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2012 Third Quarter Financial and Operating Results

Date : 10/26/2012 @ 5:25PM
Source : Marketwired
Stock : Eldorado Gold (ELD)
Quote : 8.63  -0.36 (-4.00%) @ 1:43AM
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2012 Third Quarter Financial and Operating Results

Eldorado Gold (TSX:ELD)
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2 Years : From Sep 2012 to Sep 2014

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(all figures in United States dollars unless otherwise noted) -

Eldorado Gold Corporation (TSX:ELD)(NYSE:EGO) ("Eldorado", the "Company" or "We"), reported profit attributable to shareholders of the Company of $75.8 million for the period, and generated $110.8 million in cash from operating activities before changes in non-cash working capital.

Q3 2012 Summary Results


--  Gold production of 169,565 ounces at an average cash operating cost of
    $493 per ounce, including 14,442 ounces of Efemcukuru pre-commercial
    production (Q3 2011 gold production - 179,195 ounces at $397 per ounce).
--  Gold sales of 165,365 ounces at $1,670 per ounce, including 10,524
    ounces of Efemcukuru sales related to pre-commercial production (Q3 2011
    gold sales - 179,513 ounces at $1,700 per ounce). 
--  Profit attributable to shareholders of the Company of $75.8 million or
    $0.11 per share (Q3 2011 - $102.5 million or $0.19 per share). 
--  $110.8 million generated in cash from operating activities before
    changes in non-cash working capital (Q3 2011 - $159.7 million). 
--  Company production guidance for 2012 maintained at 660,000 ounces of
    gold at cash operating costs of approximately $465 per ounce. 

Financial Results

Net income for the quarter was $75.8 million (or $0.11 per share), compared with $102.5 million (or $0.19 per share) in the third quarter of 2011. The decrease in net income year over year was mainly due to lower gold sales volumes and prices. The Company sold 154,841 ounces in the third quarter of 2012 (not including 10,524 ounces of precommercial sales from Efemcukuru) as compared with 179,513 ounces in the third quarter of 2011.


----------------------------------------------------------------------------
Commercial sales volumes by       3 months ended         9 months ended     
 mine                             September 30,           September 30,     
----------------------------------------------------------------------------
                                    2012        2011        2012        2011
----------------------------------------------------------------------------
Gold ounces sold                 154,841     179,513     438,421     490,207
----------------------------------------------------------------------------
- Kisladag                        83,750      87,121     210,905     204,345
----------------------------------------------------------------------------
- Tanjianshan                     28,944      26,935      84,932      87,405
----------------------------------------------------------------------------
- Jinfeng                         25,805      44,187      86,663     139,086
----------------------------------------------------------------------------
- White Mountain                  16,342      21,270      55,921      59,371
----------------------------------------------------------------------------
Average price per oz.        $     1,670 $     1,700 $     1,665 $     1,546
----------------------------------------------------------------------------
Gold revenue (millions)      $     258.5 $     305.2 $     729.9 $     757.6
----------------------------------------------------------------------------

Operating Performance

Kisladag

Kisladag placed 3.2 million tonnes of ore on the leach pad during the quarter at a grade of 1.05 grams per tonne (Q3 2011 - 3.5 million tonnes of ore at 0.90 grams per tonne). Kisladag produced 84,016 ounces of gold at a cash operating cost of $334 per ounce in the quarter as compared to 86,788 ounces at a cash operating cost of $377 per ounce during Q3 2011. Gold production at Kisladag for the quarter was slightly lower year over year mainly due to the stacking and leaching schedule. Daily production rates increased during the quarter and we expect to see an increase in production during the fourth quarter. Lower cash costs during the quarter were largely a result of higher grade material being placed on the leach pad during the year.

Tanjianshan("TJS")

TJS processed 283,654 tonnes of ore at a grade of 3.55 grams per tonne in the quarter compared to 218,330 tonnes at a grade of 4.25 during Q3 2011. The mine produced 28,944 ounces of gold at a cash operating cost of $396 per ounce in the quarter as compared to 26,935 ounces at a cash operating cost of $353 per ounce in Q3 2011. Gold production at TJS during the third quarter of 2012 was higher than the same quarter of 2011 as a result of increased mill throughput and slightly higher recovery rates, which offset the lower mill head grades. The increase in cash costs during the quarter was mainly due to the lower head grade.

Jinfeng

Jinfeng processed 356,575 tonnes of ore at a grade of 2.43 grams per tonne during the quarter compared to 379,352 tonnes at a grade of 4.26 grams per tonne during Q3 2011. The mine produced 25,821 ounces of gold at a cash operating cost of $946 per ounce during the quarter compared to 44,202 ounces at a cash operating cost of $424 during Q3 2011. Gold production at Jinfeng in Q3 2012 was lower than the same quarter of 2011 due to lower head grades and mill throughput. The open pit is currently in a waste stripping phase and lower grade stockpile material is being treated to make up for the lack of open pit ore. Cash costs were considerably higher due to the lower grade and mill throughput.

