TSX: ELD NYSE: EGO
VANCOUVER, July 28, 2016 /PRNewswire/ - Eldorado Gold
Corporation, ("Eldorado" or "the Company") is pleased to announce
the Company's financial and operational results for the second
quarter ended June 30, 2016.
Eldorado reported gold production
of 124,110 ounces (2015: 181,160 oz) at an average cash operating
cost of $607 per ounce (2015:
$569/oz). Adjusted net earnings
for the quarter was $11.7 million
($0.01 per share) compared to
adjusted net earnings of $17.0
million ($0.02 per share) in
2015.
"Quarterly production was in-line with internal plans and we are
expecting to produce a total of 570,000 ounces of gold at all in
sustaining cash costs of $930 per
ounce and cash costs of $595 per
ounce for the full year 2016," stated Paul
Wright, President and Chief Executive Officer of
Eldorado.
"Development work at Skouries is ramping up following the
Technical Study approval in early May. The Olympias Phase II
development continues on schedule and initial production is
expected in the first quarter 2017. I am also pleased to report
that during the quarter we announced the sale of our Chinese
assets, specifically the Jinfeng, White Mountain and Tanjianshan
mines, as well as the Eastern Dragon project. The two transactions,
expected to close in the third and fourth quarters, will result in
an even stronger balance sheet. This balance sheet will enable us
to re-invest in our high quality internal project pipeline and
provide long term growth for Eldorado."
Second Quarter 2016 Financial and Operational Highlights
(1)
- Gold production of 124,110 ounces.
- Gold revenues were $162.7
million on sales of 128,090 ounces of gold at an
average realized gold price of $1,270 per ounce.
- Liquidity of $422.8
million, including $202.8
million in cash, cash equivalents and term deposits, and
$220.0 million in unused lines of
credit.
- All-in sustaining cash costs averaged $933 per ounce; cash operating costs averaged
$607 per ounce.
- Announced agreements to sell the Chinese portfolio of assets to
two parties for a total of $900
million in cash, subject to regulatory and other approvals
and closing adjustments.
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.
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(1)
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Includes discontinued
operations
|
Review of Financial Results
Continuing
operations
|
|
|
|
|
|
|
|
|
|
Summarized financial results from
continuing
|
|
|
|
|
|
3 months ended June
30,
|
6 months ended June
30,
|
operations– millions, except where
noted
|
|
|
|
|
|
2016
|
2015
|
2016
|
2015
|
|
Revenues
|
|
|
|
|
|
$107.1
|
$124.6
|
$201.8
|
$257.7
|
|
Gold
revenues
|
|
|
|
|
|
$98.3
|
$114.7
|
$188.8
|
$233.7
|
|
Gold sold
(ounces)
|
|
|
|
|
|
77,623
|
96,209
|
152,606
|
193,834
|
|
Average realized gold price (per
ounce)
|
|
|
|
|
|
$1,267
|
$1,201
|
$1,237
|
$1,214
|
|
Cash operating costs (per ounce
sold)
|
|
|
|
|
|
$490
|
$561
|
$504
|
$549
|
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Total cash cost (per ounce
sold)
|
|
|
|
|
|
$505
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$577
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$521
|
$565
|
|
All-in sustaining cash cost (per ounce
sold)
|
|
|
|
|
|
$808
|
$797
|
$833
|
$799
|
|
Gross profit from gold mining
operations
|
|
|
|
|
|
$41.4
|
$39.7
|
$73.5
|
$88.2
|
Including discontinued
operations
|
|
|
Summarized financial results including
discontinued
|
3 months ended June
30,
|
6 months ended June
30,
|
operations– millions, except where
noted
|
2016
|
2015
|
2016
|
2015
|
|
Gold
revenues
|
$162.7
|
$204.2
|
$322.6
|
$428.2
|
|
Gold sold
(ounces)
|
128,090
|
170,056
|
261,557
|
351,876
|
|
Average realized gold price (per
ounce)
|
$1,270
|
$1,201
|
$1,233
|
$1,217
|
|
Cash operating costs (per ounce
sold)
|
$607
|
$569
|
$605
|
$545
|
|
Total cash cost (per ounce
sold)
|
$650
|
$618
|
$654
|
$597
|
|
All-in sustaining cash cost (per ounce
sold)
|
$933
|
$854
|
$908
|
$811
|
|
Gross profit from gold mining
operations
|
$55.5
|
$61.4
|
$96.6
|
$138.5
|
|
Adjusted net
earnings
|
$11.7
|
$17.0
|
$11.0
|
$36.5
|
|
Net profit (loss) attributable to shareholders of the
Company
|
($329.9)
|
($198.6)
|
($332.3)
|
($206.8)
|
|
Earnings (loss) per share attributable to
shareholders of the
Company – Basic (per
share)
|
($0.46)
|
($0.28)
|
($0.46)
|
($0.29)
|
|
Earnings (loss) per share attributable to
shareholders of the
Company – Diluted (per
share)
|
($0.46)
|
($0.28)
|
($0.46)
|
($0.29)
|
Loss attributable to shareholders of the Company was
$329.9 million (or $0.46 per share) for the quarter compared with a
loss of $198.6 million (or
$0.28 per share) in the second
quarter of 2015. During the quarter the Company recorded a post-tax
impairment loss of $339.0 million in
discontinued operations related to the Company's Chinese assets.
