UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934

 
 For the month of October, 2023
 
 Commission File Number: 001-31522
 
 
Eldorado Gold Corporation
(Translation of registrant’s name into English)
 
1188-550 Burrard Street, Bentall 5
Vancouver, B.C. Canada V6C 2B5
(Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
 
Form 20-F¨Form 40-Fþ
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

Note:  Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨            
 
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.




EXHIBIT INDEX

Exhibits
Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended September 30, 2023 and 2022
Management's Discussion and Analysis for the three and nine months ended September 30, 2023
CEO Certification
CFO Certification


SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 ELDORADO GOLD CORPORATION
(Registrant)
 
Date:  October 26, 2023
/s/ Karen Aram                                          
Karen Aram
Corporate Secretary






Exhibit 99.1

 newlogoa27a.jpg
                                     
Condensed Consolidated Interim Financial Statements
September 30, 2023 and 2022
(Unaudited)
(Expressed in thousands of U.S. dollars)











Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Financial Position    
As at September 30, 2023 and December 31, 2022
(Unaudited – in thousands of U.S. dollars)
As at
Note
September 30, 2023December 31, 2022
ASSETS
Current assets
Cash and cash equivalents
$476,624 $279,735 
Term deposits
— 35,000 
Accounts receivable and other
5104,833 91,113 
Inventories
6236,663 198,872 
Current derivative assets
16
4,992 — 
Assets held for sale427,066 27,738 
850,178 632,458 
Restricted cash
2,038 2,033 
Deferred tax assets14,507 14,507 
Other assets
7
164,796 120,065 
Non-current derivative assets
16
14,902 — 
Property, plant and equipment
3,673,191 3,596,262 
Goodwill
92,591 92,591 
$4,812,203 $4,457,916 
LIABILITIES & EQUITY
Current liabilities
Accounts payable and accrued liabilities
$191,666 $191,705 
Current portion of lease liabilities4,916 4,777 
Current portion of asset retirement obligations
3,692 3,980 
Current derivative liabilities
16
1,202 — 
Liabilities associated with assets held for sale410,834 10,479 
212,310 210,941 
Debt
8596,503 494,414 
Lease liabilities
13,044 12,164 
Employee benefit plan obligations
8,485 8,910 
Asset retirement obligations
105,972 105,893 
Non-current derivative liabilities
16
3,708 — 
Deferred income tax liabilities
465,239 424,726 
1,405,261 1,257,048 
Equity
Share capital
123,410,536 3,241,644 
Treasury stock
(15,952)(20,454)
Contributed surplus
2,615,177 2,618,212 
Accumulated other comprehensive loss
(17,680)(42,284)
Deficit
(2,580,843)(2,593,050)
Total equity attributable to shareholders of the Company
3,411,238 3,204,068 
Attributable to non-controlling interests
(4,296)(3,200)
3,406,942 3,200,868 
$4,812,203 $4,457,916 


Approved on behalf of the Board of Directors

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

Date of approval: October 26, 2023

The accompanying notes are an integral part of these condensed consolidated interim financial statements.


Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Operations        
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars except share and per share amounts)            
Three months ended
Nine months ended
September 30,September 30,
Note2023202220232022
Revenue
  Metal sales9$245,255 $217,698 $704,464 $625,817 
Cost of sales
  Production costs115,929 123,486 344,175 337,362 
  Depreciation and amortization62,983 66,424 189,422 174,093 
178,912 189,910 533,597 511,455 
Earnings from mine operations66,343 27,788 170,867 114,362 
Exploration and evaluation expenses6,288 4,449 16,758 12,822 
Mine standby costs103,382 7,965 11,999 30,298 
General and administrative expenses9,291 6,571 29,256 23,096 
Employee benefit plan expense1,277 854 3,496 3,504 
Share-based payments expense132,045 2,842 5,573 6,840 
Write-down of assets2,924 1,090 4,972 23,543 
Foreign exchange (gain) loss (1,726)338 (15,480)(7,379)
Earnings from operations42,862 3,679 114,293 21,638 
Other income1111,366 3,592 30,454 6,971 
Finance costs11(8,910)(9,228)(27,053)(35,006)
Earnings (loss) from continuing operations before income tax45,318 (1,957)117,694 (6,397)
Income tax expense51,984 26,452 103,581 84,763 
Net (loss) earnings from continuing operations(6,666)(28,409)14,113 (91,160)
Net loss from discontinued operations, net of tax(1,201)(30,244)(3,267)(376,568)
Net (loss) earnings for the period$(7,867)$(58,653)$10,846 $(467,728)
Net (loss) earnings attributable to:
Shareholders of the Company(7,998)(54,642)12,207 (397,516)
Non-controlling interests131 (4,011)(1,361)(70,212)
Net (loss) earnings for the period$(7,867)$(58,653)$10,846 $(467,728)
Net (loss) earnings attributable to Shareholders of the Company:
Continuing operations(6,557)(28,411)14,361 (91,060)
Discontinued operations(1,441)(26,231)(2,154)(306,456)
$(7,998)$(54,642)$12,207 $(397,516)
Net earnings (loss) attributable to Non-controlling Interests:
Continuing operations(109)(248)(100)
Discontinued operations240 (4,013)(1,113)(70,112)
$131 $(4,011)$(1,361)$(70,212)
Weighted average number of shares outstanding (thousands)
Basic12202,472 183,783 191,786 183,313 
Diluted12202,472 183,783 192,643 183,313 
Net (loss) earnings per share attributable to Shareholders of the Company:
Basic (loss) earnings per share$(0.04)$(0.30)$0.06 $(2.17)
Diluted (loss) earnings per share$(0.04)$(0.30)$0.06 $(2.17)
Net (loss) earnings per share attributable to Shareholders of the Company - Continuing operations:
Basic (loss) earnings per share$(0.03)$(0.15)$0.07 $(0.50)
Diluted (loss) earnings per share$(0.03)$(0.15)$0.07 $(0.50)

The accompanying notes are an integral part of these condensed consolidated interim financial statements.


Eldorado Gold Corporation                        
Condensed Consolidated Interim Statements of Comprehensive (Loss) Income
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars)                            
Three months ended
Nine months ended
September 30,September 30,
2023202220232022
Net (loss) earnings for the period$(7,867)$(58,653)$10,846 $(467,728)
Other comprehensive income (loss):
Items that will not be reclassified to earnings or loss:
Change in fair value of investments in marketable securities3,375 (15,279)30,872 (23,544)
Income tax expense on change in fair value of investments in marketable securities(476)— (1,657)— 
Actuarial losses on employee benefit plans(2,028)(1,336)(5,693)(1,987)
Income tax recovery on actuarial losses on employee benefit pension plans386 294 1,082 437 
Total other comprehensive income (loss) for the period1,257 (16,321)24,604 (25,094)
Total comprehensive (loss) income for the period$(6,610)$(74,974)$35,450 $(492,822)
Attributable to:
Shareholders of the Company
(6,741)(70,963)36,811 (422,610)
Non-controlling interests
131 (4,011)(1,361)(70,212)
$(6,610)$(74,974)$35,450 $(492,822)





























The accompanying notes are an integral part of these condensed consolidated interim financial statements.


Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Cash Flows        
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars)
Three months ended
Nine months ended
September 30,September 30,
Note2023202220232022
Cash flows generated from (used in):
Operating activities
Net (loss) earnings for the period from continuing operations$(6,666)$(28,409)$14,113 $(91,160)
Adjustments for:
Depreciation and amortization63,789 67,050 191,803 175,771 
Finance costs8,910 9,228 27,053 35,006 
Interest income(5,334)(1,480)(11,784)(2,764)
Unrealized foreign exchange (gain) loss(1,736)3,785 (13,961)19 
Income tax expense51,984 26,452 103,581 84,763 
(Gain) loss on disposal of assets(60)(1,493)707 (2,308)
Unrealized gain on derivative contracts11(5,957)— (14,979)— 
Write-down of assets2,924 1,090 4,972 23,543 
Share-based payments expense132,045 2,842 5,573 6,840 
Employee benefit plan expense1,277 854 3,496 3,504 
111,176 79,919 310,574 233,214 
Property reclamation payments(583)(1,282)(2,539)(2,075)
Employee benefit plan payments(704)(315)(4,815)(2,988)
Settlement of derivative contracts
11
— — 
Income taxes paid(17,727)(24,038)(41,864)(76,605)
Interest received5,334 1,480 11,784 2,764 
Changes in non-cash working capital1410,577 (3,078)(49,874)(39,366)
Net cash generated from operating activities of continuing operations108,080 52,686 223,268 114,944 
Net cash used in operating activities of discontinued operations(84)(172)(15)(251)
Investing activities
Additions to property, plant and equipment(114,597)(73,980)(273,101)(209,159)
Capitalized interest paid(7,302)— (7,829)— 
Proceeds from the sale of property, plant and equipment201 1,637 1,386 3,278 
Purchase of marketable securities and investment in debt securities— (20,163)(633)(20,163)
Value added taxes related to mineral property expenditures, net(5,656)(6,056)(20,158)(24,267)
(Increase) decrease in term deposits— (5,000)35,000 (65,000)
Net cash used in investing activities of continuing operations(127,354)(103,562)(265,335)(315,311)
Financing activities
Issuance of common shares, net of issuance costs(62)84 166,747 13,743 
Contributions from non-controlling interests— — 265 207 
Proceeds from Term Facility - Commercial Loans and RRF Loans43,529 — 114,737 — 
Proceeds from Term Facility - VAT facility8,517 — 9,052 — 
Term Facility loan financing costs(102)— (17,274)— 
Term Facility commitment fees— — (2,529)— 
Interest paid(10,063)(16,226)(27,762)(33,945)
Principal portion of lease liabilities (948)(1,406)(2,793)(5,383)
Purchase of treasury stock(1,131)— (1,131)(13,969)
Net cash generated from (used in) financing activities of continuing operations39,740 (17,548)239,312 (39,347)
Net increase (decrease) in cash and cash equivalents20,382 (68,596)197,230 (239,965)
Cash and cash equivalents - beginning of period456,583 309,958 279,735 481,327 
Cash in disposal group held for sale(341)— (341)— 
Cash and cash equivalents - end of period $476,624 $241,362 $476,624 $241,362 


The accompanying notes are an integral part of these condensed consolidated interim financial statements.


Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Changes in Equity    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars)
Three months ended
Nine months ended
September 30,September 30,
Note2023202220232022
Share capital
Balance beginning of period$3,410,609 $3,240,952 $3,241,644 $3,225,326 
Shares issued upon exercise of share options71 174 5,211 4,117 
Shares issued upon exercise of performance share units (PSU's)— — — 2,256 
Transfer of contributed surplus on exercise of options31 73 2,199 1,665 
Shares issued upon exercise of warrants— — — 213 
Shares issued in private placements, net of share issuance costs(12)(10)66,764 7,612 
Shares issued to the public, net of share issuance costs(163)— 94,718 — 
Balance end of period12$3,410,536 $3,241,189 $3,410,536 $3,241,189 
Treasury stock
Balance beginning of period$(14,821)$(20,454)$(20,454)$(10,289)
Purchase of treasury stock(1,131)— (1,131)(13,969)
Shares redeemed upon exercise of restricted share units (RSU's)— — 5,633 3,804 
Balance end of period$(15,952)$(20,454)$(15,952)$(20,454)
Contributed surplus
Balance beginning of period$2,612,685 $2,612,463 $2,618,212 $2,615,459 
Share-based payment arrangements2,523 2,992 4,797 7,648 
Shares redeemed upon exercise of restricted share units— — (5,633)(3,804)
Shares redeemed upon exercise of performance share units— — — (2,256)
Transfer to share capital on exercise of options(31)(73)(2,199)(1,665)
Balance end of period$2,615,177 $2,615,382 $2,615,177 $2,615,382 
Accumulated other comprehensive loss
Balance beginning of period$(18,937)$(29,678)$(42,284)$(20,905)
Other comprehensive income (loss) for the period attributable to shareholders of the Company1,257 (16,321)24,604 (25,094)
Balance end of period$(17,680)$(45,999)$(17,680)$(45,999)
Deficit
Balance beginning of period$(2,572,845)$(2,582,100)$(2,593,050)$(2,239,226)
(Loss) earnings attributable to shareholders of the Company(7,998)(54,642)12,207 (397,516)
Balance end of period$(2,580,843)$(2,636,742)$(2,580,843)$(2,636,742)
Total equity attributable to shareholders of the Company$3,411,238 $3,153,376 $3,411,238 $3,153,376 
Non-controlling interests
Balance beginning of period$(4,427)$3,563 $(3,200)$69,557 
Earnings (loss) attributable to non-controlling interests131 (4,011)(1,361)(70,212)
Contributions from non-controlling interests— — 265 207 
Balance end of period$(4,296)$(448)$(4,296)$(448)
Total equity$3,406,942 $3,152,928 $3,406,942 $3,152,928 


The accompanying notes are an integral part of these condensed consolidated interim financial statements.


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
1. General Information
Eldorado Gold Corporation (individually or collectively with its subsidiaries, as applicable, “Eldorado” or the “Company”) is a gold and base metals mining, development, and exploration company. The Company has mining operations, ongoing development projects and exploration in Turkiye, Canada, and Greece.
Eldorado is a public company listed on the Toronto Stock Exchange (“TSX”) and the New York Stock Exchange (“NYSE”) and is incorporated under the Canada Business Corporations Act.
The Company's head office, principal address and records are located at 550 Burrard Street, Suite 1188, Vancouver, British Columbia, Canada, V6C 2B5.

