2013 First Quarter Financial and Operating Results
02.05.2013 | Marketwired
(all figures in United States dollars unless otherwise noted)VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/02/13 -- Paul N. Wright, Chief Executive Officer of Eldorado Gold Corporation (TSX: ELD)(NYSE: EGO) ("Eldorado" the "Company" or "we"), is pleased to report on the Company's financial and operational results for the first quarter ended March 31, 2013. Profit attributable to shareholders of the Company for the quarter was $79.8 million or $0.11 per share excluding a one-time $125.2 million non-cash charge related to a change in Greek tax rates. This compares to $67.9 million or $0.11 per share for the same quarter in 2012.
"During the first quarter Eldorado sold 189,346 ounces of gold at an average gold price of $1,622 per ounce. Our gold mines continue to perform to plan and generate significant cash flows which will be used for the Phase IV expansion of our Kisladag mine and new mine development," said Paul Wright, CEO of Eldorado. "The Company continues to maintain its guidance for 2013, with gold sales of 705,000 to 760,000 ounces, operating cash costs of $515-530 per ounce and all-in cash costs of approximately $950 per ounce. With our strong balance sheet and comparatively low cost gold mining operations Eldorado is well positioned to confront the recent weakness in gold prices."
First Quarter Summary Results and Corporate Developments
- Gold sales of 189,346 ounces at an average gold price of $1,622 per ounce (Q1 2012 sales of 150,661 ounces at an average gold price of $1,707).
- Gold production of 163,768 ounces at an average cash operating cost of $505 per ounce (Q1 2012 gold production - 155,535 ounces at $452 per ounce).
- 9% increase in earnings from gold mining operations before taxes over the same quarter in 2012.
- 36% increase in cash from operating activities before changes in non- cash working capital over the same quarter in 2012.
- Payment of Cdn$0.07 dividend per share to shareholders of the Company on February 14, 2013.
- On April 17, 2013, the Council of State ("COS" or "Greek Court"), the Supreme Administrative Court of Greece, upheld the validity of the Environmental Impact Assessment ("EIA") permit for the Hellas Gold projects comprising the "Kassandra Mines" (Stratoni, Olympias & Skouries) in Halkidiki, northern Greece.
Change in Greek corporate income tax rate
Effective January 1, 2013 the government of Greece enacted legislation increasing the corporate income tax rate from 20% to 26%. As required by IAS 12, "Income Taxes", when an income tax rate changes, the deferred tax liability must be adjusted to reflect the change in the income tax rate. This non-cash adjustment is required to be charged to deferred income tax expense. The impact on profit for the quarter was $125.2 million, or $0.17 per share.
Greek Court Judgement for Hellas Gold projects
On April 17, 2013 the Greek Court, after thorough deliberation and examination of the contents of the EIA study and the environmental terms of the permit, found that the requirements of the Greek and European Union legislation have been met. The COS determined the alleged grounds of an appeal dated June 6, 2012 challenging the validity of the EIA permit were without merit and this appeal was rejected in its entirety.
Review of Financial Results
(1) The Company has included non-IFRS performance measures such as cash operating costs, total cash costs, earnings from gold mining operations and cash flow from operations before changes in non-cash working capital throughout this document. These are non-IFRS measures. Please see page 11 of the Management Discussion and Analysis fo discussion of non-IFRS measures.
