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, 2019. 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.
Year-End Financial and Operating Results
Overview
- 2019 Production on plan, highest total production in
three years: Annual gold production of 395,331 ounces of
gold (2018: 349,147 ounces), including pre-commercial
production.
- Steady operating costs: Cash operating costs
were $608 per ounce of gold sold for 2019 and All-in Sustaining
Costs (AISC) were $1,034 per ounce of gold sold, compared to $625
per ounce of gold sold and $994 per ounce of gold sold for
2018.
- 2020 production guidance increased
year-on-year: 2020 guidance is 520,000-550,000 ounces of
gold, an increase over the 390,000-420,000 ounces of gold forecast
for 2019.
- Kisladag mine life extended to 15 years:
Results from the ongoing testwork indicate that extended leach
cycles and the addition of a high pressure grinding roll circuit
should increase the expected recovery at Kisladag to approximately
56%, resulting in the mine life at Kisladag now projected through
2034 at an average production of 160,000 ounces of gold per year.
Further details on Kisladag are included in Eldorado’s February 20,
2020 press release.
- Successful first year of operations at
Lamaque: Eldorado declared commercial production at
Lamaque on March 31, 2019. Lamaque produced 113,940 ounces of gold
(including pre-commercial production) in 2019. Recent drilling
results at Triangle and Ormaque will be incorporated into the mine
plan by the Company as it evaluates its next steps in expanding
production at Lamaque.
- Refinancing completed: In June 2019 the
Company completed its offering of $300 million aggregate
principal amount of 9.5% senior second lien notes due 2024 (the
"Notes") and its $450 million amended and restated senior secured
credit facility (the "Facility"). Eldorado used the net proceeds
from the sale of the Notes and $200 million in term loan proceeds
drawn under the Facility, together with $100 million cash on hand,
to redeem its outstanding $600 million 6.125% senior notes due
December 2020.
- Permits for Skouries and Olympias received:
Permits allow for, among other things, installation of electrical
and mechanical equipment at Skouries and Olympias, the installation
of the Skouries mill building, and consent from the Central
Archaeological Council to relocate an ancient mining furnace from
the Skouries open pit area.
- Significant increased cash flow provided from
operations: Net cash provided by operating activities was
$165.8 million in 2019 (2018: $67.5 million).
- Net earnings attributable to shareholders:
2019 net earnings attributable to shareholders of the Company were
$80.6 million or $0.51 per share, mainly attributable to net
impairment reversals of $96.9 million ($79.9 million net of
deferred income tax) for Kisladag and Vila Nova. Net loss
attributable to shareholders of the Company was $361.9 million or
$2.28 loss per share in 2018, mainly attributable to impairment
charges of $447.8 million ($328.4 million net of deferred income
tax), of which $117.6 million ($94.1 million net of deferred income
tax) related to Kisladag. Adjusted net earnings attributable
to shareholders of the Company in 2019 was $5.6 million, or $0.04
per share (2018: Adjusted net loss attributed to shareholders of
the Company of $28.6 million, or $0.17 loss per share).
- Increased EBITDA: EBITDA for the year was
$311.3 million ($361.8 million loss in 2018) and adjusted EBITDA
for the year was $235.6 million ($99.6 million in 2018).
Adjustments in both years included, among other things,
removal of the non-cash impact of impairments and impairment
reversals.
- Liquidity strengthened: The Company finished
the year with approximately $366 million of liquidity including
$181 million in cash, cash equivalents and term deposits and
approximately $185 million available under the remaining $250
million of the Facility, with $65 million of the capacity on the
Facility allocated to secure certain reclamation obligations in
connection with its operations.
Fourth Quarter 2019
Highlights
- Increased production: Eldorado produced
118,955 ounces of gold in Q4, the highest quarterly gold production
in nearly four years.
- Operating costs decreasing: Q4 2019 cash
operating costs of $621 per ounce sold and all-in sustaining costs
of $1,110 per ounce sold were lower than Q4 2018 ($626 per ounce
sold and $1,200 per ounce sold, respectively, for 2018).
- Kisladag impairment reversal: As a result of
the mine life extension and continuation of heap leaching, a net
impairment reversal of $85.2 million ($68.2 million, net of
deferred income tax) was recorded in Q4 2019.
- Net earnings attributable to shareholders: Q4
2019 net earnings attributable to shareholders of the Company was
$91.2 million or $0.57 per share, mainly attributable to a net
impairment reversal of $85.2 million ($68.2 million net of deferred
income tax) for Kisladag. Net loss attributable to shareholders of
the Company in Q4 2018 was $218.2 million or $1.38 loss per share.
Adjusted net earnings attributable to shareholders of the Company
in Q4 2019 was $20.3 million, or $0.13 per share (Q4 2018: adjusted
net loss attributable to shareholders of the Company of $18.9
million, or $0.11 loss per share).
- Increased EBITDA: Q4 2019 EBITDA was $158.7
million ($327.9 million loss in Q4 2018) and Q4 2019 adjusted
EBITDA was $80.3 million ($9.0 million in Q4 2018).
Adjustments in both years included, among other things,
removal of the non-cash impact of impairments and impairment
reversals.
- Updated reserves: As of September 30,
2019, total proven and probable reserves of 384 million tonnes at
1.32 grams per tonne gold containing 16.4 million ounces were
reported.
