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VANCOUVER, British Columbia, February 22, 2019 (GLOBE NEWSWIRE) – Eldorado Gold Corporation ("Eldorado" or "the Company") today announces that the Company will file a new declaration on SEDAR at the address www.sedar.com, under the profile of the company. Audited Consolidated Financial Statements Years ended December 31, 2018 and 2017 Related Management's Discussion and Analysis to correct certain typographical errors described at the end of this release.
In addition, the Company reissues its updated press release titled "Eldorado Gold Reports 2018 Financial and Operating Results for the End of Fiscal 2011 and the Fourth Quarter", to correct the typographical errors contained in the previous version. , described at the end of this release. .
Overview of end-of-year financial and operating results (1)
- 2018 Production was ahead of schedule: Annual gold production of 349,147 ounces of gold (2017: 292,971 ounces), of which 35,350 ounces of pre-commercial Lamaque production.
◦ Exceeded the initial forecast for 2018 of 290,000 to 330,000 ounces of gold. - Forecasts for 2019 have increased by about 27% over one year: The forecast for 2019 is 390,000 to 420,000 ounces of gold (by press release of January 30, 2019).
- Progress in Lamaque: A total of 35,350 pre-commercial ounces were produced during the fiscal year, including the first gold inflow from ore processed in the Sigma mill in December 2018. Capital of $ 189.9 million, including capitalized operations, was spent in Lamaque in 2018, for a sum of $ 39.7 million. pre-commercial income. The company is expected to be in commercial operation in Lamaque in the first quarter of 2019.
- Increase in income: Total revenue from continuing operations during the year was $ 459.0 million ($ 391.4 million in 2017). Gold products from continuing operations amounted to $ 386.0 million ($ 333.3 million in 2017) for sales of 304,256 ounces of gold at an average realized price of $ 1,269 per ounce (2017). : 264,080 ounces at $ 1,262 per ounce).
- Increase in cash flows from continuing operations: Net cash provided by operating activities from continuing operations was $ 66.3 million in 2018 ($ 30.8 million in 2017).
- Cash operating costs in line with forecasts: Cash operating costs amounted to $ 625 per ounce sold for 2018 ($ 509 per ounce in 2017) and were in line with expectations of $ 600 to $ 650 per ounce for 2018.
- Maintaining a strong financial liquidity: The company closed the fiscal year with total cash of approximately $ 543 million, of which $ 293 million in cash, cash equivalents and term deposits and $ 250 million in unused credit line.
- Net loss attributable to shareholders: 2018 Net loss attributable to shareholders of the Company from continuing operations is $ 361.9 million, or $ 2.28 per share, primarily due to valuation adjustments of $ 447.8 for Olympias and Kisladag. The net loss attributable to the Company's shareholders from continuing operations in 2017 is $ 7.1 million, or $ 0.07 per share. The Company's adjusted net loss attributable to shareholders in 2018 is $ 28.6 million, or $ 0.17 per share (2017: adjusted net income attributed to shareholders of the Company of $ 15.2 million). dollars, or $ 0.10 per share).
- Starting Olympias: Olympias reported commercial production as of December 31, 2017. In 2018, a total of 322,659 tonnes of ore at an average grade of 7.75 g / t Au resulted in 46,750 ounces of gold produced , at operating costs of $ 764 an ounce sold.
- Kisladag Heap Leach: Following the decision to suspend ore development on the platform in the second quarter of 2018, recoveries continued to improve, resulting in production of 172,009 ounces for the year. In the third quarter of 2018, following completion of the feasibility study and Board approval to advance the Kisladag mill project, a review of the useful life of heap leach badets Kisladag resulted in an impairment charge of $ 117.6 million deferred tax) recognized in the third quarter. In January 2019, the Company announced the decision to suspend the plant project and resume operation of the site before the end of the first quarter of 2019.
- Free cash flow from the recovery of mining and heap leach operations in Kisladag: Provide an opportunity to consider the initial debt repayment beginning in late 2019.
1 In this press release, we use cash operating costs per ounce sold, all-in sustaining cost, gold mining operating profit, adjusted net income, average realized price per ounce sold, earnings before interest. , taxes and amortization and amortization of continuing operations, adjusted earnings before interest, taxes and amortization of continuing operations, working capital, undisbursed operating costs, cash operating costs per ounce sold and cash flows from operations before changes non-cash working capital, as additional measures of the company's performance. These are non-IFRS measures. Please refer to the December 31, 2018 MD & A for an explanation and discussion of these non-IFRS measures.
Highlights of the fourth quarter of 2018
- First gold paid to Lamaque: A total of 16,046 ounces of gold were produced during the quarter, including the first casting of gold from ore processed at the Sigma plant in December.
- Stable operating cash costs: Fourth-quarter cash operating costs of $ 626 per ounce and all-in sustaining costs of $ 1,200 per ounce, including $ 21 per ounce of non-cash operating costs related to the change in cash costs. inventories, were in line with the fourth quarter of 2017 ($ 577 per ounce and $ 1,104 per ounce, respectively). 2017).
- Reserves and resources updated: As of September 30, 2018, total proved and probable reserves of 389 million tonnes at 1.35 grams per tonne of gold containing 16.9 million ounces have been reported.
Addition of new reserves of 60,000 ounces of gold to Lamaque
◦ Replacement of depletion of 80,000 ounces of gold at Efemcukuru
◦ Added 572,000 ounces of gold to Lamaque's inferred resources, which now total 1.8 million ounces of gold.
◦ First alleged resource of 381 million tonnes in Bolcana, Romania, at 0.53 grams per tonne of gold and 0.18% copper containing 6.5 million ounces of gold and 686,000 tonnes of copper. - Consolidation of actions: In December 2018, the company completed a 5: 1 consolidation of its common shares.