The loss reported during the second quarter of 2015 was mainly due
to an impairment loss in the amount of $214.1 million recorded against Certej. Adjusted
net earnings for the quarter were $11.7
million (or $0.01 per share)
compared with $17.0 million (or
$0.02 per share) in the second
quarter of 2015.
Gross profit from continuing gold mining operations increased
slightly year over year as the impact of lower sales volumes was
offset by higher gold prices and lower unit operating costs. Gold
sales volumes from continuing operations fell year over year due to
an anticipated decrease in gold production from Kisladag in
comparison with 2015. Kisladag's production was impacted by longer
leach cycles as a result of solution being applied to higher lifts.
Additionally, production during 2015 benefitted from significant
leach pad inventory draw down due to an increase in the solution
pumping and treatment capacity installed at the end of 2014. Cash
operating costs per ounce from continuing operations decreased year
over year due to lower cash operating costs at Kisladag. Mining
costs at Kisladag fell 44% as a result of a 64% drop in waste
stripping tonnes year over year.
Loss from discontinued operations was $339.4 million compared with a profit of
$10.0 million in the second quarter
of 2015. In addition to the $339.0
million impairment loss mentioned above, the loss from
discontinued operations included gross profit from gold mining
operations of $14.0 million (2015 -
$21.6 million), general and
administrative expenses of $10.5
million (2015 - $3.4 million),
and income tax expense of $2.8
million (2015 – $7.4
million).
Review and 2016 Outlook
Operations Update
Kisladag
Kisladag's gold production of 49,924
ounces during the quarter was impacted by longer leach cycles as a
result of solution being applied to higher lifts. Production during
2015 had also benefitted from significant leach pad inventory draw
down as a result of an increase in the solution pumping rate from
equipment installed at the end of 2014. Production is expected to
increase throughout the remainder of the year as leach cycles
benefit from lower lifts placed on new leach pad cells. Cash
operating costs decreased to $479 per
ounce due to lower mining costs and higher recovery rates.
Capital expenditures of $6.2
million for the quarter included costs for capitalized waste
stripping and sustaining construction activities.
Efemcukuru
Efemcukuru's gold production of
23,406 ounces during the quarter was lower year over year due to an
18% decrease in average treated head grade. Cash operating costs
increased to $509 per ounce and were
higher year over year due to lower head grade. Capital spending of
$7.2 million during the quarter
included underground development and mine mobile
equipment.
Tanjianshan
Tanjianshan's gold production of
13,900 ounces during the quarter was 45% lower year over year due
to a decrease in head grade and lower recovery rate. Cash operating
costs of $830 per ounce for the
quarter were 85% higher year over year due to lower gold
produced.
Subsequent to the quarter, Tanjianshan reported a crack in the
mill shell. It is expected that this will take 3-4 weeks to repair
by welding. During this period, any other shutdown works requiring
downtime will also be completed.
Jinfeng
Jinfeng's gold production of 22,353
ounces during the quarter was 42% lower year over year mainly as a
result of less ore milled and lower head grade, largely due to the
end of open pit mining in the second quarter of 2015. Cash costs of
$821 per ounce were higher year over
year due to lower gold produced.
Capital expenditures of $1.1
million for the quarter included underground development,
mining equipment and tailings dam improvements.
White Mountain
White Mountain's gold production
of 14,527 ounces during the quarter was 22% lower year over year
due to slightly reduced milled tonnage and lower feed grade. Cash
operating costs of $824 per ounce
were 9% higher, as a result of lower gold produced.
Capital expenditures of $2.0
million for the quarter included underground development,
exploration drilling, tailings dam construction, and sustaining
capital projects within the processing plant.
Stratoni
Concentrate production during the
quarter at Stratoni was higher year over year due to higher ore
tonnes processed and zinc head grades. Higher mine production and
plant throughput reflected commencement of a trial of continuous
underground operations in April, and reduced days lost to
stoppages.
Gold Projects Update
Olympias
At Olympias, progress was made in the
Phase II civil works and steelwork fabrication during the quarter.
Concrete demolition work was completed across the site, providing
access into additional areas for the civil contractor. Progress was
also made on the design and procurement of steel work with arrival
of the first deliveries for the crushing area in late June.
By the end of the quarter the majority of the long lead items
had arrived at site including a number of batches of flotation
cells. Plate work fabrication also commenced for the crushing and
main production buildings and the refurbishment of existing
equipment is proceeding to schedule. The key highlight of the
quarter was the awarding of the structural and mechanical
installation contracts, which were placed in late June and
mobilisation is due to begin early August.
Total capital expenditure for the quarter was $30.0 million.
