |
) |
| Deficit |
|
|
|
(2,556,048 |
) |
|
|
(2,239,226 |
) |
| Total equity
attributable to shareholders of the Company |
|
|
|
3,254,526 |
|
|
|
3,570,365 |
|
| Attributable to
non-controlling interests |
|
|
|
2,335 |
|
|
|
69,557 |
|
| |
|
|
|
3,256,861 |
|
|
|
3,639,922 |
|
| |
|
|
$ |
4,511,393 |
|
|
$ |
4,930,734 |
|
Approved on behalf of the Board of
Directors
|
(signed) John Webster |
Director |
(signed)
George Burns |
Director |
|
Date of
approval: April 28, 2022
Eldorado Gold CorporationCondensed Consolidated
Interim Statements of
Operations
For the
three months ended March 31, 2022 and 2021(Unaudited – in thousands
of U.S. dollars except share and per share amounts)
| |
Note |
|
Three months ended March 31, 2022 |
|
Three months ended March 31, 2021 |
| |
|
|
|
|
|
| Revenue |
|
|
|
|
|
|
Metal sales |
8 |
|
$ |
194,672 |
|
|
$ |
224,619 |
|
| |
|
|
|
|
|
| Cost of
sales |
|
|
|
|
|
|
Production costs |
|
|
|
104,556 |
|
|
|
108,560 |
|
|
Depreciation and amortization |
|
|
|
50,635 |
|
|
|
52,486 |
|
| |
|
|
|
155,191 |
|
|
|
161,046 |
|
| |
|
|
|
|
|
| Earnings from mine
operations |
|
|
|
39,481 |
|
|
|
63,573 |
|
| |
|
|
|
|
|
| Exploration and evaluation
expenses |
|
|
|
5,861 |
|
|
|
4,008 |
|
| Mine standby costs |
9 |
|
|
11,708 |
|
|
|
1,611 |
|
| General and administrative
expenses |
|
|
|
8,291 |
|
|
|
10,140 |
|
| Employee benefit plan
expense |
|
|
|
1,841 |
|
|
|
749 |
|
| Share-based payments
expense |
12 |
|
|
3,650 |
|
|
|
1,781 |
|
| Impairment of property, plant,
and equipment |
4 |
|
|
365,426 |
|
|
|
— |
|
| Write-down (recovery) of
assets |
|
|
|
24,141 |
|
|
|
(750 |
) |
| Foreign exchange gain |
|
|
|
(2,720 |
) |
|
|
(6,080 |
) |
| (Loss) earnings from
operations |
|
|
|
(378,717 |
) |
|
|
52,114 |
|
| |
|
|
|
|
|
| Other income |
10 |
|
|
1,743 |
|
|
|
1,299 |
|
| Finance costs |
10 |
|
|
(2,166 |
) |
|
|
(10,335 |
) |
| (Loss) earnings from
continuing operations before income tax |
|
|
|
(379,140 |
) |
|
|
43,078 |
|
| Income tax expense |
|
|
|
5,074 |
|
|
|
26,838 |
|
| Net (loss) earnings
from continuing operations |
|
|
|
(384,214 |
) |
|
|
16,240 |
|
| Net loss from
discontinued operations, net of tax |
|
|
|
— |
|
|
|
(2,394 |
) |
| Net (loss) earnings
for the period |
|
|
$ |
(384,214 |
) |
|
$ |
13,846 |
|
| |
|
|
|
|
|
| Attributable
to: |
|
|
|
|
|
| Shareholders of the
Company |
|
|
|
(316,822 |
) |
|
|
11,941 |
|
| Non-controlling interests |
|
|
|
(67,392 |
) |
|
|
1,905 |
|
| Net (loss) earnings
for the period |
|
|
$ |
(384,214 |
) |
|
$ |
13,846 |
|
| |
|
|
|
|
|
| (Loss) earnings
attributable to shareholders of the Company: |
|
|
|
|
|
| Continuing operations |
|
|
|
(316,822 |
) |
|
|
14,335 |
|
| Discontinued operations |
|
|
