NEWS RELEASE | ELD No. 10-18 |
TSX: ELD NYSE: EGO ASX: EAU | October 28, 2010 |
Q3, 2010 Financial and Operating Results
Earnings of $0.09 per share; Cash flow from operations of $0.18 per share
(all figures in United States dollars, unless otherwise noted)
VANCOUVER, BC – Paul N. Wright, President and Chief Executive Officer of Eldorado Gold Corporation, (“Eldorado” the “Company” or “we”) is pleased to report on the Company's financial and operational results for the third quarter ended September 30, 2010. The Company reported net income of $48.8 million, or $0.09 per share, and cash flow from operations of $96.0 million or $0.18 per share for the third quarter ended September 30, 2010.
“We maintain our guidance of 625,000 ounces of gold for 2010 at a cash operating cost of $375 per ounce, firmly positioning us in the lowest quartile of costs ” stated Paul N. Wright, President and Chief Executive Officer of Eldorado. “ We are pleased with our increase in reserves at Kisladag in Turkey and our exploration and development progress at Tocantinzinho (“TZ”) in Brazil. We expect to report our exploration progress in China and Turkey in the middle of the fourth quarter”.
Q3 2010 Highlights and Updates
Produced 151,297 ounces of gold at an average cash operating cost of $386 per ounce;
Sold 154,655 ounces of gold at a realized average price of $1,231 per ounce;
Reported earnings of $0.09 per share;
Generated $96.0 million of cash or $0.18 per share from operating activities before changes in non-cash working capital.
Reported a 14% increase in reserves at Kisladag from the 27,000 meters drilled this year;
Completed the acquisition of Brazauro Resources and reported an initial measured and indicated resource of 2.1 million ounces of gold at the TZ project;
Completed the acquisition of the Xiaoshiren Central exploration license located 20 kilometers southeast of White Mountain.
Financial Results
Eldorado’s consolidated net income for the third quarter of 2010 was $48.8 million or $0.09 per share compared to $30.2 million or $0.08 in the third quarter of 2009. Net income for the nine-month period ended September 30, 2010 was $162.1 million or $0.30 per share, compared to $69.1 million or $0.18 per share in the comparable period from 2009.
During the third quarter, we sold 154,655 ounces of gold at an average price of $1,231 per ounce compared to 85,246 ounces of gold at an average price of $957 per ounce in the third quarter of 2009.
Corporate Activities
Completed the acquisition of Brazauro Resources
On July 20, 2010 we completed the acquisition Brazauro Resources where we acquired 100% interest in the TZ project in Tapajos, Brazil which we had operated in a joint venture since July 2008. TZ is a late stage exploration project with a current Measured and Indicated Resource of 2.1 million ounces of gold. In addition we acquired option agreements to earn into 100% of the Agua Branca and Piranhas properties also located in the Tapajos District immediately adjacent to the TZ project.
Operating Performance
Kisladag
During the quarter we produced 62,086 ounces of gold at a cash operating cost of $337 per ounce. We placed 2,767,179 tonnes of ore on the leach pad at an average grade of 0.98 grams per tonne of gold.
The mine continued to perform well during the quarter. Metallurgical test work on heap leach recoveries continues and we expect to be able to comment on the significance of the results at year end.
Jinfeng
During the quarter we produced 46,116 ounces of gold at cash operating cost of $425 per ounce and we
milled 387,427 tonnes of ore at a grade of 4.42 grams per tonne. Production from the open pit was 311,191 tonnes of ore and underground production totalled 96,272 tonnes of ore.
Mining from the open pit concentrated on the upper benches as seasonal rainfall slowed operations in the bottom of the pit.
Tanjianshan
At Tanjianshan we produced 28,847 ounces of gold at cash operating cost of $391 per ounce. We milled a total of 283,598 tonnes of ore at an average grade of 3.84 grams per tonnes.
The plant continues to perform well. The roaster cyclones will be replaced during the fourth quarter along with an inspection of the two roasters during a planned major regional power shutdown. This is the first inspection since the plant was commissioned in 2009.
