Eldorado Gold Reports Q3 2021 Financial and Operational Results
Eldorado Gold Corporation reports Q3 2021 financial results, highlighting gold production of 125,459 ounces, an 8% decrease from Q3 2020. However, production increased 8% over Q2 2021, prompting the company to boost its annual guidance by 6% to 460,000-480,000 ounces. Free cash flow was $29.7 million, down from $114.7 million a year prior, attributed to lower production and gold prices. Net earnings fell to $8.5 million, or $0.05 per share, reflecting higher finance costs from debt refinancing. Capital spending reached $64.4 million, with ongoing investments at Kisladag and Lamaque.
- Increased annual production guidance by 6% to 460,000-480,000 ounces of gold.
- Q3 gold production increased 8% compared to Q2 2021.
- Strong operational improvements at Kisladag leading to higher throughput.
- Capital expenditures of $64.4 million, indicating ongoing growth projects.
- Gold production decreased 8% from Q3 2020.
- Free cash flow dropped from $114.7 million in Q3 2020 to $29.7 million.
- Net earnings decreased from $46.0 million in Q3 2020 to $8.5 million.
- All-in sustaining costs increased to $1,133 per ounce sold from $918 a year prior.
VANCOUVER, British Columbia, Oct. 28, 2021 (GLOBE NEWSWIRE) -- Eldorado Gold Corporation (“Eldorado” or “the Company”) today reports the Company’s financial and operational results for the third quarter of 2021.
- Quarterly production exceeds expectations; increasing full year 2021 annual guidance: Gold production totalled 125,459 ounces in Q3 2021, a decrease of
8% from Q3 2020 production of 136,922 ounces driven by a planned shift to lower-grade ore at Kisladag. Gold production in the quarter increased8% over Q2 2021. As a result of strong production in the first nine months of 2021, primarily due to operational improvements at Kisladag, Eldorado is increasing its 2021 annual production guidance by approximately6% to 460,000-480,000 ounces of gold. - Free cash flow(4): Free cash flow from continuing operations of
$29.7 million in Q3 2021 decreased from free cash flow from continuing operations of$114.7 million in Q3 2020(2,3) primarily as a result of planned lower production, lower gold prices and planned increased growth and sustaining capital spending. An increase from negative free cash flow of$23.7 million in Q2 2021(2,3) was primarily due to free cash flow being negatively impacted in the second quarter by the timing of tax and annual royalty payments. We expect free cash flow generation to continue in Q4 2021. - All-in sustaining costs(4): Q3 2021 all-in sustaining costs of
$1,133 per ounce of gold sold in the quarter increased from Q3 2020 ($918 per ounce sold) as a result of planned lower production in the quarter, higher cash operating costs per ounce and increased sustaining capital expenditure. All-in sustaining costs per ounce of gold sold increased in the quarter from Q2 2021 ($1,074 per ounce sold) as a result of increased sustaining capital expenditure. We are maintaining our 2021 annual guidance with all-in-sustaining costs of$920 -$1,150 per ounce sold. - Net earnings and adjusted net earnings attributable to shareholders(4): Net earnings from continuing operations attributable to shareholders of the Company in Q3 2021 were
$8.5 million , or$0.05 per share (Q3 2020: net earnings of$46.0 million or$0.26 per share, Q2 2021: net earnings of$31.0 million or$0.17 per share)(1,3). Adjusted net earnings attributable to shareholders of the Company from continuing operations in Q3 2021 were$39.9 million , or$0.22 per share (Q3 2020: adjusted net earnings of$63.6 million or$0.37 earnings per share, Q2 2021: adjusted net earnings of$29.1 million or$0.16 per share)(1,3). Material adjustments in Q3 2021 included$31.1 million of finance costs relating to the Company's debt refinancing in the quarter. - EBITDA: Q3 2021 EBITDA from continuing operations was
$106.6 million (Q3 2020:$161.0 million , Q2 2021:$106.9 million )(3) and Q3 2021 adjusted EBITDA from continuing operations(4) was$108.1 million (Q3 2020:$164.5 million , Q2 2021:$101.7 million )(3). - Capital spending: Capital expenditures totalled
$64.4 million in Q3 2021 (Q3 2020:$50.4 million , Q2 2021:$71.6 million )(3), reflecting a planned increase and following reduced spending in the prior year due to the novel coronavirus ("COVID-19") pandemic. Capital allocation is following a rigorous process to ensure discipline and control at all operations.
- At Kisladag,
$17.7 million investment in the quarter related to waste stripping, construction of the north leach pad to support the mine life extension and installation of a high-pressure grinding roll ("HPGR") circuit, which is expected to improve heap leach recovery with commissioning now in progress and expected to complete in November 2021. - At Lamaque,
$10.1 million investment in the quarter related primarily to the decline connecting the Triangle underground mine with the Sigma mill, which is expected to reduce operating costs, reduce greenhouse gas emissions, and provide access for underground drill platforms for Ormaque, Plug 4, and other exploration targets in the prospective corridor. Investment in the quarter also included raising the embankment at the Sigma tailing storage facility.
