Eldorado Gold Corporation (“Eldorado” or “the Company”) today
reports the Company’s financial and operational results for the
third quarter of 2020.
- Steady quarterly production
and 2020 annual guidance maintained: Gold production
totalled 136,922 ounces in Q3 2020, an increase of 35% from
production of 101,596 ounces in Q3 2019. The Company is maintaining
its 2020 annual guidance of 520,000-550,000 ounces of gold at an
all-in sustaining cost of $850-950 per ounce sold.
- Increased cash from
operations and free cash flow: Net cash generated from
operating activities of $165.4 million in Q3 2020 increased
significantly from $51.2 million in Q3 2019 primarily as a result
of higher sales volumes, a higher average realized gold price, and
the timing of certain payments. Free cash flow of $117.2 million in
Q3 2020 increased significantly from $16.7 million in Q3 2019 as a
result of increased cash from operations, and was partly offset by
higher capital expenditure, which is expected to continue into Q4
2020. Free cash flow year-to-date totalled $187.7 million.
- All-in sustaining costs
remain steady: Q3 2020 all-in sustaining costs of $918 per
ounce of gold sold were lower than in Q3 2019 ($1,031 per ounce
sold) and were negatively impacted by an incremental 25% increase
to 2020 gold royalty rates in Turkey, announced in September and
retroactive to January 1, 2020.
- Continued strong financial
liquidity: The Company currently has $504 million of cash,
cash equivalents and term deposits and approximately $32 million
available under its revolving credit facility. Additionally, we
completed a redemption of $58.6 million of principal of our senior
secured notes during the quarter and have issued a debt redemption
notice to repay an additional $7.5 million of principal in December
2020 under the equity clawback provision of our senior secured
notes.
- Net earnings and adjusted
net earnings attributable to shareholders: The Company
reported net earnings attributable to shareholders of the Company
in Q3 2020 of $41.0 million or $0.24 per share (Q3 2019: $4.2
million, or $0.03 per share). Adjusted net earnings attributable to
shareholders of the Company in Q3 2020 were $56.7 million, or $0.33
per share (Q3 2019: $7.6 million, or $0.05 per share).
- Increased EBITDA:
The Company reported Q3 2020 EBITDA of $162.5 million ($73.2
million in Q3 2019) and Q3 2020 adjusted EBITDA of $163.9 million
($75.9 million in Q3 2019).
- Progress in
Greece:
- Drilling permits received at Stratoni: The
Greek Ministry of Environment granted the Company permits to
conduct surface exploration drilling in the Stratoni area.
- Olympias permitted production limit increase:
The Company renewed its operating permit for Olympias and, per the
terms of the permit, allows for an annual production limit of
470,000 tonnes per year. The Company will continue to evaluate a
possible further expansion at Olympias that would require a
modification to the Olympias EIA.
- Archaeological relocation work underway:
Relocation of an ancient mining furnace from the Skouries open pit
area commenced in Q3 2020.
- Sale of non-core
assets: The Company completed the sale of the Vila Nova
mine in Brazil for total consideration of $10.0 million. The
Company is evaluating strategic options for other non-core assets,
including its Tocantinzinho Project in Brazil and Certej Project in
Romania.
- Measures remain in place to
manage the impact of the novel coronavirus ("COVID-19")
pandemic: The Company's mines remain operational and
isolated cases of COVID-19 have been successfully managed.
Preventing the spread of COVID-19, ensuring safe working
environments across Eldorado's global sites, and preparedness
should an outbreak occur, remain priorities.
“This quarter continues the positive results we
have delivered over the last 18 months,” said George Burns,
President and CEO. “We are driving significant value from our
operations demonstrated by steady production and lower costs that
are flowing through to our bottom line. This is the second
consecutive quarter we have delivered across all key metrics, again
generating significant free cash flow and adjusted net earnings. We
remain committed to reducing our debt and decreased our senior
secured notes by nearly $60 million in the quarter. I'm pleased to
report that our balance sheet is in the strongest position it has
been in several quarters and this positions us well as we look to
develop the growth opportunities in our portfolio."