White Mountain
During the quarter we produced 14,248 ounces of gold at a cash operating cost of $477 per ounce and we processed 154,125 tonnes of ore at a grade of 4.01 grams per tonnes.
Higher than normal rainfall and related dewatering issues reduced underground production in the third quarter. Construction of a culvert to contain and divert a local river that flows over the top of the southern workings is underway.
Development
Efemcukuru
The installation of electrical and instrumentation hardware and cabling continues in the concentrator plant. Dry commissioning of some of the smaller equipment has begun. Structural steel erection at the filtration and backfill plants has been completed. The balance of the equipment is being installed prior to closure of the structures and commencement of services installation. Full commissioning of the concentrator is on schedule for the fourth quarter with the balance of the process to be commissioned in the first quarter 2011.
Preparations for both the rock dump and tailings dump have been completed. Approval for the construction of the final component of the mine water management system has been received. Site services and the construction of the ancillary buildings will be concluded in first quarter 2011.
Pre-production development of all three mine access ramps is now well underway. Spending in the quarter totalled $15.9 million.
Vila Nova Iron Ore
Trial mining and processing at the mine continue. The first shipments of ore have been made from site through to the Anglo Ferrous loading terminal, with first ore sales planned for November.
Eastern Dragon
Plans have been prepared for the start of winter construction upon receipt of the Project Permit which is currently before the Provincial authorities. This program will focus on closing in the concentrator buildings and installation of equipment foundations including ball mill foundations.
Perama Hill
The status of the Pre Environmental Impact Assessment review at the Ministry of Environment continues to be monitored.
Tocantinzinho
Field work for input into the Prefeasibility Report on TZ continues on schedule. Geotechnical drilling in the open pit has been completed as well as the installation of ground water monitoring devices for hydro geological analysis of the proposed pit. Condemnation and geotechnical auger drilling is being carried out for the plant site, rock and tailing impound areas. A survey of the area has been completed to assist in the final location of infrastructure and the location of the access road. Spending in the quarter was $1.3 million.
Exploration
Turkey
Kisladag
Eighteen diamond drill holes totalling 8,627 meters were drilled at Kisladag in the third quarter. These included seven geotechnical drill holes which constituted the remainder of the Phase 1 resource drilling program and some additional holes planned as a second phase of resource drilling. The 9,000 meter Phase 2 drilling program began in September and is designed to infill gaps mainly along the northern and western margins of the deposit and to further explore the newly-defined South-western Extension zone.
Efemcukuru
No new drilling was completed at Efemcukuru during the third quarter as drilling permits are still pending for the planned 2010 program. Work during the quarter focused on defining targets on the Kokarpinar and NW extension of the Kestane Beleni veins for future drilling.
Reconnaissance programs
Drilling programs were initiated during the quarter at Malatya-Hasancelebi and Sizma projects and will commence shortly at the Sayacik and AS projects. Results received to date on the drilling at both projects are encouraging. Reconnaissance sampling and soil surveys were completed on the early–stage Dolek, Catak and Atalan projects during the third quarter.
China
Jinfeng
Drilling programs continued during the quarter in the Jinfeng district, at the mine proper, at the Bannian prospect located approximately 20 kilometers southwest of Jinfeng mine and at the Lintan and Yaojiatan prospects located immediately north of the mine. At the Jinfeng mine, underground and surface drilling focused both on upgrading zones of inferred resources and testing new targets. Structural mapping completed in the open pit helped define controls on gold distribution leading to both a revision of the deposit structural model and the identification of new exploration targets in the surrounding area.
White Mountain
In the White Mountain district drilling is underway targeting the open down-dip and along strike extensions of the known ore body, and testing exploration targets in the Xiaoshiren exploration licenses. The acquisition of the Xiaoshiren Central exploration license located 20 kilometers south west of White Mountain was competed during the quarter. Soil sampling and trenching in the Xiaoshiren Central exploration areas containing high grade boulders is underway and diamond drilling has commenced. At Dongdapo mapping and soil sampling programs were completed with drilling scheduled for 2011.
