EX-99.1 2 ego_ex991.htm MATERIAL CHANGE REPORT Blueprint

ELDORADO GOLD CORPORATION
FORM 51-102F3
MATERIAL CHANGE REPORT
Item 1.
Name and Address of Company
Eldorado Gold Corporation (“Eldorado” or the “Company”)
Suite 1188 – Bentall 5
550 Burrard Street
Vancouver, British Columbia V6C 2B5
 
Item 2.
Date of Material Change
October 31, 2019
 
Item 3.
News Release
 
The news release was disseminated by WEST, and filed on SEDAR, on October 31, 2019.
 
 
Item 4.
Summary of Material Change
 
The Company reported on its financial and operational results for the third quarter of 2019.
 
Item 5.
Full Description of Material Change
 
The Company reported on its financial and operational results for the third quarter of 2019.
 
●
Extension of mine life at Kisladag supported by recent test results: Waste stripping to support a mine life extension at Kisladag is underway. Recent test results confirm recoveries from leaching deeper material over 250 day cycles support an extension of mine life beyond the Company's current three year guidance. Testwork is still ongoing and the Company expects to update long term guidance at Kisladag based on the results of this testwork, which are expected to be available in Q1 2020.
 
●
Permits for Skouries and Olympias received: Permits allow for, among other things, installation of electrical and mechanical equipment at Skouries and Olympias. Subsequent to the quarter the Company also received approval for the Skouries building permit, which will allow the Company to begin installation of the Skouries mill building, and consent from the Central Archaeological Council to relocate an ancient mining furnace from the Skouries open pit area, subject to Ministerial approval.
 
●
Successful ramp up at Lamaque: Lamaque achieved commercial production in April 2019 and has had two successful operating quarters. In September 2019, the Company announced that it is undertaking a Preliminary Economic Assessment (“PEA”) to increase average annual production from approximately 130,000 ounces of gold to approximately 170,000 ounces of gold.
 
●
Increased Q3 gold production and reiterating 2019 annual guidance: Gold production for the quarter totalled 101,596 ounces with 276,376 ounces produced year-to-date. Quarterly production included 32,037 ounces from Lamaque in its second quarter of commercial operations and was partially offset by a decrease in production at Olympias as a result of reduced tonnage fed to the processing plant.
 
 

-2-
 
 
●
Steady EBITDA: Higher sales volumes in the quarter resulted in earnings before interest, taxes and depreciation and amortization ("EBITDA") of $73.2 million. Adjusted EBITDA of $75.9 million excludes the impact of non-cash share-based compensation expense.
 
●
Liquidity strengthened: The Company finished the quarter with approximately $322 million of liquidity including $134.9 million in cash, cash equivalents and term deposits and approximately $187 million available under its $250 million revolving credit facility, with $63 million of capacity on the revolving credit facility allocated to secure certain reclamation obligations in connection with its operations.
 
●
Positive net earnings per share: Net earnings to shareholders in the quarter totalled $4.2 million, or $0.03 per share. Adjusted net earnings were $7.5 million, or $0.05 per share, after adjusting for non-cash deferred tax expense relating to foreign currency exchange rate fluctuations.
 
Consolidated Financial and Operational Highlights
 
 
3 months ended September 30,
 
 
9 months ended September 30,
 
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Revenue (1)
 $172.3 
 $81.1 
 $426.0 
 $366.1 
Gold revenue (1)
 $150.2 
 $76.0 
 $355.6 
 $312.8 
Gold produced (oz) (2)
  101,596 
  84,783 
  276,376 
  273,261 
Gold sold (oz) (1)
  99,241 
  64,589 
  256,000 
  245,400 
Average realized gold price ($/oz sold) (5)
 $1,513 
 $1,177 
 $1,389 
 $1,274 
Cash operating costs ($/oz sold) (3,5)
  560 
  754 
  602 
  625 
Total cash costs ($/oz sold) (3,5)
  603 
  762 
  641 
  647 
All-in sustaining costs ($/oz sold) (3,5)
  1,031 
  1,112 
  998 
  944 
Net earnings (loss) for the period (4)
  4.2 
  (128.0)
  (10.6)
  (143.7)
Net earnings (loss) per share – basic ($/share) (4)
  0.03 
  (0.81)
  (0.07)
  (0.91)
Adjusted net earnings (loss) (4,5)
  7.5 
  (21.9)
  (14.7)
  (9.5)
Adjusted net earnings (loss) per share ($/share) (4,5)
  0.05 
  (0.14)
  (0.09)
  (0.06)
Cash flow from operating activities before changes in working capital (5,6)
  62.9 
  (1.7)
  108.6 
  60.4 
Cash, cash equivalents and term deposits
 $134.9 
 $385.0 
 $134.9 
 $385.0 
 