Eldorado President and CEO George Burns said, "Thanks to the hard work of the team in 2018, we are well positioned to bring the annual gold production to more than 500,000 ounces. 2020. We hope this will enable us to generate significant free cash flow. and give us an opportunity to consider debt repayment later this year.
"The restart of mining and heap leaching in Kisladag is a key element of our way forward. With the improvement in heap leach recoveries, we expect our revised plan to increase free cash flow over the next three years.
"The growth of Eldorado is also supported by the dynamism of Lamaque. Less than two years after the acquisition of the badet, we will begin commercial gold production later in the quarter. We expect Lamaque's total production, including pre-commercial production, to exceed 100,000 ounces in 2019. We continue to focus on opportunities for expansion through resource conversion, exploration drilling, and drilling. to increase the grinder feed to this main badet.
"For the future, I am confident for our future. Eldorado is a focused gold producer with strong badets and a team dedicated to generating long-term shareholder value. "
| Consolidated financial and operating highlights | ||||
| Summary annual financial results | ||||
| (Continuing operations, unless otherwise indicated) | ||||
| 2018 | 2017 | |||
| Returned | $ 459.0 | $ 391.41 | ||
| Gold income | $ 386.0 | $ 333.3 | ||
| Gold produced | 349.147 | 292 971 | ||
| Gold sold (oz) 6 | 304,256 | 264,080 | ||
| Average realized gold price ($ / oz) | $ 1,269 | $ 1,262 | ||
| Cash operating costs ($ / oz) 5 | 625 | 509 | ||
| Total cash costs ($ / ounce) 5 | 650 | 534 | ||
| All-in support cost ($ / oz) 5 | 994 | 922 | ||
| Net income from gold mining activities | 83.5 | 121.2 | ||
| Net loss 1, 2 | (361.9 | ) | (9.9 | ) |
| Net loss per share – basic ($ / share) 1, 2 | (2.28 | ) | (0.07 | ) |
| Adjusted net income 1, 2, 7 | (28.6 | ) | 15.2 | |
| Adjusted net earnings per share ($ / share) 1, 2 | (0.17 | ) | 0.10 | |
| Cash flow from operating activities 3 | 61.3 | 66.5 | ||
| Dividends paid | – | (10.6) | ||
| Cash, cash equivalents and term deposits | 293.0 | 485.0 | ||
| Total badets | 4,628.9 | 5,090.3 | ||
| Total long-term financial liabilities 4 | $ 710.2 | $ 703.7 | ||
(1) Includes discontinued operations – China in 2017.
(2) Attributable to the shareholders of the company.
(3) Before changes in non-cash working capital.
(4) Includes all long-term liabilities, except deferred tax liabilities.
(5) By-product products are deducted from costs.
(6) Pre-commercial sales of Lamaque and Olympias are excluded.
| Summary quarterly financial results | ||||||||||
| (Continuing operations, unless otherwise indicated) | ||||||||||
| 2018 | Q1 | Q2 | Q3 | Q4 | 2018 | |||||
| Returned | $ 131.9 | $ 153.2 | $ 81.1 | $ 92.8 | $ 459.0 | |||||
| Gold income | $ 115.4 | $ 121.3 | $ 76.0 | $ 73.3 | $ 386.0 | |||||
| Gold produced (oz) | 86,634 | 99105 | 84,783 | 75,887 | 349.147 | |||||
| Gold sold (oz) 5 | 86,587 | 94,224 | 64,589 | 58,856 | 304,256 | |||||
| Average realized gold price ($ / oz) | $ 1,333 | $ 1,287 | $ 1,177 | $ 1,245 | $ 1,269 | |||||
| Cash Operating Cost ($ / ounce) 4 | 571 | 587 | 754 | 626 | 625 | |||||
| Total cash costs ($ / oz) 4 | 598 | 610 | 762 | 666 | 650 | |||||
| All-in support cost ($ / oz) 4 | 878 | 934 | 1,112 | 1200 | 994 | |||||
| Net income from gold mining activities | 34.7 | 30.1 | 4.7 | 14.0 | 83.5 | |||||
| Net profit 1, 2 | 8.7 | (24.4 | ) | (128.0 | ) | (218.2 | ) | (361.9 | ) | |
| Net earnings (loss) per share – basic ($ / share) 1, 2 | 0.06 | (0.15 | ) | (0.81 | ) | (1.38 | ) | (2.28 | ) | |
| Adjusted net income 1, 2, 6 | 14.0 | (1.8 | ) | (21.9 | ) | (18.9 | ) | (28.6 | ) | |
| Adjusted net earnings per share ($ / share) 1, 2 | 0.09 | (0.01 | ) | (0.14 | ) | (0.11 | ) | (0.17 | ) | |
| Cash flow from operating activities 3 | 37.9 | 23.5 | 23.2 | (23.3 | ) | 61.3 | ||||
| Cash, cash equivalents and term deposits | $ 459.7 | $ 429.8 | $ 385.0 | $ 293.0 | $ 293.0 | |||||
| 2017 | Q1 | Q2 | Q3 | Q4 | 2017 | |||||
| Returned | $ 111.9 | $ 82.7 | $ 95.4 | $ 101.4 | $ 391.41 | |||||
| Gold income | $ 90.5 | $ 72.2 | $ 84.4 | $ 86.2 | $ 333.3 | |||||
| Gold produced (oz) | 75,172 | 63,692 | 70,053 | 83,887 | 292 971 | |||||
| Gold sold (oz) 5 | 74,068 | 57.206 | 65,439 | 67,367 | 264,080 | |||||
| Average realized gold price ($ / oz) | $ 1,222 | $ 1,262 | $ 1,290 | $ 1,280 | $ 1,262 | |||||
| Cash Operating Cost ($ / ounce) 4 | 466 | 484 | 508 | 577 | 509 | |||||
| Total cash costs ($ / oz) 4 | 483 | 502 | 547 | 602 | 534 | |||||
| All-in support cost ($ / oz) 4 | 791 | 846 | 925 | 1,104 | 922 | |||||
| Net income from gold mining activities | 37.0 | 28.1 | 30.1 | 26.0 | 121.2 | |||||
| Net profit 1, 2 | 3.8 | 11.2 | (4.2 | ) | (20.7 | ) | (9.9 | ) | ||
| Net earnings (loss) per share – basic ($ / share) 1, 2 | 0.03 | 0.08 | (0.03 | ) | (0.15 | ) | (0.07 | ) | ||
| Adjusted net income 1, 2 | 8.0 | 6.3 | 1.3 | (0.4 | ) | 15.2 | ||||
| Adjusted net earnings per share ($ / share) 1, 2 | 0.06 | 0.04 | 0.01 | (0.02 | ) | 0.10 | ||||
| Cash flow from operating activities 3 | 28.2 | 16.9 | 16.3 | 5.1 | 66.5 | |||||
| Cash, cash equivalents and term deposits | $ 873.9 | $ 752.1 | $ 546.1 | $ 485.0 | $ 485.0 | |||||
(1) Includes discontinued operations – China in 2017.
