ELDORADO GOLD CORP TSX: ELD NYSE: EGO
VANCOUVER, Oct. 27, 2016 /PRNewswire/ - Eldorado Gold Corporation, ("Eldorado" or "the Company") today reported the Company's financial and operational results for the third quarter ended September 30, 2016.
Third Quarter Summary (including discontinued operations)
-- Gold production totaled 117,782 ounces (2015: 183,226 ounces).
-- Average cash costs of $566 per ounce; all-in sustaining cash costs
averaged $890 per ounce.
-- Revenues totaled $156.0 million on sales of 116,882 ounces of gold.
-- Average realized price of $1,335 per ounce of gold.
-- Profit attributable to shareholders was $20.7 million or $0.03 per share
(2015: loss of $96.1 million or $0.13 per share).
-- Cash flow generated cash from operating activities of continuing
operations before changes in non-cash working capital of $40.5 million.
-- Total liquidity at quarter-end of $652.4 million, including $412.4
million in cash, cash equivalents and term deposits, and $240.0 million
in undrawn lines of credit. Cash of $42.8 million reported under
"Assets held for sale" in the balance sheet is included in the cash
figure above.
-- Hosted the inaugural Investor and Analyst day, outlining plans and
guidance for the portfolio through 2020.
-- Exploration highlights from Serbia, Brazil and Romania.
-- 2016 guidance of 495,000 ounces of gold at all-in sustaining costs of
$915 per ounce. This reflects the completed sale of the Jinfeng mine in
September and the planned completion of the sale of the White Mountain
and Tanjianshan mines by mid-November.
-- Board appointment of Dr. George Albino post quarter-end.
"Our Company has undergone a significant amount of change over the last 12 months with the sale of the Chinese assets," stated Paul Wright, President and Chief Executive Officer of Eldorado Gold. "Our business and growth plan, as presented at the Investor and Analyst Day in September, is on track and we are confident that the Company will be transformed over the next three years as we bring online our portfolio of long lived, low cost assets."
Throughout this press release we
use cash operating cost per
ounce, total cash costs per
ounce, all-in sustaining cost
per ounce, gross profit from
gold mining operations, adjusted
net earnings and cash flow from
operating activities before
changes in non-cash working
capital as additional measures
of Company performance. These
are non IFRS measures. Please
see our MD&A for an explanation
and discussion of these non IFRS
measures. All dollar amounts in
US$, unless stated otherwise.
Review of Financial Results
Continuing Operations
Summarized
financial
results from
continuing
operations-
millions,
except where
noted 3 months ended Sept 30, 9 months ended Sept 30,
----------------------- -----------------------
2016 2015 2016 2015
---- ---- ---- ----
Revenues $116.2 $112.4 $318.0 $370.1
-------- ------ ------ ------ ------
Gold revenues $98.4 $107.2 $287.2 $340.8
------------- ----- ------ ------ ------
Gold sold
(ounces) 73,740 95,913 226,346 289,747
--------- ------ ------ ------- -------
Average
realized gold
price (per
ounce) $1,334 $1,118 $1,269 $1,176
-------------- ------ ------ ------ ------
Cash operating
costs (per
ounce sold) $468 $527 $492 $542
-------------- ---- ---- ---- ----
Total cash
cost (per
ounce sold) $486 $539 $509 $557
------------ ---- ---- ---- ----
All-in
sustaining
cash cost
(per ounce
sold) $777 $787 $816 $787
----------- ---- ---- ---- ----
Gross profit
from gold
mining
operations $45.8 $35.0 $119.2 $123.2
------------ ----- ----- ------ ------
Including Discontinued Operations
Summarized
financial
results
including
discontinued
operations-
millions,
except where
noted 3 months ended Sept 30, 9 months ended Sept 30,
----------------------- -----------------------
2016 2015 2016 2015
---- ---- ---- ----
Gold revenues $156.0 $206.2 $478.6 $634.4
------------- ------ ------ ------ ------
Gold sold
(ounces) 116,882 182,124 378,439 534,000
--------- ------- ------- ------- -------
Average
realized gold
price (per
ounce) $1,335 $1,132 $1,265 $1,188
-------------- ------ ------ ------ ------
Cash operating
costs (per
ounce sold) $566 $552 $593 $547
-------------- ---- ---- ---- ----
Total cash
cost (per
ounce sold) $607 $609 $640 $601