Consolidated Financial and Operational
Highlights
|
3 months ended September 30, |
|
|
9 months ended September 30, |
|
|
|
|
2020 |
|
|
2019 |
|
|
|
2020 |
|
|
2019 |
|
|
Revenue (1) |
$ |
287.6 |
|
$ |
172.3 |
|
|
$ |
748.2 |
|
$ |
426.0 |
|
|
Gold revenue (1) |
$ |
264.3 |
|
$ |
150.2 |
|
|
$ |
684.7 |
|
$ |
355.6 |
|
|
Gold produced (oz) (2) |
|
136,922 |
|
|
101,596 |
|
|
|
390,654 |
|
|
276,376 |
|
|
Gold sold (oz) (1) |
|
137,704 |
|
|
99,241 |
|
|
|
388,883 |
|
|
256,000 |
|
|
Average realized gold price ($/oz sold) (6) |
$ |
1,919 |
|
$ |
1,513 |
|
|
$ |
1,761 |
|
$ |
1,389 |
|
|
Cash operating costs ($/oz sold) (3,6) |
|
537 |
|
|
560 |
|
|
|
568 |
|
|
602 |
|
|
Total cash costs ($/oz sold) (3,6) |
|
664 |
|
|
603 |
|
|
|
651 |
|
|
641 |
|
|
All-in sustaining costs ($/oz sold) (3,6) |
|
918 |
|
|
1,031 |
|
|
|
908 |
|
|
998 |
|
|
Net earnings (loss) for the period (4) |
|
41.0 |
|
|
4.2 |
|
|
|
81.7 |
|
|
(10.6 |
) |
|
Net earnings (loss) per share – basic ($/share) (4) |
|
0.24 |
|
|
0.03 |
|
|
|
0.48 |
|
|
(0.07 |
) |
|
Adjusted net earnings (loss) (4,5,6,7) |
|
56.7 |
|
|
7.6 |
|
|
|
113.0 |
|
|
(16.9 |
) |
|
Adjusted net earnings (loss) per share ($/share) (4,5,6,7) |
|
0.33 |
|
|
0.05 |
|
|
|
0.67 |
|
|
(0.11 |
) |
|
Cash flow from operating activities before changes in working
capital (6,7) |
|
125.1 |
|
|
63.0 |
|
|
|
293.6 |
|
|
109.6 |
|
|
Free cash flow (6) |
|
117.2 |
|
|
16.7 |
|
|
|
187.7 |
|
|
(42.5 |
) |
|
Cash, cash equivalents and term deposits |
$ |
504.4 |
|
$ |
134.9 |
|
|
$ |
504.4 |
|
$ |
134.9 |
|
|
(1) |
Excludes sales of inventory mined at Lamaque during the
pre-commercial production period (Q1 2019). |
(2) |
Includes pre-commercial production at Lamaque (Q1 2019). |
(3) |
By-product revenues are off-set against cash operating costs. |
(4) |
Attributable to shareholders of the Company. |
(5) |
See reconciliation of net earnings (loss) to adjusted net earnings
(loss) in the section 'Non-IFRS Measures' in the September 30, 2020
MD&A. |
(6) |
These measures are non-IFRS measures. See the September 30, 2020
MD&A for explanations and discussion of these non-IFRS
measures. |
(7) |
2019 amounts have been adjusted to conform with 2020 presentation.
See the section 'Non-IFRS Measures' in the September 30, 2020
MD&A for detail. |
Gold production of 136,922 ounces increased 35%
from last year’s third quarter production of 101,596 ounces. Gold
sales totalled 137,704 ounces in Q3 2020, an increase of 39% from
99,241 ounces sold in Q3 2019. The higher sales volume compared
with the prior year reflected an increase of 23,690 ounces sold at
Kisladag due to increased tonnes of stacked ore, an increase of
7,465 ounces sold at Lamaque due to increased tonnes processed and
an increase of 8,420 ounces sold at Olympias as a result of
increased production. Gold sales at Efemcukuru in Q3 2020 decreased
slightly by 1,112 ounces from the prior year due to a decrease in
grade, combined with lower tonnes processed in the quarter.
Total revenue was $287.60 million in Q3 2020, an
increase of 67% from $172.3 million in Q3 2019. The increase was
due to increased sales volume combined with a higher average
realized gold price.
Cash operating costs per ounce sold in Q3 2020
averaged $537, a decrease from $560 in Q3 2019. The improvement was
primarily due to higher production at Kisladag with an increase in
stacked ore on the heap leach pad, higher production and grade at
Olympias and increased mining rates at Lamaque following the
receipt of authorization in March 2020 to increase mine production.
Cash operating costs per ounce sold also benefited from a weakening
of the Turkish Lira throughout 2020.
Total cash costs per ounce sold were negatively
impacted throughout 2020 by higher gold royalty rates in both
Greece and Turkey which increased in line with higher gold prices.
Total cash costs were negatively impacted in Q3 2020 by an
incremental 25% increase to 2020 gold royalty rates in Turkey,
announced in September and retroactive to January 1, 2020. $4.1
million of additional royalty expense was recorded in Q3 2020 to
reflect the additional royalty cost associated with gold sales
during the first six months of 2020.
We reported net earnings attributable to
shareholders of $41.0 million ($0.24 per share) in Q3 2020,
compared to net earnings of $4.2 million ($0.03 per share) in Q3
2019. The improvement reflects higher production and sales volumes,
combined with a higher average realized gold price.
Adjusted net earnings were $56.7 million ($0.33
per share) in Q3 2020 compared to adjusted net earnings of $7.6
million ($0.05 per share) in Q3 2019. Adjusted net earnings in Q3
2020 removes, among other things, a $8.3 million loss on foreign
exchange due to translation of deferred tax balances,
$7.9 million of finance costs related to the
$58.6 million redemption of the senior secured notes in Q3
2020 and a $2.5 million gain on disposal of the Vila Nova mine
in Q3 2020.
