Eldorado Gold Corp T.ELD

Alternate Symbol(s): EGO

Metals & Mining Gold

Eldorado Gold Corporation is a gold and base metals mining, development, and exploration company. It has mining operations, ongoing development projects and exploration in Turkiye, Canada, and Greece. It operates four mines: Kisladag and Efemcukuru located in western Turkiye, the Lamaque Complex in Quebec, Canada, and Olympias, located in northern Greece. Kisladag, Efemcukuru and Lamaque are gold mines, while Olympias is a polymetallic operation producing three concentrates bearing gold, lead-silver and zinc. The Lamaque Complex is located in Val-d’Or, Quebec. It includes the Triangle Mine (Upper and Lower), the Ormaque Deposit, the Parallel Deposit, the Plug #4 Deposit, and the Sigma Mill. Efemcukuru is an underground operation located in Izmir Province in western Turkiye. Its other development project in its portfolio includes Perama Hill, a gold-silver project in Greece. Its Stratoni is an underground, silver-lead-zinc mine located in the Halkidiki Peninsula in northern Greece.

TSX:ELD - Post by User

Eldorado Gold Corp

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Post by wwadehammeron Apr 06, 2018 11:46am

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Post# 27843069

Financing Needs

Here's the cash and debt at 12/31/17. It's not pretty:

working capital $400 million - $590 million debt due 12/15//20. ELD has a $350 million credit facility that has limits on other debts:

(a) Revolving credit facility

In November 2012, the Company entered into a $375.0 million credit facility with a syndicate of banks. This credit facility was amended and restated in June 2016 (“the amended and restated credit agreement” or “ARCA”) and reduced to an available credit of $250 million with the option to increase by an additional $100 million through an accordion feature. The maturity date is June 13, 2020. The ARCA is secured by the shares of SG Resources and Tuprag, wholly owned subsidiaries of the Company.

The ARCA contains covenants that restrict, among other things, the ability of the Company to incur aggregate unsecured indebtedness exceeding $850 million, incur secured indebtedness exceeding $200 million and permitted unsecured indebted- ness exceeding $150 million. The ARCA also contains restrictions for making distributions in certain circumstances, selling material assets and conducting business other than that which relates to the mining industry. Significant financial covenants include a maximum Net Debt to Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) of 3.5:1 and a minimum EBITDA to Interest of 3:1. The Company is in compliance with these covenants at December 31, 2017.

No amounts were drawn down under the ARCA as at December 31, 2017 (2016 – nil).

14. Debt(continued) (b) Senior notes

On December 10, 2012, the Company completed an offering of $600.0 million senior notes (“the notes”) at par value, with a coupon rate of 6.125% due December 15, 2020. The notes pay interest semi-annually on June 15 and December 15. The Company received proceeds of $589.5 million from the offering, which is net of the commission payment. The notes are redeemable by the Company in whole or in part, for cash:

Per the corporate presentations, ELD will need the following capital amounts to start production:

Turkey Oct 18 to commercial production start in July 2021 $378 million

Greece Assume Oct 18 to commercial production start in Oct 2020 $689 million

Lamaque start up is $100 million to acheive commercial production by April 2019. Lamaque investment is peanuts and will pay back the $100 million in cash costs by April 2020.

So by the end of December 2020 they will have to come up with the following:

Turkey $300 million

Greece $689 million

Debt Payoff $589 million

Less cash on hand $400 million

Total Financing Needed $1,178 million

You can't count on the LoC because of the other debt restrictions. Makes it harder to finance projects in unstable countries. The interest rates will be high. They need something in place by the end of this year.