------------ ---- ---- ---- ----
All-in
sustaining
cash cost
(per ounce
sold) $890 $835 $904 $819
----------- ---- ---- ---- ----
Gross profit
from gold
mining
operations $64.6 $53.1 $159.2 $191.7
------------ ----- ----- ------ ------
Adjusted net
earnings/
(loss) $33.5 ($4.0) $44.6 $32.5
------------ ----- ----- ----- -----
Net profit
(loss)
attributable
to
shareholders
of the
Company $20.7 ($96.1) ($311.6) ($302.9)
------------- ----- ------ ------- -------
Earnings
(loss) per
share
attributable
to
shareholders
of the
Company -
Basic (per
share) $0.03 ($0.13) ($0.43) ($0.42)
------------- ----- ------ ------ ------
Earnings
(loss) per
share
attributable
to
shareholders
of the
Company -
Diluted (per
share) $0.03 ($0.13) ($0.43) ($0.42)
------------- ----- ------ ------ ------
Profit attributable to shareholders of the Company was $20.7 million (or $0.03 per share) for the quarter compared with a loss of $96.1 million (or $0.13 per share) in the third quarter of 2015. The Company recorded non-cash charges to income tax expense of $84.4 million during the third quarter of 2015 mostly related to a change in the corporate income tax rate in Greece and the impact of foreign exchange movements. The loss reported in 2015 was also impacted by mine standby costs in Greece of $7.0 million.
Gross profit from mining operations, including discontinued operations, increased year over year. While gold sales volumes fell, gross profit margins increased. The average realized price of gold increased $203 per ounce. In addition, at Jinfeng and White Mountain, gross margins were higher year over year partly due to the suspension of depreciation, depletion and amortization expense, as a result of the application of IFRS 5 - "Non-current assets held for sale and discontinued operations", from the date the assets and liabilities were classified as discontinued.
Gold Operations Update
TURKEY
Kisladag
Gold production of 49,270 ounces at Kisladag was lower year on year as a result of longer leach cycles caused by higher leach pad lifts and lower grade ore placed on the leach pad earlier in 2016 (2015: 69,672). The increase in average treated head grade in the second and third quarters has been reflected in a doubling of the daily gold adsorption rate from the beginning of September through mid-October. During the fourth quarter, the installation of extra carbon column sets is underway to increase adsorption capacity. As a result the Company expects fourth quarter gold production to return to levels achieved in 2015. Cash operating costs per ounce decreased year on year due to higher gold grades, and reduced waste mining. Capital expenditures for the quarter of $7.9 million included costs for capitalized waste stripping and sustaining construction activities.
Efemcukuru
Gold production of 24,229 ounces for the quarter at Efemcukuru was lower year on year due to lower average treated head grade (2015: 27,123). An increase in cash operating costs to $554 per ounce was mainly driven by lower head grades. Capital expenditures of $4.7 million included underground development, mine equipment overhauls, and process and waste rock/tailings facilities construction projects.
CHINA
Tanjianshan
Gold production of 10,401 ounces at Tanjianshan during the quarter was lower year on year due to a decrease in tonnes mined from the Jinlonggou pit, but supplemented by ore from low grade stockpiles (2015: 29,055). An unplanned mill shutdown due to repairs to a cracked mill shell also impacted quarterly production. Cash operating costs of $797 per ounce were higher year on year as a result of lower production.
Jinfeng
Reported gold production at Jinfeng of 19,907 ounces reflects production through September 6, 2016, the date of closing of the Company's interest in Jinfeng.
White Mountain
Gold production of 13,975 ounces at White Mountain during the quarter was lower year over year due to lower average treated head grade and reduced average recovery rates (2015: 16,359). Cash operating costs of $811 per ounce were higher driven by lower gold production. Capital expenditures of $1.4 million for the quarter included underground development, tailings dam lift construction, and sustaining capital projects within the processing plant.