Gold Operations
|
|
3 months ended September 30, |
|
|
9 months ended September 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Total |
|
|
|
|
Ounces produced (1) |
|
136,922 |
|
|
101,596 |
|
|
390,654 |
|
|
276,376 |
|
Ounces sold (2) |
|
137,704 |
|
|
99,241 |
|
|
388,883 |
|
|
256,000 |
|
Cash operating costs ($/oz sold) (4) |
$ |
537 |
|
$ |
560 |
|
$ |
568 |
|
$ |
602 |
|
All-in sustaining costs ($/oz sold) (4) |
$ |
918 |
|
$ |
1,031 |
|
$ |
908 |
|
$ |
998 |
|
Sustaining capex (4) |
$ |
22.1 |
|
$ |
30.0 |
|
$ |
63.4 |
|
$ |
56.3 |
|
Kisladag |
|
|
|
|
Ounces produced (3) |
|
59,593 |
|
|
35,885 |
|
|
169,659 |
|
|
89,204 |
|
Ounces sold |
|
59,571 |
|
|
35,881 |
|
|
171,088 |
|
|
89,208 |
|
Cash operating costs ($/oz sold) (4) |
$ |
440 |
|
$ |
399 |
|
$ |
452 |
|
$ |
442 |
|
All-in sustaining costs ($/oz sold) (4) |
$ |
708 |
|
$ |
566 |
|
$ |
641 |
|
$ |
580 |
|
Sustaining capex (4) |
$ |
5.3 |
|
$ |
3.9 |
|
$ |
13.7 |
|
$ |
8.0 |
|
Lamaque |
|
|
|
|
Ounces produced (1) |
|
39,525 |
|
|
32,037 |
|
|
99,973 |
|
|
84,855 |
|
Ounces sold (2) |
|
38,587 |
|
|
31,122 |
|
|
97,279 |
|
|
55,452 |
|
Cash operating costs ($/oz sold) (4) |
$ |
494 |
|
$ |
480 |
|
$ |
530 |
|
$ |
496 |
|
All-in sustaining costs ($/oz sold) (4) |
$ |
747 |
|
$ |
1,089 |
|
$ |
844 |
|
$ |
968 |
|
Sustaining capex (4) |
$ |
6.8 |
|
$ |
15.9 |
|
$ |
23.1 |
|
$ |
21.2 |
|
Efemcukuru |
|
|
|
|
Ounces produced |
|
23,892 |
|
|
25,733 |
|
|
74,007 |
|
|
77,524 |
|
Ounces sold |
|
24,471 |
|
|
25,583 |
|
|
73,384 |
|
|
80,222 |
|
Cash operating costs ($/oz sold) (4) |
$ |
561 |
|
$ |
591 |
|
$ |
577 |
|
$ |
596 |
|
All-in sustaining costs ($/oz sold) (4) |
$ |
1,012 |
|
$ |
900 |
|
$ |
894 |
|
$ |
859 |
|
Sustaining capex (4) |
$ |
5.1 |
|
$ |
5.2 |
|
$ |
11.8 |
|
$ |
14.2 |
|
Olympias |
|
|
|
|
Ounces produced |
|
13,912 |
|
|
7,941 |
|
|
47,015 |
|
|
24,793 |
|
Ounces sold |
|
15,075 |
|
|
6,655 |
|
|
47,132 |
|
|
31,118 |
|
Cash operating costs ($/oz sold) (4) |
$ |
992 |
|
$ |
1,678 |
|
$ |
1,056 |
|
$ |
1,268 |
|
All-in sustaining costs ($/oz sold) (4) |
$ |
1,450 |
|
$ |
2,598 |
|
$ |
1,484 |
|
$ |
1,776 |
|
Sustaining capex (4) |
$ |
4.9 |
|
$ |
4.9 |
|
$ |
14.8 |
|
$ |
12.9 |
|
(1) |
Includes pre-commercial production at Lamaque (Q1 2019). |
(2) |
Excludes sales of inventory produced at Lamaque during the
pre-commercial production period (Q1 2019). |
(3) |
Kisladag resumed mining, crushing and placing ore on the heap leach
pad on April 1, 2019. This activity had been suspended since April
2018. |
(4) |
These measures are non-IFRS measures. See the September 30,
2020 MD&A for explanations and discussion of these non-IFRS
measures. |
Corporate
On October 29, 2020, the Company issued a
redemption notice for the senior secured notes and intends to
redeem $7.5 million of the principal amount of the senior
secured notes in December 2020. The redemption amount is based on
flow-through shares issued in the quarter and the redemption price
is 109.5% of the aggregate principal amount repaid, plus accrued
and unpaid interest.
We are pleased to announce that Lisa Ower has
been promoted to Executive Vice President, People and External
Affairs. Lisa has been with the Company for two years and has been
integral in strengthening our corporate culture and people
practices. We are also pleased to announce that Brian Berney has
been appointed to the role of Executive General Manager, Greece and
will oversee operations at our Greek mines, and that Justin Kapla
has been appointed as General Manager, Kisladag. Both Brian and
Justin bring significant experience in mine operations and will
support our focus on operational performance.
Conference Call
A conference call to discuss the details of the
Company’s Q3 2020 results will be held by senior management on
Friday, October 30, 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/eldoradogold20201030.html
Conference Call Details |
|
Replay (available until Dec. 4, 2020) |
Date: |
October 30,
2020 |
|
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 |
|
Pass
code: |
5357 |
Toll
free: |
1 800 319
4610 |
|
|
|
About Eldorado Gold
Eldorado is a gold and base metals producer with
mining, development and exploration operations in Turkey, Canada,
Greece, Romania and Brazil. The Company has a highly skilled and
dedicated workforce, safe and responsible operations, a portfolio
of high-quality assets, and long-term partnerships with local
communities. Eldorado's common shares trade on the Toronto Stock
Exchange (TSX: ELD) and the New York Stock Exchange (NYSE:
EGO).
Contact
Investor Relations
Peter Lekich, Manager Investor Relations
604.687.4018 or 1.888.353.8166 peter.lekich@eldoradogold.com
Media
Louise Burgess, Director Communications &
Government Relations 604.601.6679 or
1.888.363.8166 louise.burgess@eldoradogold.com
Non-IFRS Measures
Certain non-IFRS measures are included in this
press release, including average realized gold price per ounce
sold, cash operating costs and cash operating costs per ounce sold,
total cash costs and total cash costs per ounce sold, all-in
sustaining costs ("AISC") and AISC per ounce sold, adjusted net
earnings/(loss), adjusted net earnings/(loss) per share, working
capital, cash flow from operations before changes in non-cash
working capital, earnings before interest, taxes and depreciation
and amortization ("EBITDA") and adjusted earnings before interest,
taxes and depreciation and amortization ("Adjusted EBITDA"), free
cash flow and sustaining capital. Please see the September 30,
2020 MD&A for explanations and discussion of these non-IFRS
measures. The Company believes that these measures, in addition to
conventional measures prepared in accordance with International
Financial Reporting Standards (“IFRS”), provide investors an
improved ability to evaluate the underlying performance of the
Company. The non-IFRS measures are intended to provide additional
information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. These measures do not have any standardized meaning
prescribed under IFRS, and therefore may not be comparable to other
issuers.
