TSX: ELD NYSE: EGO
VANCOUVER, July 27, 2017 /CNW/ - Eldorado Gold
Corporation, ("Eldorado" or "the Company") today reported the
Company's financial and operational results for the second quarter
ended June 30, 2017.
Second Quarter Financial and Operational Highlights
- Profit of $11.2 million
($0.02 per share), compared to a
loss of $329.9 million ($0.46 per share) in the second quarter of 2016
(which included $339.0 million loss
on re-measurement of Chinese assets). Adjusted net earnings of
$6.3 million ($0.01 per share) compared to an adjusted net
earnings of $11.7 million
($0.01 per share) in the second
quarter of 2016.
- Gold production of 63,692 ounces, (including
pre-commercial production).
- Gold revenues of $72.2
million on sales of 57,206 ounces of gold at an
average realized gold price of $1,262 per ounce.
- All-in sustaining cash costs averaged $846 per ounce.
- Cash operating costs averaged $484 per ounce; compared to 2017 guidance of
$485-535 per ounce.
- Total liquidity of approximately $1.0
billion, including $752.1
million in cash, cash equivalents and term deposits, and
$250 million in undrawn lines of
credit at quarter end. Cash, cash equivalents and term deposits
after payment for the acquisition of Integra was $609.3 million.
- Olympias Phase II commissioning continued and
commercial production is now expected by the end of 2017.
- Announced the definitive agreement with Integra Gold
Corp. to acquire all of issued and outstanding common shares,
not already owned by the Company, by way of a plan of arrangement;
transaction closed post-quarter end.
- Construction at Skouries continued, with production now
targeted for 2020.
- George Burns assumed the
role of President & Chief Executive Officer on April 28, 2017.
"It was an eventful second quarter with site tours to
Greece to demonstrate our
continued progression of development and news of the Integra
acquisition," said George Burns,
Eldorado's President and Chief
Executive Officer. "Commissioning at Olympias continues,
although we now expect to declare commercial production by the end
of 2017. Skouries development is progressing as we continue to
endeavour to work with the Greek government to advance this key
project. News of ounce recovery deferral at Kisladag was
unexpected, however the operations and engineering groups have
implemented corrections to solution chemistry that are expected to
achieve normal recovery rates."
"I am pleased that the Integra acquisition has closed. We
proudly welcomed our new employees in Quebec to our team earlier this month and we
look forward to expanding our production base within this highly
prospective region going forward."
Summarized Financial Results
Continuing
Operations ($ millions except as noted)
|
|
|
|
|
3 months ended
June 30,
|
6 months ended
June 30,
|
|
2017
|
2016
|
2017
|
2016
|
Revenues
|
82.7
|
107.1
|
194.6
|
201.8
|
Gold
revenues
|
72.2
|
98.3
|
162.7
|
188.8
|
Gold sold
(ounces)
|
57,206
|
77,623
|
131,274
|
152,606
|
Average realized gold
price ($/ounce)
|
1,262
|
1,267
|
1,240
|
1,237
|
Cash operating costs
– gold mines ($/ounce)
|
484
|
490
|
474
|
504
|
Total cash costs –
gold mines ($/ounce)
|
502
|
505
|
492
|
521
|
Gross profit from
gold mining operations
|
28.1
|
41.4
|
65.1
|
73.5
|
Cash flow from
operating activities 1
|
16.9
|
29.6
|
45.1
|
38.0
|
|
|
|
|
|
Including
Discontinued Operations
|
|
|
|
|
|
|
|
|
3 months ended
June 30,
|
6 months ended
June 30,
|
|
2017
|
2016
|
2017
|
2016
|
Revenues
|
82.7
|
171.5
|
194.6
|
335.7
|
Gold
revenues
|
72.2
|
162.7
|
162.7
|
322.6
|
Gold sold
(ounces)
|
57,206
|
128,090
|
131,274
|
261,557
|
Average realized gold
price ($/ounce)
|
1,262
|
1,270
|
1,240
|
1,233
|
Cash operating costs
– gold mines ($/ounce)
|
484
|
607
|
474
|
605
|
Total cash costs –
gold mines ($/ounce)
|
502
|
650
|
492
|
654
|
All-in sustaining
cash cost – gold mines ($/ounce)
|
846
|
933
|
826
|
908
|
Gross profit from
gold mining operations
|
28.1
|
55.5
|
65.1
|
96.6
|
Adjusted net
earnings
|
6.3
|
11.7
|
16.7
|
11.0
|
Net profit (loss)
2
|
11.2
|
(329.9)
|
15.0
|
(332.3)
|
Earnings (loss) per
share – basic ($/share) 2
|
0.02
|
(0.46)
|
0.02
|
(0.46)
|
Earnings (loss) per
share – diluted ($/share) 2
|
0.02
|
(0.46)
|
0.02
|
(0.46)
|
(1)
|
Before changes in
non-cash working capital.
|
(2)
|
Attributable to
shareholders of the Company.
|
Review of Quarterly Financial Results
Profit attributable to shareholders of the Company for the
second quarter of 2017 was $11.2
million, ($0.02 per share),
compared to a loss of $329.9 million,
($0.46 per share) in the second
quarter of 2016 (which included $339.0
million loss on re-measurement of Chinese assets). Adjusted
net earnings for the quarter were $6.3
million ($0.01 per share) as
compared to an adjusted net earnings of $11.7 million ($0.01 per share) for the second quarter of 2016.
The main difference between profit and adjusted net earnings in the
second quarter of 2017 was the fluctuation on foreign exchange
translation of deferred income tax balances in Turkey, Greece and Brazil.