White Mountain

White Mountain processed 210,114 tonnes of ore at a grade of 3.14 grams of gold per tonne in the quarter compared to 191,157 tonnes at a grade of 4.15 grams per tonne during Q3 2011. The mine produced 16,342 ounces of gold at a cash operating cost of $766 per ounce during the quarter compared to 21,270 ounces at $475 per ounce during Q3 2011. Gold production at White Mountain in the third quarter of 2012 was lower than in the same period of 2011. This decrease was largely due to lower grades being mined and processed during the quarter, which also negatively affected the cash costs.

Efemcukuru

The Efemcukuru mine and mill operated at expected levels with 93,779 tonnes of ore processed at a grade of 9.31 grams of gold per tonnes in the quarter and approximately 27,005 ounces of gold recovered in concentrate. The paste fill system was commissioned during the quarter and the underground crushing system was completed and is now operational.

During the quarter 14,442 ounces were poured as pre-commercial production during the commissioning and testing of the Kisladag concentrate treatment plant. In September, the concentrate treatment plant was not being operated pending modifications to the circuit. We plan to sell the existing concentrate and future concentrate production to a third party until the modifications are completed. At the end of the quarter there were approximately 51,000 ounces of gold contained in concentrate.

Vila Nova

During the quarter Vila Nova processed 161,859 wet metric tonnes and sold 123,180 dry metric tonnes of iron ore compared to 148,220 wet metric tonnes produced and 170,781 dry metric tonnes sold in Q3 2011. Iron ore production in Q3 2012 increased at Vila Nova compared to the same quarter of 2011, mainly as a result of improved efficiencies in both the mine and treatment plant. Three shipments were completed in the quarter. These were 2 lump shipments and one sinter shipment. Operating costs averaged $56 per dry metric tonne (Q3 2011 - $64 per dry metric tonne).

Stratoni

During the third quarter, Stratoni mined 58,591 tonnes of run-of-mine ore and produced 14,084 tonnes of lead and zinc concentrate at an average cash cost of $717 per tonne of concentrate produced. During the same period, Stratoni sold 15,891 tonnes of concentrate at an average price of $913 per tonne.

Development

Eastern Dragon

At Eastern Dragon work continued during the quarter on the preparation of the Project Permit Approval (PPA) to be submitted to the National Development and Reform Commission (NDRC). We anticipate that the application will be submitted by the end of 2012. Construction activities have been suspended until the PPA is approved.

Tocantinzinho

The Tocantinzinho project was granted the Preliminary Environmental License (PEL) in September, an important milestone in the permitting phase. The PEL confirms the environmental feasibility of the project and allows the Company to apply for the Construction License, the final permit needed for construction to commence. Work on site was limited to environmental and hydrology field work in the immediate area, along with geotechnical drilling of the proposed road corridor. The feasibility study is well advanced and will be completed in the fourth quarter 2012.

Perama Hill

Drilling activity at the Perama site continued throughout the quarter. Geotechnical drill holes have been drilled in the plant site to support geotechnical design analysis for civil structures and foundations. In addition drilling in the open pit area has been carried out to obtain drill core for geotechnical analysis for pit slope stability design. Processing of the Perama Environmental Impact Assessment (EIA) application through the Ministry of Environment (MOE) continues, with a decision expected before the end of the year. Public meetings have been held in the district as prescribed by the MOE. All indications from the government agencies remain positive towards the project.

Olympias

Rehabilitation of the Olympias underground mine and processing plant continued during the quarter. In the mine, 406 meters of underground access was rehabilitated or developed. Development of the tunnel linking Stratoni and Olympias progressed well during the quarter, with 108 meters of advance. Metallurgical testwork to evaluate the proposed new processing facility at Stratoni continued during the third quarter. Commissioning of the Olympias processing plant was on-going during the quarter.

Skouries

Site work at Skouries during the quarter consisted mainly of tree cutting at the plant site, construction of access roads, and earthworks for various site infrastructures.

Certej

The Environmental Permit for Certej was approved by the Timisoara Regional Department of Environment during the quarter. Construction work advanced during the quarter on the temporary power line to site and the water pumping station on the Mures River.

Exploration Update

A total of 54,300 metres of exploration drilling were completed during the quarter at our exploration projects and mine operations in Greece, Romania, Turkey, Brazil, and China. With 132,800 meters of drilling completed year-to-date, we are on track to complete our 2012 exploration programs according to plan.

Turkey

In Turkey, drilling during the quarter continued at the Efemcukuru minesite, and commenced at Kisladag and at three reconnaissance projects (Sebin, Dolek, and Gaybular).

Exploration drilling resumed at the Kisladag minesite late in the quarter, testing conceptual targets defined by a combination of three-dimensional induced polarization/resistivity surveys, detailed ground magnetics, and soil geochemistry anomalies. This program is directed towards identifying possible mineralized satellite intrusions to the main porphyry system.