----------------------------------------------------------------------------
Summarized Financial Results - quarter ended March 31, 2013 2012
----------------------------------------------------------------------------
Revenues (millions) $ 338.1 $ 271.5
----------------------------------------------------------------------------
Gold sold (ounces) 189,346 150,661
----------------------------------------------------------------------------
Average realized gold price ($/ounce) $ 1,622 $ 1,707
----------------------------------------------------------------------------
Cash operating costs ($/ounce sold) (1) $ 505 $ 452
----------------------------------------------------------------------------
Total cash cost ($ per ounce sold) (1) $ 567 $ 529
----------------------------------------------------------------------------
Gross profit from gold mining operations (1) (millions) $ 163.8 $ 150.7
----------------------------------------------------------------------------
Profit (loss) attributable to shareholders of the
Company (millions) $ (45.5) $ 67.9
----------------------------------------------------------------------------
Earnings (loss) per share attributable to shareholders
of the Company - Basic ($/share) $ (0.06) $ 0.11
----------------------------------------------------------------------------
Earnings (loss) per share attributable to shareholders
of the Company - Diluted ($/share) $ (0.06) $ 0.11
----------------------------------------------------------------------------
Dividends paid (Cdn$/share) $ 0.07 $ 0.09
----------------------------------------------------------------------------
Cash flow from operating activities before changes in
non-cash working capital(1) (millions) $ 139.9 $ 102.8
----------------------------------------------------------------------------
The Company reported a loss of $45.4 million (or $0.06 per share) for the quarter compared with profit of $67.9 million (or $0.11 per share) in the first quarter of 2012. Excluding a $125.2 million adjustment related to a change in Greek tax rates the Company reported adjusted profit of $79.8 million compared with $67.9 million for the same quarter in 2012. The difference in adjusted profit year over year was due to higher gross profit from gold mining operations during the quarter as well as $17.8 million in costs related to the acquisition of European Goldfields Limited ("EGU") reported in the first quarter of 2012. Higher sales volumes year over year were partially offset by lower prices and higher unit production costs. Realized gold prices fell 5% year over year. Unit production costs from gold mining operations rose 8% compared with the first quarter of 2012 as our Chinese mines reported unit cost increases related to lower grades and gold production. Depreciation, depletion and amortization expense increased 35% over the first quarter of 2012, mainly as a result of the addition of Efemcukuru depreciation. The Company also reported $10.5 million in interest and financing costs as compared with $0.7 million in the first quarter of 2012, reflecting the cost of servicing the Senior Notes issued in the fourth quarter of 2012. Excluding the $125.2 million adjustment, the effective tax rate was 36% for the quarter as compared with 27% for the first quarter of 2012. The increase in the effective tax rate over the first quarter of 2012 was due to an increase in accrued withholding taxes on dividends paid by our Turkish subsidiary as well as increases in non-deductible expenses in Canada.
Operations Update
Kisladag
Operating Data - quarter ended March 31, 2013 2012
----------------------------------------------------------------------------
Tonnes placed on pad 2,915,508 3,140,492
Average treated head grade - grams per tonne (g/t) 1.29 1.13
Gold (ounces)
Produced 70,221 65,707
Sold 70,250 65,164
Cash operating costs (per ounce sold) $ 334 $ 339
Total cash costs (per ounce sold) $ 359 $ 374
Financial Data (millions)
----------------------------------------------------------------------------
Gold revenues $ 114.5 $ 110.6
Depreciation and depletion $ 3.2 $ 2.6
Gross profit - gold mining operations $ 85.0 $ 82.5
Capital expenditure on mining interests $ 35.4 $ 3.6
Gold production at Kisladag was 7% higher year over year while gold ounces placed on the pad during the year increased 6% over 2012, mainly as a result of higher average treated head grade. Gold ounces sold were higher year over year due to a slightly higher head grade as well as recovery of gold placed on the pad in 2012. Cash operating costs were lower year over year as a result of the higher grade material placed on the pad as well as lower annual average exchange rates for the Turkish lira in comparison with the previous year. Capital expenditures at Kisladag for the quarter included costs on the Phase IV preparation works, capitalised waste stripping and various smaller construction projects.
Efemcukuru
(1) Ounces produced and sold in 2012 were pre-commercial
Operating Data - quarter ended March 31, 2013 2012(1)
----------------------------------------------------------------------------
Tonnes Milled 86,879 70,646
Average Treated Head Grade - g/t 8.47 8.74
Average Recovery Rate (to Concentrate) 93.6% 92.2%
Gold (ounces)
Produced 19,856 4,293
Sold 50,291 3,583
Cash operating costs (per ounce sold) $ 582 -
Total cash costs (per ounce sold) $ 619 -
Financial Data (millions)
----------------------------------------------------------------------------
Gold revenues $ 81.2 -
Depreciation and depletion $ 9.8 -
Gross profit - gold mining operations $ 38.7 -
Capital expenditure on mining interests $ 9.8 $ 14.0
Gold sales from Efemcukuru during the quarter were significantly higher than gold production as a result of the sale of concentrate inventories built up at the Kisladag Treatment Plant during 2012. Mined tonnage was below plan due to issues with paste plant availability and quality. Significant improvements have been undertaken during the quarter resulting in improved results by quarter end. Most of the capital spending during the quarter was related to underground development.
Tanjianshan
Operating Data - quarter ended March 31, 2013 2012
----------------------------------------------------------------------------
Tonnes Milled 247,061 262,793
Average Treated Head Grade - g/t 3.74 4.00
Average Recovery Rate 80.8% 81.3%
Gold (ounces)
Produced 26,207 28,816
Sold 26,207 28,816
Cash operating costs (per ounce sold) $ 442 $ 408
Total cash costs (per ounce sold) $ 636 $ 605
Financial Data (millions)
----------------------------------------------------------------------------
Gold revenues $ 42.6 $ 49.6
Depreciation and depletion $ 6.5 $ 7.4
Gross profit - gold mining operations $ 19.1 $ 24.6
Capital expenditure on mining interests $ 1.8 $ 4.1
Gold production at Tanjianshan was 9% lower year over year mainly as a result of lower average treated head grade and lower additional flotation concentrate feed. Tonnes milled in the quarter were 6% lower than 2012 while average treated head grade was 6% lower than 2012. Circuit recoveries remained relatively constant. Cash operating costs per ounce were 8% higher year over year mainly as a result of lower grade ore and lower ounce production. Most of the capital spending this quarter was on exploration drilling.
