Eldorado Gold Corporation (“Eldorado” or “the Company”) today
reports the Company’s financial and operational results for the
second quarter of 2020.
- Measures remain in place to manage the
impact of the novel coronavirus ("COVID-19") pandemic: The
Company's mines are fully operational and the global workforce has
returned to normal levels. Preventing the spread of COVID-19,
ensuring safe working environments across Eldorado's global sites,
and preparedness should an outbreak occur, remain
priorities.
- Stronger quarterly production and 2020 annual guidance
maintained: Gold production totalled 137,782 ounces in Q2
2020, an increase of 50% from Q2 2019 production of 91,803 ounces,
and a 19% increase over Q1 2020. Eldorado is maintaining its
2020 annual guidance of 520,000-550,000 ounces of gold at an all-in
sustaining cost of $850-950 per ounce sold.
- Significant increase in free cash flow: Free
cash flow of $63.4 million in Q2 2020 increased significantly from
$4.8 million in Q2 2019 and $7.2 million in Q1 2020 as a result of
higher sales volume and a higher gold price.
- Commenced construction of a three kilometre decline at
Lamaque: The underground decline will connect the Sigma
mill to the 405 metre level of the Triangle mine. Benefits of the
decline include eliminating surface haulage of ore (approximately
26km round trip), reducing energy requirements for mine ventilation
and providing access to reduce exploration costs. The decline is
expected to be completed in the first half of 2022 at an estimated
cost of $24 million.
- All-in sustaining costs lower
quarter-on-quarter: Q2 2020 all-in sustaining costs of
$859 per ounce of gold sold in the quarter were lower than in Q2
2019 ($917 per ounce sold).
- Continued strong financial liquidity: The
Company currently has $440 million of cash, cash equivalents
and term deposits and approximately $35 million available under the
revolving credit facility, with $65 million of capacity on
the facility allocated to secure certain reclamation obligations in
connection with its operations.
- Improved financial position and net leverage
ratio: $33.3 million was repaid on the Company's term loan
during the quarter. Continued strong EBITDA has improved the
Company's net leverage ratio, lowering the interest rate on the
term loan and amounts drawn under the revolving credit facility
from LIBOR + 2.5% to LIBOR + 2.25% during the quarter.
Additionally, we have issued a redemption notice to repay $58.6
million of principal in August 2020 under the equity clawback
provision of our senior secured notes.
- Net earnings and adjusted net earnings attributable to
shareholders: Net earnings attributable to shareholders of
the Company in Q2 2020 were $45.6 million or $0.27 per share (Q2
2019: net earnings attributable to shareholders of the Company of
$12.2 million, or $0.08 per share). Adjusted net earnings
attributable to shareholders of the Company in Q2 2020 were $43.8
million, or $0.26 per share (Q2 2019: adjusted net loss
attributable to shareholders of the Company of $3.5 million, or
$0.02 loss per share).
- Increased EBITDA: Q2 2020 EBITDA was $131.8
million ($74.5 million in Q2 2019) and Q2 2020 adjusted EBITDA was
$135.8 million ($66.8 million in Q2 2019). Adjustments included,
among other things, share based compensation and losses on asset
disposals.
“Our outstanding operational performance during
the quarter positions us to continue to generate significant value
for our stakeholders. Even while managing COVID-19, we
achieved strong quarterly production while seeing lower all-in
sustaining costs,” said George Burns, President and CEO.
“We are pleased to have made our first scheduled
term loan repayment in June. Additionally, we have issued a
redemption notice to repay $59 million dollars of principal in
August under the equity clawback provision of our senior secured
notes. We are committed to reducing our debt, while at the same
time maintaining a strong liquidity position as we continue to grow
our business."
“Our teams continue to show agility in
addressing COVID-19 and we have begun to integrate innovative new
technologies to protect our workforce. We are extremely
pleased with first half corporate performance and see several
positive catalysts on the horizon, including further success in
Turkey and continued growth in Greece and Quebec.”
“The addition of Ms. Judith Mosely as a director
is highly complementary to the skills and experience of our
existing board members and we look forward to her added insights.
This timing is consistent with our ongoing Board succession
plan.”