Gold Projects Update
TURKEY
Kisladag Expansion
Work is expected to commence in the fourth quarter.
GREECE
Olympias
During the quarter, 90% of the internal steelwork for the Phase II crusher building was erected. Installation focused on the crushers, chutes, screens and the control room. Work completed inside the main production building included the erection of steelwork, and the placement of tanks, pumps and other equipment onto their foundations. The first flotation tanks were lifted into place, the ball mill foundation was completed, and all other concrete pertaining to the process plant were completed. The regrind and thickening areas have also progressed well and are nearly complete.
Total capital expenditure for the quarter was $41.7 million, including $18.9 million on the Phase II mill construction, $13.9 million on mine development and other surface capital works, and $8.9 million on Kokkinolakas dam construction.
Skouries
Earthworks, building erection and site clearing all progressed during the quarter. Targeted work included road and stockpile dome embankments, excavation work, and piling of production building column foundations and tailings thickener area retaining wall. Basic engineering was also underway for the integrated waste management facility. Total capital expenditure for the quarter was $13.2 million.
Perama Hill
The project remained on care and maintenance. No project development activities took place during the quarter.
ROMANIA
Certej
Engineering optimization work during the quarter focused on the metallurgical process, water and waste management, and site infrastructure to support ongoing permitting activities. Development continued onsite with quarry operation, aggregate production and onsite road and water management construction. Offsite infrastructure work continued on upgrading the main water line and advancing permitting of the access road and power supply. A total of $4.0 million was spent at Certej during the quarter, including land acquisition.
BRAZIL
Tocantinzinho
Engineering to support ongoing permitting activities advanced during the quarter, including design of the power line, access road, mine and waste management. Tenders for the basic engineering of the process facilities were received and assessed. Site activity during the quarter included geotechnical drilling at the plant and infrastructure areas, maintenance work on the access road and an increase in security facilities. Capital costs incurred at Tocantinzinho during the quarter totalled $2.8 million.
CHINA
Eastern Dragon
During the quarter, Eastern Dragon remained on care and maintenance as the Company continued to advance the permitting process. The Mining License application has been accepted by the Ministry of Land and Resources. Work continued on the forestry and land permit submittal, with submission expected during the fourth quarter.
Exploration Review
During the quarter 14,470 metres of exploration drilling were completed at the Company's operations and exploration projects. Year-to-date exploration expenditures total $16.6 million.
Greece
In Greece, exploration activities focused on the Stratoni corridor. Development of the hanging wall exploration crosscut and drift at Mavres Petres began in July and advanced 105 metres during the quarter. The first hanging wall drill stations are estimated to be completed late in the fourth quarter.
Romania
In August, the Company was granted the exploration license for the Bolcana porphyry project in the Certej district. Permitting for fourth quarter drilling is underway. Drilling during the third quarter at the nearby Sacaramb project tested the southerly extensions to historically mined veins in the southern part of the deposit.
Turkey
In Turkey, reconnaissance level exploration continued, focused mainly on tertiary volcanic centers in the western part of the country.
Brazil
In Brazil, Eldorado signed option agreements with Votorantim Metais covering in excess of 3,750 square kilometres of licenses and license applications in Minas Gerais and Pernambuco states. The agreement provides Eldorado the ability to earn up to 70% of any of the licenses on delivery of a bankable feasibility study. Drilling commenced late in the quarter on the licenses at the Vulture showing in Pernambuco state.
China
In China, exploration drilling continued at both the White Mountain and Tanjianshan operations. At White Mountain, underground drilling tested step outs of the North and Far North zones, and surface drill holes targeted potential southwest extensions to the deposit. At Tanjianshan, drilling was conducted at the Xijingou deposit.
Serbia
The Company continued drilling at the KMC skarn project in Serbia. The first hole completed at the Shanac target intersected 298 metres grading 0.78 grams per tonne gold and 0.14% copper within magnetite-bearing skarn. Drilling will continue through most of the fourth quarter at both the Shanac and Copper Canyon/Gradina zones.