2. Basis of preparation
(a)Statement of compliance
These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34 ‘Interim Financial Reporting’. They do not include all of the information and footnotes required by International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board for full annual financial statements and should be read in conjunction with the Company’s audited annual consolidated financial statements as at and for the year ended December 31, 2022.
The same accounting policies were used in the preparation of these unaudited condensed consolidated interim financial statements as for the most recent audited annual consolidated financial statements and reflect all the adjustments necessary for fair presentation in accordance with IFRS for the interim periods presented.
These unaudited condensed consolidated interim financial statements were authorized for issue by the Company’s Board of Directors on October 26, 2023.
(b)Critical accounting estimates and judgements
The preparation of these unaudited condensed consolidated interim financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
Significant judgements made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty are the same as those that applied to the audited annual consolidated financial statements as at and for the year ended December 31, 2022.

3. Significant accounting policies
Adoption of new accounting standards
A number of amendments to standards were effective for annual periods beginning on or after January 1, 2023, including amendments to IAS 1, IFRS Practice Statement 2, IAS 8 and IAS 12. There was no material impact on the Company's consolidated financial statements from the adoption of these amendments.

(1)



Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
4. Disposal group held for sale & discontinued operations
Certej project
On October 26, 2022, the Company entered into a share purchase agreement to sell the Certej project, a non-core gold asset in the Romania segment. While the agreement expired on March 24, 2023, the Company is committed to continue its plan to sell the disposal group within the next twelve months.
As at September 30, 2023, the disposal group was stated at fair value less costs to sell and comprised the following assets and liabilities:
September 30, 2023December 31, 2022
Cash$341 $356 
Accounts receivable and other999 1,150 
Property, plant, and equipment24,238 24,731 
Inventories1,488 1,501 
Assets held for sale$27,066 $27,738 
Accounts payable and accrued liabilities$(203)$(168)
Asset retirement obligations(10,631)(10,311)
Liabilities associated with assets held for sale$(10,834)$(10,479)

During the year ended December 31, 2022, the Company recorded impairment of $394,723 ($374,684 net of deferred tax) on the Certej project. The fair value measurement for the disposal group has been categorized as a Level 3 fair value based on the expected cash consideration of a sale, less estimated costs of disposal.
The results from operations of the Romanian reporting segment include:
Three months ended September 30,Nine months ended September 30,
2023 2022 2023 2022 
Expenses$(1,201)$(947)$(3,267)$(1,884)
Impairment of property and equipment— (29,297)— (394,723)
Loss from operations(1,201)(30,244)(3,267)(396,607)
Income tax recovery— — — (20,039)
Loss from discontinued operations, net of tax$(1,201)$(30,244)$(3,267)$(376,568)
Earnings (loss) from discontinued operations attributable to non-controlling interest$240 $(4,013)$(1,113)$(70,112)
Loss from discontinued operations attributable to shareholders of the Company$(1,441)$(26,231)$(2,154)$(306,456)
Basic loss per share attributable to shareholders of the Company$(0.01)$(0.14)$(0.01)$(1.67)
Diluted loss per share attributable to shareholders of the Company$(0.01)$(0.14)$(0.01)$(1.67)
Net cash used in operating activities of the Romanian reporting segment during the three and nine months ended September 30, 2023 was $84 and $15, respectively. Net cash used in operating activities during the three and nine months ended September 30, 2022 was $172 and $251, respectively.

(2)



Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
5. Accounts receivable and other
September 30, 2023December 31, 2022
Trade receivables$43,933 $33,746 
Value added tax and other taxes recoverable17,248 19,679 
Other receivables and advances14,390 13,610 
Prepaid expenses and deposits29,138 23,940 
Investment in marketable securities124 138 
$104,833 $91,113 

6. Inventories
September 30, 2023December 31, 2022
Ore stockpiles$10,056 $10,521 
In-process inventory and finished goods99,555 67,261 
Materials and supplies127,052 121,090 
$236,663 $198,872 

7. Other Assets
September 30, 2023December 31, 2022
Long-term value added tax and other taxes recoverable$66,499 $55,394 
Prepaid forestry fees1,403 1,403 
Prepaid loan costs(1)
3,523 1,487 
Investment in marketable securities and debt securities93,201 61,611 
Other 170 170 
$164,796 $120,065 
(1) Prepaid loan costs include prepaid transaction costs for the revolving VAT and cost overrun components of the Skouries Project Financing facility (Note 8).



(3)



Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
8. Debt
September 30, 2023December 31, 2022
Senior notes due 2029, net of unamortized transaction fees of $5,518 (2022 – $6,783) and initial redemption option of $3,784
$498,266 $498,090 
Redemption option derivative asset(1,654)(3,676)
Term Facility commercial loans, net of unamortized transaction fees of $15,729
61,828 — 
Term Facility RRF loans, net of unamortized transaction fees of $6,080
29,202 — 
Term Facility revolving VAT facility8,861 — 
$596,503 $494,414 

Skouries Project Financing Facility ("Term Facility")
On April 5, 2023, the Company completed the €680,400 project financing facility for the development of the Skouries project in Northern Greece. The Term Facility includes €200,000 of funds from the Greek Recovery and Resilience Facility (the "RRF"). The Term Facility also provides a €30,000 revolving credit facility to fund reimbursable value added tax ("VAT") expenditures relating to the Skouries project. The project financing further includes, in addition to the Term Facility, a Contingent Overrun Facility for an additional 10% of capital costs, funded by the lenders and Hellas Gold Single Member S.A. ("Hellas") in the same proportion as the Term Facility. The Term Facility is non-recourse to Eldorado Gold Corporation and is secured by the Skouries project and the Hellas operating assets.
The Company's equity commitment for the project is backstopped by a letter of credit in the amount of €126,211 ($133,708) as at September 30, 2023, issued under the Company's $250,000 amended and restated fourth senior secured credit facility (the "Fourth ARCA"). The letter of credit will be reduced Euro for Euro as the Company invests further in the Skouries project.
The Term Facility includes the following components:
i.€480,400 commercial loans at a variable interest rate comprised of six-months EURIBOR plus a fixed margin, with 70% of the variable rate exposure to be economically hedged through an interest rate swap for the term of the facility (Note 16(e)).
ii.€100,000 initial RRF loans at a fixed interest rate of 3.04% for the term of the facility.
iii.€100,000 additional RRF loan at a fixed interest rate of 4.06% for the term of the facility.
In the nine months ended September 30, 2023, the Company completed three drawdowns on the Term Facility totalling €106,512 ($112,839), including €73,208 ($77,557) commercial loans and €33,304 ($35,282) from the RRF loans. Additionally, during the nine months ended September 30, 2023, the Company completed numerous drawdowns on the VAT revolving credit facility totalling €8,364 ($8,861).
In April 2023, in accordance with the requirements of the Term Facility, the Company entered into a secured hedging program including gold and copper commodity swaps, an interest rate swap and U.S. dollar to Euro forward contracts (Note 16(d),(e),(f)).
Drawings from the Term Facility will continue on a periodic basis through the earlier of March 31, 2026 or three months following completion of the Skouries project. There is a deferral option, which if exercised, will extend drawings from the Term Facility through the earlier of August 26, 2026 or three months following completion of the Skouries project.
Repayment of the commercial loans, the RRF loans, and the Contingent Overrun Facility will commence on June 30, 2026, with 14 semi-annual installments, through to December 31, 2032. If the deferral option is exercised, repayment will commence on December 31, 2026, with 13 semi-annual installments, through to December 31, 2032.
(4)



Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
8. Debt (continued)
Proceeds from the VAT Facility will be drawn and repaid on a revolving basis, with a maturity date of the earlier of June 30, 2027 or 18 months following completion of the Skouries project.
The Term Facility contains a number of standard financial covenants, including debt service and leverage ratios.
As at September 30, 2023, €87,142 ($92,318) of cash and cash equivalents, comprising of proceeds from the Term Facility and proceeds from the European Bank of Reconstruction and Development ("EBRD") private placement (Note 12(a)) is restricted for the use of constructing the Skouries project.
Senior Notes
On August 26, 2021, the Company completed an offering of $500 million senior unsecured notes with a coupon rate of 6.25% due September 1, 2029 (the “senior notes”). The senior notes pay interest semi-annually on March 1 and September 1, which began on March 1, 2022.
The senior notes are guaranteed by Eldorado Gold (Netherlands) B.V., SG Resources B.V., Tuprag Metal Madencilik Sanayi ve Ticaret AS, and Eldorado Gold (Quebec) Inc., all wholly-owned subsidiaries of the Company.
The senior notes contain certain redemption features that constitute an embedded derivative asset, which is recognized separately at fair value and is classified as fair value through profit and loss. The decrease in fair value for the three and nine months ended September 30, 2023 is $1,471 and $2,022 (three and nine months ended September 30, 2022 – $10 and $7,387), which is recognized in finance costs.
The senior notes contain covenants that restrict, among other things, distributions in certain circumstances and sales of certain material assets, in each case, subject to certain conditions. The Company is in compliance with these covenants at September 30, 2023.
The fair market value of the senior notes as at September 30, 2023 is $431,650.
Senior Secured Credit Facility
On October 15, 2021, the Company executed the $250 million Fourth ARCA with an option to increase the available credit by $100 million through the accordion feature, with a maturity date of October 15, 2025.
The Company's equity commitment for the Skouries project is backstopped by a letter of credit issued under the Company's revolving credit facility. As at September 30, 2023, after giving effect to investments in the project to date and including proceeds from the EBRD investment, the amount outstanding under the letter of credit for Skouries was €126,211 ($133,708) and the Company's available balance on the revolving credit facility was $115,977. The letter of credit will continue to be reduced Euro for Euro as the Company invests further in the Skouries project.

(5)



Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
9. Revenue
For the three months ended September 30, 2023, revenue from contracts with customers by product and segment was as follows:
TurkiyeCanadaGreeceTotal
Gold revenue - doré$74,486 $78,745 $— $153,231 
Gold revenue - concentrate39,860 — 30,726 70,586 
Silver revenue - doré677 378 — 1,055 
Silver revenue - concentrate990 — 8,998 9,988 
Lead concentrate— — 7,487 7,487 
Zinc concentrate— — 3,661 3,661 
Revenue from contracts with customers$116,013 $79,123 $50,872 $246,008 
Loss on revaluation of derivatives in trade receivables - gold(1,749)— (501)(2,250)
Gain on revaluation of derivatives in trade receivables - other metals— — 1,497 1,497 
$114,264 $79,123 $51,868 $245,255 

For the three months ended September 30, 2022, revenue from contracts with customers by product and segment were as follows:
TurkiyeCanadaGreeceTotal
Gold revenue - doré$65,073 $72,773 $— $137,846 
Gold revenue - concentrate34,972 — 24,545 59,517 
Silver revenue - doré636 320 — 956 
Silver revenue - concentrate586 — 3,997 4,583 
Lead concentrate— — 4,147 4,147 
Zinc concentrate— — 15,023 15,023 
Revenue from contracts with customers$101,267 $73,093 $47,712 $222,072 
Loss on revaluation of derivatives in trade receivables - gold(1,261)— (1,052)(2,313)
Loss on revaluation of derivatives in trade receivables - other metals— — (2,061)(2,061)
$100,006 $73,093 $44,599 $217,698 
(6)



Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
9. Revenue (continued)
For the nine months ended September 30, 2023, revenue from contracts with customers by product and segment were as follows:
TurkiyeCanadaGreeceTotal
Gold revenue - doré$209,613 $230,217 $— $439,830 
Gold revenue - concentrate122,263 — 83,899 206,162 
Silver revenue - doré2,307 1,157 — 3,464 
Silver revenue - concentrate3,285 — 23,892 27,177 
Lead concentrate— — 20,450 20,450 
Zinc concentrate— — 12,018 12,018 
Revenue from contracts with customers$337,468 $231,374 $140,259 $709,101 
Loss on revaluation of derivatives in trade receivables - gold(1,683)— (1,321)(3,004)
Loss on revaluation of derivatives in trade receivables - other metals— — (1,633)(1,633)
$335,785 $231,374 $137,305 $704,464 

For the nine months ended September 30, 2022, revenue from contracts with customers by product and segment were as follows:
TurkiyeCanadaGreeceTotal
Gold revenue - doré$171,214 $221,949 $— $393,163 
Gold revenue - concentrate116,907 — 59,474 176,381 
Silver revenue - doré2,112 1,036 — 3,148 
Silver revenue - concentrate2,301 — 17,047 19,348 
Lead concentrate— — 13,871 13,871 
Zinc concentrate— — 25,668 25,668 
Revenue from contracts with customers$292,534 $222,985 $116,060 $631,579 
Loss on revaluation of derivatives in trade receivables - gold(2,225)— (2,303)(4,528)
Loss on revaluation of derivatives in trade receivables - other metals— — (1,234)(1,234)
$290,309 $222,985 $112,523 $625,817 

(7)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

10. Mine standby costs
Three months ended September 30,Nine months ended September 30,
2023 2022 2023 2022 
Stratoni$2,960 $4,841 $8,858 $21,676 
Skouries— 2,248 — 6,292 
Other mine standby costs422 876 3,141 2,330 
$3,382 $7,965 $11,999 $30,298 