Eastern Dragon
At Eastern Dragon we conducted ground magnetic surveys, float and outcrop sampling and prospecting within the EL 53 license area.
Tanjianshan
At 323 Zone nineteen drill holes totalling 4,157 meters were drilled testing the northern and southern limits to mineralization. Grade and continuity of gold mineralization drop to both the north and south of the previously defined high-grade zone, and the depth to mineralization continues to increase southward. The geological model has been updated to include the new drilling and a preliminary resource estimate is presently being prepared. At ZXS prospects area located between 323 Zone and the Jinloggou deposit we conducted shallow RC drilling, mapping and sampling.
Brazil
Tocantinzinho
Exploration activities resumed in the third quarter at TZ. Approximately 38.5 line kilometres of induced polarization surveying was completed over areas peripheral to the known deposit and several zones of anomalous chargeability/resistivity have been identified for drill-testing. The geological model for the TZ deposit was updated and wireframes were produced for key geological surfaces in preparation for an updated resource model and several areas requiring infill drill holes were identified.
Reconnaissance
Field work was completed at the optioned Triguiero project in NE Brazil. Results did not produce sufficient encouragement to continue the option. At the Agua Branca project three drill holes were completed testing previously defined targets. Although the litho logic and alteration characteristics of units intersected in these drill holes are similar to those associated with the TZ deposit, gold grades are sub economic.
United States
Nevada
Fieldwork at the Nevada projects focused on the Richmond Mountain option property where targets for drilling during fourth quarter have been identified. Due to continued permitting delays, the option on the Green Monster project was dropped and the drilling program planned for the Buffalo Canyon project was deferred until 2011.
Eldorado is a gold producing, exploration and development company actively growing businesses in Brazil, China, Greece, and Turkey and surrounding regions. We are one of the lowest cost pure gold producers. With our international expertise in mining, finance and project development, together with highly skilled and dedicated staff, we believe that Eldorado is well positioned to grow in value as we create and pursue new opportunities.
ON BEHALF OF
ELDORADO GOLD CORPORATION
“Paul N. Wright”
Paul N. Wright
President and Chief Executive Officer
Eldorado will host a conference call Friday October 29, 20010 to discuss the 2010 Third Quarter Financial and Operating Results at 1:00 p.m. ET (10:00 a.m. PT). You may participate in the conference call by dialling 416-695-6622 in Toronto or 1-800-355-4959 toll free in North America and asking for the Eldorado Conference Call with Chairperson: Paul Wright, President and CEO of Eldorado Gold. The call will be available on Eldorado’s websitewww.eldoradogold.com. A replay of the call will be available until November 5, 2010 by dialling 416-695-5800 in Toronto or 1-800-408-3053 toll free in North America and entering the Pass code 2583817.
Cautionary Note Concerning Forward-Looking Statements
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 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 stat ements 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 31, 2010.
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.
Cautionary Note Regarding Mineral Reserves and Mineral Resources
The terms “Mineral Reserve”, “Proven Mineral Reserve” and “Probable Mineral Reserve” used in this release are Canadian mining terms as defined in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council on August 20, 2000 as may be amended from time to time by the CIM. These definitions differ from the definitions in the United States Securities & Exchange Commission (“SEC”) Guide 7. In the United States, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or produced at the time the mineral reserve determination is made.
The terms “Mineral Resource”, “Measured Mineral Resource”, “Indicated Mineral Resource”, “Inferred Mineral Resource” used in this release are Canadian mining terms as defined in accordance with National Instruction 43-101 – Standards of Disclosure for Mineral Projects under the guidelines set out in the CIM Standards. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
For a detailed discussion of resource and reserve estimates and related matters see the Company’s reports, including the Annual Information Form and Form 40-F dated March 31, 2010 and technical reports filed under the Company’s name at www.sedar.com and www.sec.gov respectively.