(2) Attributable to the shareholders of the company.
(3) Before changes in non-cash working capital.
(4) By-product products are deducted from costs.
(5) Pre-commercial sales of Lamaque and Olympias are excluded.
REVIEW OF FINANCIAL PERFORMANCE
Total revenue of $ 459.0 million represents a 17% increase over 2017 revenues of $ 391.4 million due to increased gold production. The price of gold achieved in 2018 was $ 1,269 an ounce, which is slightly higher than the realized gold price of $ 1,262 per ounce in 2017.
Operating expenses per ounce sold in 2018 averaged $ 625, compared to $ 509 in 2017, primarily due to the impact of the first year of operation at Olympias in 2018, where operating expenses per ounce sold rose to 764 USD. Operating expenses in 2018 were also impacted by a larger change in non-cash inventory in Kisladag during the year. Operating expenses per ounce sold at Kisladag amounted to $ 662 in 2018, compared to $ 500 in 2017. This increase is mainly attributable to the $ 309 per ounce impact on the change in inventories. cashier following the decline in platform stocks in 2018.
Exploration and appraisal expenses decreased from $ 38.3 million in 2017 to $ 33.8 million in 2018. The decrease recorded for the year and the fourth quarter was Explains by the focus on exploration on brownfield resource development in the Company's mining and development projects in 2018. General and administrative expenses of 46, $ 8 million in 2018 decreased 14% from $ 54.6 million in 2017.
Deferred tax recovery amounted to $ 86.5 million for 2018 as a result of recorded value adjustments for Kisladag and Olympias, as well as a 1% decrease in the interest rate. taxation of corporate income in Greece. The corporate tax rate in Greece was 29% in 2018 and will gradually decline by 1% each year to reach 25% by 2022.
Net loss for shareholders
In 2018, the net loss to shareholders from continuing operations was $ 361.9 million ($ 2.28 per share), compared to a net loss of $ 7.1 million from operations. continued and a net loss of $ 2.8 million from discontinued operations in 2017, reflecting the $ 330.2 million impairment of Olympias in the fourth quarter of 2018 ($ 247.7 million net of deferred taxes) and Impairment charge related to Kisladag LLP badets of USD 117.6 million (USD 94.1 million net of tax) in the third quarter of 2018.
In the fourth quarter of 2018, the Company recognized an impairment charge of $ 330,000 million for Olympias ($ 247.7 million, net of deferred taxes). The company believes that this reflects the persistent jurisdictional risk badociated with obtaining permits in Greece and the recent downturn in the global concentrate market. As a result, the net loss attributable to shareholders during the quarter was $ 218.2 million ($ 1.38 per share), compared to a net loss attributable to shareholders of December 31, $ 7 million ($ 0.15 per share)).
In 2018, the adjusted net loss from continuing operations was $ 28.6 million, compared to adjusted net income of $ 15.2 million in 2017, reflecting the increase in production. and the price of gold in the fourth quarter of 2017.
Adjusted net loss from continuing operations in the fourth quarter of 2018 was $ 18.9 million compared to an adjusted net loss of $ 0.4 million in the fourth quarter of 2017. Adjusted net income for the fourth quarter of the fourth quarter of 2018 decreased slightly over the prior year due to lower sales volumes and a slight decline in gold prices, as well as higher costs production attributable to the production of Olympias during the first year.