2016 Outlook
New guidance for 2016 gold production takes into account discontinued operations, uses the actual September 6, 2016 closing date for the Jinfeng transaction, and assumes a mid-November 2016 closing date for White Mountain, Tanjianshan and Eastern Dragon.
Full year production is forecast to be 495,000 ounces of gold with average cash costs for commercial production of $575 per ounce and all-in sustaining cash costs of $915 per ounce. Previous guidance (that included all operations for all of 2016) was production of 570,000 ounces of gold at average cash costs of $595 per ounce and all-in sustaining cash costs of $930 per ounce.
Capital spending is forecast to be $80.0 million in sustaining capital and $230.0 million in new project development capital compared with previous guidance of $95.0 million and $250.0 million respectively. Ounce production, sustaining capital spending and development capital spending have all been reduced due to the sale of the Chinese assets.
Board of Directors Update
The Board of Directors is pleased to announce that it has appointed Dr. George Albino as a new director following a search process conducted by the Corporate Governance and Nominating Committee of the Board.
Dr. George Albino was appointed to the Board of Directors on October 27, 2016. Dr. Albino has over 35 years of experience in mining and finance, having been a geologist for 18 years and as a highly-ranked sell side analyst covering mining (principally gold) stocks for 19 years. As a geologist he worked in industry for a variety of producing and development companies in exploration, operating, and corporate roles, as well as spending time in academia and as a government research geologist. While an analyst he worked for several global banks as well as Canadian independent brokerages. He holds B.A.Sc., M.S., and Ph.D. degrees in geology from Queen's University, Colorado State University, and University of Western Ontario, respectively.
Conference Call
A conference call to discuss the details of the Company's Third Quarter 2016 Results will be held by senior management on October 28, 2016 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
Conference Call Details Replay (available
until November
11, 2016)
Date: Friday October 28,
2016 Toronto: 416 849 0833
Time: 8:30 am PT (11:30 am
ET) Toll Free: 1 855 859 2056
Dial in: 647 427 7450 Pass code: 897 162 76
Toll free: 1 888 231 8191
About Eldorado Gold
Eldorado is a leading low cost gold producer with mining, development and exploration operations in Turkey, China, Greece, Romania, Serbia and Brazil. The Company's success to date is based on a low cost strategy, a highly skilled and dedicated workforce, safe and responsible operations, and long-term partnerships with the communities where it operates. Eldorado's common shares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).
Certain of the statements made herein may contain 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, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "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 herein include, but are not limited to the Company's 2016 Third Quarter Results.
Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. We have made certain assumptions about the forward-looking statements and information, including assumptions about the political and economic environment that we operate in, the future price of commodities and anticipated costs and expenses. 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. Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: political and economic environment, gold price volatility; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; mining operational and development risk; litigation risks; regulatory environment and restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment; risks related to completing the Chinese monetization process and impact of the Jinfeng, White Mountain, Tanjianshan and Eastern Dragon sales on the Company; currency fluctuations; speculative nature of gold exploration; global economic climate; dilution; share price volatility; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property, as well as those factors discussed in the sections entitled "Forward-Looking Statements" and "Risk Factors" in the Company's Annual Information Form & Form 40-F dated March 30, 2016.
There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada and the U.S.
Dr. Peter Lewis, P. Geo., Vice President, Exploration at Eldorado, is the Qualified Person for the technical disclosure of exploration results in this press release. Drillhole results quoted represent mineralized widths in drillholes, which may be greater than the true widths of mineralized zones. Assay results reported in this release for the KMC Project in Serbia were prepared and analyzed for gold by fire assay at ALS laboratories in Romania. QAQC samples were inserted into each batch at a rate of 2 standards, 2 duplicates and variable numbers of blanks per batch.