Consolidated Financial and Operational
Highlights
|
3 months ended June 30, |
|
|
6 months ended June 30, |
|
|
|
2020 |
|
|
2019 |
|
|
|
2020 |
|
|
2019 |
|
Revenue (1) |
$255.9 |
|
$173.7 |
|
|
$460.6 |
|
$253.7 |
|
Gold revenue (1) |
$232.9 |
|
$150.1 |
|
|
$416.6 |
|
$204.6 |
|
Gold produced (oz) (2) |
|
137,782 |
|
|
91,803 |
|
|
|
253,732 |
|
|
174,780 |
|
Gold sold (oz) (1) |
|
134,960 |
|
|
113,685 |
|
|
|
251,179 |
|
|
156,759 |
|
Average realized gold price ($/oz sold) (6) |
$1,726 |
|
$1,321 |
|
|
$1,658 |
|
$1,301 |
|
Cash operating costs ($/oz sold) (3,7) |
|
550 |
|
|
631 |
|
|
|
586 |
|
|
629 |
|
Total cash costs ($/oz sold) (3,7) |
|
616 |
|
|
670 |
|
|
|
644 |
|
|
665 |
|
All-in sustaining costs ($/oz sold) (3,6) |
|
859 |
|
|
917 |
|
|
|
902 |
|
|
977 |
|
Net earnings (loss) for the period (4) |
|
45.6 |
|
|
12.2 |
|
|
|
40.7 |
|
|
(14.8 |
) |
Net earnings (loss) per share – basic ($/share) (4) |
|
0.27 |
|
|
0.08 |
|
|
|
0.24 |
|
|
(0.09 |
) |
Adjusted net earnings (loss) (4,5,6,7) |
|
43.8 |
|
|
(3.5 |
) |
|
|
56.3 |
|
|
(24.5 |
) |
Adjusted net earnings (loss) per share ($/share) (4,5,6,7) |
|
0.26 |
|
|
(0.02 |
) |
|
|
0.34 |
|
|
(0.15 |
) |
Cash flow from operating activities before changes in working
capital (6,7) |
|
99.0 |
|
|
38.5 |
|
|
|
168.5 |
|
|
46.6 |
|
Free cash flow (6) |
|
63.4 |
|
|
4.8 |
|
|
|
70.5 |
|
|
(59.2 |
) |
Cash, cash equivalents and term deposits |
$440.3 |
|
$119.9 |
|
|
$440.3 |
|
$119.9 |
|
(1) Excludes sales of inventory mined at Lamaque during the
pre-commercial production period (Q1 2019).(2) Includes
pre-commercial production at Lamaque (Q1 2019).(3) By-product
revenues are off-set against cash operating costs.(4) Attributable
to shareholders of the Company.(5) See reconciliation of net
earnings (loss) to adjusted net earnings (loss) in the section
'Non-IFRS Measures' in the June 30, 2020 MD&A.(6) These
measures are non-IFRS measures. See the June 30, 2020 MD&A
for explanations and discussion of these non-IFRS measures.(7) 2019
amounts have been adjusted to conform with 2020 presentation. See
the section 'Non-IFRS Measures' in the June 30, 2020 MD&A
for detail.
Gold production of 137,782 ounces increased 50%
from last year’s second quarter production of 91,803 ounces. Gold
sales totalled 134,960 ounces in Q2 2020, an increase of 19% from
113,685 ounces sold in Q2 2019. The higher sales volume compared
with the prior year reflected an increase of 33,845 ounces sold at
Kisladag following the resumption of mining activities in April
2019, an increase of 7,634 ounces sold at Lamaque following its
commencement of commercial operations in April 2019 and an increase
of 2,925 ounces sold at Olympias as a result of increased
production. Gold sales at Efemcukuru in Q2 2020 decreased by 23,129
ounces from the prior year as sales in Q2 2019 included shipments
that had been delayed from Q1 2019.
Total revenue was $255.9 million in Q2 2020, an
increase of 47% from $173.7 million in Q2 2019. The increase was
due to increased sales volume combined with a higher average
realized gold price.
Cash operating costs per ounce sold in Q2 2020
averaged $550, a decrease from $631 in Q2 2019. The improvement was
primarily due to higher production at Kisladag with an increase in
stacked ore on the heap leach pad, higher production and grade at
Olympias and higher production at Efemcukuru. The improvement was
also due to increased mining rates at Lamaque in Q2 2020 following
approval to expand underground production. Cash operating costs
also benefited from a weakening of the Turkish Lira in the first
half of 2020.
We reported net earnings attributable to
shareholders of $45.6 million ($0.27 per share) in Q2 2020,
compared to net earnings of $12.2 million ($0.08 per share) in Q2
2019. The improvement reflects higher production and sales volumes,
combined with a higher average realized gold price.
Adjusted net earnings were $43.8 million ($0.26
per share) in Q2 2020 compared to adjusted net loss of $3.5 million
($0.02 loss per share) in Q2 2019. Adjusted net earnings in Q2 2020
removes, among other things, the $5.7 million gain on the non-cash
revaluation of the derivative related to redemption options in our
debt and a $3.0 million loss on foreign exchange due to translation
of deferred tax balances.