Six drillholes were completed at the Sebin porphyry/epithermal prospect in the Pontide Belt. The project area covers a large surface alteration zone with locally anomalous copper, molybdenum and gold values, but no significant mineralization has been intersected to date in drillholes. Drilling also began at the Dolek prospect in the Pontide Belt, and at the Gaybular project in Western Turkey.

At Efemcukuru 32 drillholes (8,440 metres) were completed on the Kestane Beleni northwest extension (KBNW), South Ore Shoot (SOS), and Kokarpinar vein targets. At KBNW, drilling defined a new shallowly northwest-plunging lower zone of mineralization which has been traced for nearly 400 metres along strike and remains open to the northwest. At the SOS, drilling identified high gold grades at 50 to 75 metre stepouts from previous mineralized holes. At Kokarpinar, limited drillsite availability meant that drilling was focused on shallow targets on the central and southern part of the vein. Selected drilling results are summarized in the table below:

Selected Q3 drilling results, Efemcukuru:


----------------------------------------------------------------------------
                  From       To Interval       Au       Ag       Pb       Zn
Hole ID            (m)      (m)      (m)    (g/t)    (g/t)      (%)      (%)
----------------------------------------------------------------------------
Kestane Beleni Northwest Extension (lower zone)                             
----------------------------------------------------------------------------
KV-433          215.15   216.50     1.35    29.70    24.10     0.88     2.02
----------------------------------------------------------------------------
KV-444          170.86   172.58     1.72    27.46    19.61     1.61     2.23
----------------------------------------------------------------------------
KV-447          240.27   241.48     1.21    65.59    63.40     2.26     4.56
----------------------------------------------------------------------------
KV-448          183.83   186.20     2.37     7.39    37.90     2.88     1.20
----------------------------------------------------------------------------
South Ore Shoot (deep step-out drilling)                                    
----------------------------------------------------------------------------
KV-496          223.00   224.50     1.50     4.95     3.70     0.01     0.03
----------------------------------------------------------------------------
KV-497          297.60   300.91     3.31    15.67    19.78     1.00     1.73
----------------------------------------------------------------------------
KV-501          282.50   287.20     4.70    11.80     8.00     0.02     0.03
             ---------------------------------------------------------------
including       286.10   287.20     1.10    44.80    26.70     0.01     0.02
----------------------------------------------------------------------------
Kokarpinar Vein                                                             
----------------------------------------------------------------------------
KV-459          222.55   227.50     4.95     6.84  Assays not yet completed 
----------------------------------------------------------------------------
KV-423          225.20   226.00     0.80   283.00   110.00     0.03     0.11
----------------------------------------------------------------------------

Greece

Drilling continued at the Piavitsa prospect, with seven holes completed and approximately 7,500 metres drilled during the quarter. The primary target at Piavitsa is polymetallic, gold-silver rich, carbonate replacement sulfide mineralization along the Stratoni fault zone, similar to that typical of the Olympias deposit. All 23 drillholes completed in this year's program have intersected the fault zone near the projected depth, and have cut intervals in the fault zone with some combination of massive sulfide, disseminated sulphide, or oxide material. Selected drilling results are summarized in the table below:

Selected Q3 drilling results, Piavitsa Project:


----------------------------------------------------------------------------
                  From       To Interval       Au       Ag       Pb       Zn
Hole ID            (m)      (m)      (m)    (g/t)    (g/t)      (%)      (%)
----------------------------------------------------------------------------
Stratoni Fault replacement-style zones                                      
----------------------------------------------------------------------------
PHG065          436.00   440.00     4.00     2.05    19.20     0.35     0.46
----------------------------------------------------------------------------
PHG066          207.00   210.00     3.00     9.57    18.10     0.02     0.03
----------------------------------------------------------------------------
PHG067A          62.00    66.00     4.00     2.12     3.50     0.02     0.05
             ---------------------------------------------------------------
and              81.00    83.00     2.00     5.33     4.20     0.00     0.01
----------------------------------------------------------------------------
PHG070          209.00   232.00    23.00     4.35    85.30     2.92     1.68
             ---------------------------------------------------------------
including       215.00   223.00     8.00    11.89   228.40     8.27     4.65
----------------------------------------------------------------------------
PHG071          160.70   168.20     7.50     1.21    14.30     0.19     0.76
----------------------------------------------------------------------------
PHG072          182.00   188.00     6.00     1.38     7.70     0.06     0.11
----------------------------------------------------------------------------
PHG073           42.00    54.00    12.00     2.21    37.00     0.44     1.70
             ---------------------------------------------------------------
including        48.00    52.00     4.00     4.98    49.10     0.98     3.43
----------------------------------------------------------------------------
PHG074           80.00    87.00     7.00     1.20     7.40     0.02     0.23
----------------------------------------------------------------------------
PHG076          150.00   156.70     6.70     1.80    37.10     0.90     2.76
             ---------------------------------------------------------------
                184.90   185.40     0.50    42.40    25.00     0.11     0.29
----------------------------------------------------------------------------
Hangingwall epithermal vein zones                                           
----------------------------------------------------------------------------
PHG078           86.70   107.00    20.30     2.32    11.40     0.31     0.56
             ---------------------------------------------------------------
                142.00   164.00    22.00     1.61     3.10     0.06     0.09
             ---------------------------------------------------------------
                197.80   210.00    12.20     1.00    13.90     0.06     0.04
----------------------------------------------------------------------------