Skouries
Skouries began the quarter on care and
maintenance, however activities recommenced late in the quarter
after receipt of the approval of the Updated Technical Study on
May 9, 2016. Construction teams began
to remobilize in early June, with the ramp up planned over the next
few months. Early activities will be limited to those that take
advantage of the summer weather window, including earthworks,
completion of building foundations and remaining tree cutting, as
well as enabling works for the tailings management facility access
road.
Total capital expenditures during the quarter were $5.9 million.
Perama Hill
No project development activities
took place during the quarter and the project remains on care and
maintenance.
Certej
During the quarter project development
focused on continued optimization work in the areas of the
metallurgical process, water and waste management and site
infrastructure. Development continued at the onsite quarry to
produce aggregates for onsite road construction and water
management facilities. Offsite infrastructure work was focused
on upgrading the main waterline. Higher level capital and operating
costs updates are underway in order to support ongoing permitting
activities.
A total of $3.6 million was spent
on Certej during the quarter.
Tocantinzinho
Site activity increased during
the quarter as a result of the beginning of the dry season. Work
included further geotechnical drilling at the plant and
infrastructure areas, maintenance work on the access road and an
increase in security facilities, primarily around the camp. Work on
the power line and access road focused on engineering design to
bring both project areas to a high level of basic design for
permitting and costing purposes. A similar approach has been
taken with the tailings management and mine rock storage facilities
to support ongoing permitting activities.
Capital costs incurred at Tocantinzinho during the quarter
totalled $0.9 million.
Eastern Dragon
During the quarter, Eastern
Dragon remained on care and maintenance as the Company continues to
advance the permitting process. The Mining License application has
been submitted. Work continued on amendments to the Feasibility
Report for forest usage.
Exploration Review
During the quarter 7,100 metres of exploration drilling were
completed at the Company's operations and exploration projects. The
2016 drilling programs have been affected by delays in obtaining
drilling permits. A total of $9.1
million was spent on exploration and evaluation
programs.
Greece
In
Greece, exploration activities
focused on the Stratoni corridor, and included geological mapping,
updating the three dimensional model for the Mavres Petres orebody
and relogging of historical drillcore. Development of the
hangingwall exploration drift, designed to provide access for
exploration drilling of extensions to the Mavres Petres orebody,
will commence in early July.
Romania
Fieldwork in Romania during the quarter focused on defining
epithermal targets for drilling peripheral to the Certej deposit.
Drilling permit applications are pending for several of these, and
we expect the work to commence in the third quarter.
Turkey
Exploration in Turkey concentrated on project generation
work, primarily to identify Tertiary volcanic centers in the
western part of the country similar to that which hosts the
Kisladag deposit. Detailed mapping and modelling work was also
completed at the Efemcukuru mine, targeting extensions to the
Kokarpinar and Kestane Beleni veins that are scheduled for drilling
later this year.
China
In
China, drilling was completed at
both the White Mountain and Tanjianshan operations. High-grade
extensions to the North and Far North ore zones continue to be
intersected at White Mountain, with notable intercepts including
11.8 metres grading 12.82 grams per tonne gold and 11.2 metres
grading 7.06 grams per tonne gold. Drilling at Tanjianshan
tested four areas, including the Xinjingou deposit which resulted
in intercepts of 3.7 metres grading 3.71 grams per tonne gold and
7.0 metres grading 3.73 grams per tonne gold.
Brazil
There
was no exploration activity during the quarter at Tocantinzinho in
Brazil. Reconnaissance-level
mapping and sampling programs were conducted over our licenses in
the Mara Rosa belt in Goias State, and new project areas in Minas
Gerais and northeastern Brazil.
Corporate Development
On April 26, 2016, the Company
announced that it had reached an agreement to sell its 82 percent
interest in the Company's Jinfeng mine to a wholly-owned subsidiary
of China National Gold Group for $300
million in cash, subject to certain conditions and closing
adjustments. On May 16, 2016, the
Company announced that it had reached an agreement to sell its
respective interests in the White Mountain and Tanjianshan mines,
and the Eastern Dragon development project to an affiliate of
Yintai Resources Co. Ltd. for $600
million in cash, subject to certain conditions and closing
adjustments. With the completion of these
two transactions the Company will have effectively
divested of its Chinese business segment. The transactions are
expected to close in the third to fourth quarter 2016 and are
subject to obtaining various regulatory and other approvals.
Outlook
Gold production for 2016, including discontinued operations is
forecast to be 570,000 ounces of gold with average cash costs for
commercial production of $595 per
ounce and all-in sustaining cash costs of $930 per ounce. Previous guidance was production
of 565,000 - 630,000 ounces at average cash costs of $585 to $620 per ounce and all-in sustaining cash
costs of $960 to $995 per ounce.
Capital spending is forecast to be $95.0
million in sustaining capital and $250.0 million in new project development capital
compared with previous guidance of $105.0
million and $235.0 million
respectively. The forecast for new project development capital is
higher than original guidance mainly due to projected higher
capital spending at Skouries following the approval of the updated
technical study during the quarter and the restart of construction
activities at site.
In Turkey, the Company's two
operating mines continue with no disruptions and all employees are
accounted for and safe. The Company is confident the country will
continue to provide conditions suitable for ongoing operations and
further investment.