Jinfeng
Operating Data - quarter ended March 31, 2013 2012
----------------------------------------------------------------------------
Tonnes Milled 351,901 368,756
Average Treated Head Grade - g/t 2.43 3.17
Average Recovery Rate 82.4% 85.5%
Gold (ounces)
Produced 21,742 35,235
Sold 21,683 35,197
Cash operating costs (per ounce sold) $ 832 $ 643
Total cash costs (per ounce sold) $ 930 $ 715
Financial Data (millions)
----------------------------------------------------------------------------
Gold revenues $ 35.0 $ 60.3
Depreciation and depletion $ 6.2 $ 8.4
Gross profit - gold mining operations $ 8.7 $ 26.6
Capital expenditure on mining interests $ 13.9 $ 9.0
Gold production at Jinfeng was 38% lower year over year mainly as a result of treating lower grade material from the open pit and stockpiles. A total of 54,126 tonnes of ore was mined from the open pit this quarter (first quarter 2012 - 29,960 tonnes). It is expected that significant ore production will recommence from the pit in the second quarter of 2013 once the waste stripping has uncovered the ore body. A total of 138,989 tonnes of ore were mined from the underground during the quarter (first quarter 2012 - 129,903 tonnes). Cash costs were 29% higher year over year reflecting the impact of the decrease in treated head grade and the slightly lower throughput. Capital expenditures for the quarter included waste stripping, underground development, mining equipment and tailings dam lift construction.
White Mountain
Operating Data - quarter ended March 31, 2013 2012
----------------------------------------------------------------------------
Tonnes Milled 198,934 158,114
Average Treated Head Grade - g/t 3.80 4.46
Average Recovery Rate 85.6% 86.1%
Gold (ounces)
Produced 20,915 21,484
Sold 20,915 21,484
Cash operating costs (per ounce sold) $ 634 $ 543
Total cash costs (per ounce sold) $ 679 $ 588
Financial Data (millions)
----------------------------------------------------------------------------
Gold revenues $ 33.9 $ 36.7
Depreciation and depletion $ 7.4 $ 6.5
Gross profit - gold mining operations $ 12.3 $ 18.4
Capital expenditure on mining interests $ 6.0 $ 6.4
Gold production at White Mountain during the quarter was slightly lower year over year with higher ore throughput offsetting lower grade. The increase in tonnes was due to an increase in underground mining efficiency as a result of increased mine development. Recovery was on par with the previous reporting period. Cash operating costs per ounce were 17% higher year over year as a result of the higher tonnage and decreased head grade and due to costs related to increased backfill and secondary development rates to sustain higher production tonnage. Capital expenditures for the quarter included capitalized underground development, upgrade of the underground service facility and capitalized exploration costs.
Vila Nova
Operating Data - quarter ended March 31, 2013 2012
----------------------------------------------------------------------------
Tonnes Processed 212,911 189,747
Iron Ore Produced 183,426 163,901
Average Grade (% Fe) 59.64% 63.1%
Iron Ore Tonnes
Sold 129,548 88,581
Average Realized Iron Ore Price $ 117 $ 84
Cash Costs (per tonne sold) $ 66 $ 65
Financial Data (millions)
----------------------------------------------------------------------------
Revenues $ 15.2 $ 7.4
Depreciation and depletion $ 1.2 $ 0.7
Gross profit - gold mining operations $ 5.4 $ 0.9
Capital expenditure on mining interests $ 3.4 $ 0.2
Iron ore production and sales increased year over year as a result of the impact of new mining equipment purchased late last year on mining productivity. A major incident at the shipping port owned by Anglo Ferrous, a third party, occurred on March 29, 2013 when a large part of the Santana Port on-shore areas and facilities slid into the Amazon River. Part of Vila Nova's ore stockpile, estimated to be 22,000 tonnes of iron ore, was on site and is assumed to be lost. No Unamgen employees were injured. No further iron ore sales are anticipated in the short term and Company personnel are exploring a number of alternatives to continue iron ore sales.
