TSX: ELD NYSE: EGO
VANCOUVER, March 21, 2018 /PRNewswire/ - Eldorado Gold
Corporation, ("Eldorado" or "the Company") today reports the Company's financial and operational results for the fourth quarter
and year ended December 31, 2017.
For information relating to the year ahead and the highlights of the Kisladag, Lamaque and Skouries Technical Reports, readers
should refer to the Company's press release titled "Eldorado Gold Reports Results of Technical Studies", also dated March 21, 2018 (the "Technical Studies Press Release").
Financial and Operating Results Overview
- Loss attributable to shareholders of $9.9 million ($0.01 per
share), compared to loss attributable to shareholders of $344.2 million ($0.48 per share) in 2016. Adjusted net earnings of $15.2 million
($0.02 per share) 1 compared to an adjusted net earnings of $47.4 million ($0.07 per share) in 2016.
- Full year gold production of 292,971 ounces, including Olympias pre-commercial production and 7,061 ounces of gold
produced from a bulk sample at our newly acquired Lamaque project in Quebec (2016: 312,299
ounces from continuing operations).
- Gross profit from gold mining operations of $121.2 million (2016: $158.7 million from continuing operations).
- Gold revenues of $333.3 million on sales of 264,080 ounces at an average realized
gold price of $1,262 per ounce.
- All-in sustaining cash costs averaged $922 per ounce 1, slightly
higher than guidance of $915 per ounce.
- Cash operating costs averaged $509 per ounce 1 ; compared to revised 2017 guidance of
$500 per ounce.
- The Company held $485 million in cash, cash equivalents and term deposits, and
$250 million in undrawn lines of credit at year end.
- Completed acquisition of Integra Gold Corp. ("Integra"), for a total consideration of $357
million, inclusive of Integra shares held by Eldorado. Commenced pre-feasibility work
(including test mining), and advanced construction of the Lamaque mine and refurbishment of the associated Sigma mill.
- Hellas Gold S.A., Eldorado's Greek subsidiary,
entered into arbitration proceedings with the Greek Government; the proceedings are expected to conclude by
April 6, 2018.
- In November, announced the intention to move the Skouries project into care and maintenance due to continued
permitting delays. Skouries is expected to be fully ramped down shortly.
- Olympias Phase II commissioning was completed and commercial production was achieved on December 31, 2017.
- Continued exploration success at Lamaque (Canada), Bolcana (Romania), Efemcukuru (Turkey), and Stratoni (Greece), with a total of 114,900 meters of drilling completed in 2017.
- Continued improvement to the overall safety record with a reduction in the total recordable injury frequency rate
(for continuous operations) for the fourth consecutive year to 6.61 from 7.18 in 2016.
- George Burns appointed President and CEO in April 2017.
- Reconfigured the Board of Directors with retirements of Paul Wright and
Jonathan Rubenstein and the appointment of Dr. George Albino as
the new Chair.
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1 Throughout this press release we use cash operating cost per
ounce, total cash costs per ounce, all-in sustaining cost per ounce, gross profit from gold mining operations, adjusted
net earnings and cash flow from operating activities before changes in non-cash working capital as additional measures of
Company performance. These are non IFRS measures. Please see our MD&A for an explanation and discussion of these non
IFRS measures. All dollar amounts in US$, unless stated otherwise.
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Reserves and Resources
The Company ended 2017 with proven and probable gold reserves of 392 million tonnes at 1.37 grams per tonne gold containing
17.3 million ounces. A gold price of $1,200 per ounce was used in the reserve estimates, the
same as in 2016.
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Million Ounces
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Proven and probable in-situ gold ounces as of January 1, 2017
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19,263
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Mined ounces including mining depletion during 2017
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-576
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Net discovered ounces and converted resources during 2017
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+948
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Net decrease due to engineering and metallurgy
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-2,308
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Proven and probable in-situ gold ounces as of December 31,
2017
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17,327
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The complete mineral reserve and mineral resource data can be found at the end of this news release and includes the data for
tonnes, grades and ounces.
