Eldorado Gold Corporation, (“Eldorado” or “the Company”) today reports the Company’s financial and operational results for the fourth quarter and year ended December 31, 2019. For further information please see the Company’s Consolidated Financial Statements and Management’s Discussion and Analysis filed on SEDAR at www.sedar.com under the Company’s profile.

Year-End Financial and Operating Results Overview

  • 2019 Production on plan, highest total production in three years: Annual gold production of 395,331 ounces of gold (2018: 349,147 ounces), including pre-commercial production.
  • Steady operating costs: Cash operating costs were $608 per ounce of gold sold for 2019 and All-in Sustaining Costs (AISC) were $1,034 per ounce of gold sold, compared to $625 per ounce of gold sold and $994 per ounce of gold sold for 2018.
  • 2020 production guidance increased year-on-year: 2020 guidance is 520,000-550,000 ounces of gold, an increase over the 390,000-420,000 ounces of gold forecast for 2019.
  • Kisladag mine life extended to 15 years: Results from the ongoing testwork indicate that extended leach cycles and the addition of a high pressure grinding roll circuit should increase the expected recovery at Kisladag to approximately 56%, resulting in the mine life at Kisladag now projected through 2034 at an average production of 160,000 ounces of gold per year. Further details on Kisladag are included in Eldorado’s February 20, 2020 press release.
  • Successful first year of operations at Lamaque: Eldorado declared commercial production at Lamaque on March 31, 2019. Lamaque produced 113,940 ounces of gold (including pre-commercial production) in 2019. Recent drilling results at Triangle and Ormaque will be incorporated into the mine plan by the Company as it evaluates its next steps in expanding production at Lamaque.
  • Refinancing completed: In June 2019 the Company completed  its offering of $300 million aggregate principal amount of 9.5% senior second lien notes due 2024 (the "Notes") and its $450 million amended and restated senior secured credit facility (the "Facility"). Eldorado used the net proceeds from the sale of the Notes and $200 million in term loan proceeds drawn under the Facility, together with $100 million cash on hand, to redeem its outstanding $600 million 6.125% senior notes due December 2020.
  • Permits for Skouries and Olympias received: Permits allow for, among other things, installation of electrical and mechanical equipment at Skouries and Olympias, the installation of the Skouries mill building, and consent from the Central Archaeological Council to relocate an ancient mining furnace from the Skouries open pit area.
  • Significant increased cash flow provided from operations: Net cash provided by operating activities was $165.8 million in 2019 (2018: $67.5 million).
  • Net earnings attributable to shareholders: 2019 net earnings attributable to shareholders of the Company were $80.6 million or $0.51 per share, mainly attributable to net impairment reversals of $96.9 million ($79.9 million net of deferred income tax) for Kisladag and Vila Nova. Net loss attributable to shareholders of the Company was $361.9 million or $2.28 loss per share in 2018, mainly attributable to impairment charges of $447.8 million ($328.4 million net of deferred income tax), of which $117.6 million ($94.1 million net of deferred income tax) related to Kisladag.  Adjusted net earnings attributable to shareholders of the Company in 2019 was $5.6 million, or $0.04 per share (2018: Adjusted net loss attributed to shareholders of the Company of $28.6 million, or $0.17 loss per share).
  • Increased EBITDA: EBITDA for the year was $311.3 million ($361.8 million loss in 2018) and adjusted EBITDA for the year was $235.6 million ($99.6 million in 2018).  Adjustments in both years included, among other things, removal of the non-cash impact of impairments and impairment reversals.
  • Liquidity strengthened: The Company finished the year with approximately $366 million of liquidity including $181 million in cash, cash equivalents and term deposits and approximately $185 million available under the remaining $250 million of the Facility, with $65 million of the capacity on the Facility allocated to secure certain reclamation obligations in connection with its operations. 

