Eldorado Gold Corporation (“Eldorado” or “the Company”) today
reports the Company’s financial and operational results for the
third quarter of 2019.
- Extension of mine life at
Kisladag supported by recent test results: Waste stripping
to support a mine life extension at Kisladag is underway. Recent
test results confirm recoveries from leaching deeper material over
250 day cycles support an extension of mine life beyond the
Company's current three year guidance. Testwork is still ongoing
and the Company expects to update long term guidance at Kisladag
based on the results of this testwork, which are expected to be
available in Q1 2020.
- Permits for Skouries and
Olympias received: Permits allow for, among other things,
installation of electrical and mechanical equipment at Skouries and
Olympias. Subsequent to the quarter the Company also received
approval for the Skouries building permit, which will allow the
Company to begin installation of the Skouries mill building, and
consent from the Central Archaeological Council to relocate an
ancient mining furnace from the Skouries open pit area, subject to
Ministerial approval.
- Successful ramp up at
Lamaque: Lamaque achieved commercial production in April
2019 and has had two successful operating quarters. In September
2019, the Company announced that it is undertaking a Preliminary
Economic Assessment (“PEA”) to increase average annual production
from approximately 130,000 ounces of gold to approximately 170,000
ounces of gold.
- Increased Q3 gold
production and reiterating 2019 annual guidance: Gold
production for the quarter totalled 101,596 ounces with 276,376
ounces produced year-to-date. Quarterly production included 32,037
ounces from Lamaque in its second quarter of commercial operations
and was partially offset by a decrease in production at Olympias as
a result of reduced tonnage fed to the processing plant.
- Steady EBITDA:
Higher sales volumes in the quarter resulted in earnings before
interest, taxes and depreciation and amortization ("EBITDA") of
$73.2 million. Adjusted EBITDA of $75.9 million excludes the impact
of non-cash share-based compensation expense.
- Liquidity
strengthened: The Company finished the quarter with
approximately $322 million of liquidity including $134.9 million in
cash, cash equivalents and term deposits and approximately $187
million available under its $250 million revolving credit facility,
with $63 million of capacity on the revolving credit facility
allocated to secure certain reclamation obligations in connection
with its operations.
- Positive net earnings per
share: Net earnings to shareholders in the quarter
totalled $4.2 million, or $0.03 per share. Adjusted net earnings
were $7.5 million, or $0.05 per share, after adjusting for non-cash
deferred tax expense relating to foreign currency exchange rate
fluctuations.
Eldorado's President and CEO, George Burns,
stated: "We achieved several key milestones in the third quarter,
including an excellent quarter at Lamaque, positive net earnings
and steady EBITDA. At Kisladag positive test results have given us
the confidence to begin waste stripping, which should extend the
life of that asset. I’m very pleased with progress we are making in
Greece. We have received installation permits for Skouries and
Olympias as well as consent to move some historic mining workings
from our Skouries site. We will continue to work with the
government towards a mutually acceptable path forward to build
safe, modern, world-class operations in Greece, including approval
to implement dry stack tailings at Skouries. I look forward to
working with the team on the exciting path we have in front of us
as we move into 2020."
Consolidated Financial and Operational
Highlights
|
3 months ended September 30, |
9 months ended September 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Revenue (1) |
$ |
172.3 |
|
$ |
81.1 |
|
$ |
426.0 |
|
$ |
366.1 |
|
Gold revenue (1) |
$ |
150.2 |
|
$ |
76.0 |
|
$ |
355.6 |
|
$ |
312.8 |
|
Gold produced (oz) (2) |
|
101,596 |
|
|
84,783 |
|
|
276,376 |
|
|
273,261 |
|
Gold sold (oz) (1) |
|
99,241 |
|
|
64,589 |
|
|
256,000 |
|
|
245,400 |
|
Average realized gold price ($/oz sold) (5) |
$ |
1,513 |
|
$ |
1,177 |
|
$ |
1,389 |
|
$ |
1,274 |
|
Cash operating costs ($/oz sold) (3,5) |
|
560 |
|
|
754 |
|
|
602 |
|
|
625 |
|
Total cash costs ($/oz sold) (3,5) |
|
603 |
|
|
762 |
|
|
641 |
|
|
647 |
|
All-in sustaining costs ($/oz sold) (3,5) |
|
1,031 |
|
|
1,112 |
|
|
998 |
|
|
944 |
|
Net earnings (loss) for the period (4) |
|
4.2 |
|
|
(128.0 |
) |
|
(10.6 |
) |
|
(143.7 |
) |
Net earnings (loss) per share – basic ($/share) (4) |
|
0.03 |
|
|
(0.81 |
) |
|
(0.07 |
) |
|
(0.91 |
) |
Adjusted net earnings (loss) (4,5) |
|
7.5 |
|
|
(21.9 |
) |
|
(14.7 |
) |
|
(9.5 |
) |
Adjusted net earnings (loss) per share ($/share) (4,5) |
|
0.05 |
|
|
(0.14 |
) |
|
(0.09 |
) |
|
(0.06 |
) |
Cash flow from operating activities before changes in working
capital (5,6) |
|
62.9 |
|
|
(1.7 |
) |
|
108.6 |
|
|
60.4 |
|
Cash, cash equivalents and term deposits |
$ |
134.9 |
|
$ |
385.0 |
|
$ |
134.9 |
|
$ |
385.0 |
|
(1) Excludes sales of inventory mined
at Lamaque and Olympias (Q1 2018) during the pre-commercial
production period. (2) Includes pre-commercial
production at Lamaque and Olympias (Q1 2018).(3) By-product
revenues are off-set against cash operating costs.(4) Attributable
to shareholders of the Company.(5) These measures are non-IFRS
measures. See the September 30, 2019 MD&A for explanations and
discussion of these non-IFRS measures. (6) 2018 amounts have
been adjusted to reflect reclassifications in cash flow from
operating activities in the current periods.
