EX-99.1 2 unauditedcondensedconsolid.htm EX-99.1 Document

Exhibit 99.1


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Condensed Consolidated Interim Financial Statements
June 30, 2021 and 2020
(Unaudited)
(Expressed in thousands of U.S. dollars)







Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Financial Position    
As at June 30, 2021 and December 31, 2020
(Unaudited – in thousands of U.S. dollars)
As at
Note
June 30, 2021December 31, 2020
ASSETS
Current assets
Cash and cash equivalents
$409,733 $451,962 
Term deposits
1,001 59,034 
Accounts receivable and other
686,234 73,216 
Inventories
2(c),7
170,754 164,135 
Current portion of employee benefit plan assets
5,900 5,749 
673,622 754,096 
Restricted cash
2,662 2,097 
Other assets
17,853 39,562 
Property, plant and equipment
2(c)4,051,887 4,042,199 
Goodwill
92,591 92,591 
$4,838,615 $4,930,545 
LIABILITIES & EQUITY
Current liabilities
Accounts payable and accrued liabilities
$152,427 $179,372 
Current portion of lease liabilities10,274 11,297 
Current portion of debt
866,667 66,667 
Current portion of asset retirement obligations
4,701 4,701 
234,069 262,037 
Debt
8359,640 434,465 
Lease liabilities
13,263 14,659 
Employee benefit plan obligations
21,654 21,974 
Asset retirement obligations
109,581 106,677 
Deferred income tax liabilities
2(c)383,308 412,162 
1,121,515 1,251,974 
Equity
Share capital
123,224,830 3,144,644 
Treasury stock
(10,295)(11,452)
Contributed surplus
2,639,288 2,638,008 
Accumulated other comprehensive loss
(30,297)(30,297)
Deficit
2(c)(2,147,004)(2,103,205)
Total equity attributable to shareholders of the Company
3,676,522 3,637,698 
Attributable to non-controlling interests
40,578 40,873 
3,717,100 3,678,571 
$4,838,615 $4,930,545 
Subsequent events (Note 20)

Approved on behalf of the Board of Directors


    (signed)    John Webster Director         (signed)    George Burns     Director

Date of approval: July 29, 2021



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


Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Operations        
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars except share and per share amounts)            
Three months endedSix months ended
June 30,June 30,
Note2021202020212020
Revenue
  Metal sales9$233,224 $255,917 $457,842 $460,572 
Cost of sales
  Production costs112,800 109,477 221,360 210,839 
  Depreciation and amortization2(c)51,034 53,285 103,531 102,500 
163,834 162,762 324,891 313,339 
Earnings from mine operations69,390 93,155 132,951 147,233 
Exploration and evaluation expenses7,828 2,333 11,889 5,560 
Mine standby costs102,094 5,029 3,721 9,059 
General and administrative expenses9,779 6,157 19,924 14,444 
Employee benefit plan expense616 766 1,365 1,457 
Share-based payments expense131,922 2,863 3,703 4,658 
Impairment of property, plant and equipment
5
99,497 — 99,497 — 
Write-down (recovery) of assets320 (295)(430)(92)
Foreign exchange gain(330)(1,238)(6,273)(2,000)
(Loss) earnings from operations(52,336)77,540 (445)114,147 
Other income119,636 1,356 10,314 36 
Finance costs11(15,500)(6,480)(25,838)(22,687)
(Loss) earnings from operations before income tax(58,200)72,416 (15,969)91,496 
Income tax expense2(c)146 25,243 28,533 47,822 
Net (loss) earnings for the period$(58,346)$47,173 $(44,502)$43,674 
Attributable to:
Shareholders of the Company2(c)(55,737)49,089 (43,798)46,183 
Non-controlling interests(2,609)(1,916)(704)(2,509)
Net (loss) earnings for the period$(58,346)$47,173 $(44,502)$43,674 
Weighted average number of shares outstanding (thousands)
Basic181,599 169,867 178,086 167,524 
Diluted181,599 173,787 178,086 171,342 
Net (loss) earnings per share attributable to shareholders of the Company:
Basic (loss) earnings per share2(c)$(0.31)$0.29 $(0.25)$0.28 
Diluted (loss) earnings per share2(c)$(0.31)$0.28 $(0.25)$0.27 






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


Eldorado Gold Corporation                        
Condensed Consolidated Interim Statements of Comprehensive (Loss) Income
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars)                            
Three months endedSix months ended
June 30,June 30,
Note2021202020212020
Net (loss) earnings for the period2(c)$(58,346)$47,173 $(44,502)$43,674 
Other comprehensive income:
Items that will not be reclassified to earnings or loss:
Change in fair value of investments in equity securities, net of tax
95 1,766 (30)898 
Actuarial gains (losses) on employee benefit plans, net of tax
64 30 30 (198)
Total other comprehensive income for the period
159 1,796 — 700 
Total comprehensive (loss) income for the period$(58,187)$48,969 $(44,502)$44,374 
Attributable to:
Shareholders of the Company
2(c)(55,578)50,885 (43,798)46,883 
Non-controlling interests
(2,609)(1,916)(704)(2,509)
$(58,187)$48,969 $(44,502)$44,374 






