- At Kisladag,
- Financial position: As at September 30, 2021, the Company had
$439.3 million of cash and cash equivalents and$250 million undrawn and available under its revolving credit facility. - Refinancing completed: In August 2021, the Company completed its offering of
$500 million aggregate principal amount of6.25% senior unsecured notes due 2029 (the "senior notes") and on October 15, 2021 entered into a$250 million amended and restated senior secured credit facility ("Fourth ARCA"). Eldorado used, in part, the net proceeds from the offering of the senior notes to redeem the outstanding$234 million 9.5% senior secured second lien notes due June 2024, and to repay all amounts outstanding under its prior term loan and revolving credit facility. The issuance of the senior notes and entering into of the Fourth ARCA provides Eldorado greater financial flexibility to pursue a broader range of financing alternatives for the development of the Kassandra assets in Greece. - Sale of Tocantinzinho Project: On October 27, 2021, the Company completed a sale of the Tocantinzinho Project, a non-core gold asset. Eldorado received
$20 million in cash consideration and 46,926,372 common shares of G Mining Ventures Corp ('GMIN'). Deferred cash consideration of$60 million is payable on the first anniversary of commercial production of the Project, with an option to defer50% of the consideration at a cost of$5 million . The project has been presented as a discontinued operation following the sale and a net loss of$60.8 million reflects a reduction of fair value to the amount of upfront cash and share consideration, less estimated costs of disposal. - Suspension of Mining at Stratoni: On October 15, 2021, we announced that operations at Stratoni will be suspended in Q4 2021. The mine will be placed on care and maintenance while exploration drilling continues with the goal of expanding reserves and resources. We will evaluate resuming operations subject to exploration success and positive results of further technical and economic review.
- Measures remain in place to manage the impact of the COVID-19 pandemic: The Company's mines remain fully operational and isolated cases of COVID-19 have been successfully managed. Preventing the spread of COVID-19, ensuring safe working environments across Eldorado's global sites, and preparedness should an outbreak occur, remain priorities.
| (1) | 2020 and YTD 2021 amounts have been recast to correct an immaterial error related to an understatement of the net book value of certain of our property, plant and equipment as a result of errors in the amounts recorded for depreciation. See Note 2(c) of our Unaudited Condensed Consolidated Interim Financial Statements. |
| (2) | 2020 and YTD 2021 amounts have been restated for a voluntary change in accounting policy to classify cash paid for interest on the statement of cash flows as a financing, rather than an operating activity. See Note 3(c) of our Unaudited Condensed Consolidated Interim Financial Statements. |
| (3) | From Q3 2021, the Brazil Segment is presented as a discontinued operation. See Note 5 of our Unaudited Condensed Consolidated Interim Financial Statements. Amounts presented are from continuing operations only. |
| (4) | These financial measures or ratios are non-IFRS financial measures or ratios. See the section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS financial measures or ratios in the September 30, 2021 MD&A. |
“In the third quarter of 2021, the Company recorded strong, safe operational performance led by higher production at Kisladag, resulting in a solid quarter of cash flow generation,” said George Burns, President and CEO. “To reflect the strong production in the first nine months of the year, we increased our 2021 production guidance by approximately
"We continue to move forward with de-risking the Skouries project. We refinanced our senior notes at
"With operational results outperforming our expectation in the first three quarters of 2021, our financing position remaining solid, and numerous upcoming catalysts expected in the fourth quarter, Eldorado remains well-positioned to provide additional growth and value creation in the future."
Consolidated Financial and Operational Highlights
| 3 months ended September 30, | 9 months ended September 30, | ||||||||||||
| Continuing operations(7), except where noted | 2021 | 2020 | 2021 | 2020 | |||||||||
| Revenue | $ | 238.4 | $ | 287.6 | $ | 696.3 | $ | 748.2 | |||||
| Gold revenue | $ | 221.5 | $ | 264.3 | $ | 626.6 | $ | 684.7 | |||||
| Gold produced (oz) | 125,459 | 136,922 | 353,268 | 390,654 | |||||||||
| Gold sold (oz) | 125,189 | 137,704 | 352,923 | 388,883 | |||||||||
| Average realized gold price ($/oz sold) (1) | $ | 1,769 | $ | 1,919 | $ | 1,775 | $ | 1,761 | |||||
| Cash operating costs ($/oz sold) (1,2) | 646 | 537 | 644 | 568 | |||||||||
| Total cash costs ($/oz sold) (1,2) | 743 | 664 | 726 | 651 | |||||||||
| All-in sustaining costs ($/oz sold) (1,2) | 1,133 | 918 | 1,066 | 908 | |||||||||
| Net (loss) earnings for the period (3,5) | 8.5 | 46.0 | 53.9 | 101.2 | |||||||||
| Net (loss) earnings per share – basic ($/share) (3,5) | 0.05 | 0.26 | 0.30 | 0.60 | |||||||||
| Adjusted net earnings (loss) (1,3,4,5) | 39.9 | 63.6 | 94.2 | 127.9 | |||||||||
| Adjusted net earnings (loss) per share ($/share) (1,3,4,5) | 0.22 | 0.37 | 0.52 | 0.75 | |||||||||