Gold sales of 99,241 ounces increased from
64,589 ounces in the third quarter of 2018 primarily due to the
sale of 31,122 ounces from Lamaque in its second quarter of
commercial operations.
Total revenues increased to $172.3 million from
$81.1 million in the third quarter of 2018 as a result of higher
sales volumes and a higher average realized gold price of $1,513
per ounce in the third quarter of 2019 compared to $1,177 per ounce
in the third quarter of 2018.
Cash operating costs per ounce sold decreased to
$560 from $754 in the third quarter of 2018, primarily due to the
ramp-up of mining, crushing and placement of ore on the Kisladag
heap leach pad beginning in April 2019, and the partial allocation
of processing costs to gold inventory in the heap leach pad. This
was partially offset by higher cash operating costs per ounce sold
at Olympias as a result of lower production levels and at
Efemcukuru as a result of increased transportation costs.
Net earnings attributable to shareholders of
$4.2 million ($0.03 per share) improved from a net loss
attributable to shareholders in the third quarter of 2018 of $128.0
million ($0.81 loss per share). The improvement was primarily a
result of higher sales volumes in the third quarter and an
impairment charge in the third quarter of 2018 of $117.6 million
($94.1 million net of deferred income tax recovery) relating to the
Kisladag heap leach pad.
Higher sales volumes in the quarter resulted in
EBITDA of $73.2 million. Adjusted EBITDA of $75.9 million excludes
the impact of share based payments.
Adjusted net earnings were $7.5 million ($0.05
per share) in the quarter, compared to adjusted net loss of $21.9
million ($0.14 loss per share) in the third quarter of 2018.
Adjusted net earnings in the third quarter of 2019 removes, among
other things, $3.4 million of deferred tax expense relating to
foreign currency exchange rate fluctuations. Adjusted net loss in
the third quarter of 2018 primarily removes the $117.6 million
impairment charge ($94.1 million net of deferred income tax
recovery) relating to the Kisladag heap leach operations.
Gold Operations
|
3 months ended September 30, |
9 months ended September 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Total |
|
|
|
|
Ounces produced (1) |
|
101,596 |
|
|
84,783 |
|
|
276,376 |
|
|
273,261 |
|
Ounces sold (2) |
|
99,241 |
|
|
64,589 |
|
|
256,000 |
|
|
245,400 |
|
Cash operating costs ($/oz sold) (4) |
$ |
560 |
|
$ |
754 |
|
$ |
602 |
|
$ |
625 |
|
All-in sustaining costs ($/oz sold) (4) |
$ |
1,031 |
|
$ |
1,112 |
|
$ |
998 |
|
$ |
944 |
|
Sustaining capex (4) |
$ |
30.0 |
|
$ |
12.1 |
|
$ |
56.3 |
|
$ |
37.2 |
|
Kisladag |
|
|
|
|
Ounces produced (3) |
|
35,885 |
|
|
34,070 |
|
|
89,204 |
|
|
143,814 |
|
Ounces sold |
|
35,881 |
|
|
34,069 |
|
|
89,208 |
|
|
143,539 |
|
Cash operating costs ($/oz sold) (4) |
$ |
399 |
|
$ |
890 |
|
$ |
442 |
|
$ |
685 |
|
All-in sustaining costs ($/oz sold) (4) |
$ |
566 |
|
$ |
1,010 |
|
$ |
580 |
|
$ |
821 |
|
Sustaining capex (4) |
$ |
3.9 |
|
$ |
3.3 |
|
$ |
8.0 |
|
$ |
13.6 |
|
Lamaque |
|
|
|
|
Ounces produced (1) |
|
32,037 |
|
|
13,430 |
|
|
84,855 |
|
|
19,304 |
|
Ounces sold (2) |
|
31,122 |
|
|
n/a |
|
|
55,452 |
|
n/a |
|
Cash operating costs ($/oz sold) (4) |
$ |
480 |
|
|
n/a |
|
$ |
496 |
|
n/a |
|
All-in sustaining costs ($/oz sold) (4) |
$ |
1,089 |
|
|
n/a |
|
$ |
968 |
|
n/a |
|
Sustaining capex (4) |
$ |
15.9 |
|
|
n/a |
|
$ |
21.2 |
|
n/a |
|
Efemcukuru |
|
|
|
|
Ounces produced |
|
25,733 |
|
|
24,493 |
|
|
77,524 |
|
|
71,494 |
|
Ounces sold |
|
25,583 |
|
|
23,104 |
|
|
80,222 |
|
|
73,957 |
|
Cash operating costs ($/oz sold) (4) |
$ |
591 |
|
$ |
456 |
|
$ |
596 |
|
$ |
503 |
|
All-in sustaining costs ($/oz sold) (4) |
$ |
900 |
|
$ |
766 |
|
$ |
859 |
|
$ |
769 |
|
