Eldorado Gold Corporation (“Eldorado” or “the Company”) today
reports the Company’s financial and operational results for the
first quarter of 2020.
First Quarter 2020 and Subsequent Period
Highlights
- Proactive steps taken to manage the impact of the novel
coronavirus ("COVID-19") pandemic; operations maintained in Turkey
and Greece: The Company's mines in Turkey and Greece
remained operational throughout Q1. Measures to prevent the spread
of COVID-19 and ensure safe working environments were implemented
across Eldorado's global sites.
- Lamaque placed back into operations after temporary
suspension, permit for increased underground production
received: On March 25, 2020 in accordance with the Quebec
government-mandated restrictions to address the COVID-19 pandemic
in the province, the Company temporarily ceased mining and
processing operations at Lamaque. Operations were restarted on
April 15, 2020, however, exploration drilling activities continue
to be curtailed in accordance with the mandated restrictions. The
Company also received a Certificate of Authorization from the
Quebec Ministry of Environment to allow for the expansion of
Triangle underground mine production at Lamaque from 1,800 tonnes
per day ("tpd") to 2,650 tpd.
- Supporting our communities in response to COVID-19
pandemic: The Company has allocated an initial $500,000 of
financial and in-kind support to local communities in Turkey,
Canada, Greece, Romania and Brazil so that they may better respond
to impacts of the pandemic. Donations include: personal protective
equipment and sanitizing products, medical equipment for local
hospitals, and food and other supplies for vulnerable populations.
- Partial draw-down of credit facility as proactive
measure: On March 30, 2020, the Company drew $150 million
under its revolving credit facility as a proactive measure in light
of the uncertainty surrounding the COVID-19 pandemic. The Company
has no immediate need for the funds, however proceeds will be used
for general corporate purposes, as required.
- Steady production and 2020 annual guidance
maintained: Gold production totalled 115,950 ounces in Q1
2020, an increase of 40% from Q1 2019 production of 82,977 ounces.
Eldorado is maintaining its 2020 annual guidance of 520,000 -
550,000 ounces of gold at an all-in sustaining cost of $850 - 950
per ounce sold.
- All-in sustaining costs lower
quarter-on-quarter: Q1 2020 all-in-sustaining costs of
$952 per ounce sold were lower than Q1 2019 ($1,132 per ounce
sold).
- Strong financial liquidity: The Company
currently has $363.6 million of cash, cash equivalents and term
deposits and approximately $36 million available under the
remaining $100 million of the revolving credit facility, with $64
million of capacity on the facility allocated to secure certain
reclamation obligations in connection with its
operations.
- Net loss and adjusted net earnings attributable to
shareholders: Q1 2020 net loss attributable to
shareholders of the Company was $4.9 million or $0.03 loss per
share (Q1 2019: net loss attributable to shareholders of the
Company of $27.0 million, or $0.17 loss per share). Adjusted net
earnings attributable to shareholders of the Company in Q1 2020 was
$12.5 million, or $0.08 per share (Q1 2019: adjusted net loss
attributable to shareholders of the Company of $21.1 million, or
$0.13 loss per share).
- Increased EBITDA: Q1 2020 EBITDA was $84.7
million ($4.9 million in Q1 2019) and Q1 2020 adjusted EBITDA was
$90.0 million ($12.5 million in Q1 2019). Adjustments in both
periods included, among other things, share based compensation and
losses on asset disposals.
“Operational performance in the first quarter of
2020 was exceptional under extraordinary conditions as we
effectively responded to the global COVID-19 pandemic. I would like
to recognize the efforts of all of our employees who have worked
tirelessly and implemented the necessary controls to minimize risks
to our people, families, neighbouring communities and our
business”, said George Burns, President and CEO.
“The Company has been agile in its decision
making, including implementing proactive measures to protect its
balance sheet. With approximately $400 million in total liquidity
at quarter end, Eldorado is well capitalized and positioned to
maintain its strategic goals as we begin paying down our term loan
in June of this year. "
“At this time, we are maintaining our guidance
for 2020 and we will continue to evaluate capital allocation,
operational profitability and monitor the potential impacts of
COVID-19, including staffing levels. The sites are operating at
approximately 75% of normal levels as staff considered to be
high-risk have been asked to stay at home. We do not expect this to
affect production in the near term but we are reviewing the
potential longer term impact as certain discretionary activities
such as waste stripping, underground development and drilling are
temporarily reduced. We continue to track this situation
closely and are actively working with sites to transition back to
normal staffing levels.”