Cautionary Note about Forward-looking
Statements and Information
Certain of the statements made and information
provided in this press release are forward-looking statements or
information within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and applicable Canadian
securities laws. Often, these forward-looking statements and
forward-looking information can be identified by the use of words
such as "plans", "expects", "is expected", "budget", “continue”,
“projected”, "scheduled", "estimates", "forecasts", "intends",
"anticipates", or "believes" or the negatives thereof or variations
of such words and phrases or statements that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved.
Forward-looking statements or information
contained in this release include, but are not limited to,
statements or information with respect to: the duration, extent and
other implications of COVID-19 and any restrictions and suspensions
with respect to our operations; our expectations regarding the
timing and quantity annual gold production; our strategy with
respect to non-core assets; expected benefits resulting from design
improvements at Kisladag; timing of construction and expected
benefits resulting from design improvements at Skouries; timing of
drilling activities at the Stratoni mine; our guidance and outlook,
including expected production, cost guidance and recoveries of
gold, including higher gold bearing solution volumes and increased
heap leach recoveries through increased leach time in conjunction
with a high pressure grinding roll and related upgrades at
Kisladag; timing and cost of the construction of an underground
decline at the Triangle mine and the associated benefits; expansion
at Lamaque, Efemcukuru, Olympias and Stratoni; the success of a
column flotation system in improving concentrate grade and quality
and lowering transportation and concentrate treatment charges at
Efemcukuru; favourable economics for our heap leaching plan and the
ability to extend mine life at our projects; planned capital and
exploration expenditures, including at Olympias, Lamaque and
Stratoni and the timing thereof; conversion of mineral resources to
mineral reserves; the qualification of common shares as
flow-through shares for Canadian tax purposes; the evaluation of
alternative mechanized mining technologies; our expectation as to
our future financial and operating performance, including
expectations around generating free cash flow; working capital
requirements; debt repayment obligations; use of proceeds from
financing activities; expected metallurgical recoveries and
improved concentrate grade and quality; gold price outlook and the
global concentrate market; redemption of senior secured notes; risk
factors affecting our business; our strategy, plans and goals,
including our proposed exploration, development, construction,
permitting and operating plans and priorities and related
timelines; and schedules and results of litigation and arbitration
proceedings.
Forward-looking statements and forward-looking
information by their nature are based on assumptions and involve
known and unknown risks, market uncertainties and other factors,
which may cause the actual results, performance or achievements of
the Company to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements or information.
We have made certain assumptions about the
forward-looking statements and information, including assumptions
about: how the world-wide economic and social impact of COVID-19 is
managed and the duration and extent of the COVID-19 pandemic;
timing and cost of construction, including in respect of an
underground decline at the Triangle mine and the associated
benefits; benefits of the improvements at Kisladag; 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,
expenses and working capital requirements; 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:
global outbreaks of infectious diseases, including COVID-19; timing
and cost of construction, including in respect of an underground
decline at the Triangle mine and the associated benefits; 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; information technology systems risks; continued
softening of the global concentrate market; risks regarding
potential and pending litigation and arbitration proceedings
relating to our 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 our common shares; competition; loss of key employees;
and defective title to mineral claims or properties, as well as
those risk factors discussed in the sections titled
“Forward-Looking Statements” and "Risk factors in our business" in
the Company's most recent Annual Information Form & Form 40-F.
The reader is directed to carefully review the detailed risk
discussion in our most recent Annual Information Form filed on
SEDAR and EDGAR under our Company name, which discussion is
incorporated by reference in this release, for a fuller
understanding of the risks and uncertainties that affect the
Company’s business and operations.
Forward-looking statements and information is
designed to help you understand management’s current views of our
near and longer term prospects, and it may not be appropriate for
other purposes.
There can be no assurance that forward-looking
statements or information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, you should not place
undue reliance on the forward-looking statements or information
contained herein. Except as required by law, we do not expect to
update forward-looking statements and information continually as
conditions change.
Financial Information and condensed statements
contained herein or attached hereto may not be suitable for readers
that are unfamiliar with the Company and is not a substitute for
reading the Company’s financial statements and related MD&A
available on our website and on SEDAR and EDGAR under our Company
name. The reader is directed to carefully review such document for
a full understanding of the financial information summarized
herein.
Except as otherwise noted, scientific and
technical information contained in this press release was reviewed
and approved by Paul Skayman, FAusIMM, Consultant to the Company
and a "qualified person" under NI 43-101.