| Cash flow from operating activities before changes in working capital (1,6) | 101.0 | 135.1 | 258.1 | 326.3 | |||||||||
| Free cash flow (1,6) | 29.7 | 114.7 | 39.3 | 205.4 | |||||||||
| Cash, cash equivalents and term deposits | $ | 439.3 | $ | 504.4 | $ | 439.3 | $ | 504.4 | |||||
| (1) | These financial measures or ratios are non-IFRS financial measures or ratios. See the section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS financial measures or ratios in the September 30, 2021 MD&A. |
| (2) | By-product revenues are off-set against cash operating costs. |
| (3) | Attributable to shareholders of the Company. |
| (4) | See reconciliation of net earnings (loss) to adjusted net earnings (loss), a non-IFRS financial measure, in the section 'Non-IFRS Measures' in the September 30, 2021 MD&A. |
| (5) | 2020 and YTD 2021 amounts have been recast to correct an immaterial error related to an understatement of the net book value of certain of our property, plant and equipment as a result of errors in the amounts recorded for depreciation. See Note 2(c) of our Unaudited Condensed Consolidated Interim Financial Statements. |
| (6) | 2020 and YTD 2021 amounts have been restated for a voluntary change in accounting policy to classify cash paid for interest on the statement of cash flows as a financing, rather than an operating activity. See Note 3(c) of our Unaudited Condensed Consolidated Interim Financial Statements. |
| (7) | From Q3 2021, the Brazil Segment is presented as a discontinued operation. See Note 5 of our Unaudited Condensed Consolidated Interim Financial Statements. Amounts presented are from continuing operations only. |
Gold production of 125,459 ounces decreased
Total revenue was
Cash operating costs in Q3 2021 averaged
We reported net earnings attributable to shareholders from continuing operations of
Adjusted net earnings from continuing operations were
Gold Operations
| 3 months ended September 30, | 9 months ended September 30, | |||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Total | ||||||||||||
| Ounces produced | 125,459 | 136,922 | 353,268 | 390,654 | ||||||||
| Ounces sold | 125,189 | 137,704 | 352,923 | 388,883 | ||||||||
| Cash operating costs ($/oz sold) (1,2) | $ | 646 | $ | 537 | $ | 644 | $ | 568 | ||||
| All-in sustaining costs ($/oz sold) (1,2) | $ | 1,133 | $ | 918 | $ | 1,066 | $ | 908 | ||||
| Sustaining capital expenditures (2) | $ | 34.7 | $ | 22.1 | $ | 79.3 | $ | 63.4 | ||||
| Kisladag | ||||||||||||
| Ounces produced | 51,040 | 59,593 | 141,229 | 169,659 | ||||||||
| Ounces sold | 51,038 | 59,571 | 142,593 | 171,088 | ||||||||
| Cash operating costs ($/oz sold) (1,2) | $ | 612 | $ | 440 | $ | 546 | $ | 452 | ||||
| All-in sustaining costs ($/oz sold) (1,2) | $ | 916 | $ | 708 | $ | 755 | $ | 641 | ||||
| Sustaining capital expenditures (2) | $ | 8.2 | $ | 5.3 | $ | 14.7 | $ | 13.7 | ||||
| Lamaque | ||||||||||||
| Ounces produced | 37,369 | 39,525 | 101,847 | 99,973 | ||||||||
| Ounces sold | 37,381 | 38,587 | 101,136 | 97,279 | ||||||||
| Cash operating costs ($/oz sold) (1,2) | $ | 646 | $ | 494 | $ | 683 | $ | 530 | ||||
| All-in sustaining costs ($/oz sold) (1,2) | $ | 1,130 | $ | 747 | $ | 1,117 | $ | 844 | ||||
| Sustaining capital expenditures (2) | $ | 13.7 | $ | 6.8 | $ | 34.0 | $ | 23.1 | ||||
| Efemcukuru | ||||||||||||
| Ounces produced | 23,305 | 23,892 | 70,076 | 74,007 | ||||||||
| Ounces sold | 23,825 | 24,471 | 70,961 | 73,384 | ||||||||
| Cash operating costs ($/oz sold) (1,2) | $ | 552 | $ | 561 | $ | 534 | $ | 577 | ||||
| All-in sustaining costs ($/oz sold) (1,2) | $ | 911 | $ | 1,012 | $ | 839 | $ | 894 | ||||
| Sustaining capital expenditures (2) | $ | 5.3 | $ | 5.1 | $ | 11.7 | $ | 11.8 | ||||
| Olympias | ||||||||||||
| Ounces produced | 13,745 | 13,912 | 40,116 | 47,015 | ||||||||
| Ounces sold | 12,945 | 15,075 | 38,233 | 47,132 | ||||||||
| Cash operating costs ($/oz sold) (1,2) | $ | 952 | $ | 992 | $ | 1,110 | $ | 1,056 | ||||
| All-in sustaining costs ($/oz sold) (1,2) | $ | 1,728 | $ | 1,450 | $ | 1,806 | $ | 1,484 | ||||
| Sustaining capital expenditures (2) | $ | 7.5 | $ | 4.9 | $ | 19.0 | $ | 14.8 | ||||
| (1) | By-product revenues are off-set against cash operating costs. |
| (2) | These financial measures or ratios are non-IFRS financial measures or ratios. See the September 30, 2021 MD&A for explanations and discussion of these non-IFRS financial measures or ratios. |
Kisladag
Kisladag produced 51,040 ounces of gold in Q3 2021, a
Cash operating costs per ounce sold increased to
AISC per ounce sold increased to
Growth capital expenditures were
Lamaque
Lamaque produced 37,369 ounces of gold in Q3 2021, a
Cash operating costs per ounce sold increased to
AISC per ounce sold increased to
Growth capital expenditure totalled
Efemcukuru
Efemcukuru produced 23,305 ounces of gold in Q3 2021, a slight decrease from 23,892 ounces in Q3 2020 and reflect continued strong production. The flotation columns installed in late 2020 continue to operate well and have resulted in an increase in quality of gold concentrate through 2021. Production in 2021 has been adjusted to reflect a reduced effective rate for payable ounces, following a change in the structure of concentrate sales contracts. The reduced effective rate for payable ounces under the new contracts are offset by a decrease in production costs due to the elimination of treatment charges and other deductions now blended in the reduced effective rate.