Gold sales of 57,206 ounces and gross profit from continuing
operations were lower year over year due to lower production and
sales at Kisladag and shipping delays at Efemcukuru. General and
administrative expenses increased $0.8
million year over year due to reorganization costs in
Vancouver and Greece. Exploration expense increased
$3.8 million including $1.6 million related to exploration activities at
Stratoni. Mine standby costs of $1.3
million were recorded in the second quarter of 2017 related
to Vila Nova, Perama Hill and Skouries underground development.
Second Quarter Review and 2017 Outlook
TURKEY
Kisladag
Kisladag reported gold production of
38,456 ounces for the quarter, down 23% year over year. Reduced
solution grades resulted from continued slow leaching of higher pad
stack heights and increased cyanide requirements.
During the quarter, the placement of estimated recoverable gold
on the leach pad proceeded as planned, however, gold solution grade
and consequently gold recovery from the leach pad lagged internal
expectations throughout the quarter. Recent laboratory results,
where solution chemistry was adjusted, have indicated normal
recovery rates can still be expected. More time is now required to
adjust the overall pad solution chemistry and allow solution to
flow through the leach pad. With the current stack height
being approximately 80 metres at the highest point, vertical flow
rates are approximately one metre per day.
Sustaining capital expenditures of $4.9
million included a $1.5
million reimbursement for the handing over of the completed
154kV power transmission line to local authorities as part of the
original development agreement.
Efemcukuru
Gold production of 23,184 ounces for
the quarter was in-line year over year. Total gold ounces sold of
18,754 were lower due to a religious holiday in
Turkey. Cash operating costs of $525 per ounce were higher year over year due to
lower mined grades. Capital expenditures of $5.6 million included underground development,
mine equipment overhauls and process and waste rock/tailings
facilities construction projects.
GREECE
Stratoni
Concentrate production of 10,157
tonnes for the second quarter was lower year over year due to a
reduction in ore tonnes processed and slightly lower mined grades
(6.1% Pb, 9.4% Zn, 159 g/t Ag). The expected reduced grade and
tonnage performance reflects the continuing depletion of the
current mineable ore reserves remaining at the Mavres Petres
mine.
Olympias
Olympias Phase II was substantially
completed during the quarter. Wet commissioning of the plant began
in early May. The plant operated under commissioning control
through the remainder of the month and under operations control for
trial production in June. Gold production of 2,052 ounces for the
quarter is considered pre-commercial. Commissioning is
progressing well, with lead/silver, zinc and gold concentrates
being moved into market, however a bottleneck in the tailings
filtration stage is limiting capacity to approximately 60% of
design throughput. An engineering solution is being advanced and is
expected to be implemented during the third quarter. Commercial
production is now expected by the end of the year.
Capital spending for the quarter at Olympias was $27.1 million, with the majority deployed for
continued underground development and rehabilitation in the
Olympias underground, construction of the Phase II plant and
construction works in the Kokkinolakkas tailings management
facility.
Due to this slower than expected start-up, 2017 guidance at
Olympias has been reduced from 40,000 to 50,000 ounces to 20,000 to
30,000 ounces.
Skouries
Work continued in the second quarter
with the onset of better weather conditions. Building erection work
commenced with key covered storage in place by quarter end.
Tree clearing in the tailings dam area began along with continued
construction of the access road through the base of the dam, as
well as enabling works that are key for the start of the tailings
embankment construction. Earthworks also continued on the tailings
thickener foundations and the stockpile dome embankments, with both
close to final grade by quarter end.
Total capital expenditure for the quarter was $18.6 million. Capital expenditure continues to
lag behind expectations and it is now estimated that $80-$90 million will be spent in 2017 compared to
the originally estimated $170-$200
million. Delays in capital expenditure are attributable to
the slower start to the year in combination with ongoing delays in
the granting of required permits by the Greek government to enable
ramp-up in construction activities. Production is now
targeted for 2020.
Perama Hill
The project remains on care and
maintenance pending receipt of the Environmental Impact Study
permit.
BRAZIL
Tocantinzinho
The installation licence for the
site was issued by the Para State Government during the quarter,
however the road and power line licence applications are still
under review. Basic engineering is largely complete for the process
plant and detailed infrastructure engineering was completed during
the second quarter. Work continued on the detailed design required
for tailings and solution pond permit applications and all permit
approvals are expected during the first quarter of 2018.
A total of $2.5 million was spent
during the quarter.
ROMANIA
Certej
Engineering and design work continued in
order to support the permitting of the oxidative process, tailings
and waste management facilities. Optimization studies were
completed on the metallurgical process. Tailings and waste
management studies continued with a selection of an optimum
tailings pond and waste dump location from a short list of suitable
locations. Permitting level designs will be completed based
on the selected option. Engineering and permitting for
offsite infrastructure continued with work progressing on the main
power line, mine access road, water tanks and water supply
pipeline.
A total of $4.2 million was spent
during the quarter.
Integra Acquisition
During the quarter, the Company announced that it had entered
into a definitive agreement with Integra Gold Corp. to acquire all
of the issued and outstanding shares that the Company did not
already own by way of a plan of arrangement. ("Arrangement").
Pursuant to the Arrangement, Integra shareholders collectively
received, for all the issued common shares of Integra that
Eldorado did not already own,
approximately CAD$129 million cash
and 77 million common shares of Eldorado (representing
approximately 10% of the total issued common shares of Eldorado,
post-completion of the Arrangement). Total consideration was
approximately $360 million, inclusive
of Integra shares held by Eldorado. The Arrangement was successfully
completed on July 10, 2017.