11. Other income and finance costs
(a) Other incomeThree months ended September 30,Nine months ended September 30,
2023202220232022
Interest and other income$5,342 $2,099 $16,180 $4,663 
Gain (loss) on disposal of assets60 1,493 (707)2,308 
Unrealized gain on derivative instruments5,957 — 14,979 — 
Realized gain on derivative instruments— — 
$11,366 $3,592 $30,454 $6,971 

(b) Finance costsThree months ended September 30,Nine months ended September 30,
2023202220232022
Interest cost on senior notes due 2029$7,872 $7,869 $23,613 $23,516 
Interest cost on Term Facility commercial loans1,097 — 1,577 — 
Interest cost on Term Facility RRF loans277 — 425 — 
Other interest and financing costs2,131 496 5,458 1,465 
Loss on redemption option derivative (Note 8)
1,471 10 2,022 7,387 
Interest expense on lease liabilities428 358 1,303 1,153 
Asset retirement obligation accretion1,075 495 3,224 1,485 
Total finance costs$14,351 $9,228 $37,622 $35,006 
Less: capitalized interest(5,441)— (10,569)— 
$8,910 $9,228 $27,053 $35,006 


(8)



Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
12. Share capital and (loss) earnings per share
(a) Share capital     
2023
2022
Voting common sharesNumber of SharesTotalNumber of SharesTotal
Balance at January 1,184,800,571 $3,241,644 182,673,118 $3,225,326 
Shares issued upon exercise of share options716,415 5,211 815,312 4,117 
Shares issued on redemption of performance share units— — 528,166 2,256 
Estimated fair value of share options exercised transferred from contributed surplus— 2,199 — 1,665 
Shares issued upon exercise of warrants— — 19,037 213 
Shares issued for private placement with EBRD, net of issuance costs6,269,231 60,136 — — 
Shares issued for bought deal offering, net of issuance costs10,400,000 94,718 — — 
Flow-through shares issued, net of issuance costs and premium680,900 6,628 694,500 7,612 
Balance at September 30,
202,867,117 $3,410,536 184,730,133 $3,241,189 

On June 14, 2023, the Company completed a private placement with EBRD consisting of 6,269,231 common shares at a price of CDN $13.00 per common share for gross proceeds of CDN $81,500 ($61,292). These proceeds will be invested in the Skouries project, and will be credited against the Company's 20% equity funding commitment per the terms of the project financing facility that closed on April 5, 2023.
On June 7, 2023, the Company completed a bought deal prospectus offering of 10,400,000 common shares at a price of CDN $13.00 per common share for gross proceeds of CDN $135,200 ($101,076).
On June 6, 2023, the Company completed a private placement of 390,900 common shares at a price of CDN $19.18 per share for proceeds of CDN $7,498; and a private placement of 290,000 common shares at a price of CDN $17.24 per share for proceeds of CDN $4,998. The shares qualify as flow-through shares for Canadian tax purposes and were issued at premiums of CDN $6.02 per share and CDN $4.08 per share, respectively, to the closing market price of the Company's common shares at the date of issue. The combined premium of CDN $3,536 ($2,635) was recognized in accounts payable and accrued liabilities and will be recognized in other income as required expenditures are incurred and related tax benefits renounced.



(9)



Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
12. Share capital and (loss) earnings per share (continued)
(b) (Loss) earnings per share
The weighted average number of common shares for the purposes of diluted (loss) earnings per share reconciles to the weighted average number of common shares used in the calculation of basic (loss) earnings per share as follows:
Three months ended September 30,Nine months ended September 30,
2023202220232022
Weighted average number of common shares used in the calculation of basic (loss) earnings per share
202,471,872 183,783,392 191,786,143 183,312,983 
Dilutive impact of share options— — 506,863 — 
Dilutive impact of restricted share units and restricted share units with performance criteria— — 344,631 — 
Dilutive impact of performance share units— — 5,059 — 
Weighted average number of common shares used in the calculation of diluted (loss) earnings per share
202,471,872 183,783,392 192,642,696 183,312,983 

As at September 30, 2023, 2,555,054 options (September 30, 2022 – 2,800,673) were excluded from the dilutive weighted-average number of common shares calculation because their effect would have been anti-dilutive.
As the three months ended September 30, 2023 was in a net loss position, 410,312 share options, 272,210 restricted stock units ("RSU's") and RSU's with performance criteria, and 7,059 performance share units ("PSU's") were anti-dilutive.
As the three months ended September 30, 2022 was in a net loss position, 266,526 share options, 176,683 RSU's and RSU's with performance criteria, and nil PSU's were anti-dilutive.
As the nine months ended September 30, 2022 was in a net loss position, 578,655 share options, 286,680 RSU's and RSU's with performance criteria, and 49,809 PSU's were anti-dilutive.
(10)



Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
13. Share-based payments expense
Three months ended September 30,Nine months ended September 30,
2023202220232022
Share options$599 $1,145 $1,832 $3,272 
Restricted shares with no performance criteria668 425 1,099 1,194 
Restricted shares with performance criteria342 842 130 1,701 
Performance shares914 580 1,736 1,480 
Deferred units(478)(150)776 (807)
$2,045 $2,842 $5,573 $6,840 

14. Supplementary cash flow information
Three months ended September 30,Nine months ended September 30,
2023202220232022
Changes in non-cash working capital:
Accounts receivable and other$(10,107)$6,043 $(14,620)$7,576 
Inventories(2,996)4,145 (29,591)(17,264)
Accounts payable and accrued liabilities23,680 (13,266)(5,663)(29,678)
$10,577 $(3,078)$(49,874)$(39,366)

15. Commitments and contractual obligations
Significant changes to the Company's commitments and contractual obligations as at September 30, 2023 compared to December 31, 2022 include:
Within 1 Year2 Years3 Years4 Years5 YearsOver 5 YearsTotal
Debt - Senior notes*$— $— $— $— $— $500,000 $500,000 
Debt - Term Facility*$8,861 $— $36,041 $72,082 $4,716 $— $121,700 
Purchase obligations and other commitments$25,868 $882 $284 $— $— $— $27,034 
* Does not include interest on debt.
Purchase obligations relate primarily to operating costs at all mines and capital projects at Kisladag and Skouries.
(11)



Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
16. Derivative financial instruments
September 30, 2023December 31, 2022
Foreign currency collars$24 $— 
Gold collars15,584 — 
Gold commodity swaps1,731 — 
Interest rate swaps2,134 — 
Foreign currency forward contracts421 — 
Total derivative assets$19,894 $— 
Classified as:September 30, 2023December 31, 2022
Current$4,992 $— 
Non-current14,902 — 
$19,894 $— 
September 30, 2023December 31, 2022
Foreign currency collars$485 $— 
Euro forward contracts2,069 — 
Copper commodity swaps249 — 
Foreign currency forward contracts2,107 — 
Total derivative liabilities$4,910 $— 
Classified as:September 30, 2023December 31, 2022
Current$1,202 $— 
Non-current3,708 — 
$4,910 $— 