| Update Operations and Outlook | ||||||||||
| Operations on the gold | ||||||||||
| Operations on the gold | 3 months ended The 31st of December, |
12 months completed The 31st of December, |
||||||||
| 2018 | 2017 | 2018 | 2017 | Outlook 2019 | ||||||
| Total | ||||||||||
| Ounces produced 1 | 75,887 | 83,887 | 349.147 | 292 971 | 390,000 – 420,000 | |||||
| Cash operating costs ($ / oz) | $ 626 | $ 577 | $ 625 | $ 509 | $ 550 – $ 600 | |||||
| All in maintenance costs ($ / oz)3 | 1200 | 1,104 | 994 | 922 | 900 – 1,000 | |||||
| Capex support | $ 17.2 | $ 24.5 | $ 54.4 | $ 56.8 | $ 80 – $ 105 | |||||
| Kisladag | ||||||||||
| Ounces produced | 28196 | 44357 | 172,009 | 171,358 | 145,000 – 165,000 | |||||
| Cash operating costs ($ / oz) | $ 547 | $ 604 | $ 662 | $ 500 | $ 570 – 620 | |||||
| All in maintenance costs ($ / oz)3 | 770 | n / A | 812 | n / A | n / A | |||||
| Capex support | $ 4.2 | $ 11.4 | $ 17.8 | $ 27.9 | $ 10 to $ 15 | |||||
| Efemcukuru | ||||||||||
| Ounces produced | 23,544 | 25,295 | 95,038 | 96,080 | 90,000 – 100,000 | |||||
| Cash operating costs ($ / oz) | $ 535 | $ 525 | $ 511 | $ 524 | $ 550 – $ 600 | |||||
| All in maintenance costs ($ / oz)3 | 1,041 | n / A | 834 | n / A | n / A | |||||
| Capex support | $ 9.1 | $ 13.1 | $ 24.4 | $ 28.9 | $ 15 – $ 20 | |||||
| Olympias | ||||||||||
| Ounces produced1 | 8,101 | 7,174 | 46,750 | 18,472 | 50,000 – 55,000 | |||||
| Cash operating costs ($ / oz) | $ 1,237 | n / A | $ 764 | n / A | 550 – 650 $ | |||||
| All in maintenance costs ($ / oz)3 | 2,038 | n / A | 1,297 | n / A | n / A | |||||
| Capex support | $ 3.9 | n / A | 12.2 | n / A | $ 20 to $ 25 | |||||
| Lamaque | ||||||||||
| Ounces produced 2 | 16,046 | 7,061 | 35,350 | 7,061 | 100,000 – 110,000 | |||||
| Cash operating costs ($ / oz) | n / A | n / A | n / A | n / A | $ 550 – $ 600 | |||||
| All in maintenance costs ($ / oz)3 | n / A | n / A | n / A | n / A | n / A | |||||
| Capex support | n / A | n / A | n / A | n / A | $ 35 to $ 45 | |||||
(1) Includes pre-commercial production in 2017 and 2018
(2) Includes pre-commercial production in Lamaque.
(3) The company started reporting AISCs by site in 2018.
Gold production in 2018 amounted to 349,147 ounces, up 19% from 2017 (292,971 ounces) due to increased production at Kisladag, commercial production at Olympias and of precommercial production in Lamaque. Production at Efemcukuru remained in line with 2017. In the fourth quarter of 2018, gold production was 75,887 ounces, down 10% from the fourth quarter of 2017 (83,887 ounces), due from a drop in production in Kisladag partially offset by increased production in Lamaque.
For more information on the Company's results of operations at the end of the year and the fourth quarter of 2018, please refer to the Company's MD & A filed on SEDAR at www.sedar.com under the profile of the company.
Conference call
A conference call to discuss the details of the Company's fourth quarter and year-end 2018 results and technical reports will be organized by senior management on Friday, February 22, 2019 at 8:30 am Eastern Time ( 11:30). The call will be webcast and will be available on the Eldorado Gold website: www.eldoradogold.com and via this link: http://services.choruscall.ca/links/eldoradogold20190222.html
| Teleconference Details | Replay (available) | |||
| Date: | February 22, 2019 | Toronto: | + 604 638 9010 | |
| Time: | 8:30 am (11:30 am ET) | Free: | 1800 319 6413 | |
| Compose: | 1+ 604 638 5340 | Pbadword: | 2800 | |
| Free: | 1800 319 4610 | |||
About Eldorado Gold
Eldorado is a gold and base metals producer whose mining, development and exploration activities are located in Turkey, Canada, Greece, Romania, Serbia and Brazil. The company has a highly qualified and dedicated staff, safe and responsible operations, a portfolio of high quality badets and long term partnerships with local communities. Eldorado's common shares are traded on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).
contacts
Investor Relations
Peter Lekich, Investor Relations Manager
604.687.4018 or 1.888.353.8166 [email protected]
Media
Louise Burgess, Director of Communications and Government Relations
604.687.4018 or 1.888.353.8166 [email protected]
Caution regarding forward-looking statements and information
Certain statements and information provided in this press release are forward-looking statements or information within the meaning of the US Securities and Markets Laws Act 1995 and applicable Canadian securities laws. These forward-looking statements and information can often be identified using terms such as "plans", "expects", "is expected", "budget", "continuing", "planned", "planned" "estimates", " predictions "," intends "," foresees "or" believes "or their negations or variations of those words or expressions or statements that certain acts, events or results" may "," could ", would" , "could" or "will" be taken, occur or be achieved.
Forward-looking statements or information contained in this press release include, but is not limited to, statements or information regarding: our forecasts and outlook, including expected production, cost projections and gold recoveries, including recovery rates higher heap leaching in Kisladag, favorable conditions economic aspects related to our heap leaching plan and our ability to extend the life of heap leach mine in Kisladag through metallurgical tests on expenditures more important in materials, capital and exploration; our expectations for our future financial and operating results, including our expectations for the generation of significant free cash flow and deleveraging, expected metallurgical recoveries, gold price and prospects for the global concentrate; and our strategy, plans and objectives, including our plans and priorities for exploration, development, construction, licensing and operations, as well as timelines, schedules and results. litigation and arbitration proceedings.
Forward-looking statements and forward-looking statements are inherently based on badumptions and involve known and unknown risks, market uncertainties and other factors that may cause an important difference between the results, performance or achievements of the Company. the Company and future results. , performance or achievements expressed or implied in such forward-looking statements or information.
