VANCOUVER, British Columbia, July 27, 2023
(GLOBE NEWSWIRE) -- Eldorado Gold Corporation (“Eldorado” or “the
Company”) today reports the Company’s financial and operational
results for the second quarter of 2023. For further information,
please see the Company’s Consolidated Financial Statements and
Management’s Discussion and Analysis ("MD&A") filed on SEDAR+
at www.sedarplus.com under the Company’s profile.
Second Quarter
2023 Highlights
Operations
- Gold production:
109,435 ounces, compared to 113,462 ounces in Q2 2022, a 4%
decrease from Q2 2022 as a result of lower throughput at Lamaque
due to the wildfires in the region and lower average gold grade and
recoveries at Olympias.
- Gold sales:
110,134 ounces at an average realized gold price per ounce
sold1 of $1,953, compared to 107,631 ounces at an
average realized gold price per ounce sold of $1,849 in Q2 2022.
Gold sales increased 2% from Q2 2022 primarily a result of an
increase in production at Kisladag.
- Production costs:
$117.0 million, compared to $109.3 million in Q2 2022. The increase
was primarily due to higher royalty expense and increased sales
volumes.
- Cash operating
costs1: $791 per ounce gold
sold, compared to $789 per ounce gold sold in Q2 2022. Cash
operating costs increased from Q2 2022 primarily as a result of
lower by-product credits.
- All-in sustaining costs
("AISC")1: $1,296 per ounce
sold, compared to $1,270 per ounce sold in Q2 2022, primarily
reflecting the increase in cash operating costs per ounce sold and
slightly offset by lower sustaining capital expenditures.
- Total capital
expenditures: $99.4 million, including $42.6 million of
growth capital1 invested at Skouries, with activity
focused on mobilization, procurement and advancement of contracts.
Growth capital invested at the operating mines totalled $29.0
million and was primarily related to Kisladag waste stripping to
support mine life extension and construction of the first phase of
the North Heap Leach Pad. Sustaining
capital1 totalled $26.1 million,
including $16.2 million at Lamaque for underground development,
equipment rebuilds, and the expansion of the tailing management
facility.
- Production and cost
outlook: The Company is maintaining its 2023 annual gold
production guidance and cost guidance. Gold production is expected
to be 475,000 - 515,000 ounces of gold. Cash operating costs per
ounce sold are expected to be $760 to $860, total operating costs
of $860 to $960 per ounce sold and AISC per ounce sold of $1,190 to
$1,290.
Financial
- Revenue: $229.9
million in Q2 2023, an increase of 8% from $213.4 million in Q2
2022, primarily due to higher sales volumes, and higher average
realized gold price.
- Net cash generated from
operating activities from continuing operations: $75.3
million compared to $27.0 million in Q2 2022, primarily as a
result of higher gold sales volumes and higher average realized
prices.
- Cash flow from operating
activities before changes in working
capital2:
$82.4 million in Q2 2023, compared to $49.2 million in Q2 2022,
primarily driven by higher sales volumes, lower finance costs and
lower income taxes paid.
- Cash, cash equivalents and
term deposits: $456.6 million, as at June 30, 2023.
Cash increased by $194.7 million from March 31, 2023, primarily as
a result of a strategic equity investment ($61.3 million) by the
European Bank for Reconstruction and Development ("EBRD") and a
bought deal financing ($101.1 million) that were both completed
during the quarter.
- Net earnings
(loss): Net earnings of $1.5 million, or $0.01 earnings
per share, compared to net loss of $22.9 million or $0.12 loss per
share in Q2 2022. Higher net earnings in Q2 2023, compared to Q2
2022, is primarily a result of higher gold sales, higher average
realized gold prices, foreign exchange gain and lower finance
costs.
- Adjusted net earnings
before interest, taxes, depreciation and amortization ("Adjusted
EBITDA")2: $106.8
million, compared to $88.5 million in Q2 2022. The increase was
primarily driven by increased gold sales, coupled with lower
finance costs.
- Adjusted net earnings
(loss)2:
$16.1 million or $0.09 earnings per share, compared to net earnings
of $13.6 million or $0.07 earnings per share in Q2 2022. Adjusted
net earnings in Q2 2023 added back a non-cash loss of $21.4 million
on foreign exchange translation of deferred tax balances and
removed a non-cash $8.4 million gain on derivative instruments,
primarily on gold collars entered into during this quarter.
- Free cash
flow2:
Negative $21.7 million compared to negative $62.7 million in Q2
2022. Free cash flow excluding Skouries was $13.2 million compared
to negative $56.9 million in Q2 2022, with the stronger figure this
quarter due primarily to both higher sales volumes and realized
gold price as well as lower tax installments and temporary working
capital movements.
- Project Facility
Drawdowns: Drawdowns on the Skouries Term Facility for Q2
2023 totalled €65.9 million, including the previously reported
initial drawdown of €32.3 million in April 2023.
_______________
1 These financial measures or ratios are non-IFRS
financial measures or ratios. Certain additional disclosure 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 June 30, 2023
MD&A.
Corporate
- Strategic Investment by the
EBRD: On June 14, 2023, Eldorado completed a strategic
investment of CDN $81.5 million ($61.3 million) by the EBRD. In
June the funds were invested in the Skouries project in Northern
Greece, and were credited against the Company’s 20% equity funding
commitment per the terms of the project financing facility that
closed on April 5, 2023.
- Bought Deal: On
June 7, 2023, the Company completed a bought deal offering for
gross proceeds of CDN $135.2 million ($101.1 million). Proceeds
from the offering are expected to be used to fund growth
initiatives across Eldorado's portfolio, including some not
currently contemplated within the Company's five-year plan, as well
as for general corporate and working capital purposes.
- Gold Collar
Contracts: In May 2023, Eldorado entered into a series of
zero-cost gold collar contracts in order to manage potential cash
flow variability during the Skouries construction period.
- Sustainability: On
May 31, 2023, the Company published the 2022 Sustainability Report,
its 11th annual report, detailing our environmental,
social and governance performance.
- Appointed Vice President,
Legal: On July 24, 2023, Tamiko Ohta was appointed as Vice
President, Legal.
Skouries Highlights
- As at June 30, 2023, detailed
engineering is 48% complete and procurement is 62% complete.
- Growth capital invested of $42.6
million in Q2 2023, expected total investment of $240-$260 million
in 2023.
- Mobilized the first major earthwork
initiative for construction of the haul roads to build earthworks
structures.
- Commenced structural steel and
cladding of process plant and foundation construction of primary
crusher.
- On track for commissioning in
mid-2025 and commercial production at the end of 2025.
Transitioned to full construction in Q2 2023
with finalization of the project financing. Capital investment in
Q2 2023 continued to focus on early construction works, engineering
and procurement. Underground development advanced the west decline
while mobilization occurred related to the first major earthwork
initiative for construction haul roads to build earthworks
structures. Upcoming milestones in 2023 include the mobilization of
major construction contracts for concrete, finalizing the awards of
the remaining major procurement and contract packages to 90%
completion, and advancing detailed engineering to 90%
completion.
_______________
2 These financial measures or ratios are non-IFRS
financial measures or ratios. Certain additional disclosure 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 June 30, 2023
MD&A.
“During the quarter, both Kisladag and Lamaque
demonstrated resiliency in the face of extraordinary
weather-related events,” said George Burns, Eldorado Gold’s
President and CEO. “Starting in late May, wildfires in the Abitibi
region impacted operations at Lamaque. The safety of our employees
and contractors is our top priority and a number of shifts were
suspended. Our team took the opportunity to re-sequence the
maintenance schedule and devised an alternative route to safely get
employees to the Triangle underground that has resulted in minimal
impact to expected production for the year. During the month of May
at Kisladag, the region experienced heavy rainfall, and despite the
impact, the team safely delivered on its key milestones during the
quarter which included successfully completing the commissioning of
the new agglomeration circuit and rotating the high-pressure
grinding rolls for the first time.”
“At Olympias, I am pleased to report that the
team delivered on a number of key productivity initiatives
including implementing ventilation on demand and bulk emulsion
blasting during the quarter,” continued Burns. “Further, the
substation is now energized, and in early July, the ventilation
fans were able to start, which is expected to not only improve our
energy efficiency and health and safety of our employees, but also
increase the number of development headings we can effectively work
in. I see this as the inflection point that we have been working
towards over the past several years through our transformation
efforts, which we expect will give us the ability to drive
increased tonnage and production going forward. During the quarter,
as we worked to finalize the implementation of these initiatives at
Olympias which were expected earlier in the year, our mine
sequencing was impacted which resulted in lower grades impacting
gold and by-product production. That, in combination with lower
realized zinc by-product prices and higher treatment charges,
resulted in much higher all-in sustaining costs. We expect these
costs to trend downwards as we realize the benefits of our
productivity initiatives and sequence back into higher grade stopes
in the second half of the year, consistent with our 2023 Olympias
guidance.”
“In sustainability, Eldorado released its
11th Annual Sustainability Report in late May
highlighting our environmental, social and governance performance
over the past year,” said Burns. “Further, our team in Greece
completed their first verification against the Mining Association
of Canada’s ‘Towards Sustainable Mining’ protocols. They achieved
“Triple A” ratings across all indicators for Tailings Management
and Biodiversity, underlining our commitment to responsible mining
practices. At Lamaque, despite the wildfires, we took delivery of
our first electric underground haul truck, marking the first of its
kind in Quebec. Once fully operational, we expect electric trucks
at Lamaque to both mitigate our GHG emissions and support lower
operating costs due to anticipated productivity improvements.”
Consolidated Financial and Operational
Highlights
|
|
3 months ended June 30,
|
|
|
6 months ended June 30,
|
|
|
Continuing operations
(4) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Revenue |
$ |
229.9 |
|
|
$ |
213.4 |
|
|
$ |
459.2 |
|
|
$ |
408.1 |
|
|
Gold produced (oz) (5) |
|
109,435 |
|
|
|
113,462 |
|
|
|
220,944 |
|
|
|
206,671 |
|
|
Gold sold (oz) |
|
110,134 |
|
|
|
107,631 |
|
|
|
219,951 |
|
|
|
202,103 |
|
|
Average realized gold price ($/oz sold) (2) |
$ |
1,953 |
|
|
$ |
1,849 |
|
|
$ |
1,943 |
|
|
$ |
1,868 |
|
|
Production costs (5) |
|
117.0 |
|
|
|
109.3 |
|
|
|
228.2 |
|
|
|
213.9 |
|
|
Cash operating costs ($/oz sold) (2,3,5) |
|
791 |
|
|
|
789 |
|
|
|
784 |
|
|
|
810 |
|
|
Total cash costs ($/oz sold) (2,3,5) |
|
928 |
|
|
|
879 |
|
|
|
893 |
|
|
|
908 |
|
|
All-in sustaining costs ($/oz sold) (2,3,5) |
|
1,296 |
|
|
|
1,270 |
|
|
|
1,252 |
|
|
|
1,306 |
|
|
Net earnings (loss) for the period (1,5) |
|
0.9 |
|
|
|
(25.3 |
) |
|
|
20.2 |
|
|
|
(342.9 |
) |
|
Net earnings (loss) per share – basic ($/share)
(1,5) |
|
0.00 |
|
|
|
(0.14 |
) |
|
|
0.11 |
|
|
|
(1.88 |
) |
|
Net earnings (loss) per share – diluted ($/share)
(1,5) |
|
0.00 |
|
|
|
(0.14 |
) |
|
|
0.11 |
|
|
|
(1.88 |
) |
|
Net earnings (loss) for the period continuing operations
(1,5) |
|
1.5 |
|
|
|
(22.9 |
) |
|
|
20.9 |
|
|
|
(62.6 |
) |
|
Net earnings (loss) per share continuing operations – basic
($/share)(1,4,5) |
|
0.01 |
|
|
|
(0.12 |
) |
|
|
0.11 |
|
|
|
(0.34 |
) |
|
Net earnings (loss) per share continuing operations – diluted
($/share)(1,4,5) |
|
0.01 |
|
|
|
(0.12 |
) |
|
|
0.11 |
|
|
|
(0.34 |
) |
|
Adjusted net earnings (loss) continuing operations - basic
(1,2,4,5) |
|
16.1 |
|
|
|
13.6 |
|
|
|
34.6 |
|
|
|
(5.7 |
) |
|
Adjusted net earnings (loss) per share continuing operations
($/share)(1,2,4,5) |
|
0.09 |
|
|
|
0.07 |
|
|
|
0.19 |
|
|
|
(0.03 |
) |
|
Net cash generated from operating activities |
|
75.3 |
|
|
|
27.0 |
|
|
|
115.6 |
|
|
|
62.3 |
|
|
Cash flow from operating activities before changes in working
capital (2,5) |
|
82.4 |
|
|
|
49.2 |
|
|
|
175.6 |
|
|
|
98.5 |
|
|
Free cash flow (2) |
|
(21.7 |
) |
|
|
(62.7 |
) |
|
|
(56.7 |
) |
|
|
(89.5 |
) |
|
Free cash flow excluding Skouries (2) |
|
13.2 |
|
|
|
(56.9 |
) |
|
|
(6.7 |
) |
|
|
(79.1 |
) |
|
Cash, cash equivalents and term deposits |
|
456.6 |
|
|
|
370.0 |
|
|
|
456.6 |
|
|
|
370.0 |
|
|
Total assets |
|
4,742.1 |
|
|
|
4,504.8 |
|
|
|
4,742.1 |
|
|
|
4,504.8 |
|
|
Debt |
|
546.0 |
|
|
|
497.2 |
|
|
|
546.0 |
|
|
|
497.2 |
|
(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' of our MD&A for
explanations and discussions of these non-IFRS financial measures
or ratios.