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


Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Cash Flows        
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars)
Three months endedSix months ended
June 30,June 30,
Note2021202020212020
Cash flows generated from (used in):
Operating activities
Net (loss) earnings for the period 2(c)$(58,346)$47,173 $(44,502)$43,674 
Items not affecting cash:
Depreciation and amortization2(c)51,482 53,840 104,558 103,619 
Finance costs15,500 6,498 25,838 22,722 
Interest income(1,173)(894)(1,475)(1,283)
Unrealized foreign exchange loss (gain)675 (512)(1,689)(3,050)
Income tax expense2(c)146 25,243 28,533 47,822 
Impairment of property, plant and equipment
5
99,497 — 99,497 — 
(Gain) loss on disposal of assets
11
(98)96 847 2,550 
Gain on disposal of mining licences
11
(7,046)— (7,046)— 
Write-down (recovery) of assets320 (295)(430)(92)
Share-based payments expense131,922 2,863 3,703 4,658 
Employee benefit plan expense616 766 1,365 1,457 
103,495 134,778 209,199 222,077 
Property reclamation payments(772)(474)(1,107)(1,000)
Employee benefit plan payments(289)(435)(521)(671)
Income taxes paid(27,517)(18,128)(52,013)(32,847)
Interest paid(13,278)(17,588)(15,483)(20,358)
Interest received1,173 894 1,475 1,283 
Changes in non-cash working capital14(25,761)583 (13,629)(15,587)
Net cash generated from operating activities37,051 99,630 127,921 152,897 
Investing activities
Purchase of property, plant and equipment(72,533)(37,126)(137,389)(77,608)
Acquisition of subsidiary, net of $4,311 cash received4(19,336)— (19,336)— 
Proceeds from the sale of property, plant and equipment519 683 1,669 705 
Proceeds from sale of mining licences
11
5,000 — 5,000 — 
Value added taxes related to mineral property expenditures, net(1,631)168 (4,199)(5,483)
Decrease (increase) in term deposits1,904 49,964 58,034 (1,561)
(Increase) decrease in restricted cash(31)(77)(104)1,097 
Net cash (used in) generated from investing activities(86,108)13,612 (96,325)(82,850)
Financing activities
Issuance of common shares, net of issuance costs2,300 60,243 14,134 87,079 
Acquisition of non-controlling interest— (7,500)— (7,500)
Contributions from non-controlling interests85 301 409 301 
Proceeds from (repayment of) revolving credit facility 8(50,000)— (50,000)150,000 
Repayment of term loan 8(22,233)(33,333)(33,333)(33,333)
Principal portion of lease liabilities (2,265)(2,499)(5,035)(5,033)
Purchase of treasury stock— (3,679)— (3,679)
Net cash (used in) generated from financing activities (72,113)13,533 (73,825)187,835 
Net (decrease) increase in cash and cash equivalents(121,170)126,775 (42,229)257,882 
Cash and cash equivalents - beginning of period530,903 308,780 451,962 177,742 
Cash in disposal group held for sale— (86)— (155)
Cash and cash equivalents - end of period $409,733 $435,469 $409,733 $435,469 




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


Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Changes in Equity    
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars)
Three months endedSix months ended
June 30,June 30,
2021202020212020
Share capital
Balance beginning of period$3,157,117 $3,075,100 $3,144,644 $3,054,563 
Shares issued upon exercise of share options, for cash681 1,392 1,398 1,816 
Shares issued upon exercise of performance share units1,172 — 1,172 — 
Transfer of contributed surplus on exercise of options263 560 548 730 
Shares issued on acquisition of subsidiary (Note 4)
65,647 — 65,647 — 
Shares issued to the public, net of share issuance costs(50)58,903 11,421 78,846 
Balance end of period$3,224,830 $3,135,955 $3,224,830 $3,135,955 
Treasury stock
Balance beginning of period$(10,879)$(8,314)$(11,452)$(8,662)
Purchase of treasury stock— (3,679)— (3,679)
Shares redeemed upon exercise of restricted share units584 406 1,157 754 
Balance end of period$(10,295)$(11,587)$(10,295)$(11,587)
Contributed surplus
Balance beginning of period$2,639,067 $2,628,820 $2,638,008 $2,627,441 
Share-based payments2,240 2,221 4,157 4,118 
Acquisition of non-controlling interest— 4,171 — 4,171 
Shares redeemed upon exercise of restricted share units(584)(406)(1,157)(754)
Shares redeemed upon exercise of performance share units(1,172)— (1,172)— 
Transfer to share capital on exercise of options(263)(560)(548)(730)
Balance end of period$2,639,288 $2,634,246 $2,639,288 $2,634,246 
Accumulated other comprehensive loss
Balance beginning of period$(30,456)$(30,062)$(30,297)$(28,966)
Other comprehensive income for the period159 1,796 — 700 
Balance end of period$(30,297)$(28,266)$(30,297)$(28,266)
Deficit
Balance beginning of period$(2,091,267)$(2,230,904)$(2,103,206)$(2,227,998)
(Loss) earnings attributable to shareholders of the Company (Note 2(c))
(55,737)49,089 (43,798)46,183 
Balance end of period$(2,147,004)$(2,181,815)$(2,147,004)$(2,181,815)
Total equity attributable to shareholders of the Company$3,676,522 $3,548,533 $3,676,522 $3,548,533 
Non-controlling interests
Balance beginning of period$43,102 $58,711 $40,873 $59,304 
Loss attributable to non-controlling interests(2,609)(1,916)(704)(2,509)
Acquisition of non-controlling interest— (11,672)— (11,672)
Contributions from non-controlling interests85 301 409 301 
Balance end of period$40,578 $45,424 $40,578 $45,424 
Total equity$3,717,100 $3,593,957 $3,717,100 $3,593,957 
The accompanying notes are an integral part of these condensed consolidated interim financial statements.


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
1. General Information
Eldorado Gold Corporation (individually or collectively with its subsidiaries, as applicable, “Eldorado” or the “Company”) is a gold and base metals mining, development, and exploration company. The Company has mining operations, ongoing development projects and exploration in Turkey, Canada, Greece, Romania, and Brazil.
Eldorado is a public company listed on the Toronto Stock Exchange (“TSX”) and the New York Stock Exchange (“NYSE”) and is incorporated under the Canada Business Corporations Act ("CBCA").
The Company's head office, principal address and records are located at 550 Burrard Street, Suite 1188, Vancouver, British Columbia, Canada, V6C 2B5.

2. Basis of preparation
(a)Statement of compliance
These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34 ‘Interim Financial Reporting’. They do not include all of the information and footnotes required by International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) for full annual financial statements and should be read in conjunction with the Company’s audited annual consolidated financial statements as at and for the year ended December 31, 2020.
Except as described in Note 3, the same accounting policies were used in the preparation of these unaudited condensed consolidated interim financial statements as for the most recent audited annual consolidated financial statements and reflect all the adjustments necessary for fair presentation in accordance with IFRS for the interim periods presented.
These unaudited condensed consolidated interim financial statements were authorized for issue by the Company’s Board of Directors on July 29, 2021.
(b)Critical accounting estimates and judgements
The preparation of these unaudited condensed consolidated interim financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
Significant judgements made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty are the same as those that applied to the audited annual consolidated financial statements as at and for the year ended December 31, 2020.
(c)Immaterial error correction
During the second quarter of 2021, the Company determined that the net book value of certain of its property, plant and equipment was understated as a result of errors in the amounts recorded for depreciation. Management evaluated the materiality of the errors, both quantitatively and qualitatively, and concluded that the changes were not material to the consolidated financials statements taken as a whole for any prior period. The Company has revised opening deficit and corrected the error by recasting the prior period information in these unaudited condensed consolidated interim financial statements.