Cash operating costs per ounce sold improved to
AISC per ounce sold improved to
Olympias
Olympias produced 13,745 ounces of gold in Q3 2021, a slight decrease from 13,912 ounces in Q3 2020. Lower processing volumes in the quarter were partially offset by higher average gold grade. Lead and silver production was also lower in Q3 2021 as compared to Q3 2020, primarily a result of lower processing volumes. An increase in zinc feed grade to
Cash operating costs per ounce sold improved to
AISC per ounce sold increased to
Conference Call
A conference call to discuss the details of the Company’s Q3 2021 results will be held by senior management on Friday, October 29, 2021 at 11:30 AM ET (8:30 AM PT). 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/eldoradogold20211029.html
| Conference Call Details | Replay (available until Dec. 3, 2021) | |||
| Date: | October 29, 2021 | Vancouver: | +1 604 638 9010 | |
| Time: | 11:30 am ET (8:30 am PT) | Toll Free: | 1 800 319 6413 | |
| Dial in: | +1 604 638 5340 | Pass code: | 7602 | |
| 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 and Romania. 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).
Contact
Investor Relations
Lisa Wilkinson, VP Investor Relations
604.757.2237 or 1.888.353.8166 lisa.wilkinson@eldoraogold.com
Media
Louise McMahon, Director Communications & Public Affairs
604.757.5573 or 1.888.363.8166 louise.mcmahon@eldoradogold.com
Non-IFRS Measures
Certain non-IFRS measures, including cash operating costs, total cash costs,, all-in sustaining cost ("AISC"), adjusted net earnings/(loss) attributable to shareholders, earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), sustaining and growth capital, free cash flow, working capital and cash flow from operations before changes in working capital, non-IFRS ratios, including cash operating cost per ounce sold, total cash costs per ounce sold, AISC per ounce sold, average realized gold price per ounce sold, adjusted net earnings/(loss) per share attributable to shareholders, are included in this press release. Please see the September 30, 2021 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 Company’s 2021 annual guidance, including at our individual mine production; construction of the decline connecting Sigma mill with the Triangle underground mine, including the timing of completion; continued drilling at the Ormaque gold resource, completion of the HPGR circuit, including the timing of completion; the optimization of Greek operations, including the benefits and risks thereof; our expectation as to our future financial and operating performance, including expectations around generating free cash flow; working capital requirements; debt repayment obligations; use of proceeds from financing activities; expected metallurgical recoveries and improved concentrate grade and quality; gold price outlook and the global concentrate market; risk factors affecting our business; 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: our 2021 annual guidance, timing of construction of the decline between Sigma mill and the Triangle underground mine; results from drilling at Ormaque; benefits of the improvements at Kisladag; how the world-wide economic and social impact of COVID-19 is managed and the duration and extent of the COVID-19 pandemic; timing and cost of construction and exploration; the 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, expenses and working capital requirements; 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: inability to meet production guidance, inability to complete construction of the decline between Triangle mill and the Triangle underground mine on time or to meet expected timing thereof, poor results from drilling at Ormaque; inability to complete improvements at Kisladag or to meeting expected timing thereof, or to achieve the benefits thereof; inability to assess taxes in Turkey or depreciation expenses; global outbreaks of infectious diseases, including COVID-19; timing and cost of construction, and the associated benefits; 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; information technology systems risks; continued softening of the global concentrate market; risks regarding potential and pending litigation and arbitration proceedings relating to our 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 our common shares; 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.
The inclusion of 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 Simon Hille, FAusIMM and VP Technical Services for the Company, and a "qualified person" under NI 43-101.