Dividend
The Company suspended the cash payment of its semi-annual
dividend payment effective the first quarter of 2016. The decision
of the Board of Directors was made in view of the low gold price
and the terms and conditions of the Dividend Policy. The
Company continues to believe that a portion of funds from
operations should be shared with investors and looks forward to
resuming dividend payments in a stronger gold price
environment.
Conference Call
A conference call to discuss the details of the Company's Second
Quarter 2016 Results will be held by senior management on
July 29, 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 August 5,
2016)
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Date:
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Friday July 29,
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:
|
431 275 04
|
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 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 Second 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.
Qualified Person
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 are greater than the true widths of mineralized
zones. Assay results reported in this release for White
Mountain in China were determined
from diamond drill core samples that were crushed, split, and
pulverized at Eldorado's sample
preparation facilities at the White Mountain mine. Gold
analyses were completed by fire assay at the ALS Chemex facility in
Guangzhou. Field duplicate, and blank samples were inserted
prior to shipment to the preparation facility, certified standard
reference materials were inserted prior to shipment to the assay
laboratory, and results were regularly monitored to ensure the
quality of the data.
Q2 2016 Gold Production Highlights (in
US$)
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|
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Second Quarter 2016
|
Second Quarter 2015
|
YTD 2016
|
YTD 2015
|
Gold Production
1
|
|
|
|
|
|
|
|
|
Ounces
Sold
|
|
|
|
128,090
|
170,056
|
261.557
|
351,876
|
|
Ounces
Produced2
|
|
|
|
124,110
|
181,160
|
265,099
|
370,574
|
|
Cash Operating Cost
($/oz)3,5
|
|
|
|
607
|
569
|
605
|
545
|
|
Total Cash Cost
($/oz)4,5
|
|
|
|
650
|
618
|
654
|
597
|
|
Realized Price ($/oz -
sold)
|
|
|
|
1,270
|
1,201
|
1,233
|
1,217
|
Kişladağ Mine,
Turkey
|
|
|
|
|
|
|
|
|
Ounces
Sold
|
|
|
|
49,942
|
67,981
|
102,621
|
146,983
|
|
Ounces
Produced
|
|
|
|
49,924
|
67,778
|
102,300
|
147,034
|
|
Tonnes to
Pad
|
|
|
|
4,256,279
|
4,873,089
|
8,303,175
|
9,099,202
|
|
Grade (grams /
tonne)
|
|
|
|
0.81
|
0.66
|
0.77
|
0.68
|
|
Cash Operating Cost
($/oz)5
|
|
|
|
479
|
596
|
508
|
556
|
|
Total Cash Cost
($/oz)4,5
|
|
|
|
497
|
611
|
525
|
572
|
Efemçukuru Mine,
Turkey
|
|
|
|
|
|
|
|
|
Ounces
Sold
|
|
|
|
27,681
|
28,228
|
49,985
|
46,851
|
|
Ounces
Produced
|
|
|
|
23,406
|
27,705
|
50,922
|
48,925
|
|
Tonnes
Milled
|
|
|
|
120,044
|
113,851
|
236,531
|
219,270
|
|
Grade (grams /
tonne)
|
|
|
|
6.95
|
8.53
|
7.45
|
7.95
|
|
Cash Operating Cost
($/oz)5
|
|
|
|
509
|
477
|
495
|
527
|
|
Total Cash Cost
($/oz)4,5
|
|
|
|
521
|
494
|
512
|
544
|
Tanjianshan Mine,
China
|
|
|
|
|
|
|
|
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Ounces
Sold
|
|
|
|
13,900
|
16,875
|
27,953
|
43,501
|
|
Ounces
Produced
|
|
|
|
13,900
|
25,074
|
27,953
|
51,700
|
|
Tonnes
Milled
|
|
|
|
272,673
|
274,194
|
541,288
|
531,491
|
|
Grade (grams /
tonne)
|
|
|
|
2.01
|
3.29
|
1.92
|
3.42
|
|
Cash Operating Cost
($/oz)5
|
|
|
|
830
|
449
|
841
|
423
|
|
Total Cash Cost
($/oz)4,5
|
|
|
|
963
|
626
|
1,023
|
594
|
Jinfeng Mine,
China
|
|
|
|
|
|
|
|
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Ounces
Sold
|
|
|
|
22,040
|
38,289
|
48,136
|
74,975
|
|
Ounces
Produced
|
|
|
|
22,353
|
38,234
|
48,288
|
74,920
|
|
Tonnes
Milled
|
|
|
|
262,101
|
329,738
|
567,585
|
651,444
|
|
Grade (grams /
tonne)
|
|
|
|
3.22
|
4.21
|
3.24
|
4.15
|
|
Cash Operating Cost ($/oz)
5
|
|
|
|
736
|
551
|
731
|
535
|
|
Total Cash Cost ($/oz)
4,5
|
|
|
|
821
|
632
|
813
|
621
|
White Mountain Mine,
China
|
|
|
|
|
|
|
|
|
Ounces
Sold
|
|
|
|
14,527
|
18,683
|
32,862
|
39,566
|
|
Ounces
Produced
|
|
|
|
14,527
|
18,683
|
32,862
|
39,566
|
|
Tonnes
Milled
|
|
|
|
198,994
|
210,753
|
405,084
|
417,360
|
|
Grade (grams /
tonne)
|
|
|
|
2.54
|
2.97
|
2.90
|
3.26
|
|
Cash Operating Cost ($/oz)
5
|
|
|
|
824
|
757
|
689
|
674
|
|
Total Cash Cost ($/oz)
4,5
|
|
|
|
867
|
796
|
729
|
713
|
Olympias,
Greece
|
|
|
|
|
|
|
|
|
Ounces
Sold
|
|
|
|
-
|
-
|
-
|
-
|
|
Ounces
Produced2
|
|
|
|
-
|
3,686
|
2,774
|
8,429
|
|
Tonnes
Milled
|
|
|
|
-
|
146,893
|
87,350
|
303,933
|
|
Grade (grams /
tonne)
|
|
|
|
-
|
1.85
|
2.47
|
2.05
|
|
Cash Operating Cost
($/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.