Sustaining capex (4) |
$ |
5.2 |
|
$ |
5.7 |
|
$ |
14.2 |
|
$ |
15.3 |
|
Olympias |
|
|
|
|
Ounces produced |
|
7,941 |
|
|
12,790 |
|
|
24,793 |
|
|
38,649 |
|
Ounces sold |
|
6,655 |
|
|
7,416 |
|
|
31,118 |
|
|
27,904 |
|
Cash operating costs ($/ounce) |
$ |
1,678 |
|
$ |
1,058 |
|
$ |
1,268 |
|
$ |
643 |
|
All in sustaining costs ($/ounce) |
$ |
2,598 |
|
$ |
1,688 |
|
$ |
1,776 |
|
$ |
1,107 |
|
Sustaining capex |
$ |
4.9 |
|
$ |
3.1 |
|
$ |
12.9 |
|
$ |
8.3 |
|
(1) Includes
pre-commercial production at Lamaque and at Olympias (Q1 2018).(2)
Excludes sales of inventory produced at Lamaque and Olympias (Q1
2018) during the pre-commercial production period. In the nine
months ended September 30, 2019, 27,627 ounces were sold from
inventory produced during the pre-commercial production
period. (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) These measures are non-IFRS
measures. See the September 30, 2019 MD&A for explanations and
discussion of these non-IFRS measures.
Gold production of 101,596 ounces increased from
84,783 ounces in the third quarter of 2018 primarily due to 32,037
ounces produced at Lamaque in its second quarter of commercial
operations. This was partially offset by a decrease in production
at Olympias as a result of reduced tonnage fed to the processing
plant.
Conference Call
A conference call to discuss the details of the
Company’s Q3 2019 results will be held by senior management on
Friday, November 1, 2019 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/eldoradogold20191101.html.
Conference
Call Details |
|
Replay
(available until Dec. 6, 2019) |
Date: |
November 1, 2019 |
|
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 |
|
Access code: |
3612 |
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, Serbia, and Brazil. The Company has a highly
skilled and dedicated workforce, safe and responsible operations, a
portfolio of high-quality assets, and long-term partnerships with
local communities. Eldorado's common shares trade on the Toronto
Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE:
EGO).
Contacts
Investor Relations
Peter Lekich, Manager Investor
Relations604.687.4018 or 1.888.353.8166
peter.lekich@eldoradogold.com
Media
Louise Burgess, Director Communications &
Government Relations604.687.4018 or 1.888.353.8166
louise.burgess@eldoradogold.com
Non-IFRS Measures
Certain non-IFRS measures are included in this
press release, including 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") and
sustaining capital. Please see the September 30, 2019 MD&A
for explanations and discussion of these non-IFRS measures. The
Company believes that these measures, in addition to conventional
measures prepared in accordance with International Financial
Reporting Standards (“IFRS”), provide investors an improved ability
to evaluate the underlying performance of the Company. The non-IFRS
measures are intended to provide additional information and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. These measures do not
have any standardized meaning prescribed under IFRS, and therefore
may not be comparable to other issuers.
Cautionary Note about Forward-looking Statements and
Information
Certain of the statements made and information
provided in this press release are forward-looking statements or
information within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and applicable Canadian
securities laws. Often, these forward-looking statements and
forward-looking information can be identified by the use of words
such as "plans", "expects", "is expected", "budget", “continue”,
“projected”, "scheduled", "estimates", "forecasts", "intends",
"anticipates", or "believes" or the negatives thereof or variations
of such words and phrases or statements that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved.