Eldorado's President and CEO, George Burns,
said: “2019 was a pivotal year for the Company, as we achieved
multiple, significant milestones. Production in the year was strong
as we delivered our highest annual production in three years - over
394,000 ounces of gold - while maintaining steady discipline with
operating costs. Importantly, in 2020 we expect production to grow
again to between 520,000 and 550,000 ounces of gold. We are very
pleased to have positive momentum behind our production profile and
expect that the resulting increased cash flow will allow the
Company to both invest in its growth opportunities and pay down its
debt.”
"Other milestones achieved in the year include
successfully putting Lamaque into commercial operation, completing
the refinancing of our balance sheet, and clarifying a strong path
forward for Kisladag as a core, producing asset. We also received
long-awaited permits at Olympias and Skouries, as we continue
engaging with the Greek government to set a path forward for
Skouries, a world-class project that stands to create jobs, tax and
export revenues, and economic opportunities for local communities.
Together and individually, these achievements represent significant
catalysts for Eldorado’s long-term, sustainable growth.”
Consolidated Financial and Operational
Highlights
Summarized Annual Financial Results
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
Revenue (1) |
$ |
617.8 |
|
$ |
459.0 |
|
$ |
391.4 |
|
Gold revenue (1) |
$ |
530.9 |
|
$ |
386.0 |
|
$ |
333.3 |
|
Gold produced (oz) (2) |
|
395,331 |
|
|
349,147 |
|
|
292,971 |
|
Gold sold (oz) (1) |
|
374,902 |
|
|
304,256 |
|
|
264,080 |
|
Average realized gold price ($/oz sold) (6) |
$ |
1,416 |
|
$ |
1,269 |
|
$ |
1,262 |
|
Cash operating costs ($/oz sold) (3,6) |
|
608 |
|
|
625 |
|
|
509 |
|
Total cash costs ($/oz sold) (3,6) |
|
645 |
|
|
650 |
|
|
534 |
|
All-in sustaining costs ($/oz sold) (3,6) |
|
1,034 |
|
|
994 |
|
|
922 |
|
Net earnings (loss) for the period (4) |
|
80.6 |
|
|
(361.9 |
) |
|
(9.9 |
) |
Net earnings (loss) per share – basic ($/share) (4) |
|
0.51 |
|
|
(2.28 |
) |
|
(0.07 |
) |
Adjusted net earnings (loss) (4,5,6) |
|
5.6 |
|
|
(28.6 |
) |
|
15.2 |
|
Adjusted net earnings (loss) per share ($/share) (4,5,6) |
|
0.04 |
|
|
(0.17 |
) |
|
0.10 |
|
Cash flow from operating activities before changes in working
capital (6,7) |
|
150.6 |
|
|
61.1 |
|
|
67.7 |
|
Cash, cash equivalents and term deposits |
|
181.0 |
|
|
293.0 |
|
|
485.0 |
|
- Excludes sales of inventory mined at Lamaque and Olympias
during the pre-commercial production
periods.
- Includes pre-commercial production at Lamaque (2018, Q1 2019)
and at Olympias (2017, Q1 2018).
- By-product revenues are off-set against cash operating
costs.
- Attributable to shareholders of the Company. Net earnings
(loss) includes a $79.9 million impairment reversal (net of
deferred income tax) in 2019 for Kisladag and Vila Nova and a
$328.4 million impairment charge (net of deferred income tax) in
2018 for Olympias and Kisladag.
- See reconciliation of net earnings (loss) to adjusted net
earnings (loss) in the MD&A section 'Non-IFRS Measures'.
- These measures are non-IFRS measures. See the MD&A section
'Non-IFRS Measures' for explanations and discussion of these
non-IFRS measures.
- 2018 and 2017 amounts have been adjusted to reflect
reclassifications in cash flow from operating activities in the
current period.
Summarized Quarterly Financial Results
2019 |
Q1 |
Q2 |
Q3 |
Q4 |
|
2019 |
Revenue (1) |
$ |
80.0 |
|
$ |
173.7 |
|
$ |
172.3 |
|
$ |
191.9 |
|
$ |
617.8 |
|
Gold revenue (1) |
$ |
54.5 |
|
$ |
150.1 |
|
$ |
150.2 |
|
$ |
176.1 |
|
$ |
530.9 |
|
Gold produced (oz) (2) |
|
82,977 |
|
|
91,803 |
|
|
101,596 |
|
|
118,955 |
|
|
395,331 |
|
Gold sold (oz) (1) |
|
43,074 |
|
|
113,685 |
|
|
99,241 |
|
|
118,902 |
|
|
374,902 |
|
Average realized gold price ($/oz sold) (6) |
$ |
1,265 |
|
$ |
1,321 |
|
$ |
1,513 |
|
$ |
1,475 |
|
$ |
1,416 |
|
Cash operating cost ($/oz sold) (3,6) |
|
625 |
|
|
631 |
|
|
560 |
|
|
621 |
|
|
608 |
|
Total cash cost ($/oz sold) (3,6) |
|
652 |
|
|
670 |
|
|
603 |
|
|
652 |
|
|
645 |
|
All-in sustaining cost ($/oz sold) (3,6) |
|
1,132 |
|
|
917 |
|
|
1,031 |
|
|
1,110 |
|
|
1,034 |
|
Net earnings (loss) (4,5) |
|
(27.0 |
) |
|
12.2 |
|
|
4.2 |
|
|
91.2 |
|
|
80.6 |
|