At Skouries, 17 drillholes (6,500 metres) were completed in the quarter, representing roughly half of the planned infill and confirmation programs. Infill drillholes have documented low but consistent copper and gold grades within the in-pit inferred resource halo of the deposit including 94.0 metres at 0.3 grams per tonne gold and 0.27% copper in hole SOP-99; and 92.0 metres at 0.32 grams per tonne gold and 0.31% copper in hole SOP-100. Confirmation drillholes have intersected the intensely stockwork veined potassically-altered deposit core, with copper and gold grades similar to that predicted by the resource model.

At the Fisoka copper-gold porphyry prospect, two holes were completed during the quarter on the northern stock, and drilling has now shifted to the untested central stock area. The northern stock drilling further defined the shallow supergene zone outlined in previous drilling programs.

At Perama Hill geotechnical, metallurgical and infill drilling was conducted on the main deposit and infrastructure sites. Exploration drilling of targets outside of the existing resource model and at Perama South will commence in Q4 2012.

Romania

At the Certej deposit, drill programs were completed during the quarter in the West Pit and Link Zone target areas. In the West Pit area, drilling tested for extensions of the high-grade Hondol and Kaiser vein systems, which were historically exploited in underground openings. Although this drilling failed to identify continuous high-grade veins, it outlined an approximately 50 metre wide, tabular west by northwest-striking zone of lower grade material which will be further tested in 2013. The Link Zone program, targeting underdrilled areas of the deposit between the West and Main zones, was completed during the quarter with 14 holes (5,700 metres) drilled. Most of these holes intersected zones of strong gold mineralization, which has positively impacted the deposit resource model.

China

Exploration drilling in China during the quarter included projects in the Guizhou, Jilin, and Qinghai regions. In Guizhou, exploration drilling was conducted within the Jinfeng mining license, at the nearby Shizhu prospect, and at the Weiruo prospect (Jinluo exploration license). At the Jinfeng deposit, exploration drilling continued to focus on the F3, F6, and F7 mineralized structures from both surface and underground drill locations. A total of 19 holes representing approximately 5,700 metres of drilling were completed. The surface drilling program continues to produce high grade intercepts associated with the F6 structure, with notable intercepts during the quarter including 16.0 metres at 16.49 grams per tonne gold (HDDS0275); 6.0 metres at 15.59 grams per tonne gold (also HDDS0275), and 22.0 metres at 5.14 grams per tonne gold (HDDS0282).

In Qinghai (Tanjianshan), the Qinglongtan North and Xijingou drilling programs were completed during the quarter, with 9 drillholes and 27 drillholes respectively. At Qinglongtan North, drilling focused on previously untested areas down dip and along strike from the northern end of the previously mined deposit. Several of these holes intersected strong mineralization, including intervals of 26.0 metres at 9.24 grams per tonne gold (QD279) and 9.1 metres at 2.68 grams per tonne gold (QD278). These new intercepts may represent a new high grade gold zone lying beneath the known deposit, and further drill testing is planned for the fourth quarter of 2012. At Xinjingou, step-out drilling tested for extensions to the known zones of high grade mineralization. Notable results from this program include 11.8 metres at 11.51 grams per tonne gold (XD073); 4.0 metres at 15.79 grams per tonne gold (XD075), and 9.0 metres at 8.01 grams per tonne gold (also XD075). Results are being compiled to determine if further drilling is justified at Xijingou. Late in the quarter, a second phase of drilling was initiated at the Jinlonggou deposit, testing a variety of near-pit structurally-defined targets.

In the Jilin region (White Mountain), drilling was conducted at the Dongdapo, Xiaoshiren, and Zhenzhumen prospect areas. No significant results have been obtained to date.

Brazil

No drilling was conducted during the quarter at the Tocantinzinho project. Exploration activities focused on reconnaissance-level evaluation of the adjacent Rubens Zilio license area through systematic soil sampling and prospecting.

At the Agua Branca project (35 kilometres south of Tocantinzinho) the 2012 drilling program was concluded, with 15 drillholes during the quarter testing for along-strike extensions of the Camarao zone. Although the mineralized zone demonstrates continuity to the southwest, grades are erratic, and no significant wide intercepts were obtained. Additional auger drilling, mapping, and rock sampling programs are underway to generate new drill targets at Agua Branca.