Consolidated Financial and Operational
Highlights
|
3 months ended March 31, |
|
|
2020 |
|
2019 |
Revenue (1) |
$ |
204.7 |
|
$ |
80.0 |
|
Gold revenue (1) |
$ |
183.7 |
|
$ |
54.5 |
|
Gold produced (oz) (2) |
|
115,950 |
|
|
82,977 |
|
Gold sold (oz) (1) |
|
116,219 |
|
|
43,074 |
|
Average realized gold price ($/oz sold) (6) |
$ |
1,580 |
|
$ |
1,265 |
|
Cash operating costs ($/oz sold) (3,6) |
|
627 |
|
|
625 |
|
Total cash costs ($/oz sold) (3,6) |
|
678 |
|
|
652 |
|
All-in sustaining costs ($/oz sold) (3,6) |
|
952 |
|
|
1,132 |
|
Net loss for the period (4) |
|
(4.9 |
) |
|
(27.0 |
) |
Net loss per share – basic ($/share) (4) |
|
(0.03 |
) |
|
(0.17 |
) |
Adjusted net earnings (loss) (4,5,6,7) |
|
12.5 |
|
|
(21.1 |
) |
Adjusted net earnings (loss) per share ($/share) (4,5,6,7) |
|
0.08 |
|
|
(0.13 |
) |
Cash flow from operating activities before changes in working
capital (6,8) |
|
69.4 |
|
|
8.2 |
|
Free cash flow (6) |
|
7.2 |
|
|
(64.0 |
) |
Cash, cash equivalents and term deposits |
$ |
363.6 |
|
$ |
227.5 |
|
- Excludes sales of inventory mined at Lamaque during the
pre-commercial production period (Q1 2019).
- Includes pre-commercial production at Lamaque (Q1 2019).
- By-product revenues are off-set against cash operating
costs.
- Attributable to shareholders of the Company.
- See reconciliation of net earnings (loss) to adjusted net
earnings (loss) in the MD&A section 'Non-IFRS
Measures'.
- These measures are non-IFRS measures. See the MD&A section
'Non-IFRS Measures' for explanations and discussion of these
non-IFRS measures.
- Q1 2019 has been adjusted to conform with 2020 presentation.
See the MD&A section 'Non-IFRS Measures' for detail.
- Q1 2019 amount has been adjusted to reflect reclassifications
in cash flow from operating activities in the current period.
Gold production of 115,950 ounces increased from
82,977 ounces in the first quarter of 2019. Gold sales in Q1 2020
totalled 116,219 ounces, compared with 43,074 ounces sold in Q1
2019. The higher sales volume compared with the prior year
reflected increases at all mines, primarily 26,728 ounces sold from
Lamaque following its commencement of commercial operations in
April 2019, an additional 24,345 ounces sold from Kisladag
following the resumption of mining activities in April 2019 and an
additional 17,403 ounces sold from Efemcukuru due to delays in
sales in Q1 2019.
Total revenue was $204.7 million in Q1 2020, an
increase of 156% from total revenue of $80.0 million in Q1 2019.
The increase was due to increased sales volumes combined with
higher gold prices and included $42.8 million of revenue
contributed by Lamaque following the commencement of commercial
operations in April 2019.
Cash operating costs in Q1 2020 averaged $627
per ounce sold, a slight increase from $625 per ounce sold in Q1
2019. The increase was primarily due to cash operating costs per
ounce sold at Efemcukuru and Lamaque being negatively impacted by
mining and processing lower-grade ore in the quarter, resulting in
fewer ounces produced. Cash operating costs per ounce sold at
Olympias were also negatively impacted by lower silver and base
metal prices, which reduce cash operating costs as by-product
credits. These increases were almost fully offset by a decrease in
cash operating costs per ounce sold at Kisladag in Q1 2020 as a
result of the partial reallocation of processing costs to ounces in
leach pad inventory following the resumption of mining in April
2019.
We reported a net loss attributable to
shareholders of $4.9 million ($0.03 loss per share) in Q1 2020,
compared to a net loss of $27.0 million ($0.17 loss per share) in
Q1 2019. Net loss in Q1 2020 is primarily attributable to increased
finance costs and increased tax expense in line with higher sales
volumes and the weakening of local currencies in which income tax
is determined.