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Financial Position
As at September 30, 2021 and December 31, 2020
(Unaudited – in thousands of U.S. dollars)
| As at | Note | September 30, 2021 | December 31, 2020 | ||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 439,316 | $ | 451,962 | |||||||
| Term deposits | — | 59,034 | |||||||||
| Marketable securities | 21,882 | 194 | |||||||||
| Accounts receivable and other | 7 | 97,783 | 73,022 | ||||||||
| Inventories | 2(c),8 | 170,687 | 164,135 | ||||||||
| Current portion of employee benefit plan assets | 15 | — | 5,749 | ||||||||
| Assets held for sale | 5 | 48,386 | — | ||||||||
| 778,054 | 754,096 | ||||||||||
| Restricted cash | 2,633 | 2,097 | |||||||||
| Other assets | 28,883 | 39,562 | |||||||||
| Property, plant and equipment | 2(c) | 3,970,909 | 4,042,199 | ||||||||
| Goodwill | 92,591 | 92,591 | |||||||||
| $ | 4,873,070 | $ | 4,930,545 | ||||||||
| LIABILITIES & EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable and accrued liabilities | $ | 167,784 | $ | 179,372 | |||||||
| Current portion of lease liabilities | 8,994 | 11,297 | |||||||||
| Current portion of debt | 9 | — | 66,667 | ||||||||
| Current portion of asset retirement obligations | 4,701 | 4,701 | |||||||||
| Liabilities associated with assets held for sale | 5 | 386 | — | ||||||||
| 181,865 | 262,037 | ||||||||||
| Debt | 9 | 493,621 | 434,465 | ||||||||
| Lease liabilities | 15,581 | 14,659 | |||||||||
| Employee benefit plan obligations | 21,893 | 21,974 | |||||||||
| Asset retirement obligations | 109,416 | 106,677 | |||||||||
| Deferred income tax liabilities | 2(c) | 379,775 | 412,162 | ||||||||
| 1,202,151 | 1,251,974 | ||||||||||
| Equity | |||||||||||
| Share capital | 13 | 3,225,173 | 3,144,644 | ||||||||
| Treasury stock | (10,289 | ) | (11,452 | ) | |||||||
| Contributed surplus | 2,641,587 | 2,638,008 | |||||||||
| Accumulated other comprehensive loss | (27,526 | ) | (30,297 | ) | |||||||
| Deficit | 2(c) | (2,199,224 | ) | (2,103,205 | ) | ||||||
| Total equity attributable to shareholders of the Company | 3,629,721 | 3,637,698 | |||||||||
| Attributable to non-controlling interests | 41,198 | 40,873 | |||||||||
| 3,670,919 | 3,678,571 | ||||||||||
| $ | 4,873,070 | $ | 4,930,545 | ||||||||
Approved on behalf of the Board of Directors
(signed) John Webster Director (signed) George Burns Director
Date of approval: October 28, 2021
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Comprehensive Income (Loss)
For the three and nine months ended September 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars)
| Three months ended | Nine months ended | |||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||
| Note | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||
| Revenue | ||||||||||||||||||||||
| Metal sales | 10 | $ | 238,441 | $ | 287,595 | $ | 696,283 | $ | 748,167 | |||||||||||||
| Cost of sales | ||||||||||||||||||||||
| Production costs | 110,180 | 117,386 | 331,540 | 328,225 | ||||||||||||||||||
| Depreciation and amortization | 2(c) | 50,720 | 57,012 | 154,229 | 159,490 | |||||||||||||||||
| 160,900 | 174,398 | 485,769 | 487,715 | |||||||||||||||||||
| Earnings from mine operations | 77,541 | 113,197 | 210,514 | 260,452 | ||||||||||||||||||
| Exploration and evaluation expenses | 4,663 | 4,035 | 16,552 | 9,488 | ||||||||||||||||||
| Mine standby costs | 11 | 9,139 | 2,497 | 12,842 | 10,382 | |||||||||||||||||
| General and administrative expenses | 7,676 | 6,632 | 27,543 | 21,054 | ||||||||||||||||||
| Employee benefit plan expense | 839 | 496 | 2,204 | 1,953 | ||||||||||||||||||
| Share-based payments expense | 14 | 1,716 | 2,586 | 5,419 | 7,244 | |||||||||||||||||
| Write-down (recovery) of assets | 38 | 29 | (392 | ) | (63 | ) | ||||||||||||||||
| Foreign exchange gain | (605 | ) | (4,317 | ) | (6,827 | ) | (7,436 | ) | ||||||||||||||
| Earnings from operations | 54,075 | 101,239 | 153,173 | 217,830 | ||||||||||||||||||
| Other income | 12 | 1,732 | 2,658 | 12,666 | 2,833 | |||||||||||||||||
| Finance costs | 12 | (41,019 | ) | (19,873 | ) | (66,851 | ) | (42,516 | ) | |||||||||||||
| Earnings from continuing operations before income tax | 14,788 | 84,024 | 98,988 | 178,147 | ||||||||||||||||||