Fieldwork commenced during the quarter at the new Chapadinha project, which we are exploring under an option agreement. The Chapadinha project covers an area with extensive garimpo workings exploiting narrow veins high gold grades. Our work program is directed towards defining drill targets that will assess the potential of the area for a bulk-tonnage style deposit.

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

Conference Call

Eldorado will host a conference call on Friday October 26, 2012 to discuss the 2012 Third Quarter Financial and Operating Results at 11:30am EDT (8:30am PDT). You may participate in the conference call by dialling 416-340-9432 in Toronto or 1-877-440-9795 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 November 2, 2012 by dialling 905-694-9451 in Toronto or 1-800-408-3053 toll free in North America and entering the Pass code: 3971093.

Qualified Person(s)

Dr. Peter Lewis, P.Geo., VP Exploration for Eldorado Gold Corporation, is the Qualified Person for the technical disclosure of exploration results in this news release. Dr. Lewis is the Qualified Person as defined in the National Instrument 43-101 (Standards of Disclosure for Mineral Projects) of the Canadian Securities Regulators, responsible for preparing or supervising the preparation of the scientific or technical information contained in this document and verifying the technical data disclosed in the document relating to exploration results. Dr. Lewis consents to the inclusion in this news release of the matters based on his information in the form and context in which it appears.

Assay results reported in this release district were diamond drill core samples prepared at Eldorado's sample preparation facilities in Turkey and China. The prepared samples were sent to and assayed at various ACME and ALS analytical facilities worldwide. For all projects, analyses were done on sawn half core samples. Analysis for gold used fire assay (AA finish or Gravimetric Finish) whereas AA and ICP methods were used for Ag, Cu, Pb and Zn analyses. Assay quality was monitored and controlled by the regular insertion of standard reference materials, blank samples and duplicate samples prior to shipment from the respective sample preparation site.

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 Q3, 2012 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 30, 2012.

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
                     First    Second     Third     Third      Nine      Nine
                   Quarter   Quarter   Quarter   Quarter    Months    Months
                      2012      2012      2012      2011      2012      2011
----------------------------------------------------------------------------
Gold Production                                                             
----------------                                                            
Ounces Sold        150,661   132,919   154,841   179,513   438,421   490,207
Ounces Produced    151,242   132,472   155,123   179,195   438,837   490,201
Cash Operating                                                              
 Cost                                                                       
 ($/oz)(1,3,4)         452       480       493       397       475       401
Total Cash Cost                                                             
 ($/oz)(2,3,4)         529       550       567       463       549       467
Realized Price                                                              
 ($/oz - sold)       1,707     1,612     1,670     1,700     1,665     1,546
----------------------------------------------------------------------------
Kisladag Mine,                                                              
 Turkey                                                                     
----------------                                                            
Ounces Sold         65,164    61,991    83,750    87,121   210,905   204,345
Ounces Produced     65,707    61,575    84,016    86,788   211,298   204,309
Tonnes to Pad    3,140,492 3,259,574 3,245,700 3,520,220 9,645,766 9,055,906
Grade (grams /                                                              
 tonne)               1.13      1.30      1.05      0.90      1.16      0.94
Cash Operating                                                              
 Cost                                                                       
 ($/oz)(3,4)           339       333       334       377       335       383
Total Cash Cost                                                             
 ($/oz)(2,3,4)         374       357       363       401       365       406
----------------------------------------------------------------------------
Tanjianshan                                                                 
 Mine, China                                                                
----------------                                                            
Ounces Sold         28,816    27,172    28,944    26,935    84,932    87,405
Ounces Produced     28,816    27,172    28,944    26,935    84,932    87,405
Tonnes Milled      262,793   245,456   283,654   218,330   791,904   721,098
Grade (grams /                                                              
 tonne)               4.00      3.73      3.55      4.25      3.75      4.12
Cash Operating                                                              
 Cost                                                                       
 ($/oz)(3,4)           408       432       396       353       411       365
Total Cash Cost                                                             
 ($/oz)(2,3,4)         605       621       593       541       606       552
----------------------------------------------------------------------------
Jinfeng Mine,                                                               
 China                                                                      
----------------                                                            
Ounces Sold         35,197    25,661    25,805    44,187    86,663   139,086
Ounces Produced     35,235    25,630    25,821    44,202    86,686   139,116
Tonnes Milled      368,756   337,560   356,575   379,352 1,062,891 1,161,739
Grade (grams /                                                              
 tonne)               3.17      2.68      2.43      4.26      2.77      4.21
Cash Operating                                                              
 Cost                                                                       
 ($/oz)(3,4)           643       786       946       424       775       418
Total Cash Cost                                                             
 ($/oz)(2,3,4)         715       858     1,044       509       855       483
----------------------------------------------------------------------------
White Mountain                                                              
 Mine, China                                                                
----------------                                                            
Ounces Sold         21,484    18,095    16,342    21,270    55,921    59,371
Ounces Produced     21,484    18,095    16,342    21,270    55,921    59,371
Tonnes Milled      158,114   188,038   210,114   191,157   556,266   523,926
Grade (grams /                                                              
 tonne)               4.46      3.60      3.14      4.15      3.67      4.40
Cash Operating                                                              
 Cost                                                                       
 ($/oz)(3,4)           543       622       766       475       634       475
Total Cash Cost                                                             
 ($/oz)(2,3,4)         588       666       813       519       679       517
----------------------------------------------------------------------------
(1) Cost figures calculated in accordance with the Gold Institute Standard. 
(2) Cash Operating Costs, plus royalties and the cost of off-site           
administration.                                                             
(3) Cash operating costs and total cash costs are non-GAAP measures. See the
section "Non-GAAP Measures" of this Review.                                 
(4) 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)                                    
----------------------------------------------------------------------------
                                                                            