Project Overview
The principal asset is the Lamaque
project near Val-d'Or, Quebec. A
Preliminary Economic Assessment (PEA) was completed in February 2017 that envisioned a high-grade
underground operation producing 123,000 ounces of gold per year for
over 10 years at all-in sustaining costs of US$634 per ounce. Lamaque hosts a NI 43-101
Indicated Resource of 5.1 million tonnes at a grade of 9.13 grams
per tonne gold and an Inferred Resource of 3.5 million tonnes at a
grade of 7.94 grams per tonne gold (at a 5.0 gram per tonne gold
cut-off). The Company is currently in the process of
advancing underground ramp development to facilitate underground
exploration and collection of a bulk sample by year end. To
date, the underground ramp has progressed over 1,135 metres and the
bulk sample has been initiated with over 5,107 tonnes collected to
date.
Exploration
The Company will continue to expand
exploration of the Lamaque project area, building on the experience
and knowledge of the Quebec team
gained from the discovery and exploration of the Triangle
deposit. Drilling planned for the second half of 2017
includes testing of new exploration targets in the project
area, step-out drilling on recent high-grade drill intercepts
not yet correlated with known mineralized structures, and
additional drilling at the Triangle deposit on extensions of the C5
and C7 mineralized zones. Additional project upside is being
outlined through ongoing property-scale targeting studies that
integrates the extensive historical exploration and mining data for
the project area with new geophysical survey data and our enhanced
understanding of controls on gold mineralization.
Updated Technical Study & Resource
The current
PEA, based on the Triangle Resource from November 2016, does not incorporate the latest
Triangle Resource (March 2017) or the
110,000 plus metres of additional drilling that supported the
March 2017 resource model. This
and ongoing drilling has shown increased overall confidence in the
Triangle Resource and a positive trend of better grades and
thicknesses, particularly in the shallower portions of the
deposit. A technical study is currently underway which will
include not only the data supporting the March 2017 model but also information from a
further 60,000 metres of drilling. The study will optimize
the PEA for capital and operating costs to a pre-feasibility level
of confidence and is expected to confirm maiden reserves for
Triangle deposit in the first quarter of 2018.
Exploration Review
During the second quarter the Company completed 21,650 metres of
exploration drilling at the Company's exploration projects and
mines. Exploration expenditures for the quarter totaled
$8.6 million.
Turkey
At Efemcukuru,
the 2017 program includes delineation drilling on the Kestane
Beleni vein, drill-testing exploration targets within the central
parts of the Kokarpinar vein system and identifying and testing new
targets outside of these two main vein systems. Delineation
drilling of 5,564 metres was completed during the second quarter at
Kestane Beleni on Inferred Resource zones in the south and middle
ore shoots and Kestane Beleni northwest areas, for a 2017 drilling
total of 8,173 metres. The results are positive, with
numerous intercepts yielding higher gold grades than previously
modelled.
At Kokarpinar, the first three drillholes of the 2017 program
were completed. All intersected thick vein intervals at shallow
levels with textural and mineralogical characteristics similar to
high-grade veins at Kestane Beleni and from other parts of the
Kokarpinar vein. Assay results are pending.
Exploration elsewhere in Turkey
included reconnaissance programs in the western part of the
country, evaluating the potential for epithermal and porphyry
systems associated with Tertiary volcanic centers.
Romania
In the Certej
district, exploration during the quarter focused on the Bolcana and
Sacaramb projects. At Bolcana, 9,295 metres were drilled in
six drillholes, bringing the 2017 drilling total to 13,394
metres. Many of these holes were collared on the margins of
the porphyry system and oriented such that they tested the porphyry
system at depth. Initial results confirm that strong
mineralization in the system continues to depth and that the
deposit footprint extends further to the west than was previously
assumed.
Six drill rigs are currently active at the project, testing the
continuity of these zones at shallower levels of the system.
A total of 22,000 metres of drilling is planned for the Bolcana
project in 2017.
Serbia
Exploration during the quarter focused on the
KMC project, where 7,393 metres of diamond drilling were completed
at the Shanac, Copper Canyon, and Gradina prospects. At
Shanac, seven drillholes tested the extent of the gold-rich
magnetite skarn defined in the 2016 drilling program, intersecting
similar grades and thicknesses to those previously
encountered. Drilling is now testing extensions to high-grade
zones at Copper Canyon and Gradina, as well as new targets on the
property.
Greece
At the
Stratoni mine, nine underground drillholes were completed during
the second quarter testing the lower portion of the Mavres Petres
orebody. These drillholes include both delineation holes
designed to convert existing Inferred Resources and down-dip
stepouts designed to identify new resources. Most
delineation drillholes have intersected ore thicknesses greater
than those predicted by the resource model, while the stepout holes
have demonstrated downdip continuity of the orebody.
The first two drillholes of the 2017 program at the early-stage
Tsikara porphyry prospect were completed, testing soil geochemical
and geophysical anomalies associated with breccia and intrusive
contact zones. Only weakly mineralized zones have been
intersected and an additional four drillholes on other nearby
targets remain in the planned program.
2017 Outlook
In 2017 Eldorado expects to produce 290,000 – 340,000 ounces of
gold, including pre-commercial ounces from Olympias Phase II. Cash
costs are forecasted at $500 per
ounce, with all-in sustaining cash costs expected to be
approximately $900 per ounce.
In early June, the Greek Ministry of Environment and Energy
("the Ministry") issued a press release indicating it had requested
the Greek Council of State to take preparatory steps to initiate
arbitration proceedings with the Company, however provided no
specific or additional details. The Company has not yet received
arbitration notice, but if initiated the arbitration process could
take a minimum of four months. Meanwhile, permits applied for
remain unissued and the 2017 guidance on Skouries capital spending
and start-up has been revised accordingly. The Company continues to
evaluate all capital spending and development timelines at its
projects in Greece.