|
— |
|
|
|
(2,394 |
) |
| |
|
|
$ |
(316,822 |
) |
|
$ |
11,941 |
|
| Weighted average number of
shares outstanding (thousands) |
|
|
|
|
|
| Basic |
|
|
|
182,362 |
|
|
|
174,534 |
|
| Diluted |
|
|
|
182,362 |
|
|
|
177,234 |
|
| |
|
|
|
|
|
| Net (loss) earnings
per share attributable to shareholders of the
Company: |
|
|
|
|
|
| Basic (loss) earnings per
share |
|
|
$ |
(1.74 |
) |
|
$ |
0.07 |
|
| Diluted (loss) earnings per
share |
|
|
$ |
(1.74 |
) |
|
$ |
0.07 |
|
| |
|
|
|
|
|
| Net (loss) earnings
per share attributable to shareholders of the Company - Continuing
operations |
|
|
|
|
|
| Basic (loss) earnings per
share |
|
|
$ |
(1.74 |
) |
|
$ |
0.08 |
|
| Diluted (loss) earnings per
share |
|
|
$ |
(1.74 |
) |
|
$ |
0.08 |
|
Eldorado Gold CorporationCondensed Consolidated
Interim Statements of Comprehensive Income (Loss)For the three
months ended March 31, 2022 and 2021(Unaudited – in thousands of
U.S. dollars)
| |
|
|
Three months ended March 31, 2022 |
|
Three months ended March 31, 2021 |
| |
|
|
|
|
|
| |
|
|
|
|
|
|
Net (loss) earnings for the period |
|
|
$ |
(384,214 |
) |
|
$ |
13,846 |
|
| Other comprehensive
(loss) income: |
|
|
|
|
|
| Items that will not be
reclassified to earnings or loss: |
|
|
|
|
|
|
Change in fair value of investments in marketable securities, net
of tax |
|
|
|
2,049 |
|
|
|
(125 |
) |
|
Actuarial losses on employee benefit plans, net of tax |
|
|
|
(917 |
) |
|
|
(34 |
) |
| Total other
comprehensive earnings (loss) for the period |
|
|
|
1,132 |
|
|
|
(159 |
) |
| Total comprehensive
(loss) income for the period |
|
|
$ |
(383,082 |
) |
|
$ |
13,687 |
|
| |
|
|
|
|
|
| Attributable
to: |
|
|
|
|
|
| Shareholders of the
Company |
|
|
|
(315,690 |
) |
|
|
11,782 |
|
| Non-controlling interests |
|
|
|
(67,392 |
) |
|
|
1,905 |
|
| |
|
|
$ |
(383,082 |
) |
|
$ |
13,687 |
|
Eldorado Gold CorporationCondensed Consolidated
Interim Statements of Cash
Flows
For the three months ended March 31, 2022 and 2021(Unaudited – in
thousands of U.S. dollars)
| |
Note |
|
Three months ended March 31, 2022 |
|
Three months ended March 31, 2021 |
| |
|
|
|
|
|
| Cash flows generated from
(used in): |
|
|
|
|
|
| Operating
activities |
|
|
|
|
|
|
Net (loss) earnings for the period from continuing operations |
|
|
$ |
(384,214 |
) |
|
$ |
16,240 |
|
| Adjustments for: |
|
|
|
|
|
| Depreciation and
amortization |
|
|
|
51,226 |
|
|
|
53,063 |
|
| Finance costs |
|
|
|
2,166 |
|
|
|
10,338 |
|
| Interest income |
|
|
|
(475 |
) |
|
|
(302 |
) |
| Unrealized foreign exchange
gain |
|
|
|
(484 |
) |
|
|
(2,364 |
) |
| Income tax expense |
|
|
|
5,074 |
|
|
|
26,838 |
|
| (Gain) loss on disposal of
assets |
|
|
|
(582 |
) |
|
|
324 |
|
| Impairment of property, plant,