Fourth Quarter 2019 Highlights

  • Increased production: Eldorado produced 118,955 ounces of gold in Q4, the highest quarterly gold production in nearly four years.
  • Operating costs decreasing: Q4 2019 cash operating costs of $621 per ounce sold and all-in sustaining costs of $1,110 per ounce sold were lower than Q4 2018 ($626 per ounce sold and $1,200 per ounce sold, respectively, for 2018).
  • Kisladag impairment reversal: As a result of the mine life extension and continuation of heap leaching, a net impairment reversal of $85.2 million ($68.2 million, net of deferred income tax) was recorded in Q4 2019.   
  • Net earnings attributable to shareholders: Q4 2019 net earnings attributable to shareholders of the Company was $91.2 million or $0.57 per share, mainly attributable to a net impairment reversal of $85.2 million ($68.2 million net of deferred income tax) for Kisladag. Net loss attributable to shareholders of the Company in Q4 2018 was $218.2 million or $1.38 loss per share. Adjusted net earnings attributable to shareholders of the Company in Q4 2019 was $20.3 million, or $0.13 per share (Q4 2018: adjusted net loss attributable to shareholders of the Company of $18.9 million, or $0.11 loss per share).
  • Increased EBITDA: Q4 2019 EBITDA was $158.7 million ($327.9 million loss in Q4 2018) and Q4 2019 adjusted EBITDA was $80.3 million ($9.0 million in Q4 2018).  Adjustments in both years included, among other things, removal of the non-cash impact of impairments and impairment reversals.  
  • Updated reserves: As of September 30, 2019, total proven and probable reserves of 384 million tonnes at 1.32 grams per tonne gold containing 16.4 million ounces were reported.

Eldorado's President and CEO, George Burns, said: “2019 was a pivotal year for the Company, as we achieved multiple, significant milestones. Production in the year was strong as we delivered our highest annual production in three years - over 394,000 ounces of gold - while maintaining steady discipline with operating costs. Importantly, in 2020 we expect production to grow again to between 520,000 and 550,000 ounces of gold. We are very pleased to have positive momentum behind our production profile and expect that the resulting increased cash flow will allow the Company to both invest in its growth opportunities and pay down its debt.”

"Other milestones achieved in the year include successfully putting Lamaque into commercial operation, completing the refinancing of our balance sheet, and clarifying a strong path forward for Kisladag as a core, producing asset. We also received long-awaited permits at Olympias and Skouries, as we continue engaging with the Greek government to set a path forward for Skouries, a world-class project that stands to create jobs, tax and export revenues, and economic opportunities for local communities. Together and individually, these achievements represent significant catalysts for Eldorado’s long-term, sustainable growth.”

Consolidated Financial and Operational Highlights

Summarized Annual Financial Results

  2019  2018  2017 
Revenue (1)$617.8 $459.0 $391.4 
Gold revenue (1)$530.9 $386.0 $333.3 
Gold produced (oz) (2) 395,331  349,147  292,971 
Gold sold (oz) (1) 374,902  304,256  264,080 
Average realized gold price ($/oz sold) (6)$1,416 $1,269 $1,262 
Cash operating costs  ($/oz sold) (3,6) 608  625  509 
Total cash costs ($/oz sold) (3,6) 645  650  534 
All-in sustaining costs ($/oz sold) (3,6) 1,034  994  922 
Net earnings (loss) for the period (4) 80.6  (361.9) (9.9)
Net earnings (loss) per share – basic ($/share) (4) 0.51  (2.28) (0.07)
Adjusted net earnings (loss) (4,5,6) 5.6  (28.6) 15.2 
Adjusted net earnings (loss) per share ($/share) (4,5,6) 0.04  (0.17) 0.10 
Cash flow from operating activities before changes in working capital (6,7) 150.6  61.1  67.7 
Cash, cash equivalents and term deposits 181.0  293.0  485.0 
  1. Excludes sales of inventory mined at Lamaque and Olympias during the pre-commercial production periods.    
  2. Includes pre-commercial production at Lamaque (2018, Q1 2019) and at Olympias (2017, Q1 2018).
  3. By-product revenues are off-set against cash operating costs.   
  4. Attributable to shareholders of the Company. Net earnings (loss) includes a $79.9 million impairment reversal (net of deferred income tax) in 2019 for Kisladag and Vila Nova and a $328.4 million impairment charge (net of deferred income tax) in 2018 for Olympias and Kisladag.
  5. See reconciliation of net earnings (loss) to adjusted net earnings (loss) in the MD&A section 'Non-IFRS Measures'.
  6. These measures are non-IFRS measures. See the MD&A section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS measures.
  7. 2018 and 2017 amounts have been adjusted to reflect reclassifications in cash flow from operating activities in the current period.