Gold Operations
|
3 months ended June 30, |
|
6 months ended June 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Total |
|
|
|
|
Ounces produced (1) |
|
137,782 |
|
|
91,803 |
|
|
253,732 |
|
|
174,780 |
|
Ounces sold (2, 4) |
|
134,960 |
|
|
113,685 |
|
|
251,179 |
|
|
156,759 |
|
Cash operating costs ($/oz sold) (4,5) |
$550 |
|
$631 |
|
$586 |
|
$629 |
|
All-in sustaining costs ($/oz sold) (4,5) |
$859 |
|
$917 |
|
$902 |
|
$977 |
|
Sustaining capex (5) |
$21.9 |
|
$15.6 |
|
$41.3 |
|
$26.4 |
|
Kisladag |
|
|
|
|
Ounces produced (3) |
|
59,890 |
|
|
26,072 |
|
|
110,066 |
|
|
53,319 |
|
Ounces sold |
|
59,917 |
|
|
26,072 |
|
|
111,517 |
|
|
53,327 |
|
Cash operating costs ($/oz sold) (5) |
$465 |
|
$381 |
|
$459 |
|
$471 |
|
All-in sustaining costs ($/oz sold) (5) |
$631 |
|
$471 |
|
$606 |
|
$590 |
|
Sustaining capex (5) |
$5.4 |
|
$1.1 |
|
$8.4 |
|
$4.2 |
|
Lamaque |
|
|
|
|
Ounces produced (1) |
|
33,095 |
|
|
33,140 |
|
|
60,448 |
|
|
52,818 |
|
Ounces sold (2) |
|
31,964 |
|
|
24,330 |
|
|
58,692 |
|
|
24,330 |
|
Cash operating costs ($/oz sold) (5) |
$480 |
|
$517 |
|
$553 |
|
$517 |
|
All-in sustaining costs ($/oz sold) (5) |
$796 |
|
$814 |
|
$908 |
|
$814 |
|
Sustaining capex (5) |
$8.0 |
|
$5.3 |
|
$16.3 |
|
$5.3 |
|
Efemcukuru |
|
|
|
|
Ounces produced |
|
26,876 |
|
|
25,667 |
|
|
50,115 |
|
|
51,791 |
|
Ounces sold (4) |
|
25,692 |
|
|
48,821 |
|
|
48,913 |
|
|
54,639 |
|
Cash operating costs ($/oz sold) (4,5) |
$534 |
|
$593 |
|
$586 |
|
$598 |
|
All-in sustaining costs ($/oz sold) (4,5) |
$807 |
|
$774 |
|
$835 |
|
$840 |
|
Sustaining capex (5) |
$3.6 |
|
$5.4 |
|
$6.7 |
|
$9.0 |
|
Olympias |
|
|
|
|
Ounces produced |
|
17,921 |
|
|
6,924 |
|
|
33,103 |
|
|
16,852 |
|
Ounces sold |
|
17,387 |
|
|
14,462 |
|
|
32,057 |
|
|
24,463 |
|
Cash operating costs ($/oz sold) (5) |
$993 |
|
$1,402 |
|
$1,086 |
|
$1,156 |
|
All-in sustaining costs ($/oz sold) (5) |
$1,377 |
|
$1,731 |
|
$1,500 |
|
$1,553 |
|
Sustaining capex (5) |
$4.9 |
|
$3.8 |
|
$9.9 |
|
$7.9 |
|
(1) Includes pre-commercial production at Lamaque (Q1 2019).(2)
Excludes sales of inventory produced at Lamaque during the
pre-commercial production period (Q1 2019).(3) Kisladag resumed
mining, crushing and placing ore on the heap leach pad on April 1,
2019. This activity had been suspended since April 2018.(4)
Efemcukuru ounces sold and unit costs were impacted by delayed
shipments in Q1 2019 that were completed in Q2 2019.(5) These
measures are non-IFRS measures. See the June 30, 2020 MD&A
for explanations and discussion of these non-IFRS measures.
Corporate
On July 30, 2020, the Company issued a
redemption notice for the senior secured notes and intends to
redeem $59 million of the principal amount of the senior secured
notes in August 2020 using proceeds from the ATM Program. The
redemption price is 109.5% of the aggregate principal amount
repaid, plus accrued and unpaid interest.
We are pleased to announce the appointment of
Ms. Judith Mosely to the Board of Directors, effective September 1,
2020. Ms. Mosely has over 20 years of experience in the mining and
metals banking sector.
Conference Call
A conference call to discuss the details of the
Company’s Q2 2020 results will be held by senior management on
Friday, July 31, 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/eldoradogold20200731.html.
Conference
Call Details |
|
Replay
(available until Sept. 4, 2020) |
Date: |
July 31, 2020 |
|
Vancouver: |
+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: |
4874 |
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).