Eldorado Gold CorporationCondensed
Consolidated Interim Statements of Financial Position
(Unaudited – in thousands of U.S. dollars)
As at |
Note |
|
|
September 30, 2020 |
|
|
|
December 31, 2019 |
|
ASSETS |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
450,999 |
|
|
$ |
177,742 |
|
Term deposits |
|
|
53,364 |
|
|
3,275 |
|
Marketable securities |
|
|
195 |
|
|
3,828 |
|
Accounts receivable and other |
4 |
|
76,381 |
|
|
75,310 |
|
Inventories |
5 |
|
169,206 |
|
|
163,234 |
|
Current portion of employee benefit plan assets |
|
|
6,168 |
|
|
— |
|
Assets held for sale |
12 |
|
— |
|
|
12,471 |
|
|
|
|
756,313 |
|
|
435,860 |
|
Restricted cash |
|
|
2,003 |
|
|
3,080 |
|
Other assets |
|
|
38,547 |
|
|
22,943 |
|
Employee benefit plan assets |
|
|
— |
|
|
6,244 |
|
Property, plant and equipment |
|
|
4,027,210 |
|
|
4,088,202 |
|
Goodwill |
|
|
92,591 |
|
|
92,591 |
|
|
|
|
$ |
4,916,664 |
|
|
$ |
4,648,920 |
|
LIABILITIES & EQUITY |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable and accrued liabilities |
|
|
$ |
195,088 |
|
|
$ |
139,104 |
|
Current portion of capital lease liabilities |
|
|
10,530 |
|
|
9,913 |
|
Current portion of debt |
6 |
|
216,667 |
|
|
66,667 |
|
Current portion of asset retirement obligations |
|
|
1,783 |
|
|
1,782 |
|
Liabilities associated with assets held for sale |
12 |
|
— |
|
|
4,257 |
|
|
|
|
424,068 |
|
|
221,723 |
|
Debt |
6 |
|
326,224 |
|
|
413,065 |
|
Lease liabilities |
|
|
9,492 |
|
|
15,143 |
|
Employee benefit plan obligations |
|
|
18,377 |
|
|
18,224 |
|
Asset retirement obligations |
|
|
94,029 |
|
|
94,235 |
|
Deferred income tax liabilities |
|
|
410,166 |
|
|
412,717 |
|
|
|
|
1,282,356 |
|
|
1,175,107 |
|
Equity |
|
|
|
|
|
Share capital |
10 |
|
3,142,607 |
|
|
3,054,563 |
|
Treasury stock |
|
|
(11,581 |
) |
|
(8,662 |
) |
Contributed surplus |
|
|
2,636,507 |
|
|
2,627,441 |
|
Accumulated other comprehensive loss |
|
|
(27,824 |
) |
|
(28,966 |
) |
Deficit |
|
|
(2,148,120 |
) |
|
(2,229,867 |
) |
Total equity attributable to shareholders of the
Company |
|
|
3,591,589 |
|
|
3,414,509 |
|
Attributable to non-controlling interests |
11 |
|
42,719 |
|
|
59,304 |
|
|
|
|
3,634,308 |
|
|
3,473,813 |
|
|
|
|
$ |
4,916,664 |
|
|
$ |
4,648,920 |
|
Eldorado Gold CorporationCondensed
Consolidated Interim Statements of OperationsFor the three
and nine months ended September 30, 2020 and 2019(Unaudited – in
thousands of U.S. dollars except share and per share amounts)
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
September 30, |
|
September 30, |
|
Note |
|
|
2020 |
|
|
|
|
2019 |
|
|
|
|
2020 |
|
|
|
|
2019 |
|
|
Revenue |
|
|
|
|
|
|
|
|
|
Metal sales |
7 |
|
$ |
287,595 |
|
|
|
$ |
172,256 |
|
|
|
$ |
748,167 |
|
|
|
$ |
425,958 |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
|
|
|
|
|
|
|
Production costs |
|
|
117,386 |
|
|
|
84,813 |
|
|
|
328,225 |
|
|
|
237,630 |
|
|
Depreciation and amortization |
|
|
65,538 |
|
|
|
40,017 |
|
|
|
176,229 |
|
|
|
101,147 |
|
|
|
|
|
182,924 |
|
|
|
124,830 |
|
|
|
504,454 |
|
|
|
338,777 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from mine operations |
|
|
104,671 |
|
|
|
47,426 |
|
|
|
243,713 |
|
|
|
87,181 |
|
|
|
|
|
|
|
|
|
|
|
|
Exploration and evaluation expenses |
|
|
4,080 |
|
|
|
2,774 |
|
|
|
9,640 |
|
|
|
10,668 |
|
|
Mine standby costs |
8 |
|
3,042 |
|
|
|
2,529 |
|
|
|
12,101 |
|
|
|
13,972 |
|
|
General and administrative expenses |
|
|
6,634 |
|
|
|
7,431 |
|
|
|
21,078 |
|
|
|
22,687 |
|
|
Employee benefit plan expense |
|
|
496 |
|
|
|
458 |
|
|
|
1,953 |
|
|
|
1,567 |
|
|
Share-based payments expense |
13 |
|
2,586 |
|
|
|
2,727 |
|
|
|
7,244 |
|
|
|
8,127 |
|
|
Reversal of impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(11,690 |
) |
|
Write-down (reversal) of assets |
|
|
29 |
|
|
|
(414 |
) |
|
|
(63 |
) |
|
|
13 |
|
|
Foreign exchange loss (gain) |
|
|
(4,345 |
) |
|
|
643 |
|
|
|
(6,345 |
) |
|
|
878 |