(1)
Excludes sales of inventory mined at Lamaque and Olympias (Q1 2018) during the pre-commercial production period.
(2)
Includes pre-commercial production at Lamaque and Olympias (Q1 2018).
(3)
By-product revenues are off-set against cash operating costs.
(4)
Attributable to shareholders of the Company.
(5)
These measures are non-IFRS measures. See the September 30, 2019 MD&A for explanations and discussion of these non-IFRS measures.
(6)
2018 amounts have been adjusted to reflect reclassifications in cash flow from operating activities in the current periods.
 
Gold sales of 99,241 ounces increased from 64,589 ounces in the third quarter of 2018 primarily due to the sale of 31,122 ounces from Lamaque in its second quarter of commercial operations.
Total revenues increased to $172.3 million from $81.1 million in the third quarter of 2018 as a result of higher sales volumes and a higher average realized gold price of $1,513 per ounce in the third quarter of 2019 compared to $1,177 per ounce in the third quarter of 2018.
 
 
-3-
 
 
 
Cash operating costs per ounce sold decreased to $560 from $754 in the third quarter of 2018, primarily due to the ramp-up of mining, crushing and placement of ore on the Kisladag heap leach pad beginning in April 2019, and the partial allocation of processing costs to gold inventory in the heap leach pad. This was partially offset by higher cash operating costs per ounce sold at Olympias as a result of lower production levels and at Efemcukuru as a result of increased transportation costs.
 
Net earnings attributable to shareholders of $4.2 million ($0.03 per share) improved from a net loss attributable to shareholders in the third quarter of 2018 of $128.0 million ($0.81 loss per share). The improvement was primarily a result of higher sales volumes in the third quarter and an impairment charge in the third quarter of 2018 of $117.6 million ($94.1 million net of deferred income tax recovery) relating to the Kisladag heap leach pad.
 
Higher sales volumes in the quarter resulted in EBITDA of $73.2 million. Adjusted EBITDA of $75.9 million excludes the impact of share based payments.
 
Adjusted net earnings were $7.5 million ($0.05 per share) in the quarter, compared to adjusted net loss of $21.9 million ($0.14 loss per share) in the third quarter of 2018. Adjusted net earnings in the third quarter of 2019 removes, among other things, $3.4 million of deferred tax expense relating to foreign currency exchange rate fluctuations. Adjusted net loss in the third quarter of 2018 primarily removes the $117.6 million impairment charge ($94.1 million net of deferred income tax recovery) relating to the Kisladag heap leach operations.
 
 
 
 
 
 
 
 
-4-
 
 
Gold Operations
 
  
3 months ended September 30,
 
  
9 months ended September 30,
 
 
  
2019
 
  
2018
 
  
2019
 
  
2018
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Ounces produced (1)
  101,596 
  84,783 
  276,376 
  273,261 
Ounces sold (2)
  99,241 
  64,589 
  256,000 
  245,400 
Cash operating costs ($/oz sold) (4)
 $560 
 $754 
 $602 
 $625 
All-in sustaining costs ($/oz sold) (4)
 $1,031 
 $1,112 
 $998 
 $944 
Sustaining capex (4)
 $30.0 
 $12.1 
 $56.3 
 $37.2 
Kisladag
    
    
    
    
Ounces produced (3)
  35,885 
  34,070 
  89,204 
  143,814 
Ounces sold
  35,881 
  34,069 
  89,208 
  143,539 
Cash operating costs ($/oz sold) (4)
 $399 
 $890 
 $442 
 $685 
All-in sustaining costs ($/oz sold) (4)
 $566 
 $1,010 
 $580 
 $821 
Sustaining capex (4)
 $3.9 
 $3.3 
 $8.0 
 $13.6 
Lamaque
    
    
    