Contact
Investor Relations
Peter Lekich, Manager Investor
Relations604.687.4018 or 1.888.353.8166
peter.lekich@eldoradogold.com
Media
Louise Burgess, Director Communications &
Government Relations604.601.6679 or 1.888.363.8166
louise.burgess@eldoradogold.com
Non-IFRS Measures
Certain non-IFRS measures are included in this
press release, including average realized gold price per ounce
sold, cash operating costs and cash operating costs per ounce sold,
total cash costs and total cash costs per ounce sold, all-in
sustaining costs ("AISC") and AISC per ounce sold, adjusted net
earnings/(loss), adjusted net earnings/(loss) per share, working
capital, cash flow from operations before changes in non-cash
working capital, earnings before interest, taxes and depreciation
and amortization ("EBITDA") and adjusted earnings before interest,
taxes and depreciation and amortization ("Adjusted EBITDA"), free
cash flow and sustaining capital. Please see the June 30, 2020
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: the duration, extent and
other implications of COVID-19 and any restrictions and suspensions
with respect to our operations, our guidance and outlook, including
expected production, cost guidance and recoveries of gold,
construction of the decline at Lamaque, including expected timing
and cost, and realization of the associated benefits, planned
capital and exploration expenditures; redemption of high-yield
bonds by the Company, our expectation as to our future financial
and operating performance, expected metallurgical recoveries, 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 how the world-wide economic and social impact of COVID-19 is
managed and the duration and extent of the COVID-19 pandemic,
timing and cost of construction of the decline at Lamaque, and any
associated benefits; our ability to complete the redemption of the
Company’s high yield bonds; 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: global outbreaks of infectious diseases, including
COVID-19, timing and cost of construction of the decline at
Lamaque, and any associated benefits, ability to complete the
redemption of the Company’s high yield bonds; 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 filed on
SEDAR and EDGAR under our Company name, which discussion is
incorporated by reference in this release, for a fuller
understanding of the risks and uncertainties that affect the
Company’s business and operations.
Forward-looking statements and information is
designed to help you understand management’s current views of our
near and longer term prospects, and it may not be appropriate for
other purposes.
There can be no assurance that forward-looking
statements or information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, you should not place
undue reliance on the forward-looking statements or information
contained herein. Except as required by law, we do not expect to
update forward-looking statements and information continually as
conditions change.
Financial Information and condensed statements
contained herein or attached hereto may not be suitable for readers
that are unfamiliar with the Company and is not a substitute for
reading the Company’s financial statements and related MD&A
available on our website and on SEDAR and EDGAR under our Company
name. The reader is directed to carefully review such document for
a full understanding of the financial information summarized
herein.
Except as otherwise noted, scientific and
technical information contained in this press release was reviewed
and approved by Paul Skayman, FAusIMM, Special Advisor to the Chief