|
|
Earnings from operations |
|
|
92,149 |
|
|
|
31,278 |
|
|
|
198,105 |
|
|
|
40,959 |
|
|
|
|
|
|
|
|
|
|
|
|
Other income |
9 |
|
4,740 |
|
|
|
871 |
|
|
|
4,776 |
|
|
|
11,159 |
|
|
Finance costs |
9 |
|
(19,894 |
) |
|
|
(13,170 |
) |
|
|
(42,581 |
) |
|
|
(37,287 |
) |
|
Earnings from continuing operations before income
tax |
|
|
76,995 |
|
|
|
18,979 |
|
|
|
160,300 |
|
|
|
14,831 |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
38,691 |
|
|
|
15,888 |
|
|
|
83,767 |
|
|
|
29,930 |
|
|
Net earnings (loss) for the period |
|
|
$ |
38,304 |
|
|
|
$ |
3,091 |
|
|
|
$ |
76,533 |
|
|
|
$ |
(15,099 |
) |
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
Shareholders of the Company |
|
|
41,009 |
|
|
|
4,233 |
|
|
|
81,747 |
|
|
|
(10,581 |
) |
|
Non-controlling interests |
|
|
(2,705 |
) |
|
|
(1,142 |
) |
|
|
(5,214 |
) |
|
|
(4,518 |
) |
|
Net earnings (loss) for the period |
|
|
$ |
38,304 |
|
|
|
$ |
3,091 |
|
|
|
$ |
76,533 |
|
|
|
$ |
(15,099 |
) |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding (thousands) |
|
|
|
|
|
|
|
|
|
Basic |
|
|
173,822 |
|
|
|
158,462 |
|
|
|
169,676 |
|
|
|
158,409 |
|
|
Diluted |
|
|
178,131 |
|
|
|
161,735 |
|
|
|
173,732 |
|
|
|
158,409 |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) per share attributable to shareholders
of the Company: |
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share |
|
|
$ |
0.24 |
|
|
|
$ |
0.03 |
|
|
|
$ |
0.48 |
|
|
|
$ |
(0.07 |
) |
|
Diluted earnings (loss) per share |
|
|
$ |
0.23 |
|
|
|
$ |
0.03 |
|
|
|
$ |
0.47 |
|
|
|
$ |
(0.07 |
) |
|
Eldorado Gold Corporation
Condensed
Consolidated Interim Statements of Comprehensive Income
(Loss)For the three and nine months ended September 30,
2020 and 2019(Unaudited – in thousands of U.S. dollars)
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
September 30, |
|
September 30, |
|
|
|
|
2020 |
|
|
|
|
2019 |
|
|
|
|
2020 |
|
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) for the period |
|
|
$ |
38,304 |
|
|
|
$ |
3,091 |
|
|
|
$ |
76,533 |
|
|
|
$ |
(15,099 |
) |
|
Other comprehensive (loss) income: |
|
|
|
|
|
|
|
|
|
Items that will not be reclassified to earnings or loss: |
|
|
|
|
|
|
|
|
|
Change in fair value of investments in equity securities, net of
tax |
|
|
669 |
|
|
|
(378 |
) |
|
|
1,567 |
|
|
|
785 |
|
|
Actuarial losses on employee benefit plans, net of tax |
|
|
(227 |
) |
|
|
(178 |
) |
|
|
(425 |
) |
|
|
(587 |
) |
|
Total other comprehensive income (loss) for the
period |
|
|
442 |
|
|
|
(556 |
) |
|
|
1,142 |
|
|
|
198 |
|
|
Total comprehensive income (loss) for the
period |
|
|
$ |
38,746 |
|
|
|
$ |
2,535 |
|
|
|
$ |
77,675 |
|
|
|
$ |
(14,901 |
) |
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
Shareholders of the Company |
|
|
41,451 |
|
|
|
3,677 |
|
|
|
82,889 |
|
|
|
(10,383 |
) |
|
Non-controlling interests |
|
|
(2,705 |
) |
|
|
(1,142 |
) |
|
|
(5,214 |
) |
|
|
(4,518 |
) |
|
|
|
|
$ |
38,746 |
|
|
|
$ |
2,535 |
|
|
|
$ |
77,675 |
|
|
|
$ |
(14,901 |
) |
|
Eldorado Gold CorporationCondensed
Consolidated Interim Statements of Cash FlowsFor the three
and nine months ended September 30, 2020 and 2019(Unaudited – in
thousands of U.S. dollars)
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
September 30, |
|
September 30, |
|
Note |
|
|
2020 |
|
|
|
|
2019 |
|
|
|
|
2020 |
|
|
|
|
2019 |
|
|
Cash flows generated from (used in): |
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
|
|
|
|
Net earnings (loss) for the period |
|
|
$ |
38,304 |
|
|
|
$ |
3,091 |
|
|
|
$ |
76,533 |
|
|
|
$ |
(15,099 |
) |
|
Items not affecting cash: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
66,078 |
|
|
|
41,759 |
|
|
|
177,888 |
|
|
|
102,889 |
|
|
Finance costs |
|
|
19,859 |
|
|
|
13,170 |
|
|
|
42,581 |
|
|
|
37,287 |
|
|
Interest income |
|
|
(429 |
) |
|
|
(251 |
) |
|
|
(1,712 |
) |
|
|
(2,405 |
) |
|
Unrealized foreign exchange gain |
|
|
(4,582 |
) |
|
|