(3) Revenues from silver, lead and zinc sales are
off-set against cash operating costs.
(4) Amounts presented for 2023 and 2022 are from
continuing operations only and exclude the Romania segment.
See Note 4 of our condensed consolidated interim financial
statements for the three and six months ended June 30,
2023.
(5) A concentrate weight-scale calibration
correction at Olympias has resulted in an adjustment to ending
inventory as at March 31, 2023 of 1,024 gold ounces. Gold
production in Q1 2023 has been reduced by this amount, resulting in
additional production costs of $1.3 million and additional
depreciation expense of $0.7 million for Q1 2023.
Total revenue was $229.9 million in Q2 2023, an
increase of 8% from $213.4 million in Q2 2022 and was comparable to
$229.4 million earned in Q1 2023. Total revenue was $459.2 million
in the six months ended June 30, 2023, an increase from $408.1
million in the six months ended June 30, 2022. The increases
in both three and six-month periods were primarily due to higher
sales volumes, and higher average realized gold price.
Production costs increased to $117.0 million in
Q2 2023 from $109.3 million in Q2 2022 and to $228.2 million in the
six months ended June 30, 2023 from $213.9 million in the six
months ended June 30, 2022. Increases in both periods were
primarily due to higher royalty expense and increased sales
volumes.
Cash operating costs averaged $791 per ounce
sold in Q2 2023, an increase from $789 in Q2 2022, which is
primarily due to lower by-product credits. Cash operating costs per
ounce sold averaged $784 in the six months ended June 30,
2023, a decrease from $810 in the six months ended June 30,
2022, primarily due to an increase in volume sold.
AISC per ounce sold averaged $1,296 in Q2 2023,
an increase from $1,270 in Q2 2022, due to increases in royalties
and G&A costs per ounce sold, partially offset by lower
sustaining capital expenditures. AISC per ounce sold averaged
$1,252 in the six months ended June 30, 2023, a decrease from
$1,306 in the six months ended June 30, 2022, primarily
reflecting the decrease in cash operating costs per ounce sold and
lower sustaining capital expenditures.
We reported net earnings attributable to
shareholders from continuing operations of $1.5 million ($0.01
earnings per share) in Q2 2023 compared to net loss of $22.9
million ($0.12 loss per share) in Q2 2022 and net earnings of $20.9
million ($0.11 earnings per share) in the six months ended
June 30, 2023 compared to net loss of $62.6 million ($0.34
loss per share) in the six months ended June 30, 2022. The
higher net earnings this quarter, compared to Q2 2022, was driven
by gains on both derivative instruments and foreign exchange,
partially offset by higher income tax expense. The higher net
earnings in the six months ended June 30, 2023 was primarily
due to higher operating income from the increase in gold sales,
lower mine standby costs and writedown of assets, gains on
derivatives and foreign exchange, and lower income tax expense.
Adjusted net earnings was $16.1 million ($0.09
earnings per share) in Q2 2023 compared to adjusted net earnings of
$13.6 million ($0.07 per share) in Q2 2022. Adjusted net earnings
in Q2 2023 removed a $8.4 million gain on derivative instruments,
primarily on gold collars entered into during this quarter, while
adjusted net earnings in Q2 2022 added back a $14.4 million loss on
redemption option derivative for the senior
notes .
Quarterly Operations Update
|
|
3 months ended June 30,
|
|
|
6 months ended June 30,
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ounces produced |
|
109,435 |
|
|
|
113,462 |
|
|
|
220,944 |
|
|
|
206,671 |
|
|
Ounces sold |
|
110,134 |
|
|
|
107,631 |
|
|
|
219,951 |
|
|
|
202,103 |
|
|
Production costs |
$ |
117.0 |
|
|
$ |
109.3 |
|
|
$ |
228.2 |
|
|
$ |
213.9 |
|
|
Cash operating costs ($/oz sold) (1,2) |
$ |
791 |
|
|
$ |
789 |
|
|
$ |
784 |
|
|
$ |
810 |
|
|
All-in sustaining costs ($/oz sold) (1,2) |
$ |
1,296 |
|
|
$ |
1,270 |
|
|
$ |
1,252 |
|
|
$ |
1,306 |
|
|
Sustaining capital expenditures (2) |
$ |
26.1 |
|
|
$ |
32.3 |
|
|
$ |
52.1 |
|
|
$ |
56.8 |
|
|
Kisladag |
|
|
|
|
|
Ounces produced |
|
34,180 |
|
|
|
27,974 |
|
|
|
71,340 |
|
|
|
57,753 |
|
|
Ounces sold |
|
32,280 |
|
|
|
26,881 |
|
|
|
69,673 |
|
|
|
56,659 |
|
|
Production costs |
$ |
27.5 |
|
|
$ |
25.1 |
|
|
$ |
58.0 |
|
|
$ |
55.2 |
|
|
Cash operating costs ($/oz sold) (1,2) |
$ |
687 |
|
|
$ |
798 |
|
|
$ |
699 |
|
|
$ |
831 |
|
|
All-in sustaining costs ($/oz sold) (1,2) |
$ |
937 |
|
|
$ |
1,090 |
|
|
$ |
904 |
|
|
$ |
1,087 |
|
|
Sustaining capital expenditures (2) |
$ |
2.8 |
|
|
$ |
4.3 |
|
|
$ |
5.0 |
|
|
$ |
6.8 |
|
|
Lamaque |
|
|
|
|
|
Ounces produced |
|
38,745 |
|
|
|
46,917 |
|
|
|
76,629 |
|
|
|
80,294 |
|
|
Ounces sold |
|
39,904 |
|
|
|
45,655 |
|
|
|
78,547 |
|
|
|
79,780 |
|
|
Production costs |
$ |
28.3 |
|
|
$ |
31.4 |
|
|
$ |
57.5 |
|
|
$ |
58.7 |
|
|
Cash operating costs ($/oz sold) (1,2) |
$ |
676 |
|
|
$ |
657 |
|
|
$ |
698 |
|
|
$ |
703 |
|
|
All-in sustaining costs ($/oz sold) (1,2) |
$ |
1,117 |
|
|
$ |
985 |
|
|
$ |
1,166 |
|
|
$ |
1,069 |
|
|
Sustaining capital expenditures (2) |
$ |
16.2 |
|
|
$ |
13.5 |
|
|
$ |
34.1 |
|
|
$ |
26.5 |
|
|
Efemcukuru |
|
|
|
|
|
Ounces produced |
|
22,644 |
|
|
|
22,792 |
|
|
|
42,572 |
|
|
|
43,849 |
|
|
Ounces sold |
|
22,466 |
|
|
|
23,428 |
|
|
|
42,217 |
|
|
|
44,810 |
|
|
Production costs |
$ |
20.4 |
|
|
$ |
20.6 |
|
|
$ |
38.1 |
|
|
$ |
37.5 |
|
|
Cash operating costs ($/oz sold) (1,2) |
$ |
697 |
|
|
$ |
706 |
|
|
$ |
777 |
|
|
$ |
678 |
|
|
All-in sustaining costs ($/oz sold) (1,2) |
$ |
1,111 |
|
|
$ |
1,180 |
|
|
$ |
1,103 |
|
|
$ |
1,093 |
|
|
Sustaining capital expenditures (2) |
$ |
3.7 |
|
|
$ |
5.9 |
|
|
$ |
5.9 |
|
|
$ |
9.4 |
|
|
Olympias |
|
|
|
|
|
Ounces produced (3) |
|
13,866 |
|
|
|
15,779 |
|
|
|
30,403 |
|
|
|
24,775 |
|
|
Ounces sold |
|
15,484 |
|
|
|
11,667 |
|
|
|
29,514 |
|
|
|
20,854 |
|
|
Production costs (3) |
$ |
40.8 |
|
|
$ |
32.1 |
|
|
$ |
74.6 |
|
|
$ |
62.4 |
|
|
Cash operating costs ($/oz sold) (1,2,3) |
$ |
1,439 |
|
|
$ |
1,446 |
|
|
$ |
1,227 |
|
|
$ |
1,447 |
|
|
All-in sustaining costs ($/oz sold) (1,2,3) |
$ |
2,036 |
|
|
$ |
2,346 |
|
|
$ |
1,797 |
|
|
$ |
2,369 |
|
|
Sustaining capital expenditures (2) |
$ |
3.4 |
|
|
$ |
8.5 |
|
|
$ |
7.1 |
|
|
$ |
14.1 |
|
(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' of our MD&A for
explanations and discussions of these non-IFRS financial measures
or ratios.
(3) A concentrate weight-scale calibration
correction at Olympias has resulted in an adjustment to ending
inventory as at March 31, 2023 of 1,024 gold ounces. Gold
production in Q1 2023 has been reduced by this amount, resulting in
additional production costs of $1.3 million and additional
depreciation expense of $0.7 million for Q1 2023.
Kisladag
Kisladag produced 34,180 ounces of gold in Q2
2023, a 22% increase from 27,974 ounces produced in Q2 2022. The
increase was primarily due to increased tonnes stacked as compared
to Q2 2022, despite challenging adverse weather conditions. Average
grade remained consistent at 0.76 grams per tonne during Q2 2023
and Q2 2022.
Tonnes placed on the heap leach pad in the
quarter continued to benefit from the installation of larger,
higher- capacity conveyors, improving material handling capacity
and belt agglomeration. Improvements in throughput were also due to
the success of a fine ore agglomeration drum added to the crushing
circuit and commissioned during the quarter, which improved
materials handling on the conveying system. These initiatives have
enabled increased recoverable ounces placed on the pad.
Extraordinary rainfall through May and early
June had marginal impact on tonnage stacked however, the excess
water affects the leach kinetics and results in a higher volume of
lower tenor solution to process. It is expected that this
additional solution will be extracted in the third quarter.
Revenue increased to $64.7 million in Q2 2023
from $51.0 million in Q2 2022, reflecting higher sales in the
quarter, and to a lesser extent, an increase in the average
realized gold price.
Production costs increased to $27.5 million in
Q2 2023 from $25.1 million in Q2 2022 primarily due to an increase
in tonnes processed and ounces sold in line with higher production.
Royalty expense was also higher as a result of higher sales volume
and higher average realized gold prices. Compared to prior year, we
saw decreases in unit costs of fuel and electricity in Turkiye, and
coupled with higher sales volumes, the resulting cash operating
costs per ounce decreased to $687 in Q2 2023 from $798 in Q2
2022.
Depreciation expense increased to $18.1 million
in Q2 2023 from $15.5 million in Q2 2022 in line with higher gold
sales in the quarter and due to the shorter remaining useful life
of the existing heap leach pad and adsorption-desorption and
recovery ("ADR") plant.
AISC per ounce sold decreased to $937 in Q2 2023
from $1,090 in Q2 2022, primarily due to the decrease in cash
operating costs per ounce sold and a decrease in sustaining capital
expenditures.