Forward-looking statements or information
contained in this release include, but are not limited to,
statements or information with respect to: our guidance and
outlook, including expected production, cost guidance and
recoveries of gold, favourable economics for our heap leaching plan
and the ability to extend mine life at our projects, including at
Kisladag through further metallurgical tests on deeper material,
completion and results of waste stripping at Kisladag, improved
production at Olympias, completion and results of construction and
the PEA at Lamaque, completion of construction at Skouries, planned
capital and exploration expenditures; 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 the geopolitical, economic, permitting and legal climate that
we operate in; the future price of gold and other commodities; the
global concentrate market; exchange rates; anticipated costs and
expenses; production, mineral reserves and resources and
metallurgical recoveries, the impact of acquisitions, dispositions,
suspensions or delays on our business and the ability to achieve
our goals. In particular, except where otherwise stated, we have
assumed a continuation of existing business operations on
substantially the same basis as exists at the time of this
release.
Even though our management believes that the
assumptions made and the expectations represented by such
statements or information are reasonable, there can be no assurance
that the forward-looking statement or information will prove to be
accurate. Many assumptions may be difficult to predict and are
beyond our control.
Furthermore, should one or more of the risks,
uncertainties or other factors materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those described in forward-looking statements or information.
These risks, uncertainties and other factors include, among others,
the following: results of further testwork, recoveries of gold and
other metals; geopolitical and economic climate (global and local),
risks related to mineral tenure and permits; gold and other
commodity price volatility; continued softening of the global
concentrate market; risks regarding potential and pending
litigation and arbitration proceedings relating to the Company’s,
business, properties and operations; expected impact on reserves
and the carrying value; the updating of the reserve and resource
models and life of mine plans; mining operational and development
risk; financing risks, foreign country operational risks; risks of
sovereign investment; regulatory risks and liabilities including,
environmental regulatory restrictions and liability; discrepancies
between actual and estimated production, mineral reserves and
resources and metallurgical testing and recoveries; additional
funding requirements; currency fluctuations; community and
non-governmental organization actions; speculative nature of gold
exploration; dilution; share price volatility and the price of the
common shares of the Company; competition; loss of key employees;
and defective title to mineral claims or properties, as well as
those risk factors discussed in the sections titled
“Forward-Looking Statements” and "Risk factors in our business" in
the Company's most recent Annual Information Form & Form
40-F. The reader is directed to carefully review the detailed risk
discussion in our most recent Annual Information Form filed on
SEDAR under our Company name, which discussion is incorporated by
reference in this release, for a fuller understanding of the risks
and uncertainties that affect the Company’s business and
operations.
Forward-looking statements and information is
designed to help you understand management’s current views of our
near and longer term prospects, and it may not be appropriate for