(1)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
2. Basis of preparation (continued)
The following tables set forth the effect of this immaterial error correction on the Company's unaudited condensed consolidated statements of operations for the three months ended March 31, 2021 and for the three and six month periods ended June 30, 2020.
Three months ended March 31, 2021
Previously ReportedCorrectionAs recast
Depreciation$56,309 (3,812)$52,497 
Income tax expense28,249 138 28,387 
Net earnings for the period10,171 3,673 13,844 
Net earnings attributable to shareholders8,266 3,673 11,939 
Net earnings per share attributable to shareholders - basic and diluted$0.05 $0.02 $0.07 

Three months ended June 30, 2020Six months ended June 30, 2020
Previously ReportedCorrectionAs recastPreviously ReportedCorrectionAs recast
Depreciation$58,328 (5,043)$53,285 $110,691 (8,191)$102,500 
Income tax expense23,671 1,572 25,243 45,076 2,746 47,822 
Net earnings for the period43,702 3,471 47,173 38,229 5,445 43,674 
Net earnings attributable to shareholders45,618 3,471 49,089 40,738 5,445 46,183 
Comprehensive income attributable to shareholders47,414 3,471 50,885 41,438 5,445 46,883 
Net earnings per share attributable to shareholders - basic0.27 0.02 0.29 0.24 0.04 0.28 
Net earnings per share attributable to shareholders - diluted$0.26 0.02 $0.28 $0.24 0.03 $0.27 

The following table sets forth the effect of this immaterial error correction on the Company's unaudited condensed consolidated balance sheet as at December 31, 2020:
As at December 31, 2020
Previously ReportedCorrectionAs recast
Inventories$176,271 (12,136)$164,135 
Property, plant and equipment3,998,493 43,706 4,042,199 
Deferred income tax liabilities402,713 9,449 412,162 
Deficit$(2,125,326)22,121 $(2,103,205)

There was no impact on the consolidated cash flow statements in the corresponding periods as a result of the recast, other than the amounts reported for depreciation, income tax expense and net earnings for the period changed by the amounts shown in the tables above.
(2)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
3. Significant accounting policies
(a)Adoption of new accounting standards
The Company adopted the new IASB standard, Interest Rate Benchmark Reform - Phase 2 which amends IFRS 9 Financial Instruments, IAS 39 Financial Instruments: Recognition and Measurement, IFRS 7 Financial Instruments: Disclosure, IFRS 4 Insurance Contracts, and IFRS 16 Leases. The amendment became effective January 1, 2021 and there was no material effect from the adoption of this amendment on the Company’s condensed consolidated interim financial statements.
A number of new standards and amendments to standards are effective for annual periods beginning after January 1, 2021 and earlier application is permitted; however, the Company has not early adopted and continues to evaluate the impact of the forthcoming or amended standards in preparing these condensed consolidated interim financial statements.
Property, plant and equipment - proceeds before intended use
On May 14, 2020, the IASB published a narrow scope amendment to IAS 16 Property, Plant and Equipment - Proceeds before Intended Use. The amendment prohibits deducting from the cost of property, plant and equipment amounts received from selling items produced while preparing the asset for its intended use. Instead, amounts received will be recognized as sales proceeds and related cost in profit or loss. The effective date is for annual periods beginning on or after January 1, 2022. The amendment must be applied retrospectively, but only to items of property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after the beginning of the earliest period presented in the financial statements in which the amendments are first applied. The Company will adopt this narrow scope amendment on the date it becomes effective and does not expect a revision to comparative financial information in its consolidated interim financial statements as a result of adoption. 
Classification of liabilities as current or non-current
In January 2020, the IASB published narrow scope amendments to IAS 1 Presentation of financial statements. The narrow scope amendment clarifies that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the entity or events after the reporting date. The amendments are effective for annual periods beginning on or after January 1, 2023, and applied retrospectively. The Company will adopt the narrow scope amendments on the date they become effective and is currently evaluating the impact of the amendments on its consolidated interim financial statements.
(b) Change in estimate
The Company changed its estimate relating to total recoverable tonnes used to determine the depreciation, depletion and amortization of mineral properties and certain capitalized mine development costs, capitalized stripping costs, plant and mining assets whose estimated useful life is the same as the remaining life of the mine. Until December 31, 2020, the carrying amounts of these assets were depreciated, depleted or amortized over estimated recoverable tonnes of proven and probable mineral reserves. Effective January 1, 2021, total estimated recoverable tonnes for applicable mines also include a portion of inferred mineral resources considered to be highly probable to be economically extracted over the life of the mine. This change in estimate better reflects the pattern in which the asset's future economic benefits are expected to be consumed based on the current mine plans and was made as a result of increased experience in the conversion of inferred resources into proven and probable reserves for the applicable mines. Inferred resources are included in total estimated recoverable tonnes on a mine by mine basis if it is considered highly probable that those resources will be economically extracted.
This change in accounting estimate will reduce the Company's depreciation expense in the future. However, because the depreciation recorded in future periods depends on the volume of tonnes mined during those periods, the Company is not able to accurately estimate the impact of this change in estimate on future periods.

(3)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
4. Acquisition of QMX Gold Corporation
On April 7, 2021, the Company completed the acquisition of all of the outstanding common shares of QMX Gold Corporation ("QMX") not already owned by the Company by way of a plan of arrangement ("Arrangement"). Under the terms of the Arrangement, each shareholder other than Eldorado received, for each QMX share held, (i) CDN $0.075 in cash and (ii) 0.01523 of an Eldorado common share. QMX has interests in mineral properties in the Canadian province of Québec in proximity to the Company’s Lamaque operations and the Company owned 68,125,000 shares of QMX, or approximately 16% of QMX shares outstanding, prior to completion of the Arrangement.
On closing of the acquisition, QMX’s assets consisted primarily of mineral properties that do not yet contain proven and probable reserves. As QMX did not have processes capable of generating outputs and did not include an organized workforce, the Company determined that QMX did not meet the definition of a business in accordance with IFRS 3, Business Combinations, and as a result the acquisition has been accounted for as an asset acquisition.
The cost of the acquisition was allocated to the assets and liabilities acquired. The fair value of the mineral properties acquired was measured using a market comparison approach considering observable comparable transactions in a similar jurisdiction and stage of exploration. The deferred income tax assets primarily relate to loss carry-forwards for which fair value was determined based on the extent of anticipated future taxable income that can be reduced by the tax losses.
The purchase price is allocated to the identifiable assets acquired and liabilities assumed, based upon their estimated fair values at the date of acquisition. The Company's previously-held 16% interest in QMX was accounted for at its carrying amount of $2,323 and not remeasured to fair value, in accordance with the Company's accounting policy where previously-held interests are measured at cost.
The allocation of the consideration paid to the assets and liabilities of QMX is as follows:
Consideration paid:
   Share consideration $63,806 
   Cash consideration21,988 
   Cost of shares previously acquired2,323 
   Transaction costs1,659 
   QMX warrants outstanding1,130 
   Total purchase price$90,906 
Net cash paid of $19,336 included cash consideration of $21,988, transaction costs of $1,659 and is net of $4,311 cash acquired. QMX warrants include unexpired warrants for which, upon exercise, warrant holders will receive similar consideration as for QMX common shares. Shares of the Company totalling $1,841 were issued in June 2021 upon the exercise of the majority of these warrants.
Fair value of net assets acquired:
   Cash $4,311 
   Property, plant and equipment and other assets8,995 
   Mineral property75,636 
   Deferred income tax asset14,122 
   Asset retirement obligation(3,252)
   Accounts payable and accrued liabilities (8,906)
   Total purchase price$90,906 