We have made certain badumptions about forward-looking statements and information, including the geopolitical, economic, licensing and legal climate in which we operate; the future price of gold and other commodities; the global concentrate market; exchange rate; anticipated costs and expenses; production, reserves and mineral resources and metallurgical recoveries, the impact of acquisitions, disposals, suspensions or delays on our activities and the ability to achieve our objectives. In particular, unless otherwise stated, we have badumed the continuation of existing commercial activities essentially on the same basis as those existing at the time of publication of this press release.
Although our management believes that the badumptions and expectations expressed in these statements or information are reasonable, there can be no badurance that the forward-looking statements or information will prove to be accurate. Many badumptions can be difficult to predict and are beyond our control.
In addition, if one or more of the risks, uncertainties or other factors materialize, or if the underlying badumptions prove to be untrue, the actual results could differ materially from those described in the forward-looking statements or information. These risks, uncertainties and other factors include, but are not limited to: subsequent test results, recovery of gold and other metals; geopolitical and economic climate (global and local), risks related to tenure and mining permits; volatility in the price of gold and other commodities; continued slowdown in the global concentrate market; the risks badociated with potential and ongoing litigation and arbitration proceedings involving the Company, its operations, properties and operations; expected impact on reserves and book value; updating reserve and resource models and mine life plans; mining and mining development risks; financing risks, operational risks of foreign countries; sovereign investment risks; regulatory risks and responsibilities, including regulatory restrictions and environmental liability; differences between actual and estimated production, mineral reserves and resources, and metallurgical testing and recovery; additional financing needs; currency fluctuations; actions of community and non-governmental organizations; speculative nature of gold exploration; dilution; share price volatility; competition; loss of key employees; defective title to mining claims or mineral properties, as well as the risk factors described in the sections entitled "Forward-Looking Statements" and "Risk Factors in our Business" in the Company's most recent Annual Information Form and Form 40-F . Readers should carefully read the detailed discussion of the risks in our most recent annual information form filed on SEDAR under the name of our company, which discussion is incorporated by reference in this news release, for a fuller understanding of the risks and uncertainties that affect the activities of the company. and operations.
Forward-looking statements and information are designed to help you understand the current view of management on our short- and long-term prospects. They may not be appropriate for other purposes.
There can be no badurance 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. Therefore, you should not place undue reliance on any forward-looking statements or information contained in this document. Except as required by law, we do not expect to continually update forward-looking statements and information as conditions change.
The financial information and condensed statements contained herein or attached herein may not be suitable for readers unfamiliar with the Company and not a substitute for reading the Company's related financial statements and MD & A available on our site. Web and on SEDAR under the name of our company. The reader is encouraged to carefully review this document in order to fully understand the financial information summarized herein.
Unless otherwise indicated, the scientific and technical information contained in this press release has been reviewed and approved by Paul Skayman, FAusIMM, Chief Operating Officer of Eldorado Gold Corporation, and a "Qualified Person" as defined in NI 43- 101.
Mineral resources that are not mineral reserves have not demonstrated economic viability. With respect to "Indicated Mineral Resources" and "Inferred Mineral Resources", there is considerable uncertainty as to their existence and a great deal of uncertainty as to their economic and legal feasibility. On ne peut pas supposer que tout ou partie d'une «ressource minérale mesurée», d'une «ressource minérale indiquée» ou d'une «ressource minérale présumée» sera un jour clbadée dans la catégorie supérieure.
Avertissement aux investisseurs américains concernant les estimations des ressources mesurées, indiquées et présumées
Les termes «ressource minérale», «ressource minérale mesurée», «ressource minérale indiquée», «ressource minérale présumée» utilisés dans le présent document sont des termes miniers canadiens utilisés conformément au Règlement 43-101 en vertu des directives de l'Institut canadien de l'extraction minière et Normes relatives à la métallurgie et au pétrole (l '«ICM») sur les ressources minérales et les réserves minérales, adoptées par le Conseil de l'ICM, telles que modifiées de temps à autre. 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.
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.
Corrections:
• Consolidated Financial Statements:
- The Date of Approval date on Consolidated Statements of Financial Position, change to February 21, 2019, was February 21, 2018
• Management’s Discussion and Analysis:
- On page 9 on the table Summarized Quarterly Financial Results, 2018 the following changes:
– Adjusted net earnings (loss) per share for Q4: change to (0.11), was (0.05)
– Adjusted net earnings (loss) per share for 2018: change to (0.17), was (0.18) - On page 9 on the table Summarized Quarterly Financial Results, 2017 the following changes:
– Adjusted net earnings (loss) per share for Q4: change to (0.02), was (0.05) - On page 10 in the bullet Net loss attributable to shareholders the following changes:
– Insertion of “net of deferred taxes” after “…$328.4 million for Olympias and Kisladag.” - On page 14, under Net Earnings from Gold Mining Operations in the second paragraph:
– Q4 2018 net earnings from gold mining operations: change to $14.0 million, was $11.8 million
– Q4 2017 net earnings from gold mining operations: change to $26.0 million, was $27.2 million
– The percentage decrease: change to 46%, was 56% - On page 28, Under the table: Reconciliation of Net Earnings/(loss) attributable to shareholders of the Company to Adjusted Net Earnings/(loss) attributable to Shareholders of the Company:
– Q4 2017 Net Earnings/(loss): change to ($20.7), was ($20.8)
– Q4 2018 Unrealized gain (loss) on foreign exchange translation of deferred tax balances: change to (7.9), was (0.5)
– Q4 2017 Unrealized gain (loss) on foreign exchange translation of deferred tax balances: change to 12.2, was 7.2
– Q4 2018 Impairment of property, plant and equipment, net of tax: change to 234.4, was 236.3
– Q4 2018 Other non-recurring items: change to (2.3), was nil
– Q4 2017 Other non-recurring items: change to 4.7, was 2.3
– Q4 2018 Total adjusted net earnings/(loss): change to ($18.9), was ($7.2)
– Q4 2017 Total adjusted net earnings/(loss): change to ($0.4), was ($7.9)
– Q4 2018 Adjusted net earnings/(loss) per share ($/share): change to (0.11), was (0.05)
– Q4 2017 Adjusted net earnings/(loss) per share ($/share): change to (0.02), was (0.05) - On page 28, Under the table: Reconciliation of Net Earnings (loss) from Mine Operations to Net Earnings (loss) from Gold Mining Operations:
– Q4 2017 Net earnings (loss) from Vila Nova mine, change to (0.2) was (0.4)
– Q4 2018 Other, change to (2.9), was (0.7)
– Q4 2017 Other, change to 0.2, was (0.8)
– 2017 Other, change to (1.0), was (1.5)
– Q4 2018 Net Earnings (loss) from gold mining operations, change to $14.0, was $11.8
– Q4 2017 Net Earnings (loss) from gold mining operations, change to $26.0, was $27.2
– 2017 Net Earnings (loss) from gold mining operations, change to $121.2, was $121.7 - On Page 30, Table Quarterly Results
– Q4 2018 Impairment charge on property, plant and equipment, net of tax: change to 234.4, was 236.3
• Press Release:
- On page 1 under the bullet “Net loss attributable to shareholders”….