Sustaining capital expenditures of $2.8 million
in Q2 2023 and $5.0 million in the six months ended June 30,
2023 primarily included equipment rebuilds and mine equipment
purchases. Growth capital investments of $18.7 million and $37.3
million in the three and six months ended June 30, 2023
included waste stripping to support the mine life extension and
construction of the first phase of the North heap leach pad, which
was commissioned in July 2023.
For 2023, production guidance at Kisladag is
forecasted to be 160,000 to 170,000 ounces of gold. Production is
expected to improve over the course of the second half of the year
as we realize full effectiveness from the upgraded materials
handling equipment. Our optimization efforts are expected to drive
increased stacking rates. In addition, we expect to recover the
ounces that were delayed as a result of the extraordinary rainfall
in May and early June.
Lamaque
Lamaque produced 38,745 ounces of gold in Q2
2023, a decrease of 17% from 46,917 ounces in Q2 2022. The decrease
was primarily due to lower ore throughput and slightly lower grade.
Tonnes processed were reduced as a result of forest fires in the
region which caused poor air quality resulting in a number of
suspended shifts in the Triangle underground in June. The
processing facility was able to keep operating on stockpile
material and then brought forward scheduled maintenance from July
into June to minimize unplanned downtime. Average grade decreased
to 6.43 grams per tonne in Q2 2023 from 6.63 grams per tonne in Q2
2022. Underground development of high-grade stopes progressed well
during the quarter.
Revenue decreased to $78.6 million in Q2 2023
from $85.0 million in Q2 2022 primarily due to lower ounces sold as
a result of lower production, partially offset by higher average
realized gold prices.
Production costs decreased to $28.3 million in
Q2 2023 from $31.4 million in Q2 2022, primarily due to lower
volume sold in the quarter. Cash operating costs per ounce sold
rose to $676 in Q2 2023 from $657 in Q2 2022 as a result of lower
gold sold, partially offset by cost savings from a weaker Canadian
dollar as compared to prior year.
AISC per ounce sold increased to $1,117 in Q2
2023 from $985 in Q2 2022 primarily due to higher cash operating
cost per ounce, lower gold sold, and higher sustaining capital
expenditure in the quarter.
Sustaining capital expenditures of $16.2 million
in Q2 2023 and $34.1 million in the six months ended June 30, 2023
primarily included underground development, equipment rebuilds, and
expansion of the tailings management facility. Growth capital
investment of $4.9 million in Q2 2023 and $7.6 million in the six
months ended June 30, 2023 were primarily related to resource
conversion drilling at Ormaque and spending on other exploration
projects.
The second half of the year is expected to be
stronger as both processing rates and grade increase. In 2023,
production guidance at Lamaque is forecasted to be 170,000 to
180,000 ounces of gold.
Efemcukuru
Efemcukuru produced 22,644 payable ounces of
gold in Q2 2023, a 1% decrease from 22,792 payable ounces in Q2
2022. The decrease was primarily due to a slight decrease in grade
to 5.85 grams per tonne in Q2 2023 from 5.96 grams per tonne in Q2
2022. This impact was almost entirely offset by higher throughput
in the quarter due to increased mill availability, further
demonstrating consistency in mill utilization.
Revenue increased to $44.1 million in Q2 2023
from $41.4 million in Q2 2022. Lower payable ounces sold was offset
by a higher average realized gold price recorded during Q2
2023.
Production costs decreased slightly to $20.4
million in Q2 2023 from $20.6 million in Q2 2022 primarily due to
lower sales in the quarter and decreasing unit costs of
consumables, and partially offset by higher royalty expense due to
higher average realized gold prices. Lower unit costs of fuel and
electricity resulted in a decrease in cash operating costs per
ounce sold to $697 in Q2 2023 from $706 in Q2 2022.
AISC per ounce sold decreased to $1,111 in Q2
2023 from $1,180 in Q2 2022. The decrease was primarily due to the
increase in cash operating costs per ounce sold and was partly
offset by lower sustaining capital expenditure.
Sustaining capital expenditures of $3.7 million
in Q2 2023 and $5.9 million in the six months ended June 30, 2023
were primarily underground development and equipment rebuilds. The
development of the Mine Rock Storage Facility ("MRSF") southern
expansion commenced this quarter. Growth capital investment of $3.5
million in the six months ended June 30, 2023 included capital
development, resource conversion drilling at Kokarpinar and
resource expansion at Bati.
Production for the third and fourth quarter are
expected to increase slightly over the second quarter as processing
rates increase. For 2023, production guidance at Efemcukuru is
forecast to be 80,000 to 90,000 ounces of gold.
Olympias
Olympias produced 13,866 ounces of gold in Q2
2023, a 12% decrease from 15,779 ounces in Q2 2022 and primarily
reflected lower average gold grade due to changes in stope
sequencing in the quarter as we await benefits of transformation
initiatives that were completed in early July. This was partially
offset by higher mill throughput that was achieved this quarter as
we continue to ramp up productivity. Q2 2023 production of
by-product metals, while lower than planned, increased as compared
to Q2 2022 and Q1 2023 across silver, lead, and zinc as a result of
higher average grades as planned in both the three and six months
ended periods as well as higher throughput.
In line with our 2023 guidance, key
transformation initiatives are on-going as the mine continues to
ramp up productivity. Bulk emulsion blasting was commissioned in
June, which we expect will allow for further efficiencies
underground. Additionally, the newly constructed electrical
substation was energized in June and commissioned in early July,
following a successful shutdown to tie-in the expanded ventilation
system. Increased ventilation capacity is expected to support
productivity improvements in the lower parts of the mine and
increase access to stopes with higher grades of base metals. These
initiatives, while positive, were delayed from planned early Q1
implementation. These delays are the primary cause for mine plan
sequencing and lower mine or Flats Zone development which have
contributed to lower by-product volumes than planned. Stoping
sequence and Flats development are expected to gradually recover
over the balance of 2023.
Due to a scale calibration correction that was
identified during this quarter, we made a one-time adjustment
lowering Q1 2023 gold production by 1,024 ounces.
Revenue increased to $42.4 million in Q2 2023
from $36.3 million in Q2 2022 primarily as a result of higher gold
sales and higher average realized gold price, which includes the
impacts of upward revaluations of provisional pricing in Q2 2023
due to increases in gold price during the quarter. Sales of base
metals were slightly lower in Q2 2023 due to the timing of silver
and lead concentrate shipments in early July.
Production costs increased to $40.8 million in
Q2 2023 from $32.1 million in Q2 2022 reflecting increased volumes
of gold sales, combined with higher treatment and refining costs
from higher zinc sales. Cash operating costs per ounce sold
decreased to $1,439 in Q2 2023 from $1,446 in Q2 2022, with lower
mining and operating costs per ounce sold nearly offset by lower
revenue from silver and base metal sales (which reduce cash
operating costs as by-product credits). The unit prices of major
consumables continue to fluctuate, with electricity prices
benefiting from subsidies and fuel costs lower as compared to the
prior year, while explosives and cement prices rose slightly.
AISC per ounce sold decreased to $2,036 in Q2
2023 from $2,346 in Q2 2022 primarily due lower sustaining capital
expenditures and direct operating costs per ounce sold, partially
offset by lower by-product credits and higher royalty costs per
ounce sold.
Both cash operating costs and AISC were
unfavorably affected in Q2 2023 by reduced by-product volumes
resulting from the delayed initiatives outlined above, as well as
by lower zinc pricing, high zinc treatment charges, and lower gold
payability for the pyrite concentrates due to concentrate quality,
the latter driven by lower recovery from lower quality ores. The
lower zinc price and payability increased cash costs by
approximately $435 per ounce gold sold in Q2 and the lower silver
grade impacted by-product volume, increased cash costs by
approximately $230 per ounce of gold sold, meanwhile pyrite
concentrate revenue, driven by a higher gold price, slightly offset
the impact on cash costs.
Sustaining capital expenditures of $3.4 million
in Q2 2023 and $7.1 million in the six months ended June 30,
2023 primarily included underground development, expansion of
tailings facilities, the newly commissioned substation, and
underground ventilation fans. Growth capital investment of $3.7
million in Q2 2023 and $3.5 million in the six months ended
June 30, 2023 were primarily related to underground
development.
Gold production is expected to improve over the
second quarter as the productivity initiatives deliver increased
tonnage and higher grades. For 2023, production guidance at
Olympias is forecast to be 60,000 to 75,000 ounces of gold.
Development Project
Skouries
The Skouries project, part of the Kassandra
Mines Complex, is located within the Halkidiki Peninsula of
Northern Greece and is a high-grade gold-copper asset. In December
2021, we published the results of the Skouries Project Feasibility
Study with a 23-year mine life and expected average annual
production of 140,000 ounces of gold and 67 million pounds of
copper. The project is expected to provide an after-tax IRR of 19%
and an NPV (5%) of $1.3 billion with capital costs to complete the
project estimated at $845 million.
Economic activity in Greece is increasing, so
moving efficiently through the commitment phase of the project is
important to continue mitigating cost and schedule pressures. While
we have yet to see material impacts from this economic activity
thus far, we see the keys to ongoing success as maintaining or
improving the pace of contracts awards and continuing to meet the
labour productivity levels estimated in the Feasibility Study Plan
("FS") as construction ramps up. With several major contract awards
expected during Q3 2023, the FS Estimate will update to the Project
Control Budget based on executed contracts and other new
information. We expect to provide updated disclosure by the end of
Q3 2023.
For further information on the Company's
operating results for the second quarter of 2023, please see the
Company’s MD&A filed on SEDAR+ at www.sedarplus.com under
the Company’s profile.
Conference Call
A conference call to discuss the details of the
Company’s Second Quarter 2023 Results will be held by senior
management on Friday, July 28, 2023 at 11:30 AM ET (8:30 AM PT).
The call will be webcast and can be accessed at Eldorado’s website:
www.eldoradogold.com or
via this link:
https://services.choruscall.ca/links/eldoradogold2023q2.html.
|
Conference Call Details |
|
Replay (available until Sept. 1,
2023) |
|
Date: |
July 28, 2023 |
|
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: |
0279 |
|
Toll free: |
1 800 319 4610 |
|
|
|
|
|
|
|
|
|
About Eldorado
Eldorado is a gold and base metals producer with
mining, development and exploration operations in Turkiye, 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).
Contact
Investor Relations
Lynette Gould, VP, Investor Relations
647 271 2827 or 1 888 353 8166
lynette.gould@eldoradogold.com
Media
Chad Pederson, Director, Communications
236 885 6251 or 1 888 353 8166
chad.pederson@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, free cash flow excluding Skouries,
working capital and cash flow from operating activities before
changes in working capital.
Please see the June 30, 2023 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 June 30, 2023
MD&A available on SEDAR+ at www.sedarplus.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:
|
|
|
Q2 2023 |
|
|
|
Q2 2022 |
|
|
|
YTD 2023 |
|
|
|
YTD 2022 |
|
|
Production costs |
$ |
117.0 |
|
|
$ |
109.3 |
|
|
$ |
228.2 |
|
|
$ |
213.9 |
|
|
By-product credits (1) |
|
(17.5 |
) |
|
|
(19.4 |
) |
|
|
(37.8 |
) |
|
|
(37.7 |
) |
|
Royalty expense (2) |
|
(15.1 |
) |
|
|
(9.8 |
) |
|
|
(23.8 |
) |
|
|
(19.8 |
) |
|
Concentrate deductions (3) |
$ |
2.7 |
|
|
$ |
4.8 |
|
|
$ |
5.9 |
|
|
$ |
7.5 |
|
|
Cash operating costs |
$ |
87.1 |
|
|
$ |
84.9 |
|
|
$ |
172.5 |
|
|
$ |
163.7 |
|
|
Gold ounces sold |
|
110,134 |
|
|
|
107,631 |
|
|
|
219,951 |
|
|
|
202,103 |
|
|
Cash operating cost per ounce sold |
$ |
791 |
|
|
$ |
789 |
|
|
$ |
784 |
|
|
$ |
810 |
|
(1) Revenue from silver, lead and zinc
sales.
(2) Included in production costs.
(3) Included in revenue.