Adjusted net earnings were $12.5 million ($0.08
per share) in Q1 2020, compared to adjusted net loss of $21.1
million ($0.13 loss per share) in Q1 2019. Adjusted net earnings in
Q1 2020 removes, among other things, a $12.2 million loss on
foreign exchange due to translation of deferred tax balances and
the $4.4 million loss on the non-cash revaluation of the derivative
related to redemption options in our debt.
Response to the COVID-19
Pandemic
On March 11, 2020, COVID-19 was declared a
global pandemic by the World Health Organization. In response,
governments in numerous jurisdictions, including those where we
operate, implemented emergency measures including travel
restrictions, suspension of non-essential operations and changes to
behaviour intended to reduce the spread of the virus.
We have taken steps and implemented global
preventative measures to ensure a safe working environment for our
employees and contractors and to prevent the spread of COVID-19.
These include:
- Task observations to ensure that workplace controls in place
are effective in maintaining physical distance. Procedures will be
modified where necessary to create safe distance. Tasks that cannot
be effectively modified are discontinued until an appropriate
change can be implemented.
- Pre-emptive measures such as temperature screening before
accessing sites, encouraging increased hand-washing and
physical-distancing and limiting all non-essential travel.
- Advising employees to stay at home if they are at risk or have
family members at home at risk.
- Following recommendations of the World Health Organization,
local health authorities and advice of jurisdictional governments.
We have taken precautionary steps to educate our employees about
the symptoms and transmission of the virus with clear instructions
on what to do if they feel unwell.
- Isolation procedures, should an employee or contractor test
positive for COVID-19.
- Limiting access to our offices and sites to essential people
only to reduce unnecessary exposure. We have also implemented
controls during delivery of supplies and materials to our offices
and sites.
- Working with local communities to distribute hygiene supplies
and to educate them on preventative measures to reduce the spread
of the virus.
We have been prudent in preparing for the
uncertainty around COVID-19 and how it will affect our business. We
implemented a crisis management plan in early March and are
continuing to optimize and improve our approach to this situation
through observations and learning, sharing information across our
sites and across our industry. We continue to monitor our operating
environments closely and are continuing to take proactive steps to
protect the health and safety of our workforce, their families and
our neighbouring communities.
Operations Update
Gold Operations
|
3 months ended March 31, |
|
|
2020 |
|
2019 |
Total |
|
|
Ounces produced (1) |
|
115,950 |
|
|
82,977 |
|
Ounces sold (2, 4) |
|
116,219 |
|
|
43,074 |
|
Cash operating costs ($/oz sold) (4,5) |
$ |
627 |
|
$ |
625 |
|
All-in sustaining costs ($/oz sold) (4,5) |
$ |
952 |
|
$ |
1,132 |
|
Sustaining capital expenditures (5) |
$ |
19.4 |
|
$ |
10.8 |
|
Kisladag |
|
|
Ounces produced (3) |
|
50,176 |
|
|
27,247 |
|
Ounces sold |
|
51,600 |
|
|
27,255 |
|
Cash operating costs ($/oz sold) (5) |
$ |
451 |
|
$ |
558 |
|
All-in sustaining costs ($/oz sold) (5) |
$ |
578 |
|
$ |
703 |
|
Sustaining capital expenditures (5) |
$ |
3.0 |
|
$ |
3.1 |
|
Lamaque |
|
|
Ounces produced (1) |
|
27,353 |
|
|
19,678 |
|
Ounces sold (2) |
|
26,728 |
|
n/a |
|
Cash operating costs ($/oz sold) (5) |
$ |
641 |
|
n/a |
|
All-in sustaining costs ($/oz sold) (5) |
$ |
1,042 |
|
n/a |
|
Sustaining capital expenditures (5) |
$ |
8.3 |
|
n/a |
|
Efemcukuru |
|
|
Ounces produced |
|
23,239 |
|
|
26,124 |
|
Ounces sold (4) |
|
23,221 |
|
|
5,818 |
|
Cash operating costs ($/oz sold) (4,5) |
$ |
642 |
|
$ |
636 |
|
All-in sustaining costs ($/oz sold) (4,5) |
$ |
864 |
|
$ |
1,394 |
|
Sustaining capital expenditures (5) |
$ |
3.1 |
|
$ |
3.6 |
|
Olympias |
|
|
Ounces produced |
|
15,182 |
|
|
9,928 |
|
Ounces sold |
|
14,670 |
|
|
10,001 |
|
Cash operating costs ($/oz sold) (5) |
$ |
1,196 |
|
$ |
800 |
|
All-in sustaining costs ($/oz sold) (5) |
$ |
1,646 |
|
$ |
1,284 |
|
Sustaining capital expenditures (5) |
$ |
5.0 |
|
$ |
4.1 |
|
- Includes pre-commercial production at Lamaque (Q1 2019).