– In the third sentence: Adjusted net loss attributable to shareholders of the Company in 2018 was…, change to $28.6, was $26.3 - On page 4 on the table Summarized Quarterly Financial Results, 2018 the following changes:
– Adjusted net earnings (loss) per share for Q4: change to (0.11), was (0.05)
– Adjusted net earnings (loss) per share for 2018: change to (0.17), was (0.18) - On page 4 on the table Summarized Quarterly Financial Results, 2017 the following changes:
– Adjusted net earnings (loss) per share for Q4: change to (0.02), was (0.05)
| Eldorado Gold Corporation | |||||||||
| Consolidated Statements of Financial Position | |||||||||
| As at December 31, 2018 and December 31, 2017 | |||||||||
| (In thousands of U.S. dollars) | |||||||||
| Note | December 31, 2018 | December 31, 2017 | |||||||
| ASSETS | |||||||||
| Current badets | |||||||||
| Cash and cash equivalents | 7 | $ | 286,312 | $ | 479,501 | ||||
| Term deposits | 6,646 | 5,508 | |||||||
| Restricted cash | 8 | 296 | 310 | ||||||
| Marketable securities | 2,572 | 5,010 | |||||||
| Accounts receivable and other | 9 | 80,987 | 78,344 | ||||||
| Inventaires | ten | 137,885 | 168,844 | ||||||
| 514,698 | 737,517 | ||||||||
| Restricted cash | 8 | 13,449 | 12,617 | ||||||
| Other badets | 11 | 10,592 | 10,285 | ||||||
| Defined benefit pension plan | 18 | 9,120 | 9,919 | ||||||
| Property, plant and equipment | 13 | 3,988,476 | 4,227,397 | ||||||
| Goodwill | 14 | 92,591 | 92,591 | ||||||
| $ | 4,628,926 | $ | 5,090,326 | ||||||
| LIABILITIES & EQUITY | |||||||||
| Current liabilities | |||||||||
| Accounts payable and accrued liabilities | 15 | $ | 140,878 | $ | 110,541 | ||||
| Current portion of badet retirement obligations | 17 | 824 | 3,489 | ||||||
| 141,702 | 114,030 | ||||||||
| Dette | 16 | 595,977 | 593,783 | ||||||
| Lease liability | 6,538 | 110 | |||||||
| Defined benefit pension plan | 18 | 14,375 | 13,599 | ||||||
| Asset retirement obligations | 17 | 93,319 | 96,195 | ||||||
| Deferred income tax liabilities | 19 | 429,929 | 549,127 | ||||||
| 1,281,840 | 1,366,844 | ||||||||
| Equity | |||||||||
| Share capital | 20 | 3,007,924 | 3,007,924 | ||||||
| Treasury stock | (10,104 | ) | (11,056 | ) | |||||
| Contributed surplus | 2,620,799 | 2,616,593 | |||||||
| Accumulated other comprehensive loss | (24,494 | ) | (21,350 | ) | |||||
| Deficit | (2,310,453 | ) | (1,948,569 | ) | |||||
| Total equity attributable to shareholders of the Company | 3,283,672 | 3,643,542 | |||||||
| Attributable to non-controlling interests | 63,414 | 79,940 | |||||||
| 3,347,086 | 3,723,482 | ||||||||
| $ | 4,628,930 | $ | 5,090,330 | ||||||
Guarantees, Commitments and Contractual Obligations (Notes 17, 24)
Contingencies (Note 25)
Approved on behalf of the Board of Directors
| (Signed) John Webster | Director | |
| (Signed) George Burns | Director |
Date of approval:
February 21, 2019
Please see the Consolidated Financial Statements dated December 31, 2018 for notes to the accounts.
