(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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