Operating Officer for Eldorado Gold Corporation, and a "qualified
person" under NI 43-101.
Eldorado
Gold Corporation |
Condensed
Consolidated Interim Statements of Financial Position |
|
(Unaudited – in
thousands of U.S. dollars) |
|
|
|
|
|
|
As at |
Note |
|
June 30, 2020 |
|
|
December 31, 2019 |
|
ASSETS |
|
|
|
|
|
Current
assets |
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
435,469 |
|
|
$ |
177,742 |
|
Term deposits |
|
|
4,836 |
|
|
3,275 |
|
Marketable securities |
|
|
4,654 |
|
|
3,828 |
|
Accounts receivable and other |
4 |
|
86,351 |
|
|
75,310 |
|
Inventories |
5 |
|
162,785 |
|
|
163,234 |
|
Current portion of employee benefit plan assets |
|
|
6,025 |
|
|
— |
|
Assets held for sale |
|
|
11,929 |
|
|
12,471 |
|
|
|
|
712,049 |
|
|
435,860 |
|
Restricted cash |
|
|
1,983 |
|
|
3,080 |
|
Other assets |
|
|
30,647 |
|
|
22,943 |
|
Employee benefit plan assets |
|
|
— |
|
|
6,244 |
|
Property, plant and equipment |
|
|
4,044,955 |
|
|
4,088,202 |
|
Goodwill |
|
|
92,591 |
|
|
92,591 |
|
|
|
|
$ |
4,882,225 |
|
|
$ |
4,648,920 |
|
LIABILITIES &
EQUITY |
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
Accounts payable and accrued liabilities |
|
|
$ |
144,629 |
|
|
$ |
139,104 |
|
Current portion of capital lease liabilities |
|
|
10,342 |
|
|
9,913 |
|
Current portion of debt |
6 |
|
216,667 |
|
|
66,667 |
|
Current portion of asset retirement obligations |
|
|
1,783 |
|
|
1,782 |
|
Current portion of employee benefit plan obligations |
|
|
1,133 |
|
|
— |
|
Liabilities associated with assets held for sale |
|
|
4,229 |
|
|
4,257 |
|
|
|
|
378,783 |
|
|
221,723 |
|
Debt |
6 |
|
380,423 |
|
|
413,065 |
|
Lease liabilities |
|
|
11,399 |
|
|
15,143 |
|
Employee benefit plan
obligations |
|
|
17,464 |
|
|
18,224 |
|
Asset retirement
obligations |
|
|
94,174 |
|
|
94,235 |
|
Deferred income tax
liabilities |
|
|
413,339 |
|
|
412,717 |
|
|
|
|
1,295,582 |
|
|
1,175,107 |
|
Equity |
|
|
|
|
|
Share capital |
10 |
|
3,135,955 |
|
|
3,054,563 |
|
Treasury stock |
|
|
(11,587 |
) |
|
(8,662 |
) |
Contributed surplus |
|
|
2,634,246 |
|
|
2,627,441 |
|
Accumulated other
comprehensive loss |
|
|
(28,266 |
) |
|
(28,966 |
) |
Deficit |
|
|
(2,189,129 |
) |
|
(2,229,867 |
) |
Total equity
attributable to shareholders of the Company |
|
|
3,541,219 |
|
|
3,414,509 |
|
Attributable to
non-controlling interests |
11 |
|
45,424 |
|
|
59,304 |
|
|
|
|
3,586,643 |
|
|
3,473,813 |
|
|
|
|
$ |
4,882,225 |
|
|
$ |
4,648,920 |
|
Eldorado
Gold Corporation |
Condensed
Consolidated Interim Statements of Operations |
For the three and
six months ended June 30, 2020 and 2019 |
(Unaudited – in
thousands of U.S. dollars except share and per share
amounts) |
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
June 30, |
|
June 30, |
|
Note |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenue |
|
|
|
|
|
|
|
|
|
Metal
sales |
7 |
|
$ |
255,917 |
|
|
$ |
173,678 |
|
|
$ |
460,572 |
|
|
$ |
253,702 |
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
|
|
|
|
|
|
|
Production costs |
|
|
109,477 |
|
|
100,896 |
|
|
210,839 |
|
|
152,817 |
|
Depreciation and amortization |
|
|
58,328 |
|
|
41,188 |
|
|
110,691 |
|
|
61,130 |
|
|
|
|
167,805 |
|
|
142,084 |
|
|
321,530 |
|
|
213,947 |
|
|
|
|
|
|
|
|
|
|
|
Earnings from mine operations |
|
|
88,112 |
|
|
31,594 |
|
|
139,042 |
|
|
39,755 |
|
|
|
|
|
|
|
|
|
|
|
Exploration and evaluation expenses |
|
|
2,333 |
|
|
2,529 |
|
|
5,560 |
|
|
7,894 |
|
Mine standby costs |
8 |
|
5,029 |
|
|
3,450 |
|
|
9,059 |
|
|
11,443 |
|
General and administrative expenses |
|
|
6,157 |
|
|
8,084 |
|
|
14,444 |
|
|
15,256 |
|
Employee benefit plan expense |
|
|
766 |