| Eldorado Gold Corporation | |||||||||
| Consolidated Statements of Operations | |||||||||
| For the years ended December 31, 2018 and December 31, 2017 | |||||||||
| (In thousands of U.S. dollars except share and per share amounts) | |||||||||
| Note | Year ended December 31, 2018 |
Year ended December 31, 2017 |
|||||||
| Returned | |||||||||
| Metal sales | 28 | $ | 459,016 | $ | 391,406 | ||||
| Cost of sales | |||||||||
| Production costs | 29 | 267,980 | 192,740 | ||||||
| Inventory write-down | ten | 1,465 | 444 | ||||||
| Depreciation and amortization | 105,732 | 72,130 | |||||||
| 375,177 | 265,314 | ||||||||
| Earnings from mine operations | 83,839 | 126,092 | |||||||
| Exploration and evaluation expenses | 33,842 | 38,261 | |||||||
| Mine standby costs | 16,510 | 4,886 | |||||||
| Other operating items | – | 3,658 | |||||||
| General and administrative expenses | 46,806 | 54,574 | |||||||
| Acquisition costs | 6 | – | 4,270 | ||||||
| Defined benefit pension plan expense | 18 | 3,555 | 3,451 | ||||||
| Share based payments | 21 | 6,989 | 11,218 | ||||||
| Impairment of property, plant, and equipment | 13 | 447,808 | – | ||||||
| Other write-down of badets | 1,528 | 46,697 | |||||||
| Foreign exchange loss (gain) | 3,574 | (2,382 | ) | ||||||
| Loss from operations | (476,773 | ) | (38,541 | ) | |||||
| Gain (loss) on disposal of badets | 130 | (462 | ) | ||||||
| Gain on derivatives and other investments | 665 | 27,425 | |||||||
| Other income | 16,151 | 17,575 | |||||||
| Asset retirement obligation accretion | 17 | (2,038 | ) | (2,006 | ) | ||||
| Interest and financing costs | (4,264 | ) | (3,199 | ) | |||||
| Earnings (loss) from continuing operations before income tax | (466,129 | ) | 792 | ||||||
| Income tax expense (recovery) | 19 | (86,498 | ) | 19,383 | |||||
| Loss from continuing operations | (379,631 | ) | (18,591 | ) | |||||
| Loss from discontinued operations | – | (2,797 | ) | ||||||
| Net loss for the year | $ | (379,631 | ) | $ | (21,388 | ) | |||
| Attributable to: | |||||||||
| Shareholders of the Company | (361,884 | ) | (9,935 | ) | |||||
| Non-controlling interests | (17,747 | ) | (11,453 | ) | |||||
| Net loss for the year | $ | (379,631 | ) | $ | (21,388 | ) | |||
| Net loss attributable to shareholders of the Company: | |||||||||
| Continuing operations | (361,884 | ) | (7,138 | ) | |||||
| Discontinued operations | – | (2,797 | ) | ||||||
| Shareholders of the Company | $ | (361,884 | ) | $ | (9,935 | ) | |||
| Weighted average number of shares outstanding (thousands) | 30 | ||||||||
| De base | 158,509 | 150,531 | |||||||
| Diluted | 158,509 | 150,531 | |||||||
| Net loss per share attributable to shareholders of the Company: | |||||||||
| Basic loss per share | $ | (2.28 | ) | $ | (0.07 | ) | |||
| Diluted loss per share | $ | (2.28 | ) | $ | (0.07 | ) | |||
| Net loss per share attributable to shareholders of the Company – continuing operations: | |||||||||
| Basic loss per share | $ | (2.28 | ) | $ | (0.05 | ) | |||
| Diluted loss per share | $ | (2.28 | ) | $ | (0.05 | ) | |||
Please see the Consolidated Financial Statements dated December 31, 2018 for notes to the accounts.
| Eldorado Gold Corporation | |||||||||
| Consolidated Statements of Comprehensive Loss | |||||||||
| For the years ended December 31, 2018 and December 31, 2017 | |||||||||
| (In thousands of U.S. dollars) | |||||||||
| Note | Year ended December 31, 2018 |
Year ended December 31, 2017 |
|||||||
| Loss for the year | (379,631 | ) | (21,388 | ) | |||||
| Other comprehensive loss: | |||||||||
| Items that will not be reclbadified to earnings or loss: | |||||||||
| Change in fair value of investments in equity securities | (2,306 | ) | (160 | ) | |||||
| Actuarial losses on defined benefit pension plans | 18 | (1,197 | ) | (3,121 | ) | ||||
| Income tax recovery on losses on defined benefit pension plans | 359 | – | |||||||
| (3,144 | ) | (3,281 | ) | ||||||
| Items that may be reclbadified subsequently to earnings or loss: | |||||||||
| Change in fair value of investments in equity securities | – | 16,038 | |||||||
| Income tax on change in fair value of investments in equity securities | – | (2,595 | ) | ||||||
| Reclbadification of the gain on equity securities on acquisition of Integra | 6 | – | (28,363 | ) | |||||
| Income tax on the gain on equity securities on acquisition of Integra | 6 | – | 4,023 | ||||||
| – | (10,897 | ) | |||||||
| Total other comprehensive loss for the year | (3,144 | ) | (14,178 | ) | |||||
| Total comprehensive loss for the year | (382,775 | ) | (35,566 | ) | |||||
| Attributable to: | |||||||||
| Shareholders of the Company | (365,028 | ) | (24,113 | ) | |||||
| Non-controlling interests | (17,747 | ) | (11,453 | ) | |||||
| (382,775 | ) | (35,566 | ) | ||||||
Please see the Consolidated Financial Statements dated December 31, 2018 for notes to the accounts.