As at June 30, 2017, the Company's
balance sheet remains strong, with $752
million in cash, cash equivalents and term deposits and
$250 million in undrawn credit lines.
Cash, cash equivalents and term deposits after payment for the
acquisition of Integra was $609.3
million. Sustaining capital for gold mining operations in
2017 is estimated to be approximately $70
million. Based on current plans, expenditures for
project development are being revised downwards to $225 million. Exploration expenditure guidance
for 2017 remains at $35 million, with
a balanced focus on resource delineation and brownfield drilling at
existing operations, advancing early-stage projects and project
generation.
Corporate
After the Annual General Meeting on April
27, 2017. Mr. George Burns
succeeded Mr. Paul Wright as the
Company's President and Chief Executive Officer. Mr. Burns also
joined Eldorado's Board of
Directors.
Dividend
In line with terms and Conditions of the Company's Dividend
Policy, where no dividend is paid on a realized gold price under
$1,250 for gold sold in the prior six
months, the Company will suspend the cash payment of its
semi-annual dividend effective the third quarter of 2017. The
realized price by the Company on gold sold during the first half of
2017 was $1,240.
Conference Call
A conference call to discuss the details of the Company's 2017
Second Quarter Results will be held by senior management on
July 28, 2017 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 14, 2017)
|
Date:
|
Friday, July 28,
2017
|
Toronto:
|
416 849
0833
|
Time:
|
8:30 am PT (11:30 am
ET)
|
Toll
Free:
|
855 859
2056
|
Dial
in:
|
647 427
7450
|
Pass
code:
|
4708 3663
|
Toll
free:
|
888 231
8191
|
|
|
About Eldorado Gold
Eldorado is a leading
intermediate gold producer with mining, development and exploration
operations in Turkey, Greece, Romania, Serbia, Canada and Brazil. The Company's success
to date is based on a highly skilled and dedicated workforce, safe
and responsible operations, a portfolio of high-quality assets, 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).
Cautionary Note about Forward-looking Statements and
Information
Certain of the statements made and
information provided in this press release are forward-looking
statements or information within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and applicable
Canadian securities laws. Often, these forward-looking statements
and forward-looking information can be identified by the use of
words such as "plans", "expects", "is expected", "budget",
"continue", "projected", "scheduled", "estimates", "forecasts",
"intends", "anticipates", or "believes" or the negatives thereof or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved.
Forward-looking statements or information contained in this
release include, but are not limited to the Company's 2017 Second
Quarter Financial and Operational Results, including statements or
information with respect to: our guidance and outlook,
including expected production, projected cash cost, planned capital
and exploration expenditures for 2017; our expectation as to our
future financial and operating performance, including future cash
flow, estimated cash costs, expected metallurgical recoveries, gold
price outlook; and our strategy, plans and goals, including our
proposed exploration, development, construction, permitting and
operating plans and priorities, and related timelines.
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
geopolitical, economic, permitting and legal climate that we
operate in; the future price of gold and other commodities;
exchange rates; anticipated costs and expenses; production, mineral
reserves and resources and metallurgical recoveries, the impact of
acquisitions, dispositions, suspensions or delays on our business
and the ability to achieve our goals. In particular, except
where otherwise stated, we have assumed a continuation of existing
business operations on substantially the same basis as exists at
the time of this release.
Even though our management believes that the assumptions made
and the expectations represented by such statements or information
are reasonable, there can be no assurance that the forward-looking
statement or information will prove to be accurate. Many
assumptions may be difficult to predict and are beyond our
control.
Furthermore, should one or more of the risks, uncertainties
or other factors materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those
described in forward-looking statements or information. These
risks, uncertainties and other factors include, among others, the
following: geopolitical and economic climate (global and
local), risks related to mineral tenure and permits; gold and other
metal price volatility; mining operational and development risk;
foreign country operational risks; risks of sovereign investment;
regulatory environment and restrictions, including environmental
regulatory restrictions and liability; discrepancies between actual
and estimated production, mineral reserves and resources and
metallurgical recoveries; risks related to impact of the sale of
our Chinese assets and the acquisition of Integra on the Company's
operations; risks related to impact of the integration of Integra;
additional funding requirements; currency fluctuations; litigation
risks; community and non-governmental organization actions;
speculative nature of gold exploration; dilution; share price
volatility; competition; loss of key employees; 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 our business" in the Company's most recent Annual
Information Form & Form 40-F. The reader is directed to
carefully review the detailed risk discussion in our most recent
Annual Information Form filed on SEDAR under our Company name,
which discussion is incorporated by reference in this release, for
a fuller understanding of the risks and uncertainties that affect
the Company's business and operations.
Forward-looking statements and information is designed to
help you understand management's current views of our near and
longer term prospects, and it may not be appropriate for other
purposes.
There can be no assurance that forward-looking statements or
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, you should not place undue reliance
on the forward-looking statements or information contained
herein. Except as required by law, we do not expect to update
forward-looking statements and information continually as
conditions change 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.
Financial Information and condensed statements contained
herein or attached hereto may not be suitable for readers that are
unfamiliar with the Company and is not a substitute for reading the
full quarterly financial statements and related MD&A available
on our website and on SEDAR under our Company name. The
reader is directed to carefully review such document for a full
understanding of the financial information summarized
herein.