Net earnings (loss) per share – basic ($/share) (4) |
|
(0.17 |
) |
|
0.08 |
|
|
0.03 |
|
|
0.57 |
|
|
0.51 |
|
Adjusted net earnings (loss) (4,5,6) |
|
(17.9 |
) |
|
(4.3 |
) |
|
7.5 |
|
|
20.3 |
|
|
5.6 |
|
Adjusted net earnings (loss) per share ($/share) (4,5,6) |
|
(0.11 |
) |
|
(0.03 |
) |
|
0.05 |
|
|
0.13 |
|
|
0.04 |
|
Cash flow from operating activities before changes in working
capital (6,7) |
|
8.1 |
|
|
37.5 |
|
|
62.9 |
|
|
42.0 |
|
|
150.6 |
|
Cash, cash equivalents and term deposits |
$ |
227.5 |
|
$ |
119.9 |
|
$ |
134.9 |
|
$ |
181.0 |
|
$ |
181.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
Q1 |
Q2 |
Q3 |
Q4 |
|
2018 |
Revenue (1) |
$ |
131.9 |
|
$ |
153.2 |
|
$ |
81.1 |
|
$ |
92.8 |
|
$ |
459.0 |
|
Gold revenue (1) |
$ |
115.4 |
|
$ |
121.3 |
|
$ |
76.0 |
|
$ |
73.3 |
|
$ |
386.0 |
|
Gold produced (oz) (2) |
|
89,372 |
|
|
99,105 |
|
|
84,783 |
|
|
75,887 |
|
|
349,147 |
|
Gold sold (oz) (1) |
|
86,587 |
|
|
94,224 |
|
|
64,589 |
|
|
58,856 |
|
|
304,256 |
|
Average realized gold price ($/oz sold) (6) |
$ |
1,333 |
|
$ |
1,287 |
|
$ |
1,177 |
|
$ |
1,245 |
|
$ |
1,269 |
|
Cash operating cost ($/oz sold) (3,6) |
|
571 |
|
|
587 |
|
|
754 |
|
|
626 |
|
|
625 |
|
Total cash cost ($/oz sold) (3,6) |
|
598 |
|
|
610 |
|
|
762 |
|
|
666 |
|
|
650 |
|
All-in sustaining cost ($/oz sold) (3,6) |
|
878 |
|
|
934 |
|
|
1,112 |
|
|
1,200 |
|
|
994 |
|
Net earnings (loss) (4,5) |
|
8.7 |
|
|
(24.4 |
) |
|
(128.0 |
) |
|
(218.2 |
) |
|
(361.9 |
) |
Net earnings (loss) per share – basic ($/share) (4) |
|
0.06 |
|
(0.15 |
) |
|
(0.81 |
) |
|
(1.38 |
) |
|
(2.28 |
) |
Adjusted net earnings (loss) (4,5,6) |
|
14.0 |
|
|
(1.8 |
) |
|
(21.9 |
) |
|
(18.9 |
) |
|
(28.6 |
) |
Adjusted net earnings (loss) per share ($/share) (4,5,6) |
|
0.09 |
|
|
(0.01 |
) |
|
(0.14 |
) |
|
(0.11 |
) |
|
(0.17 |
) |
Cash flow from operating activities before changes in working
capital (6,7) |
|
35.8 |
|
|
26.3 |
|
|
(1.7 |
) |
|
0.8 |
|
|
61.1 |
|
Cash, cash equivalents and term deposits |
$ |
459.7 |
|
$ |
429.8 |
|
$ |
385.0 |
|
$ |
293.0 |
|
$ |
293.0 |
|
- Excludes sales of inventory mined at Lamaque and Olympias
during the pre-commercial production
periods.
- Includes pre-commercial production at Lamaque (2018, Q1 2019)
and at Olympias (Q1 2018 only).
- By-product revenues are off-set against cash operating
costs.
- Attributable to shareholders of the Company.
- See reconciliation of net earnings (loss) to adjusted net
earnings (loss) in the MD&A section 'Non-IFRS Measures'. Q2
2019 amounts have been updated for the inventory write-down
adjustment in that period.
- These measures are non-IFRS measures. See the MD&A section
'Non-IFRS Measures' for explanations and discussion of these
non-IFRS measures.
- 2018 and Q1 2019 amounts have been adjusted to reflect
reclassifications in cash flow from operating activities in later
periods.
Gold sales of 374,902 ounces in 2019 increased
from 304,256 ounces in 2018 primarily due to the sale of 86,745
ounces from Lamaque in its first year of commercial operations.
Lamaque declared commercial production on March 31, 2019.
Total revenues increased to $617.8 million in
2019 from $459.0 million in 2018 as a result of higher sales
volumes and a higher average realized gold price of $1,416 per
ounce compared to $1,269 per ounce in 2018.
Cash operating costs per ounce sold decreased to
$608 in 2019 from $625 in 2018, primarily due to the ramp-up of
mining, crushing and placement of ore on the Kisladag heap leach
pad beginning in April 2019, and the partial allocation of
processing costs to gold inventory in the heap leach pad. This was
partially offset by higher cash operating costs per ounce sold at
Olympias as a result of lower production levels and at both
Olympias and Efemcukuru as a result of increased concentrate
transportation costs and treatment charges.
Net earnings attributable to shareholders in
2019 of $80.6 million ($0.51 per share) improved from a net loss
attributable to shareholders of $361.9 million ($2.28 loss per
share) in 2018. The improvement was primarily a result of higher
sales volumes in 2019 and net impairment reversals of $96.9 million
($79.9 million net of deferred income tax) for Kisladag and Vila
Nova, compared to impairment of $447.8 million ($328.4 million net
of deferred income tax) in 2018 relating to Olympias and Kisladag.