|
|
510 |
|
|
1,457 |
|
|
1,109 |
|
Share-based payments expense |
12 |
|
2,863 |
|
|
2,498 |
|
|
4,658 |
|
|
5,400 |
|
Reversal of impairment |
|
|
— |
|
|
(11,690 |
) |
|
— |
|
|
(11,690 |
) |
Write-down (reversal) of assets |
|
|
(295 |
) |
|
410 |
|
|
(92 |
) |
|
427 |
|
Foreign exchange loss (gain) |
|
|
(1,238 |
) |
|
480 |
|
|
(2,000 |
) |
|
235 |
|
Earnings from operations |
|
|
72,497 |
|
|
25,323 |
|
|
105,956 |
|
|
9,681 |
|
|
|
|
|
|
|
|
|
|
|
Other income |
9 |
|
1,356 |
|
|
8,655 |
|
|
36 |
|
|
10,288 |
|
Finance costs |
9 |
|
(6,480 |
) |
|
(16,786 |
) |
|
(22,687 |
) |
|
(24,117 |
) |
Earnings (loss) from operations before income
tax |
|
|
67,373 |
|
|
17,192 |
|
|
83,305 |
|
|
(4,148 |
) |
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
23,671 |
|
|
8,010 |
|
|
45,076 |
|
|
14,042 |
|
Net earnings (loss) for the period |
|
|
$ |
43,702 |
|
|
$ |
9,182 |
|
|
$ |
38,229 |
|
|
$ |
(18,190 |
) |
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
Shareholders of the Company |
|
|
45,618 |
|
|
12,151 |
|
|
40,738 |
|
|
(14,814 |
) |
Non-controlling interests |
|
|
(1,916 |
) |
|
(2,969 |
) |
|
(2,509 |
) |
|
(3,376 |
) |
Net earnings (loss) for the period |
|
|
$ |
43,702 |
|
|
$ |
9,182 |
|
|
$ |
38,229 |
|
|
$ |
(18,190 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding (thousands) |
|
|
|
|
|
|
|
|
|
Basic |
|
|
169,867 |
|
|
158,372 |
|
|
167,524 |
|
|
158,345 |
|
Diluted |
|
|
173,787 |
|
|
161,276 |
|
|
171,342 |
|
|
158,345 |
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) per share attributable to
shareholders of the Company: |
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share |
|
|
$ |
0.27 |
|
|
$ |
0.08 |
|
|
$ |
0.24 |
|
|
$ |
(0.09 |
) |
Diluted earnings (loss) per share |
|
|
$ |
0.26 |
|
|
$ |
0.08 |
|
|
$ |
0.24 |
|
|
$ |
(0.09 |
) |
Eldorado
Gold Corporation |
Condensed
Consolidated Interim Statements of Comprehensive Income
(Loss) |
For the three and
six months ended June 30, 2020 and 2019 |
(Unaudited – in
thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) for the period |
|
|
$ |
43,702 |
|
|
$ |
9,182 |
|
|
$ |
38,229 |
|
|
$ |
(18,190 |
) |
Other comprehensive
(loss) income: |
|
|
|
|
|
|
|
|
|
Items that will not be
reclassified to earnings or loss: |
|
|
|
|
|
|
|
|
|
Change in fair value of investments in equity securities, net of
tax |
|
|
1,766 |
|
|
1,016 |
|
|
898 |
|
|
1,163 |
|
Actuarial gains (losses) on employee benefit plans, net of tax |
|
|
30 |
|
|
(63 |
) |
|
(198 |
) |
|
(409 |
) |
Total other
comprehensive income for the period |
|
|
1,796 |
|
|
953 |
|
|
700 |
|
|
754 |
|
Total comprehensive
income (loss) for the period |
|
|
$ |
45,498 |
|
|
$ |
10,135 |
|
|
$ |
38,929 |
|
|
$ |
(17,436 |
) |
|
|
|
|
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
|
|
|
|
|
Shareholders of the
Company |
|
|
47,414 |
|
|
13,104 |
|
|
41,438 |
|
|
(14,060 |
) |
Non-controlling interests |
|
|
(1,916 |
) |
|
(2,969 |
) |
|
(2,509 |
) |
|
(3,376 |
) |
|
|
|
$ |
45,498 |
|
|
$ |
10,135 |
|
|
$ |
38,929 |
|
|
$ |
(17,436 |
) |
Eldorado
Gold Corporation |
Condensed
Consolidated Interim Statements of Cash Flows |
For the three and
six months ended June 30, 2020 and 2019 |
(Unaudited – in
thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
June 30, |
|
June 30, |
|
Note |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Cash flows generated from
(used in): |
|
|
|
|
|
|
|
|
|
Operating
activities |
|
|
|
|
|
|
|
|
|
Net earnings (loss) for the period |
|
|
$ |
43,702 |
|
|
$ |
9,182 |
|
|
$ |
38,229 |
|
|
$ |
(18,190 |
) |
Items not affecting cash: |
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