Jacques Simoneau, P. Geo.,
Exploration Manager and François Chabot, P. Eng., Director of
Operations & Engineering at the Lamaque Project, are Qualified
Persons for the purposes of National Instrument 43-101 - Standards
of Disclosure for Mineral Projects of the Canadian Securities
Administrators. Mr. Simoneau is responsible for the exploration
activities on the project while Mr. Chabot is responsible for the
engineering and operation activities. Both have reviewed and
approved the scientific and technical information in this news
release relating to the Lamaque Project.
Except as otherwise noted, scientific and technical
information contained in this press release was reviewed and
approved by Paul Skayman, FAusIMM,
Chief Operating Officer for Eldorado Gold Corporation, and a
"qualified person" as defined by Canadian Securities
Administrators' National Instrument 43-101 – Standards of
Disclosure for Mineral Projects ("NI 43-101").
Cautionary Note to US Investors Concerning Estimates of
Measured, Indicated and Inferred Resources
The terms "mineral resource", "measured mineral resource",
"indicated mineral resource", "inferred mineral resource" used
herein are Canadian mining terms used in accordance with National
Instrument 43-101 – Standards of Disclosure for Mineral Projects
("NI 43-101") under the guidelines set out in the Canadian
Institute of Mining and Metallurgy and Petroleum (the "CIM")
Standards on Mineral Resources and Mineral Reserves, adopted by the
CIM Council, as may be amended from time to time. These definitions
differ from the definitions in the United
States Securities & Exchange Commission ("SEC") Industry
Guide 7. In the United States, a
mineral reserve is defined as a part of a mineral deposit which
could be economically and legally extracted or produced at the time
the mineral reserve determination is made.
While the terms "mineral resource", "measured mineral
resource," "indicated mineral resource", and "inferred mineral
resource" are recognized and required by Canadian regulations, they
are not defined terms under standards in the United States and normally are not
permitted to be used in reports and registration statements filed
with the SEC. As such, information contained herein concerning
descriptions of mineralization and resources under Canadian
standards may not be comparable to similar information made public
by U.S. companies in SEC filings.
Mineral resources which are not mineral reserves do not have
demonstrated economic viability. With respect to "indicated
mineral resource" and "inferred mineral resource", there is a great
amount of uncertainty as to their existence and a great uncertainty
as to their economic and legal feasibility. It cannot be assumed
that all or any part of a "measured mineral resource", "indicated
mineral resource" or "inferred mineral resource" will ever be
upgraded to a higher category.
Accordingly, information herein containing descriptions of
our mineral deposits may not be comparable to similar information
made public by US companies subject to the reporting and disclosure
requirements under US federal securities laws and the rules and
regulations thereunder.
Gold Production
Highlights (in US$)
|
|
|
|
|
|
|
Second
Quarter
2017
|
Second
Quarter
2016
|
YTD
2017
|
YTD
2016
|
Gold
Production
|
|
|
|
|
|
Ounces
Sold
|
57,206
|
128,090
|
131,274
|
261,557
|
|
Ounces
Produced1
|
63,692
|
124,110
|
138,864
|
265,099
|
|
Cash Operating Cost
($/oz)2,4
|
484
|
607
|
474
|
605
|
|
Total Cash Cost
($/oz)3,4
|
502
|
650
|
492
|
654
|
|
Realized Price ($/oz
- sold)
|
1,262
|
1,270
|
1,240
|
1,233
|
Kişladağ Mine,
Turkey
|
|
|
|
|
|
Ounces
Sold
|
38,452
|
49,942
|
91,235
|
102,621
|
|
Ounces
Produced
|
38,456
|
49,924
|
91,000
|
102,300
|
|
Tonnes to
Pad
|
3,288,604
|
4,256,279
|
6,516,010
|
8,303,175
|
|
Grade (grams /
tonne)
|
0.82
|
0.81
|
0.97
|
0.77
|
|
Cash Operating Cost
($/oz)4
|
464
|
479
|
454
|
508
|
|
Total Cash Cost
($/oz)3,4
|
478
|
497
|
470
|
525
|
Efemçukuru Mine,
Turkey
|
|
|
|
|
|
Ounces
Sold
|
18,754
|
27,681
|
40,039
|
49,985
|
|
Ounces
Produced
|
23,184
|
23,406
|
45,712
|
50,922
|
|
Tonnes
Milled
|
124,961
|
120,044
|
240,755
|
236,531
|
|
Grade (grams /
tonne)
|
6.64
|
6.95
|
6.70
|
7.45
|
|
Cash Operating Cost
($/oz)4
|
525
|
509
|
519
|
495
|
|
Total Cash Cost
($/oz)3,4
|
552
|
521
|
541
|
512
|
Olympias,
Greece
|
|
|
|
|
|
Ounces
Sold
|
-
|
-
|
-
|
-
|
|
Ounces
Produced1
|
2,052
|
-
|
2,052
|
2,774
|
|
Tonnes
Milled
|
-
|
-
|
-
|
87,350
|
|
Grade (grams /
tonne)
|
-
|
-
|
-
|
2.47
|
|
Cash Operating Cost
($/oz)4
|
n/a
|
-
|
n/a
|
n/a
|
|
Total Cash Cost
($/oz)3,4
|
-
|
-
|
-
|
-
|
1
|
Includes
pre-commercial production in 2017 and production from tailings
retreatment in 2016.
|
2
|
Cost figures
calculated in accordance with the Gold Institute
Standard.
|
3
|
Cash operating costs,
plus royalties and the cost of off-site administration.