(4)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
5. Impairment of Tocantinzinho Project
As a result of a plan to consider selling Tocantinzinho, a non-core gold asset, the Company recorded impairment of $99,497 in June 2021 to recognize the mineral properties and capitalized development at their estimated fair value. The non-recurring fair value measurement of $108,000 has been categorized as a Level 3 fair value based on the expected consideration of a sale, less estimated costs of disposal.

6. Accounts receivable and other
June 30, 2021December 31, 2020
Trade receivables$24,264 $35,649 
Value added tax and other taxes recoverable35,562 12,171 
Other receivables and advances9,379 6,037 
Prepaid expenses and deposits17,029 19,359 
$86,234 $73,216 

7. Inventories
June 30, 2021December 31, 2020
Ore stockpiles$5,603 $6,327 
In-process inventory and finished goods (Note 2(c))
66,755 68,984 
Materials and supplies98,396 88,824 
$170,754 $164,135 

As at June 30, 2021, the Company recognized $182 and $16 in production costs and depreciation, respectively, to reduce the cost of lead and zinc concentrate inventory at Stratoni to net realizable value (as at June 30, 2020 – $740 and $72).

8. Debt
June 30, 2021December 31, 2020
Senior notes due June 2024, net of unamortized discount and transaction costs of $7,402 (December 31, 2020 - $8,680) (Note 8 (a))
$227,925 $226,647 
Term loan, net of unamortized transaction costs of $1,118
(December 31, 2020 - $1,491) (Note 8 (b))
98,882 131,842 
Revolving credit facility (Note 8 (b))
100,000 150,000 
Redemption option derivative asset (Note 8 (a))
(500)(7,357)
$426,307 $501,132 
Less: Current portion66,667 66,667 
Long-term portion$359,640 $434,465 

(5)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
8. Debt (continued)
(a) Senior Secured Second Lien Notes due 2024
On June 5, 2019, the Company completed an offering of $300 million senior secured second lien notes (the "senior secured notes") at 98% of par value, with a coupon rate of 9.5% due June 1, 2024. The senior secured notes pay interest semi-annually on June 1 and December 1, beginning December 1, 2019.
The senior secured notes contain certain redemption features that constitute an embedded derivative asset, which is recognized separately at fair value and is classified as fair value through profit and loss. The decreases in fair value for the three and six months ended June 30, 2021, respectively, are $6,182 and $6,857, which are recognized in finance costs.
The senior secured notes contain covenants that restrict, among other things, the ability of the Company to incur certain capital expenditures, distributions in certain circumstances and sales of material assets, in each case, subject to certain conditions. The Company is in compliance with these covenants as at June 30, 2021.
The fair market value of the senior secured notes as at June 30, 2021 is $254,000 (December 31, 2020 – $260,500).
(b) Senior Secured Credit Facility
In May 2019, the Company executed a $450 million amended and restated senior secured credit facility (the "third amended and restated credit agreement" or "TARCA") which consists of the following:
i) A $200 million non-revolving term loan ("term loan") with six equal semi-annual payments commencing June 30, 2020.
ii) A $250 million revolving credit facility with a maturity date of June 5, 2023.
On March 30, 2020, the Company drew $150,000 under the revolving credit facility as a proactive measure in light of the uncertainty surrounding the novel coronavirus ("COVID-19") pandemic. The Company repaid $50,000 of the credit facility draw in June 2021 and as at June 30, 2021, $100,000 of the credit facility draw remains outstanding (December 31, 2020 - $150,000). The outstanding amount is classified as non-current according to its contractual maturity.
As at June 30, 2021, the Company has outstanding non-financial (Greece) and financial (Canada) letters of credit of EUR 58,216 and CDN $426, totaling $69,399 (December 31, 2020 - EUR 57,600 and CDN $400, totaling $70,800). The non-financial letters of credit were issued to secure certain obligations in connection with the Company's operations. In February 2021, the TARCA was amended such that the non-financial letters of credit no longer reduce credit availability under the revolving credit facility, thereby increasing the availability under the facility. An early repayment of $11,100 of principal as part of the scheduled semi-annual payment on the term loan was made in February 2021 in conjunction with this amendment, and in June 2021, the Company completed the remaining scheduled $22,233 semi-annual payment on the term loan. At June 30, 2021, the current availability under the credit facility is $150 million.
The TARCA contains covenants that restrict, among other things, the ability of the Company to incur additional unsecured indebtedness except in compliance with certain conditions, incur certain lease obligations, make distributions in certain circumstances, sell material assets or carry on a business other than one related to mining. Significant financial covenants include a minimum Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) to interest ratio and a maximum debt net of unrestricted cash ("net debt") to EBITDA ratio ("net leverage ratio"). The Company is in full compliance with its covenants at June 30, 2021. 
Both the term loan and revolving credit facility bear interest at LIBOR plus a margin of 2.25% – 3.25%, dependent on a net leverage ratio pricing grid. As at June 30, 2021, the Company’s current interest charges and fees are as follows: LIBOR plus margin of 2.25% on the term loan and any amounts drawn from the revolving credit facility, 0.90% plus 0.13% on Greek non-financial letters of credit, the margin (2.25%) on the financial letters of credit secured by the revolving credit facility and 0.5625% standby fees on the available and undrawn portion of the revolving credit facility.