and equipment |
|
|
|
365,426 |
|
|
|
— |
|
| Write-down (recovery) of
assets |
|
|
|
24,141 |
|
|
|
(750 |
) |
| Share-based payments
expense |
12 |
|
|
3,650 |
|
|
|
1,781 |
|
| Employee benefit plan
expense |
|
|
|
1,841 |
|
|
|
749 |
|
| |
|
|
|
67,769 |
|
|
|
105,917 |
|
| Property reclamation
payments |
|
|
|
(312 |
) |
|
|
(335 |
) |
| Employee benefit plan
payments |
|
|
|
(2,250 |
) |
|
|
(232 |
) |
| Income taxes paid |
|
|
|
(15,939 |
) |
|
|
(24,496 |
) |
| Interest received |
|
|
|
475 |
|
|
|
302 |
|
| Changes in non-cash working
capital |
13 |
|
|
(14,499 |
) |
|
|
17,970 |
|
| Net cash generated
from operating activities of continuing operations |
|
|
|
35,244 |
|
|
|
99,126 |
|
| Net cash used in
operating activities of discontinued operations |
|
|
|
— |
|
|
|
(6,051 |
) |
| |
|
|
|
|
|
| Investing
activities |
|
|
|
|
|
| Purchase of property, plant
and equipment |
|
|
|
(51,996 |
) |
|
|
(63,991 |
) |
| Proceeds from the sale of
property, plant and equipment |
|
|
|
1,076 |
|
|
|
792 |
|
| Value added taxes related to
mineral property expenditures, net |
|
|
|
(11,133 |
) |
|
|
(2,568 |
) |
| (Increase) decrease in term
deposits |
|
|
|
(60,000 |
) |
|
|
56,130 |
|
| Increase in restricted
cash |
|
|
|
— |
|
|
|
(73 |
) |
| Net cash used in
investing activities of continuing operations |
|
|
|
(122,053 |
) |
|
|
(9,710 |
) |
| Net cash used in
investing activities of discontinued operations |
|
|
|
— |
|
|
|
(507 |
) |
| |
|
|
|
|
|
| Financing
activities |
|
|
|
|
|
| Issuance of common shares, net
of issuance costs |
|
|
|
13,118 |
|
|
|
11,834 |
|
| Contributions from
non-controlling interests |
|
|
|
170 |
|
|
|
324 |
|
| Repayments of borrowings |
|
|
|
— |
|
|
|
(11,100 |
) |
| Interest paid |
|
|
|
(16,888 |
) |
|
|
(2,205 |
) |
| Principal portion of lease
liabilities |
|
|
|
(2,272 |
) |
|
|
(2,758 |
) |
| Purchase of treasury
stock |
|
|
|
(13,969 |
) |
|
|
— |
|
| Net cash used in
financing activities of continuing operations |
|
|
|
(19,841 |
) |
|
|
(3,905 |
) |
| Net cash used in
financing activities of discontinued operations |
|
|
|
— |
|
|
|
(12 |
) |
| |
|
|
|
|
|
| Net (decrease)
increase in cash and cash equivalents |
|
|
|
(106,650 |
) |
|
|
78,941 |
|
| Cash and cash
equivalents - beginning of period |
|
|
|
481,327 |
|
|
|
451,962 |
|
| Cash and cash
equivalents - end of period |
|
|
$ |
374,677 |
|
|
$ |
530,903 |
|
Eldorado Gold CorporationCondensed Consolidated
Interim Statements of Changes in
Equity
For the three months ended March 31, 2022 and 2021(Unaudited – in
thousands of U.S. dollars)
| |
Note |
|
Three months ended March 31, 2022 |
|
Three months ended March 31, 2021 |
| |
|
|
|
|
|
| Share
capital |
|
|
|
|
|
|