    
Ounces produced (1)
  32,037 
  13,430 
  84,855 
  19,304 
Ounces sold (2)
  31,122 
  n/a 
  55,452 
  n/a 
Cash operating costs ($/oz sold) (4)
 $480 
  n/a 
 $496 
  n/a 
All-in sustaining costs ($/oz sold) (4)
 $1,089 
  n/a 
 $968 
  n/a 
Sustaining capex (4)
 $15.9 
  n/a 
 $21.2 
  n/a 
Efemcukuru
    
    
    
    
Ounces produced
  25,733 
  24,493 
  77,524 
  71,494 
Ounces sold
  25,583 
  23,104 
  80,222 
  73,957 
Cash operating costs ($/oz sold) (4)
 $591 
 $456 
 $596 
 $503 
All-in sustaining costs ($/oz sold) (4)
 $900 
 $766 
 $859 
 $769 
Sustaining capex (4)
 $5.2 
 $5.7 
 $14.2 
 $15.3 
Olympias
    
    
    
    
Ounces produced
  7,941 
  12,790 
  24,793 
  38,649 
Ounces sold
  6,655 
  7,416 
  31,118 
  27,904 
Cash operating costs ($/ounce)
 $1,678 
 $1,058 
 $1,268 
 $643 
All in sustaining costs ($/ounce)
 $2,598 
 $1,688 
 $1,776 
 $1,107 
Sustaining capex
 $4.9 
 $3.1 
 $12.9 
 $8.3 
 
(1)
Includes pre-commercial production at Lamaque and at Olympias (Q1 2018).
(2)
Excludes sales of inventory produced at Lamaque and Olympias (Q1 2018) during the pre-commercial production period. In the nine months ended September 30, 2019, 27,627 ounces were sold from inventory produced during the pre-commercial production period.
(3)
Kisladag resumed mining, crushing and placing ore on the heap leach pad on April 1, 2019. This activity had been suspended since April 2018.
(4)
These measures are non-IFRS measures. See the September 30, 2019 MD&A for explanations and discussion of these non-IFRS measures.
 
Gold production of 101,596 ounces increased from 84,783 ounces in the third quarter of 2018 primarily due to 32,037 ounces produced at Lamaque in its second quarter of commercial operations. This was partially offset by a decrease in production at Olympias as a result of reduced tonnage fed to the processing plant.

 
-5-
 
 
 
Non-IFRS Measures
Certain non-IFRS measures are included in this material change report, including average realized gold price per ounce sold, cash operating costs and cash operating costs per ounce sold, total cash costs and total cash costs per ounce sold, all-in sustaining costs ("AISC") and AISC per ounce sold, adjusted net earnings/(loss), adjusted net earnings/(loss) per share, working capital, cash flow from operations before changes in non-cash working capital, earnings before interest, taxes and depreciation and amortization ("EBITDA") and adjusted earnings before interest, taxes and depreciation and amortization ("Adjusted EBITDA") and sustaining capital. Please see the September 30, 2019 MD&A for explanations and discussion of these non-IFRS measures. The Company believes that these measures, in addition to conventional measures prepared in accordance with International Financial Reporting Standards (“IFRS”), provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.
 
Cautionary Note about Forward-looking Statements and Information
 
Certain of the statements made and information provided in this material change report are 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, these forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", “continue”, “projected”, "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
 
Forward-looking statements or information contained in this report include, but are not limited to, statements or information with respect to: our guidance and outlook, including expected production, cost guidance and recoveries of gold, favourable economics for our heap leaching plan and the ability to extend mine life at our projects, including at Kisladag through further metallurgical tests on deeper material, completion and results of waste stripping at Kisladag, improved production at Olympias, completion and results of construction and the PEA at Lamaque, completion of construction at Skouries, planned capital and exploration expenditures; our expectation as to our future financial and operating performance, expected metallurgical recoveries, gold price outlook and the global concentrate market; and our strategy, plans and goals, including our proposed exploration, development, construction, permitting and operating plans and priorities and related timelines and schedules and results of litigation and arbitration proceedings.
 
Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, market 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, including assumptions about the geopolitical, economic, permitting and legal climate that we operate in; the future price of gold and other commodities; the global concentrate market; exchange rates; anticipated costs and expenses; production, mineral reserves and resources and metallurgical recoveries, the impact of acquisitions, dispositions, suspensions or delays on our business and the ability to achieve our goals. In particular, except where otherwise stated, we have assumed a continuation of existing business operations on substantially the same basis as exists at the time of this report.
 