Reconciliation of Cash Operating Costs and
Cash Operating Cost per ounce sold, by asset, for the
three months ended June 30,
2023:
|
|
|
Direct operating costs |
|
|
|
By-product credits |
|
|
|
Refining and selling costs |
|
|
|
Inventory change
(1) |
|
|
|
Cash operating costs |
|
|
|
Gold oz sold |
|
|
|
Cash operating cost/oz sold |
|
|
Kisladag |
$ |
27.8 |
|
|
$ |
(0.8 |
) |
|
$ |
0.2 |
|
|
$ |
(4.9 |
) |
|
$ |
22.2 |
|
|
|
32,280 |
|
|
$ |
687 |
|
|
Lamaque |
|
26.8 |
|
|
|
(0.3 |
) |
|
|
0.1 |
|
|
|
0.5 |
|
|
|
27.0 |
|
|
|
39,904 |
|
|
|
676 |
|
|
Efemcukuru |
|
13.5 |
|
|
|
(1.4 |
) |
|
|
3.4 |
|
|
|
0.1 |
|
|
|
15.7 |
|
|
|
22,466 |
|
|
|
697 |
|
|
Olympias |
|
31.8 |
|
|
|
(15.0 |
) |
|
|
6.5 |
|
|
|
(1.0 |
) |
|
|
22.3 |
|
|
|
15,484 |
|
|
|
1,439 |
|
|
Total consolidated |
$ |
99.9 |
|
|
$ |
(17.5 |
) |
|
$ |
10.1 |
|
|
$ |
(5.4 |
) |
|
$ |
87.1 |
|
|
|
110,134 |
|
|
$ |
791 |
|
(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 six
months ended June 30, 2023:
|
|
|
Direct operating costs |
|
|
|
By-product credits |
|
|
|
Refining and selling costs |
|
|
|
Inventory change
(1) |
|
|
|
Cash operating costs |
|
|
|
Gold oz sold |
|
|
|
Cash operating cost/oz sold |
|
|
Kisladag |
$ |
57.9 |
|
|
$ |
(1.6 |
) |
|
$ |
0.3 |
|
|
$ |
(7.9 |
) |
|
$ |
48.7 |
|
|
|
69,673 |
|
|
$ |
699 |
|
|
Lamaque |
|
56.6 |
|
|
|
(0.8 |
) |
|
|
0.2 |
|
|
|
(1.1 |
) |
|
|
54.8 |
|
|
|
78,547 |
|
|
|
698 |
|
|
Efemcukuru |
|
28.8 |
|
|
|
(2.3 |
) |
|
|
6.5 |
|
|
|
(0.1 |
) |
|
|
32.8 |
|
|
|
42,217 |
|
|
|
777 |
|
|
Olympias |
|
58.7 |
|
|
|
(33.1 |
) |
|
|
12.2 |
|
|
|
(1.6 |
) |
|
|
36.2 |
|
|
|
29,514 |
|
|
|
1,227 |
|
|
Total consolidated |
$ |
201.9 |
|
|
$ |
(37.8 |
) |
|
$ |
19.1 |
|
|
$ |
(10.7 |
) |
|
$ |
172.5 |
|
|
|
219,951 |
|
|
$ |
784 |
|
(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 June 30,
2022:
|
|
|
Direct operating costs |
|
|
|
By-product credits |
|
|
|
Refining and selling costs |
|
|
|
Inventory change
(1) |
|
|
|
Cash operating costs |
|
|
|
Gold oz sold |
|
|
|
Cash operating cost/oz sold |
|
|
Kisladag |
$ |
26.1 |
|
|
$ |
(0.7 |
) |
|
$ |
0.2 |
|
|
$ |
(4.1 |
) |
|
$ |
21.5 |
|
|
|
26,881 |
|
|
$ |
798 |
|
|
Lamaque |
|
29.3 |
|
|
|
(0.4 |
) |
|
|
0.1 |
|
|
|
1.0 |
|
|
|
30.0 |
|
|
|
45,655 |
|
|
|
657 |
|
|
Efemcukuru |
|
13.4 |
|
|
|
(0.8 |
) |
|
|
3.5 |
|
|
|
0.5 |
|
|
|
16.5 |
|
|
|
23,428 |
|
|
|
706 |
|
|
Olympias |
|
29.3 |
|
|
|
(17.5 |
) |
|
|
7.3 |
|
|
|
(2.2 |
) |
|
|
16.9 |
|
|
|
11,667 |
|
|
|
1,446 |
|
|
Total consolidated |
$ |
98.1 |
|
|
$ |
(19.4 |
) |
|
$ |
11.0 |
|
|
$ |
(4.8 |
) |
|
$ |
84.9 |
|
|
|
107,631 |
|
|
$ |
789 |
|
(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 six
months ended June 30, 2022:
|
|
|
Direct operating costs |
|
|
|
By-product credits |
|
|
|
Refining and selling costs |
|
|
|
Inventory change
(1) |
|
|
|
Cash operating costs |
|
|
|
Gold oz sold |
|
|
|
Cash operating cost/oz sold |
|
|
Kisladag |
$ |
47.4 |
|
|
$ |
(1.5 |
) |
|
$ |
0.7 |
|
|
$ |
0.5 |
|
|
$ |
47.1 |
|
|
|
56,659 |
|
|
$ |
831 |
|
|
Lamaque |
|
55.8 |
|
|
|
(0.7 |
) |
|
|
0.1 |
|
|
|
0.9 |
|
|
|
56.1 |
|
|
|
79,780 |
|
|
|
703 |
|
|
Efemcukuru |
|
25.9 |
|
|
|
(1.7 |
) |
|
|
5.9 |
|
|
|
0.3 |
|
|
|
30.4 |
|
|
|
44,810 |
|
|
|
678 |
|
|
Olympias |
|
55.2 |
|
|
|
(33.8 |
) |
|
|
12.5 |
|
|
|
(3.9 |
) |
|
|
30.2 |
|
|
|
20,854 |
|
|
|
1,447 |
|
|
Total consolidated |
$ |
184.3 |
|
|
$ |
(37.7 |
) |
|
$ |
19.3 |
|
|
$ |
(2.1 |
) |
|
$ |
163.7 |
|
|
|
202,103 |
|
|
$ |
810 |
|
(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:
|
|
|
Q2 2023 |
|
|
Q2 2022 |
|
|
YTD 2023 |
|
|
YTD 2022 |
|
|
Cash operating costs |
$ |
87.1 |
|
$ |
84.9 |
|
$ |
172.5 |
|
$ |
163.7 |
|
|
Royalty expense (1) |
|
15.1 |
|
|
9.8 |
|
|
23.8 |
|
|
19.8 |
|
|
Total cash costs |
$ |
102.2 |
|
$ |
94.7 |
|
$ |
196.3 |
|
$ |
183.6 |
|
|
Gold ounces sold |
|
110,134 |
|
|
107,631 |
|
|
219,951 |
|
|
202,103 |
|
|
Total cash costs per ounce sold |
$ |
928 |
|
$ |
879 |
|
$ |
893 |
|
$ |
908 |
|
(1) Included in revenue.
Reconciliation of Total Cash Costs to All-in
Sustaining Costs and All-in Sustaining Costs per ounce
sold:
|
|
|
Q2 2023 |
|
|
Q2 2022 |
|
|
YTD 2023 |
|
|
YTD 2022 |
|
|
Total cash costs |
$ |
102.2 |
|
$ |
94.7 |
|
$ |
196.3 |
|
$ |
183.6 |
|
|
Corporate and allocated G&A |
|
11.3 |
|
|
7.4 |
|
|
21.2 |
|
|
18.8 |
|
|
Exploration and evaluation costs |
|
0.7 |
|
|
0.6 |
|
|
1.0 |
|
|
1.3 |
|
|
Reclamation costs and amortization |
|
2.4 |
|
|
1.8 |
|
|
4.7 |
|
|
3.4 |
|
|
Sustaining capital expenditure |
|
26.1 |
|
|
32.3 |
|
|
52.1 |
|
|
56.8 |
|
|
AISC |
$ |
142.7 |
|
$ |
136.7 |
|
$ |
275.3 |
|
$ |
263.9 |
|
|
Gold ounces sold |
|
110,134 |
|
|
107,631 |
|
|
219,951 |
|
|
202,103 |
|
|
AISC per ounce sold |
$ |
1,296 |
|
$ |
1,270 |
|
$ |
1,252 |
|
$ |
1,306 |
|
Reconciliation of general and administrative
expenses included in All-in Sustaining Costs:
|
|
|
Q2 2023 |
|
|
Q2 2022 |
|
|
YTD 2023 |
|
|
YTD 2022 |
|
|
General and administrative expenses (from
consolidated statement of operations) |
$ |
9.4 |
|
$ |
8.5 |
|
$ |
20.0 |
|
$ |
16.5 |
|
|
Add: |
|
|
|
|
|
Share-based payments expense |
|
2.7 |
|
|
0.3 |
|
|
3.5 |
|
|
4.0 |
|
|
Employee benefit plan expense from corporate and operating gold
mines |
|
0.7 |
|
|
0.8 |
|
|
2.2 |
|
|
2.7 |
|
|
Less: |
|
|
|
|
|
General and administrative expenses related to non-gold mines and
in-country offices |
|
(0.1 |
) |
|
(0.1 |
) |
|
(0.5 |
) |
|
(0.3 |
) |
|
Depreciation in G&A |
|
(0.8 |
) |
|
(0.7 |
) |
|
(1.6 |
) |
|
(1.1 |
) |
|
Business development |
|
(0.4 |
) |
|
(0.5 |
) |
|
(2.3 |
) |
|
(1.0 |
) |
|
Development projects |
|
(0.1 |
) |
|
(1.0 |
) |
|
(0.3 |
) |
|
(2.1 |
) |
|
Adjusted corporate general and administrative
expenses |
$ |
11.4 |
|
$ |
7.4 |
|
$ |
21.1 |
|
$ |
18.6 |
|
|
Regional general and administrative costs allocated to gold
mines |
|
(0.1 |
) |
|
— |
|
|
0.1 |
|
|
0.2 |
|
|
Corporate and allocated general and administrative expenses
per AISC |
$ |
11.3 |
|
$ |
7.4 |
|
$ |
21.2 |
|
$ |
18.8 |
|
Reconciliation of exploration costs included
in All-in Sustaining Costs:
|
|
|
Q2 2023 |
|
|
Q2 2022 |
|
|
YTD 2023 |
|
|
YTD 2022 |
|
|
Exploration and evaluation expense (from
consolidated statement of operations)(1) |
$ |
4.6 |
|
$ |
3.4 |
|
$ |
10.5 |
|
$ |
8.4 |
|
|
Add: |
|
|
|
|
|
Capitalized sustaining exploration cost related to operating gold
mines |
|
0.7 |
|
|
0.6 |
|
|
1.0 |
|
|
1.3 |
|
|
Less: |
|
|
|
|
|
Exploration and evaluation expenses related to non-gold mines and
other sites |
|
(4.6 |
) |
|
(3.4 |
) |
|
(10.5 |
) |
|
(8.4 |
) |
|
Exploration and evaluation costs per AISC |
$ |
0.7 |
|
$ |
0.6 |
|
$ |
1.0 |
|
$ |
1.3 |
|
(1) Amounts presented for 2023 and 2022 are from
continuing operations only and exclude the Romania segment.
See Note 4 of our condensed consolidated interim financial
statements for the three and six months ended June 30,
2023.