|
4
|
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)
|
Note
|
|
June 30,
2017
|
December 31,
2016
|
|
|
|
$
|
$
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
483,342
|
883,171
|
|
Term
deposits
|
|
|
268,771
|
5,292
|
|
Restricted
cash
|
|
|
260
|
240
|
|
Marketable
securities
|
|
|
46,882
|
28,327
|
|
Accounts receivable
and other
|
|
|
60,277
|
54,315
|
|
Inventories
|
|
|
148,111
|
120,830
|
|
|
|
1,007,643
|
1,092,175
|
Other
assets
|
|
|
23,261
|
48,297
|
Defined benefit
pension plan
|
|
|
12,913
|
11,620
|
Property, plant and
equipment
|
|
|
3,747,076
|
3,645,827
|
|
|
|
4,790,893
|
4,797,919
|
LIABILITIES &
EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
|
77,435
|
90,705
|
|
Current portion of
asset retirement obligation
|
|
|
3,560
|
-
|
|
|
|
80,995
|
90,705
|
Debt
|
5
|
|
592,686
|
591,589
|
Defined benefit
pension plan
|
|
|
11,655
|
10,882
|
Asset retirement
obligations
|
|
|
82,004
|
89,778
|
Deferred income tax
liabilities
|
|
|
433,620
|
443,501
|
|
|
|
1,200,960
|
1,226,455
|
Equity
|
|
|
|
|
Share
capital
|
|
|
2,819,863
|
2,819,101
|
Treasury
stock
|
|
|
(11,056)
|
(7,794)
|
Contributed
surplus
|
|
|
2,611,660
|
2,606,567
|
Accumulated other
comprehensive income (loss)
|
|
|
9,118
|
(7,172)
|
Deficit
|
|
|
(1,923,585)
|
(1,928,024)
|
Total equity
attributable to shareholders of the Company
|
|
|
3,506,000
|
3,482,678
|
Attributable to
non-controlling interests
|
|
|
83,933
|
88,786
|
|
|
|
3,589,933
|
3,571,464
|
|
|
|
4,790,893
|
4,797,919
|
Approved on behalf of the Board of Directors
(Signed)
John
Webster
|
Director
|
(Signed)
George
Burns
|
Director
|
Please see the Financial Statements dated
June 30, 2017 for notes to the
accounts.
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
|
2017
|
2016
|
|
2017
|
2016
|
|
|
$
|
$
|
|
$
|
$
|
Revenue
|
|
|
|
|
|
|
|
Metal
sales
|
|
82,736
|
107,063
|
|
194,616
|
201,755
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
|
|
|
Production
costs
|
|
39,433
|
48,927
|
|
90,121
|
94,134
|
|
Inventory write-down
(reversal)
|
|
-
|
(1,048)
|
|
-
|
298
|
|
Depreciation and
amortization
|
|
15,556
|
17,551
|
|
33,620
|
36,519
|
|
|
54,989
|
65,430
|
|
123,741
|
130,951
|
Gross
profit
|
|
27,747
|
41,633
|
|
70,875
|
70,804
|
|
|
|
|
|
|
|
Exploration
expenses
|
|
7,124
|
3,314
|
|
12,371
|
5,275
|
Mine standby
costs
|
|
1,301
|
5,819
|
|
2,332
|
15,377
|
Other operating
items
|
|
1,525
|
-
|
|
3,658
|
-
|
General and
administrative expenses
|
|
11,498
|
10,688
|
|
23,112
|
20,155
|
Defined benefit
pension plan expense
|
|
782
|
297
|
|
1,612
|
580
|
Share based
payments
|
7
|
1,990
|
2,699
|
|
7,118
|
6,400
|
Write-down of
assets
|
|
2,177
|
478
|
|
3,231
|
478
|
Foreign exchange loss
(gain)
|
|
(749)
|
287
|
|
(661)
|
(3,153)
|
Operating
profit
|
|
2,099
|
18,051
|
|
18,102
|
25,692
|
|
|
|
|
|
|
|
Loss (gain) on
disposal of assets
|
|
(40)
|
(93)
|
|
267
|
196
|
Loss (gain) on
marketable securities and other investments
|
|
(743)
|
565
|
|
(778)
|
4,881
|
Other expense
(income)
|
|
(2,211)
|
(1,372)
|
|
(4,560)
|
323
|
Asset retirement
obligation accretion
|
|
523
|
449
|
|
1,047
|
898
|
Interest and
financing costs (income)
|
|
(61)
|
4,082
|
|
1,050
|
9,778
|
|
|
|
|
|
|
|
Profit from
continuing operations before income tax
|
|
4,631
|
14,420
|
|
21,076
|
9,616
|
Income tax expense
(recovery)
|
|
(2,693)
|
5,720
|
|
8,083
|
10,515
|
Profit (loss) from
continuing operations
|
|
7,324
|
8,700
|
|
12,993
|
(899)
|
Profit (loss) from
discontinued operations
|
4
|
203
|
(339,438)
|
|
(2,797)
|
(333,732)
|
Profit (loss) for
the period
|
|
7,527
|
(330,738)
|
|
10,196
|
(334,631)
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
Shareholders of the
Company
|
|
11,215
|
(329,864)
|
|
15,049
|
(332,342)
|
Non-controlling
interests
|
|
(3,688)
|
(874)
|
|
(4,853)
|
(2,289)
|
Profit (loss) for
the period
|
|
7,527
|
(330,738)
|
|
10,196
|
(334,631)
|
|
|
|
|
|
|
|
Profit (loss)
attributable to shareholders of the Company
|
|
|
|
|
|
|
Continuing
operations
|
|
11,012
|
9,331
|
|
17,846
|
903
|
Discontinued
operations
|
|
203
|
(339,195)
|
|
(2,797)
|
(333,245)
|
|
|
11,215
|
(329,864)
|
|
15,049
|
(332,342)
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (thousands)
|
|
|
|
|
|
|
Basic
|
|
716,824
|
716,587
|
|
716,713
|
716,587
|
Diluted
|
|
717,479
|
716,591
|
|
717,380
|
716,590
|
|
|
|
|
|
|
|
Profit (loss) per
share attributable to shareholders
|
|
|
|
|
|
|
of the
Company:
|
|
|
|
|
|
|
Basic profit (loss)
per share
|
|
0.02
|
(0.46)
|
|
0.02
|
(0.46)
|
Diluted profit (loss)
per share
|
|
0.02
|
(0.46)
|
|
0.02
|
(0.46)
|
|
|
|
|
|
|
|
Profit per share
attributable to shareholders
|
|
|
|
|
|
|
of the Company -
continuing operations:
|
|
|
|
|
|
|
Basic profit per
share
|
|
0.02
|
0.01
|
|
0.02
|
0.00
|
Diluted profit per
share
|
|
0.02
|
0.01
|
|
0.02
|
0.00
|
Please see the Financial Statements dated June 30, 2017 for notes to the accounts.