- Excludes sales of inventory produced at Lamaque during the
pre-commercial production period (Q1 2019).
- Kisladag resumed mining, crushing and placing ore on the heap
leach pad on April 1, 2019. This activity had been suspended since
April 2018.
- Efemcukuru unit costs in Q1 2019 were impacted by lower ounces
sold resulting from delayed shipments in Q1 2019 that were
completed in Q2 2019.
- These measures are non-IFRS measures. See the MD&A section
'Non-IFRS Measures' for explanations and discussion of these
non-IFRS measures.
Conference Call
A conference call to discuss the details of the
Company’s Q1 2020 results will be held by senior management on
Friday, May 1, 2020 at 8:30 AM PT (11:30 AM ET). The call will be
webcast and can be accessed at Eldorado Gold’s website:
www.eldoradogold.com and via this link:
http://services.choruscall.ca/links/eldoradogold20200501.html.
Conference
Call Details |
|
Replay
(available until June 5, 2020) |
Date: |
May 1, 2020 |
|
Vancouver: |
+1 604 638 9010 |
Time: |
8:30 am PT (11:30 am ET) |
|
Toll Free: |
+1 800 319 6413 |
Dial in: |
+1 604 638 5340 |
|
Access code: |
4286 |
Toll free: |
+1 800 319 4610 |
|
|
|
About Eldorado Gold
Eldorado is a gold and base metals producer with
mining, development and exploration operations in Turkey, Canada,
Greece, Romania, and Brazil. The Company has a highly skilled and
dedicated workforce, safe and responsible operations, a portfolio
of high-quality assets, and long-term partnerships with local
communities. Eldorado's common shares trade on the Toronto Stock
Exchange (TSX: ELD) and the New York Stock Exchange (NYSE:
EGO).
Contacts
Investor Relations
Peter Lekich, Manager Investor
Relations604.687.4018 or 1.888.353.8166
peter.lekich@eldoradogold.com
Media
Louise Burgess, Director Communications &
Government Relations604.687.4018 or 1.888.353.8166
louise.burgess@eldoradogold.com
Non-IFRS Measures
Certain non-IFRS measures are included in this
press release, including average realized gold price per ounce
sold, cash operating costs and cash operating costs per ounce sold,
total cash costs and total cash costs per ounce sold, all-in
sustaining costs ("AISC") and AISC per ounce sold, adjusted net
earnings/(loss), adjusted net earnings/(loss) per share, working
capital, cash flow from operations before changes in non-cash
working capital, earnings before interest, taxes and depreciation
and amortization ("EBITDA") and adjusted earnings before interest,
taxes and depreciation and amortization ("Adjusted EBITDA"), free
cash flow and sustaining capital. Please see the March 31,
2020 MD&A for explanations and discussion of these non-IFRS
measures. The Company believes that these measures, in addition to
conventional measures prepared in accordance with International
Financial Reporting Standards (“IFRS”), provide investors an
improved ability to evaluate the underlying performance of the
Company. The non-IFRS measures are intended to provide additional
information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. These measures do not have any standardized meaning
prescribed under IFRS, and therefore may not be comparable to other
issuers.
Cautionary Note about Forward-looking Statements and
Information
Certain of the statements made and information
provided in this press release are forward-looking statements or
information within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and applicable Canadian
securities laws. Often, these forward-looking statements and
forward-looking information can be identified by the use of words
such as "plans", "expects", "is expected", "budget", “continue”,
“projected”, "scheduled", "estimates", "forecasts", "intends",
"anticipates", or "believes" or the negatives thereof or variations
of such words and phrases or statements that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved.
Forward-looking statements or information
contained in this release include, but are not limited to,
statements or information with respect to: the duration, extent and
other implications of COVID-19 and any restrictions and suspensions
with respect to our operations, our guidance and outlook, including
expected production, cost guidance and recoveries of gold,
favourable economics for our heap leaching plan and the ability to
extend mine life at our projects, including at Kisladag through
further metallurgical tests on deeper material, completion and
results of waste stripping at Kisladag, improved production at
Olympias, completion and results of construction and the PEA at
Lamaque, completion of construction at Skouries, planned capital
and exploration expenditures; our expectation as to our future
financial and operating performance, expected metallurgical
recoveries, gold price outlook and the global concentrate market;
and our strategy, plans and goals, including our proposed
exploration, development, construction, permitting and operating
plans and priorities and related timelines and schedules and
results of litigation and arbitration proceedings.