Net earnings attributable to shareholders in Q4 2019 was $91.2
million or $0.57 per share, mainly attributable to a net impairment
reversal of $85.2 million ($68.2 million net of deferred income
tax) for Kisladag in the fourth quarter.
Higher sales volumes in 2019 resulted in EBITDA
of $311.3 million, including $158.7 million in Q4 2019. Adjusted
EBITDA of $235.6 million in 2019 and $80.3 million in Q4 2019
exclude, among other things, the impact of the net impairment
reversal.
Adjusted net earnings in 2019 were $5.6 million
($0.04 per share) compared to adjusted net loss of $28.6 million
($0.17 loss per share) in 2018. Higher sales volumes in Q4 2019
resulted in adjusted net earnings in Q4 2019 of $20.3 million
($0.13 per share) compared to adjusted net loss in Q4 2018 of $18.9
million ($0.11 loss per share). Adjustments in all periods
primarily remove the impact of impairment and impairment
reversals.
Operations Update and Outlook
Gold Operations
|
3 months ended December 31, |
12 months ended December 31, |
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
2020 Outlook |
Total |
|
|
|
|
|
Ounces produced (1) |
|
118,955 |
|
|
75,887 |
|
|
395,331 |
|
|
349,147 |
|
520,000 – 550,000 |
Ounces sold (2) |
|
118,902 |
|
|
58,856 |
|
|
374,902 |
|
|
304,256 |
|
n/a |
Cash operating costs ($/oz sold) (4) |
$ |
621 |
|
$ |
626 |
|
$ |
608 |
|
$ |
625 |
|
$550 – 600 |
All-in sustaining costs ($/oz sold) (4) |
$ |
1,110 |
|
$ |
1,200 |
|
$ |
1,034 |
|
$ |
994 |
|
$850 – 950 |
Sustaining capex (4) |
$ |
41.1 |
|
$ |
17.2 |
|
$ |
97.4 |
|
$ |
54.4 |
|
$105 – 125 |
Kisladag |
|
|
|
|
|
Ounces produced (3) |
|
51,010 |
|
|
28,196 |
|
|
140,214 |
|
|
172,009 |
|
240,000 – 260,000 |
Ounces sold |
|
49,529 |
|
|
28,202 |
|
|
138,737 |
|
|
171,741 |
|
n/a |
Cash operating costs ($/oz sold) (4) |
$ |
421 |
|
$ |
547 |
|
$ |
435 |
|
$ |
662 |
|
$450 – 500 |
All-in sustaining costs ($/oz sold) (4) |
$ |
616 |
|
$ |
770 |
|
$ |
593 |
|
$ |
812 |
|
n/a |
Sustaining capex (4) |
$ |
6.7 |
|
$ |
4.2 |
|
$ |
14.7 |
|
$ |
17.8 |
|
$25 – 30 |
Lamaque |
|
|
|
|
|
Ounces produced (1) |
|
29,085 |
|
|
16,046 |
|
|
113,940 |
|
|
35,350 |
|
125,000 – 135,000 |
Ounces sold (2) |
|
31,293 |
|
n/a |
|
86,745 |
|
n/a |
n/a |
Cash operating costs ($/oz sold) (4) |
$ |
663 |
|
n/a |
$ |
556 |
|
n/a |
$575 – 625 |
All-in sustaining costs ($/oz sold) (4) |
$ |
1,273 |
|
n/a |
$ |
1,078 |
|
n/a |
n/a |
Sustaining capex (4) |
$ |
17.0 |
|
n/a |
$ |
38.2 |
|
n/a |
$35 – 40 |
Efemcukuru |
|
|
|
|
|
Ounces produced |
|
26,243 |
|
|
23,544 |
|
|
103,767 |
|
|
95,038 |
|
90,000 – 100,000 |
Ounces sold |
|
25,530 |
|
|
23,528 |
|
|
105,752 |
|
|
97,485 |
|
n/a |
Cash operating costs ($/oz sold) (4) |
$ |
608 |
|
$ |
535 |
|
$ |
599 |
|
$ |
511 |
|
$650 – 700 |
All-in sustaining costs ($/oz sold) (4) |
$ |
1,122 |
|
$ |
1,041 |
|
$ |
923 |
|
$ |
834 |
|
n/a |
Sustaining capex (4) |
$ |
10.2 |
|
$ |
9.1 |
|
$ |
24.5 |
|
$ |
24.4 |
|
$15 – 20 |
Olympias |
|
|
|
|
|
Ounces produced (1) |
|
12,617 |
|
|
8,101 |
|
|
37,410 |
|
|
46,750 |
|
50,000 – 60,000 |
Ounces sold (2) |
|
12,550 |
|
|
7,126 |
|
|
43,668 |
|
|
35,030 |
|
n/a |
Cash operating costs ($/oz sold) |
$ |
1,331 |
|
$ |
1,237 |
|
$ |
1,286 |
|
$ |
764 |
|
$800 – 900 |
All-in sustaining costs ($/oz sold) |
$ |
1,986 |
|
$ |
2,038 |
|
$ |
1,837 |
|
$ |
1,297 |
|
n/a |
Sustaining capex |
$ |
7.2 |
|
$ |
3.9 |
|
$ |
20.1 |
|
$ |
12.2 |
|
$30 – 35 |
- Includes pre-commercial production at Lamaque (2018, Q1 2019)
and at Olympias (Q1 2018 only).