| Income tax expense | 2(c) | 5,627 | 40,730 | 45,170 | 82,195 | |||||||||||||||||
| Net earnings from continuing operations | $ | 9,161 | $ | 43,294 | $ | 53,818 | $ | 95,952 | ||||||||||||||
| Net (loss) earnings from discontinued operations, net of tax | 5 | (60,761 | ) | 1,089 | (149,920 | ) | (7,895 | ) | ||||||||||||||
| Net (loss) earnings for the period | $ | (51,600 | ) | $ | 44,383 | $ | (96,102 | ) | $ | 88,057 | ||||||||||||
| Attributable to: | ||||||||||||||||||||||
| Shareholders of the Company | 2(c) | (52,220 | ) | 47,088 | (96,018 | ) | 93,271 | |||||||||||||||
| Non-controlling interests | 620 | (2,705 | ) | (84 | ) | (5,214 | ) | |||||||||||||||
| Net (loss) earnings for the period | $ | (51,600 | ) | $ | 44,383 | $ | (96,102 | ) | $ | 88,057 | ||||||||||||
| Earnings (loss) attributable to shareholders of the Company: | ||||||||||||||||||||||
| Continuing operations | 8,541 | 45,999 | 53,902 | 101,166 | ||||||||||||||||||
| Discontinued operations | 5 | (60,761 | ) | 1,089 | (149,920 | ) | (7,895 | ) | ||||||||||||||
| $ | (52,220 | ) | $ | 47,088 | $ | (96,018 | ) | $ | 93,271 | |||||||||||||
| Weighted average number of shares outstanding (thousands) | ||||||||||||||||||||||
| Basic | 182,447 | 173,822 | 179,556 | 169,676 | ||||||||||||||||||
| Diluted | 183,948 | 178,131 | 181,674 | 173,732 | ||||||||||||||||||
| Net (loss) earnings per share attributable to shareholders of the Company: | ||||||||||||||||||||||
| Basic (loss) earnings per share | 2(c) | $ | (0.29 | ) | $ | 0.27 | $ | (0.53 | ) | $ | 0.55 | |||||||||||
| Diluted (loss) earnings per share | 2(c) | $ | (0.29 | ) | $ | 0.26 | $ | (0.53 | ) | $ | 0.54 | |||||||||||
| Net earnings per share attributable to shareholders of the Company - continuing operations: | ||||||||||||||||||||||
| Basic earnings per share | 2(c) | $ | 0.05 | $ | 0.26 | $ | 0.30 | $ | 0.60 | |||||||||||||
| Diluted earnings per share | 2(c) | $ | 0.05 | $ | 0.26 | $ | 0.30 | $ | 0.58 | |||||||||||||
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Comprehensive Income (Loss)
For the three and nine months ended September 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars)
| Three months ended | Nine months ended | ||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||
| Note | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||
| Net (loss) earnings for the period | 2(c) | $ | (51,600 | ) | $ | 44,383 | $ | (96,102 | ) | $ | 88,057 | ||||||||||
| Other comprehensive (loss) income: | |||||||||||||||||||||
| Items that will not be reclassified to earnings or loss: | |||||||||||||||||||||
| Change in fair value of investments in marketable securities, net of tax | 3,048 | 669 | 3,018 | 1,567 | |||||||||||||||||
| Actuarial losses on employee benefit plans, net of tax | (277 | ) | (227 | ) | (247 | ) | (425 | ) | |||||||||||||
| Total other comprehensive income for the period | 2,771 | 442 | 2,771 | 1,142 | |||||||||||||||||
| Total comprehensive (loss) income for the period | $ | (48,829 | ) | $ | 44,825 | $ | (93,331 | ) | $ | 89,199 | |||||||||||
| Attributable to: | |||||||||||||||||||||
| Shareholders of the Company | 2(c) | (49,449 | ) | 47,530 | (93,247 | ) | 94,413 | ||||||||||||||
| Non-controlling interests | 620 | (2,705 | ) | (84 | ) | (5,214 | ) | ||||||||||||||
| $ | (48,829 | ) | $ | 44,825 | $ | (93,331 | ) | $ | 89,199 | ||||||||||||
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Cash Flows
For the three and nine months ended September 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars)
| Three months ended | Nine months ended | ||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||
| Cash flows generated from (used in): | Note | 2021 | 20201 | 2021 | 20201 | ||||||||||||||||
| Operating activities | |||||||||||||||||||||
| Net earnings for the period from continuing operations | 2(c) | $ | 9,161 | $ | 43,294 | $ | 53,818 | $ | 95,952 | ||||||||||||
| Items not affecting cash: | |||||||||||||||||||||
| Depreciation and amortization | 2(c) | 51,178 | 57,552 | 155,714 | 161,149 | ||||||||||||||||
| Finance costs | 41,019 | 19,873 | 66,851 | 42,516 | |||||||||||||||||
| Interest income | (413 | ) | (429 | ) | (1,888 | ) | (1,712 | ) | |||||||||||||
| Unrealized foreign exchange gain | (945 | ) | (4,582 | ) | (2,634 | ) | (7,632 | ) | |||||||||||||