Q3 2016 Gold Production Highlights (in US$)
Third Third YTD YTD
Quarter Quarter 2016 2015
2016 2015
---- ----
Gold Production
(1)
---------------
Ounces Sold 116,882 182,124 378,439 534,000
Ounces
Produced(2) 117,782 183,226 382,881 553,800
Cash Operating
Cost ($/oz)3,5 566 552 593 547
Total Cash Cost
($/oz)4,5 607 609 640 601
Realized Price
($/oz -sold) 1,335 1,132 1,265 1,188
-------------- ----- ----- ----- -----
Ki ladag Mine,
Turkey
--------------
Ounces Sold 49,247 69,514 151,868 216,497
Ounces Produced 49,270 69,672 151,570 216,706
Tonnes to Pad 4,345,162 5,291,983 12,648,337 14,391,185
Grade (grams /
tonne) 0.91 0.75 0.82 0.70
Cash Operating
Cost ($/oz)5 425 548 481 553
Total Cash Cost
($/oz)4,5 441 558 498 568
--------------- --- --- --- ---
Efemcukuru Mine,
Turkey
----------------
Ounces Sold 24,493 26,399 74,478 73,250
Ounces Produced 24,229 27,123 75,151 76,048
Tonnes Milled 116,182 116,723 352,713 335,993
Grade (grams /
tonne) 7.32 8.18 7.41 8.03
Cash Operating
Cost ($/oz)5 554 472 514 507
Total Cash Cost
($/oz)4,5 578 487 533 524
--------------- --- --- --- ---
Tanjianshan Mine,
China
-----------------
Ounces Sold 10,401 37,254 38,354 80,755
Ounces Produced 10,401 29,055 38,354 80,755
Tonnes Milled 207,439 272,314 748,727 803,805
Grade (grams /
tonne) 1.95 3.28 1.93 3.38
Cash Operating
Cost ($/oz)5 797 450 829 435
Total Cash Cost
($/oz)4,5 909 612 992 602
--------------- --- --- --- ---
Jinfeng Mine,
China 6
-------------
Ounces Sold 18,766 32,598 66,902 107,573
Ounces Produced 19,907 38,028 68,195 112,948
Tonnes Milled 199,112 339,300 766,697 990,744
Grade (grams /
tonne) 3.55 4.09 3.32 4.13
Cash Operating
Cost ($/oz) 5 639 639 705 566
Total Cash Cost
($/oz) 4,5 733 719 791 651
--------------- --- --- --- ---
White Mountain
Mine, China
--------------
Ounces Sold 13,975 16,359 46,837 55,925
Ounces Produced 13,975 16,359 46,837 55,925
Tonnes Milled 216,783 214,025 621,867 631,385
Grade (grams /
tonne) 2.47 2.85 2.75 3.12
Cash Operating
Cost ($/oz) 5 811 761 725 699
Total Cash Cost
($/oz) 4,5 851 799 765 738
--------------- --- --- --- ---
Olympias, Greece
----------------
Ounces Sold - - - -
Ounces
Produced(2) - 2,989 2,774 11,418
Tonnes Milled - 119,315 87,350 423,248
Grade (grams /
tonne) - 1.02 2.47 1.89
Cash Operating
Cost ($/oz)5 - - - -
Total Cash Cost
($/oz)4,5 - - - -
--------------- --- --- --- ---
(1) Gold production includes both
continuing and discontinued
operations.
(2) Ounces produced include production
from tailings retreatment at
Olympias.
(3) Cost figures calculated in
accordance with the Gold Institute
Standard.
4 Cash operating costs, plus
royalties and the cost of off-
site administration.
Cash operating costs and total cash
costs are non-IFRS measures.
Please see our MD&A for an
explanation and discussion of
5 these.