- Excludes sales of inventory produced at Lamaque (2018, Q1 2019)
and at Olympias (Q1 2018 only) during the pre-commercial production
period. During the year ended December 31, 2019, 27,627 ounces were
sold from inventory produced during the pre-commercial production
period at Lamaque.
- Kisladag resumed mining, crushing and placing ore on the heap
leach pad on April 1, 2019. This activity had been suspended since
April 2018.
- These measures are non-IFRS measures. See the MD&A section
'Non-IFRS Measures' for explanations and discussion of these
non-IFRS measures.
Gold production of 395,331 ounces in 2019
increased from 349,147 ounces in 2018, primarily due to
113,940 ounces produced at Lamaque in its first year of
commercial operations. This was partially offset by decreases in
production at Kisladag as a result of the suspension of mining in
the first quarter of 2019 and at Olympias as a result of reduced
tonnage fed to the processing plant.
For further information on the Company’s
operating results for the year-end and fourth quarter of 2019,
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 2019 Results will be held by senior management
on Friday, February 21, 2020 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/eldoradogold20200221.html
Conference
Call Details |
|
Replay
(available) |
|
Date: |
February 21, 2020 |
|
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 |
|
Pass code: |
3980 |
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, Romania and Brazil. 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 RelationsPeter Lekich,
Manager Investor Relations604.687.4018 or
1.888.353.8166 peter.lekich@eldoradogold.com
MediaLouise Burgess, Director
Communications & Government Relations604.687.4018 or
1.888.353.8166 louise.burgess@eldoradogold.com
Non-IFRS Measures
Certain non-IFRS measures 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 and depreciation
and amortization ("EBITDA") and adjusted earnings before interest,
taxes and depreciation and amortization ("Adjusted EBITDA") working
capital and cash flow from operations before changes in working
capital. Please see the December 31, 2019 MD&A for
explanations and discussion of these non-IFRS measures. The Company
believes that these measures, in addition to conventional measures
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
measures are intended to provide additional information and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. These measures do not
have any standardized meaning prescribed under IFRS, and therefore
may not be comparable to other issuers.
Cautionary Note about Forward-looking Statements and
Information
Certain of the statements made and information
provided in this press release are forward-looking statements or
information within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and applicable Canadian
securities laws. Often, these forward-looking statements and
forward-looking information can be identified by the use of words
such as "plans", "expects", "is expected", "budget", “continue”,
“projected”, "scheduled", "estimates", "forecasts", "intends",
"anticipates", or "believes" or the negatives thereof or variations
of such words and phrases or statements that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved.
Forward-looking statements or information
contained in this release include, but are not limited to,
statements or information with respect to: our guidance and
outlook, including expected production, cost guidance and
recoveries of gold, including increased heap leach recoveries
through increased leach time in conjunction with a high pressure
grinding roll at Kisladag, favourable economics for our heap
leaching plan and the ability to extend mine life at our projects,
including at Kisladag, improved production at Olympias, completion
and results of the PEA at Lamaque and expanded production,
completion of construction at Skouries, expectations regarding
repayment of outstanding debt, planned capital and exploration
expenditures; our expectation as to our future financial and
operating performance, expected metallurgical recoveries, improved
concentrate grade and quality, gold price outlook and the global
concentrate market; and our strategy, plans and goals, including
our proposed exploration, development, construction, permitting and
operating plans and priorities and related timelines and schedules
and results of litigation and arbitration proceedings.
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 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 costs and
expenses; production, mineral reserves and resources and
metallurgical recoveries, the impact of acquisitions, dispositions,
suspensions or delays on our business and the ability to achieve
our goals. In particular, except where otherwise stated, we have
assumed a continuation of existing business operations on
substantially the same basis as exists at the time of this
release.
Even though our management believes that the
assumptions made and the expectations represented by such
statements or information are reasonable, there can be no assurance
that the forward-looking statement or information will prove to be
accurate. Many assumptions may be difficult to predict and are
beyond our control.
Furthermore, should one or more of the risks,
uncertainties or other factors materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those described in forward-looking statements or information.
These risks, uncertainties and other factors include, among others,
the following: results of further testwork, recoveries of gold and
other metals; geopolitical and economic climate (global and local),
risks related to mineral tenure and permits; gold and other
commodity price volatility; continued softening of the global
concentrate market; risks regarding potential and pending
litigation and arbitration proceedings relating to the Company’s,
business, properties and operations; expected impact on reserves
and the carrying value; the updating of the reserve and resource
models and life of mine plans; mining operational and development
risk; financing risks, foreign country operational risks; risks of
sovereign investment; regulatory risks and liabilities including,
environmental regulatory restrictions and liability; discrepancies
between actual and estimated production, mineral reserves and
resources and metallurgical testing and recoveries; additional
funding requirements; currency fluctuations; community and
non-governmental organization actions; speculative nature of gold
exploration; dilution; share price volatility and the price of the
common shares of the Company; competition; loss of key employees;
and defective title to mineral claims or properties, as well as
those risk factors discussed 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 Annual Information Form and other
regulatory filings filed on SEDAR under our Company name, which
discussion is incorporated by reference in this release, for a
fuller understanding of the risks and uncertainties that affect the
Company’s business and operations.
Forward-looking statements and information is
designed to help you understand management’s current views of our
near and longer term prospects, and it may not be appropriate for
other purposes.