other purposes.
There can be no assurance that forward-looking
statements or information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, you should not place
undue reliance on the forward-looking statements or information
contained herein. Except as required by law, we do not expect to
update forward-looking statements and information continually as
conditions change.
Financial Information and condensed statements
contained herein or attached hereto may not be suitable for readers
that are unfamiliar with the Company and is not a substitute for
reading the Company’s financial statements and related MD&A
available on our website and on SEDAR under our Company name. The
reader is directed to carefully review such document for a full
understanding of the financial information summarized herein.
Except as otherwise noted, scientific and
technical information contained in this press release was reviewed
and approved by Paul Skayman, FAusIMM, 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 |
|
September 30, 2019 |
|
December 31, 2018 |
ASSETS |
|
|
|
|
|
Current
assets |
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
129,978 |
|
|
$ |
286,312 |
|
Term deposits |
|
|
4,889 |
|
|
6,646 |
|
Restricted cash |
|
|
20 |
|
|
296 |
|
Marketable securities |
|
|
3,357 |
|
|
2,572 |
|
Accounts receivable and other |
4 |
|
77,616 |
|
|
80,987 |
|
Inventories |
5 |
|
151,459 |
|
|
137,885 |
|
Assets held for sale |
14 |
|
12,591 |
|
|
— |
|
|
|
|
379,910 |
|
|
514,698 |
|
Restricted cash |
|
|
3,234 |
|
|
13,449 |
|
Other assets |
|
|
15,418 |
|
|
10,592 |
|
Defined benefit pension
plan |
|
|
9,467 |
|
|
9,120 |
|
Property, plant and
equipment |
|
|
3,997,067 |
|
|
3,988,476 |
|
Goodwill |
|
|
92,591 |
|
|
92,591 |
|
|
|
|
$ |
4,497,687 |
|
|
$ |
4,628,926 |
|
LIABILITIES &
EQUITY |
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
Accounts payable and accrued liabilities |
|
|
$ |
121,284 |
|
|
$ |
137,900 |
|
Current portion of lease liabilities |
|
|
8,420 |
|
|
2,978 |
|
Current portion of debt |
6 |
|
33,333 |
|
|
— |
|
Current portion of asset retirement obligations |
|
|
824 |
|
|
824 |
|
Liabilities associated with assets held for sale |
14 |
|
4,207 |
|
|
— |
|
|
|
|
168,068 |
|
|
141,702 |
|
Debt |
6 |
|
449,755 |
|
|
595,977 |
|
Lease liabilities |
|
|
18,529 |
|
|
6,538 |
|
Defined benefit pension
plan |
|
|
14,884 |
|
|
14,375 |
|
Asset retirement
obligations |
|
|
88,568 |
|
|
93,319 |
|
Deferred income tax
liabilities |
|
|
419,205 |
|
|
429,929 |
|
|
|
|
1,159,009 |
|
|
1,281,840 |
|
Equity |
|
|
|
|
|
Share capital |
|
|
3,008,172 |
|
|
3,007,924 |
|
Treasury stock |
|
|
(8,737 |
) |
|
(10,104 |
) |
Contributed surplus |
|
|
2,625,457 |
|
|
2,620,799 |
|
Accumulated other
comprehensive loss |
|
|
(24,296 |
) |
|
(24,494 |
) |
Deficit |
|
|
(2,321,034 |
) |
|
(2,310,453 |
) |
Total equity
attributable to shareholders of the Company |
|
|
3,279,562 |
|
|
3,283,672 |
|
Attributable to
non-controlling interests |
|
|
59,116 |
|
|
63,414 |
|
|
|
|
3,338,678 |
|
|
3,347,086 |
|
|
|
|
$ |
4,497,687 |
|
|
$ |
4,628,926 |
|
Eldorado Gold CorporationCondensed Consolidated
Interim Statements of
Operations
For the three and nine months ended September 30, 2019 and
2018(Unaudited – in thousands of U.S. dollars except share and per
share amounts)
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
September 30, |
|
September 30, |
|
Note |
2019 |
|
2018 |
|
2019 |
|
2018 |
Revenue |
|
|
|
|
|
|
|
|
Metal sales |
7 |
$ |
172,256 |
|
|
$ |
81,070 |
|
|
$ |
425,958 |
|
|
$ |
366,146 |
|
|
|
|
|
|
|
|
|
|
Cost of
sales |
|
|
|
|
|
|
|
|
Production costs |
|
84,813 |
|
|
56,066 |
|
|
237,630 |
|
|
209,145 |
|
Depreciation and
amortization |
|
40,017 |
|
|
20,257 |
|