Cautionary Note to US Investors Concerning Estimates of Measured, Indicated and Inferred Resources
Note to U.S. Investors. While the terms “mineral resource”, “measured mineral resource,” “indicated mineral resource”, and “inferred mineral resource” are recognized and required by Canadian regulations, they are not defined terms under standards in the United States and normally are not permitted to be used in reports and registration statements filed with the SEC. As such, information contained in this report concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by U.S companies in SEC filings. With respect to “indicated mineral resource” and “inferred mineral resource” there is a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It can not be assumed that all or any part of an “indicated mineral resource 48; or “inferred mineral resource” will ever be upgraded to a higher category. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.
Eldorado Gold Corporation’s common shares trade on the Toronto Stock Exchange (TSX: ELD) and the NYSE (NYSE: EGO). Eldorado’s CDI trade on the Australian Securities Exchange (ASX: EAU).
Contact:
Nancy Woo, VP Investor Relations
Eldorado Gold Corporation
Phone: 604.601-6650 or 1.888.353.8166
1188, 550 Burrard Street
Fax: 604.687.4026
Vancouver, BC V6C 2B5
Email:nancyw@eldoradogold.com
Website www.eldoradogold.com
Request for information packages:laurelw@eldoradogold.com
PRODUCTION HIGHLIGHTS
| First Quarter 2010 | Second Quarter 2010 | Third Quarter 2010 | Third Quarter 2009 | First Nine Months 2010 | First Nine Months 2009 |
Gold Production |
|
|
|
|
|
|
Ounces Sold | 163,446 | 172,826 | 154,655 | 85,246 | 490,927 | 229,158 |
Ounces Produced | 164,928 | 167,940 | 151,297 | 88,918 | 484,165 | 234,916 |
Cash Operating Cost ($/oz)1,3,4 | 370 | 357 | 386 | 296 | 371 | 297 |
Total Cash Cost ($/oz)2,3,4 | 397 | 410 | 431 | 325 | 412 | 321 |
Realized Price ($/oz - sold) | 1,110 | 1,195 | 1,231 | 957 | 1,178 | 934 |
Kişladağ Mine, Turkey |
|
|
|
|
|
|
Ounces Sold | 83,974 | 69,197 | 66,113 | 55,902 | 219,284 | 166,598 |
Ounces Produced | 82,240 | 70,451 | 62,086 | 57,902 | 214,777 | 167,079 |
Tonnes to Pad | 2,898,199 | 2,686,284 | 2,767,179 | 2,523,546 | 8,351,662 | 7,036,871 |
Grade (grams / tonne) | 1.12 | 1.12 | 0.98 | 1.22 | 1.08 | 1.24 |
Cash Operating Cost ($/oz)3,4 | 304 | 304 | 337 | 275 | 314 | 273 |
Total Cash Cost ($/oz)2,3,4 | 307 | 345 | 359 | 277 | 335 | 275 |
Tanjianshan Mine, China |
|
|
|
|
|
|
Ounces Sold | 18,947 | 38,261 | 28,847 | 29,344 | 86,055 | 62,560 |
Ounces Produced | 25,423 | 28,884 | 28,847 | 31,016 | 83,154 | 67,837 |
Tonnes Milled | 249,738 | 271,749 | 283,598 | 257,730 | 805,085 | 717,670 |
Grade (grams / tonne) | 4.01 | 4.38 | 3.84 | 5.73 | 4.07 | 5.14 |
Cash Operating Cost ($/oz)3,4 | 420 | 387 | 391 | 336 | 396 | 361 |
Total Cash Cost ($/oz)2,3,4 | 517 | 483 | 493 | 417 | 494 | 444 |
Jinfeng Mine, China |
|
|
|
|
|
|
Ounces Sold | 49,674 | 48,623 | 45,447 | - | 143,744 | - |
Ounces Produced | 45,615 | 52,659 | 46,116 | - | 144,390 | - |
Tonnes Milled | 389,851 | 392,211 | 387,427 | - | 1,169,489 | - |
Grade (grams / tonne) | 4.23 | 4.51 | 4.42 | - | 4.39 | - |
Cash Operating Cost ($/oz) 3,4 | 422 | 381 | 425 | - | 409 | - |
Total Cash Cost ($/oz) 2,3,4 | 462 | 423 | 473 | - | 452 | - |
White Mountain Mine, China |
|
|
|
|
|
|
Ounces Sold | 10,851 | 16,745 | 14,248 | - | 41,844 | - |
Ounces Produced | 11,650 | 15,946 | 14,248 | - | 41,844 | - |
Tonnes Milled | 130,643 | 167,981 | 154,125 | - | 452,749 | - |
Grade (grams / tonne) | 4.09 | 3.78 | 4.01 | - | 3.95 | - |
Cash Operating Cost ($/oz) 3,4 | 550 | 442 | 477 | - | 482 | - |
Total Cash Cost ($/oz) 2,3,4 | 589 | 474 | 507 | - | 515 | - |
1Cost figures calculated in accordance with the Gold Institute Standard.