Forward-looking statements and forward-looking
information by their nature are based on assumptions and involve
known and unknown risks, market uncertainties and other factors,
which may cause the actual results, performance or achievements of
the Company to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements or information.
We have made certain assumptions about the
forward-looking statements and information, including assumptions
about how the world-wide economic and social impact of COVID-19 is
managed and the duration and extent of the COVID 19 pandemic,
geopolitical, economic, permitting and legal climate that we
operate in; the future price of gold and other commodities; the
global concentrate market; exchange rates; anticipated costs 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: global outbreaks of infectious diseases, including
COVID-19, results of further testwork, recoveries of gold and other
metals; geopolitical and economic climate (global and local), risks
related to mineral tenure and permits; gold and other commodity
price volatility; continued softening of the global concentrate
market; risks regarding potential and pending litigation and
arbitration proceedings relating to the Company’s, business,
properties and operations; expected impact on reserves and the
carrying value; the updating of the reserve and resource models and
life of mine plans; mining operational and development risk;
financing risks, foreign country operational risks; risks of
sovereign investment; regulatory risks and liabilities including,
environmental regulatory restrictions and liability; discrepancies
between actual and estimated production, mineral reserves and
resources and metallurgical testing and recoveries; additional
funding requirements; currency fluctuations; community and
non-governmental organization actions; speculative nature of gold
exploration; dilution; share price volatility and the price of the
common shares of the Company; competition; loss of key employees;
and defective title to mineral claims or properties, as well as
those risk factors discussed in the sections titled
“Forward-Looking Statements” and "Risk factors in our business" in
the Company's most recent Annual Information Form & Form
40-F. The reader is directed to carefully review the detailed risk
discussion in our most recent Annual Information Form filed on
SEDAR and EDGAR under our Company name, which discussion is
incorporated by reference in this release, for a fuller
understanding of the risks and uncertainties that affect the
Company’s business and operations.
Forward-looking statements and information is
designed to help you understand management’s current views of our
near and longer term prospects, and it may not be appropriate for
other purposes.
There can be no assurance that forward-looking
statements or information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, you should not place
undue reliance on the forward-looking statements or information
contained herein. Except as required by law, we do not expect to
update forward-looking statements and information continually as
conditions change.
Financial Information and condensed statements
contained herein or attached hereto may not be suitable for readers
that are unfamiliar with the Company and is not a substitute for
reading the Company’s financial statements and related MD&A
available on our website and on SEDAR and EDGAR under our Company
name. The reader is directed to carefully review such document for
a full understanding of the financial information summarized
herein.
Except as otherwise noted, scientific and
technical information contained in this press release was reviewed
and approved by Paul Skayman, FAusIMM, Special Advisor to the Chief
Operating Officer for Eldorado Gold Corporation, and a "qualified
person" under NI 43-101.
Eldorado
Gold CorporationCondensed Consolidated Interim
Statements of Financial Position (Unaudited – in
thousands of U.S. dollars) |
|
|
|
|
|
|
As at |
Note |
|
March 31, 2020 |
|
December 31, 2019 |
ASSETS |
|
|
|
|
|
Current
assets |
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
308,780 |
|
|
$ |
177,742 |
|
Term deposits |
|
|
54,800 |
|
|
3,275 |
|
Marketable securities |
|
|
2,889 |
|
|
3,828 |
|