Stratoni
Operating Data - quarter ended March 31, 2013 2012
----------------------------------------------------------------------------
Tonnes ore mined (wet) 54,125 18,942
Tonnes ore processed (dry) 48,521 16,602
Pb grade (%) 6,21% 5.95%
Zn grade (%) 9,36% 9.72%
Ag grade (g/t) 163 158
Tonnes of concentrate produced 12,278 3,862
Tonnes of concentrate sold 13,968 5,569
Average realized concentrate price (per tonne) $ 995 $ 1,109
Cash Costs (per tonne of concentrate sold) $ 829 $ 797
Financial Data (millions)
----------------------------------------------------------------------------
Revenues $ 13.9 $ 5.7
Depreciation and depletion $ 1.8 $ 0.7
Earnings from operations $ 0.5 $ 0.6
Capital expenditure on mining interests $ 0.1 $ 0.5
During first quarter, Stratoni mined 54,125 tonnes of run-of-mine ore and produced 12,278 tonnes of lead and zinc concentrate at an average cash cost of $829 per tonne of concentrate sold. During the same period, Stratoni sold 13,968 tonnes of concentrate at an average price of $995 per tonne. Stratoni operating and financial data for 2012 shown in the table above reflect operations subsequent to February 24, 2012, the date of the EGU acquisition.
Olympias
During the first quarter, Olympias treated 89,112 tonnes of tailings and produced 4,827 payable gold ounces. Commissioning of the plant continued during the quarter with commercial production expected to begin by the end of the second quarter. Capital spending during the quarter totalled $13.5 million, mainly on underground rehabilitation and main decline development.
Development Project Update
Kisladag Phase IV Expansion
Route selection for the 154 kV transmission line was completed and design information provided to the energy provider for construction of the line. Delivery of full power to the site and completion of the main transformer station is scheduled for late 2014.
Procurement of long lead equipment remains on schedule. Delivery of the ancillary mobile equipment fleet began in late 2012. The first shovel and haul truck arrived on site for assembly subsequent to this quarter end. Deliveries of the remaining equipment including haul trucks and loaders remain on schedule.
Earth moving activity on site was completed in the permitted areas during the quarter. Basic engineering work is ongoing to optimize site layout and facilities designs.
Efemcukuru Expansion
Development work at Efemcukuru during the quarter focused on designs for increasing the capacity in the backfill system and the tailings filtration circuit. Work is ongoing.
Perama Hill
Development work at Perama Hill was limited during the quarter while the Company awaited approval of the EIA. Engineering designs to support the Urban Planning application were completed and progress was made on completing the design information required for the construction permit, both of which are required in the next permitting steps leading to construction.
Olympias
Underground mining and refurbishment continued during the quarter with crews advancing the main Stratoni decline, a water diversion tunnel as well as a secondary access tunnel. New mining equipment was purchased during the quarter and will be delivered during the second quarter of 2013 to increase the mine development rate. Other work underground included installation of backfill piping in the ventilation raise in preparation to fill old mining voids with cemented coarse tails. The backfill plant is being fabricated by a supplier in Thessaloniki. Final site design was completed during the quarter. Civil works began in the second half of April 2013. The tailings retreatment plant continued testing and commissioning during the quarter, with design modifications developed to improve plant throughput.
Skouries
Detailed engineering for Skouries plant buildings and ancillary facilities is approximately 56% complete. Surveying of the open pit and tailings dump areas began in the first quarter 2013 and will be ongoing through midyear. Construction of the underground portal progressed during the quarter with the decline scheduled to begin in the second quarter 2013. Work continued on upgrading site roads and ongoing clearing in approved areas.
The Skouries project suffered an arson attack on February 17th. Project offices and site facilities lost during the attack were replaced during the quarter and activity has returned to normal. The cost of the loss is estimated at approximately $1.0 million with a two week disruption.
Certej
Field activity at Certej during the first quarter was restricted due to winter weather conditions. Construction of the access road to the site is expected to resume in the second quarter 2013, along with work on the waterline and pump station.
Eastern Dragon
No construction work took place at Eastern Dragon during the first quarter due to the winter season and permitting delays.
Tocantinzinho
Optimization of the feasibility study was a primary focus during the first quarter. To date the focus has been on investigating details compiled in the capital cost estimate to improve the level of accuracy. Areas having the greatest proportional impact or having higher levels of certainties are being addressed first. A third party review was completed to look at simplifying layouts and structures as well as optimizing the mine infrastructure. Discussions with mining contractors and equipment vendor representatives have been initiated looking for potential capital cost savings.
Exploration Update
In the first quarter approximately 25,000 meters were drilled on the Company's exploration programs in Greece, Romania, Turkey and China. The 2013 drilling programs at most exploration sites have not commenced due to weather and scheduling constraints.
Turkey
Drilling commenced at Efemcukuru late in the quarter, focusing on the central portion of the Kokarpinar vein. Five holes were completed, with most reporting thick quartz - rhodonite - sulfide vein intervals; assay results are pending.