Reconciliation of reclamation costs and
amortization included in All-in Sustaining Costs:
|
|
|
Q2 2023 |
|
|
Q2 2022 |
|
|
YTD 2023 |
|
|
YTD 2022 |
|
|
Asset retirement obligation accretion (from notes
to the condensed consolidated interim financial statements) |
$ |
1.1 |
|
$ |
0.5 |
|
$ |
2.1 |
|
$ |
1.0 |
|
|
Add: |
|
|
|
|
|
Depreciation related to asset retirement obligation assets |
|
1.5 |
|
|
1.4 |
|
|
2.9 |
|
|
2.6 |
|
|
Less: |
|
|
|
|
|
Asset retirement obligation accretion related to non-gold mines and
other sites |
|
(0.2 |
) |
|
(0.1 |
) |
|
(0.4 |
) |
|
(0.1 |
) |
|
Reclamation costs and amortization per AISC |
$ |
2.4 |
|
$ |
1.8 |
|
$ |
4.7 |
|
$ |
3.4 |
|
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 June 30,
2023:
|
|
Cash operating costs |
Royalties |
Total cash costs |
|
Corporate & allocated G&A |
|
Exploration costs |
Reclamation costs and amortization |
Sustaining capital |
Total
AISC |
Gold oz sold |
Total AISC/
oz sold |
|
Kisladag |
$ |
22.2 |
$ |
4.5 |
$ |
26.7 |
$ |
— |
|
$ |
— |
$ |
0.8 |
$ |
2.8 |
$ |
30.3 |
32,280 |
$ |
937 |
|
Lamaque |
|
27.0 |
|
1.0 |
|
28.0 |
|
— |
|
|
0.3 |
|
0.1 |
|
16.2 |
|
44.6 |
39,904 |
|
1,117 |
|
Efemcukuru |
|
15.7 |
|
4.9 |
|
20.5 |
|
(0.1 |
) |
|
— |
|
0.8 |
|
3.7 |
|
25.0 |
22,466 |
|
1,111 |
|
Olympias |
|
22.3 |
|
4.8 |
|
27.0 |
|
— |
|
|
0.4 |
|
0.7 |
|
3.4 |
|
31.5 |
15,484 |
|
2,036 |
|
Corporate (1) |
|
— |
|
— |
|
— |
|
11.4 |
|
|
— |
|
— |
|
— |
|
11.4 |
— |
|
104 |
|
Total consolidated |
$ |
87.1 |
$ |
15.1 |
$ |
102.2 |
$ |
11.3 |
|
$ |
0.7 |
$ |
2.4 |
$ |
26.1 |
$ |
142.7 |
110,134 |
$ |
1,296 |
(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 six months ended
June 30, 2023
|
|
Cash operating costs |
Royalties |
Total cash costs |
Corporate & allocated G&A |
Exploration costs |
Reclamation costs and amortization |
Sustaining capital |
Total
AISC |
Gold oz sold |
Total AISC/
oz sold |
|
Kisladag |
$ |
48.7 |
$ |
7.7 |
$ |
56.4 |
$ |
— |
$ |
— |
$ |
1.6 |
$ |
5.0 |
$ |
63.0 |
69,673 |
$ |
904 |
|
Lamaque |
|
54.8 |
|
1.9 |
|
56.7 |
|
— |
|
0.6 |
|
0.3 |
|
34.1 |
|
91.6 |
78,547 |
|
1,166 |
|
Efemcukuru |
|
32.8 |
|
6.2 |
|
39.0 |
|
0.1 |
|
— |
|
1.6 |
|
5.9 |
|
46.6 |
42,217 |
|
1,103 |
|
Olympias |
|
36.2 |
|
8.0 |
|
44.2 |
|
— |
|
0.4 |
|
1.3 |
|
7.1 |
|
53.0 |
29,514 |
|
1,797 |
|
Corporate (1) |
|
— |
|
— |
|
— |
|
21.1 |
|
— |
|
— |
|
— |
|
21.1 |
— |
|
96 |
|
Total consolidated |
$ |
172.5 |
$ |
23.8 |
$ |
196.3 |
$ |
21.2 |
$ |
1.0 |
$ |
4.7 |
$ |
52.1 |
$ |
275.3 |
219,951 |
$ |
1,252 |
(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 June 30,
2022:
|
|
Cash operating costs |
Royalties |
Total cash costs |
Corporate & allocated G&A |
Exploration costs |
Reclamation costs and amortization |
Sustaining capital |
Total
AISC |
Gold oz sold |
Total AISC/
oz sold |
|
Kisladag |
$ |
21.5 |
$ |
2.9 |
$ |
24.4 |
$ |
— |
$ |
— |
$ |
0.6 |
$ |
4.3 |
$ |
29.3 |
26,881 |
$ |
1,090 |
|
Lamaque |
|
30.0 |
|
1.1 |
|
31.1 |
|
— |
|
0.3 |
|
0.1 |
|
13.5 |
|
45.0 |
45,655 |
|
985 |
|
Efemcukuru |
|
16.5 |
|
4.5 |
|
21.0 |
|
— |
|
— |
|
0.6 |
|
5.9 |
|
27.6 |
23,428 |
|
1,180 |
|
Olympias |
|
16.9 |
|
1.3 |
|
18.2 |
|
— |
|
0.3 |
|
0.4 |
|
8.5 |
|
27.4 |
11,667 |
|
2,346 |
|
Corporate (1) |
|
— |
|
— |
|
— |
|
7.4 |
|
— |
|
— |
|
— |
|
7.4 |
— |
|
69 |
|
Total consolidated |
$ |
84.9 |
$ |
9.8 |
$ |
94.7 |
$ |
7.4 |
$ |
0.6 |
$ |
1.8 |
$ |
32.3 |
$ |
136.7 |
107,631 |
$ |
1,270 |
(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 six months ended
June 30, 2022:
|
|
Cash operating costs |
Royalties |
Total cash costs |
Corporate & allocated G&A |
Exploration costs |
Reclamation costs and amortization |
Sustaining capital |
Total
AISC |
Gold oz sold |
Total AISC/
oz sold |
|
Kisladag |
$ |
47.1 |
$ |
6.6 |
$ |
53.7 |
$ |
— |
$ |
— |
$ |
1.0 |
$ |
6.8 |
$ |
61.6 |
56,659 |
$ |
1,087 |
|
Lamaque |
|
56.1 |
|
1.9 |
|
58.0 |
|
— |
|
0.6 |
|
0.2 |
|
26.5 |
|
85.3 |
79,780 |
|
1,069 |
|
Efemcukuru |
|
30.4 |
|
7.6 |
|
38.0 |
|
0.2 |
|
0.2 |
|
1.3 |
|
9.4 |
|
49.0 |
44,810 |
|
1,093 |
|
Olympias |
|
30.2 |
|
3.8 |
|
33.9 |
|
— |
|
0.5 |
|
0.9 |
|
14.1 |
|
49.4 |
20,854 |
|
2,369 |
|
Corporate (1) |
|
— |
|
— |
|
— |
|
18.6 |
|
— |
|
— |
|
— |
|
18.6 |
— |
|
92 |
|
Total consolidated |
$ |
163.7 |
$ |
19.8 |
$ |
183.6 |
$ |
18.8 |
$ |
1.3 |
$ |
3.4 |
$ |
56.8 |
$ |
263.9 |
202,103 |
$ |
1,306 |
(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 Sustaining and Growth
Capital
|
|
|
Q2 2023 |
|
|
Q2 2022 |
|
|
YTD 2023 |
|
|
YTD 2022 |
|
Additions to property, plant and equipment
(1)
(from segment note in the condensed consolidated interim financial
statements) |
$ |
99.4 |
|
$ |
87.1 |
|
$ |
182.8 |
|
$ |
147.9 |
|
|
Growth and development project capital investment - gold mines |
|
(29.0 |
) |
|
(31.9 |
) |
|
(51.9 |
) |
|
(59.3 |
) |
|
Growth and development project capital investment - other
(2) |
|
(44.8 |
) |
|
(22.5 |
) |
|
(79.7 |
) |
|
(31.3 |
) |
|
Less: Sustaining capital expenditure equipment leases
(3) |
|
0.5 |
|
|
(0.4 |
) |
|
0.9 |
|
|
(0.4 |
) |
|
Less: Corporate leases |
|
— |
|
|
— |
|
|
— |
|
|
(0.1 |
) |
|
Sustaining capital expenditure at operating gold
mines |
$ |
26.1 |
|
$ |
32.3 |
|
$ |
52.1 |
|
$ |
56.8 |
|
(1) Amounts presented for 2023 and 2022 are from
continuing operations only and exclude the Romania segment.
See Note 4 of our condensed consolidated interim financial
statements for the three and six months ended June 30,
2023.
(2) Includes growth capital investment and
capital expenditures relating to Skouries, Stratoni and Other
Projects, excluding non-cash sustaining lease additions.
(3) Non-cash sustaining lease additions, net of
sustaining lease principal and interest payments.
Average realized gold price per ounce sold
is reconciled for the periods presented as follows:
For the three months ended
June 30, 2023:
|
|
Revenue |
Add concentrate deductions
(1) |
|
Less non-gold revenue |
|
Gold revenue (2) |
Gold oz sold |
Average realized gold price per ounce sold |
|
Kisladag |
$ |
64.7 |
$ |
— |
$ |
(0.8 |
) |
$ |
63.9 |
32,280 |
$ |
1,980 |
|
Lamaque |
|
78.6 |
|
— |
|
(0.3 |
) |
|
78.3 |
39,904 |
|
1,962 |
|
Efemcukuru |
|
44.1 |
|
1.5 |
|
(1.4 |
) |
|
44.3 |
22,466 |
|
1,971 |
|
Olympias |
|
42.4 |
|
1.2 |
|
(15.0 |
) |
|
28.6 |
15,484 |
|
1,850 |
|
Total consolidated |
$ |
229.9 |
$ |
2.7 |
$ |
(17.5 |
) |
$ |
215.1 |
110,134 |
$ |
1,953 |
(1) Treatment charges, refining charges,
penalties and other costs deducted from proceeds from gold
concentrate sales.
(2) Includes the
impact of provisional pricing adjustments on concentrate
sales.
For the six months ended
June 30, 2023:
|
|
Revenue |
Add concentrate deductions
(1) |
|
Less non-gold revenue |
|
Gold revenue (2) |
Gold oz sold |
Average realized gold price per ounce sold |
|
Kisladag |
$ |
136.8 |
$ |
— |
$ |
(1.6 |
) |
$ |
135.1 |
69,673 |
$ |
1,939 |
|
Lamaque |
|
152.3 |
|
— |
|
(0.8 |
) |
|
151.5 |
78,547 |
|
1,928 |
|
Efemcukuru |
|
84.8 |
|
3.3 |
|
(2.3 |
) |
|
85.7 |
42,217 |
|
2,031 |
|
Olympias |
|
85.4 |
|
2.6 |
|
(33.1 |
) |
|
55.0 |
29,514 |
|
1,862 |
|
Total consolidated |
$ |
459.2 |
$ |
5.9 |
$ |
(37.8 |
) |
$ |
427.3 |
219,951 |
$ |
1,943 |
(1) Treatment charges, refining charges,
penalties and other costs deducted from proceeds from gold
concentrate sales.
(2) Includes the
impact of provisional pricing adjustments on concentrate
sales.
For the three months ended
June 30, 2022:
|
|
Revenue |
Add concentrate deductions
(1) |
|
Less non-gold revenue |
|
Gold revenue (2) |
Gold oz sold |
Average realized gold price per ounce sold |
|
Kisladag |
$ |
51.0 |
|
$ |
— |
$ |
(0.7 |
) |
$ |
50.3 |
26,881 |
$ |
1,870 |
|
Lamaque |
|
85.0 |
|
|
— |
|
(0.4 |
) |
|
84.6 |
45,655 |
|
1,853 |
|
Efemcukuru |
|
41.4 |
|
|
1.3 |
|
(0.8 |
) |
|
41.8 |
23,428 |
|
1,785 |
|
Olympias |
|
36.3 |
|
|
3.6 |
|
(17.5 |
) |
|
22.3 |
11,667 |
|
1,912 |
|
Stratoni |
|
(0.1 |
) |
|
— |
|
0.1 |
|
|
— |
N/A |
N/A |
|
Total consolidated |
$ |
213.4 |
|
$ |
4.8 |
$ |
(19.3 |
) |
$ |
199.0 |
107,631 |
$ |
1,849 |
(1) Treatment charges, refining charges,
penalties and other costs deducted from proceeds from gold
concentrate sales.
(2) Includes the
impact of provisional pricing adjustments on concentrate
sales.
For the six months ended
June 30, 2022:
|
|
Revenue |
Add concentrate deductions
(1) |
|
Less non-gold revenue |
|
Gold revenue (2) |
Gold oz sold |
Average realized gold price per ounce sold |
|
Kisladag |
$ |
107.6 |
$ |
— |
$ |
(1.5 |
) |
$ |
106.1 |
56,659 |
$ |
1,873 |
|
Lamaque |
|
149.9 |
|
— |
|
(0.7 |
) |
|
149.2 |
79,780 |
|
1,870 |
|
Efemcukuru |
|
82.7 |
|
2.1 |
|
(1.7 |
) |
|
83.1 |
44,810 |
|
1,855 |
|
Olympias |
|
67.4 |
|
5.3 |
|
(33.8 |
) |
|
39.0 |
20,854 |
|
1,870 |
|
Stratoni |
|
0.5 |
|
— |
|
(0.5 |
) |
|
— |
N/A |
N/A |
|
Total consolidated |
$ |
408.1 |
$ |
7.5 |
$ |
(38.2 |
) |
$ |
377.4 |
202,103 |
$ |
1,868 |
(1) Treatment charges, refining charges,
penalties and other costs deducted from proceeds from gold
concentrate sales.