Summarized Quarterly Financial Results

2019Q1Q2Q3Q4 2019
Revenue (1)$80.0 $173.7 $172.3 $191.9 $617.8 
Gold revenue (1)$54.5 $150.1 $150.2 $176.1 $530.9 
Gold produced (oz) (2) 82,977  91,803  101,596  118,955  395,331 
Gold sold (oz) (1) 43,074  113,685  99,241  118,902  374,902 
Average realized gold price ($/oz sold) (6)$1,265 $1,321 $1,513 $1,475 $1,416 
Cash operating cost  ($/oz sold) (3,6) 625  631  560  621  608 
Total cash cost  ($/oz sold) (3,6) 652  670  603  652  645 
All-in sustaining cost ($/oz sold) (3,6) 1,132  917  1,031  1,110  1,034 
Net earnings (loss) (4,5) (27.0) 12.2  4.2  91.2  80.6 
Net earnings (loss) per share – basic ($/share) (4) (0.17) 0.08  0.03  0.57  0.51 
Adjusted net earnings (loss) (4,5,6) (17.9) (4.3) 7.5  20.3  5.6 
Adjusted net earnings (loss) per share ($/share) (4,5,6) (0.11) (0.03) 0.05  0.13  0.04 
Cash flow from operating activities before changes in working capital (6,7) 8.1  37.5  62.9  42.0  150.6 
Cash, cash equivalents and term deposits$227.5 $119.9 $134.9 $181.0 $181.0 
      
      
2018Q1Q2Q3Q4 2018
Revenue (1)$131.9 $153.2 $81.1 $92.8 $459.0 
Gold revenue (1)$115.4 $121.3 $76.0 $73.3 $386.0 
Gold produced (oz) (2) 89,372  99,105  84,783  75,887  349,147 
Gold sold (oz) (1) 86,587  94,224  64,589  58,856  304,256 
Average realized gold price ($/oz sold) (6)$1,333 $1,287 $1,177 $1,245 $1,269 
Cash operating cost  ($/oz sold) (3,6) 571  587  754  626  625 
Total cash cost  ($/oz sold) (3,6) 598  610  762  666  650 
All-in sustaining cost ($/oz sold) (3,6) 878  934  1,112  1,200  994 
Net earnings (loss) (4,5) 8.7  (24.4) (128.0) (218.2) (361.9)
Net earnings (loss) per share – basic ($/share) (4) 0.06 (0.15) (0.81) (1.38) (2.28)
Adjusted net earnings (loss) (4,5,6) 14.0  (1.8) (21.9) (18.9) (28.6)
Adjusted net earnings (loss) per share ($/share) (4,5,6) 0.09  (0.01) (0.14) (0.11) (0.17)
Cash flow from operating activities before changes in working capital (6,7) 35.8  26.3  (1.7) 0.8  61.1 
Cash, cash equivalents and term deposits$459.7 $429.8 $385.0 $293.0 $293.0 
  1. Excludes sales of inventory mined at Lamaque and Olympias during the pre-commercial production periods.    
  2. Includes pre-commercial production at Lamaque (2018, Q1 2019) and at Olympias (Q1 2018 only).
  3. By-product revenues are off-set against cash operating costs.   
  4. Attributable to shareholders of the Company.
  5. See reconciliation of net earnings (loss) to adjusted net earnings (loss) in the MD&A section 'Non-IFRS Measures'. Q2 2019 amounts have been updated for the inventory write-down adjustment in that period.  
  6. These measures are non-IFRS measures. See the MD&A section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS measures.   
  7. 2018 and Q1 2019 amounts have been adjusted to reflect reclassifications in cash flow from operating activities in later periods.