58,883 |
|
|
41,188 |
|
|
111,810 |
|
|
61,130 |
|
Finance costs |
|
|
6,498 |
|
|
16,786 |
|
|
22,722 |
|
|
24,117 |
|
Interest income |
|
|
(894 |
) |
|
(939 |
) |
|
(1,283 |
) |
|
(2,154 |
) |
Unrealized foreign exchange
gain |
|
|
(512 |
) |
|
(178 |
) |
|
(3,050 |
) |
|
(351 |
) |
Income tax expense |
|
|
23,671 |
|
|
8,010 |
|
|
45,076 |
|
|
14,042 |
|
Loss on disposal of
assets |
|
|
96 |
|
|
951 |
|
|
2,550 |
|
|
1,013 |
|
Write-down (reversal) of
assets |
|
|
(295 |
) |
|
410 |
|
|
(92 |
) |
|
427 |
|
Share-based payments
expense |
12 |
|
2,863 |
|
|
2,498 |
|
|
4,658 |
|
|
5,400 |
|
Employee benefit plan
expense |
|
|
766 |
|
|
510 |
|
|
1,457 |
|
|
1,109 |
|
Income from royalty sale |
|
|
— |
|
|
(8,075 |
) |
|
— |
|
|
(8,075 |
) |
Reversal of impairment |
|
|
— |
|
|
(11,690 |
) |
|
— |
|
|
(11,690 |
) |
|
|
|
134,778 |
|
|
58,653 |
|
|
222,077 |
|
|
66,778 |
|
Property reclamation
payments |
|
|
(474 |
) |
|
(896 |
) |
|
(1,000 |
) |
|
(1,796 |
) |
Employee benefit plan
payments |
|
|
(435 |
) |
|
(1,349 |
) |
|
(671 |
) |
|
(1,349 |
) |
Income taxes paid |
|
|
(18,128 |
) |
|
(4,010 |
) |
|
(32,847 |
) |
|
(4,010 |
) |
Interest paid |
|
|
(17,588 |
) |
|
(14,886 |
) |
|
(20,358 |
) |
|
(15,136 |
) |
Interest received |
|
|
894 |
|
|
939 |
|
|
1,283 |
|
|
2,154 |
|
Changes in non-cash working
capital |
13 |
|
583 |
|
|
12,572 |
|
|
(15,587 |
) |
|
3,754 |
|
Net cash generated
from operating activities |
|
|
99,630 |
|
|
51,023 |
|
|
152,897 |
|
|
50,395 |
|
|
|
|
|
|
|
|
|
|
|
Investing
activities |
|
|
|
|
|
|
|
|
|
Purchase of property, plant
and equipment |
|
|
(37,126 |
) |
|
(48,020 |
) |
|
(77,608 |
) |
|
(113,940 |
) |
Proceeds from the sale of
property, plant and equipment |
|
|
683 |
|
|
3,392 |
|
|
705 |
|
|
3,772 |
|
Value added taxes related to
mineral property expenditures, net |
|
|
168 |
|
|
(5,348 |
) |
|
(5,483 |
) |
|
(7,719 |
) |
Decrease (increase) in term
deposits |
|
|
49,964 |
|
|
1,897 |
|
|
(1,561 |
) |
|
1,871 |
|
Decrease (increase) in
restricted cash |
|
|
(77 |
) |
|
10,640 |
|
|
1,097 |
|
|
10,194 |
|
Capitalized interest |
|
|
— |
|
|
(3,848 |
) |
|
— |
|
|
(3,848 |
) |
Proceeds on pre-commercial
production sales, net |
|
|
— |
|
|
7,606 |
|
|
— |
|
|
12,159 |
|
Net cash generated
from (used in) investing activities |
|
|
13,612 |
|
|
(33,681 |
) |
|
(82,850 |
) |
|
(97,511 |
) |
|
|
|
|
|
|
|
|
|
|
Financing
activities |
|
|
|
|
|
|
|
|
|
Cash received for issuance of
shares |
|
|
60,243 |
|
|
18 |
|
|
87,079 |
|
|
18 |
|
Acquisition of non-controlling
interest |
11 |
|
(7,500 |
) |
|
— |
|
|
(7,500 |
) |
|
— |
|
Contributions from
non-controlling interests |
|
|
301 |
|
|
— |
|
|
301 |
|
|
— |
|
Proceeds from borrowings |
6 |
|
— |
|
|
494,000 |
|
|
150,000 |
|
|
494,000 |
|
Repayment of borrowings |
6 |
|
(33,333 |
) |
|
(600,000 |
) |
|
(33,333 |
) |
|
(600,000 |
) |
Loan financing costs |
|
|
— |
|
|
(14,995 |
) |
|
— |
|
|
(14,995 |
) |
Principal portion of lease
liabilities |
|
|
(2,499 |
) |
|
(1,312 |
) |
|
(5,033 |
) |
|
(2,386 |
) |
Purchase of treasury
stock |
|
|
(3,679 |
) |
|
— |
|
|
(3,679 |
) |
|
— |
|
Net cash generated
from (used in) financing activities |
|
|
13,533 |
|
|
(122,289 |
) |
|
187,835 |
|
|
(123,363 |
) |
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents |
|
|
126,775 |
|
|
(104,947 |
) |
|
257,882 |
|
|
(170,479 |
) |
Cash and cash
equivalents - beginning of period |
|
|
308,780 |
|
|
220,780 |
|
|
177,742 |
|
|
286,312 |
|
Cash in disposal group held
for sale |
|
|
(86 |
) |
|
(724 |
) |
|
(155 |
) |
|
(724 |
) |
Cash and cash
equivalents - end of period |
|
|
$ |
435,469 |
|
|
$ |
115,109 |