(12)



Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
16. Derivative financial instruments (continued)
(a)Foreign Currency Collars
The Company entered into zero-cost collars (purchase of a put option and sale of a call option) to reduce the risk associated with fluctuations of the Euro and Canadian dollar at the Olympias mine and Lamaque operations, respectively. These derivatives set a band within which the Company expects to be able to protect against currency movements, either above or below specific strike prices. These derivatives are not designated as hedging instruments. Changes in the fair value of the foreign currency collars are recorded in other income and expense.
As at September 30, 2023, the Company's outstanding foreign currency collars were as follows:
20232024
Canadian dollar collars
   Canadian dollar contracts US$27,000 US$42,000 
   Weighted average put strike price (USD:CDN)1.301.30
   Weighted average call strike price (USD:CDN)1.431.44
Euro collars
   Euro contracts€18,000 €78,000 
   Weighted average put strike price (EUR:USD)1.111.14 
   Weighted average call strike price (EUR:USD)1.021.03 

Canadian dollar collars totalling US$69,000 and Euro collars totalling €57,400 expired in the nine months ended September 30, 2023 without financial settlement. During the three and nine months ended September 30, 2023, Euro collars totalling €2,000 matured with financial gain of US$7 to the Company.

Three months ended September 30,Nine months ended September 30,
2023202220232022
Opening derivative asset (liability)$593 $— $— $— 
Change in fair value(1,047)— (454)— 
Settlements(7)— (7)— 
Closing derivative asset (liability)$(461)$— $(461)$— 


(13)



Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
16. Derivative financial instruments (continued)
(b)Euro Forward Contracts
In August 2023, the Company entered into foreign exchange forward contracts to fix the U.S. Dollar to Euro exchange rate for a portion of the Company’s equity commitment for the Skouries project. From June 30, 2024 to May 31, 2025, €5,000 will be delivered to the Company every month at a forward rate of EUR/USD 1.1160.
The foreign currency forward contracts have not been designated as hedging instruments. Changes in the fair value of the foreign currency forward contracts will be recorded in other income and expense. Changes in the fair value of foreign currency forward contracts outstanding during the three and nine months ended September 30, 2023 were as follows:
Three months ended September 30,Nine months ended September 30,
2023202220232022
Opening derivative asset (liability)$— $— $— $— 
Change in fair value(2,069)— (2,069)— 
Closing derivative asset (liability)$(2,069)$— $(2,069)$— 

(c)Gold Collars
In May 2023, the Company entered into zero-cost collars (purchase of a put option and sale of a call option) to reduce the risk associated with fluctuations of the price of gold and to manage cash flow variability during the construction period of Skouries. These derivatives set a band within which the Company expects to be able to protect against gold price movements, either above or below specific strike prices. Under the gold collars, 16,667 ounces settle monthly during the period from June 2023 through December 2025.
These derivatives are not designated as hedging instruments. Changes in the fair value of the gold collars are recorded in other income and expense.
As at September 30, 2023, the Company's outstanding gold collars were as follows:
202320242025
Gold ounces 50,001 200,004 200,004 
Weighted average put strike price per ounceUS$1,700 US$1,800 US$1,900 
Weighted average call strike price per ounceUS$2,736 US$2,765 US$2,667 

Changes in the fair value of gold collars outstanding during the three and nine months ended September 30, 2023 were as follows:
Three months ended September 30,Nine months ended September 30,
2023202220232022
Opening derivative asset (liability)$7,464 $— $— $— 
Change in fair value8,120 — 15,584 — 
Closing derivative asset (liability)$15,584 $— $15,584 $— 

Gold collars totalling 66,668 ounces expired in the nine months ended September 30, 2023 without financial settlement.
(14)



Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
16. Derivative financial instruments (continued)
(d)Gold and Copper Commodity Swaps
In April 2023, in conjunction with the Term Facility, the Company entered into gold and copper commodity swap contracts for settlement on July 7, 2026 based on the average applicable commodity price over the period of June 1, 2026 to June 30, 2026. The gold commodity swap contracts total 32,000 ounces at a forward price of US$2,160 per ounce and will be financially settled. The copper commodity swap contracts total 6,160 tonnes of copper at a forward price of US$8,525 per tonne and will be financially settled.
These derivatives have not been designated as hedging instruments. Changes in the fair value of the gold and copper forward sales contracts are recorded in other income and expense.
Changes in the fair value of gold commodity swaps outstanding during the three and nine months ended September 30, 2023 were as follows:
Three months ended September 30,Nine months ended September 30,
Gold commodity swaps2023202220232022
Opening derivative asset (liability)$(362)$— $— $— 
Change in fair value2,093 — 1,731 — 
Closing derivative asset (liability)$1,731 $— $1,731 $— 

Changes in the fair value of copper commodity swaps outstanding during the three and nine months ended September 30, 2023 were as follows:
Three months ended September 30,Nine months ended September 30,
Copper commodity swaps2023202220232022
Opening derivative asset (liability)$1,036 $— $— $— 
Change in fair value(1,285)— (249)— 
Closing derivative asset (liability)$(249)$— $(249)$— 

(15)



Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
16. Derivative financial instruments (continued)
(e)Interest Rate Swaps
In April 2023, in conjunction with the Term Facility, the Company entered into interest rate swaps covering 70% of the variable interest rate exposure under the six-months EURIBOR index. The interest rate swaps have a fixed rate of 3.11% and mature on December 31, 2032. The interest payment frequency is every six months.
The interest rate swaps have not been designated as hedging instruments. Changes in the fair value of the interest rate swaps are recorded in other income and expense.
Changes in the fair value of interest rate swaps outstanding during the three and nine months ended September 30, 2023 were as follows:
Three months ended September 30,Nine months ended September 30,
2023202220232022
Opening derivative asset (liability)$(1,454)$— $— $— 
Change in fair value3,588 — 2,139 — 
Settlements— — (5)— 
Closing derivative asset (liability)$2,134 $— $2,134 $— 

(f)Foreign Currency Forward Contracts
In April 2023, in conjunction with the Term Facility, the Company entered into foreign exchange forward contracts to fix the U.S. Dollar to Euro exchange rate for a portion of the Term Facility repayments. From June 30, 2026 to December 31, 2029, €17,000 will be delivered to the Company every six months at an average forward rate of EUR/USD 1.1473. From June 28, 2030 to December 30, 2032, €11,350 will be delivered to the Company every six months at an average forward rate of EUR/USD 1.1704.
The foreign currency forward contracts have not been designated as hedging instruments. Changes in the fair value of the foreign currency forward contracts will be recorded in other income and expense.
Changes in the fair value of foreign currency forward contracts outstanding during the three and nine months ended September 30, 2023 were as follows:
Three months ended September 30,Nine months ended September 30,
2023202220232022
Opening derivative asset (liability)$1,740 $— $— $— 
Change in fair value(3,426)— (1,686)— 
Closing derivative asset (liability)$(1,686)$— $(1,686)$— 