Gold sales of 374,902 ounces in 2019 increased from 304,256 ounces in 2018 primarily due to the sale of 86,745 ounces from Lamaque in its first year of commercial operations. Lamaque declared commercial production on March 31, 2019.

Total revenues increased to $617.8 million in 2019 from $459.0 million in 2018 as a result of higher sales volumes and a higher average realized gold price of $1,416 per ounce compared to $1,269 per ounce in 2018.

Cash operating costs per ounce sold decreased to $608 in 2019 from $625 in 2018, primarily due to the ramp-up of mining, crushing and placement of ore on the Kisladag heap leach pad beginning in April 2019, and the partial allocation of processing costs to gold inventory in the heap leach pad. This was partially offset by higher cash operating costs per ounce sold at Olympias as a result of lower production levels and at both Olympias and Efemcukuru as a result of increased concentrate transportation costs and treatment charges.

Net earnings attributable to shareholders in 2019 of $80.6 million ($0.51 per share) improved from a net loss attributable to shareholders of $361.9 million ($2.28 loss per share) in 2018. The improvement was primarily a result of higher sales volumes in 2019 and net impairment reversals of $96.9 million ($79.9 million net of deferred income tax) for Kisladag and Vila Nova, compared to impairment of $447.8 million ($328.4 million net of deferred income tax) in 2018 relating to Olympias and Kisladag. Net earnings attributable to shareholders in Q4 2019 was $91.2 million or $0.57 per share, mainly attributable to a net impairment reversal of $85.2 million ($68.2 million net of deferred income tax) for Kisladag in the fourth quarter.

Higher sales volumes in 2019 resulted in EBITDA of $311.3 million, including $158.7 million in Q4 2019. Adjusted EBITDA of $235.6 million in 2019 and $80.3 million in Q4 2019 exclude, among other things, the impact of the net impairment reversal.

Adjusted net earnings in 2019 were $5.6 million ($0.04 per share) compared to adjusted net loss of $28.6 million ($0.17 loss per share) in 2018. Higher sales volumes in Q4 2019 resulted in adjusted net earnings in Q4 2019 of $20.3 million ($0.13 per share) compared to adjusted net loss in Q4 2018 of $18.9 million ($0.11 loss per share). Adjustments in all periods primarily remove the impact of impairment and impairment reversals.

Operations Update and Outlook

Gold Operations

 3 months ended December 31,12 months ended December 31, 
  2019 2018 2019 20182020 Outlook
Total     
 Ounces produced (1) 118,955  75,887  395,331  349,147 520,000 – 550,000
Ounces sold (2) 118,902  58,856  374,902  304,256 n/a
Cash operating costs ($/oz sold) (4)$621 $626 $608 $625 $550 – 600
All-in sustaining costs ($/oz sold) (4)$1,110 $1,200 $1,034 $994 $850 – 950
Sustaining capex (4)$41.1 $17.2 $97.4 $54.4 $105 – 125
Kisladag     
Ounces produced (3) 51,010  28,196  140,214  172,009 240,000 – 260,000
Ounces sold 49,529  28,202  138,737  171,741 n/a
Cash operating costs ($/oz sold) (4)$421 $547 $435 $662 $450 – 500
All-in sustaining costs ($/oz sold) (4)$616 $770 $593 $812 n/a
Sustaining capex (4)$6.7 $4.2 $14.7 $17.8 $25 – 30
Lamaque     
Ounces produced (1) 29,085  16,046  113,940  35,350 125,000 – 135,000
Ounces sold (2) 31,293 n/a 86,745 n/an/a
Cash operating costs ($/oz sold) (4)$663 n/a$556 n/a$575 – 625
All-in sustaining costs ($/oz sold) (4)$1,273 n/a$1,078 n/an/a
Sustaining capex (4)$17.0 n/a$38.2 n/a$35 – 40
Efemcukuru     
Ounces produced 26,243  23,544  103,767  95,038 90,000 – 100,000
Ounces sold 25,530  23,528  105,752  97,485 n/a
Cash operating costs ($/oz sold) (4)$608 $535 $599 $511 $650 – 700
All-in sustaining costs ($/oz sold) (4)$1,122 $1,041 $923 $834 n/a
Sustaining capex (4)$10.2 $9.1 $24.5 $24.4 $15 – 20
Olympias     
Ounces produced (1) 12,617  8,101  37,410  46,750 50,000 – 60,000
Ounces sold (2) 12,550  7,126  43,668  35,030 n/a
Cash operating costs ($/oz sold)$1,331 $1,237 $1,286 $764 $800 – 900
All-in sustaining costs ($/oz sold)$1,986 $2,038 $1,837 $1,297 n/a
Sustaining capex$7.2 $3.9 $20.1 $12.2 $30 – 35
  1. Includes pre-commercial production at Lamaque (2018, Q1 2019) and at Olympias (Q1 2018 only).
  2. Excludes sales of inventory produced at Lamaque (2018, Q1 2019) and at Olympias (Q1 2018 only) during the pre-commercial production period. During the year ended December 31, 2019, 27,627 ounces were sold from inventory produced during the pre-commercial production period at Lamaque.   
  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 MD&A section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS measures.   