No drilling was completed on Turkey reconnaissance projects during the quarter. Fieldwork commenced at the Ardala/Salinbas project in mid-March, with geological mapping and drillcore relogging directed towards refining drill targets for a program scheduled to start in the second quarter. Fieldwork at the Mayislar project in north-western Turkey began in March, including soil sampling, ground magnetic surveying and siting of possible drillholes.
Greece
At Perama Hill, drilling was completed during the quarter on infill, sterilization and geotechnical drilling programs.
Drilling in the Chalkidiki district was limited to completion of the final two confirmation drillholes at Skouries. Other exploration activities focused on drillcore logging and geological interpretation of the Piavitsa deposit area and on the Olympias deposit drillcore relogging program. A detailed mapping program at Piavitsa was initiated in mid-March.
China
At Jinfeng, 3,500 meters of exploration drilling were completed during the quarter, all from underground stations. Most drilling tested extensions or infill areas of the F2, F3 and F7 mineralized zones. Several drillholes that targeted the F2-F3 intersection area encountered a zone of mineralization not predicted by the current geological model, including an intercept of 12.0 meters at 9.07 grams per tonne Au (HDDU-200) and 9.0 meters at 10.5 grams per tonne Au (HDDU-0204). No drilling was completed on the regional exploration programs during the quarter.
At White Mountain mine, an exploration drift designed to provide drillsite access for the Deep North Zone is progressing as planned. Resource definition drilling of the North Zone from the exploration drift commenced late in the quarter. No fieldwork was completed on the regional exploration licenses due to snow cover.
At Tanjianshan, drilling was completed during the quarter in the Jinlonggou mine area, testing targets in the south pit wall and M7-main pit bridge areas. Pyritic zones were intersected in both areas, suggesting that the mineralized zones identified in the pit walls have lateral continuity. Interpretation and geological modeling of both the Qinlongtan North project area and the Jinlonggou area are being completed.
Romania
At the Certej project, over 15,000 meters of drilling were completed during the quarter, consisting of infill drilling of a number of target areas in the main deposit and definition of the lateral limits of mineralized system. Positive assay results were received during the month from numerous drillholes, including several on the north and south margins of the deposit that will likely expand the zone of economic mineralization. New assay results include notable intercepts of 24.0 meters at 4.73 grams per tonne Au (CJSD-455); 66.0 meters at 1.34 grams per tonne Au (also CJSD-455); and 53.0 meters at 1.53 grams per tonne Au (CJSD-457). Also of note were narrow veins containing visible gold, intersected in drillhole CJSD-473 on the northern margin of the deposit ("Baiaga Nose" target area).
Brazil
At Tocantinzinho, exploration activities were on hold during the quarter on the three main licenses pending granting of the Project Exploitation License. Soil sampling was completed on one license that is not included in the exploitation application, with a total of 64 lines sampled.
Follow-up infill soil sampling began in February at the Rubens Zilio project, with the two major areas of soil anomalies being further evaluated along 100 meter spaced soil lines.
Sampling programs were completed at the Chapadinha project, with numerous moderate to high grade chip and channel samples reported from areas surrounding artisanal workings. A 2,000 meter drilling program commenced late in the quarter to test several targets. Mineralization consisting of Qtz-Py-Asp veins, veinlets and disseminated Py-Asp has been intercepted in both the quartzite and footwall phyllite units.
At the Anicuns project, a significant gold-in-stream sediment anomaly was outlined from a grass-roots prospecting program in late 2012. The Company submitted 35 new applications for exploration licenses to secure land surrounding the anomaly, and a follow-up program of soil sampling, termite mound sampling, and additional stream sediment sampling began late in the quarter.
Corporate Appointments
Rick Thomas was appointed Vice President, Capital Projects on March 18, 2013. Rick is responsible for providing strategic oversight and guidance in the execution of all major capital projects for the Company.
Jason Cho was appointed Manager Business Development on March 25, 2013. Jason is responsible for leading the Company's business development activities including managing existing joint venture partnerships and searching for value-enhancing opportunities.
About Eldorado
Eldorado is a gold producing, exploration and development company actively growing businesses in Turkey, China, Greece, Brazil, and Romania. With our international expertise in mining, finance and project development, together with highly skilled and dedicated staff, we believe that our company is well positioned to grow in value as we create and pursue new opportunities.
ON BEHALF OF ELDORADO GOLD CORPORATION
Paul N. Wright
Chief Executive Officer
Eldorado will host a conference call on Friday, May 3, 2013 to discuss the 2013 First Quarter Financial and Operating Results at 11:30 a.m. EDT (8:30 a.m. PDT). You may participate in the conference call by dialling 416-340-9432 in Toronto or 1-888-340-9642 toll free in North America and asking for the Eldorado Conference Call with Chairperson: Paul Wright, CEO of Eldorado Gold. The call will be available on Eldorado's website. www.eldoradogold.com. A replay of the call will be available until May 10, 2013 by dialling 905-694-9451 in Toronto or 1-800-408-3053 toll free in North America and entering the Pass code: 1059970.