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. Many assumptions may be difficult to predict and are beyond our control.
 
Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: results of further testwork, recoveries of gold and other metals; geopolitical and economic climate (global and local), risks related to mineral tenure and permits; gold and other commodity price volatility; continued softening of the global concentrate market; risks regarding potential and pending litigation and arbitration proceedings relating to the Company’s, business, properties and operations; expected impact on reserves and the carrying value; the updating of the reserve and resource models and life of mine plans; mining operational and development risk; financing risks, foreign country operational risks; risks of sovereign investment; regulatory risks and liabilities including, environmental regulatory restrictions and liability; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical testing and recoveries; additional funding requirements; currency fluctuations; community and non-governmental organization actions; speculative nature of gold exploration; dilution; share price volatility and the price of the common shares of the Company; competition; loss of key employees; and defective title to mineral claims or properties, as well as those risk factors discussed in the sections titled “Forward-Looking Statements” and "Risk factors in our business" in the Company's most recent Annual Information Form & Form 40-F. The reader is directed to carefully review the detailed risk discussion in our most recent Annual Information Form filed on SEDAR under our Company name, which discussion is incorporated by reference in this report, for a fuller understanding of the risks and uncertainties that affect the Company’s business and operations.
 
 
-6-
 
 
 
Forward-looking statements and information is designed to help you understand management’s current views of our near and longer term prospects, and it may not be appropriate for other purposes.
 
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.
 
Financial Information and condensed statements contained herein or attached hereto may not be suitable for readers that are unfamiliar with the Company and is not a substitute for reading the Company’s financial statements and related MD&A available on our website and on SEDAR under our Company name. The reader is directed to carefully review such document for a full understanding of the financial information summarized herein.
 
Except as otherwise noted, scientific and technical information contained in this material change report was reviewed and approved by Paul Skayman, FAusIMM, Chief Operating Officer for Eldorado Gold Corporation, and a "qualified person" under NI 43-101.
 
 
 
 
 
 
 
 
 
 
 
 
-7-
 
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Financial Position
(Unaudited – in thousands of U.S. dollars)
 
As at
 
Note
 
 
September 30,
2019
 
 
December 31,
2018
 
ASSETS
 
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 $129,978 
 $286,312 
Term deposits
 
 
 
  4,889 
  6,646 
Restricted cash
 
 
 
  20 
  296 
Marketable securities
 
 
 
  3,357 
  2,572 
Accounts receivable and other
  4 
  77,616 
  80,987 
Inventories
  5 
  151,459 
  137,885 
Assets held for sale
  14 
  12,591 
  — 
 
    
  379,910 
  514,698 
Restricted cash
    
  3,234 
  13,449 
Other assets
    
  15,418 
  10,592 
Defined benefit pension plan
    
  9,467 
  9,120 
Property, plant and equipment
    
  3,997,067 
  3,988,476 
Goodwill
    
  92,591 
  92,591 
 
    
 $4,497,687 
 $4,628,926 
LIABILITIES & EQUITY
    
    
    
Current liabilities
    
    
    
Accounts payable and accrued liabilities
    
 $121,284 
 $137,900 
Current portion of lease liabilities
    
  8,420 
  2,978 
Current portion of debt
  6 
  33,333 
  — 
Current portion of asset retirement obligations
    
  824 
  824 
Liabilities associated with assets held for sale
  14 
  4,207 
  — 
 
    
  168,068 
  141,702 
Debt
  6 
  449,755 
  595,977 
Lease liabilities
    
  18,529 
  6,538 
Defined benefit pension plan
    
  14,884 
  14,375 
Asset retirement obligations
    
  88,568 
  93,319 
Deferred income tax liabilities
    
  419,205 
  429,929 
 
    
  1,159,009 
  1,281,840 
Equity
    
    
    
Share capital
    
  3,008,172 
  3,007,924 
Treasury stock
    
  (8,737)
  (10,104)
Contributed surplus
    
  2,625,457 
  2,620,799 
Accumulated other comprehensive loss
    
  (24,296)
  (24,494)
Deficit
    
  (2,321,034)
  (2,310,453)
Total equity attributable to shareholders of the Company
    
  3,279,562 
  3,283,672 
Attributable to non-controlling interests
    
  59,116 
  63,414 
 
    
  3,338,678 
  3,347,086 
 
    
 $4,497,687 
 $4,628,926 
 
Please see the Condensed Consolidated Interim Financial Statements dated September 30, 2019 for notes to the accounts.
 