|
101,147 |
|
|
83,927 |
|
|
|
124,830 |
|
|
76,323 |
|
|
338,777 |
|
|
293,072 |
|
|
|
|
|
|
|
|
|
|
Earnings from mine
operations |
|
47,426 |
|
|
4,747 |
|
|
87,181 |
|
|
73,074 |
|
|
|
|
|
|
|
|
|
|
Exploration and evaluation
expense |
|
2,774 |
|
|
8,014 |
|
|
10,668 |
|
|
26,668 |
|
Mine standby costs |
|
2,529 |
|
|
4,460 |
|
|
13,972 |
|
|
11,470 |
|
General and administrative
expense |
|
7,431 |
|
|
10,896 |
|
|
22,687 |
|
|
33,127 |
|
Defined benefit pension plan
expense |
|
458 |
|
|
201 |
|
|
1,567 |
|
|
2,331 |
|
Share based payments |
10 |
2,727 |
|
|
1,580 |
|
|
8,127 |
|
|
5,742 |
|
Impairment (reversal of
impairment) |
14,15 |
— |
|
|
117,570 |
|
|
(11,690 |
) |
|
117,570 |
|
(Write-up) write-down of
assets |
|
(414 |
) |
|
536 |
|
|
13 |
|
|
1,386 |
|
Foreign exchange loss
(gain) |
|
643 |
|
|
(3,034 |
) |
|
878 |
|
|
374 |
|
Earnings (loss) from
operations |
|
31,278 |
|
|
(135,476 |
) |
|
40,959 |
|
|
(125,594 |
) |
|
|
|
|
|
|
|
|
|
Other income |
8(a) |
871 |
|
|
6,284 |
|
|
11,159 |
|
|
13,878 |
|
Finance costs |
8(b) |
(13,170 |
) |
|
(839 |
) |
|
(37,287 |
) |
|
(8,113 |
) |
Earnings (loss) from
operations before income tax |
|
18,979 |
|
|
(130,031 |
) |
|
14,831 |
|
|
(119,829 |
) |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
15,888 |
|
|
661 |
|
|
29,930 |
|
|
29,324 |
|
Net earnings (loss)
for the period |
|
$ |
3,091 |
|
|
$ |
(130,692 |
) |
|
$ |
(15,099 |
) |
|
$ |
(149,153 |
) |
|
|
|
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
|
|
|
|
Shareholders of the
Company |
|
4,233 |
|
|
(128,045 |
) |
|
(10,581 |
) |
|
(143,718 |
) |
Non-controlling interests |
|
(1,142 |
) |
|
(2,647 |
) |
|
(4,518 |
) |
|
(5,435 |
) |
Net earnings (loss)
for the period |
|
$ |
3,091 |
|
|
$ |
(130,692 |
) |
|
$ |
(15,099 |
) |
|
$ |
(149,153 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of
shares outstanding (thousands) |
|
|
|
|
|
|
|
|
Basic |
|
158,462 |
|
|
158,294 |
|
|
158,409 |
|
|
158,434 |
|
Diluted |
|
161,735 |
|
|
158,294 |
|
|
158,409 |
|
|
158,434 |
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
per share attributable to shareholders of the
Company: |
|
|
|
|
|
|
|
|
Basic earnings (loss) per
share |
|
$ |
0.03 |
|
|
$ |
(0.81 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.91 |
) |
Diluted earnings (loss) per
share |
|
$ |
0.03 |
|
|
$ |
(0.81 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.91 |
) |
Eldorado Gold CorporationCondensed Consolidated
Interim Statements of Comprehensive Income (Loss)For the three and
nine months ended September 30, 2019 and 2018(Unaudited – in
thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
September 30, |
|
September 30, |
|
Note |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
for the period |
|
|
$ |
3,091 |
|
|
$ |
(130,692 |
) |
|
$ |
(15,099 |
) |
|
$ |
(149,153 |
) |
Other comprehensive
income (loss): |
|
|
|
|
|
|
|
|
|
Items that will not be
reclassified to earnings or loss: |
|
|
|
|
|
|
|
|
|
Change in fair value of investments in equity securities, net of
tax |
|
|
(378 |
) |
|
(875 |
) |
|
785 |
|
|
(2,034 |
) |
Actuarial (loss) gain on defined benefit pension plan, net of
tax |
|
|
(178 |
) |
|
(200 |
) |
|
(587 |
) |
|
450 |
|
Total other
comprehensive income (loss) for the period |
|
|
(556 |
) |
|
(1,075 |
) |
|
198 |
|
|
(1,584 |
) |
Total comprehensive
income (loss) for the period |
|
|
$ |
2,535 |
|
|
$ |
(131,767 |
) |
|
$ |
(14,901 |
) |
|
$ |
(150,737 |
) |
|
|
|
|
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
|
|
|
|
|
Shareholders of the
Company |
|
|
3,677 |
|
|
(129,120 |
) |
|
(10,383 |
) |
|
(145,302 |
) |
Non-controlling interests |
|
|
(1,142 |
) |
|
(2,647 |
) |
|
(4,518 |
) |
|
(5,435 |
) |
|
|
|
$ |
2,535 |
|
|
$ |
(131,767 |
) |
|
$ |