(6)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
9. Revenue
For the three months ended June 30, 2021, revenue from contracts with customers by product and segment were as follows:
TurkeyCanadaGreeceTotal
Gold revenue - doré$79,944 $63,125 $— $143,069 
Gold revenue - concentrate41,218 — 21,366 62,584 
Silver revenue - doré800 411 — 1,211 
Silver revenue - concentrate1,300 — 4,357 5,657 
Lead concentrate— — 4,418 4,418 
Zinc concentrate— — 12,800 12,800 
Revenue from contracts with customers$123,262 $63,536 $42,941 $229,739 
Gain on revaluation of derivatives in trade receivables2,466 — 1,019 3,485 
$125,728 $63,536 $43,960 $233,224 

For the three months ended June 30, 2020, revenue from contracts with customers by product and segment were as follows:
TurkeyCanadaGreeceTotal
Gold revenue - doré$103,364 $55,595 $— $158,959 
Gold revenue - concentrate46,446 — 28,885 75,331 
Silver revenue - doré489 168 — 657 
Silver revenue - concentrate747 — 6,569 7,316 
Lead concentrate— — 3,007 3,007 
Zinc concentrate— — 6,175 6,175 
Revenue from contracts with customers$151,046 $55,763 $44,636 $251,445 
Gain on revaluation of derivatives in trade receivables324 — 4,148 4,472 
$151,370 $55,763 $48,784 $255,917 
(7)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
9. Revenue (continued)
For the six months ended June 30, 2021, revenue from contracts with customers by product and segment were as follows:
TurkeyCanadaGreeceTotal
Gold revenue - doré$164,896 $114,707 $— $279,603 
Gold revenue - concentrate81,849 — 42,821 124,670 
Silver revenue - doré1,558 787 — 2,345 
Silver revenue - concentrate2,433 — 14,237 16,670 
Lead concentrate— — 13,670 13,670 
Zinc concentrate— — 21,175 21,175 
Revenue from contracts with customers$250,736 $115,494 $91,903 $458,133 
Gain (loss) on revaluation of derivatives in trade receivables550 — (841)(291)
$251,286 $115,494 $91,062 $457,842 

For the six months ended June 30, 2020, revenue from contracts with customers by product and segment were as follows:
TurkeyCanadaGreeceTotal
Gold revenue - doré$185,091 $98,177 $— $283,268 
Gold revenue - concentrate86,432 — 50,837 137,269 
Silver revenue - doré889 353 — 1,242 
Silver revenue - concentrate1,231 — 11,040 12,271 
Lead concentrate— — 8,474 8,474 
Zinc concentrate— — 17,011 17,011 
Revenue from contracts with customers$273,643 $98,530 $87,362 $459,535 
Gain (loss) on revaluation of derivatives in trade receivables(779)— 1,816 1,037 
$272,864 $98,530 $89,178 $460,572 

(8)

Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

10. Mine standby costs
Three months ended June 30,Six months ended June 30,
2021 2020 2021 2020 
Skouries$1,417 $2,171 $2,695 $4,224 
Lamaque— 2,031 — 3,086 
Other mine standby costs677 827 1,026 1,749 
$2,094 $5,029 $3,721 $9,059 

11. Other income and finance costs
Three months ended June 30,Six months ended June 30,
(a) Other income (loss)2021202020212020
Gain (loss) on disposal of assets$98 $(96)$(847)$(2,550)
Gain on disposal of mining licences7,046 — 7,046 — 
Interest and other income2,492 1,452 4,115 2,586 
$9,636 $1,356 $10,314 $36 

In May 2021, the Company recognized other income of $7,046 from the sale of mining licences in Turkey, which had a carrying value of nil. Consideration for the sale was $7,046 of which $5,000 was received in cash as at June 30, 2021. The remaining cash consideration is expected to be received in January 2022.
Three months ended June 30,Six months ended June 30,
(b) Finance costs2021202020212020
Interest on senior secured notes$6,195 $7,909 $12,390 15,811 
Interest on term loan927 1,632 1,887 3,930 
Other interest and financing costs1,835 2,113 3,993 3,201 
Loss (gain) on redemption option derivative (Note 8(a))
6,182 (5,665)6,857 (1,236)
Asset retirement obligation accretion361 491 711 981 
$15,500 $6,480 $25,838 $22,687 


(9)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
12. Share capital and (loss) earnings per share
(a) Share capital     
20212020
Voting common sharesNumber of SharesTotalNumber of SharesTotal
Balance at January 1,174,931,381 $3,144,644 164,963,324 $3,054,563 
Shares issued upon exercise of share options, for cash 266,520 1,398 427,232 1,816 
Shares issued on redemption of PSU's (Note 13)
507,998 1,172 — — 
Estimated fair value of share options exercised transferred from contributed surplus— 548 — 730 
Shares issued on acquisition of QMX
(Note 4)
5,788,187 65,647 — — 
Shares issued to the public— — 8,353,042 76,956 
Share issuance costs— — — (1,605)
Flow-through shares issued, net of costs and premium1,100,000 11,421 384,616 3,495 
Balance at June 30,182,594,086 $3,224,830 174,128,214 $3,135,955 

On March 30, 2021 the Company completed a private placement of 1,100,000 common shares at a price of CDN $16.00 per share for proceeds of CDN $17,600 ($13,930). The proceeds will be used to continue to fund the Lamaque decline project. The shares will qualify as flow-through shares for Canadian tax purposes and were issued at a premium of CDN $2.82 per share to the closing market price of the Company's common shares at the date of issue. The premium of $2,456 was recognized in accounts payable and accrued liabilities and will be recognized in other income when the related tax benefits are renounced.
(b) (Loss) earnings per share
The weighted average number of ordinary shares for the purposes of diluted (loss) earnings per share reconciles to the weighted average number of ordinary shares used in the calculation of basic (loss) earnings per share as follows:
Three months ended June 30,Six months ended June 30,
2021202020212020
Weighted average number of ordinary shares used in the calculation of basic (loss) earnings per share181,598,939 169,866,635 178,085,804 167,524,192 
Dilutive impact of share options— 1,113,860 — 1,068,456 
Dilutive impact of restricted share units and restricted share units with performance criteria— 1,755,293 — 1,637,679 
Dilutive impact of performance share units— 1,051,210 — 1,111,188 
Weighted average number of ordinary shares used in the calculation of diluted (loss) earnings per share181,598,939 173,786,998 178,085,804 171,341,515 

(10)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
12. Share capital and (loss) earnings per share (continued)
As at June 30, 2021, 2,498,594 options (June 30, 2020 - 3,008,224) were excluded from the dilutive weighted-average number of ordinary shares calculation because their effect would have been anti-dilutive. For the three months ended June 30, 2021, 1,160,500 share options, 234,984 RSU's and RSU's with performance criteria, and 751,552 PSU's were anti-dilutive. For the six months ended June 30, 2021, 1,255,926 share options, 335,587 RSU's and RSU's with performance criteria, and 822,403 PSU's were anti-dilutive.