There can be no assurance that forward-looking
statements or information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, you should not place
undue reliance on the forward-looking statements or information
contained herein. Except as required by law, we do not expect to
update forward-looking statements and information continually as
conditions change.
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 under our Company name. The
reader is directed to carefully review such document for a full
understanding of the financial information summarized herein.
Except as otherwise noted, scientific and
technical information contained in this press release was reviewed
and approved by Paul Skayman, FAusIMM, Special Advisor to the Chief
Operating Officer, a "qualified person" under NI 43-101.
Eldorado Gold CorporationConsolidated Statements
of Financial Position As at December 31, 2019 and December
31, 2018(In thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
Note |
|
December 31, 2019 |
|
December 31, 2018 |
ASSETS |
|
|
|
|
|
Current
assets |
|
|
|
|
|
Cash and cash equivalents |
6 |
|
$ |
177,742 |
|
|
$ |
286,312 |
|
Term deposits |
|
|
3,275 |
|
|
6,646 |
|
Restricted cash |
7 |
|
20 |
|
|
296 |
|
Marketable securities |
|
|
3,828 |
|
|
2,572 |
|
Accounts receivable and other |
8 |
|
75,290 |
|
|
80,987 |
|
Inventories |
9 |
|
163,234 |
|
|
137,885 |
|
Assets held for sale |
32 |
|
12,471 |
|
|
— |
|
|
|
|
435,860 |
|
|
514,698 |
|
Restricted cash |
7 |
|
3,080 |
|
|
13,449 |
|
Other assets |
10 |
|
22,943 |
|
|
10,592 |
|
Employee benefit plan
assets |
18 |
|
6,244 |
|
|
9,120 |
|
Property, plant and
equipment |
12 |
|
4,088,202 |
|
|
3,988,476 |
|
Goodwill |
13 |
|
92,591 |
|
|
92,591 |
|
|
|
|
$ |
4,648,920 |
|
|
$ |
4,628,926 |
|
LIABILITIES &
EQUITY |
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
Accounts payable and accrued liabilities |
15 |
|
$ |
139,104 |
|
|
$ |
137,900 |
|
Current portion of lease liabilities |
|
|
9,913 |
|
|
2,978 |
|
Current portion of debt |
16 |
|
66,667 |
|
|
— |
|
Current portion of asset retirement obligations |
17 |
|
1,782 |
|
|
824 |
|
Liabilities associated with assets held for sale |
32 |
|
4,257 |
|
|
— |
|
|
|
|
221,723 |
|
|
141,702 |
|
Debt |
16 |
|
413,065 |
|
|
595,977 |
|
Lease liabilities |
|
|
15,143 |
|
|
6,538 |
|
Employee benefit plan
obligations |
18 |
|
18,224 |
|
|
14,375 |
|
Asset retirement
obligations |
17 |
|
94,235 |
|
|
93,319 |
|
Deferred income tax
liabilities |
20 |
|
412,717 |
|
|
429,929 |
|
|
|
|
1,175,107 |
|
|
1,281,840 |
|
Equity |
|
|
|
|
|
Share capital |
21 |
|
3,054,563 |
|
|
3,007,924 |
|
Treasury stock |
|
|
(8,662 |
) |
|
(10,104 |
) |
Contributed surplus |
|
|
2,627,441 |
|
|
2,620,799 |
|
Accumulated other
comprehensive loss |
|
|
(28,966 |
) |
|
(24,494 |
) |
Deficit |
|
|
(2,229,867 |
) |
|
(2,310,453 |
) |
Total equity
attributable to shareholders of the Company |
|
|
3,414,509 |
|
|
3,283,672 |
|
Attributable to
non-controlling interests |
|
|
59,304 |
|
|
63,414 |
|
|
|
|
3,473,813 |
|
|
3,347,086 |
|
|
|
|
$ |
4,648,920 |
|
|
$ |
4,628,926 |
|
|
|
|
|
|
|
|
|
|
|
Debt, Guarantees, Commitments and Contractual Obligations (Notes
16, 25)Contingencies (Note 26)
Approved on behalf of the Board of
Directors
(signed) John
Webster Director
(signed) George
Burns Director
Date of approval:
February 20, 2020
Eldorado Gold
CorporationConsolidated Statements of Operations
For the years ended December 31, 2019 and December 31, 2018(In
thousands of U.S. dollars except share and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
Note |
|
Year ended December 31, 2019 |
|
Year ended December 31, 2018 |
Revenue |
|
|
|
|
|
Metal sales |
29 |
|
$ |
617,823 |
|
|
$ |
459,016 |
|
|
|
|
|
|
|
Cost of
sales |
|
|
|
|
|
Production costs |
30 |
|
334,839 |
|
|
269,445 |
|
Depreciation and
amortization |
|
|
153,118 |
|
|
105,732 |
|
|
|
|
487,957 |
|
|
375,177 |
|
|
|
|
|
|
|
Earnings from mine
operations |
|
|
129,866 |
|
|
83,839 |
|
|
|
|
|
|
|
Exploration and evaluation
expenses |
|
|
14,643 |
|
|
33,842 |
|
Mine standby costs |
|
|