(14,901 |
) |
|
$ |
(150,737 |
) |
Eldorado Gold CorporationCondensed Consolidated
Interim Statements of Cash
Flows
For the three and nine months ended September 30, 2019 and
2018(Unaudited – in thousands of U.S. dollars)
|
|
Three months ended |
|
Nine months ended |
|
|
September 30, |
|
September 30, |
|
Note |
2019 |
|
2018 |
|
2019 |
|
2018 |
Cash flows generated from
(used in): |
|
|
|
|
|
|
|
|
Operating
activities |
|
|
|
|
|
|
|
|
Net earnings (loss) for the
period |
|
$ |
3,091 |
|
|
$ |
(130,692 |
) |
|
$ |
(15,099 |
) |
|
$ |
(149,153 |
) |
Items not affecting cash: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
41,759 |
|
|
19,828 |
|
|
102,889 |
|
|
83,498 |
|
Finance costs |
8(b) |
13,170 |
|
|
839 |
|
|
37,287 |
|
|
8,113 |
|
Unrealized foreign exchange (gain) loss |
|
(555 |
) |
|
(144 |
) |
|
(906 |
) |
|
274 |
|
Income from royalty sale |
8(a) |
— |
|
|
— |
|
|
(8,075 |
) |
|
— |
|
Income tax expense |
|
15,888 |
|
|
661 |
|
|
29,930 |
|
|
29,324 |
|
Impairment (reversal) of impairment |
14,15 |
— |
|
|
117,570 |
|
|
(11,690 |
) |
|
117,570 |
|
(Write-up) write-down of assets |
|
(414 |
) |
|
536 |
|
|
13 |
|
|
1,386 |
|
Gain on derivatives and other investments |
8(a) |
— |
|
|
(2,326 |
) |
|
— |
|
|
(4,520 |
) |
Share based payments |
10 |
2,727 |
|
|
1,580 |
|
|
8,127 |
|
|
5,742 |
|
Defined benefit pension plan expense |
|
458 |
|
|
201 |
|
|
1,567 |
|
|
2,331 |
|
|
|
76,124 |
|
|
8,053 |
|
|
144,043 |
|
|
94,565 |
|
Property reclamation
payments |
|
(759 |
) |
|
(801 |
) |
|
(2,555 |
) |
|
(3,200 |
) |
Severance and pension
payments |
|
(332 |
) |
|
(49 |
) |
|
(1,681 |
) |
|
(2,299 |
) |
Income taxes paid |
|
(8,593 |
) |
|
(8,860 |
) |
|
(12,603 |
) |
|
(24,461 |
) |
Interest paid |
|
(3,505 |
) |
|
— |
|
|
(18,641 |
) |
|
(4,203 |
) |
Changes in non-cash working
capital |
11 |
(11,728 |
) |
|
15,638 |
|
|
(6,961 |
) |
|
2,200 |
|
Net cash generated
from operating activities |
|
51,207 |
|
|
13,981 |
|
|
101,602 |
|
|
62,602 |
|
|
|
|
|
|
|
|
|
|
Investing
activities |
|
|
|
|
|
|
|
|
Purchase of property, plant
and equipment |
|
(34,760 |
) |
|
(56,203 |
) |
|
(148,700 |
) |
|
(160,491 |
) |
Capitalized interest paid |
|
— |
|
|
— |
|
|
(3,848 |
) |
|
(14,172 |
) |
Proceeds from the sale of
property, plant and equipment |
|
108 |
|
|
68 |
|
|
3,880 |
|
|
7,880 |
|
Proceeds on pre-commercial
production sales, net |
|
— |
|
|
(3,894 |
) |
|
12,159 |
|
|
1,308 |
|
Value added taxes related to
mineral property expenditures, net |
|
104 |
|
|
1,858 |
|
|
(7,615 |
) |
|
6,660 |
|
(Investment in) redemption of
term deposits |
|
(114 |
) |
|
(5 |
) |
|
1,757 |
|
|
(1,123 |
) |
Decrease (increase) in
restricted cash |
6(b) |
297 |
|
|
(30 |
) |
|
10,491 |
|
|
(898 |
) |
Net cash used in
investing activities |
|
(34,365 |
) |
|
(58,206 |
) |
|
(131,876 |
) |
|
(160,836 |
) |
|
|
|
|
|
|
|
|
|
Financing
activities |
|
|
|
|
|
|
|
|
Issuance of common shares for
cash |
|
161 |
|
|
— |
|
|
179 |
|
|
— |
|
Contributions from
non-controlling interests |
|
220 |
|
|
— |
|
|
220 |
|
|
— |
|
Proceeds from borrowings |
|
— |
|
|
— |
|
|
494,000 |
|
|
— |
|
Repayment of borrowings |
6(c) |
— |
|
|
— |
|
|
(600,000 |
) |
|
— |
|
Loan financing costs |
|
(428 |
) |
|
— |
|
|
(15,423 |
) |
|
— |
|
Principal elements of lease
payments |
|
(2,387 |
) |
|
(601 |
) |
|
(4,773 |
) |
|
(815 |
) |
Purchase of treasury
stock |
|
— |
|
|
— |
|
|
— |
|
|
(2,108 |
) |
Net cash used in
financing activities |
|
(2,434 |
) |
|
(601 |
) |
|
(125,797 |
) |
|
(2,923 |
) |
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents |
|
14,408 |
|
|
(44,826 |
) |
|
(156,071 |
) |
|
(101,157 |
) |
Cash and cash
equivalents - beginning of period |
|
115,833 |
|
|
423,170 |
|
|
286,312 |
|
|
479,501 |
|
|
|