Gold production of 395,331 ounces in 2019 increased from 349,147 ounces in 2018, primarily due to 113,940  ounces produced at Lamaque in its first year of commercial operations. This was partially offset by decreases in production at Kisladag as a result of the suspension of mining in the first quarter of 2019 and at Olympias as a result of reduced tonnage fed to the processing plant.

For further information on the Company’s operating results for the year-end and fourth quarter of 2019, please see the Company’s Management’s Discussion and Analysis filed on SEDAR at www.sedar.com under the Company’s profile.

Conference Call

A conference call to discuss the details of the Company’s Fourth Quarter and Year-End 2019 Results will be held by senior management on Friday, February 21, 2020 at 8:30 AM PT (11:30 AM ET).  The call will be webcast and can be accessed at Eldorado Gold’s website: www.eldoradogold.com and via this link: http://services.choruscall.ca/links/eldoradogold20200221.html

Conference Call Details Replay (available) 
Date:February 21, 2020 Toronto:+1 604.638.9010
Time:8:30 am PT (11:30 am ET) Toll Free:+1.800.319.6413
Dial in:+1 604.638.5340 Pass code:3980
Toll free:+1.800.319.4610   

About Eldorado Gold

Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkey, Canada, Greece, Romania and Brazil.  The Company has a highly skilled and dedicated workforce, safe and responsible operations, a portfolio of high-quality assets, and long-term partnerships with local communities.  Eldorado's common shares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).

Contacts

Investor RelationsPeter Lekich, Manager Investor Relations604.687.4018 or 1.888.353.8166   peter.lekich@eldoradogold.com

MediaLouise Burgess, Director Communications & Government Relations604.687.4018 or 1.888.353.8166   louise.burgess@eldoradogold.com

Non-IFRS Measures

Certain non-IFRS measures are included in this press release, including cash operating costs and cash operating costs per ounce sold, total cash costs and total cash costs per ounce sold, all-in sustaining costs ("AISC") and AISC per ounce sold, sustaining and growth capital, average realized gold price per ounce sold, adjusted net earnings/(loss) attributable to shareholders, adjusted net earnings/(loss) per share attributable to shareholders, earnings before interest, taxes and depreciation and amortization ("EBITDA") and adjusted earnings before interest, taxes and depreciation and amortization ("Adjusted EBITDA") working capital and cash flow from operations before changes in working capital. Please see the December 31, 2019 MD&A for explanations and discussion of these non-IFRS measures. The Company believes that these measures, in addition to conventional measures prepared in accordance with International Financial Reporting Standards (“IFRS”), provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.