(555 |
) |
|
|
(7,632 |
) |
|
|
(906 |
) |
|
Income tax expense |
|
|
38,691 |
|
|
|
15,888 |
|
|
|
83,767 |
|
|
|
29,930 |
|
|
Loss on disposal of assets |
|
|
281 |
|
|
|
49 |
|
|
|
2,831 |
|
|
|
1,062 |
|
|
Gain on the sale of Vila Nova |
12 |
|
(2,451 |
) |
|
|
— |
|
|
|
(2,451 |
) |
|
|
— |
|
|
Write-down (reversal) of assets |
|
|
29 |
|
|
|
(414 |
) |
|
|
(63 |
) |
|
|
13 |
|
|
Share-based payments expense |
13 |
|
2,586 |
|
|
|
2,727 |
|
|
|
7,244 |
|
|
|
8,127 |
|
|
Employee benefit plan expense |
|
|
496 |
|
|
|
458 |
|
|
|
1,953 |
|
|
|
1,567 |
|
|
Income from royalty sale |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8,075 |
) |
|
Reversal of impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(11,690 |
) |
|
|
|
|
158,862 |
|
|
|
75,922 |
|
|
|
380,939 |
|
|
|
142,700 |
|
|
Property reclamation payments |
|
|
(618 |
) |
|
|
(759 |
) |
|
|
(1,618 |
) |
|
|
(2,555 |
) |
|
Employee benefit plan payments |
|
|
(1,284 |
) |
|
|
(332 |
) |
|
|
(1,955 |
) |
|
|
(1,681 |
) |
|
Income taxes paid |
|
|
(22,899 |
) |
|
|
(8,593 |
) |
|
|
(55,746 |
) |
|
|
(12,603 |
) |
|
Interest paid |
|
|
(9,370 |
) |
|
|
(3,505 |
) |
|
|
(29,728 |
) |
|
|
(18,641 |
) |
|
Interest received |
|
|
429 |
|
|
|
251 |
|
|
|
1,712 |
|
|
|
2,405 |
|
|
Changes in non-cash working capital |
15 |
|
40,281 |
|
|
|
(11,777 |
) |
|
|
24,694 |
|
|
|
(8,023 |
) |
|
Net cash generated from operating activities |
|
|
165,401 |
|
|
|
51,207 |
|
|
|
318,298 |
|
|
|
101,602 |
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
(50,850 |
) |
|
|
(34,760 |
) |
|
|
(128,458 |
) |
|
|
(148,700 |
) |
|
Proceeds from the sale of property, plant and equipment |
|
|
344 |
|
|
|
108 |
|
|
|
1,049 |
|
|
|
3,880 |
|
|
Proceeds from the sale of Vila Nova, net of cash disposed |
12 |
|
9,896 |
|
|
|
— |
|
|
|
9,896 |
|
|
|
— |
|
|
Value added taxes related to mineral property expenditures,
net |
|
|
(12,800 |
) |
|
|
104 |
|
|
|
(18,283 |
) |
|
|
(7,615 |
) |
|
Proceeds from the sale of marketable securities |
|
|
5,237 |
|
|
|
— |
|
|
|
5,237 |
|
|
|
— |
|
|
Decrease (increase) in term deposits |
|
|
(48,528 |
) |
|
|
(114 |
) |
|
|
(50,089 |
) |
|
|
1,757 |
|
|
Decrease (increase) in restricted cash |
|
|
(20 |
) |
|
|
297 |
|
|
|
1,077 |
|
|
|
10,491 |
|
|
Capitalized interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,848 |
) |
|
Proceeds on pre-commercial production sales, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,159 |
|
|
Net cash used in investing activities |
|
|
(96,721 |
) |
|
|
(34,365 |
) |
|
|
(179,571 |
) |
|
|
(131,876 |
) |
|
|
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
|
Cash received for issuance of shares |
|
|
7,820 |
|
|
|
161 |
|
|
|
94,899 |
|
|
|
179 |
|
|
Acquisition of non-controlling interest |
11 |
|
— |
|
|
|
— |
|
|
|
(7,500 |
) |
|
|
— |
|
|
Contributions from non-controlling interests |
|
|
— |
|
|
|
220 |
|
|
|
301 |
|
|
|
220 |
|
|
Proceeds from borrowings |
6 |
|
— |
|
|
|
— |
|
|
|
150,000 |
|
|
|
494,000 |
|
|
Repayment of borrowings |
6 |
|
(58,574 |
) |
|
|
— |
|
|
|
(91,907 |
) |
|
|
(600,000 |
) |
|
Loan financing costs |
|
|
— |
|
|
|
(428 |
) |
|
|
— |
|
|
|
(15,423 |
) |
|
Principal portion of lease liabilities |
|
|
(2,551 |
) |
|
|
(2,387 |
) |
|
|
(7,584 |
) |
|
|
(4,773 |
) |
|
Purchase of treasury stock |
|
|
— |
|
|
|
— |
|
|
|
(3,679 |
) |
|
|
— |
|
|
Net cash generated from (used in) financing
activities |
|
|
(53,305 |
) |
|
|
(2,434 |
) |
|
|
134,530 |
|
|
|
(125,797 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash
equivalents |
|
|
15,375 |
|
|
|
14,408 |
|
|
|
273,257 |
|
|
|
(156,071 |
) |
|
Cash and cash equivalents - beginning of
period |
|
|
435,624 |
|
|
|
115,109 |
|
|
|
177,742 |
|
|
|
286,312 |
|
|
Cash in disposal group held for sale |
|
|
— |
|
|
|
461 |
|
|
|
— |
|
|
|
(263 |
) |
|
Cash and cash equivalents - end of period |
|
|
$ |
450,999 |
|
|
|
$ |
129,978 |
|
|
|
$ |
450,999 |
|
|
|
$ |