17,334 |
|
|
16,510 |
|
General and administrative
expenses |
|
|
29,180 |
|
|
46,806 |
|
Employee benefit plan
expense |
18 |
|
2,717 |
|
|
3,555 |
|
Share-based payments
expense |
22 |
|
10,396 |
|
|
6,989 |
|
Impairment (reversal of
impairment) |
12 |
|
(96,914 |
) |
|
447,808 |
|
Write-down of assets |
|
|
6,298 |
|
|
1,528 |
|
Foreign exchange (gain)
loss |
|
|
(625 |
) |
|
3,574 |
|
Earnings (loss) from
operations |
|
|
146,837 |
|
|
(476,773 |
) |
|
|
|
|
|
|
Other income |
19 |
|
11,885 |
|
|
16,281 |
|
Finance costs |
19 |
|
(45,266 |
) |
|
(5,637 |
) |
|
|
|
|
|
|
Earnings (loss) from
operations before income tax |
|
|
113,456 |
|
|
(466,129 |
) |
Income tax expense
(recovery) |
20 |
|
39,771 |
|
|
(86,498 |
) |
Net earnings (loss)
for the year |
|
|
$ |
73,685 |
|
|
$ |
(379,631 |
) |
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
|
Shareholders of the
Company |
|
|
80,586 |
|
|
(361,884 |
) |
Non-controlling interests |
|
|
(6,901 |
) |
|
(17,747 |
) |
Net earnings (loss)
for the year |
|
|
$ |
73,685 |
|
|
$ |
(379,631 |
) |
|
|
|
|
|
|
Weighted average number of
shares outstanding (thousands) |
31 |
|
|
|
|
Basic |
|
|
158,856 |
|
|
158,509 |
|
Diluted |
|
|
161,539 |
|
|
158,509 |
|
|
|
|
|
|
|
Net earnings (loss)
per share attributable to shareholders of the
Company: |
|
|
|
|
|
Basic earnings (loss) per
share |
|
|
$ |
0.51 |
|
|
$ |
(2.28 |
) |
Diluted earnings (loss) per
share |
|
|
$ |
0.50 |
|
|
$ |
(2.28 |
) |
Eldorado Gold
CorporationConsolidated Statements of Comprehensive Income
(Loss) For the years ended December 31, 2019
and December 31, 2018(In thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
Note |
|
Year ended December 31, 2019 |
|
Year ended December 31, 2018 |
|
|
|
|
|
|
Net earnings (loss) for the year |
|
|
$ |
73,685 |
|
|
$ |
(379,631 |
) |
Other comprehensive
income (loss): |
|
|
|
|
|
Items that will not be
reclassified to earnings (loss): |
|
|
|
|
|
Change in fair value of investments in equity securities |
|
|
1,256 |
|
|
(2,306 |
) |
Actuarial losses on employee benefit plans |
18 |
|
(6,361 |
) |
|
(1,197 |
) |
Income tax recovery on actuarial losses on employee benefit
plans |
|
|
633 |
|
|
359 |
|
|
|
|
(4,472 |
) |
|
(3,144 |
) |
Total comprehensive
income (loss) for the year |
|
|
$ |
69,213 |
|
|
$ |
(382,775 |
) |
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
|
Shareholders of the
Company |
|
|
76,114 |
|
|
(365,028 |
) |
Non-controlling interests |
|
|
(6,901 |
) |
|
(17,747 |
) |
|
|
|
$ |
69,213 |
|
|
$ |
(382,775 |
) |
Eldorado Gold
CorporationConsolidated Statements of Cash Flows
For the years ended December 31, 2019 and December 31, 2018(In
thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows generated
from (used in): |
Note |
|
Year ended December 31, 2019 |
|
Year ended December 31, 2018 |
|
|
|
|
|
|
Operating
activities |
|
|
|
|
|
Net earnings (loss) for the year |
|
|
$ |
73,685 |
|
|
$ |
(379,631 |
) |
Items not affecting cash: |
|
|
|
|
|
Depreciation and
amortization |
|
|
155,331 |
|
|
105,732 |
|
Finance costs |
|
|
45,266 |
|
|
5,637 |
|
Interest income |
|
|
(2,760 |
) |
|
(7,727 |
) |
Unrealized foreign exchange
(gain) loss |
|
|
(790 |
) |
|
704 |
|
Income from royalty sale |
|
|
(8,075 |
) |
|
— |
|
Income tax expense
(recovery) |
|
|
39,771 |
|
|
(86,498 |
) |
Impairment (reversal of
impairment) |
12 |
|
(96,914 |
) |
|
447,808 |
|
Write-down of assets |
|
|
6,298 |
|
|
1,528 |
|
Share based payments
expense |
|
|
10,396 |
|
|
6,989 |
|
Employment benefit plan
expense |
|
|
2,717 |
|
|
3,555 |
|
|
|
|
224,925 |
|
|
98,097 |
|
Property reclamation
payments |
|
|
(2,807 |
) |
|
(5,536 |
) |
Employee benefit plan
payments |
|
|
(2,587 |
) |
|
(2,299 |
) |
Income taxes paid |
|
|
(36,242 |
) |
|
(36,879 |
) |
Interest paid |
|
|
(35,479 |
) |
|
— |
|
Interest received |
|
|
2,760 |
|
|
7,727 |
|
Changes in non-cash working
capital |
23 |
|
15,256 |
|
|
6,428 |
|
Net cash generated
from operating activities |
|
|
165,826 |
|
|
67,538 |
|
|
|
|
|
|
|
Investing
activities |
|
|
|
|
|
Purchase of property, plant
and equipment |