The 10% overall reduction in reserve ounces was primarily attributable to the planned conversion of Kisladag from a heap leach
asset to a mill processing option, with resulting higher processing costs and higher recoveries. While mineable reserves at
Kisladag declined by 1.7 million ounces, incorporating expected higher mill recoveries, the forecast recoverable ounces dropped
by only 400,000 ounces. Lower reserves at Olympias are the result of increases in forecast operating costs and mining dilution,
both based on actual data seen since start-up.
2017 Annual Financial Results
($ million unless otherwise noted)
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2017
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Q1
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Q2
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Q3
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Q4
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2017
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Revenues
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111.9
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82.7
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95.4
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101.4
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391.4
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Gold revenues
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90.5
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72.2
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84.4
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86.2
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333.3
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Gold sold (ounces)
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74,068
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57,206
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65,439
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67,367
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264,080
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Average realized gold price ($/ounce)
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1,222
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1,262
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1,290
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1,280
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1,262
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Cash operating costs ($/ounce)
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466
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484
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508
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577
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509
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All-in sustaining cash cost ($/ounce)
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791
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846
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925
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1,104
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922
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Gross profit from gold mining operations
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37.0
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28.1
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30.1
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26.0
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121.2
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Adjusted net earnings (loss)
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8.0
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6.3
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1.3
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(0.4)
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15.2
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Net profit (loss) 1
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3.8
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11.2
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(4.2)
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(20.7)
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(9.9)
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Earnings (loss) per share – basic ($/share) 1
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0.01
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0.02
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(0.01)
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(0.03)
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(0.01)
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Earnings (loss) per share – diluted ($/share) 1
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0.01
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0.02
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(0.01)
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(0.03)
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(0.01)
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Cash flow from operating activities 2
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28.2
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16.9
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16.3
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5.1
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66.5
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(1)
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Attributable to shareholders of the Company
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(2)
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Before changes in non-cash working capital
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Review of Annual Financial Results
For the 12 months ended December 31, 2017, the loss attributable to shareholders of the Company
was $9.9 million, (or $0.01 per share), compared to a loss of
$344.2 million, or $0.48 per share in 2016. Financial results in 2017
were impacted by lower gross profit from gold mining operations, higher exploration and general and administrative costs, as well
as write-downs of assets, partly offset by a gain on marketable securities related to the Integra acquisition. The loss in 2016
was mainly due to the $351.2 million loss recorded on the sale of the Company's Chinese assets.
Adjusted net earnings for the year were $15.2 million ($0.02 per
share) compared to $47.4 million ($0.07 per share) for 2016. Gross
profit from gold mining operations was $37.1 million, lower year over year, mainly due to lower
sales at the Turkish mines. General and administrative expenses were $16.7 million, higher year
over year, due to higher legal and reorganization costs. Exploration expenses were $19.5, million
higher due to an increase in exploration activities worldwide. Offsetting these cost increases was a decrease in mine standby
costs of $11.3 million as well as $17.6 million in other income
mainly related to interest on cash investments and a reversal of liabilities related to Integra flow through shares. Foreign
exchange gain was $2.4 million as compared with a loss of $2.7
million in 2016, as the US dollar strengthened against other currencies in 2017.
Review of Fourth Quarter Results
Loss attributable to shareholders of the Company for the fourth quarter was $20.7 million
($0.03 per share) as compared to a loss for the quarter ended December 31,
2016 of $32.5 million ($0.05 per share). Adjusted losses were
$0.4 million as compared to fourth quarter 2016 adjusted earnings of $2.9
million. The main factors that impacted adjusted earnings for the fourth quarter year over year were lower sales volumes
partly offset by higher gold prices.
Operations Review
TURKEY
Kışladağ
Production at Kisladag in 2017 was 171,358 ounces of gold, which was lower than the previous year (211,161 ounces in 2016).
Cash costs were $500 per ounce ($474 per ounce in 2016). Kisladag
reported a reduction in ore tonnes to the leach pad year over year (13.1 million tonnes in 2017 versus 16.6 million tonnes in
2016), with no lower grade run of mine ore being placed on the pad in 2017. The average ore grade in 2017 was 1.03 grams per
tonne versus 0.80 grams per tonne in 2016. Gold production, sales and revenue were down year over year due to lower grade
solution from the leach pad, as a result of a combination of lower recovery material being placed on the pad later in the year
and slower leach kinetics being exhibited earlier in the year. Cash costs during the year were negatively affected by a write
down of 40,000 inventory ounces effective October 1 st. Capital expenditures were
$27.9 million, and included capitalized waste stripping, leach pad construction, equipment
overhauls and various process improvements.