|
5
|
Cash operating costs and
total cash costs are non-IFRS measures. Please see our
MD&A for an explanation and discussion of
these.
|
Eldorado Gold
Corporation
|
|
|
|
|
|
Unaudited Condensed
Consolidated Balance
Sheets
|
|
|
|
|
|
(Expressed in thousands of
U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
December 31,
2015
|
|
|
|
|
$
|
$
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
125,652
|
288,189
|
|
Term
deposits
|
|
|
|
5,317
|
4,382
|
|
Restricted
cash
|
|
|
|
253
|
248
|
|
Marketable
securities
|
|
|
|
41,445
|
18,331
|
|
Accounts receivable and
other
|
|
|
|
49,367
|
85,468
|
|
Inventories
|
|
|
|
117,476
|
175,626
|
|
Assets held for
sale
|
|
5
|
|
1,219,455
|
-
|
|
|
|
|
1,558,965
|
572,244
|
Other
assets
|
|
|
|
81,469
|
83,147
|
Defined benefit pension
plan
|
|
|
|
12,856
|
10,897
|
Property, plant and
equipment
|
|
|
|
3,498,434
|
4,747,759
|
Goodwill
|
|
5
|
|
-
|
50,276
|
|
|
|
|
5,151,724
|
5,464,323
|
LIABILITIES &
EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts payable and accrued
liabilities
|
|
|
|
92,930
|
236,819
|
|
Current
debt
|
|
6
|
|
30,000
|
-
|
|
Liabilities held for
sale
|
|
5
|
|
258,431
|
-
|
|
|
|
|
381,361
|
236,819
|
Debt
|
|
6
|
|
590,492
|
589,395
|
Other non-current
liability
|
|
|
|
6,876
|
6,166
|
Asset retirement
obligations
|
|
|
|
79,717
|
102,636
|
Deferred income tax
liabilities
|
|
|
|
423,613
|
607,871
|
|
|
|
|
1,482,059
|
1,542,887
|
Equity
|
|
|
|
|
|
Share
capital
|
|
7
|
|
2,819,101
|
5,319,101
|
Treasury
stock
|
|
|
|
(8,015)
|
(10,211)
|
Contributed
surplus
|
|
|
|
2,602,027
|
47,236
|
Accumulated other comprehensive
loss
|
|
|
|
5,301
|
(20,572)
|
Deficit
|
|
|
|
(1,916,215)
|
(1,583,873)
|
Total equity attributable to shareholders of the
Company
|
|
|
|
3,502,199
|
3,751,681
|
Attributable to non-controlling
interests
|
|
|
|
167,466
|
169,755
|
|
|
|
|
3,669,665
|
3,921,436
|
|
|
|
|
5,151,724
|
5,464,323
|
Approved on behalf of
the Board of
Directors
|
|
|
(Signed) John
Webster
|
Director
|
(Signed) Paul N.