Balance beginning of period |
|
|
$ |
3,225,326 |
|
|
$ |
3,144,644 |
|
|
Shares issued upon exercise of share options |
|
|
|
3,872 |
|
|
|
717 |
|
|
Shares issued upon exercise of performance share units |
|
|
|
2,256 |
|
|
|
— |
|
|
Transfer of contributed surplus on exercise of options |
|
|
|
1,563 |
|
|
|
285 |
|
|
Shares issued to the public, net of share issuance costs |
|
|
|
7,648 |
|
|
|
11,471 |
|
|
Share issued on acquisition of QMX Gold Corporation |
|
|
|
— |
|
|
|
— |
|
| Balance end of period |
11 |
|
$ |
3,240,665 |
|
|
$ |
3,157,117 |
|
| |
|
|
|
|
|
| Treasury
stock |
|
|
|
|
|
| Balance beginning of
period |
|
|
$ |
(10,289 |
) |
|
$ |
(11,452 |
) |
|
Purchase of treasury stock |
|
|
|
(13,969 |
) |
|
|
— |
|
|
Shares redeemed upon exercise of restricted share units |
|
|
|
3,804 |
|
|
|
573 |
|
| Balance end of period |
|
|
$ |
(20,454 |
) |
|
$ |
(10,879 |
) |
| |
|
|
|
|
|
| Contributed
surplus |
|
|
|
|
|
| Balance beginning of
period |
|
|
$ |
2,615,459 |
|
|
$ |
2,638,008 |
|
|
Share-based payments arrangements |
|
|
|
2,300 |
|
|
|
1,917 |
|
|
Shares redeemed upon exercise of restricted share units |
|
|
|
(3,804 |
) |
|
|
(573 |
) |
|
Shares redeemed upon exercise of performance share units |
|
|
|
(2,256 |
) |
|
|
— |
|
| Transfer to share capital on
exercise of options |
|
|
|
(1,563 |
) |
|
|
(285 |
) |
| Balance end of period |
|
|
$ |
2,610,136 |
|
|
$ |
2,639,067 |
|
| |
|
|
|
|
|
| Accumulated other
comprehensive loss |
|
|
|
|
|
| Balance beginning of
period |
|
|
$ |
(20,905 |
) |
|
$ |
(21,822 |
) |
|
Other comprehensive earnings (loss) for the period attributable to
shareholders of the Company |
|
|
|
1,132 |
|
|
|
(159 |
) |
| Balance end of period |
|
|
$ |
(19,773 |
) |
|
$ |
(21,981 |
) |
| |
|
|
|
|
|
| Deficit |
|
|
|
|
|
| Balance beginning of
period |
|
|
$ |
(2,239,226 |
) |
|
$ |
(2,103,206 |
) |
|
Net (loss) earnings attributable to shareholders of the
Company |
|
|
|
(316,822 |
) |
|
|
11,941 |
|
| Balance end of period |
|
|
$ |
(2,556,048 |
) |
|
$ |
(2,091,265 |
) |
| Total equity
attributable to shareholders of the Company |
|
|
$ |
3,254,526 |
|
|
$ |
3,672,059 |
|
| |
|
|
|
|
|
| Non-controlling
interests |
|
|
|
|
|
| Balance beginning of
period |
|
|
$ |
69,557 |
|
|
$ |
40,873 |
|
|
(Loss) earnings attributable to non-controlling interests |
|
|
|
(67,392 |
) |
|
|
1,905 |
|
|
Contributions from non-controlling interests |
|
|
|
170 |
|
|
|
324 |
|
| Balance end of period |
|
|
$ |
2,335 |
|
|
$ |
43,102 |
|
| Total
equity |
|
|
$ |
3,256,861 |
|
|
$ |
3,715,161 |
|
Please see the Condensed Consolidated Interim Financial
Statements dated March 31, 2022 for notes to the accounts.
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