129,978 |
|
|
Eldorado Gold CorporationCondensed
Consolidated Interim Statements of Changes in EquityFor
the three and nine months ended September 30, 2020 and
2019(Unaudited – in thousands of U.S. dollars)
|
|
Three months ended |
|
Nine months ended |
|
|
September 30, |
|
September 30, |
|
|
|
2020 |
|
|
|
|
2019 |
|
|
|
|
2020 |
|
|
|
|
2019 |
|
|
Share capital |
|
|
|
|
|
|
|
|
Balance beginning of period |
|
$ |
3,135,955 |
|
|
|
$ |
3,007,944 |
|
|
|
$ |
3,054,563 |
|
|
|
$ |
3,007,924 |
|
|
Shares issued upon exercise of share options, for cash |
|
185 |
|
|
|
161 |
|
|
|
2,001 |
|
|
|
179 |
|
|
Transfer of contributed surplus on exercise of options |
|
71 |
|
|
|
67 |
|
|
|
801 |
|
|
|
69 |
|
|
Shares issued to the public, net of share issuance costs |
|
6,396 |
|
|
|
— |
|
|
|
85,242 |
|
|
|
— |
|
|
Balance end of period |
|
$ |
3,142,607 |
|
|
|
$ |
3,008,172 |
|
|
|
$ |
3,142,607 |
|
|
|
$ |
3,008,172 |
|
|
|
|
|
|
|
|
|
|
|
Treasury stock |
|
|
|
|
|
|
|
|
Balance beginning of period |
|
$ |
(11,587 |
) |
|
|
$ |
(8,813 |
) |
|
|
$ |
(8,662 |
) |
|
|
$ |
(10,104 |
) |
|
Purchase of treasury stock (Note 13(b)) |
|
— |
|
|
|
— |
|
|
|
(3,679 |
) |
|
|
— |
|
|
Shares redeemed upon exercise of restricted share units |
|
6 |
|
|
|
76 |
|
|
|
760 |
|
|
|
1,367 |
|
|
Balance end of period |
|
$ |
(11,581 |
) |
|
|
$ |
(8,737 |
) |
|
|
$ |
(11,581 |
) |
|
|
$ |
(8,737 |
) |
|
|
|
|
|
|
|
|
|
|
Contributed surplus |
|
|
|
|
|
|
|
|
Balance beginning of period |
|
$ |
2,634,246 |
|
|
|
$ |
2,623,523 |
|
|
|
$ |
2,627,441 |
|
|
|
$ |
2,620,799 |
|
|
Share based payments |
|
2,338 |
|
|
|
2,077 |
|
|
|
6,456 |
|
|
|
6,094 |
|
|
Acquisition of non-controlling interest (Note 11) |
|
— |
|
|
|
— |
|
|
|
4,171 |
|
|
|
— |
|
|
Shares redeemed upon exercise of restricted share units |
|
(6 |
) |
|
|
(76 |
) |
|
|
(760 |
) |
|
|
(1,367 |
) |
|
Transfer to share capital on exercise of options |
|
(71 |
) |
|
|
(67 |
) |
|
|
(801 |
) |
|
|
(69 |
) |
|
Balance end of period |
|
$ |
2,636,507 |
|
|
|
$ |
2,625,457 |
|
|
|
$ |
2,636,507 |
|
|
|
$ |
2,625,457 |
|
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive loss |
|
|
|
|
|
|
|
|
Balance beginning of period |
|
$ |
(28,266 |
) |
|
|
$ |
(23,740 |
) |
|
|
$ |
(28,966 |
) |
|
|
$ |
(24,494 |
) |
|
Other comprehensive income (loss) for the period |
|
442 |
|
|
|
(556 |
) |
|
|
1,142 |
|
|
|
198 |
|
|
Balance end of period |
|
$ |
(27,824 |
) |
|
|
$ |
(24,296 |
) |
|
|
$ |
(27,824 |
) |
|
|
$ |
(24,296 |
) |
|
|
|
|
|
|
|
|
|
|
Deficit |
|
|
|
|
|
|
|
|
Balance beginning of period |
|
$ |
(2,189,129 |
) |
|
|
$ |
(2,325,267 |
) |
|
|
$ |
(2,229,867 |
) |
|
|
$ |
(2,310,453 |
) |
|
Net earnings (loss) attributable to shareholders of the
Company |
|
41,009 |
|
|
|
4,233 |
|
|
|
81,747 |
|
|
|
(10,581 |
) |
|
Balance end of period |
|
$ |
(2,148,120 |
) |
|
|
$ |
(2,321,034 |
) |
|
|
$ |
(2,148,120 |
) |
|
|
$ |
(2,321,034 |
) |
|
Total equity attributable to shareholders of the
Company |
|
$ |
3,591,589 |
|
|
|
$ |
3,279,562 |
|
|
|
$ |
3,591,589 |
|
|
|
$ |
3,279,562 |
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
|
|
|
|
|
|
Balance beginning of period |
|
$ |
45,424 |
|
|
|
$ |
60,257 |
|
|
|
$ |
59,304 |
|
|
|
$ |
63,414 |
|
|
Net loss attributable to non-controlling interests |
|
(2,705 |
) |
|
|
(1,142 |
) |
|
|
(5,214 |
) |
|
|
(4,518 |
) |
|
Acquisition of non-controlling interest (Note 11) |
|
— |
|
|
|
— |
|
|
|
(11,672 |
) |
|
|
— |
|
|
Contributions from non-controlling interests |
|
— |
|
|
|
1 |
|
|
|
301 |
|
|
|
220 |
|
|
Balance end of period |
|
$ |
42,719 |
|
|
|
$ |
59,116 |
|
|
|
$ |
42,719 |
|
|
|
$ |
59,116 |
|
|
Total equity |
|
$ |
3,634,308 |
|
|
|
$ |
3,338,678 |
|
|
|
$ |
3,634,308 |
|
|
|
$ |
3,338,678 |
|
|
Please see the Condensed Consolidated Interim
Financial Statements dated September 30, 2020 for notes to the
accounts.
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