Wright
|
Director
|
The accompanying notes are an integral part of
these 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
|
|
Six months
ended
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
Note
|
|
|
(restated)*
|
|
|
(restated)*
|
|
|
|
|
2016
|
2015
|
|
2016
|
2015
|
Continuing
operations:
|
|
|
|
$
|
$
|
|
$
|
$
|
Revenue
|
|
|
|
|
|
|
|
|
|
Metal
sales
|
|
|
|
107,063
|
124,561
|
|
201,755
|
257,734
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
|
|
48,927
|
65,793
|
|
94,134
|
133,947
|
|
Inventory write-down
(reversal)
|
|
|
|
(1,048)
|
-
|
|
298
|
6,210
|
|
Depreciation and
amortization
|
|
|
|
17,551
|
22,586
|
|
36,519
|
42,589
|
|
|
|
|
65,430
|
88,379
|
|
130,951
|
182,746
|
Gross
profit
|
|
|
|
41,633
|
36,182
|
|
70,804
|
74,988
|
|
|
|
|
|
|
|
|
|
Exploration
expenses
|
|
|
|
3,314
|
2,812
|
|
5,275
|
5,666
|
Mine standby
costs
|
|
|
|
5,819
|
913
|
|
15,377
|
1,412
|
General and administrative
expenses
|
|
|
|
10,688
|
9,757
|
|
20,155
|
23,054
|
Defined benefit pension plan
expense
|
|
|
|
297
|
434
|
|
580
|
860
|
Share based
payments
|
|
|
|
2,699
|
3,759
|
|
6,400
|
10,174
|
Impairment loss on property, plant and
equipment
|
|
|
|
-
|
254,910
|
|
-
|
254,910
|
Other write-down of
assets
|
|
|
|
478
|
-
|
|
478
|
-
|
Foreign exchange loss
(gain)
|
|
|
|
287
|
(1,858)
|
|
(3,153)
|
7,212
|
Operating profit
(loss)
|
|
|
|
18,051
|
(234,545)
|
|
25,692
|
(228,300)
|
|
|
|
|
|
|
|
|
|
Loss (gain) on disposal of
assets
|
|
|
|
(93)
|
-
|
|
196
|
1
|
Loss on marketable securities and other
investments
|
|
|
|
565
|
-
|
|
4,881
|
-
|
Other (income)
expense
|
|
|
|
(1,372)
|
(2,015)
|
|
323
|
(4,184)
|
Asset retirement obligation
accretion
|
|
|
|
449
|
482
|
|
898
|
965
|
Interest and financing
costs
|
|
|
|
4,082
|
4,502
|
|
9,778
|
9,434
|
Profit (loss) from continuing operations before
income
tax
|
|
|
|
14,420
|
(237,514)
|
|
9,616
|
(234,516)
|
Income tax expense
(recovery)
|
|
|
|
5,720
|
(29,965)
|
|
10,515
|
(5,649)
|
Profit (loss) from continuing
operations
|
|
|
|
8,700
|
(207,549)
|
|
(899)
|
(228,867)
|
Profit (loss) from discontinued
operations
|
|
5
|
|
(339,438)
|
9,964
|
|
(333,732)
|
24,769
|
Loss for the
period
|
|
|
|
(330,738)
|
(197,585)
|
|
(334,631)
|
(204,098)
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
Shareholders of the
Company
|
|
|
|
(329,864)
|
(198,600)
|
|
(332,342)
|
(206,844)
|
Non-controlling
interests
|
|
|
|
(874)
|
1,015
|
|
(2,289)
|
2,746
|
Loss for the
period
|
|
|
|
(330,738)
|
(197,585)
|
|
(334,631)
|
(204,098)
|
|
|
|
|
|
|
|
|
|
Profit (loss) attributable to shareholders of the
Company
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
|
9,331
|
(207,472)
|
|
903
|
(227,879)
|
Discontinued
operations
|
|
|
|
(339,195)
|
8,872
|
|
(333,245)
|
21,035
|
|
|
|
|
(329,864)
|
(198,600)
|
|
(332,342)
|
(206,844)
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
716,587
|
716,587
|
|
716,587
|
716,585
|
Diluted
|
|
|
|
716,591
|
716,587
|
|
716,590
|
716,585
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share attributable to
shareholders
|
|
|
|
|
|
|
|
|
|
of the
Company:
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per
share
|
|
|
|
(0.46)
|
(0.28)
|
|
(0.46)
|
(0.29)
|
Diluted earnings (loss) per
share
|
|
|
|
(0.46)
|
(0.28)
|
|
(0.46)
|
(0.29)
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share attributable to
shareholders
|
|
|
|
|
|
|
|
|
|
of the Company - Continuing
operations:
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per
share
|
|
|
|
0.01
|
(0.29)
|
|
0.00
|
(0.32)
|
Diluted earnings (loss) per
share
|
|
|
|
0.01
|
(0.29)
|
|
0.00
|
(0.32)
|
|
|
|
|
|
|
|
|
|
* See note
5
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of
these consolidated financial statements.
Eldorado Gold
Corporation
|
Unaudited Condensed Consolidated Statements of
Comprehensive
Income
|
(Expressed in thousands of U.S.
dollars)
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2016
|
2015
|
|
2016
|
2015
|
|
|
$
|
$
|
|
$
|
$
|
|
|
|
|
|
|
|
Loss for the
period
|
|
(330,738)
|
(197,585)
|
|
(334,631)
|
(204,098)
|
Other comprehensive income
(loss):
|
|
|
|
|
|
|
Change in fair value of available-for-sale
financial
|
|
|
|
|
|
|
|
assets (net of income taxes of $3,140 and
nil)
|
|
11,405
|
1,020
|
|
21,094
|
909
|
Realized gains on disposal of available-for-sale
financial
assets
|
|
565
|
-
|
|
4,901
|
-
|
Actuarial losses on severance
obligation
|
|
-
|
-
|
|
(122)
|
-
|
Total other comprehensive gain for the
period
|
|
11,970
|
1,020
|
|
25,873
|
909
|
Total comprehensive loss for the
period
|
|
(318,768)
|
(196,565)
|
|
(308,758)
|
(203,189)
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
Shareholders of the
Company
|
|
(317,894)
|
(197,580)
|
|
(306,469)
|
(205,935)
|
Non-controlling
interests
|
|
(874)
|
1,015
|
|
(2,289)
|
2,746
|
|
|
(318,768)
|
(196,565)
|
|
(308,758)
|
(203,189)
|
The accompanying notes are an integral part of
these consolidated financial statements.