During the third quarter, a significant amount of laboratory test work was undertaken, as the monthly composite samples from
material placed on the pad were indicating lower gold recoveries in the 35-40% range. Throughout the remainder of the year, the
Company continued to investigate alternative treatment methods, which included studies on finer particle breakage, either through
milling or high pressure grinding roll crushers.
A National Instrument 43-101 - Standards of Disclosure of Mineral Projects of the Canadian Securities Administrators ("NI
43-101") compliant pre-feasibility study outlining the planned path forward at Kisladag is expected be filed by the Company on
March 29, 2018, the results of which are highlighted in the Technical Studies Press Release dated
March 21, 2018. This new study indicates that the construction of a conventional carbon in pulp
mill at Kisladag is technically and economically feasible and supports a 3.1 million ounce reserve with expected metallurgical
recoveries of approximately 80%, to produce an average of 270,000 ounces of gold per year over nine years.
As outlined in the Technical Studies Press Release, 2018 production at Kisladag is forecast to be 120,000-130,000 ounces of
gold from the leach pad at a cash cost of $600-700 per ounce including roughly $150 per ounce of non-cash inventory changes.
Efemçukuru
Gold production at Efemcukuru of 96,080 ounces was reasonably consistent year over year with slightly higher processed tonnage
(481,600 tonnes in 2017 versus 476,500 tonnes in 2016) and improved recoveries (94.8% in 2017 versus 92.2% in 2016) somewhat
offsetting the lower head grade (7.01 grams per tonne in 2017 versus 7.40 grams per tonne in 2016). Cash operating costs of
$524 per ounce increased slightly ($514 per ounce in 2016), mainly
due to the lower head grade. Capital spending of $28.9 million included costs related to
capitalized underground development and various process improvements.
In 2018, Efemcukuru is expected to mine and process over 480,000 tonnes of ore at an average grade of 7.0 grams per tonne
gold, producing 90,000-100,000 ounces of gold, at operating costs of $530-570 per ounce. Sustaining
capital expenditures for 2018 are forecast to be approximately $20 million, spent primarily on
underground mine development, equipment purchase and rebuilds and various small capital projects.
Exploration drilling of 20,000 metres during 2017 included resource conversion drilling on the Kestane Beleni vein and
resource expansion drilling on the nearby Kokarpinar vein system. The resource conversion drilling targeted inferred
resources downdip from the current production levels in the South Ore Shoot, in the transition zone between South and Middle Ore
Shoots and at the Kestane Beleni Northwest zone, while resource expansion drilling at Kokarpinar tested the northern part of the
vein system. 10,000 meters of exploration drilling in 2018 will continue to further test both vein systems.
GREECE
Stratoni
Concentrate tonnes produced at Stratoni were lower year over year due to decreased mill throughput and lower lead grades (5.8%
in 2017 versus 6.1% in 2016) and zinc grades (9.4% in 2017 versus 10.2% in 2016). Decreased mill throughput (150,700 tonnes in
2017 vs 185,000 tonnes in 2016) was a result of limited reserves and slower than expected underground development to access the
new areas. Average realized price for concentrate increased year over year ($1,227 per tonne in
2017 versus $953 per tonne in 2016) due to an increase in both lead and zinc prices. Gross profit
from mining operations was similar year on year due to lower throughput and higher payabilities offsetting each other.
Concentrate tonnes sold were similar year over year due to inventory remaining at the end of 2016 sold in 2017.
Major expenditures (capitalized and expensed) of $12.8 million included underground mine
development related to resource evaluation activities as well as to access new ore. This included development of the
hangingwall exploration drift, from which 6,000 metres of resource expansion drilling were completed, confirming the downdip
continuity of the orebody from the current resource. The exploration development and drilling programs will continue
through 2018, with 10,000 metres of drilling scheduled to continue testing downdip and along-strike extensions of the
orebody.