6 Figures shown for Q3 and YTD 2016
reflect the sale of Jinfeng on
September 6, 2016.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars)
September 30, 2016 December 31, 2015
$ $
ASSETS
Current assets
Cash and cash equivalents 364,298 288,189
Term deposits 5,305 4,382
Restricted cash 255 248
Marketable securities 39,497 18,331
Accounts receivable and
other 61,553 85,468
Inventories 120,662 175,626
Assets held for sale 5 822,664 -
--- ---
1,414,234 572,244
Other assets 86,165 83,147
Defined benefit
pension plan 12,369 10,897
Property, plant
and equipment 3,567,473 4,747,759
Goodwill - 50,276
--- ------
5,080,241 5,464,323
========= =========
LIABILITIES &
EQUITY
Current
liabilities
Accounts payable and accrued
liabilities 119,351 236,819
Current debt 6 10,000 -
Liabilities held for sale 5 173,223 -
--- ---
302,574 236,819
Debt 6 591,040 589,395
Other non-current
liability 7,087 6,166
Asset retirement
obligations 79,649 102,636
Deferred income
tax liabilities 425,539 607,871
1,405,889 1,542,887
--------- ---------
Equity
Share capital 2,819,101 5,319,101
Treasury stock (7,794) (10,211)
Contributed
surplus 2,604,195 47,236
Accumulated other
comprehensive
loss 3,294 (20,572)
Deficit (1,895,475) (1,583,873)
---------- ----------
Total equity
attributable to
shareholders of
the Company 3,523,321 3,751,681
Attributable to
non-controlling
interests 151,031 169,755
3,674,352 3,921,436
--------- ---------
5,080,241 5,464,323
========= =========
Approved on behalf of the Board of Directors
(Signed) John Webster Director
(Signed) Paul N. Wright Director
For accompanying notes, please see the consolidated financial statements.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Income Statements
(Expressed in thousands of U.S. dollars except per share amounts)
Three months ended Nine months ended
September 30, September 30,
------------- -------------
Note (restated)* (restated)*
2016 2015 2016 2015
Continuing operations: $ $ $ $
Revenue
Metal sales 116,231 112,372 317,986 370,106
Cost of sales
Production costs 50,498 58,273 144,632 192,220
Inventory write-down
(reversal) (298) 1,595 - 7,806
Depreciation and amortization 16,908 22,528 53,427 65,117
------ ------
67,108 82,396 198,059 265,143
Gross profit 49,123 29,976 119,927 104,963
Exploration expenses 4,969 4,319 10,243 9,985
Mine standby costs
(recovery) (415) 7,027 14,962 8,439
General and
administrative expenses 9,282 9,538 29,437 32,591
Defined benefit pension
plan expense 292 406 872 1,266
Share based payments 2,116 2,802 8,516 12,977
Impairment loss on
property, plant and
equipment - - - 254,910
Other write-down of
assets 164 6,891 643 6,891
Foreign exchange loss
(gain) 1,450 4,014 (1,703) 11,226
----- ----- ------ ------
Operating profit (loss) 31,265 (5,021) 56,957 (233,322)
Loss on disposal of
assets 221 2 418 3
Loss on marketable
securities and other
investments - - 4,881 -
Other income (1,018) (1,282) (695) (5,466)
Asset retirement
obligation accretion 449 483 1,346 1,448
Interest and financing
costs 758 3,323 10,536 12,756
--- ----- ------ ------
Profit (loss) from
continuing operations
before income tax 30,855 (7,547) 40,471 (242,063)
Income tax expense 12,653 89,887 23,168 84,238
------ ------ ------ ------
Profit (loss) from
continuing operations 18,202 (97,434) 17,303 (326,301)
Profit (loss) from
discontinued operations 5 3,745 1,796 (329,987) 26,565
----- ----- -------- ------
Profit (loss) for the
period 21,947 (95,638) (312,684) (299,736)
------ ------- -------- --------
Attributable to:
Shareholders of the
Company 20,740 (96,091) (311,602) (302,935)
Non-controlling interests 1,207 453 (1,082) 3,199
----- --- ------ -----
Profit (loss) for the
period 21,947 (95,638) (312,684) (299,736)
====== ======= ======== ========
Profit (loss)
attributable to
shareholders of the
Company
Continuing operations 18,453 (96,439) 19,356 (324,317)
Discontinued operations 2,287 348 (330,958) 21,382
----- --- -------- ------