Eldorado Gold
Corporation
|
Unaudited Condensed Consolidated Statements of
Cash Flows
|
(Expressed in thousands of U.S.
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
|
(restated)*
|
|
|
(restated)*
|
|
|
|
Note
|
|
2016
|
2015
|
|
2016
|
2015
|
|
|
|
|
|
$
|
$
|
|
$
|
$
|
Cash flows generated from (used
in):
|
|
|
|
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
|
|
|
|
|
Profit (loss) for the period from continuing
operations
|
|
|
|
|
8,700
|
(207,549)
|
|
(899)
|
(228,867)
|
Items not affecting
cash:
|
|
|
|
|
|
|
|
|
|
Asset retirement obligation
accretion
|
|
|
|
|
449
|
482
|
|
898
|
965
|
Depreciation and
amortization
|
|
|
|
|
17,551
|
22,586
|
|
36,519
|
42,589
|
Unrealized foreign exchange loss
(gain)
|
|
|
|
|
3,068
|
(50)
|
|
2,422
|
913
|
Deferred income tax expense
recovery
|
|
|
|
|
(3,328)
|
(40,082)
|
|
(12,562)
|
(26,836)
|
Loss (gain) on disposal of
assets
|
|
|
|
|
(93)
|
-
|
|
196
|
1
|
Other write-down of
assets
|
|
|
|
|
478
|
-
|
|
478
|
-
|
Impairment loss on property, plant and
equipment
|
|
|
|
|
-
|
254,910
|
|
-
|
254,910
|
Loss on marketable securities and other
investments
|
|
|
|
|
565
|
-
|
|
4,881
|
-
|
Share based
payments
|
|
|
|
|
2,699
|
3,759
|
|
6,400
|
10,174
|
Defined benefit pension plan
expense
|
|
|
|
|
297
|
434
|
|
580
|
860
|
|
|
|
|
|
30,386
|
34,490
|
|
38,913
|
54,709
|
Property reclamation
payments
|
|
|
|
|
(814)
|
(93)
|
|
(894)
|
(93)
|
Changes in non-cash working
capital
|
|
|
10
|
|
(39,251)
|
37,393
|
|
(59,624)
|
72,638
|
Net cash provided (used) by operating activities
of
|
|
|
|
|
|
|
|
|
|
|
continuing
operations
|
|
|
|
|
(9,679)
|
71,790
|
|
(21,605)
|
127,254
|
Net cash provided (used) by operating activities
of
|
|
|
|
|
|
|
|
|
|
|
discontinued
operations
|
|
|
|
|
12,165
|
(17,860)
|
|
26,533
|
1,683
|
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant and
equipment
|
|
|
|
|
(61,568)
|
(76,309)
|
|
(120,888)
|
(143,814)
|
Proceeds from the sale of property, plant and
equipment
|
|
|
|
|
373
|
94
|
|
757
|
106
|
Proceeds on production from tailings
retreatment
|
|
|
|
|
-
|
4,381
|
|
3,878
|
10,102
|
Purchase of marketable
securities
|
|
|
|
|
(692)
|
-
|
|
(2,526)
|
(5,233)
|
Proceeds from the sale of marketable
securities
|
|
|
|
|
378
|
-
|
|
3,665
|
-
|
Redemption of (investment in) term
deposits
|
|
|
|
|
(22)
|
45,000
|
|
(935)
|
(902)
|
Decrease (increase) in restricted
cash
|
|
|
|
|
7
|
(10)
|
|
(6)
|
591
|
Net cash used by investing activities of
continuing
|
|
|
|
|
|
|
|
|
|
|
operations
|
|
|
|
|
(61,524)
|
(26,844)
|
|
(116,055)
|
(139,150)
|
Net cash used by investing activities of
discontinued
|
|
|
|
|
|
|
|
|
|
|
operations
|
|
|
|
|
(4,431)
|
(15,128)
|
|
(9,573)
|
(22,694)
|
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
|
Issuance of common shares for
cash
|
|
|
|
|
-
|
-
|
|
-
|
121
|
Dividend paid to
shareholders
|
|
|
|
|
-
|
-
|
|
-
|
(5,768)
|
Purchase of treasury
stock
|
|
|
|
|
-
|
-
|
|
-
|
(2,394)
|
Long-term and bank debt
proceeds
|
|
|
|
|
30,000
|
-
|
|
30,000
|
-
|
Net cash provided (used) by financing activities
of
|
|
|
|
|
|
|
|
|
|
|
continuing
operations
|
|
|
|
|
30,000
|
-
|
|
30,000
|
(8,041)
|
Net cash used by financing activities of
discontinued
|
|
|
|
|
|
|
|
|
|
|
operations
|
|
|
|
|
-
|
(11,440)
|
|
-
|
(11,440)
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash
equivalents
|
|
|
|
|
(33,469)
|
518
|
|
(90,700)
|
(52,388)
|
Cash and cash equivalents - beginning of
period
|
|
|
|
|
230,958
|
445,608
|
|
288,189
|
498,514
|
Cash and cash equivalents - end of
period
|
|
|
|
|
197,489
|
446,126
|
|
197,489
|
446,126
|
Less cash and cash equivalents held for
sale
|
|
|
|
|
|
|
|
|
|
|
-
end of
period
|
|
|
|
|
(71,837)
|
-
|
|
(71,837)
|
-
|
Cash and cash equivalents excluding held for
sale
|
|
|
|
|
|
|
|
|
|
|
- end of
period
|
|
|
|
|
125,652
|
446,126
|
|
125,652
|
446,126
|
|
|
|
|
|
|
|
|
|
|
* See note
5
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of
these consolidated financial statements.