|
|
$ |
435,469 |
|
|
$ |
115,109 |
|
Eldorado
Gold Corporation |
Condensed
Consolidated Interim Statements of Changes in Equity |
For the three and
six months ended June 30, 2020 and 2019 |
(Unaudited – in
thousands of U.S. dollars) |
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
June 30, |
|
June 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Share
capital |
|
|
|
|
|
|
|
|
Balance beginning of period |
|
$ |
3,075,100 |
|
|
$ |
3,007,924 |
|
|
$ |
3,054,563 |
|
|
$ |
3,007,924 |
|
Shares issued upon exercise of share options, for cash |
|
1,392 |
|
|
18 |
|
|
1,816 |
|
|
18 |
|
Transfer of contributed surplus on exercise of options |
|
560 |
|
|
2 |
|
|
730 |
|
|
2 |
|
Shares issued to the public, net of share issuance costs |
|
58,903 |
|
|
— |
|
|
78,846 |
|
|
— |
|
Balance end of period |
|
$ |
3,135,955 |
|
|
$ |
3,007,944 |
|
|
$ |
3,135,955 |
|
|
$ |
3,007,944 |
|
|
|
|
|
|
|
|
|
|
Treasury
stock |
|
|
|
|
|
|
|
|
Balance beginning of
period |
|
$ |
(8,314 |
) |
|
$ |
(9,269 |
) |
|
$ |
(8,662 |
) |
|
$ |
(10,104 |
) |
Purchase of treasury stock (Note 12(b)) |
|
(3,679 |
) |
|
— |
|
|
(3,679 |
) |
|
— |
|
Shares redeemed upon exercise of restricted share units |
|
406 |
|
|
456 |
|
|
754 |
|
|
1,291 |
|
Balance end of period |
|
$ |
(11,587 |
) |
|
$ |
(8,813 |
) |
|
$ |
(11,587 |
) |
|
$ |
(8,813 |
) |
|
|
|
|
|
|
|
|
|
Contributed
surplus |
|
|
|
|
|
|
|
|
Balance beginning of
period |
|
$ |
2,628,820 |
|
|
$ |
2,621,866 |
|
|
$ |
2,627,441 |
|
|
$ |
2,620,799 |
|
Share based payments |
|
2,221 |
|
|
2,115 |
|
|
4,118 |
|
|
4,017 |
|
Acquisition of non-controlling interest (Note 11) |
|
4,171 |
|
|
— |
|
|
4,171 |
|
|
— |
|
Shares redeemed upon exercise of restricted share units |
|
(406 |
) |
|
(456 |
) |
|
(754 |
) |
|
(1,291 |
) |
Transfer to share capital on exercise of options |
|
(560 |
) |
|
(2 |
) |
|
(730 |
) |
|
(2 |
) |
Balance end of period |
|
$ |
2,634,246 |
|
|
$ |
2,623,523 |
|
|
$ |
2,634,246 |
|
|
$ |
2,623,523 |
|
|
|
|
|
|
|
|
|
|
Accumulated other
comprehensive loss |
|
|
|
|
|
|
|
|
Balance beginning of
period |
|
$ |
(30,062 |
) |
|
$ |
(24,693 |
) |
|
$ |
(28,966 |
) |
|
$ |
(24,494 |
) |
Other comprehensive income for the period |
|
1,796 |
|
|
953 |
|
|
700 |
|
|
754 |
|
Balance end of period |
|
$ |
(28,266 |
) |
|
$ |
(23,740 |
) |
|
$ |
(28,266 |
) |
|
$ |
(23,740 |
) |
|
|
|
|
|
|
|
|
|
Deficit |
|
|
|
|
|
|
|
|
Balance beginning of
period |
|
$ |
(2,234,747 |
) |
|
$ |
(2,337,418 |
) |
|
$ |
(2,229,867 |
) |
|
$ |
(2,310,453 |
) |
Net earnings (loss) attributable to shareholders of the
Company |
|
45,618 |
|
|
12,151 |
|
|
40,738 |
|
|
(14,814 |
) |
Balance end of period |
|
$ |
(2,189,129 |
) |
|
$ |
(2,325,267 |
) |
|
$ |
(2,189,129 |
) |
|
$ |
(2,325,267 |
) |
Total equity
attributable to shareholders of the Company |
|
$ |
3,541,219 |
|
|
$ |
3,273,647 |
|
|
$ |
3,541,219 |
|
|
$ |
3,273,647 |
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests |
|
|
|
|
|
|
|
|
Balance beginning of
period |
|
$ |
58,711 |
|
|
$ |
63,007 |
|
|
$ |
59,304 |
|
|
$ |
63,414 |
|
Net loss attributable to non-controlling interests |
|
(1,916 |
) |
|
(2,969 |
) |
|
(2,509 |
) |
|
(3,376 |
) |
Acquisition of non-controlling interest (Note 11) |
|
(11,672 |
) |
|
— |
|
|
(11,672 |
) |
|
— |
|
Contributions from non-controlling interests |
|
301 |
|
|
219 |
|
|
301 |
|
|
219 |
|
Balance end of period |
|
$ |
45,424 |
|
|
$ |
60,257 |
|
|
$ |
45,424 |
|
|
$ |
60,257 |
|
Total
equity |
|
$ |
3,586,643 |
|
|
$ |
3,333,904 |
|
|
$ |
3,586,643 |
|
|
$ |
3,333,904 |
|
Eldorado Gold (NYSE:EGO)
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