STATEMENT UNDER THE ACT RESPECTING TRANSPARENCY MEASURES
IN THE MINING, OIL AND GAS INDUSTRIES (s.1)
Fiscal year covered by the statement: from January 1, 2017 to December 31, 2017
Name of the entity filing the statement: Eldorado Gold Corporation
Name(s) of the subsidiary or subsidiaries for which the entity files the statement, where applicable: ___________________________________________
CERTIFICATE
I certify that I have examined the information contained in the statement of Eldorado Gold Corporation for the fiscal year that began on January 1, 2017 and ended on December 31, 2017. To my knowledge and having exercised due diligence, the information contained in the statement is, in all material respects for the purposes of the Act, true, accurate and complete.
Full name of the officer or director: Philip Yee
Title of position: EVP and Chief Financial Officer
Date: March 25, 2019
“Philip Yee”
[Signature]
Extractive Sector Transparency Measures Act - Annual Report | |||||||||||
Reporting Year | From: | 1/1/2017 | To: | 12/31/2017 | |||||||
Reporting Entity Name | Eldorado Gold Corporation | Currency of the Report USD | |||||||||
Reporting Entity ESTMA Identification Number | E919377 | ||||||||||
Subsidiary Reporting Entities (if necessary) | |||||||||||
Payments by Payee | |||||||||||
Country | Payee Name | Departments, Agency, etc… within Payee that Received Payments | Taxes | Royalties | Fees | Production Entitlements | Bonuses | Dividends | Infrastructure Improvement Payments | Total Amount paid to Payee | Notes |
Romania | Certej Municipal Government | 130,000 | 130,000 | Payments made to the Certej Local Council. Payments made in RON, converted to USD at the exchange rate at the date of the individual payment. The average exchange rate for the period was 4.056. | |||||||
Romania | Baita Municipal Government | 100,000 | 100,000 | Payments made to the Baita Local Council. Payments made in RON, converted to USD at the exchange rate at the date of the individual payment. The average exchange rate for the period was 4.056. | |||||||
Greece | Federal Government of Greece | 180,000 | 150,000 | 330,000 | Payments made to the Greek State. Payments made in EUR, converted to USD at the exchange rate at the date of the individual payment. The average exchange rate for the period was 0.887. The breakdown of the amounts paid to the payee is as follows: 1) Taxes: 180,000 paid in cash and $690,000 paid through offset of VAT refundable. 2) Royalties: $150,000 paid in cash and $670,000 paid through offset of VAT refundable and Greek State penalties refundable. | ||||||
Turkey | Federal Government of the Republic of Turkey | 10,010,000 | 7,400,000 | 20,100,000 | 37,510,000 | Payments made to the Esme Tax Office, Kavaklidere Tax Office, Regional Directorate of Forestry, General Directorate of Mining, and Baskent Tax Office. Taxes: 10,010,000 paid in cash, 35,140,000 paid through offset of VAT refundable. Taxes include corporate taxes paid and withholding tax on a dividend payment. Payments made in TRY, converted to USD at the exchange rate at the date of the individual payment. The average exchange rate for the period was 3.648. |
Extractive Sector Transparency Measures Act - Annual Report | |||||||||||
Reporting Year | From: | 1/1/2017 | To: | 12/31/2017 | |||||||
Reporting Entity Name | Eldorado Gold Corporation | Currency of the Report USD | |||||||||
Reporting Entity ESTMA Identification Number | E919377 | ||||||||||
Subsidiary Reporting Entities (if necessary) | |||||||||||
Payments by Payee | |||||||||||
Country | Payee Name | Departments, Agency, etc… within Payee that Received Payments | Taxes | Royalties | Fees | Production Entitlements | Bonuses | Dividends | Infrastructure Improvement Payments | Total Amount paid to Payee | Notes |
Turkey | Ulubey Municipal Government | 130,000 | 130,000 | Payments made in TRY, converted to USD at the exchange rate at the date of the individual payment. The average exchange rate for the period was 3.648. | |||||||
Turkey | Menderes Municipal Government | 180,000 | 170,000 | 350,000 | Payments made in TRY, converted to USD at the exchange rate at the date of the individual payment. The average exchange rate for the period was 3.648. | ||||||
Turkey | Usak Municipal Government | 780,000 | 780,000 | Payments made to the Usak Tax Office. Payments made in TRY, converted to USD at the exchange rate at the date of the individual payment. The average exchange rate for the period was 3.648. | |||||||
Brazil | Federal Government of the Federative Republic of Brazil | 220,000 | 220,000 | Payments made to the National Department of Mineral Production. Payments made in BRL, converted to USD at the exchange rate at the date of the individual payment. The average exchange rate for the period was 3.194. | |||||||
Canada | Municipality of Val-d'Or | 130,000 | 130,000 | Payments made in CAD, converted to USD at the exchange rate at the date of the individual payment. The average exchange rate for the period was 1.298. | |||||||
Additional Notes: |
Extractive Sector Transparency Measures Act - Annual Report | ||||||||||
Reporting Year | From: | 1/1/2017 | To: | 12/31/2017 | ||||||
Reporting Entity Name | Eldorado Gold Corporation | Currency of the Report USD | ||||||||
Reporting Entity ESTMA Identification Number | E919377 | |||||||||
Subsidiary Reporting Entities (if necessary) | ||||||||||
Payments by Project | ||||||||||
Country | Project Name | Taxes | Royalties | Fees | Production Entitlements | Bonuses | Dividends | Infrastructure Improvement Payments | Total Amount paid by Project | Notes |
Romania | Certej | 230,000 | 230,000 | |||||||
Turkey | Kisladag | 950,000 | 4,610,000 | 17,240,000 | 22,800,000 | |||||
Turkey | Ankara Corporate Office | 9,800,000 | 260,000 | 10,060,000 | ||||||
Turkey | Efemcukuru | 350,000 | 2,960,000 | 2,600,000 | 5,910,000 | |||||
Greece | Kassandra | 180,000 | 150,000 | 330,000 | ||||||
Brazil | Rotulos de Linha | 220,000 | 220,000 | |||||||
Canada | Lamaque | 130,000 | 130,000 | |||||||
Additional Notes: |
Reporting Principles
1.