2Cash Operating Costs, plus royalties and the cost of off-site administration.
3Cash operating costs and total cash costs are non-GAAP measures. See the section"Non-GAAP Measures" of this Review.
4Cash operating costs and total cash costs have been recalculated for prior quarters based on ounces sold.
Eldorado Gold Corporation
Unaudited Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars)
|
| Sepember 30, |
| December 31, |
| 2010 | 2009 | ||
Assets |
| $ |
| $ |
|
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
| 339,403 |
| 265,369 |
Restricted cash (note 4) |
| 52,221 |
| 50,000 |
Marketable securities |
| 1,564 |
| 13,951 |
Accounts receivable and other |
| 35,490 |
| 26,434 |
Inventories |
| 130,257 |
| 129,197 |
Future income taxes |
| 2,703 |
| - |
|
| 561,638 |
| 484,951 |
Inventories |
| 40,280 |
| 31,534 |
Investment in significantly influenced company |
| 5,130 |
| - |
Restricted assets and other |
| 28,211 |
| 13,872 |
Mining interests |
| 2,794,125 |
| 2,580,816 |
Goodwill |
| 323,294 |
| 324,935 |
|
| 3,752,678 |
| 3,436,108 |
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable and accrued liabilities |
| 139,453 |
| 157,250 |
Debt - current (note 6) |
| 89,909 |
| 56,499 |
Future income taxes |
| 2,313 |
| 4,264 |
|
| 231,675 |
| 218,013 |
Debt - long-term (note 6) |
| 97,247 |
| 134,533 |
Asset retirement obligations |
| 28,273 |
| 26,566 |
Future income taxes |
| 442,131 |
| 390,242 |
|
| 799,326 |
| 769,354 |
|
|
|
|
|
Non-controlling interest |
| 36,808 |
| 26,144 |
|
|
|
|
|
Shareholders* equity |
|
|
|
|
|
|
|
|
|
Share capital (note 7(b)) |
| 2,810,109 |
| 2,671,634 |
Contributed surplus |
| 21,317 |
| 17,865 |
Accumulated other comprehensive income (note 7(c)) |
| 465 |
| 2,227 |
Retained earnings (deficit) |
| 84,653 |
| (51,116) |
|
| 2,916,544 |
| 2,640,610 |
|
| 3,752,678 |
| 3,436,108 |
|
|
|
|
|
Approved on behalf of the Board of Directors
(Signed) Robert R. Gilmore Director (Signed) Paul N. Wright Director
See accompanying notes to the consolidated financial statements.