13. Share-based payment arrangements
Share-based payments expense consists of:
Three months ended June 30,Six months ended June 30,
2021202020212020
Share options$642 $814 $1,395 $1,576 
Restricted shares with no performance criteria367 357 602 664 
Restricted shares with performance criteria1,025 778 1,670 1,237 
Performance shares206 272 489 540 
Deferred units(318)642 (453)641 
$1,922 $2,863 $3,703 $4,658 

(a) Share option plans
The Company’s Incentive Stock Option Plan (the “Plan”) consists of options which are subject to a 5-year maximum term and payable in shares of the Company when vested and exercised. Options vest at the discretion of the Board of Directors at the time an Option is granted. Options vest in three equal and separate tranches with the first vesting commencing one year after the date of grant and the second and third tranches vesting on the second and third anniversary of the grant date.
Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:
20212020
Weighted
average
exercise price
Cdn$		Number of
options		Weighted
average
exercise price
Cdn$		Number of
options
At January 1,$11.56 5,092,388 $14.08 5,714,491 
Options granted13.27 1,091,891 12.72 1,156,744 
Exercised6.49 (266,520)5.94 (427,232)
Expired16.14 (783,771)33.40 (813,933)
Forfeited12.08 (535,134)14.02 (206,597)
At June 30,$11.42 4,598,854 $11.53 5,423,473 

As at June 30, 2021, a total of 4,152,312 options (December 31, 2020 – 3,898,038) were available to grant under the Plan. As at June 30, 2021, 2,391,937 share purchase options (December 31, 2020 – 2,416,611) with a weighted average exercise price of CDN $11.80 (December 31, 2020 – CDN $14.45) had vested and were exercisable.
(11)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
13. Share-based payment arrangements (continued)
The weighted average market share price at the date of exercise for share options exercised for the six months ended June 30, 2021 was CDN $13.90 (June 30, 2020 – CDN $12.96).
During the first six months of 2021, 1,091,891 (June 30, 2020 – 1,156,744) share options were granted. The weighted average fair value per stock option granted was CDN $13.27 (June 30, 2020 – CDN $12.72). The assumptions used to estimate the fair value of options granted during the six months ended June 30, 2021 and 2020 are in the table below. Volatility was determined based on the historical volatility over the estimated lives of the share options.
2021 2020 
Risk-free interest rate (range)0.3% - 0.8%0.25% - 1.51%
Expected volatility (range) 64% - 68%59% - 70%
Expected life 3 years3 years
Expected dividends (CDN$)— — 

(b) Restricted share unit plan
The Company has a Restricted Share Unit Plan (“RSU” plan) whereby restricted share units ("RSUs") may be granted to senior management of the Company. Such RSUs may be redeemed by the holder in shares or cash, with cash redemptions subject to the approval of the Board. The current maximum number of common shares authorized for issue under the RSU plan is 5,000,000. As at June 30, 2021, 269,574 common shares purchased by the Company remain held in trust in connection with this plan and have been included in treasury stock within equity on the consolidated statement of financial position.  
Currently, the Company has two types of RSUs:
i.RSU with no performance criteria
These RSUs are exercisable into one common share once vested for no additional consideration. They vest as follows: one third on the first anniversary of the grant date, one third on the second anniversary of the grant date and one third on the third anniversary of the grant date. RSUs with no performance criteria terminate on the third anniversary of the grant date. All vested RSUs which have not been redeemed by the date of termination are automatically redeemed. Such RSU's may be redeemed by the holder in shares or cash, with cash redemptions subject to the approval of the Board.  
A total of 180,132 RSUs with no performance criteria with an average grant-date fair value of CDN $13.79 per unit were granted during the six months ended June 30, 2021 under this plan (June 30, 2020 - 149,552). The fair value of each RSU issued is determined as the closing share price at grant date.
A summary of the status of the RSUs with no performance criteria and changes is as follows:
2021 2020 
At January 1,478,067 536,330 
Granted180,132 149,552 
Redeemed(134,542)(189,671)
Forfeited(40,898)(16,852)
At June 30,482,759 479,359 

As at June 30, 2021, 109,649 restricted share units are fully vested and exercisable (June 30, 2020 – 70,939).

(12)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
13. Share-based payment arrangements (continued)
ii. RSU with performance criteria
RSUs with performance criteria vest on the third anniversary of the grant date, subject to achievement of pre-determined market-based performance criteria. When fully vested, the number of RSUs redeemed will range from 0% to 200% of the target award, subject to the performance of the share price over the three-year period.
A total of 360,273 RSUs with performance criteria were granted under this plan during the six months ended June 30, 2021 (June 30, 2020 - 299,112) with a fair value of CDN $22.46 per unit (June 30, 2020 - CDN $24.94). In addition, 80,235 RSUs with performance criteria were granted as a result of the performance criteria being met during the year, which were then redeemed for common shares issued from treasury stock. The fair value of each RSU with market-based performance criteria issued is determined based on fair value of the share units on the date of grant which is based on a valuation model which uses the forward price of the Company's shares and an index consisting of global gold-based securities.
A summary of the status of the RSUs with performance criteria and changes is as follows:
2021 2020 
At January 1,689,967 457,498 
Granted440,508 299,112 
Redeemed(160,470)— 
Forfeited(26,671)(66,643)
At June 30,943,334 689,967 

(c) Deferred unit plan
The Company has an independent directors deferred unit plan (“DU Plan”) under which deferred units ("DU’s") are granted by the Board from time to time to independent directors (“the Participants”). DUs may be redeemed only on retirement of the independent director from the Board (the “Termination Date”) by providing the redemption notice (“Redemption Notice”) to the Company specifying the redemption date which shall be no later than December 15 of the first calendar year commencing after the calendar year in which the Termination Date occurred (the “Redemption Date”). The participant receives a cash payment equal to the market value of such DUs as of the Redemption Date.  
As at June 30, 2021, 348,872 DUs were outstanding (December 31, 2020 – 289,360) with a fair value of $3,468, which is included in accounts payable and accrued liabilities (December 31, 2020 – $3,834). The fair value was determined based on the closing share price at June 30, 2021.
(d)    Performance share units plan
The Company has a Performance Share Unit plan (the “PSU” Plan) whereby PSUs may be granted to senior management of the Company at the discretion of the Board of Directors. Under the plan, PSUs cliff vest on the third anniversary of the grant date (the “Redemption Date”) and are subject to terms and conditions including the achievement of predetermined performance criteria (the “Performance Criteria”). When fully vested the number of PSUs redeemed will range from 0% to 200% of the target award, subject to the achievement of the Performance Criteria. Once vested, at the option of the Company, PSU’s are redeemable as a cash payment equal to the market value of the vested PSUs as of the Redemption Date, common shares of the Company equal to the number of vested PSUs, or a combination of cash and shares equal to the market value of the vested PSUs, for no additional consideration from the PSU holder and to be redeemed as soon as practicable after the Redemption Date.