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,
|
|
|
2017
|
2016
|
|
2017
|
2016
|
|
|
$
|
$
|
|
$
|
$
|
|
|
|
|
|
|
|
Profit (loss) for
the period
|
|
7,527
|
(330,738)
|
|
10,196
|
(334,631)
|
Other
comprehensive income (loss):
|
|
|
|
|
|
|
Change in fair value
of available-for-sale financial assets
|
|
1,690
|
14,545
|
|
18,554
|
24,234
|
Income tax on change
in fair value of available-for-sale financial assets
|
|
(451)
|
(3,140)
|
|
(2,595)
|
(3,140)
|
Transfer of realized
loss on disposal of available-for-sale financial assets
|
|
-
|
565
|
|
-
|
4,901
|
Actuarial gains
(losses) on defined benefit pension plans, net of tax
|
|
226
|
-
|
|
331
|
(122)
|
Total other
comprehensive income for the period
|
|
1,465
|
11,970
|
|
16,290
|
25,873
|
Total
comprehensive income (loss) for the period
|
|
8,992
|
(318,768)
|
|
26,486
|
(308,758)
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
Shareholders of the
Company
|
|
12,680
|
(317,894)
|
|
31,339
|
(306,469)
|
Non-controlling
interests
|
|
(3,688)
|
(874)
|
|
(4,853)
|
(2,289)
|
|
|
8,992
|
(318,768)
|
|
26,486
|
(308,758)
|
Please see the Financial Statements dated June 30, 2017 for notes to the accounts.
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,
|
|
|
|
|
|
|
|
|
|
|
Note
|
2017
|
2016
|
|
2017
|
2016
|
|
|
|
$
|
$
|
|
$
|
$
|
|
|
|
|
|
|
|
|
Cash flows generated
from (used in):
|
|
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
|
|
|
Profit (loss) for the
period from continuing operations
|
|
|
7,324
|
8,700
|
|
12,993
|
(899)
|
Items not
affecting cash:
|
|
|
|
|
|
|
|
Asset retirement
obligation accretion
|
|
|
523
|
449
|
|
1,047
|
898
|
Depreciation and
amortization
|
|
|
15,556
|
17,551
|
|
33,620
|
36,519
|
Unrealized foreign
exchange loss (gain)
|
|
|
(304)
|
3,068
|
|
(378)
|
2,422
|
Deferred income tax
recovery
|
|
|
(9,847)
|
(3,328)
|
|
(12,559)
|
(12,562)
|
Loss (gain) on
disposal of assets
|
|
|
(40)
|
(93)
|
|
267
|
196
|
Write-down of
assets
|
|
|
2,177
|
478
|
|
3,231
|
478
|
Loss (gain) on
marketable securities and other investments
|
|
|
(743)
|
565
|
|
(778)
|
4,881
|
Share based
payments
|
|
|
1,990
|
2,699
|
|
7,118
|
6,400
|
Defined benefit
pension plan expense
|
|
|
782
|
297
|
|
1,612
|
580
|
|
|
|
17,418
|
30,386
|
|
46,173
|
38,913
|
Property reclamation
payments
|
|
|
(496)
|
(814)
|
|
(1,087)
|
(894)
|
Changes in non-cash
working capital
|
|
9
|
(44,632)
|
(39,251)
|
|
(25,023)
|
(59,624)
|
Net cash provided
(used) by operating activities of continuing
operations
|
|
|
(27,710)
|
(9,679)
|
|
20,063
|
(21,605)
|
Net cash provided
by operating activities of discontinued operations
|
|
|
-
|
12,165
|
|
-
|
26,533
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
|
(75,047)
|
(61,568)
|
|
(148,884)
|
(120,888)
|
Proceeds from the
sale of property, plant and equipment
|
|
|
82
|
373
|
|
83
|
757
|
Proceeds on
pre-production sales and tailings retreatment
|
|
|
1,092
|
-
|
|
1,092
|
3,878
|
Purchase of
marketable securities
|
|
|
-
|
(692)
|
|
-
|
(2,526)
|
Proceeds from the
sale of marketable securities
|
|
|
-
|
378
|
|
-
|
3,665
|
Value added taxes
related to mineral property expenditures, net
|
|
|
(7,240)
|
-
|
|
16,345
|
-
|
Investment in term
deposits
|
|
|
(37,513)
|
(22)
|
|
(263,479)
|
(935)
|
Decrease (increase)
in restricted cash
|
|
|
(9,720)
|
7
|
|
(9,724)
|
(6)
|
Net cash used by
investing activities of continuing operations
|
|
|
(128,346)
|
(61,524)
|
|
(404,567)
|
(116,055)
|
Net cash used by
investing activities of discontinued operations
|
|
|
-
|
(4,431)
|
|
-
|
(9,573)
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
Issuance of common
shares for cash
|
|
|
32
|
-
|
|
586
|
-
|
Dividend paid to
shareholders
|
|
|
-
|
-
|
|
(10,610)
|
-
|
Purchase of treasury
stock
|
|
|
(3,252)
|
-
|
|
(5,301)
|
-
|
Long-term and bank
debt proceeds
|
|
|
-
|
30,000
|
|
-
|
30,000
|
Net cash provided
(used) by financing activities of continuing
operations
|
|
|
(3,220)
|
30,000
|
|
(15,325)
|
30,000
|
|
|
|
|
|
|
|
|
Decrease in cash
and cash equivalents
|
|
|
(159,276)
|
(33,469)
|
|
(399,829)
|
(90,700)
|
Cash and cash
equivalents - beginning of period
|
|
|
642,618
|
230,958
|
|
883,171
|
288,189
|
Cash and cash
equivalents - end of period
|
|
|
483,342
|
197,489
|
|
483,342
|
197,489
|
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
|
|
|
483,342
|
125,652
|
|
483,342
|
125,652
|
Please see the Financial Statements dated June 30, 2017 for notes to the accounts.