20,740 (96,091) (311,602) (302,935)
====== ======= ======== ========
Weighted average number
of shares outstanding
Basic 716,587 716,587 716,587 716,585
Diluted 716,596 716,587 716,594 716,585
Earnings (loss) per share
attributable to
shareholders
of the Company:
Basic earnings (loss) per
share 0.03 (0.13) (0.43) (0.42)
Diluted earnings (loss)
per share 0.03 (0.13) (0.43) (0.42)
Earnings (loss) per share
attributable to
shareholders of the
Company -Continuing
operations:
Basic earnings (loss) per
share 0.03 (0.13) 0.03 (0.45)
Diluted earnings (loss)
per share 0.03 (0.13) 0.03 (0.45)
* See note 5
For accompanying notes, please see the consolidated financial statements.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Statements of Comprehensive Income
(Expressed in thousands of U.S. dollars)
Three months ended Nine months ended
September 30, September 30,
------------- -------------
2016 2015 2016 2015
$ $ $ $
Profit (loss) for the
period 21,947 (95,638) (312,684) (299,736)
Other comprehensive
income (loss):
Change in fair value of
available-for-sale
financial assets, net
of income
tax (recovery) of $(267),
$nil, $2,875 and $nil (1,683) (5,451) 19,411 (4,542)
Transfer of realized
loss on disposal of
available-for-sale
financial assets - - 4,901 -
Actuarial losses on
severance obligation (324) - (446) -
Total other
comprehensive income
(loss) for the period (2,007) (5,451) 23,866 (4,542)
------ ------ ------ ------
Total comprehensive
income (loss) for the
period 19,940 (101,089) (288,818) (304,278)
====== ======== ======== ========
Attributable to:
Shareholders of the
Company 18,733 (101,542) (287,736) (307,477)
Non-controlling
interests 1,207 453 (1,082) 3,199
19,940 (101,089) (288,818) (304,278)
====== ======== ======== ========
For accompanying notes, please see the consolidated financial statements.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Statements of Cash Flows
(Expressed in thousands of U.S. dollars)
Three months ended Nine months ended
September 30, September 30,
------------- -------------
(restated)* (restated)*
Note 2016 2015 2016 2015
$ $ $ $
Cash flows generated from (used
in):
Operating activities
Profit (loss) for the period from
continuing operations 18,202 (97,434) 17,303 (326,301)
Items not affecting cash:
Asset retirement obligation
accretion 449 483 1,346 1,448
Depreciation and amortization 16,908 22,528 53,427 65,117
Unrealized foreign exchange loss
(gain) (70) 1,648 2,352 1,797
Deferred income tax expense
(recovery) 2,191 78,871 (10,371) 52,036
Loss on disposal of assets 221 2 418 3
Other write-down of assets 164 6,891 643 6,891
Impairment loss on property, plant
and equipment - - - 254,910
Loss on marketable securities and
other investments - - 4,881 -
Share based payments 2,116 2,802 8,516 12,977
Defined benefit pension plan
expense 292 406 872 1,266
--- --- --- -----
40,473 16,197 79,387 70,144
Property reclamation payments (518) (324) (1,412) (416)
Changes in non-
cash working
capital 10 39,791 6,178 (19,834) 79,578
--- ------ -------
Net cash provided (used) by
operating activities of continuing
operations 79,746 22,051 58,141 149,306
Net cash provided (used) by
operating activities of
discontinued operations (19,862) 30,509 6,671 32,192
Investing activities
Net cash paid on acquisition of
subsidiary (603) - (603) -
Purchase of property, plant and
equipment (85,581) (78,744) (206,469) (222,558)
Proceeds from the sale of property,
plant and equipment 578 1,217 1,335 1,323
Net proceeds from
sale of assets
held for sale 5 264,697 - 264,697 -
Proceeds (loss) on production from
tailings retreatment (170) 3,836 3,708 13,938
Purchase of marketable securities - (11,079) (2,526) (16,312)
Proceeds from the sale of
marketable securities - - 3,665 -
Redemption of (investment in) term
deposits 12 (752) (923) (1,654)
Decrease (increase) in restricted
cash (2) (1) (8) 590
--- --- --- ---
Net cash provided (used) by
investing activities of continuing