Accounts receivable and other |
4 |
|
71,506 |
|
|
75,310 |
|
Inventories |
5 |
|
165,579 |
|
|
163,234 |
|
Current portion of employee benefit plan assets |
|
|
5,777 |
|
|
— |
|
Assets held for sale |
|
|
11,956 |
|
|
12,471 |
|
|
|
|
621,287 |
|
|
435,860 |
|
Restricted cash |
|
|
1,906 |
|
|
3,080 |
|
Other assets |
|
|
29,145 |
|
|
22,943 |
|
Employee benefit plan
assets |
|
|
— |
|
|
6,244 |
|
Property, plant and
equipment |
|
|
4,067,082 |
|
|
4,088,202 |
|
Goodwill |
|
|
92,591 |
|
|
92,591 |
|
|
|
|
$ |
4,812,011 |
|
|
$ |
4,648,920 |
|
LIABILITIES &
EQUITY |
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
Accounts payable and accrued liabilities |
|
|
$ |
131,067 |
|
|
$ |
139,104 |
|
Current portion of lease liabilities |
|
|
9,409 |
|
|
9,913 |
|
Current portion of debt |
6 |
|
216,667 |
|
|
66,667 |
|
Current portion of asset retirement obligations |
|
|
1,783 |
|
|
1,782 |
|
Current portion of employee benefit plan obligations |
|
|
1,080 |
|
|
— |
|
Liabilities associated with assets held for sale |
|
|
4,219 |
|
|
4,257 |
|
|
|
|
364,225 |
|
|
221,723 |
|
Debt |
6 |
|
418,458 |
|
|
413,065 |
|
Lease liabilities |
|
|
13,148 |
|
|
15,143 |
|
Employee benefit plan
obligations |
|
|
17,084 |
|
|
18,224 |
|
Asset retirement
obligations |
|
|
94,175 |
|
|
94,235 |
|
Deferred income tax
liabilities |
|
|
415,413 |
|
|
412,717 |
|
|
|
|
1,322,503 |
|
|
1,175,107 |
|
Equity |
|
|
|
|
|
Share capital |
10 |
|
3,075,100 |
|
|
3,054,563 |
|
Treasury stock |
|
|
(8,314 |
) |
|
(8,662 |
) |
Contributed surplus |
|
|
2,628,820 |
|
|
2,627,441 |
|
Accumulated other
comprehensive loss |
|
|
(30,062 |
) |
|
(28,966 |
) |
Deficit |
|
|
(2,234,747 |
) |
|
(2,229,867 |
) |
Total equity
attributable to shareholders of the Company |
|
|
3,430,797 |
|
|
3,414,509 |
|
Attributable to
non-controlling interests |
|
|
58,711 |
|
|
59,304 |
|
|
|
|
3,489,508 |
|
|
3,473,813 |
|
|
|
|
$ |
4,812,011 |
|
|
$ |
4,648,920 |
|
Approved on behalf of the Board of
Directors
(Signed) John
Webster Director
(Signed) George Burns
Director
Date of approval:
April 30, 2020
Eldorado
Gold CorporationCondensed Consolidated Interim
Statements of Operations For the three months ended
March 31, 2020 and 2019(Unaudited – in thousands of U.S. dollars
except share and per share amounts) |
|
|
|
|
|
|
|
Note |
|
Three months ended March 31, 2020 |
|
Three months ended March 31, 2019 |
Revenue |
|
|
|
|
|
Metal sales |
7 |
|
$ |
204,655 |
|
|
$ |
80,024 |
|
|
|
|
|
|
|
Cost of
sales |
|
|
|
|
|
Production costs |
|
|
101,362 |
|
|
51,921 |
|
Depreciation and
amortization |
|
|
52,363 |
|
|
20,161 |
|
|
|
|
153,725 |
|
|
72,082 |
|
|
|
|
|
|
|
Earnings from mine
operations |
|
|
50,930 |
|
|
7,942 |
|
|
|
|
|
|
|
Exploration and evaluation
expenses |
|
|
3,227 |
|
|
5,365 |
|
Mine standby costs |
8 |
|
4,030 |
|
|
7,993 |
|
General and administrative
expenses |
|
|
8,287 |
|
|
6,953 |
|
Employee benefit plan
expense |
|
|
691 |
|
|
599 |
|
Share-based payments
expense |
11 |
|
1,795 |
|
|
2,902 |
|
Write-down of assets |
|
|
203 |
|
|
17 |
|
Foreign exchange gain |
|
|
(762 |
) |
|
(245 |
) |
Earnings (loss) from
operations |
|
|
33,459 |
|
|
(15,642 |
) |
|
|
|
|
|
|
Other (loss) income |
9 |
|
(1,320 |
) |
|
1,633 |
|
Finance costs |
9 |
|
(16,207 |
) |
|
(7,331 |
) |
Earnings (loss) from
operations before income tax |
|
|
15,932 |
|
|
(21,340 |
) |
|
|
|
|
|
|
Income tax expense |
|
|
21,405 |
|
|
6,032 |
|
Net loss for the
period |
|
|
$ |
(5,473 |
) |
|
$ |
(27,372 |
) |
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
|
Shareholders of the
Company |
|
|
(4,880 |
) |
|
(26,965 |
) |
Non-controlling interests |
|
|
(593 |
) |
|
(407 |
) |
Net loss for the
period |
|
|
$ |
(5,473 |
) |
|
$ |
(27,372 |
) |
|
|
|
|
|
|
Weighted average number of
shares outstanding (thousands) |
|
|
|
|
|
Basic |
|
|
165,211 |
|
|
158,318 |
|
Diluted |
|
|
165,211 |
|
|
158,318 |
|
|
|
|
|
|
|
Net loss per share
attributable to shareholders of the Company: |
|
|
|
|
|
Basic loss per share |
|
|
$ |
(0.03 |
) |
|
$ |
(0.17 |
) |
Diluted loss per share |
|
|
$ |
(0.03 |
) |
|
$ |
(0.17 |
) |
Eldorado
Gold CorporationCondensed Consolidated Interim
Statements of Comprehensive LossFor the three months ended
March 31, 2020 and 2019(Unaudited – in thousands of U.S.