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,
|
|
|
|
|
|
|
|
|
|
2017
|
2016
|
|
2017
|
2016
|
|
|
$
|
$
|
|
$
|
$
|
|
|
|
|
|
|
|
Share
capital
|
|
|
|
|
|
|
Balance beginning of
period
|
|
2,819,821
|
5,319,101
|
|
2,819,101
|
5,319,101
|
|
Shares issued upon
exercise of share options, for cash
|
|
32
|
-
|
|
586
|
-
|
|
Transfer of
contributed surplus on exercise of options
|
|
10
|
-
|
|
176
|
-
|
|
Capital
reduction
|
|
-
|
(2,500,000)
|
|
-
|
(2,500,000)
|
Balance end of
period
|
|
2,819,863
|
2,819,101
|
|
2,819,863
|
2,819,101
|
|
|
|
|
|
|
|
Treasury
stock
|
|
|
|
|
|
|
Balance beginning of
period
|
|
(8,000)
|
(8,015)
|
|
(7,794)
|
(10,211)
|
|
Purchase of treasury
stock
|
|
(3,252)
|
-
|
|
(5,301)
|
-
|
|
Shares redeemed upon
exercise of restricted share units
|
|
196
|
-
|
|
2,039
|
2,196
|
Balance end of
period
|
|
(11,056)
|
(8,015)
|
|
(11,056)
|
(8,015)
|
|
|
|
|
|
|
|
Contributed
surplus
|
|
|
|
|
|
|
Balance beginning of
period
|
|
2,609,055
|
46,758
|
|
2,606,567
|
47,236
|
|
Share based
payments
|
|
2,811
|
2,369
|
|
7,308
|
5,503
|
|
Shares redeemed upon
exercise of restricted share units
|
|
(196)
|
-
|
|
(2,039)
|
(2,196)
|
|
Recognition of other
non-current liability and related costs
|
|
-
|
-
|
|
-
|
(1,416)
|
|
Reversal of other
current liability and related costs
|
|
-
|
52,900
|
|
-
|
52,900
|
|
Transfer to share
capital on exercise of options
|
|
(10)
|
-
|
|
(176)
|
-
|
|
Capital
reduction
|
|
-
|
2,500,000
|
|
|
2,500,000
|
Balance end of
period
|
|
2,611,660
|
2,602,027
|
|
2,611,660
|
2,602,027
|
|
|
|
|
|
|
|
Accumulated other
comprehensive loss
|
|
|
|
|
|
|
Balance beginning of
period
|
|
7,653
|
(6,669)
|
|
(7,172)
|
(20,572)
|
|
Other comprehensive
income for the period
|
|
1,465
|
11,970
|
|
16,290
|
25,873
|
Balance end of
period
|
|
9,118
|
5,301
|
|
9,118
|
5,301
|
|
|
|
|
|
|
|
Deficit
|
|
|
|
|
|
|
Balance beginning of
period
|
|
(1,934,800)
|
(1,586,351)
|
|
(1,928,024)
|
(1,583,873)
|
|
Dividends
paid
|
|
-
|
-
|
|
(10,610)
|
-
|
|
Profit (loss)
attributable to shareholders of the Company
|
|
11,215
|
(329,864)
|
|
15,049
|
(332,342)
|
Balance end of
period
|
|
(1,923,585)
|
(1,916,215)
|
|
(1,923,585)
|
(1,916,215)
|
Total equity
attributable to shareholders of the Company
|
|
3,506,000
|
3,502,199
|
|
3,506,000
|
3,502,199
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
|
|
|
|
Balance beginning of
period
|
|
87,621
|
168,340
|
|
88,786
|
169,755
|
|
Loss attributable to
non-controlling interests
|
|
(3,688)
|
(874)
|
|
(4,853)
|
(2,289)
|
Balance end of
period
|
|
83,933
|
167,466
|
|
83,933
|
167,466
|
|
|
|
|
|
|
|
Total
equity
|
|
3,589,933
|
3,669,665
|
|
3,589,933
|
3,669,665
|
Please see the Financial Statements dated June 30, 2017 for notes to the accounts.
SOURCE Eldorado Gold Corporation