(2) Includes the
impact of provisional pricing adjustments on concentrate
sales.
Reconciliation of Net Earnings (Loss)
attributable to shareholders of the Company to Adjusted Net
Earnings (Loss) attributable to shareholders of the
Company:
|
|
|
Q2 2023 |
|
|
Q2 2022 |
|
|
YTD 2023 |
|
|
YTD 2022 |
|
|
Net earnings (loss) attributable to shareholders of the
Company (1) |
$ |
1.5 |
|
$ |
(22.9 |
) |
$ |
20.9 |
|
$ |
(62.6 |
) |
|
Current tax expense due to Turkiye earthquake relief tax law change
(2) |
|
— |
|
|
— |
|
|
4.3 |
|
|
— |
|
|
Loss on foreign exchange translation of deferred tax balances |
|
21.4 |
|
|
23.3 |
|
|
17.8 |
|
|
35.8 |
|
|
Loss on redemption option derivative |
|
1.6 |
|
|
14.4 |
|
|
0.6 |
|
|
7.4 |
|
|
Unrealized gain on derivative instruments |
|
(8.4 |
) |
|
— |
|
|
(9.0 |
) |
|
— |
|
|
Gain on deferred tax due to changes in tax rates
(3) |
|
— |
|
|
— |
|
|
— |
|
|
(1.0 |
) |
|
Other write-down (reversal) of assets, net of tax
(4) |
|
— |
|
|
(1.2 |
) |
|
— |
|
|
14.8 |
|
|
Total adjusted net earnings (loss) |
$ |
16.1 |
|
$ |
13.6 |
|
$ |
34.6 |
|
$ |
(5.7 |
) |
|
Weighted average shares outstanding (thousands) |
|
188,804 |
|
|
183,777 |
|
|
186,355 |
|
|
183,074 |
|
|
Adjusted net earnings (loss) per share
($/share) |
$ |
0.09 |
|
$ |
0.07 |
|
$ |
0.19 |
|
$ |
(0.03 |
) |
(1) Amounts presented for 2023 and 2022 are from
continuing operations only and exclude the Romania segment.
See Note 4 of our condensed consolidated interim financial
statements for the three and six months ended June 30,
2023.
(2) To help fund earthquake relief efforts in
Turkiye, a one-time tax law change was introduced in Q1 2023 to
reverse a portion of the tax credits and deductions previously
granted in 2022.
(3) Deferred tax recovery relating to the
adjustment of opening balances for the tax rate decrease in
Turkiye. The tax rate change was enacted in Q1 2022.
(4) Non-recurring asset write-downs in Q1 2022
include decommissioned equipment at Kisladag as a result of
installation and commissioning of the HPGR. A partial reversal of
Stratoni equipment write-downs was recorded in Q2 2022.
Reconciliation of Net Earnings (Loss) before
income tax to EBITDA and Adjusted EBITDA:
|
|
|
Q2 2023 |
|
|
Q2 2022 |
|
|
YTD 2023 |
|
|
YTD 2022 |
|
|
Earnings (loss) before income tax
(1) |
$ |
40.3 |
|
$ |
10.4 |
|
$ |
72.4 |
|
$ |
(4.4 |
) |
|
Depreciation and amortization (2) |
|
64.9 |
|
|
56.7 |
|
|
128.0 |
|
|
108.7 |
|
|
Interest income |
|
(2.7 |
) |
|
(0.8 |
) |
|
(6.5 |
) |
|
(1.3 |
) |
|
Finance costs |
|
9.4 |
|
|
23.7 |
|
|
18.1 |
|
|
25.8 |
|
|
EBITDA |
$ |
111.8 |
|
$ |
89.9 |
|
$ |
212.1 |
|
$ |
128.8 |
|
|
Other write-down (reversal) of assets (3) |
|
— |
|
|
(1.6 |
) |
|
— |
|
|
18.2 |
|
|
Share-based payments expense |
|
2.7 |
|
|
0.3 |
|
|
3.5 |
|
|
4.0 |
|
|
Loss (gain) on disposal of assets (1) |
|
0.7 |
|
|
(0.2 |
) |
|
0.8 |
|
|
(0.8 |
) |
|
Unrealized gain on derivative instruments |
|
(8.4 |
) |
|
— |
|
|
(9.0 |
) |
|
— |
|
|
Adjusted EBITDA |
$ |
106.8 |
|
$ |
88.5 |
|
$ |
207.4 |
|
$ |
150.2 |
|
(1) Amounts presented for 2023 and 2022 are from
continuing operations only and exclude the Romania segment.
See Note 4 of our condensed consolidated interim financial
statements for the three and six months ended June 30,
2023.
(2) Includes depreciation within general and
administrative expenses.
(3) Non-recurring asset write-downs in Q1 2022
include decommissioned equipment at Kisladag as a result of
installation and commissioning of the HPGR. A partial reversal of
Stratoni equipment write-downs was recorded in Q2 2022.
Reconciliation of Net Cash Generated from
Operating Activities to Free Cash Flow:
|
|
|
Q2 2023 |
|
|
Q2 2022 |
|
|
YTD 2023 |
|
|
YTD 2022 |
|
|
Net cash generated from operating activities
(1) |
$ |
75.3 |
|
$ |
27.0 |
|
$ |
115.6 |
|
$ |
62.3 |
|
|
Less: Cash used in investing activities |
|
(97.0 |
) |
|
(89.7 |
) |
|
(138.0 |
) |
|
(211.7 |
) |
|
Add back: (Decrease) increase in term deposits |
|
— |
|
|
— |
|
|
(35.0 |
) |
|
60.0 |
|
|
Add back: Purchase of marketable securities |
|
— |
|
|
— |
|
|
0.6 |
|
|
— |
|
|
Free cash flow |
$ |
(21.7 |
) |
$ |
(62.7 |
) |
$ |
(56.7 |
) |
$ |
(89.5 |
) |
|
Add back: Skouries capital investment (2) |
|
34.9 |
|
|
5.9 |
|
|
50.0 |
|
|
10.4 |
|
|
Free cash flow excluding Skouries |
$ |
13.2 |
|
$ |
(56.9 |
) |
$ |
(6.7 |
) |
$ |
(79.1 |
) |
(1) Amounts presented for 2023 and 2022 are from
continuing operations only and exclude the Romania segment.
See Note 4 of our condensed consolidated interim financial
statements for the three and six months ended June 30,
2023.
(2) Cash-basis capital expenditure on the
Skouries project as included within 'Cash used in investing
activities'.
Working capital for the periods highlighted
is as follows:
|
|
As at June 30, 2023 |
As at December 31, 2022 |
|
Current assets |
$ |
782.9
|
$ |
604.7 |
|
Less: Current liabilities |
|
205.5 |
|
200.5 |
|
Working capital |
$ |
577.4 |
$ |
404.3 |
Reconciliation of Net Cash Generated from
Operating Activities to Cash Flow from Operating Activities before
Changes in Working Capital:
|
Continuing operations (1) |
|
Q2 2023 |
|
|
Q2 2022 |
|
|
YTD 2023 |
|
|
YTD 2022 |
|
|
Net cash generated from operating activities
(1) |
$ |
75.3 |
|
$ |
27.0 |
|
$ |
115.6 |
|
$ |
62.3 |
|
|
Less: Changes in non-cash working capital |
|
(7.1 |
) |
|
(22.2 |
) |
|
(60.0 |
) |
|
(36.3 |
) |
|
Cash flow from operating activities before changes in
working capital |
$ |
82.4 |
|
$ |
49.2 |
|
$ |
175.6 |
|
$ |
98.5 |
|
(1) Amounts presented for 2023 and 2022 are from
continuing operations only and exclude the Romania segment.
See Note 4 of our condensed consolidated interim financial
statements for the three and six months ended June 30,
2023.
Forward-looking Statements and
Information
Certain of the statements made and information
provided in this press release are forward-looking statements or
forward-looking 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 “anticipates”, "assumes", “believes”, “budget”,
"committed", “continue”, “estimates”, “expects”, "focus",
“forecasts”, "foresee", "forward", "future", "goal", “guidance”,
“intends”, "opportunity", "outlook", “plans”, “potential”,
"schedule", "strategy", "target", “underway”, "working" or the
negatives thereof or variations of such words and phrases or
statements that certain actions, events or results “can”, “could”,
"likely", "may", “might”, “will” or "would" be taken, occur or be
achieved.
Forward-looking statements or information
contained in this press release the use of proceeds with respect to
the EBRD strategic investment, the bought deal financing, and
flow-through financings; the recognition of gold sales and related
revenue, including the timing thereof; on-going optimization and
expansion of the Olympias mine, including expected benefits
thereof; expectations regarding lower-tenor solution at Kisladag;
development and operations of the Perama Hill project; electricity
and fuel prices in Europe; the vesting and redemption of the
Company's outstanding PSUs; the impact of certain foreign exchange
contracts on foreign exchange risk; the duration, extent and other
implications of production challenges and cost increases, including
those in respect of COVID-19, the Russia-Ukraine war and
restrictions and suspensions with respect to the Company’s
operations; the Company’s 2023 annual production and cost guidance,
including our individual mine production and costs; the timing of
production; total funding requirements for Skouries, including the
sources thereof; the drawdown of the proceeds of the Term Facility,
including the timing thereof; the Company’s ability to fund the
remaining 20% funding commitment for Skouries; the expectations
relating to the use of the Contingent Overrun Facility; the letter
of credit backstopping the Company's equity commitment for the
Skouries project, including any restrictions or decrease thereof;
the Company’s ability to successfully advance the Skouries project
and achieve the results provided for in the Skouries feasibility
study; occupational health and safety; forecasted growth capital,
NPV, IRR, EBITDA and AISC; expectations regarding advancement and
development of the Skouries project, including expected costs and
budgets, upcoming milestones, timing of contract, the ability to
meet expectations and the timing thereof; expected annual
production from the Skouries project; the optimization and
development of Greek operations, including benefits, risks,
financing and the Amended Investment Agreement related thereto and
the receipt and timing of approvals of modification plans related
thereto; the completion, availability and benefits of processing
facilities and transportation equipment; government approvals;
government measures relating to cost increases; the effect of
annual royalty payments in Turkiye and Greece and tax payments in
Turkiye on the Company's operating activities, including the timing
thereof; the impact of the increase in corporate income tax rate in
Turkiye; alternative markets for concentrate shipments; changes in
law and tax rates; the payment of taxes, including the method and
timing thereof, completion and timing of the sale of the Certej
project; changes in internal controls over financial reporting;
critical accounting estimates and judgements; changes in accounting
policies; expected metallurgical recoveries and improved
concentrate grade and quality; non-IFRS financial measures and
ratios; risk factors affecting our business; our expectation as to
our future financial and operating performance, including future
cash flow, estimated cash costs, expected metallurgical recoveries
and gold price outlook; and our strategy, plans and goals,
including our proposed exploration, development, construction,
permitting, financing and operating potential, plans and priorities
and related timelines and schedules.
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: production and cost expectations; the total capital costs
required to complete Skouries; our ability to execute our plans
relating to Skouries, including the timing thereof; our ability to
obtain all required approvals and permits; cost estimates in
respect of Skouries; no changes in input costs, exchange rates,
development and gold; the geopolitical, economic, permitting and
legal climate that we operate in, including at the Skouries
project; our preliminary gold production and our guidance, benefits
of the completion of the decline at Lamaque, the improvements at
Kisladag and Olympias and the optimization of Greek operations; tax
expenses in Turkiye; 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 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,
the following: increases in the non-fixed portion of the financing
costs or adverse changes to the Term Facility funding the Skouries
project; failure or delays to receive necessary approvals or
otherwise satisfy the conditions to the continued drawdown of the
Term Facility; the proceeds of the Term Facility not being
available to the Company or Hellas; ability to execute on plans
relating to Skouries, including the timing thereof, ability to
achieve the social impacts and benefits contemplated; ability to
meet production, expenditure and cost 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 Turkiye; as
well as those risk factors discussed in the section titled
Managing Risk in the Management's Discussion and Analysis
and 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 United
States.