dollars) |
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2020 |
|
Three months ended March 31, 2019 |
|
|
|
|
|
|
Net loss for the period |
|
|
$ |
(5,473 |
) |
|
$ |
(27,372 |
) |
Other comprehensive
(loss) income: |
|
|
|
|
|
Items that will not be
reclassified to earnings or loss: |
|
|
|
|
|
Change in fair value of investments in equity securities, net of
tax |
|
|
(868 |
) |
|
147 |
|
Actuarial losses on employee benefit plans, net of tax |
|
|
(228 |
) |
|
(346 |
) |
Total other
comprehensive loss for the period |
|
|
(1,096 |
) |
|
(199 |
) |
Total comprehensive
loss for the period |
|
|
$ |
(6,569 |
) |
|
$ |
(27,571 |
) |
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
|
Shareholders of the
Company |
|
|
(5,976 |
) |
|
(27,164 |
) |
Non-controlling interests |
|
|
(593 |
) |
|
(407 |
) |
|
|
|
$ |
(6,569 |
) |
|
$ |
(27,571 |
) |
Eldorado
Gold CorporationCondensed Consolidated Interim
Statements of Cash Flows For the three months ended
March 31, 2020 and 2019(Unaudited – in thousands of U.S.
dollars) |
|
|
|
|
|
|
|
Note |
|
Three months ended March 31, 2020 |
|
Three months ended March 31, 2019 |
Cash flows generated from
(used in): |
|
|
|
|
|
Operating
activities |
|
|
|
|
|
Net loss for the period |
|
|
$ |
(5,473 |
) |
|
$ |
(27,372 |
) |
Items not affecting cash: |
|
|
|
|
|
Depreciation and
amortization |
|
|
52,927 |
|
|
19,942 |
|
Finance costs |
|
|
16,224 |
|
|
7,331 |
|
Interest income |
|
|
(389 |
) |
|
(1,215 |
) |
Unrealized foreign exchange
gain |
|
|
(2,538 |
) |
|
(173 |
) |
Income tax expense |
|
|
21,405 |
|
|
6,032 |
|
Write-down of assets |
|
|
203 |
|
|
17 |
|
Loss on disposal of
assets |
|
|
2,454 |
|
|
62 |
|
Share-based payments
expense |
11 |
|
1,795 |
|
|
2,902 |
|
Employee benefit plan
expense |
|
|
691 |
|
|
599 |
|
|
|
|
87,299 |
|
|
8,125 |
|
Property reclamation
payments |
|
|
(526 |
) |
|
(900 |
) |
Employee benefit plan
payments |
|
|
(236 |
) |
|
— |
|
Income taxes paid |
|
|
(14,719 |
) |
|
— |
|
Interest paid |
|
|
(2,770 |
) |
|
(250 |
) |
Interest received |
|
|
389 |
|
|
1,215 |
|
Changes in non-cash working
capital |
12 |
|
(16,170 |
) |
|
(8,818 |
) |
Net cash generated
from (used in) operating activities |
|
|
53,267 |
|
|
(628 |
) |
|
|
|
|
|
|
Investing
activities |
|
|
|
|
|
Purchase of property, plant
and equipment |
|
|
(40,482 |
) |
|
(65,920 |
) |
Proceeds from the sale of
property, plant and equipment |
|
|
22 |
|
|
380 |
|
Proceeds on pre-commercial
production sales, net |
|
|
— |
|
|
4,553 |
|
Value added taxes related to
mineral property expenditures, net |
|
|
(5,651 |
) |
|
(2,371 |
) |
Increase in term deposits |
|
|
(51,525 |
) |
|
(26 |
) |
Decrease (increase) in
restricted cash |
|
|
1,174 |
|
|
(446 |
) |
Net cash used in
investing activities |
|
|
(96,462 |
) |
|
(63,830 |
) |
|
|
|
|
|
|
Financing
activities |
|
|
|
|
|
Cash received for issuance of
common shares |