Cautionary Note about Forward-looking Statements and Information

Certain of the statements made and information provided in this press release are forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Often, these forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", “continue”, “projected”, "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking statements or information contained in this release include, but are not limited to, statements or information with respect to: our guidance and outlook, including expected production, cost guidance and recoveries of gold, including increased heap leach recoveries through increased leach time in conjunction with a high pressure grinding roll at Kisladag, favourable economics for our heap leaching plan and the ability to extend mine life at our projects, including at Kisladag, improved production at Olympias, completion and results of the PEA at Lamaque and expanded production, completion of construction at Skouries, expectations regarding repayment of outstanding debt, planned capital and exploration expenditures; our expectation as to our future financial and operating performance, expected metallurgical recoveries, improved concentrate grade and quality, gold price outlook and the global concentrate market; and our strategy, plans and goals, including our proposed exploration, development, construction, permitting and operating plans and priorities and related timelines and schedules and results of litigation and arbitration proceedings.

Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, market uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.

We have made certain assumptions about the forward-looking statements and information, including assumptions about the geopolitical, economic, permitting and legal climate that we operate in; the future price of gold and other commodities; the global concentrate market; exchange rates; anticipated costs and expenses; production, mineral reserves and resources and metallurgical recoveries, the impact of acquisitions, dispositions, suspensions or delays on our business and the ability to achieve our goals. In particular, except where otherwise stated, we have assumed a continuation of existing business operations on substantially the same basis as exists at the time of this release.

Even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Many assumptions may be difficult to predict and are beyond our control.

Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: results of further testwork, recoveries of gold and other metals; geopolitical and economic climate (global and local), risks related to mineral tenure and permits; gold and other commodity price volatility; continued softening of the global concentrate market; risks regarding potential and pending litigation and arbitration proceedings relating to the Company’s, business, properties and operations; expected impact on reserves and the carrying value; the updating of the reserve and resource models and life of mine plans; mining operational and development risk; financing risks, foreign country operational risks; risks of sovereign investment; regulatory risks and liabilities including, environmental regulatory restrictions and liability; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical testing and recoveries; additional funding requirements; currency fluctuations; community and non-governmental organization actions; speculative nature of gold exploration; dilution; share price volatility and the price of the common shares of the Company; competition; loss of key employees; and defective title to mineral claims or properties, as well as those risk factors discussed in the sections titled “Forward-Looking Statements” and "Risk factors in our business" in the Company's  most recent Annual Information Form & Form 40-F. The reader is directed to carefully review the detailed risk discussion in our most recent Annual Information Form and other regulatory filings filed on SEDAR under our Company name, which discussion is incorporated by reference in this release, for a fuller understanding of the risks and uncertainties that affect the Company’s business and operations.

Forward-looking statements and information is designed to help you understand management’s current views of our near and longer term prospects, and it may not be appropriate for other purposes.

There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change.

Financial Information and condensed statements contained herein or attached hereto may not be suitable for readers that are unfamiliar with the Company and is not a substitute for reading the Company’s financial statements and related MD&A available on our website and on SEDAR under our Company name. The reader is directed to carefully review such document for a full understanding of the financial information summarized herein.

Except as otherwise noted, scientific and technical information contained in this press release was reviewed and approved by Paul Skayman, FAusIMM, Special Advisor to the Chief Operating Officer, a "qualified person" under NI 43-101.

 

Eldorado Gold CorporationConsolidated Statements of Financial Position   As at December 31, 2019 and December 31, 2018(In thousands of U.S. dollars)     
      
 Note December 31, 2019 December 31, 2018
ASSETS     
Current assets     
Cash and cash equivalents6 $177,742  $286,312 
Term deposits  3,275  6,646 
Restricted cash7 20  296 
Marketable securities  3,828  2,572 
Accounts receivable and other8 75,290  80,987 
Inventories9 163,234  137,885 
Assets held for sale32 12,471   
   435,860  514,698 
Restricted cash7 3,080  13,449 
Other assets10 22,943  10,592 
Employee benefit plan assets18 6,244  9,120 
Property, plant and equipment12 4,088,202  3,988,476 
Goodwill13 92,591  92,591 
   $4,648,920  $4,628,926 
LIABILITIES & EQUITY     
Current liabilities     
Accounts payable and accrued liabilities15 $139,104  $137,900 
Current portion of lease liabilities  9,913  2,978 
Current portion of debt16 66,667   
Current portion of asset retirement obligations17 1,782  824 
Liabilities associated with assets held for sale32 4,257   
   221,723  141,702 
Debt16 413,065  595,977 
Lease liabilities  15,143  6,538 
Employee benefit plan obligations18 18,224  14,375 
Asset retirement obligations17 94,235  93,319 
Deferred income tax liabilities20 412,717  429,929 
   1,175,107  1,281,840 
Equity     
Share capital21 3,054,563  3,007,924 
Treasury stock  (8,662) (10,104)
Contributed surplus  2,627,441  2,620,799 
Accumulated other comprehensive loss  (28,966) (24,494)
Deficit  (2,229,867) (2,310,453)
Total equity attributable to shareholders of the Company  3,414,509  3,283,672 
Attributable to non-controlling interests  59,304  63,414 
   3,473,813  3,347,086 
   $4,648,920  $4,628,926 
          