Eldorado Gold Corporation
Unaudited Consolidated Statements of Operations
For the periods ended September 30,
(Expressed in thousands of U.S. dollars except per share amounts)
|
| Three months ended |
| Nine months ended | ||||
|
| 2010 |
| 2009 |
| 2010 |
| 2009 |
$ | $ | $ | $ | |||||
Revenue |
|
|
|
|
|
|
|
|
Gold sales |
| 190,305 |
| 81,608 |
| 578,227 |
| 213,961 |
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
| &nbs p; |
|
|
Operating costs |
| 69,095 |
| 28,109 |
| 208,271 |
| 75,053 |
Depletion, depreciation and amortization |
| 27,232 |
| 9,017 |
| 79,978 |
| 20,015 |
General and administrative |
| 10,771 |
| 7,442 |
| 39,803 |
| 24,101 |
Exploration |
| 5,021 |
| 3,182 |
| 11,573 |
| 8,618 |
Mine standby costs |
| 22 |
| 881 |
| 1,335 |
| 1,817 |
Asset retirement obligation costs |
| 511 |
| 65 |
| 1,535 |
| 196 |
Foreign exchange loss (gain) |
| 13,360 |
| (442) |
| 8,327 |
| (1,569) |
|
| 126,012 |
| 48,254 |
| 350,822 |
| 128,231 |
|
|
|
|
|
|
|
|
|
(Gain) loss on disposal of assets |
| (250) |
| 119 |
| (1,735) |
| (1,344) |
Gain on marketable securities |
| (4,489) |
| (1,168) |
| (5,347) |
| (1,287) |
Interest expense and financing costs |
| 1,992 |
| 77 |
| 6,261 |
| 235 |
Interest and other income |
| (8,970) |
| (996) |
| (10,654) |
| (1,583) |
|
| 114,295 |
| 46,286 |
| 339,347 |
| 124,252 |
Income before income taxes and non-controlling interest |
| 76,010 |
| 35,322 |
| 238,880 |
| 89,709 |
|
|
|
|
|
|
|
|
|
Income tax (expense) recovery |
|
|
|
|
| &nbs p; |
|
|
Current |
| (21,652) |
| (13,812) |
| (69,591) |
| (27,465) |
Future |
| (459) |
| 8,873 |
| 4,788 |
| 8,115 |
|
| (22,111) |
| (4,939) |
| (64,803) |
| (19,350) |
|
|
|
|
|
|
|
|
|
Non-controlling interest |
| (5,126) |
| (229) |
| (11,951) |
| (1,244) |
|
|
|
|
|
|
|
|
|
Net income for the period |
| 48,773 |
| 30,154 |
| 162,126 |
| 69,115 |
|
|
|
|
|
|
|
|
|
Retained earning (deficit), beginning of period |
| 1,729 |
| (140,459) |
| (51,116) |
| (153,520) |
|
|
|
|
|
|
|
|
|
Retained earning (deficit), end of period |
| 50,502 |
| (110,305) |
| 111,010 |
| (84,405) |
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding |
|
|
|
|
| &nbs p; |
|
|
Basic |
| 546,039 |
| 391,583 |
| 541,164 |
| 377,601 |
Diluted | 547,731 |
| 392,328 |
| 543,041 |
| 378,821 | |
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
Basic income per share - US$ |
| 0.09 |
| 0.08 |
| 0.30 |
| 0.18 |
Diluted income per share - US$ |
| 0.09 |
| 0.08 |
| 0.30 |
| 0.18 |
|
|
|
|
|
|
|
|
|
See accompanying notes to the consolidated financial statements.