130,241 |
|
|
378,344 |
|
|
130,241 |
|
|
378,344 |
|
Cash in disposal group
held for sale |
14 |
(263 |
) |
|
— |
|
|
(263 |
) |
|
— |
|
Cash and cash
equivalents - end of period |
|
$ |
129,978 |
|
|
$ |
378,344 |
|
|
$ |
129,978 |
|
|
$ |
378,344 |
|
Eldorado Gold CorporationCondensed Consolidated
Interim Statements of Changes in
Equity
For the three and nine months ended September 30, 2019 and
2018(Unaudited – in thousands of U.S. dollars)
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
September 30, |
|
September 30, |
|
Note |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Share
capital |
|
|
|
|
|
|
|
|
|
Balance beginning of
period |
|
|
$ |
3,007,944 |
|
|
$ |
3,007,924 |
|
|
$ |
3,007,924 |
|
|
$ |
3,007,924 |
|
Shares issued upon exercise of share options, for cash |
|
|
161 |
|
|
— |
|
|
179 |
|
|
— |
|
Transfer of contributed surplus on exercise of options |
|
|
67 |
|
|
— |
|
|
69 |
|
|
— |
|
Balance end of period |
|
|
$ |
3,008,172 |
|
|
$ |
3,007,924 |
|
|
$ |
3,008,172 |
|
|
$ |
3,007,924 |
|
|
|
|
|
|
|
|
|
|
|
Treasury
stock |
|
|
|
|
|
|
|
|
|
Balance beginning of
period |
|
|
$ |
(8,813 |
) |
|
$ |
(10,104 |
) |
|
$ |
(10,104 |
) |
|
$ |
(11,056 |
) |
Purchase of treasury stock |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,108 |
) |
Shares redeemed upon exercise of restricted share units |
|
|
76 |
|
|
— |
|
|
1,367 |
|
|
3,060 |
|
Balance end of period |
|
|
$ |
(8,737 |
) |
|
$ |
(10,104 |
) |
|
$ |
(8,737 |
) |
|
$ |
(10,104 |
) |
|
|
|
|
|
|
|
|
|
|
Contributed
surplus |
|
|
|
|
|
|
|
|
|
Balance beginning of
period |
|
|
$ |
2,623,523 |
|
|
$ |
2,617,108 |
|
|
$ |
2,620,799 |
|
|
$ |
2,616,593 |
|
Share based payments |
|
|
2,077 |
|
|
1,861 |
|
|
6,094 |
|
|
5,436 |
|
Shares redeemed upon exercise of restricted share units |
|
|
(76 |
) |
|
— |
|
|
(1,367 |
) |
|
(3,060 |
) |
Transfer to share capital on exercise of options |
|
|
(67 |
) |
|
— |
|
|
(69 |
) |
|
— |
|
Balance end of period |
|
|
$ |
2,625,457 |
|
|
$ |
2,618,969 |
|
|
$ |
2,625,457 |
|
|
$ |
2,618,969 |
|
|
|
|
|
|
|
|
|
|
|
Accumulated other
comprehensive loss |
|
|
|
|
|
|
|
|
|
Balance beginning of
period |
|
|
$ |
(23,740 |
) |
|
$ |
(21,859 |
) |
|
$ |
(24,494 |
) |
|
$ |
(21,350 |
) |
Other comprehensive (loss) income for the period |
|
|
(556 |
) |
|
(1,075 |
) |
|
198 |
|
|
(1,584 |
) |
Balance end of period |
|
|
$ |
(24,296 |
) |
|
$ |
(22,934 |
) |
|
$ |
(24,296 |
) |
|
$ |
(22,934 |
) |
|
|
|
|
|
|
|
|
|
|
Deficit |
|
|
|
|
|
|
|
|
|
Balance beginning of
period |
|
|
$ |
(2,325,267 |
) |
|
$ |
(1,964,242 |
) |
|
$ |
(2,310,453 |
) |
|
$ |
(1,948,569 |
) |
Net earnings (loss) attributable to shareholders of the
Company |
|
|
4,233 |
|
|
(128,045 |
) |
|
(10,581 |
) |
|
(143,718 |
) |
Balance end of period |
|
|
$ |
(2,321,034 |
) |
|
$ |
(2,092,287 |
) |
|
$ |
(2,321,034 |
) |
|
$ |
(2,092,287 |
) |
Total equity
attributable to shareholders of the Company |
|
|
$ |
3,279,562 |
|
|
$ |
3,501,568 |
|
|
$ |
3,279,562 |
|
|
$ |
3,501,568 |
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests |
|
|
|
|
|
|
|
|
|
Balance beginning of
period |
|
|
$ |
60,257 |
|
|
$ |
78,153 |
|
|
$ |
63,414 |
|
|
$ |
79,940 |
|
Net loss attributable to non-controlling interests |
|
|
(1,142 |
) |
|
(2,647 |
) |
|
(4,518 |
) |
|
(5,435 |
) |
Contributions from non-controlling interests |
|
|
1 |
|
|
220 |
|
|
220 |
|
|
1,221 |
|
Balance end of period |
|
|
$ |
59,116 |
|
|
$ |
75,726 |
|
|
$ |
59,116 |
|
|
$ |
75,726 |
|
Total
equity |
|
|
$ |
3,338,678 |
|
|
$ |
3,577,294 |
|
|
$ |
3,338,678 |
|
|
$ |
3,577,294 |
|
Please see the Condensed Consolidated Interim Financial
Statements dated September 30, 2019 for notes to the accounts.
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