Eldorado Gold
Corporation
|
Unaudited Condensed Consolidated Statements of
Changes in Equity
|
(Expressed in thousands of U.S.
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
Note
|
|
2016
|
2015
|
|
2016
|
2015
|
|
|
|
|
$
|
$
|
|
$
|
$
|
Share
capital
|
|
|
|
|
|
|
|
|
Balance beginning of
period
|
|
|
|
5,319,101
|
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)
|
-
|
|
(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)
|
(12,662)
|
|
(10,211)
|
(12,949)
|
|
Purchase of treasury
stock
|
|
|
|
-
|
-
|
|
-
|
(2,394)
|
|
Shares redeemed upon exercise of restricted share
units
|
|
|
|
-
|
657
|
|
2,196
|
3,338
|
Balance end of
period
|
|
|
|
(8,015)
|
(12,005)
|
|
(8,015)
|
(12,005)
|
|
|
|
|
|
|
|
|
|
Contributed
surplus
|
|
|
|
|
|
|
|
|
Balance beginning of
period
|
|
|
|
46,758
|
41,371
|
|
47,236
|
38,430
|
|
Share based
payments
|
|
|
|
2,369
|
3,936
|
|
5,503
|
10,241
|
|
Shares redeemed upon exercise of restricted share
units
|
|
|
|
-
|
(657)
|
|
(2,196)
|
(3,338)
|
|
Recognition of other current liability related
costs
|
|
|
|
-
|
(110)
|
|
(1,416)
|
(763)
|
|
Reversal of other current liability and related
costs
|
|
|
|
52,900
|
-
|
|
52,900
|
-
|
|
Transfer to share capital on exercise of
options
|
|
|
|
-
|
-
|
|
-
|
(30)
|
|
Capital
reduction
|
|
7
|
|
2,500,000
|
-
|
|
2,500,000
|
-
|
Balance end of
period
|
|
|
|
2,602,027
|
44,540
|
|
2,602,027
|
44,540
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive
loss
|
|
|
|
|
|
|
|
|
Balance beginning of
period
|
|
|
|
(6,669)
|
(18,238)
|
|
(20,572)
|
(18,127)
|
|
Other comprehensive gain for the
period
|
|
|
|
11,970
|
1,020
|
|
25,873
|
909
|
Balance end of
period
|
|
|
|
5,301
|
(17,218)
|
|
5,301
|
(17,218)
|
|
|
|
|
|
|
|
|
|
Deficit
|
|
|
|
|
|
|
|
|
Balance beginning of
period
|
|
|
|
(1,586,351)
|
(67,816)
|
|
(1,583,873)
|
(53,804)
|
|
Dividends
paid
|
|
|
|
-
|
-
|
|
-
|
(5,768)
|
|
Loss attributable to shareholders of the
Company
|
|
|
|
(329,864)
|
(198,600)
|
|
(332,342)
|
(206,844)
|
Balance end of
period
|
|
|
|
(1,916,215)
|
(266,416)
|
|
(1,916,215)
|
(266,416)
|
Total equity attributable to shareholders of the
Company
|
|
|
|
3,502,199
|
5,068,002
|
|
3,502,199
|
5,068,002
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
|
|
|
|
|
|
Balance beginning of
period
|
|
|
|
168,340
|
305,510
|
|
169,755
|
305,414
|
|
Profit attributable to non-controlling
interests
|
|
|
|
(874)
|
1,015
|
|
(2,289)
|
2,746
|
|
Dividends declared to non-controlling
interests
|
|
|
|
-
|
(1,627)
|
|
-
|
(3,262)
|
Balance end of
period
|
|
|
|
167,466
|
304,898
|
|
167,466
|
304,898
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
|
|
3,669,665
|
5,372,900
|
|
3,669,665
|
5,372,900
|
The accompanying notes are an integral part of
these consolidated financial statements.
Click here for the Consolidated Financial Statements for the
quarter ended March 31, 2016.
SOURCE Eldorado Gold Corporation