Eldorado Gold Corporation
Unaudited Consolidated Statements of Cash Flows
For the periods ended September 30,
(Expressed in thousands of U.S. dollars, unless otherwise stated)
|
| Three months ended |
| Nine months ended | ||||
|
| 2010 |
| 2009 |
| 2010 |
| 2009 |
$ | $ | $ | $ | |||||
Cash flows generated from (used in): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
|
|
|
Net income for the period |
| 48,773 |
| 30,154 |
| 162,126 |
| 69,115 |
Items not affecting cash |
|
|
|
|
|
|
|
|
Asset retirement obligations costs |
| 511 |
| 65 |
| 1,535 |
| 196 |
Depletion, depreciation and amortization |
| 27,232 |
| 9,017 |
| 79,978 |
| 20,015 |
Unrealized foreign exchange loss |
| 14,702 |
| 2,050 |
| 9,661 |
| 1,624 |
Future income taxes expense (recovery) |
| 459 |
| (8,873) |
| (4,788) |
| (8,115) |
(Gain) loss on disposal of assets |
| (250) |
| 119 |
| (1,735) |
| (1,344) |
(Gain) loss on marketable securities |
| (4,489) |
| (1,168) |
| (5,347) |
| (1,287) |
Stock-based compensation (note 8(b)) |
| 3,282 |
| 1,867 |
| 13,874 |
| 7,668 |
Pension expense (note 5) |
| 622 |
| 442 |
| 1,867 |
| 1,245 |
Non-controlling interest |
| 5,126 |
| 229 |
| 11,951 |
| 1,244 |
|
| 95,968 |
| 33,902 |
| 269,122 |
| 90,361 |
Bonus cash award units payments (note 8(c)) |
| - |
| - |
| - |
| (2,543) |
Changes in non-cash working capital (note 9) |
| (14,433) |
| (6,317) |
| (46,700) |
| 2,341 |
|
| 81,535 |
| 27,585 |
| 222,422 |
| 90,159 |
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
Acquisition of Brazauro, net (note 3(a)) |
| (5,565) |
| - |
| (5,565) |
| - |
Mining interests |
|
|
|
|
|
|
|
|
Capital expenditures |
| (54,844) |
| (24,151) |
| (152,476) |
| (63,003) |
Proceeds on sales and disposals |
| 2,843 |
| - |
| 23,191 |
| 35 |
Marketable securities disposals |
|
|
|
|
|
|
|
|
Purchases |
| (5,698) |
| (646) |
| (5,698) |
| (646) |
Proceeds on sales and disposals |
| 13,144 |
| 5,766 |
| 13,836 |
| 42,154 |
Equity investment purchase |
| - |
| - |
| (5,375) |
| - |
Pension plan contributions |
| - |
| - |
| - |
| (1,856) |
Restricted cash |
| - |
| - |
| (2,221) |
| - |
Restricted assets and other |
| (9,880) |
| 4,893 |
| (12,363) |
| 1,888 |
|
| (60,000) |
| (14,138) |
| (146,671) |
| (21,428) |
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
Capital stock |
|
|
|
|
|
|
|
|
Issuance of common shares for cash (note 7(b)) |
| 5,087 |
| 5,366 |
| 32,370 |
| 18,969 |
Dividend paid to non-controlling interest |
| - |
| - |
| (1,286) |
| - |
Dividend paid to shareholders |
| - |
| - |
| (26,357) |
| - |
Long-term and current debt |
|
|
|
|
|
|
|
|
Proceeds |
| 9,501 |
| - |
| 59,044 |
| 4,982 |
Repayments |
| (3,703) |
| (4,982) |
| (65,488) |
| (4,982) |
|
| 10,885 |
| 384 |
| (1,717) |
| 18,969 |
Net increase in cash and cash equivalents |
| 32,420 |
| 13,831 |
| 74,034 |
| 87,700 |
Cash and cash equivalents - beginning of period |
| 306,983 |
| 135,720 |
| 265,369 |
| 61,851 |
Cash and cash equivalents - end of period |
| 339,403 |
| 149,551 |
| 339,403 |
| 149,551 |
|
|
|
|
|
|
|
|
|
Supplementary cash flow information (note 9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
��
See accompanying notes to the consolidated financial statements.