                                                September 30,   December 31,
                                          Note           2012           2011
                                                            $              $
ASSETS                                                                      
Current assets                                                              
 Cash and cash equivalents                            271,401        393,763
 Restricted cash                             6         36,794         55,390
 Marketable securities                                  3,052          2,640
 Accounts receivable and other                         55,402         42,309
 Inventories                                          216,216        164,057
                                              ------------------------------
                                                      582,865        658,159
Non-current inventories                                21,700         26,911
Investments in significantly influenced                                     
 companies                                             30,093         18,808
Deferred income tax assets                              3,253          4,259
Restricted assets and other                            42,387         38,430
Defined benefit pension plan                 8          4,155              -
Property, plant and equipment                       6,012,298      2,847,910
Goodwill                                              669,311        365,928
                                              ------------------------------
                                                    7,366,062      3,960,405
                                              ------------------------------
                                              ------------------------------
LIABILITIES & EQUITY                                                        
Current liabilities                                                         
 Accounts payable and accrued                                               
  liabilities                                         214,596        168,367
 Current debt                                7         45,558         81,031
                                              ------------------------------
                                                      260,154        249,398
Debt                                         7         50,000              -
Asset retirement obligations                           51,286         43,213
Defined benefit pension plan                 8              -         19,969
Deferred income tax liabilities                       871,056        336,579
                                              ------------------------------
                                                    1,232,496        649,159
                                              ------------------------------
Equity                                                                      
Share capital                                9      5,290,316      2,855,689
Treasury stock                                        (7,317)        (4,018)
Contributed surplus                                    69,278         30,441
Accumulated other comprehensive loss                 (17,162)       (10,069)
Retained earnings                                     479,894        382,716
                                              ------------------------------
Total equity attributable to                                                
 shareholders of the Company                        5,815,009      3,254,759
Attributable to non-controlling                                             
 interests                                            318,557         56,487
                                              ------------------------------
                                                    6,133,566      3,311,246
                                              ------------------------------
                                                    7,366,062      3,960,405
                                              ------------------------------
                                              ------------------------------

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)                                    
----------------------------------------------------------------------------
                                                                            
                                    Three months ended    Nine months ended 
                                       September 30,        September 30,   
                                   -------------------- --------------------
                                                                            
                                         2012      2011       2012      2011
                                            $         $          $         $
Revenue                                                                     
 Metal sales                          281,839   327,364    797,579   799,088
                                                                            
Cost of sales                                                               
 Production costs                     107,615    95,020    293,340   250,762
 Depreciation and amortization         26,082    29,954     78,635    91,014
                                   -------------------- --------------------
                                      133,697   124,974    371,975   341,776
                                   -------------------- --------------------
Gross profit                          148,142   202,390    425,604   457,312
                                                                            
Exploration expenses                   11,130     6,913     29,899    15,359
General and administrative expenses    17,518    11,207     53,345    45,815
Defined benefit pension plan                                                
 expense                                  638       418      1,899     1,274
Share based payments                    4,396     3,599     17,210    15,403
Transaction costs                         552         -     20,005         -
Foreign exchange (gain) loss          (1,926)     3,530    (2,227)     5,558
                                   -------------------- --------------------
Operating profit                      115,834   176,723    305,473   373,903
                                                                            
(Gain) loss on disposal of assets        (23)       420        423   (2,672)
Loss (gain) on marketable                                                   
 securities and other investments           -     1,528    (1,032)       239
Loss on investments in                                                      
 significantly influenced companies     1,375     1,067      3,119     2,861
Other income                            (264)   (2,792)    (2,641)   (4,808)
Asset retirement obligation                                                 
 accretion                                457       387      1,328     1,160
Interest and financing costs            1,481     2,293      3,615     5,407
                                   -------------------- --------------------
                                                                            
Profit before income tax              112,808   173,820    300,661   371,716
Income tax expense                     34,435    63,077     98,965   120,520
                                   -------------------- --------------------
Profit for the period                  78,373   110,743    201,696   251,196
                                   -------------------- --------------------
                                                                            