Certain of the statements made herein may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements or information herein include, but are not limited, to the Company's Q1, 2013 Financial and Operating Results.
Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. We have made certain assumptions about the forward-looking statements and information and even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: gold price volatility; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; mining operational and development risk; litigation risks; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment; currency fluctuations; speculative nature of gold exploration; global economic climate; dilution; share price volatility; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property, as well as those factors discussed in the sections entitled "Forward-Looking Statements" and "Risk Factors" in the Company's Annual Information Form & Form 40-F dated March 28,2013.
There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada and the U.S.
Eldorado Gold Corporation's common shares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).
Request for information packages:laurelw@eldoradogold.com.
PRODUCTION HIGHLIGHTS
----------------------------------------------------------------------------
First First Second Third Fourth
Quarter Quarter Quarter Quarter Quarter
2013 2012 2012 2012 2012
----------------------------------------------------------------------------
Gold Production
--------------------------
Ounces Sold 189,346 150,661 132,919 154,841 186,973
Ounces Produced(1) 163,768 155,535 140,694 169,565 190,530
Cash Operating Cost
($/oz)(2,4,5) 505 452 480 493 502
Total Cash Cost
($/oz)(3,4,5) 567 529 550 567 566
Realized Price ($/oz -
sold) 1,622 1,707 1,612 1,670 1,696
----------------------------------------------------------------------------
Kisladag Mine, Turkey
--------------------------
Ounces Sold 70,250 65,164 61,991 83,750 78,151
Ounces Produced 70,221 65,707 61,575 84,016 77,996
Tonnes to Pad 2,915,508 3,140,492 3,259,574 3,245,700 2,960,809
Grade (grams / tonne) 1.29 1.13 1.30 1.05 1.32
Cash Operating Cost
($/oz)(4,5) 334 339 333 334 324
Total Cash Cost
($/oz)(3,4,5) 359 374 357 363 353
----------------------------------------------------------------------------
Efemcukuru Mine, Turkey
--------------------------
Ounces Sold 50,291 - - - 37,046
Ounces Produced 19,856 4,293 8,222 14,442 39,913
Tonnes Milled 86,879 70,646 95,131 93,779 92,600
Grade (grams / tonne) 8.47 8.74 9.60 9.28 9.27
Cash Operating Cost
($/oz)(4,5) 582 - - - 583
Total Cash Cost
($/oz)(3,4,5) 619 - - - 613
----------------------------------------------------------------------------
Tanjianshan Mine, China
--------------------------
Ounces Sold 26,207 28,816 27,172 28,944 25,679
Ounces Produced 26,207 28,816 27,172 28,944 25,679
Tonnes Milled 247,061 262,793 245,457 283,654 264,943
Grade (grams / tonne) 3.74 4.00 3.73 3.55 3.42
Cash Operating Cost
($/oz)(4,5) 442 408 432 396 427
Total Cash Cost
($/oz)(3,4,5) 636 605 621 593 632
----------------------------------------------------------------------------
Jinfeng Mine, China
--------------------------
Ounces Sold 21,683 35,197 25,661 25,805 21,149
Ounces Produced 21,742 35,235 25,630 25,821 21,168
Tonnes Milled 351,901 368,756 337,560 356,575 359,903
Grade (grams / tonne) 2.43 3.17 2.68 2.43 2.30
Cash Operating Cost ($/oz)
(4,5) 832 643 786 946 986
Total Cash Cost ($/oz)
(3,4,5) 930 715 858 1,044 1,088
----------------------------------------------------------------------------
White Mountain Mine, China
--------------------------
Ounces Sold 20,915 21,484 18,095 16,342 24,948
Ounces Produced 20,915 21,484 18,095 16,342 24,948
Tonnes Milled 198,934 158,114 188,038 210,114 198,407
Grade (grams / tonne) 3.80 4.46 3.60 3.14 4.34
Cash Operating Cost ($/oz)
(4,5) 634 543 622 766 607
Total Cash Cost ($/oz)
(3,4,5) 679 588 666 813 652
----------------------------------------------------------------------------
Olympias, Greece
--------------------------
Ounces Sold - - - - -
Ounces Produced(1) 4,827 - - - 826
Tonnes Milled 89,112 - - - 28,331
Grade (grams / tonne) 3.97 - - - 5.07
Cash Operating Cost
($/oz)(4,5) - - - - -
Total Cash Cost
($/oz)(3,4,5) - - - - -
----------------------------------------------------------------------------
(1) Ounces produced include pre-commercial production in Olympias.