Debt, Guarantees, Commitments and Contractual Obligations (Notes 16, 25)Contingencies (Note 26)

Approved on behalf of the Board of Directors

(signed) John Webster        Director                    (signed) George Burns         Director

Date of approval:    February 20, 2020

Eldorado Gold CorporationConsolidated Statements of Operations   For the years ended December 31, 2019 and December 31, 2018(In thousands of U.S. dollars except share and per share amounts)     
      
 Note Year ended December 31, 2019 Year ended December 31, 2018
Revenue     
  Metal sales29 $617,823  $459,016 
      
Cost of sales     
  Production costs30 334,839  269,445 
  Depreciation and amortization  153,118  105,732 
   487,957  375,177 
      
Earnings from mine operations  129,866  83,839 
      
Exploration and evaluation expenses  14,643  33,842 
Mine standby costs  17,334  16,510 
General and administrative expenses  29,180  46,806 
Employee benefit plan expense18 2,717  3,555 
Share-based payments expense22 10,396  6,989 
Impairment (reversal of impairment)12 (96,914) 447,808 
Write-down of assets  6,298  1,528 
Foreign exchange (gain) loss  (625) 3,574 
Earnings (loss) from operations  146,837  (476,773)
      
Other income19 11,885  16,281 
Finance costs19 (45,266) (5,637)
      
Earnings (loss) from operations before income tax  113,456  (466,129)
Income tax expense (recovery)20 39,771  (86,498)
Net earnings (loss) for the year  $73,685  $(379,631)
      
Attributable to:     
Shareholders of the Company  80,586  (361,884)
Non-controlling interests  (6,901) (17,747)
Net earnings (loss) for the year  $73,685  $(379,631)
      
Weighted average number of shares outstanding (thousands)31    
Basic  158,856  158,509 
Diluted  161,539  158,509 
      
Net earnings (loss) per share attributable to shareholders of the Company:     
Basic earnings (loss) per share  $0.51  $(2.28)
Diluted earnings (loss) per share  $0.50  $(2.28)

Eldorado Gold CorporationConsolidated Statements of Comprehensive Income (Loss)      For the years ended December 31, 2019 and December 31, 2018(In thousands of U.S. dollars)     
      
 Note Year ended December 31, 2019 Year ended December 31, 2018
      
Net earnings (loss) for the year  $73,685  $(379,631)
Other comprehensive income (loss):     
Items that will not be reclassified to earnings (loss):     
Change in fair value of investments in equity securities  1,256  (2,306)
Actuarial losses on employee benefit plans18 (6,361) (1,197)
Income tax recovery on actuarial losses on employee benefit plans  633  359 
   (4,472) (3,144)
Total comprehensive income (loss) for the year  $69,213  $(382,775)
      
Attributable to:     
Shareholders of the Company  76,114  (365,028)
Non-controlling interests  (6,901) (17,747)
   $69,213  $(382,775)

Eldorado Gold CorporationConsolidated Statements of Cash Flows   For the years ended December 31, 2019 and December 31, 2018(In thousands of U.S. dollars)     
      
Cash flows generated from (used in):Note Year ended December 31, 2019 Year ended December 31, 2018
      