Attributable to:                                                            
Shareholders of the Company            75,845   102,478    190,320   229,816
Non-controlling interests               2,528     8,265     11,376    21,380
                                   -------------------- --------------------
                                       78,373   110,743    201,696   251,196
                                   -------------------- --------------------
                                   -------------------- --------------------
                                                                            
Weighted average number of shares                                           
 outstanding                                                                
Basic                                 712,789   549,085    680,121   548,800
Diluted                               713,340   551,309    681,222   550,737
                                                                            
Earnings per share attributable to                                          
 shareholders of the Company:                                              
Basic earnings per share                 0.11      0.19       0.28      0.42
Diluted earnings per share               0.11      0.19       0.28      0.42

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)                                    
----------------------------------------------------------------------------
                                                                            
                                    Three months ended    Nine months ended 
                                       September 30,        September 30,   
                                   -------------------- --------------------
                                         2012      2011       2012      2011
                                            $         $          $         $
                                                                            
Profit for the period                  78,373   110,743    201,696   251,196
Other comprehensive income loss:                                            
Change in fair value of available-                                          
 for-sale financial assets (net of                                          
 income taxes of nil and $12; and                                           
 nil and $12)                           (231)     (399)    (1,368)   (1,383)
Realized gains on disposal of                                               
 available-for-sale financial                                               
 assets transferred to net income           -         -       (24)     (434)
Actuarial losses on defined benefit                                         
 pension plans                              -         -    (5,701)         -
                                   -------------------- --------------------
Total other comprehensive loss for                                          
 the period                             (231)     (399)    (7,093)   (1,817)
                                   -------------------- --------------------
Total comprehensive income for the                                          
 period                                78,142   110,344    194,603   249,379
                                   -------------------- --------------------
                                   -------------------- --------------------
                                                                            
Attributable to:                                                            
Shareholders of the Company            75,614   102,079    183,227   227,999
Non-controlling interests               2,528     8,265     11,376    21,380
                                   -------------------- --------------------
                                       78,142   110,344    194,603   249,379
                                   -------------------- --------------------
                                   -------------------- --------------------

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)                                    
----------------------------------------------------------------------------
                                                                            
                                    Three months ended    Nine months ended 
                                       September 30,        September 30,   
                                   -------------------- --------------------
                               Note      2012      2011       2012      2011
                                            $         $          $         $
Cash flows generated from                                                   
 (used in):                                                                 
Operating activities                                                        
Profit for the period                  78,373   110,743    201,696   251,196
Items not affecting cash                                                    
Asset retirement obligation                                                 
 accretion                                457       387      1,328     1,160
Depreciation and amortization          26,082    29,954     78,635    91,014
Unrealized foreign exchange                                                 
 (gain) loss                            (446)     1,500      (809)     6,261
Deferred income tax (recovery)                                              
 expense                                 (42)    10,079    (6,730)       374
(Gain) loss on disposal of                                                  
 assets                                  (23)       420        423   (2,672)
Loss on investments in                                                      
 significantly influenced                                                   
 companies                              1,375     1,067      3,119     2,861
Loss (gain) on marketable                                                   
 securities and other                                                       
 investments                                -     1,528    (1,032)       239
Share based payments                    4,396     3,599     17,210    15,403
Defined benefit pension plan                                                
 expense                                  638       418      1,899     1,274
                                   -------------------- --------------------
                                      110,810   159,695    295,739   367,110
                                                                            
Changes in non-cash working                                                 
 capital                         11    20,743    13,933  (121,914)   (2,389)
                                   -------------------- --------------------
                                      131,553   173,628    173,825   364,721
Investing activities                                                        
Net cash received on                                                        
 acquisition of subsidiary        5         -         -     18,789         -
Purchase of property, plant                                                 
 and equipment                      (136,779)  (76,028)  (303,891) (201,630)
Proceeds from the sale of                                                   
 property, plant and equipment             99        24        890        41
Net proceeds on pre-production                                              
 sales                                 17,412         -     37,434         -
Purchase of marketable                                                      
 securities                             2,152   (1,609)          -   (1,823)
Proceeds from the sale of                                                   
 marketable securities                      -         -        230     6,345
Funding of non-registered                                                   
 supplemental retirement plan                                               
 investments, net                           -        43     14,486   (4,937)
Investments in significantly                                                
 influenced companies                (11,947)   (2,470)   (15,359)   (3,788)
Decrease in restricted cash            20,240        35     18,571   (2,963)
                                   -------------------- --------------------
                                    (108,823)  (80,005)  (228,850) (208,755)
Financing activities                                                        
Issuance of common shares for                                               
 cash                                   3,430    22,631     20,261    30,616
Dividend paid to non-                                                       
 controlling interests                  (967)   (4,473)    (2,238)   (8,095)
Dividend paid to shareholders        (43,262)  (33,426)   (93,142)  (61,167)
Purchase of treasury stock              (691)     (280)    (6,702)   (6,438)
Long-term and bank debt                                                     
 proceeds                                   -     2,579     50,000     5,782
Long-term and bank debt                                                     
 repayments                          (24,429)  (29,749)   (35,516)  (74,465)
                                     (65,919)  (42,718)   (67,337) (113,767)
                                   -------------------- --------------------
Net (decrease) increase in                                                  
 cash and cash equivalents           (43,189)    50,905  (122,362)    42,199
Cash and cash equivalents -                                                 
 beginning of period                  314,590   305,638    393,763   314,344
                                   -------------------- --------------------
                                                                            