(2) Cost figures calculated in accordance with the Gold Institute
Standard.
(3) Cash Operating Costs, plus royalties and the cost of off-site
administration.
(4) Cash operating costs and total cash costs are non-GAAP measures. See
the section "Non-GAAP Measures" of this Review.
(5) Cash operating costs and total cash costs have been recalculated for
prior quarters based on ounces sold.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars)
March 31, December 31,
Note 2013 2012
$ $
ASSETS
Current assets
Cash and cash equivalents 668,615 816,843
Term deposits 158,927 -
Restricted cash 261 241
Marketable securities 3,352 1,988
Accounts receivable and other 93,579 112,324
Inventories 203,883 220,766
--------------------------
1,128,617 1,152,162
Investments in significantly influenced
companies 31,251 27,949
Deferred income tax assets 2,607 3,149
Restricted assets and other 36,905 31,846
Defined benefit pension plan 6,847 4,571
Property, plant and equipment 5,932,883 5,868,742
Goodwill 839,710 839,710
--------------------------
7,978,820 7,928,129
--------------------------
--------------------------
LIABILITIES & EQUITY
Current liabilities
Accounts payable and accrued liabilities 228,113 224,567
Current debt 6 12,442 10,341
--------------------------
240,555 234,908
Debt 6 583,320 582,974
Asset retirement obligations 80,310 79,971
Deferred income tax liabilities 7 952,287 816,941
--------------------------
1,856,472 1,714,794
--------------------------
Equity
Share capital 8 5,303,095 5,300,957
Treasury stock (12,307) (7,445)
Contributed surplus 71,827 65,382
Accumulated other comprehensive loss (25,034) (24,535)
Retained earnings 499,172 594,876
--------------------------
Total equity attributable to shareholders of
the Company 5,836,753 5,929,235
Attributable to non-controlling interests 285,595 284,100
--------------------------
6,122,348 6,213,335
--------------------------
7,978,820 7,928,129
--------------------------
--------------------------
Approved on behalf of the Board of Directors
(Signed) Robert R. Gilmore, Director
(Signed) Paul N. Wright, Director
The accompanying notes are an integral part of these consolidated financial
statements.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Income Statements
(Expressed in thousands of U.S. dollars except per share amounts)
For the quarter ended March 31, Note 2013 2012
$ $
Revenue
Metal sales 338,068 271,549
Cost of sales
Production costs 130,368 91,239
Depreciation and amortization 37,114 27,408
--------------------------
167,482 118,647
Gross profit 170,586 152,902
Exploration expenses 7,624 8,696
General and administrative expenses 16,486 16,162
Defined benefit pension plan expense 629 635
Share based payments 8,877 9,023
Acquisition costs 5 - 17,804
Foreign exchange gain (102) (1,107)
--------------------------
Operating profit 137,072 101,689
Loss (gain) on disposal of assets 36 (213)
Gain on marketable securities and other
investments (21) (1,032)
Loss on investments in significantly
influenced companies 909 1,281
Other income (1,976) (946)
Asset retirement obligation accretion 339 368
Interest and financing costs 10,501 688
--------------------------
Profit before income tax 127,284 101,543
Income tax expense 7 171,252 27,725
--------------------------
Profit (loss) for the period (43,968) 73,818
--------------------------
Attributable to:
Shareholders of the Company (45,463) 67,851
Non-controlling interests 1,495 5,967
--------------------------
Profit (loss) for the period (43,968) 73,818
--------------------------
--------------------------
Weighted average number of shares outstanding
Basic 714,504 615,147
Diluted 715,364 617,851
Earnings (loss) per share attributable to
shareholders of the Company:
Basic earnings (loss) per share (0.06) 0.11
Diluted earnings (loss) per share (0.06) 0.11
The accompanying notes are an integral part of these consolidated financial
statements.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Statements of Comprehensive Income
(Expressed in thousands of U.S. dollars)
For the quarter ended March 31, 2013 2012
$ $
Profit (loss) for the period (43,968) 73,818
Other comprehensive loss:
Change in fair value of available-for-sale
financial assets (482) (113)
Realized gains on disposal of available-for-sale
financial assets transferred to net income (17) (24)
--------------------------
Total other comprehensive loss for the period (499) (137)
--------------------------
Total comprehensive income (loss) for the period (44,467) 73,681
--------------------------
--------------------------
Attributable to:
Shareholders of the Company (45,962) 67,714
Non-controlling interests 1,495 5,967
--------------------------
Total comprehensive income (loss) for the period (44,467) 73,681
--------------------------
--------------------------
The accompanying notes are an integral part of these consolidated financial