| Income tax expense | 2(c) | 5,627 | 40,730 | 45,170 | 82,195 | ||||||||||||||||
| (Gain) loss on disposal of assets | (180 | ) | (89 | ) | 46 | 2,322 | |||||||||||||||
| Gain on disposal of mining licenses | 12 | — | — | (7,046 | ) | — | |||||||||||||||
| Write-down (recovery) of assets | 38 | 29 | (392 | ) | (63 | ) | |||||||||||||||
| Share-based payments expense | 14 | 1,716 | 2,586 | 5,419 | 7,244 | ||||||||||||||||
| Employee benefit plan expense | 839 | 496 | 2,204 | 1,953 | |||||||||||||||||
| 108,040 | 159,460 | 317,262 | 383,924 | ||||||||||||||||||
| Property reclamation payments | (515 | ) | (618 | ) | (1,622 | ) | (1,618 | ) | |||||||||||||
| Employee benefit plan receipt (payments) | 5,639 | (1,284 | ) | 5,118 | (1,955 | ) | |||||||||||||||
| Income taxes paid | (12,561 | ) | (22,899 | ) | (64,574 | ) | (55,746 | ) | |||||||||||||
| Interest received | 413 | 429 | 1,888 | 1,712 | |||||||||||||||||
| Changes in non-cash working capital | 16 | 4,094 | 42,658 | (4,819 | ) | 23,720 | |||||||||||||||
| Net cash generated from operating activities of continuing operations | 105,110 | 177,746 | 253,253 | 350,037 | |||||||||||||||||
| Net cash generated from (used in) operating activities of discontinued operations | 692 | (2,975 | ) | (4,048 | ) | (2,012 | ) | ||||||||||||||
| Investing activities | |||||||||||||||||||||
| Purchase of property, plant and equipment | (64,441 | ) | (50,438 | ) | (200,035 | ) | (127,152 | ) | |||||||||||||
| Acquisition of subsidiary, net of | 4 | — | — | (19,336 | ) | — | |||||||||||||||
| Proceeds from the sale of property, plant and equipment | 966 | 147 | 2,277 | 773 | |||||||||||||||||
| Value added taxes related to mineral property expenditures, net | (11,971 | ) | (12,801 | ) | (16,170 | ) | (18,283 | ) | |||||||||||||
| Proceeds from the sale of mining licenses | 12 | — | — | 5,000 | — | ||||||||||||||||
| Purchase of marketable securities and investment in debt securities | (27,060 | ) | — | (27,060 | ) | — | |||||||||||||||
| Proceeds from the sale of marketable securities | — | 5,237 | — | 5,237 | |||||||||||||||||
| Decrease (increase) in term deposits | 1,000 | (48,528 | ) | 59,034 | (50,089 | ) | |||||||||||||||
| (Increase) decrease in restricted cash | (432 | ) | (21 | ) | (536 | ) | 1,077 | ||||||||||||||
| Net cash used in investing activities of continuing operations | (101,938 | ) | (106,404 | ) | (196,826 | ) | (188,437 | ) | |||||||||||||
| Net cash generated from (used in) investing activities of discontinued operations | (911 | ) | 9,683 | (2,348 | ) | 8,867 | |||||||||||||||
| Financing activities | |||||||||||||||||||||
| Issuance of common shares, net of issuance costs | 240 | 7,820 | 14,374 | 94,899 | |||||||||||||||||
| Acquisition of non-controlling interest | — | — | — | (7,500 | ) | ||||||||||||||||
| Contributions from non-controlling interests | — | — | 409 | 301 | |||||||||||||||||
| Proceeds from borrowings | 9 | 500,000 | — | 500,000 | 150,000 | ||||||||||||||||
| Repayment of borrowings | 9 | (433,953 | ) | (58,574 | ) | (517,286 | ) | (91,907 | ) | ||||||||||||
| Debt redemption premium paid | 9(c) | (21,400 | ) | — | (21,400 | ) | — | ||||||||||||||
| Loan financing costs | (7,535 | ) | — | (7,535 | ) | — | |||||||||||||||
| Interest paid | (7,634 | ) | (9,370 | ) | (23,117 | ) | (29,728 | ) | |||||||||||||
| Principal portion of lease liabilities | (2,802 | ) | (2,531 | ) | (7,813 | ) | (7,524 | ) | |||||||||||||
| Purchase of treasury stock | — | — | — | (3,679 | ) | ||||||||||||||||
| Net cash generated from (used in) financing activities of continuing operations | 26,916 | (62,655 | ) | (62,368 | ) | 104,862 | |||||||||||||||
| Net cash used in financing activities of discontinued operations | (12 | ) | (20 | ) | (36 | ) | (60 | ) | |||||||||||||
| Net increase (decrease) in cash and cash equivalents | 29,857 | 15,375 | (12,373 | ) | 273,257 | ||||||||||||||||
| Cash and cash equivalents - beginning of period | 409,732 | 435,624 | 451,962 | 177,742 | |||||||||||||||||
| Cash in disposal group held for sale | (273 | ) | — | (273 | ) | — | |||||||||||||||
| Cash and cash equivalents - end of period | $ | 439,316 | $ | 450,999 | $ | 439,316 | $ | 450,999 | |||||||||||||
Restated, see Note 3(c).