|
|
26,836 |
|
|
— |
|
Proceeds from borrowings |
6 |
|
150,000 |
|
|
— |
|
Principal portion of lease
liabilities |
|
|
(2,534 |
) |
|
(1,074 |
) |
Net cash generated
from (used in) financing activities |
|
|
174,302 |
|
|
(1,074 |
) |
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents |
|
|
131,107 |
|
|
(65,532 |
) |
Cash and cash
equivalents - beginning of period |
|
|
177,742 |
|
|
286,312 |
|
Cash decrease in disposal
group held for sale |
|
|
(69 |
) |
|
— |
|
Cash and cash
equivalents - end of period |
|
|
$ |
308,780 |
|
|
$ |
220,780 |
|
Eldorado
Gold CorporationCondensed Consolidated Interim
Statements of Changes in Equity For the three months
ended March 31, 2020 and 2019(Unaudited – in thousands of U.S.
dollars) |
|
|
|
|
|
|
|
Note |
|
Three months ended March 31, 2020 |
|
Three months ended March 31, 2019 |
Share
capital |
|
|
|
|
|
Balance beginning of period |
|
|
$ |
3,054,563 |
|
|
$ |
3,007,924 |
|
Shares issued upon exercise of share options, for cash |
|
|
424 |
|
|
— |
|
Transfer of contributed surplus on exercise of options |
|
|
170 |
|
|
— |
|
Shares issued to the public, net of share issuance costs |
|
|
19,943 |
|
|
— |
|
Balance end of period |
10 |
|
$ |
3,075,100 |
|
|
$ |
3,007,924 |
|
|
|
|
|
|
|
Treasury
stock |
|
|
|
|
|
Balance beginning of
period |
|
|
$ |
(8,662 |
) |
|
$ |
(10,104 |
) |
Shares redeemed upon exercise of restricted share units |
|
|
348 |
|
|
835 |
|
Balance end of period |
|
|
$ |
(8,314 |
) |
|
$ |
(9,269 |
) |
|
|
|
|
|
|
Contributed
surplus |
|
|
|
|
|
Balance beginning of
period |
|
|
$ |
2,627,441 |
|
|
$ |
2,620,799 |
|
Share-based payments |
|
|
1,897 |
|
|
1,902 |
|
Shares redeemed upon exercise of restricted share units |
|
|
(348 |
) |
|
(835 |
) |
Transfers to share
capital on exercise of options |
|
|
(170 |
) |
|
— |
|
Balance end of period |
|
|
$ |
2,628,820 |
|
|
$ |
2,621,866 |
|
|
|
|
|
|
|
Accumulated other
comprehensive loss |
|
|
|
|
|
Balance beginning of
period |
|
|
$ |
(28,966 |
) |
|
$ |
(24,494 |
) |
Other comprehensive loss for the period |
|
|
(1,096 |
) |
|
(199 |
) |
Balance end of period |
|
|
$ |
(30,062 |
) |
|
$ |
(24,693 |
) |
|
|
|
|
|
|
Deficit |
|
|
|
|
|
Balance beginning of
period |
|
|
$ |
(2,229,867 |
) |
|
$ |
(2,310,453 |
) |
Loss attributable to shareholders of the Company |
|
|
(4,880 |
) |
|
(26,965 |
) |
Balance end of period |
|
|
$ |
(2,234,747 |
) |
|
$ |
(2,337,418 |
) |
Total equity
attributable to shareholders of the Company |
|
|
$ |
3,430,797 |
|
|
$ |
3,258,410 |
|
|
|
|
|
|
|
Non-controlling
interests |
|
|
|
|
|
Balance beginning of
period |
|
|
$ |
59,304 |
|
|
$ |
63,414 |
|
Loss attributable to non-controlling interests |
|
|
(593 |
) |
|
(407 |
) |
Balance end of period |
|
|
$ |
58,711 |
|
|
$ |
63,007 |
|
Total
equity |
|
|
$ |
3,489,508 |
|
|
$ |
3,321,417 |
|
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