Cash and cash equivalents -                                                 
 end of period                        271,401   356,543    271,401   356,543
                                   -------------------- --------------------
                                   -------------------- --------------------

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)                                    
----------------------------------------------------------------------------
                                                                            
                                    Three months ended    Nine months ended 
                                       September 30,        September 30,   
                                   -------------------- --------------------
                                         2012      2011       2012      2011
                                            $         $          $         $
Share capital                                                               
Balance beginning of period         5,282,368 2,825,024  2,855,689 2,814,679
 Shares issued upon exercise                                                
  of share options, for cash            3,430    22,631     20,261    29,131
 Transfer of contributed                                                    
  surplus on exercise of                                                    
  options                               4,518     6,714     22,674     9,074
 Shares issued on acquisition                                               
  of European Goldfields Ltd.     5         -         -  2,380,140         -
 Shares issued for deferred                                                 
  phantom units                             -         -     11,552         -
 Shares issued upon exercise                                                
  of warrants, for cash                     -         -          -     1,485
                                   -------------------- --------------------
Balance end of period               5,290,316 2,854,369  5,290,316 2,854,369
                                   -------------------- --------------------
                                                                            
Treasury stock                                                              
Balance beginning of period           (7,355)   (4,432)    (4,018)         -
 Purchase of treasury stock             (691)     (280)    (6,702)   (6,438)
 Shares redeemed upon exercise                                              
  of restricted share units               729       499      3,403     2,225
                                   -------------------- --------------------
Balance end of period                 (7,317)   (4,213)    (7,317)   (4,213)
                                   -------------------- --------------------
                                                                            
Contributed surplus                                                         
Balance beginning of period            70,444    30,828     30,441    22,967
 Share based payments                   4,081     3,742     16,231    15,689
 Shares redeemed upon exercise                                              
  of restricted share units             (729)     (499)    (3,403)   (2,225)
 Options issued on acquisition                                              
  of European Goldfields Ltd.     5         -         -     31,130         -
 Deferred phantom units                                                     
  granted on acquisition of                                                 
  European Goldfields Ltd.                  -         -     29,105         -
 Transfer to share capital on                                               
  exercise of options and                                                   
  deferred phantom units              (4,518)   (6,714)   (34,226)   (9,074)
                                   -------------------- --------------------
Balance end of period                  69,278    27,357     69,278    27,357
                                   -------------------- --------------------
                                                                            
Accumulated other                                                           
 comprehensive loss                                                         
Balance beginning of period          (16,931)   (3,055)   (10,069)   (1,637)
 Other comprehensive loss for                                               
  the period                            (231)     (399)    (7,093)   (1,817)
                                   -------------------- --------------------
Balance end of period                (17,162)   (3,454)   (17,162)   (3,454)
                                   -------------------- --------------------
                                                                            
Retained earnings                                                           
Balance beginning of period           447,311   224,818    382,716   125,221
 Dividends paid                      (43,262)  (33,426)   (93,142)  (61,167)
 Profit attributable to                                                     
  shareholders of the Company          75,845   102,478    190,320   229,816
                                   -------------------- --------------------
Balance end of period                 479,894   293,870    479,894   293,870
                                   -------------------- --------------------
Total equity attributable to                                                
 shareholders of the Company        5,815,009 3,167,929  5,815,009 3,167,929
                                   -------------------- --------------------
                                                                            
Non-controlling interests                                                   
Balance beginning of period           316,029    41,041     56,487    36,021
 Profit attributable to non-                                                
  controlling interests                 2,528     8,265     11,376    21,380
 Dividends declared to non-                                                 
  controlling interests                     -         -    (9,399)   (8,095)
 Acquired non-controlling                                                   
  interest                        5         -         -    260,093         -
                                   -------------------- --------------------
Balance end of period                 318,557    49,306    318,557    49,306
                                   -------------------- --------------------
                                                                            
Total equity                        6,133,566 3,217,235  6,133,566 3,217,235
                                   -------------------- --------------------
                                   -------------------- --------------------

The accompanying notes are an integral part of these consolidated financial
statements.

Click here for the Unaudited Consolidated Financial Statements for the quarter ended Sept 30, 2012 in PDF: http://media3.marketwire.com/docs/2012Q3Financials.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



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