(13)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
13. Share-based payment arrangements (continued)
There were 13,937 PSUs granted during the six months ended June 30, 2021 under the PSU Plan (June 30, 2020 – nil) with a fair value of CDN $24.40 per unit (June 30, 2020 - nil). In addition, 253,999 PSUs were granted as a result of the performance criteria being met during the year, which were then redeemed for common shares. The current maximum number of common shares authorized for issuance from treasury under the PSU Plan is 3,126,000. The fair value of each PSU issued is determined based on fair value of the share units on the date of grant which is based on the expected future forward price of the Company's shares and an index consisting of global gold securities.
Movements in the PSUs during the six months ended June 30, 2021 and June 30, 2020 are as follows:
2021 2020 
At January 1,525,605 610,885 
Granted267,936 — 
Redeemed(507,998)— 
Expired— (85,280)
At June 30,285,543 525,605 

14. Supplementary cash flow information
Three months ended June 30,Six months ended June 30,
2021202020212020
Changes in non-cash working capital:
Accounts receivable and other$(9,912)$(16,133)$6,366 $(19,458)
Inventories(8,656)4,706 (6,923)3,875 
Accounts payable and accrued liabilities(7,193)12,010 (13,072)(4)
$(25,761)$583 $(13,629)$(15,587)
15. Income tax rate changes
On May 18, 2021, the Greek government enacted new tax law provisions to reduce the corporate income tax rate from 24% to 22%. The Greek corporate tax rate reduction will be effective retroactively from January 1, 2021 and onwards. The opening deferred tax liability and current year's deferred tax expense were reduced by $11,434 due to the tax rate reduction.
On April 16, 2021, an increase in the corporate income tax rate in Turkey was enacted. The corporate income tax rate was 20% at the beginning of 2021, and upon enactment increased to 25% for 2021, 23% for 2022 and will return to 20% for 2023 onwards. The increase was effective on July 1, 2021 with retroactive application to January 1, 2021. The opening deferred tax liability and current year’s deferred tax expense were increased by $6,101 due to the tax rate increase.




(14)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
16. Commitments
Significant changes to the Company's commitments and contractual obligations as at June 30, 2021:
Within 1 Year2 Years3 Years4 Years5 YearsTotal
Debt$66,667 $133,333 $233,953 $— $— $433,953 
Purchase obligations and other commitments79,778 4,156 242 238 237 84,651 
$146,445 $137,489 $234,195 $238 $237 $518,604 

Debt obligations represent required repayments of principal for the senior secured notes and term loan and do not include interest on debt. Debt obligations also include the revolving credit facility, of which the current amount drawn at June 30, 2021 is $100,000 and is presented in the table above as repayable on June 5, 2023, based on the contractual maturity date of the revolving credit facility.
Purchase obligations and other commitments relate primarily to operating costs at all mines and capital projects at Kişladağ.

17. Fair value measurements
Fair values are determined directly by reference to published price quotations in an active market, when available, or by using a valuation technique that uses inputs observed from relevant markets.
The three levels of the fair value hierarchy are described below:
•Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
•Level 2 – Inputs that are observable, either directly or indirectly, but do not qualify as Level 1 inputs (i.e., quoted prices for similar assets or liabilities).
•Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
Assets measured at fair value as at June 30, 2021 include marketable securities of $164 (December 31, 2020 – $194), comprised of publicly-traded equity investments classified as fair value through other comprehensive income, settlement receivables of $23,682 (December 31, 2020 – $31,898) arising from provisional pricing in contracts for the sale of metals in concentrate classified as fair value through profit and loss and a derivative asset of $500 (December 31, 2020 – $7,357), related to the redemption options associated with the senior secured notes classified as fair value through profit and loss. Changes in the fair value of settlement receivables are recorded in revenue and changes in the fair value of the redemption option derivative asset are recorded in finance costs. Valuation of the contingent consideration on the May 2020 acquisition of interest in Hellas Gold SA is measured at fair value, with any changes in fair value recorded in profit or loss. No other liabilities are measured at fair value on a recurring basis as at June 30, 2021.







(15)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
17. Fair value measurements (continued)
The fair value of financial instruments traded in active markets is based on quoted market prices at the date of the statement of financial position. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by the group is the current bid price. The Company's marketable securities are included in Level 1. Instruments included in Level 2 comprise settlement receivables, the redemption option derivative asset and the fair market value of the Company's senior secured notes (Note 8). The fair value of settlement receivables is determined based on forward metal prices for the quotational period, the fair value of the Company's redemption option derivative asset is based on models using observable interest rate inputs and the fair value of the Company's senior secured notes is based on observable prices in inactive markets. The fair value of the term loan is $100,000 and the fair value of the revolving credit facility approximates the carrying value both based on current market rates of interest and the Company's credit risk premium, and represent Level 2 fair value measurements. The fair value measurement of contingent consideration related to the May 2020 acquisition of the minority interest in Hellas Gold SA is categorized as a Level 3 fair value. For all other financial instruments, carrying amounts approximate fair value.

18. Financial risk management
Eldorado’s activities expose it to a variety of financial risks. Significant changes to the Company’s financial risks and overall risk management program as at June 30, 2021 are outlined below.
(a)Interest rate risk
The Company's outstanding debt is in the form of senior secured notes with a fixed interest rate of 9.5% and a term loan with a variable rate based on LIBOR. In March 2020, the Company additionally drew $150,000 under the revolving credit facility as a proactive measure in light of the uncertainty surrounding the COVID-19 pandemic. Borrowings under the revolving credit facility are also at variable rates of interest based on LIBOR. Borrowings at variable rates of interest expose the Company to interest rate risk. At June 30, 2021, $100,000 is outstanding under the term loan and $100,000 is outstanding under the revolving credit facility. A 1% increase in the variable interest rate would result in a $1,357 decrease in net earnings on an annualized basis.
(b)Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in raising funds to meet commitments associated with financial instruments. In March 2020, the Company drew $150,000 under the revolving credit facility, of which $50,000 was repaid in June 2021. Management cannot accurately predict the impact COVID-19 will have on the Company’s operations, the fair value of the Company's assets, its ability to obtain financing, third parties’ ability to meet their obligations with the Company and the length of travel and quarantine restrictions imposed by governments of the countries in which the Company operates.
In February 2021, the TARCA was amended such that the non-financial letters of credit no longer reduce credit availability under the revolving credit facility, thereby increasing the availability under the facility. An early repayment of $11,100 of principal as part of the scheduled semi-annual payment on the term loan was made in February 2021 in conjunction with this amendment, and in June 2021, the Company completed the remaining scheduled $22,233 semi-annual payment on the term loan. At June 30, 2021, the current availability under the credit facility is $150 million.
Management continues to monitor the Company’s capabilities to meet ongoing debt and other commitments, including reviewing its operating costs and capital budget to reduce expenditures if required.