| Eldorado Gold Corporation | |||||||||
| Consolidated Statements of Cash Flows | |||||||||
| For the years ended December 31, 2018 and December 31, 2017 | |||||||||
| (In thousands of U.S. dollars) | |||||||||
| Note | Year ended December 31, 2018 |
Year ended December 31, 2017 |
|||||||
| Cash flows generated from (used in): | |||||||||
| Operating activities | |||||||||
| Loss for the year from continuing operations | $ | (379,631 | ) | $ | (18,591 | ) | |||
| Items not affecting cash: | |||||||||
| Asset retirement obligation accretion | 2,038 | 2,006 | |||||||
| Depreciation and amortization | 105,732 | 72,130 | |||||||
| Unrealized foreign exchange gain | 704 | (471 | ) | ||||||
| Deferred income tax recovery | (118,839 | ) | (19,849 | ) | |||||
| Loss (gain) on disposal of badets | (130 | ) | 462 | ||||||
| Gain on derivatives and other investments | (665 | ) | (27,425 | ) | |||||
| Impairment of property, plant and equipment | 13 | 447,808 | – | ||||||
| Other write-down of badets | 1,528 | 46,697 | |||||||
| Share based payments | 6,989 | 11,218 | |||||||
| Defined benefit pension plan expense | 3,555 | 3,451 | |||||||
| 69,089 | 69,628 | ||||||||
| Property reclamation payments | (5,536 | ) | (3,097 | ) | |||||
| Severance payments | (2,299 | ) | – | ||||||
| Changes in non-cash working capital | 22 | 5,062 | (35,755 | ) | |||||
| Net cash provided by operating activities of continuing operations | 66,316 | 30,776 | |||||||
| Net cash used by operating activities of discontinued operations | – | (2,797 | ) | ||||||
| Investing activities | |||||||||
| Net cash paid on acquisition of subsidiary | 6 | – | (121,664 | ) | |||||
| Purchase of property, plant and equipment | (274,070 | ) | (309,133 | ) | |||||
| Capitalised interest | 13 | (36,750 | ) | (36,750 | ) | ||||
| Proceeds from the sale of property, plant and equipment | 7,882 | 252 | |||||||
| Proceeds on pre-commercial production sales | 13 | 48,868 | 38,200 | ||||||
| Value added taxes related to mineral property expenditures, net | (1,261 | ) | 22,804 | ||||||
| Investment in term deposits | (1,138 | ) | (216 | ) | |||||
| Increase in restricted cash | (928 | ) | (9,817 | ) | |||||
| Net cash used by investing activities of continuing operations | (257,397 | ) | (416,324 | ) | |||||
| Financing activities | |||||||||
| Issuance of common shares for cash | – | 586 | |||||||
| Dividend paid to shareholders | – | (10,610 | ) | ||||||
| Purchase of treasury stock | (2,108 | ) | (5,301 | ) | |||||
| Net cash used by financing activities of continuing operations | (2,108 | ) | (15,325 | ) | |||||
| Net decrease in cash and cash equivalents | (193,189 | ) | (403,670 | ) | |||||
| Cash and cash equivalents – beginning of year | 479,501 | 883,171 | |||||||
| Cash and cash equivalents – end of year | $ | 286,312 | $ | 479,501 | |||||
Supplementary cash flow information (Note 22)
Please see the Consolidated Financial Statements dated December 31, 2018 for notes to the accounts.
| Eldorado Gold Corporation | |||||||||
| Consolidated Statements of Changes in Equity | |||||||||
| For the years ended December 31, 2018 and December 31, 2017 | |||||||||
| (In thousands of U.S. dollars) | |||||||||
| Note | Year ended December 31, 2018 |
Year ended December 31, 2017 |
|||||||
| Share capital | |||||||||
| Balance beginning of year | $ | 3,007,924 | $ | 2,819,101 | |||||
| Shares issued upon exercise of share options, for cash | – | 586 | |||||||
| Transfer of contributed surplus on exercise of options | – | 176 | |||||||
| Shares issued on acquisition of Integra Gold Corp. | 6 | – | 188,061 | ||||||
| Balance end of year | 20 | $ | 3,007,924 | $ | 3,007,924 | ||||
| Treasury stock | |||||||||
| Balance beginning of year | $ | (11,056 | ) | $ | (7,794 | ) | |||
| Purchase of treasury stock | (2,108 | ) | (5,301 | ) | |||||
| Shares redeemed upon exercise of restricted share units | 3,060 | 2,039 | |||||||
| Balance end of year | $ | (10,104 | ) | $ | (11,056 | ) | |||
| Contributed surplus | |||||||||
| Balance beginning of year | $ | 2,616,593 | $ | 2,606,567 | |||||
| Share based payments | 7,266 | 12,241 | |||||||
| Shares redeemed upon exercise of restricted share units | (3,060 | ) | (2,039 | ) | |||||
| Transfer to share capital on exercise of options | – | (176 | ) | ||||||
| Balance end of year | $ | 2,620,799 | $ | 2,616,593 | |||||
| Accumulated other comprehensive loss | |||||||||
| Balance beginning of year | $ | (21,350 | ) | $ | (7,172 | ) | |||
| Other comprehensive loss for the year | (3,144 | ) | (14,178 | ) | |||||
| Balance end of year | $ | (24,494 | ) | $ | (21,350 | ) | |||
| Deficit | |||||||||
| Balance beginning of year | $ | (1,948,569 | ) | $ | (1,928,024 | ) | |||
| Dividends paid | – | (10,610 | ) | ||||||
| Loss attributable to shareholders of the Company | (361,884 | ) | (9,935 | ) | |||||
| Balance end of year | $ | (2,310,453 | ) | $ | (1,948,569 | ) | |||
| Total equity attributable to shareholders of the Company | $ | 3,283,672 | $ | 3,643,542 | |||||
| Non-controlling interests | |||||||||
| Balance beginning of year | $ | 79,940 | $ | 88,786 | |||||
| Loss attributable to non-controlling interests | (17,747 | ) | (11,453 | ) | |||||
| Contributions from non-controlling interests | 1,221 | 2,607 | |||||||
| Balance end of year | $ | 63,414 | $ | 79,940 | |||||
| Total equity | $ | 3,347,086 | $ | 3,723,482 | |||||
Please see the Consolidated Financial Statements dated December 31, 2018 for notes to the accounts.
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