Qualified Person
Except as otherwise noted, Simon Hille, FAusIMM,
Senior Vice President, Technical Services and Operations, 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.
Jessy Thelland, géo (OGQ No. 758), a member in
good standing of the Ordre des Géologues du Québec, is the
qualified person as defined in NI 43-101 responsible for, and has
verified and approved, the scientific and technical disclosure
contained in this MD&A for the Quebec projects.
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Financial Position
As at June 30, 2023 and December 31, 2022
(Unaudited – in thousands of U.S. dollars)
|
As at |
Note |
|
|
June 30, 2023 |
|
|
|
December 31, 2022 |
|
|
ASSETS |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
456,583 |
|
|
$ |
279,735 |
|
|
Term deposits |
|
|
|
— |
|
|
|
35,000 |
|
|
Accounts receivable and other |
5 |
|
|
93,667 |
|
|
|
91,113 |
|
|
Inventories |
6 |
|
|
231,907 |
|
|
|
198,872 |
|
|
Current derivative assets |
16 |
|
|
727 |
|
|
|
— |
|
|
Assets held for sale |
4 |
|
|
27,348 |
|
|
|
27,738 |
|
|
|
|
|
|
810,232 |
|
|
|
632,458 |
|
|
Restricted cash |
|
|
|
2,082 |
|
|
|
2,033 |
|
|
Deferred tax assets |
|
|
|
14,507 |
|
|
|
14,507 |
|
|
Other assets |
7 |
|
|
165,261 |
|
|
|
120,065 |
|
|
Non-current derivative assets |
16 |
|
|
10,106 |
|
|
|
— |
|
|
Property, plant and equipment |
|
|
|
3,647,273 |
|
|
|
3,596,262 |
|
|
Goodwill |
|
|
|
92,591 |
|
|
|
92,591 |
|
|
|
|
|
$ |
4,742,052 |
|
|
$ |
4,457,916 |
|
|
LIABILITIES & EQUITY |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
|
$ |
196,960 |
|
|
$ |
191,705 |
|
|
Current portion of lease liabilities |
|
|
|
4,184 |
|
|
|
4,777 |
|
|
Current portion of asset retirement obligations |
|
|
|
4,382 |
|
|
|
3,980 |
|
|
Liabilities associated with assets held for sale |
4 |
|
|
10,698 |
|
|
|
10,479 |
|
|
|
|
|
|
216,224 |
|
|
|
210,941 |
|
|
Debt |
8 |
|
|
546,018 |
|
|
|
494,414 |
|
|
Lease liabilities |
|
|
|
11,281 |
|
|
|
12,164 |
|
|
Employee benefit plan obligations |
|
|
|
8,310 |
|
|
|
8,910 |
|
|
Asset retirement obligations |
|
|
|
111,635 |
|
|
|
105,893 |
|
|
Non-current derivative liabilities |
16 |
|
|
1,811 |
|
|
|
— |
|
|
Deferred income tax liabilities |
|
|
|
434,509 |
|
|
|
424,726 |
|
|
|
|
|
|
1,329,788 |
|
|
|
1,257,048 |
|
|
Equity |
|
|
|
|
|
|
Share capital |
12 |
|
|
3,410,609 |
|
|
|
3,241,644 |
|
|
Treasury stock |
|
|
|
(14,821 |
) |
|
|
(20,454 |
) |
|
Contributed surplus |
|
|
|
2,612,685 |
|
|
|
2,618,212 |
|
|
Accumulated other comprehensive loss |
|
|
|
(18,937 |
) |
|
|
(42,284 |
) |
|
Deficit |
|
|
|
(2,572,845 |
) |
|
|
(2,593,050 |
) |
|
Total equity attributable to shareholders of the
Company |
|
|
|
3,416,691 |
|
|
|
3,204,068 |
|
|
Attributable to non-controlling interests |
|
|
|
(4,427 |
) |
|
|
(3,200 |
) |
|
|
|
|
|
3,412,264 |
|
|
|
3,200,868 |
|
|
|
|
|
$ |
4,742,052 |
|
|
$ |
4,457,916 |
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent events (Note 20)
Approved on behalf of the Board of
Directors
|
(signed) |
|
John Webster |
|
Director |
|
(signed) |
|
George Burns |
|
Director |
| |
|
|
|
|
|
|
|
|
|
|
Date of approval:
July 27, 2023
Please see the Condensed Consolidated Interim
Financial Statements dated June 30, 2023 for notes to the
accounts.
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Operations
For the three and six months ended June 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars except share and per
share amounts)
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
|
June 30, |
|
June 30, |
|
|
Note |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
Metal sales |
9 |
|
$ |
229,855 |
|
|
$ |
213,447 |
|
|
$ |
459,209 |
|
|
$ |
408,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
|
|
|
|
|
|
|
|
Production costs |
|
|
|
116,996 |
|
|
|
109,320 |
|
|
|
228,246 |
|
|
|
213,876 |
|
|
Depreciation and amortization |
|
|
|
64,086 |
|
|
|
56,071 |
|
|
|
126,439 |
|
|
|
107,669 |
|
|
|
|
|
|
181,082 |
|
|
|
165,391 |
|
|
|
354,685 |
|
|
|
321,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from mine operations |
|
|
|
48,773 |
|
|
|
48,056 |
|
|
|
104,524 |
|
|
|
86,574 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration and evaluation expenses |
|
|
|
4,634 |
|
|
|
3,387 |
|
|
|
10,470 |
|
|
|
8,373 |
|
|
Mine standby costs |
10 |
|
|
5,113 |
|
|
|
10,645 |
|
|
|
8,617 |
|
|
|
22,333 |
|
|
General and administrative expenses |
|
|
|
9,365 |
|
|
|
8,522 |
|
|
|
19,965 |
|
|
|
16,525 |
|
|
Employee benefit plan expense |
|
|
|
706 |
|
|
|
809 |
|
|
|
2,219 |
|
|
|
2,650 |
|
|
Share-based payments expense |
13 |
|
|
2,676 |
|
|
|
348 |
|
|
|
3,528 |
|
|
|
3,998 |
|
|
Write-down (recovery) of assets |
|
|
|
1,886 |
|
|
|
(1,688 |
) |
|
|
2,048 |
|
|
|
22,453 |
|
|
Foreign exchange gain |
|
|
|
(14,681 |
) |
|
|
(6,385 |
) |
|
|
(13,754 |
) |
|
|
(7,717 |
) |
|
Earnings from operations |
|
|
|
39,074 |
|
|
|
32,418 |
|
|
|
71,431 |
|
|
|
17,959 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income |
11 |
|
|
10,580 |
|
|
|
1,642 |
|
|
|
19,088 |
|
|
|
3,379 |
|
|
Finance costs |
11 |
|
|
(9,350 |
) |
|
|
(23,677 |
) |
|
|
(18,143 |
) |
|
|
(25,778 |
) |
|
Earnings (loss) from continuing operations before income
tax |
|
|
|
40,304 |
|
|
|
10,383 |
|
|
|
72,376 |
|
|
|
(4,440 |
) |
|
Income tax expense |
|
|
|
38,866 |
|
|
|
33,381 |
|
|
|
51,597 |
|
|
|
58,311 |
|
|
Net earnings (loss) from continuing
operations |
|
|
|
1,438 |
|
|
|
(22,998 |
) |
|
|
20,779 |
|
|
|
(62,751 |
) |
|
Net loss from discontinued operations, net of
tax |
|
|
|
(942 |
) |
|
|
(1,084 |
) |
|
|
(2,066 |
) |
|
|
(346,324 |
) |
|
Net earnings (loss) for the period |
|
|
$ |
496 |
|
|
$ |
(24,082 |
) |
|
$ |
18,713 |
|
|
$ |
(409,075 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to: |
|
|
|
|
|
|
|
|
|
|
Shareholders of the Company |
|
|
|
885 |
|
|
|
(25,273 |
) |
|
|
20,205 |
|
|
|
(342,874 |
) |
|
Non-controlling interests |
|
|
|
(389 |
) |
|
|
1,191 |
|
|
|
(1,492 |
) |
|
|
(66,201 |
) |
|
Net earnings (loss) for the period |
|
|
$ |
496 |
|
|
$ |
(24,082 |
) |
|
$ |
18,713 |
|
|
$ |
(409,075 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to Shareholders of the
Company: |
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
|
|
1,537 |
|
|
|
(22,939 |
) |
|
|
20,918 |
|
|
|
(62,649 |
) |
|
Discontinued operations |
|
|
|
(652 |
) |
|
|
(2,334 |
) |
|
|
(713 |
) |
|
|
(280,225 |
) |
|
|
|
|
$ |
885 |
|
|
$ |
(25,273 |
) |
|
$ |
20,205 |
|
|
$ |
(342,874 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings attributable to Non-Controlling
Interest: |
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
|
|
(99 |
) |
|
|
(59 |
) |
|
|
(139 |
) |
|
|
(102 |
) |
|
Discontinued operations |
|
|
|
(290 |
) |
|
|
1,250 |
|
|
|
(1,353 |
) |
|
|
(66,099 |
) |
|
|
|
|
$ |
(389 |
) |
|
$ |
1,191 |
|
|
$ |
(1,492 |
) |
|
$ |
(66,201 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding (thousands) |
|
|
|
|
|
|
|
|
|
|
Basic |
12 |
|
|
188,804 |
|
|
|
183,777 |
|
|
|
186,355 |
|
|
|
183,074 |
|
|
Diluted |
12 |
|
|
189,680 |
|
|
|
183,777 |
|
|
|
187,136 |
|
|
|
183,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) per share attributable to Shareholders
of the Company: |
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share |
|
|
$ |
0.00 |
|
|
$ |
(0.14 |
) |
|
$ |
0.11 |
|
|
$ |
(1.87 |
) |
|
Diluted earnings (loss) per share |
|
|
$ |
0.00 |
|
|
$ |
(0.14 |
) |
|
$ |
0.11 |
|
|
$ |
(1.87 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) per share attributable to Shareholders
of the Company - Continuing operations: |
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share |
|
|
$ |
0.01 |
|
|
$ |
(0.12 |
) |
|
$ |
0.11 |
|
|
$ |
(0.34 |
) |
|
Diluted earnings (loss) per share |
|
|
$ |
0.01 |
|
|
$ |
(0.12 |
) |
|
$ |
0.11 |
|
|
$ |
(0.34 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Comprehensive Income
(Loss)
For the three and six months ended June 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars)
|
|
Three months ended |
|
Six months ended |
|
|
June 30, |
|
June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) for the period |
$ |
496 |
|
|
$ |
(24,082 |
) |
|
$ |
18,713 |
|
|
$ |
(409,075 |
) |
|
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
Items that will not be reclassified to earnings or loss: |
|
|
|
|
|
|
|
|
Change in fair value of investments in marketable securities |
|
4,055 |
|
|
|
(10,314 |
) |
|
|
27,497 |
|
|
|
(8,265 |
) |
|
Income tax expense on change in fair value of investments in
marketable securities |
|
(546 |
) |
|
|
— |
|
|
|
(1,181 |
) |
|
|
— |
|
|
Actuarial (losses) gains on employee benefit plans |
|
(1,831 |
) |
|
|
266 |
|
|
|
(3,665 |
) |
|
|
(651 |
) |
|
Income tax recovery on actuarial losses on employee benefit pension
plans |
|
243 |
|
|
|
143 |
|
|
|
696 |
|
|
|
143 |
|
|
Total other comprehensive income (loss) for the
period |
|
1,921 |
|
|
|
(9,905 |
) |
|
|
23,347 |
|
|
|
(8,773 |
) |
|
Total comprehensive income (loss) for the
period |
$ |
2,417 |
|
|
$ |
(33,987 |
) |
|
$ |
42,060 |
|
|
$ |
(417,848 |
) |
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
Shareholders of the Company |
|
2,806 |
|
|
|
(35,178 |
) |
|
|
43,552 |
|
|
|
(351,647 |