For 2018, Stratoni is expected to process 160,000 tonnes of ore at grades 7.2% lead, 8.7 % zinc and 175 grams per tonne
silver. Sustaining capital expenditure at Stratoni is expected to be $8 million and development capital expenditure is
expected to be $8 million for the year.
BRAZIL
Vila Nova
Vila Nova remained on care and maintenance during 2017. Two shipments were completed in the first and second quarters of 2017,
selling 44,734 tonnes of lump iron ore and 46,488 dry metric tonnes of sinter fines taking advantage of a short period of higher
prices or iron ore.
Development Projects and Exploration
GREECE
On September 14, 2017, Hellas Gold received formal notice from
the Greek Ministry of Finance and the Ministry of the Environment and Energy initiating Greek domestic arbitration
proceedings. The arbitration notice alleged that the Technical Study for the Madem Lakkos Metallurgical Plant for treating
Olympias and Skouries concentrates in the Stratoni Valley (known as Olympias Phase III), submitted in December 2014, is deficient and thereby is in violation of the Transfer Contract and the environmental terms of
the project. The arbitration proceedings are expected to conclude by April 6, 2018. While
arbitration proceedings are inherently uncertain, the Company is confident that the Technical Study is robust and consistent with
the Transfer Contract, the Business Plan and the approved environmental terms of the project.
Olympias
In 2017, Olympias had pre-commercial production of 18,472 ounces of gold. On December 31, 2017,
the Company achieved commercial production at Olympias Phase II. As a reminder, there is a minimum one month lag between
production and sale of concentrate, which affects revenue timing and overall cash operating costs.
As previously announced, in order to provide maximum operational flexibility for mine backfilling and tailings handling, the
Company is constructing a new paste backfill plant (part of the original Phase II scope) and installing an additional tailings
filter. The filter press is currently being commissioned and the paste plant is expected to be commissioned during the second
quarter 2018.
In 2018, Olympias is expected to mine and process 390,000 tonnes of ore at an average grade of 7.5 grams per tonne, producing
55,000-65,000 ounces of payable gold at operating costs of $550-650 per ounce. Sustaining capital
expenditure is expected to be $20 million and development capital expenditure is expected to be
$28 million and will include completion of the paste plant, installation of a second tailings
filter, work on the Kokkinolakas tailings management facility and further drilling. The Olympias mine also produces significant
amounts of lead-silver and zinc concentrates and, depending on metal prices, the Company may take advantage of the flexibility
inherent in this polymetallic orebody in order to optimize cash flow.
In 2018, the exploration drilling program at Olympias is expected to be 7,000 meters and will be focused on the eastern
zone.
Skouries
Capital expenditure at Skouries in 2017 totalled $73.2 million. Project development was slowed
considerably in the second half of 2017 due to continued permitting delays throughout the year. The Company announced its
intention to move the project into care and maintenance in November 2017 and the ramp-down to care
and maintenance is expected to be complete shortly.
Development capital expenditure at Skouries for 2018 is expected to be $20 million as the
project fully transitions to care and maintenance. Ongoing care and maintenance costs are estimated to be $3-5 million per year once fully ramped down.
An updated NI 43-101 compliant technical report is expected to be filed by the Company for the Skouries project on
March 29, 2018, the results of which are highlighted in the Technical Studies Press Release.
Economic highlights of the study include an after tax IRR of 21.2% and an NPV (5%) of $925 million,
using the Company's assumed long term metal prices of $1,300 per ounce of gold and $2.75 per pound of copper.
Perama Hill
Perama Hill remains on care and maintenance pending receipt of the necessary permits.
CANADA
Lamaque
During 2017, the Company completed the Integra acquisition and began work at its 100% wholly-owned Lamaque project.
During 2017, test mining extracted 47,750 tonnes of ore with an average head grade of 8.6 g/t gold, with approximately
35,400 tonnes processed at a nearby custom milling facility. Results from the first two batches (32,000 tonnes) with an
average grade of 7.35 g/t, which was in line with expectations and recoveries were slightly higher than anticipated at an average
95.4% for the toll treatment. In 2017 the company spent $35.8 million in development capital at
Lamaque.