Eldorado Gold Corporation
Unaudited Consolidated Statements of Shareholders’ Equity
For the periods ended September 30,
(Expressed in thousands of U.S. dollars, unless otherwise stated)
|
| Three months ended |
| Nine months ended | ||||
|
| 2010 |
| 2009 |
| 2010 |
| 2009 |
$ | $ | $ | $ | |||||
|
|
|
|
|
|
|
|
|
Share capital |
|
|
|
|
|
|
|
|
Balance beginning of period |
| 2,708,322 |
| 951,255 |
| 2,671,634 |
| 931,933 |
Shares issued upon exercise of share options, |
|
|
|
|
|
|
|
|
for cash |
| 5,087 |
| 5,366 |
| 32,370 |
| 18,969 |
Estimated fair value of share options exercised |
| 1,582 |
| 2,037 |
| 10,987 |
| 7,756 |
Share issued in consideration for interests |
|
|
|
|
|
|
|
|
acquired |
| 95,118 |
| 263,293 |
| 95,118 |
| 263,293 |
Balance at the end of the period |
| 2,810,109 |
| 1,221,951 |
| 2,810,109 |
| 1,221,951 |
|
|
|
|
|
|
|
|
|
Contributed surplus |
|
|
|
|
|
|
|
|
Balance beginning of period |
| 19,052 |
| 18,901 |
| 17,865 |
| 19,378 |
Non-cash stock-based compensation |
| 3,282 |
| 1,867 |
| 13,874 |
| 7,109 |
Non-cash stock-based compensation on |
|
|
|
|
|
|
|
|
Brazauro warrants & options converted |
| 565 |
| - |
| 565 |
| - |
Options exercised, credited to share capital |
| (1,582) |
| (2,037) |
| (10,987) |
| (7,756) |
Balance at the end of the period |
| 21,317 | - | 18,731 |
| 21,317 | - | 18,731 |
|
|
|
|
|
|
|
|
|
Retained earnings (deficit) |
|
|
|
|
|
|
|
|
Balance beginning of period |
| 35,880 |
| (114,559) |
| (51,116) |
| (153,520) |
Dividends paid |
| - |
| - |
| (26,357) |
| - |
Net income for the period |
| 48,773 |
| 30,154 |
| 162,126 |
| 69,115 |
Balance at the end of the period |
| 84,653 |
| (84,405) |
| 84,653 |
| (84,405) |
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive income (loss) |
|
|
|
|
|
|
|
|
Balance beginning of period |
| 12,391 |
| 519 |
| 2,227 |
| (5,971) |
Other comprehensive (loss) income |
| (11,926) |
| 73,582 |
| (1,762) |
| 80,072 |
Balance at the end of the period |
| 465 |
| 74,101 |
| 465 |
| 74,101 |
|
|
|
|
|
|
|
|
|
Total shareholders' equity |
| 2,916,544 |
| 1,230,378 |
| 2,916,544 |
| 1,230,378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the consolidated financial statements.
Eldorado Gold Corporation
Unaudited Consolidated Statements of Comprehensive Income
For the periods ended September 30,
(Expressed in thousands of U.S. dollars, unless otherwise stated)
| Three months ended |
| Nine months ended | ||||
| 2010 |
| 2009 |
| 2010 |
| 2009 |
| $ |
| $ |
| $ |
| $ |
|
|
|
|
|
|
|
|
Net earnings for the period ended September 30, | 48,773 | 30,154 | 162,126 | 69,115 | |||
| |||||||
Other comprehensive income | |||||||
Unrealized gains on available-for-sale investments | 1,134 | 83,049 | 12,788 | 88,608 | |||
Future income taxes on changes in available-for-sale investments | 1,475 | (9,984) | (15) | (10,253) | |||
Reversal of unrealized gains on available-for-sale investment on acquisition of subsidiary (note 3(a)) | (11,424) | - | (11,424) | - | |||
Realized (gains) losses on available-for-sale investments transferred to net income | (3,111) | 517 | (3,111) | 1,717 | |||
Other comprehensive (loss) income | (11,926) | 73,582 | (1,762) | 80,072 | |||
| |||||||
Comprehensive income for the period ended September 30, | 36,847 | 103,736 | 160,364 | 149,187 | |||
|
See accompanying notes to the consolidated financial statements.