(16)



Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
17. Financial instruments by category
Fair values are determined directly by reference to published price quotations in an active market, when available, or by using a valuation technique that uses inputs observed from relevant markets.
The three levels of the fair value hierarchy are described below:
Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
Level 2 – Inputs that are observable, either directly or indirectly, but do not qualify as Level 1 inputs (i.e., quoted prices for similar assets or liabilities).
Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
Assets and liabilities measured at fair value as at September 30, 2023 and December 31, 2022 are as follows:
September 30, 2023
Level 1 (11)
Level 2Level 3Total  
Marketable securities(1)
$85,182 $— $— $85,182 
Investments in debt securities(2)
8,143 — — 8,143 
Settlement receivables(3)
— 43,932 — 43,932 
Redemption option derivative asset(4)
— 1,654 — 1,654 
Foreign currency collars - assets(5)
— 24 — 24 
Foreign currency collars - liabilities(5)
— (485)— (485)
Euro forward contracts - liabilities (6)
— (2,069)— (2,069)
Gold collars - assets(7)
— 15,584 — 15,584 
Gold commodity swaps - assets(8)
— 1,731 — 1,731 
Copper commodity swaps - liabilities(8)
— (249)— (249)
Interest rate swaps - assets(9)
— 2,134 — 2,134 
Foreign currency forward contracts - assets(10)
— 421 — 421 
Foreign currency forward contracts - liabilities(10)
— (2,107)— (2,107)
Net financial assets (liabilities)$93,325 $60,570 $ $153,895 
(1)Marketable securities include publicly-traded equity investments classified as fair value through other comprehensive income.
(2)Investments in debt securities include publicly-traded debt securities classified as fair value through other comprehensive income.
(3)Settlement receivables arise from provisional pricing in contracts for the sale of metals in concentrate classified as fair value through profit and loss with fair value determined based on forward metal prices for the quotational period.
(4)The redemption option derivative asset is an embedded derivative separately recognized to reflect the redemption features of the senior notes and is classified as fair value through profit and loss (Note 8) with fair value based on models using observable interest rate inputs.
(5)Canadian dollar and Euro zero-cost collars classified as fair value through profit and loss (Note 16(a)) with fair value based on observable forward foreign exchange rates.
(6)Euro forward contracts classified as fair value through profit and loss (Note 16(b)) with fair value based on observable forward foreign exchange rates.
(7)Gold zero-cost collars classified as fair value through profit and loss (Note 16(c)) with fair value based on observable forward metal prices.
(8)Gold and copper commodity swaps classified as fair value through profit and loss (Note 16(d)) with fair value based on observable forward metal prices.
(9)Interest rate swaps classified as fair value through profit and loss (Note 16(e)) with fair value based on observable forward interest rates.
(10)U.S. dollar to Euro forward contracts classified as fair value through profit and loss (Note 16(f)) with fair value based on observable forward foreign exchange rates.
(11)The fair value of financial instruments traded in active markets is based on quoted market prices at the date of the statement of financial position. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by the group is the current bid price.
(17)



Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
17. Financial instruments by category (continued)
December 31, 2022
Level 1 (6)
Level 2Level 3Total  
Marketable securities(1)
$54,706 $— $— $54,706 
Investments in debt securities(2)
7,043 — — 7,043 
Settlement receivables(3)
— 33,393 — 33,393 
Redemption option derivative asset(4)
— 3,676 — 3,676 
Turkish Lira deposits(5)
— 35,000 — 35,000 
Net financial assets (liabilities)$61,749 $72,069 $ $133,818 

(1)Marketable securities include publicly-traded equity investments classified as fair value through other comprehensive income.
(2)Investments in debt securities include publicly-traded debt securities classified as fair value through other comprehensive income.
(3)Settlement receivables arise from provisional pricing in contracts for the sale of metals in concentrate classified as fair value through profit and loss with fair value determined based on forward metal prices for the quotational period.
(4)The redemption option derivative asset is an embedded derivative separately recognized to reflect the redemption features of the senior notes and is classified as fair value through profit and loss (Note 8) with fair value based on models using observable interest rate inputs.
(5)Turkish Lira deposits protected from the weakening of the Turkish Lira against the U.S. dollar and measured at fair value through profit and loss using an observable foreign exchange rate.
(6)The fair value of financial instruments traded in active markets is based on quoted market prices at the date of the statement of financial position. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by the group is the current bid price.

There were no amounts transferred between levels of the fair value hierarchy during the three months and nine months ended September 30, 2023 and 2022. For all other financial instruments, carrying amounts approximate fair value.

(18)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

18. Financial risk management
Eldorado’s activities expose it to a variety of financial risks. Significant changes to the Company’s financial risks and overall risk management program as at September 30, 2023 are outlined below.
Foreign Exchange Risk
The Company is exposed to foreign exchange risk arising from transactions denominated in foreign currencies.
In April 2023, in conjunction with the Term Facility, the Company entered into foreign exchange contracts to fix the U.S. Dollar to Euro exchange rate for a portion of the Term Facility repayments (Note 16(f)), reducing its exposure to foreign exchange risk.
In August 2023, the Company entered into foreign exchange forward contracts to fix the U.S. Dollar to Euro exchange rate for a portion of the Company’s equity commitment for the Skouries project (Note 16(b)), reducing its exposure to foreign exchange risk.
The Company continues to use zero-cost collars to reduce the risk associated with fluctuations of the Euro and Canadian dollar (Note 16(a)) at the Olympias mine and Lamaque operations, respectively.
Metal Price and Global Market Risk
The Company is subject to price risk for fluctuations in the market price of gold and other metals.
In April 2023, in conjunction with the Term Facility, the Company entered into gold and copper commodity swap contracts, reducing its exposure to fluctuations in future metal prices. The contracts settle on July 7, 2026 based on the average applicable commodity price over the period of June 1, 2026 to June 30, 2026 (Note 16(d)).
In May 2023, the Company entered into zero-cost gold collars to reduce the risk associated with fluctuations of the price of gold and to manage cash flow variability during the construction period of Skouries. Under the gold collars, 16,667 ounces settle monthly during the period from June 2023 through December 2025 (Note 16(c)).
Interest Rate Risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market interest rates.
Borrowings under the Term Facility include amounts at variable rates based on EURIBOR. To reduce interest rate risk, the Company has entered into an interest rate swap covering 70% of the variable interest rate exposure related to the Term Facility (Note 16(e)).
Credit Risk
The Company manages credit risk by entering into business arrangements with high credit-quality counterparties, limiting the amount of exposure to each counterparty and monitoring the financial condition of counterparties. The Company also monitors the credit ratings of all financial institutions in which it holds cash and investments.
Turkish Lira deposits held at a Turkish banking institution equivalent to $35,000 matured in February 2023, reducing the Company's exposure to credit risk.
Liquidity Risk
Liquidity risk is the risk that an entity will encounter difficulty in raising funds to meet commitments associated with financial instruments.
The Company's equity commitment for the Skouries project is backstopped by a letter of credit issued under the Company's revolving credit facility. As at September 30, 2023, after giving effect to investments in the project to date and including proceeds from the EBRD investment, the amount outstanding under the letter of credit for Skouries was €126,211 ($133,708) and the Company's available balance on the revolving credit facility was $115,977. The letter of credit will continue to be reduced Euro for Euro as the Company invests further in the Skouries project.
(19)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