|
|
(214,505 |
) |
|
(231,674 |
) |
Capitalized interest paid |
|
|
(3,848 |
) |
|
(36,750 |
) |
Proceeds from the sale of
property, plant and equipment |
|
|
6,605 |
|
|
7,882 |
|
Proceeds on pre-commercial
production sales, net |
12 |
|
12,159 |
|
|
6,472 |
|
Purchase of investment in
associate |
|
|
(3,107 |
) |
|
— |
|
Proceeds from sale of mining
interest |
|
|
1,397 |
|
|
— |
|
Value added taxes related to
mineral property expenditures, net |
|
|
(1,590 |
) |
|
(1,261 |
) |
Decrease (increase) in term
deposits |
|
|
3,371 |
|
|
(1,138 |
) |
Decrease (increase) in
restricted cash |
|
|
10,644 |
|
|
(928 |
) |
Net cash used in
investing activities |
|
|
(188,874 |
) |
|
(257,397 |
) |
|
|
|
|
|
|
Financing
activities |
|
|
|
|
|
Issuance of common shares for
cash |
|
|
40,066 |
|
|
— |
|
Contributions from
non-controlling interests |
|
|
2,791 |
|
|
— |
|
Proceeds from borrowings |
|
|
494,000 |
|
|
— |
|
Repayments from
borrowings |
|
|
(600,000 |
) |
|
— |
|
Loan financing costs |
|
|
(15,583 |
) |
|
— |
|
Principal portion of lease
liabilities |
|
|
(6,729 |
) |
|
(1,222 |
) |
Purchase of treasury
stock |
|
|
— |
|
|
(2,108 |
) |
Net cash used in
financing activities |
|
|
(85,455 |
) |
|
(3,330 |
) |
|
|
|
|
|
|
Net decrease in cash
and cash equivalents |
|
|
(108,503 |
) |
|
(193,189 |
) |
Cash and cash
equivalents - beginning of year |
|
|
286,312 |
|
|
479,501 |
|
Cash in disposal group
held for sale |
|
|
(67 |
) |
|
— |
|
Cash and cash
equivalents - end of year |
|
|
$ |
177,742 |
|
|
$ |
286,312 |
|
Eldorado Gold
CorporationConsolidated Statements of Changes in
Equity For the years ended December 31, 2019 and December 31,
2018(In thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
Note |
|
Year ended December 31, 2019 |
|
Year ended December 31, 2018 |
Share
capital |
|
|
|
|
|
Balance beginning of year |
|
|
$ |
3,007,924 |
|
|
$ |
3,007,924 |
|
Shares issued upon exercise of share options, for cash |
|
|
265 |
|
|
— |
|
Transfer of contributed surplus on exercise of options |
|
|
103 |
|
|
— |
|
Shares issued to the public, net of share issuance costs |
|
|
46,271 |
|
|
— |
|
Balance end of year |
21 |
|
$ |
3,054,563 |
|
|
$ |
3,007,924 |
|
|
|
|
|
|
|
Treasury
stock |
|
|
|
|
|
Balance beginning of year |
|
|
$ |
(10,104 |
) |
|
$ |
(11,056 |
) |
Purchase of treasury stock |
|
|
— |
|
|
(2,108 |
) |
Shares redeemed upon exercise of restricted share units |
|
|
1,442 |
|
|
3,060 |
|
Balance end of year |
|
|
$ |
(8,662 |
) |
|
$ |
(10,104 |
) |
|
|
|
|
|
|
Contributed
surplus |
|
|
|
|
|
Balance beginning of year |
|
|
$ |
2,620,799 |
|
|
$ |
2,616,593 |
|
Share based payment arrangements |
|
|
8,187 |
|
|
7,266 |
|
Shares redeemed upon exercise of restricted share units |
|
|
(1,442 |
) |
|
(3,060 |
) |
Transfer to share capital on exercise of options |
|
|
(103 |
) |
|
— |
|
Balance end of year |
|
|
$ |
2,627,441 |
|
|
$ |
2,620,799 |
|
|
|
|
|
|
|
Accumulated other
comprehensive loss |
|
|
|
|
|
Balance beginning of year |
|
|
$ |
(24,494 |
) |
|
$ |
(21,350 |
) |
Other comprehensive loss for the year |
|
|
(4,472 |
) |
|
(3,144 |
) |
Balance end of year |
|
|
$ |
(28,966 |
) |
|
$ |
(24,494 |
) |
|
|
|
|
|
|
Deficit |
|
|
|
|
|
Balance beginning of year |
|
|
$ |
(2,310,453 |
) |
|
$ |
(1,948,569 |
) |
Earnings (loss) attributable to shareholders of the Company |
|
|
80,586 |
|
|
(361,884 |
) |
Balance end of year |
|
|
$ |
(2,229,867 |
) |
|
$ |
(2,310,453 |
) |
Total equity
attributable to shareholders of the Company |
|
|
$ |
3,414,509 |
|
|
$ |
3,283,672 |
|
|
|
|
|
|
|
Non-controlling
interests |
|
|
|
|
|
Balance beginning of year |
|
|
$ |
63,414 |
|
|
$ |
79,940 |
|
Loss attributable to non-controlling interests |
|
|
(6,901 |
) |
|
(17,747 |
) |
Contributions from non-controlling interests |
|
|
2,791 |
|
|
1,221 |
|
Balance end of year |
|
|
$ |
59,304 |
|
|
$ |
63,414 |
|
Total
equity |
|
|
$ |
3,473,813 |
|
|
$ |
3,347,086 |
|
Please see the Consolidated Financial Statements dated
December 31, 2019 for notes to the accounts.
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