) |
|
Non-controlling interests |
|
(389 |
) |
|
|
1,191 |
|
|
|
(1,492 |
) |
|
|
(66,201 |
) |
|
|
$ |
2,417 |
|
|
$ |
(33,987 |
) |
|
$ |
42,060 |
|
|
$ |
(417,848 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Cash Flows
For the three and six months ended June 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars)
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
|
June 30, |
|
June 30, |
|
|
Note |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Cash flows generated from (used in): |
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) for the period from continuing operations |
|
|
$ |
1,438 |
|
|
$ |
(22,998 |
) |
|
$ |
20,779 |
|
|
$ |
(62,751 |
) |
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
64,893 |
|
|
|
56,697 |
|
|
|
128,014 |
|
|
|
108,721 |
|
|
Finance costs |
|
|
|
9,350 |
|
|
|
23,677 |
|
|
|
18,143 |
|
|
|
25,778 |
|
|
Interest income |
|
|
|
(2,719 |
) |
|
|
(809 |
) |
|
|
(6,450 |
) |
|
|
(1,284 |
) |
|
Unrealized foreign exchange gain |
|
|
|
(11,738 |
) |
|
|
(3,282 |
) |
|
|
(12,225 |
) |
|
|
(3,766 |
) |
|
Income tax expense |
|
|
|
38,866 |
|
|
|
33,381 |
|
|
|
51,597 |
|
|
|
58,311 |
|
|
Loss (gain) on disposal of assets |
|
|
|
682 |
|
|
|
(233 |
) |
|
|
767 |
|
|
|
(815 |
) |
|
Unrealized gain on derivative contracts |
16 |
|
|
(8,397 |
) |
|
|
— |
|
|
|
(9,022 |
) |
|
|
— |
|
|
Write-down (recovery) of assets |
|
|
|
1,886 |
|
|
|
(1,688 |
) |
|
|
2,048 |
|
|
|
22,453 |
|
|
Share-based payments expense |
13 |
|
|
2,676 |
|
|
|
348 |
|
|
|
3,528 |
|
|
|
3,998 |
|
|
Employee benefit plan expense |
|
|
|
706 |
|
|
|
809 |
|
|
|
2,219 |
|
|
|
2,650 |
|
|
|
|
|
|
97,643 |
|
|
|
85,902 |
|
|
|
199,398 |
|
|
|
153,295 |
|
|
Property reclamation payments |
|
|
|
(1,044 |
) |
|
|
(481 |
) |
|
|
(1,956 |
) |
|
|
(793 |
) |
|
Employee benefit plan payments |
|
|
|
(1,783 |
) |
|
|
(423 |
) |
|
|
(4,111 |
) |
|
|
(2,673 |
) |
|
Income taxes paid |
|
|
|
(15,101 |
) |
|
|
(36,628 |
) |
|
|
(24,137 |
) |
|
|
(52,567 |
) |
|
Interest received |
|
|
|
2,719 |
|
|
|
809 |
|
|
|
6,450 |
|
|
|
1,284 |
|
|
Changes in non-cash working capital |
14 |
|
|
(7,129 |
) |
|
|
(22,211 |
) |
|
|
(60,032 |
) |
|
|
(36,288 |
) |
|
Net cash generated from operating activities of continuing
operations |
|
|
|
75,305 |
|
|
|
26,968 |
|
|
|
115,612 |
|
|
|
62,258 |
|
|
Net cash (used in) generated from operating activities of
discontinued operations |
|
|
|
(247 |
) |
|
|
(33 |
) |
|
|
69 |
|
|
|
(79 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
|
(86,233 |
) |
|
|
(83,183 |
) |
|
|
(158,504 |
) |
|
|
(135,179 |
) |
|
Capitalized interest paid |
|
|
|
(527 |
) |
|
|
— |
|
|
|
(527 |
) |
|
|
— |
|
|
Proceeds from the sale of property, plant and equipment |
|
|
|
1,185 |
|
|
|
565 |
|
|
|
1,185 |
|
|
|
1,641 |
|
|
Purchase of marketable securities and investment in debt
securities |
|
|
|
— |
|
|
|
— |
|
|
|
(633 |
) |
|
|
— |
|
|
Value added taxes related to mineral property expenditures,
net |
|
|
|
(11,441 |
) |
|
|
(7,078 |
) |
|
|
(14,502 |
) |
|
|
(18,211 |
) |
|
Decrease (increase) in term deposits |
|
|
|
— |
|
|
|
— |
|
|
|
35,000 |
|
|
|
(60,000 |
) |
|
Net cash used in investing activities of continuing
operations |
|
|
|
(97,016 |
) |
|
|
(89,696 |
) |
|
|
(137,981 |
) |
|
|
(211,749 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
|
|
Issuance of common shares, net of issuance costs |
|
|
|
166,375 |
|
|
|
541 |
|
|
|
166,809 |
|
|
|
13,659 |
|
|
Contributions from non-controlling interests |
|
|
|
— |
|
|
|
37 |
|
|
|
265 |
|
|
|
207 |
|
|
Proceeds from Term facility - Commercial Loans and RRF Loans |
8 |
|
|
71,208 |
|
|
|
— |
|
|
|
71,208 |
|
|
|
— |
|
|
Proceeds from Term facility - VAT facility |
8 |
|
|
535 |
|
|
|
— |
|
|
|
535 |
|
|
|
— |
|
|
Term facility loan financing costs |
8 |
|
|
(17,172 |
) |
|
|
— |
|
|
|
(17,172 |
) |
|
|
— |
|
|
Term facility commitment fees |
|
|
|
(2,529 |
) |
|
|
— |
|
|
|
(2,529 |
) |
|
|
— |
|
|
Interest paid |
|
|
|
(885 |
) |
|
|
(831 |
) |
|
|
(17,699 |
) |
|
|
(17,719 |
) |
|
Principal portion of lease liabilities |
|
|
|
(844 |
) |
|
|
(1,705 |
) |
|
|
(1,845 |
) |
|
|
(3,977 |
) |
|
Purchase of treasury stock |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13,969 |
) |
|
Net cash generated from (used in) financing activities of
continuing operations |
|
|
|
216,688 |
|
|
|
(1,958 |
) |
|
|
199,572 |
|
|
|
(21,799 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash
equivalents |
|
|
|
194,730 |
|
|
|
(64,719 |
) |
|
|
177,272 |
|
|
|
(171,369 |
) |
|
Cash and cash equivalents - beginning of
period |
|
|
|
262,277 |
|
|
|
374,677 |
|
|
|
279,735 |
|
|
|
481,327 |
|
|
Cash in disposal group held for sale |
|
|
|
(424 |
) |
|
|
— |
|
|
|
(424 |
) |
|
|
— |
|
|
Cash and cash equivalents - end of period |
|
|
$ |
456,583 |
|
|
$ |
309,958 |
|
|
$ |
456,583 |
|
|
$ |
309,958 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Changes in Equity
For the three and six months ended June 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars)
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
|
June 30, |
|
June 30, |
|
|
Note |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Share capital |
|
|
|
|
|
|
|
|
|
|
Balance beginning of period |
|
|
$ |
3,242,668 |
|
|
$ |
3,240,665 |
|
|
$ |
3,241,644 |
|
|
$ |
3,225,326 |
|
|
Shares issued upon exercise of share options |
|
|
|
4,423 |
|
|
|
71 |
|
|
|
5,140 |
|
|
|
3,943 |
|
|
Shares issued upon exercise of performance share units (PSU's) |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,256 |
|
|
Transfer of contributed surplus on exercise of options |
|
|
|
1,861 |
|
|
|
29 |
|
|
|
2,168 |
|
|
|
1,592 |
|
|
Shares issued upon exercise of warrants |
|
|
|
— |
|
|
|
213 |
|
|
|
— |
|
|
|
213 |
|
|
Shares issued in private placements, net of share issuance
costs |
|
|
|
66,776 |
|
|
|
(26 |
) |
|
|
66,776 |
|
|
|
7,622 |
|
|
Shares issued to the public, net of share issuance costs |
|
|
|
94,881 |
|
|
|
— |
|
|
|
94,881 |
|
|
|
— |
|
|
Balance end of period |
12 |
|
$ |
3,410,609 |
|
|
$ |
3,240,952 |
|
|
$ |
3,410,609 |
|
|
$ |
3,240,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Treasury stock |
|
|
|
|
|
|
|
|
|
|
Balance beginning of period |
|
|
$ |
(20,414 |
) |
|
$ |
(20,454 |
) |
|
$ |
(20,454 |
) |
|
$ |
(10,289 |
) |
|
Purchase of treasury stock |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13,969 |
) |
|
Shares redeemed upon exercise of restricted share units
(RSU's) |
|
|
|
5,593 |
|
|
|
— |
|
|
|
5,633 |
|
|
|
3,804 |
|
|
Balance end of period |
|
|
$ |
(14,821 |
) |
|
$ |
(20,454 |
) |
|
$ |
(14,821 |
) |
|
$ |
(20,454 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Contributed surplus |
|
|
|
|
|
|
|
|
|
|
Balance beginning of period |
|
|
$ |
2,618,045 |
|
|
$ |
2,610,136 |
|
|
$ |
2,618,212 |
|
|
$ |
2,615,459 |
|
|
Share-based payment arrangements |
|
|
|
2,094 |
|
|
|
2,356 |
|
|
|
2,274 |
|
|
|
4,656 |
|
|
Shares redeemed upon exercise of restricted share units |
|
|
|
(5,593 |
) |
|
|
— |
|
|
|
(5,633 |
) |
|
|
(3,804 |
) |
|
Shares redeemed upon exercise of performance share units |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,256 |
) |
|
Transfer to share capital on exercise of options |
|
|
|
(1,861 |
) |
|
|
(29 |
) |
|
|
(2,168 |
) |
|
|
(1,592 |
) |
|
Balance end of period |
|
|
$ |
2,612,685 |
|
|
$ |
2,612,463 |
|
|
$ |
2,612,685 |
|
|
$ |
2,612,463 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
Balance beginning of period |
|
|
$ |
(20,858 |
) |
|
$ |
(19,773 |
) |
|
$ |
(42,284 |
) |
|
$ |
(20,905 |
) |
|
Other comprehensive income (loss) for the period attributable to
shareholders of the Company |
|
|
|
1,921 |
|
|
|
(9,905 |
) |
|
|
23,347 |
|
|
|
(8,773 |
) |
|
Balance end of period |
|
|
$ |
(18,937 |
) |
|
$ |
(29,678 |
) |
|
$ |
(18,937 |
) |
|
$ |
(29,678 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Deficit |
|
|
|
|
|
|
|
|
|
|
Balance beginning of period |
|
|
$ |
(2,573,730 |
) |
|
$ |
(2,556,827 |
) |
|
$ |
(2,593,050 |
) |
|
$ |
(2,239,226 |
) |
|
Earnings (loss) attributable to shareholders of the Company |
|
|
|
885 |
|
|
|
(25,273 |
) |
|
|
20,205 |
|
|
|
(342,874 |
) |
|
Balance end of period |
|
|
$ |
(2,572,845 |
) |
|
$ |
(2,582,100 |
) |
|
$ |
(2,572,845 |
) |
|
$ |
(2,582,100 |
) |
|
Total equity attributable to shareholders of the
Company |
|
|
$ |
3,416,691 |
|
|
$ |
3,221,183 |
|
|
$ |
3,416,691 |
|
|
$ |
3,221,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
Balance beginning of period |
|
|
$ |
(4,038 |
) |
|
$ |
2,335 |
|
|
$ |
(3,200 |
) |
|
$ |
69,557 |
|
|
(Loss) earnings attributable to non-controlling interests |
|
|
|
(389 |
) |
|
|
1,191 |
|
|
|
(1,492 |
) |
|
|
(66,201 |
) |
|
Contributions from non-controlling interests |
|
|
|
— |
|
|
|
37 |
|
|
|
265 |
|
|
|
207 |
|
|
Balance end of period |
|
|
$ |
(4,427 |
) |
|
$ |
3,563 |
|
|
$ |
(4,427 |
) |
|
$ |
3,563 |
|
|
Total equity |
|
|
$ |
3,412,264 |
|
|
$ |
3,224,746 |
|
|
$ |
3,412,264 |
|
|
$ |
3,224,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eldorado Gold (NYSE:EGO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Eldorado Gold (NYSE:EGO)
Historical Stock Chart
From Apr 2023 to Apr 2024