19. Segment information
Identification of reportable segments
The Company has identified its operating segments based on the internal reports that are reviewed and used by the chief executive officer and the executive management (the chief operating decision makers or “CODM”) in assessing performance and in determining the allocation of resources.
The CODM consider the business from both a geographic and product perspective and assess the performance of the operating segments based on measures of profit and loss as well as assets and liabilities. These measures include earnings (loss) from mine operations, expenditures on exploration, property, plant and equipment and non-current assets, as well as total debt. As at September 30, 2023, Eldorado had five reportable segments based on the geographical location of mining and exploration and development activities.
Geographical segments
Geographically, the operating segments are identified by country and by operating mine. The Turkiye reporting segment includes the Kisladag and the Efemcukuru mines and exploration activities in Turkiye. The Canada reporting segment includes the Lamaque Triangle mine and exploration activities in Canada. The Greece reporting segment includes the Olympias mine, the Skouries and Perama Hill projects and exploration activities in Greece. The Greece segment also includes the Stratoni mine and mill, which transitioned to care and maintenance during 2022. The Romania reporting segment includes the Certej project and exploration activities in Romania, and is classified as a disposal group held for sale at September 30, 2023. Other reporting segment includes operations of Eldorado’s corporate offices.
Financial information about each of these operating segments is reported to the CODM on a monthly basis. The mines in each of the reporting segments share similar economic characteristics and have been aggregated accordingly.

As at and for the three months ended September 30, 2023TurkiyeCanadaGreeceRomania*OtherTotal
Earnings and loss information
Revenue$114,264 $79,123 $51,868 $— $— $245,255 
Production costs49,260 26,895 39,774 — — 115,929 
Depreciation and amortization30,181 18,190 14,612 — — 62,983 
Earnings (loss) from mine operations$34,823 $34,038 $(2,518)$— $— $66,343 
Other significant items of income and expense
Write-down of assets$1,087 $— $1,837 $— $— $2,924 
Exploration and evaluation expenses2,367 3,496 181 — 244 6,288 
Mine standby costs— 388 2,994 — — 3,382 
Income tax expense (recovery)40,765 6,599 5,095 — (475)51,984 
Loss from discontinued operations, net of tax attributable to shareholders of the Company— — — (1,441)— (1,441)
Capital expenditure information
Additions to property, plant and equipment during the period**$29,166 $26,389 $33,327 $— $2,252 $91,134 
Capitalized interest (Note 11(b))
— — 5,441 — — 5,441 
* Discontinued Operations (Note 4).
** Presented on an accrual basis, excludes asset retirement adjustments. Excludes capital expenditure at discontinued operations.
(20)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

19. Segment information (continued)
As at and for the three months ended September 30, 2022TurkiyeCanadaGreeceRomania*OtherTotal
Earnings and loss information
Revenue$100,006 $73,093 $44,599 $— $— $217,698 
Production costs50,385 28,835 44,266 — — 123,486 
Depreciation and amortization32,807 16,752 16,865 — — 66,424 
Earnings (loss) from mine operations$16,814 $27,506 $(16,532)$— $— $27,788 
Other significant items of income and expense
Write-down of assets$355 $— $54 $— $681 $1,090 
Exploration and evaluation expenses1,000 2,551 159 — 739 4,449 
Mine standby costs— 224 7,741 — — 7,965 
Income tax expense 11,762 3,277 11,413 — — 26,452 
Loss from discontinued operations, net of tax attributable to shareholders of the Company— — — (26,231)— (26,231)
Capital expenditure information
Additions to property, plant and equipment during the period**$29,995 $22,160 $19,918 $— $1,031 $73,104 
* Discontinued Operations (Note 4).
** Presented on an accrual basis, excludes asset retirement adjustments. Excludes capital expenditure at discontinued operations.



















(21)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

19. Segment information (continued)
As at and for the nine months ended September 30, 2023TurkiyeCanadaGreeceRomania*OtherTotal
Earnings and loss information
Revenue$335,785 $231,374 $137,305 $— $— $704,464 
Production costs145,357 84,402 114,416 — — 344,175 
Depreciation and amortization89,687 55,693 44,042 — — 189,422 
Earnings (loss) from mine operations$100,741 $91,279 $(21,153)$— $— $170,867 
Other significant items of income and expense
Write-down of assets$1,387 $— $3,585 $— $— $4,972 
Exploration and evaluation expenses6,537 8,375 520 — 1,326 16,758 
Mine standby costs— 2,416 9,583 — — 11,999 
Income tax expense (recovery)87,420 19,009 (1,191)— (1,657)103,581 
Loss from discontinued operations, net of tax attributable to shareholders of the Company— — — (2,154)— (2,154)
Capital expenditure information
Additions to property, plant and equipment during the period**$80,661 $67,884 $118,220 $— $7,190 $273,955 
Capitalized interest (Note 11(b))
— — 10,569 — — 10,569 
Information about assets and liabilities
Property, plant and equipment$802,164 $721,900 $2,135,046 $— $14,081 $3,673,191 
Goodwill— 92,591 — — — 92,591 
Debt$— $— $99,891 $— $496,612 $596,503 
* Discontinued Operations (Note 4).
** Presented on an accrual basis, excludes asset retirement adjustments. Excludes capital expenditure at discontinued operations.
(22)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2023 and 2022
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

19. Segment information (continued)
As at and for the nine months ended September 30, 2022TurkiyeCanadaGreeceRomania*OtherTotal
Earnings and loss information
Revenue$290,309 $222,985 $112,523 $— $— $625,817 
Production costs143,107 87,487 106,768 — — 337,362 
Depreciation and amortization83,701 51,766 38,626 — — 174,093 
Earnings (loss) from mine operations$63,501 $83,732 $(32,871)$— $— $114,362 
Other significant items of income and expense
Write-down (recovery) of assets$24,361 $— $(1,499)$— $681 $23,543 
Exploration and evaluation expenses2,438 8,115 540 — 1,729 12,822 
Mine standby costs—