Capital expenditures at Lamaque to reach commercial production are $122 million plus
$57 million of pre-commercial production costs, offset by $80 million
in pre commercial gold sales, for a net start-up capital of $99 million. The Company
expects to extract roughly 200,000 tonnes of ore grading 8.03 grams per tonne gold, containing approximately 40,000 ounces and
anticipates toll milling a portion of the ore and producing 25,000 to 35,000 ounces.
Since the July 2017 acquisition, over 44,000 metres of resource conversion and resource
expansion drilling have been completed and an additional 34,000 metres of exploration drilling is planned for 2018.
An NI 43-101 compliant technical report with respect to Lamaque is expected to be filed by the Company on March 29, 2018, the results of which are highlighted in the Technical Studies Press Release. A maiden
Reserve of 893,000 ounces was declared for the Triangle Zone, within Measured and Indicated Resources of 1.3 million ounces with
a further 1.3 million ounces of Inferred Resources. The technical report outlines an initial seven year mine life with production
averaging 117,000 ounces per year. Exploration for 2018 is budgeted at $7 million.
BRAZIL
Tocantinzinho
A total of $9.9 million was spent on the project in 2017 on detailed engineering for the
tailings dam, CIP tails pond, waste rock dump, basic engineering design, land agreement, administration and others. The
installation licences for the project site (mine, process plant and infrastructure), for the tailings structures and for the
project power line were received in 2017. The mining concession application is under review by the federal branch of the Mines
Ministry and the approval is expected in the second quarter of 2018.
Work planned for 2018 is limited to permitting support, site maintenance and security, finalizing land agreements for the site
and power line and environmental compensation programs. Consideration of a construction decision at Tocantinzinho has been
deferred until the mining concession is in place and a development project review is completed. Capital spending in 2018 is
expected to be $8 million.
ROMANIA
Certej
During 2017, a total of $15.4 million (capitalized and expensed) was spent on Certej, mainly on geotechnical and
metallurgical testing, site preparation and engineering studies. During 2018, the Company expects to spend
approximately $7 million at Certej, with a focus on continuing off site infrastructure projects and advancing
permitting.
Bolcana
The Bolcana project is a large copper gold porphyry system located approximately six kilometres west of the Company's Certej
epithermal gold-silver development project in Romania. The 2017 exploration program at Bolcana totalled over 23,000 metres
of drilling in 25 holes and tested an area measuring 1,200 metres by 900 metres, locally to a depth of more than 1,200
metres.
A further 20,000 metres of drilling is planned for 2018, which will complete drill hole coverage over the porphyry system to a
150 metre drill hole spacing.
2018 Outlook
In 2018 Eldorado expects to produce 290,000-330,000 ounces of gold, including pre-commercial ounces from Lamaque. Cash costs
are forecasted at $580-630 per ounce.
Corporate
Board and Senior Management Changes
During 2017, the following changes were made to the Board of Directors and to Senior Management:
- Dr. George Albino appointed as Board Chair, effective January 1, 2018
- George Burns appointed as President and CEO, and elected to the Board of Directors
- Paul Wright and Jonathan Rubenstein resigned as directors
- Reduction in the Board size to eight directors from 10, as well as reduced individual director and overall Board
compensation
- Ross Cory retired from the Board effective April 27, 2017 as
he did not stand for re-election at the Annual General Meeting
- Jason Cho promoted to Executive Vice President, Strategy and Corporate Development
The following changes were made to the Board Committees:
Compensation Committee
- Steve Reid appointed as Chair to replace Jonathan Rubenstein
- Dr. George Albino replaced Robert Gilmore
Sustainability Committee
- Michael Price appointed as Chair to replace Steve Reid
- Robert Gilmore replaced Dr. George Albino
No changes were made to the composition of the Audit Committee or the Corporate Governance and Nominating Committee.