operations 178,931 (85,523) 62,876 (224,673)
Net cash used by investing
activities of discontinued
operations (9,244) (15,197) (18,817) (37,891)
Financing activities
Issuance of common shares for cash - - - 121
Dividend paid to shareholders - (5,489) - (11,257)
Purchase of treasury stock - - - (2,394)
Long-term and bank debt proceeds 40,000 - 70,000 -
Long-term and bank debt repayments (60,000) - (60,000) -
------- --- ------- ---
Net cash provided (used) by
financing activities of continuing
operations (20,000) (5,489) 10,000 (13,530)
Net cash used by financing
activities of discontinued
operations - (8,178) - (19,619)
Net increase (decrease) in cash and
cash equivalents 209,571 (61,827) 118,871 (114,215)
Cash and cash equivalents -
beginning of period 197,489 446,126 288,189 498,514
------- ------- ------- -------
Cash and cash equivalents -end of
period 407,060 384,299 407,060 384,299
Less cash and cash equivalents held
for sale -end of period (42,762) - (42,762) -
------- --- ------- ---
Cash and cash equivalents excluding
held for sale- end of period 364,298 384,299 364,298 384,299
======= ======= ======= =======
* See note 5
For accompanying notes, please see the consolidated financial statements.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Statements of Changes in Equity
(Expressed in thousands of U.S. dollars)
Three months ended Nine months ended
September 30, September 30,
------------- -------------
Note 2016 2015 2016 2015
$ $ $ $
Share capital
Balance beginning of period 2,819,101 5,319,101 5,319,101 5,318,950
Shares issued upon exercise of
share options, for cash - - - 121
Transfer of contributed surplus on
exercise of options - - - 30
Capital reduction 7 - - (2,500,000) -
--- --- ---
Balance end of period 2,819,101 5,319,101 2,819,101 5,319,101
--------- --------- --------- ---------
Treasury stock
Balance beginning of period (8,015) (12,005) (10,211) (12,949)
Purchase of treasury stock - - - (2,394)
Shares redeemed upon exercise of
restricted share units 221 1,556 2,417 4,894
Balance end of period (7,794) (10,449) (7,794) (10,449)
------ ------- ------ -------
Contributed surplus
Balance beginning of period 2,602,027 44,540 47,236 38,430
Share based payments 2,389 3,041 7,892 13,282
Shares redeemed upon exercise of
restricted share units (221) (1,556) (2,417) (4,894)
Recognition of other current
liability related costs - (764) (1,416) (1,527)
Reversal of other current liability
and related costs - - 52,900 -
Transfer to share capital on
exercise of options - - - (30)
Capital reduction 7 - - 2,500,000 -
--- --- ---
Balance end of period 2,604,195 45,261 2,604,195 45,261
--------- ------ --------- ------
Accumulated other
comprehensive loss
Balance beginning of period 5,301 (17,218) (20,572) (18,127)
Other comprehensive gain (loss) for
the period (2,007) (5,451) 23,866 (4,542)
------ ------
Balance end of period 3,294 (22,669) 3,294 (22,669)
----- ------- ----- -------
Deficit
Balance beginning of period (1,916,215) (266,416) (1,583,873) (53,804)
Dividends paid - (5,489) - (11,257)
Profit (loss) attributable to
shareholders of the Company 20,740 (96,091) (311,602) (302,935)
Balance end of period (1,895,475) (367,996) (1,895,475) (367,996)
---------- -------- ---------- --------
Total equity attributable to
shareholders of the Company 3,523,321 4,963,248 3,523,321 4,963,248
--------- --------- --------- ---------
Non-controlling interests
Balance beginning of period 167,466 304,898 169,755 305,414
Profit (loss) attributable to non-
controlling interests 1,207 453 (1,082) 3,199
Dividends declared to non-
controlling interests - (5,634) - (8,896)
Decrease during the period 5 (17,642) - (17,642) -
Balance end of period 151,031 299,717 151,031 299,717
------- ------- ------- -------
Total equity 3,674,352 5,262,965 3,674,352 5,262,965
========= ========= ========= =========
For accompanying notes, please see the consolidated financial statements.
SOURCE Eldorado Gold Corporation