 
 
 
 
-8-
 
 
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Operations
For the three and nine months ended September 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars except share and per share amounts)
 
 
 
 
 
 
Three months ended
 
 
Nine months ended
 
 
 
 
 
 
September 30,
 
 
September 30,
 
 
 
Note
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Metal sales
  7 
 $172,256 
 $81,070 
 $425,958 
 $366,146 
 
    
    
    
    
    
Cost of sales
    
    
    
    
    
  Production costs
    
  84,813 
  56,066 
  237,630 
  209,145 
  Depreciation and amortization
    
  40,017 
  20,257 
  101,147 
  83,927 
 
    
  124,830 
  76,323 
  338,777 
  293,072 
 
    
    
    
    
    
Earnings from mine operations
    
  47,426 
  4,747 
  87,181 
  73,074 
 
    
    
    
    
    
Exploration and evaluation expense
    
  2,774 
  8,014 
  10,668 
  26,668 
Mine standby costs
    
  2,529 
  4,460 
  13,972 
  11,470 
General and administrative expense
    
  7,431 
  10,896 
  22,687 
  33,127 
Defined benefit pension plan expense
    
  458 
  201 
  1,567 
  2,331 
Share based payments
  10 
  2,727 
  1,580 
  8,127 
  5,742 
Impairment (reversal of impairment)
  14,15 
  — 
  117,570 
  (11,690)
  117,570 
(Write-up) write-down of assets
    
  (414)
  536 
  13 
  1,386 
Foreign exchange loss (gain)
    
  643 
  (3,034)
  878 
  374 
Earnings (loss) from operations
    
  31,278 
  (135,476)
  40,959 
  (125,594)
 
    
    
    
    
    
Other income
  8(a)
  871 
  6,284 
  11,159 
  13,878 
Finance costs
  8(b)
  (13,170)
  (839)
  (37,287)
  (8,113)
Earnings (loss) from operations before income tax
    
  18,979 
  (130,031)
  14,831 
  (119,829)
 
    
    
    
    
    
Income tax expense
    
  15,888 
  661 
  29,930 
  29,324 
Net earnings (loss) for the period
    
 $3,091 
 $(130,692)
 $(15,099)
 $(149,153)
 
    
    
    
    
    
Attributable to:
    
    
    
    
    
Shareholders of the Company
    
  4,233 
  (128,045)
  (10,581)
  (143,718)
Non-controlling interests
    
  (1,142)
  (2,647)
  (4,518)
  (5,435)
Net earnings (loss) for the period
    
 $3,091 
 $(130,692)
 $(15,099)
 $(149,153)
 
    
    
    
    
    
Weighted average number of shares outstanding (thousands)
    
    
    
    
    
Basic
    
  158,462 
  158,294 
  158,409 
  158,434 
Diluted
    
  161,735 
  158,294 
  158,409 
  158,434 
 
    
    
    
    
    
Net earnings (loss) per share attributable to shareholders of the Company:
    
    
    
    
    
Basic earnings (loss) per share
    
 $0.03 
 $(0.81)
 $(0.07)
 $(0.91)
Diluted earnings (loss) per share
    
 $0.03 
 $(0.81)
 $(0.07)
 $(0.91)
 
Please see the Condensed Consolidated Interim Financial Statements dated September 30, 2019 for notes to the accounts.
 
 
 
 
 
-9-
 
 
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Comprehensive Income (Loss)
For the three and nine months ended September 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars)
 
 
 
 
 
 
Three months ended
 
 
Nine months ended
 
 
 
 
 
 
September 30,
 
 
September 30,
 
 
 
Note
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings (loss) for the period
    
 $3,091 
 $(130,692)
 $(15,099)
 $(149,153)
Other comprehensive income (loss):
    
    
    
    
    
Items that will not be reclassified to earnings or loss:
    
    
    
    
    
Change in fair value of investments in equity securities, net of tax
    
  (378)
  (875)
  785 
  (2,034)
Actuarial (loss) gain on defined benefit pension plan,net of tax
    
  (178)
  (200)
  (587)
  450 
Total other comprehensive income (loss) for the period
    
  (556)
  (1,075)
  198 
  (1,584)
Total comprehensive income (loss) for the period
    
 $2,535 
 $(131,767)
 $(14,901)
 $(150,737)
 
    
    
    
    
    
Attributable to:
    
    
    
    
    
Shareholders of the Company
    
  3,677 
  (129,120)
  (10,383)
  (145,302)
Non-controlling interests
    
  (1,142)
  (2,647)
  (4,518)
  (5,435)
 
    
 $2,535 
 $(131,767)
 $(14,901)
 $(150,737)
 
Please see the Condensed Consolidated Interim Financial Statements dated September 30, 2019 for notes to the accounts.
 