Subsequent to year end, the following management changes also occurred:
- Dawn Moss, EVP Administration, retired on February 28,
2018
- Eduardo Moura, VP Special Advisor to the CEO, departed the Company as of February 28, 2018
- Timothy Garvin, EVP General Counsel, joined the Company on February
20, 2018
- Andor Lips, joined the Company as VP Government Relations, Europe on February, 19 2018
- Announcement that Fabiana Chubbs, Chief Financial Officer, will depart at the end of
April 2018
Dividend
Pending the results of the technical reports and potential subsequent capital requirements, the Company suspended cash payment
of its semi-annual dividend payment effective the first quarter of 2018.
Conference Call
A conference call to discuss the details of the Company's 2017 Fourth Quarter and Year End 2017 Results and Technical Reports
will be held by senior management on March 22, 2018 at 8:30 AM PT
(11:30 AM ET). The call will be webcast and can be accessed at Eldorado Gold's website:
www.eldoradogold.com
Conference Call Details
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Replay (available until April 6, 2018)
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Date:
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Thursday, March 22, 2018
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Toronto:
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416 849 0833
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Time:
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8:30 am PT (11:30 am ET)
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Toll Free:
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855 859 2056
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Dial in:
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647 427 7450
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Pass code:
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506 9276
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Toll free:
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888 231 8191
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About Eldorado Gold
Eldorado is a leading intermediate gold producer with mining, development and exploration operations
in Turkey, Greece, Romania, Serbia, Canada and Brazil. The Company's success to date is based
on a highly skilled and dedicated workforce, safe and responsible operations, a portfolio of high-quality assets, and long-term
partnerships with the communities where it operates. Eldorado's common shares trade on the Toronto Stock
Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).
Cautionary Note about Forward-looking Statements and Information
Certain of the statements made and information provided in this press release 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 release include, but are not limited to, statements or
information with respect to: our guidance and outlook, including expected production, projected cash cost, planned capital
and exploration expenditures for 2018; our expectation as to our future financial and operating performance, including future
cash flow, estimated cash costs, expected metallurgical recoveries, gold price outlook; and our strategy, plans and goals,
including our proposed exploration, development, construction, permitting and operating plans and priorities, 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, 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; 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 release.
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: geopolitical and economic climate
(global and local), risks related to mineral tenure and permits; gold and other commodity price volatility; recoveries of gold
and other metals; results of test work; revised guidance; 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; foreign country
operational risks; risks of sovereign investment; regulatory risks and liabilities including, regulatory environment and
restrictions, and environmental regulatory restrictions and liability; discrepancies between actual and estimated production,
mineral reserves and resources and metallurgical testing and recoveries; risks related to the impact of the sale of our Chinese
assets and the acquisition and integration of Integra on the Company's operations; additional funding requirements; currency
fluctuations; community and non-governmental organization actions; speculative nature of gold exploration; dilution; share price
volatility; 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 release, for a fuller understanding of the risks and uncertainties that affect the Company's business and
operations.
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 and you are referred to the full discussion of
the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada and the U.S.
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 press release was reviewed and approved
by Paul Skayman, FAusIMM, Chief Operating Officer for Eldorado Gold Corporation, and a "qualified
person" under NI 43-101.
Mineral resources which are not mineral reserves do not have demonstrated economic viability. With respect to
"indicated mineral resource" and "inferred mineral resource", there is a great amount of uncertainty as to their existence and a
great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of a "measured mineral
resource", "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category.
Cautionary Note to US Investors Concerning Estimates of Measured, Indicated and Inferred Resources
The terms "mineral resource", "measured mineral resource", "indicated mineral resource", "inferred mineral resource" used
herein are Canadian mining terms used in accordance with NI 43-101 under the guidelines set out in the Canadian Institute of
Mining and Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council,
as may be amended from time to time. These definitions differ from the definitions in the United
States Securities & Exchange Commission ("SEC") Industry Guide 7. In the United
States, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or
produced at the time the mineral reserve determination is made.
While the terms "mineral resource", "measured mineral resource," "indicated mineral resource", and "inferred mineral
resource" are recognized and required by Canadian regulations, they are not defined terms under standards in the United States and normally are not permitted to be used in reports and registration statements filed
with the SEC. As such, information contained herein concerning descriptions of mineralization and resources under Canadian
standards may not be comparable to similar information made public by U.S. companies in SEC filings.