statements.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Statements of Cash Flows
(Expressed in thousands of U.S. dollars)
For the quarter ended March 31, Note 2013 2012
$ $
Cash flows generated from (used in):
Operating activities
Profit (loss) for the year (43,968) 73,818
Items not affecting cash
Asset retirement obligation accretion 339 368
Depreciation and amortization 37,114 27,408
Unrealized foreign exchange loss 121 514
Deferred income tax expense (recovery) 7 135,888 (8,986)
Loss (gain) on disposal of assets 36 (213)
Loss on investments in significantly
influenced companies 909 1,281
Gain on marketable securities and other
investments (21) (1,032)
Share based payments 8,877 9,023
Defined benefit pension plan expense 629 635
--------------------------
139,924 102,816
Changes in non-cash working capital 11 27,168 (19,541)
--------------------------
167,092 83,275
Investing activities
Net cash received on acquisition of subsidiary 5 - 18,789
Purchase of property, plant and equipment (101,214) (52,514)
Proceeds from the sale of property, plant and
equipment 56 659
Proceeds on pre-production sales 4,328 6,064
Proceeds from the sale of marketable
securities 332 230
Funding of non-registered supplemental
retirement plan investments, net - (6,023)
Investments in significantly influenced
companies (6,357) (696)
Investment in term deposits (158,927) -
Decrease in restricted cash (10) (1,287)
--------------------------
(261,792) (34,778)
Financing activities
Issuance of common shares for cash 1,422 6,090
Dividend paid to shareholders (50,241) (49,880)
Purchase of treasury stock (6,294) (6,011)
Long-term and bank debt proceeds 12,412 -
Long-term and bank debt repayments (10,354) (5,563)
Loan financing costs (473) -
--------------------------
(53,528) (55,364)
--------------------------
Net decrease in cash and cash equivalents (148,228) (6,867)
Cash and cash equivalents - beginning of
period 816,843 393,763
--------------------------
Cash and cash equivalents - end of period 668,615 386,896
--------------------------
--------------------------
The accompanying notes are an integral part of these consolidated financial
statements.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Statements of Changes in Equity
(Expressed in thousands of U.S. dollars)
For the quarter ended March 31, Note 2013 2012
$ $
Share capital
Balance beginning of period 5,300,957 2,855,689
Shares issued upon exercise of share
options, for cash 1,422 6,090
Transfer of contributed surplus on exercise
of options 716 6,508
Shares issued on acquisition of European
Goldfields Ltd. 5 - 2,380,140
Transfer of contributed surplus on exercise
of deferred phantom units - 10,522
Balance end of period 5,303,095 5,258,949
--------------------------
Treasury stock
Balance beginning of period (7,445) (4,018)
Purchase of treasury stock (6,294) (6,011)
Shares redeemed upon exercise of restricted
share units 1,432 1,572
--------------------------
Balance end of period (12,307) (8,457)
--------------------------
Contributed surplus
Balance beginning of period 65,382 30,441
Share based payments 8,593 8,215
Shares redeemed upon exercise of restricted
share units (1,432) (1,572)
Options issued on acquisition of European
Goldfields Ltd. 5 - 31,130
Deferred phanton units granted on
acquisition of European Goldfields Ltd. - 29,105
Transfer to share capital on exercise of
options and deferred phantom units (716) (17,030)
--------------------------
Balance end of period 71,827 80,289
--------------------------
Accumulated other comprehensive loss
Balance beginning of period (24,535) (10,069)
Other comprehensive loss for the period (499) (137)
--------------------------
Balance end of period (25,034) (10,206)
--------------------------
Retained earnings
Balance beginning of period 594,876 382,716
Dividends paid (50,241) (49,880)
Profit (loss) attributable to shareholders
of the Company (45,463) 67,851
--------------------------
Balance end of period 499,172 400,687
--------------------------
Total equity attributable to shareholders of
the Company 5,836,753 5,721,262
--------------------------
Non-controlling interests
Balance beginning of period 284,100 56,487
Profit attributable to non-controlling
interests 1,495 5,967
Acquired non-controlling interest 5 - 260,093
--------------------------
Balance end of period 285,595 322,547
--------------------------
Total equity 6,122,348 6,043,809
--------------------------
--------------------------
The accompanying notes are an integral part of these consolidated financial
statements.
Click here for the Consolidated Financial Statements for the quarter ended March 31, 2013 in PDF:
http://media3.marketwire.com/docs/ELD-FS-MDA-Q1-2013.pdf.
Contacts:
Eldorado Gold Corporation
Nancy Woo, VP Investor Relations
604.601.6650 or 1.888.353.8166
604.687.4026 (FAX)
nancyw@eldoradogold.com
www.eldoradogold.com