(16)

Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

19. Segment information
Identification of reportable segments
The Company has identified its operating segments based on the internal reports that are reviewed and used by the chief executive officer and the executive management (the chief operating decision makers or "CODM") in assessing performance and in determining the allocation of resources.
The CODM consider the business from both a geographic and product perspective and assess the performance of the operating segments based on measures of profit and loss as well as assets and liabilities. These measures include earnings (loss) from mine operations, expenditures on exploration, property, plant and equipment and non-current assets, as well as total debt. As at June 30, 2021, Eldorado had six reportable segments based on the geographical location of mining and exploration and development activities.
Geographical segments
Geographically, the operating segments are identified by country and by operating mine. The Turkey reporting segment includes the Kişladağ and the Efemçukuru mines and exploration activities in Turkey. The Canada reporting segment includes the Lamaque operations and exploration activities in Canada, including those related to QMX from the date of acquisition. The Greece reporting segment includes the Stratoni and Olympias mines, the Skouries, Perama Hill and Sapes projects and exploration activities in Greece. The Romania reporting segment includes the Certej project and exploration activities in Romania. The Brazil reporting segment includes the Tocantinzinho project and exploration activities. The Brazil segment also includes Vila Nova up until the sale of Vila Nova iron ore mine in September 2020. Other reporting segment includes operations of Eldorado’s corporate offices.
Financial information about each of these operating segments is reported to the CODM on a monthly basis. The mines in each of the different reporting segments share similar economic characteristics and have been aggregated accordingly.
As at and for the three months ended June 30, 2021TurkeyCanadaGreeceRomaniaBrazilOtherTotal
Earnings and loss information
Revenue$125,728 $63,536 $43,960 $— $— $— $233,224 
Production costs46,503 24,040 42,257 — — — 112,800 
Depreciation and amortization22,205 14,715 14,114 — — — 51,034 
Earnings (loss) from mine operations$57,020 $24,781 $(12,411)$— $— $— $69,390 
Other significant items of income and expense
Impairment (Note 5)
$— $— $— $— $99,497 $— $99,497 
Exploration and evaluation expenses5,100 1,177 161 927 (53)516 7,828 
Income tax expense (recovery)18,881 7,986 (8,301)(5,861)(12,559)— 146 
Capital expenditure information
Additions to property, plant and equipment during the period (*)$38,970 $21,810 $13,725 $— $930 $1,571 $77,006 
* Presented on an accrual basis; excludes asset retirement adjustments.

(17)

Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

19. Segment information (continued)
As at and for the three months ended June 30, 2020TurkeyCanadaGreeceRomaniaBrazilOtherTotal
Earnings and loss information
Revenue$151,370 $55,763 $48,784 $— $— $— $255,917 
Production costs49,537 16,203 43,737 — — — 109,477 
Depreciation and amortization (Note 2(c))
24,851 15,845 12,589 — — — 53,285 
Earnings (loss) from mine operations$76,982 $23,715 $(7,542)$— $— $— $93,155 
Other significant items of income and expense
Exploration and evaluation expenses$518 $601 $186 $720 $41 $267 $2,333 
Income tax expense (recovery) (Note 2(c))
21,102 5,784 (726)(1,761)844 — 25,243 
Capital expenditure information
Additions to property, plant and equipment during the period (*)$17,876 $10,342 $10,837 $3 $397 $21 $39,476 
* Presented on an accrual basis; excludes asset retirement adjustments.

As at and for the six months ended June 30, 2021TurkeyCanadaGreeceRomaniaBrazilOtherTotal
Earnings and loss information
Revenue$251,286 $115,494 $91,062 $— $— $— $457,842 
Production costs87,415 47,023 86,922 — — — 221,360 
Depreciation and amortization (Note 2(c))
44,618 31,279 27,634 — — — 103,531 
Earnings (loss) from mine operations$119,253 $37,192 $(23,494)$— $— $— $132,951 
Other significant items of income and expense
Impairment (Note 5)
$— $— $— $— $99,497 $— $99,497 
Exploration and evaluation expenses5,921 2,660 298 1,923 — 1,087 11,889 
Income tax expense (recovery) (Note 2(c))
42,744 12,698 (16,454)556 (11,011)— 28,533 
Capital expenditure information
Additions to property, plant and equipment during the period (*)
$69,991 $39,254 $24,336 $— $1,795 $1,904 $137,280 
Information about assets and liabilities
Property, plant and equipment (Note 2(c))
$808,330 $688,344 $2,023,717 $413,595 $106,728 $11,173 $4,051,887 
Goodwill— 92,591 — — — — 92,591 
$808,330 $780,935 $2,023,717 $413,595 $106,728 $11,173 $4,144,478 
Debt, including current portion$— $— $— $— $— $426,307 $426,307 
* Presented on an accrual basis; excludes asset retirement adjustments.
(18)

Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

19. Segment information (continued)
As at and for the six months ended June 30, 2020TurkeyCanadaGreeceRomaniaBrazilOtherTotal
Earnings and loss information
Revenue$272,864 $98,530 $89,178 $— $— $— $460,572 
Production costs93,114 34,049 83,676 — — — 210,839 
Depreciation and amortization (Note 2(c))
47,411 30,320 24,769 — — — 102,500 
Earnings (loss) from mine operations$132,339 $34,161 $(19,267)$— $— $— $147,233 
Other significant items of income and expense
Exploration and evaluation expenses$976 $1,448 $316 $1,823 $108 $889 $5,560 
Income tax expense (recovery) (Note 2(c))
40,342 6,863 (4,557)(1,183)6,357 — 47,822 
Capital expenditure information
Additions to property, plant and equipment during the period (*)$31,858 $22,186 $20,208 $6 $895 $26 $75,179 
* Presented on an accrual basis, excludes asset retirement adjustments.

As at December 31, 2020TurkeyCanadaGreeceRomaniaBrazilOtherTotal
Information about assets and liabilities
Property, plant and equipment
(Note 2(c))
$789,186 $596,082 $2,027,612 $414,118 $205,432 $9,769 $4,042,199 
Goodwill— 92,591 — — — — 92,591 
$789,186 $688,673 $2,027,612 $414,118 $205,432 $9,769 $4,134,790 
Debt, including current portion$— $— $— $— $— $501,132 $501,132 


20. Events occurring after the reporting date
In July 2021, the Company completed the acquisition of 11.5% of the outstanding common shares of Probe Metals Inc. for cash consideration of CDN $23,691 ($18,654).
(19)