Operating activities     
Net earnings (loss) for the year  $73,685  $(379,631)
Items not affecting cash:     
Depreciation and amortization  155,331  105,732 
Finance costs  45,266  5,637 
Interest income  (2,760) (7,727)
Unrealized foreign exchange (gain) loss  (790) 704 
Income from royalty sale  (8,075)  
Income tax expense (recovery)  39,771  (86,498)
Impairment (reversal of impairment)12 (96,914) 447,808 
Write-down of assets  6,298  1,528 
Share based payments expense  10,396  6,989 
Employment benefit plan expense  2,717  3,555 
   224,925  98,097 
Property reclamation payments  (2,807) (5,536)
Employee benefit plan payments  (2,587) (2,299)
Income taxes paid  (36,242) (36,879)
Interest paid  (35,479)  
Interest received  2,760  7,727 
Changes in non-cash working capital23 15,256  6,428 
Net cash generated from operating activities  165,826  67,538 
      
Investing activities     
Purchase of property, plant and equipment  (214,505) (231,674)
Capitalized interest paid  (3,848) (36,750)
Proceeds from the sale of property, plant and equipment  6,605  7,882 
Proceeds on pre-commercial production sales, net12 12,159  6,472 
Purchase of investment in associate  (3,107)  
Proceeds from sale of mining interest  1,397   
Value added taxes related to mineral property expenditures, net  (1,590) (1,261)
Decrease (increase) in term deposits  3,371  (1,138)
Decrease (increase) in restricted cash  10,644  (928)
Net cash used in investing activities  (188,874) (257,397)
      
Financing activities     
Issuance of common shares for cash  40,066   
Contributions from non-controlling interests  2,791   
Proceeds from borrowings  494,000   
Repayments from borrowings  (600,000)  
Loan financing costs  (15,583)  
Principal portion of lease liabilities  (6,729) (1,222)
Purchase of treasury stock    (2,108)
Net cash used in financing activities  (85,455) (3,330)
      
Net decrease in cash and cash equivalents  (108,503) (193,189)
Cash and cash equivalents - beginning of year  286,312  479,501 
Cash in disposal group held for sale  (67)  
Cash and cash equivalents - end of year  $177,742  $286,312 

Eldorado Gold CorporationConsolidated Statements of Changes in Equity  For the years ended December 31, 2019 and December 31, 2018(In thousands of U.S. dollars)     
      
 Note Year ended December 31, 2019 Year ended December 31, 2018
Share capital     
Balance beginning of year  $3,007,924  $3,007,924 
Shares issued upon exercise of share options, for cash  265   
Transfer of contributed surplus on exercise of options  103   
Shares issued to the public, net of share issuance costs  46,271   
Balance end of year21 $3,054,563  $3,007,924 
      
Treasury stock     
Balance beginning of year  $(10,104) $(11,056)
Purchase of treasury stock    (2,108)
Shares redeemed upon exercise of restricted share units  1,442  3,060 
Balance end of year  $(8,662) $(10,104)
      
Contributed surplus     
Balance beginning of year  $2,620,799  $2,616,593 
Share based payment arrangements  8,187  7,266 
Shares redeemed upon exercise of restricted share units  (1,442) (3,060)
Transfer to share capital on exercise of options  (103)  
Balance end of year  $2,627,441  $2,620,799 
      
Accumulated other comprehensive loss     
Balance beginning of year  $(24,494) $(21,350)
Other comprehensive loss for the year  (4,472) (3,144)
Balance end of year  $(28,966) $(24,494)
      
Deficit     
Balance beginning of year  $(2,310,453) $(1,948,569)
Earnings (loss) attributable to shareholders of the Company  80,586  (361,884)
Balance end of year  $(2,229,867) $(2,310,453)
Total equity attributable to shareholders of the Company  $3,414,509  $3,283,672 
      
Non-controlling interests     
Balance beginning of year  $63,414  $79,940 
Loss attributable to non-controlling interests  (6,901) (17,747)
Contributions from non-controlling interests  2,791  1,221 
Balance end of year  $59,304  $63,414 
Total equity  $3,473,813  $3,347,086 

  Please see the Consolidated Financial Statements dated December 31, 2019 for notes to the accounts.

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