 
 
 
 
-10-
 
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Cash Flows
For the three and nine months ended September 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars)
 

 
 
 
 
Three months ended
 
 
Nine months ended
 
 
 
 
 
 
September 30,
 
 
September 30,
 
 
 
Note
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Cash flows generated from (used in):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings (loss) for the period
 
 
 
 $3,091 
 $(130,692)
 $(15,099)
 $(149,153)
Items not affecting cash:
 
 
 
    
    
    
    
Depreciation and amortization
 
 
 
  41,759 
  19,828 
  102,889 
  83,498 
Finance costs
  8(b)
  13,170 
  839 
  37,287 
  8,113 
Unrealized foreign exchange (gain) loss
    
  (555)
  (144)
  (906)
  274 
Income from royalty sale
  8(a)
  — 
  — 
  (8,075)
  — 
Income tax expense
    
  15,888 
  661 
  29,930 
  29,324 
Impairment (reversal) of impairment
  14,15 
  — 
  117,570 
  (11,690)
  117,570 
(Write-up) write-down of assets
    
  (414)
  536 
  13 
  1,386 
Gain on derivatives and other investments
  8(a)
  — 
  (2,326)
  — 
  (4,520)
Share based payments
  10 
  2,727 
  1,580 
  8,127 
  5,742 
Defined benefit pension plan expense
    
  458 
  201 
  1,567 
  2,331 
 
    
  76,124 
  8,053 
  144,043 
  94,565 
Property reclamation payments
    
  (759)
  (801)
  (2,555)
  (3,200)
Severance and pension payments
    
  (332)
  (49)
  (1,681)
  (2,299)
Income taxes paid
    
  (8,593)
  (8,860)
  (12,603)
  (24,461)
Interest paid
    
  (3,505)
  — 
  (18,641)
  (4,203)
Changes in non-cash working capital
  11 
  (11,728)
  15,638 
  (6,961)
  2,200 
Net cash generated from operating activities
    
  51,207 
  13,981 
  101,602 
  62,602 
 
    
    
    
    
    
Investing activities
    
    
    
    
    
Purchase of property, plant and equipment
    
  (34,760)
  (56,203)
  (148,700)
  (160,491)
Capitalized interest paid
    
  — 
  — 
  (3,848)
  (14,172)
Proceeds from the sale of property, plant and equipment
    
  108 
  68 
  3,880 
  7,880 
Proceeds on pre-commercial production sales, net
    
  — 
  (3,894)
  12,159 
  1,308 
Value added taxes related to mineral property expenditures, net
    
  104 
  1,858 
  (7,615)
  6,660 
(Investment in) redemption of term deposits
    
  (114)
  (5)
  1,757 
  (1,123)
Decrease (increase) in restricted cash
  6(b)
  297 
  (30)
  10,491 
  (898)
Net cash used in investing activities
    
  (34,365)
  (58,206)
  (131,876)
  (160,836)
 
    
    
    
    
    
Financing activities
    
    
    
    
    
Issuance of common shares for cash
    
  161 
  — 
  179 
  — 
Contributions from non-controlling interests
    
  220 
  — 
  220 
  — 
Proceeds from borrowings
    
  — 
  — 
  494,000 
  — 
Repayment of borrowings
  6(c)
  — 
  — 
  (600,000)
  — 
Loan financing costs
    
  (428)
  — 
  (15,423)
  — 
Principal elements of lease payments
    
  (2,387)
  (601)
  (4,773)
  (815)
Purchase of treasury stock
    
  — 
  — 
  — 
  (2,108)
Net cash used in financing activities
    
  (2,434)
  (601)
  (125,797)
  (2,923)
 
    
    
    
    
    
Net increase (decrease) in cash and cash equivalents
    
  14,408 
  (44,826)
  (156,071)
  (101,157)
Cash and cash equivalents - beginning of period
    
  115,833 
  423,170 
  286,312 
  479,501 
 
    
  130,241 
  378,344 
  130,241 
  378,344 
Cash in disposal group held for sale
  14 
  (263)
  — 
  (263)
  — 
Cash and cash equivalents - end of period
    
 $129,978 
 $378,344 
 $129,978 
 $378,344 
 
Please see the Condensed Consolidated Interim Financial Statements dated September 30, 2019 for notes to the accounts.
 