Basis of Accounting
The Schedule of Payments by Payee and the Schedule of Payments by Project (collectively, the “Schedules") prepared by Eldorado Gold Corporation (the “Company”) for the year ended December 31, 2017 has been prepared in accordance with the financial reporting provisions in Section 9 of the Extractive Sector Transparency Measures Act, Section 2.3 of the Extractive Sector Transparency Measures Act – Technical Reporting Specifications and Section 3 of the Extractor Sector Transparency Measures Act – Guidance Version 2 (collectively the “financial reporting framework”).
The Schedules are prepared to provide information to the Board of Directors of Eldorado Gold Corporation and the Minister of Natural Resources Canada to assist in meeting the requirements of the Extractive Sector Transparency Measures Act. As a result, the Schedules may not be suitable for another purpose.
2.
Basis of Presentation
The Schedules have been prepared using the cash basis of accounting, as required by the financial reporting framework, and therefore exclude any accruals related to payments due to governments.
The Schedules include all cash payments made, without inclusion of cash inflows from a government. Where the Company makes a payment to a government that is net of credits from that government, the net payment amount has been presented.
3.
Reporting Currency
All payments are reported in U.S. dollars which is the reporting currency of the Company. When the Company has made payments in currencies other than its reporting currency, it translates the payments using the exchange rate on the date of the individual payment.
4.
Rounding
All figures have been rounded to the nearest $10,000 U.S. dollars.
5.
Control
As required by the financial reporting framework, the Company has reported payments made by entities controlled by the Company. The Company has determined whether it controls an entity in accordance with International Financial Reporting Standards.
KPMG LLP Chartered Professional Accountants PO Box 10426 777 Dunsmuir Street Vancouver BC V7Y 1K3 Canada | Telephone (604) 691-3000 Fax (604) 691-3031 Internet www.kpmg.ca |
INDEPENDENT AUDITORS’ REPORT
To Eldorado Gold Corporation and the Minister of Natural Resources Canada
We have audited the accompanying Schedule of Payments by Payee totaling $39,680,000 and the Schedule of Payments by Project totaling $39,680,000 of Eldorado Gold Corporation (the “Company”) for the year ended December 31, 2017 and notes comprising a summary of significant accounting policies and other explanatory information (together “the Schedules”). The schedules have been prepared by management in accordance with the financial reporting provisions in Section 2, 3, 4 and 9 of the Extractive Sector Transparency Measures Act (“ESTMA"), Section 2.3 of the ESTMA - Technical Reporting Specifications and Section 3 of the Extractive Sector Transparency Measures Act – Guidance Version 2 (collectively, the “financial reporting guidance”).
Management’s Responsibility for the Schedules
Management is responsible for the preparation of the schedules in accordance with the financial reporting framework referred to above, and for such internal control as management determines is necessary to enable the preparation of the schedules that is free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these schedules based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the annual report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the schedules. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement in the schedules, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company’s preparation of the schedules in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the schedules.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the Schedule of Payments by Payee amounting to $39,680,000 and the Schedule of Payments by Project amounting to $39,680,000 of the Company for the year ended December 31, 2017 are prepared, in all material respects, in accordance with the financial reporting framework referred to above.
KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP. |
Basis of Accounting
Without modifying our opinion, we draw attention to Note 1 of the Schedules, which describes the basis of accounting. The Schedules are prepared to provide information to the Directors of Eldorado Gold Corporation and the Minister of Natural Resources of Canada to assist the Company in meeting the requirements of the ESTMA. As a result, the Schedules may not be suitable for another purpose.
Restriction on Use
Our report is intended solely for management and the Board of Directors of the Company and the Minister of Natural Resources Canada, and should not be used by parties other than management and the Board of Directors of the Company and Minister of Natural Resources Canada.
Chartered Professional Accountants
May 29, 2018
Vancouver, Canada