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Changes in Equity
For the three and nine months ended September 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars)
| Three months ended | Nine months ended | |||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||
| Share capital | ||||||||||||||||||||
| Balance beginning of period | $ | 3,224,830 | $ | 3,135,955 | $ | 3,144,644 | $ | 3,054,563 | ||||||||||||
| Shares issued upon exercise of share options, for cash | 219 | 185 | 1,617 | 2,001 | ||||||||||||||||
| Shares issued upon exercise of performance share units | 30 | — | 1,202 | — | ||||||||||||||||
| Transfer of contributed surplus on exercise of options | 87 | 71 | 635 | 801 | ||||||||||||||||
| Shares issued upon acquisition of subsidiary (Note 4) | — | — | 65,647 | — | ||||||||||||||||
| Shares issued to the public, net of share issuance costs | 7 | 6,396 | 11,428 | 85,242 | ||||||||||||||||
| Balance end of period | $ | 3,225,173 | $ | 3,142,607 | $ | 3,225,173 | $ | 3,142,607 | ||||||||||||
| Treasury stock | ||||||||||||||||||||
| Balance beginning of period | $ | (10,295 | ) | $ | (11,587 | ) | $ | (11,452 | ) | $ | (8,662 | ) | ||||||||
| Purchase of treasury stock | — | — | — | (3,679 | ) | |||||||||||||||
| Shares redeemed upon exercise of restricted share units | 6 | 6 | 1,163 | 760 | ||||||||||||||||
| Balance end of period | $ | (10,289 | ) | $ | (11,581 | ) | $ | (10,289 | ) | $ | (11,581 | ) | ||||||||
| Contributed surplus | ||||||||||||||||||||
| Balance beginning of period | $ | 2,639,288 | $ | 2,634,246 | $ | 2,638,008 | $ | 2,627,441 | ||||||||||||
| Share-based payment arrangements | 2,422 | 2,338 | 6,579 | 6,456 | ||||||||||||||||
| Acquisition of non-controlling interest, without change in control | — | — | — | 4,171 | ||||||||||||||||
| Shares redeemed upon exercise of restricted share units | (6 | ) | (6 | ) | (1,163 | ) | (760 | ) | ||||||||||||
| Shares redeemed upon exercise of performance share units | (30 | ) | — | (1,202 | ) | — | ||||||||||||||
| Transfer to share capital on exercise of options | (87 | ) | (71 | ) | (635 | ) | (801 | ) | ||||||||||||
| Balance end of period | $ | 2,641,587 | $ | 2,636,507 | $ | 2,641,587 | $ | 2,636,507 | ||||||||||||
| Accumulated other comprehensive loss | ||||||||||||||||||||
| Balance beginning of period | $ | (30,297 | ) | $ | (28,266 | ) | $ | (30,297 | ) | $ | (28,966 | ) | ||||||||
| Other comprehensive income for the period | 2,771 | 442 | 2,771 | 1,142 | ||||||||||||||||
| Balance end of period | $ | (27,526 | ) | $ | (27,824 | ) | $ | (27,526 | ) | $ | (27,824 | ) | ||||||||
| Deficit | ||||||||||||||||||||
| Balance beginning of period | $ | (2,147,004 | ) | $ | (2,181,815 | ) | $ | (2,103,206 | ) | $ | (2,227,998 | ) | ||||||||
| Net (loss) earnings attributable to shareholders of the Company (Note 2(c)) | (52,220 | ) | 47,088 | (96,018 | ) | 93,271 | ||||||||||||||
| Balance end of period | $ | (2,199,224 | ) | $ | (2,134,727 | ) | $ | (2,199,224 | ) | $ | (2,134,727 | ) | ||||||||
| Total equity attributable to shareholders of the Company | $ | 3,629,721 | $ | 3,604,982 | $ | 3,629,721 | $ | 3,604,982 | ||||||||||||
| Non-controlling interests | ||||||||||||||||||||
| Balance beginning of period | $ | 40,578 | $ | 45,424 | $ | 40,873 | $ | 59,304 | ||||||||||||
| Earnings (loss) attributable to non-controlling interests | 620 | (2,705 | ) | (84 | ) | (5,214 | ) | |||||||||||||
| Acquisition of non-controlling interest | — | — | — | (11,672 | ) | |||||||||||||||
| Contributions from non-controlling interests | — | — | 409 | 301 | ||||||||||||||||
| Balance end of period | $ | 41,198 | $ | 42,719 | $ | 41,198 | $ | 42,719 | ||||||||||||
| Total equity | $ | 3,670,919 | $ | 3,647,701 | $ | 3,670,919 | $ | 3,647,701 | ||||||||||||
Please see the Condensed Consolidated Interim Financial Statements dated September 30, 2021 for notes to the accounts.
FAQ
What were the gold production figures for Eldorado Gold in Q3 2021?
How did Eldorado Gold's net earnings change in Q3 2021 compared to Q3 2020?
What is the updated annual production guidance for Eldorado Gold for 2021?
What were the all-in sustaining costs for Eldorado Gold in Q3 2021?