 
 
 
 
-11-
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Changes in Equity
For the three and nine months ended September 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars)
 
 
 
 
 
 
Three months ended
 
 
Nine months ended
 
 
 
 
 
 
September 30,
 
 
September 30,
 
 
 
Note
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Share capital
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance beginning of period
    
 $3,007,944 
 $3,007,924 
 $3,007,924 
 $3,007,924 
Shares issued upon exercise of share options, for cash
    
  161 
  — 
  179 
  — 
Transfer of contributed surplus on exercise of options
    
  67 
  — 
  69 
  — 
Balance end of period
    
 $3,008,172 
 $3,007,924 
 $3,008,172 
 $3,007,924 
 
    
    
    
    
    
Treasury stock
    
    
    
    
    
Balance beginning of period
    
 $(8,813)
 $(10,104)
 $(10,104)
 $(11,056)
Purchase of treasury stock
    
  — 
  — 
  — 
  (2,108)
Shares redeemed upon exercise of restricted share units
    
  76 
  — 
  1,367 
  3,060 
Balance end of period
    
 $(8,737)
 $(10,104)
 $(8,737)
 $(10,104)
 
    
    
    
    
    
Contributed surplus
    
    
    
    
    
Balance beginning of period
    
 $2,623,523 
 $2,617,108 
 $2,620,799 
 $2,616,593 
Share based payments
    
  2,077 
  1,861 
  6,094 
  5,436 
Shares redeemed upon exercise of restricted share units
    
  (76)
  — 
  (1,367)
  (3,060)
Transfer to share capital on exercise of options
    
  (67)
  — 
  (69)
  — 
Balance end of period
    
 $2,625,457 
 $2,618,969 
 $2,625,457 
 $2,618,969 
 
    
    
    
    
    
Accumulated other comprehensive loss
    
    
    
    
    
Balance beginning of period
    
 $(23,740)
 $(21,859)
 $(24,494)
 $(21,350)
Other comprehensive (loss) income for the period
    
  (556)
  (1,075)
  198 
  (1,584)
Balance end of period
    
 $(24,296)
 $(22,934)
 $(24,296)
 $(22,934)
 
    
    
    
    
    
Deficit
    
    
    
    
    
Balance beginning of period
    
 $(2,325,267)
 $(1,964,242)
 $(2,310,453)
 $(1,948,569)
Net earnings (loss) attributable to shareholders of the Company
    
  4,233 
  (128,045)
  (10,581)
  (143,718)
Balance end of period
    
 $(2,321,034)
 $(2,092,287)
 $(2,321,034)
 $(2,092,287)
Total equity attributable to shareholders of the Company
    
 $3,279,562 
 $3,501,568 
 $3,279,562 
 $3,501,568 
 
    
    
    
    
    
Non-controlling interests
    
    
    
    
    
Balance beginning of period
    
 $60,257 
 $78,153 
 $63,414 
 $79,940 
Net loss attributable to non-controlling interests
    
  (1,142)
  (2,647)
  (4,518)
  (5,435)
Contributions from non-controlling interests
    
  1 
  220 
  220 
  1,221 
Balance end of period
    
 $59,116 
 $75,726 
 $59,116 
 $75,726 
Total equity
    
 $3,338,678 
 $3,577,294 
 $3,338,678 
 $3,577,294 
 
Please see the Condensed Consolidated Interim Financial Statements dated September 30, 2019 for notes to the accounts.
 
 
 
 
 
-12-
 
 
Item 6.
Reliance on 7.1(2) of National Instrument 51-102
Not applicable.
 
Item 7.
Omitted Information
Not applicable.
 
Item 8.
Executive Officer
Name of Executive Officer:      Timothy Garvin
                                                     Executive Vice President and General Counsel
Telephone number:                   (604) 601 6692
 
Item 9.
Date of Report
October 31, 2019