Accordingly, information herein containing descriptions of our mineral deposits may not be comparable to similar
information made public by US companies subject to the reporting and disclosure requirements under US federal securities laws and
the rules and regulations thereunder.
Q4 and Fully Year 2017 Gold Production Highlights (in US$)
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|
Fourth
Quarter
2017
|
Fourth
Quarter
2016
|
2017
|
2016
|
2018 Outlook5
|
Gold Production
|
|
|
|
|
|
|
Ounces Sold
|
67,367
|
84,682
|
264,080
|
311,028
|
n/a
|
|
Ounces Produced1
|
83,886
|
82,804
|
292,971
|
312,299
|
290,000 to 330,000
|
|
Cash Operating Cost ($/oz)2,4
|
577
|
472
|
509
|
487
|
580 to 630
|
|
Total Cash Cost ($/oz)3,4
|
603
|
482
|
534
|
502
|
n/a
|
|
Realized Price ($/oz - sold)
|
1,280
|
1,204
|
1,262
|
1,249
|
n/a
|
Kişladağ Mine, Turkey
|
|
|
|
|
|
|
Ounces Sold
|
44,317
|
59,416
|
171,505
|
211,284
|
n/a
|
|
Ounces Produced
|
44,356
|
59,591
|
171,358
|
211,161
|
120,000 to 130,000
|
|
Tonnes to Pad
|
3,332,990
|
3,916,917
|
13,061,861
|
16,565,254
|
n/a
|
|
Grade (grams / tonne)
|
1.02
|
0.74
|
1.03
|
0.80
|
n/a
|
|
Cash Operating Cost ($/oz)4
|
604
|
456
|
500
|
474
|
600 to 700
|
|
Total Cash Cost ($/oz)3,4
|
626
|
465
|
522
|
488
|
n/a
|
Efemçukuru Mine, Turkey
|
|
|
|
|
|
|
Ounces Sold
|
23,050
|
25,266
|
92,575
|
99,744
|
n/a
|
|
Ounces Produced
|
25,463
|
23,213
|
96,080
|
98,364
|
90,000 to 100,000
|
|
Tonnes Milled
|
119,135
|
123,815
|
481,649
|
476,528
|
n/a
|
|
Grade (grams / tonne)
|
7.46
|
7.39
|
7.01
|
7.4
|
n/a
|
|
Cash Operating Cost ($/oz)4
|
525
|
512
|
524
|
514
|
530 to 570
|
|
Total Cash Cost ($/oz)3,4
|
559
|
522
|
556
|
530
|
n/a
|
Olympias, Greece
|
|
|
|
|
|
|
Ounces Sold
|
-
|
-
|
-
|
-
|
n/a
|
|
Ounces Produced1
|
7,174
|
-
|
18,472
|
2,774
|
55,000 to 65,000
|
|
Tonnes Milled
|
-
|
-
|
-
|
87,350
|
n/a
|
|
Grade (grams / tonne)
|
-
|
-
|
-
|
2.47
|
n/a
|
|
Cash Operating Cost ($/oz)4
|
-
|
-
|
-
|
-
|
550 to 650
|
|
Total Cash Cost ($/oz)3,4
|
-
|
-
|
-
|
-
|
n/a
|
Lamaque, Canada
|
|
|
|
|
|
|
Ounces Sold
|
-
|
-
|
-
|
-
|
n/a
|
|
Ounces Produced1
|
7,061
|
-
|
7,061
|
-
|
25,000 to 35,000
|
|
Tonnes Milled
|
35,411
|
-
|
35,411
|
-
|
n/a
|
|
Grade (grams / tonne)
|
7.69
|
-
|
7.69
|
-
|
n/a
|
|
Cash Operating Cost ($/oz) 4
|
-
|
-
|
-
|
-
|
n/a
|
|
Total Cash Cost ($/oz) 3,4
|
-
|
-
|
-
|
-
|
n/a
|
|
|
1
|
Ounces produced includes pre-commercial production in 2017 at Olympias and
Lamaque and production from tailings retreatment in 2016 at Olympias.
|
2
|
Cost figures calculated in accordance with the Gold Institute
Standard.
|
3
|
Cash operating costs, plus royalties and the cost of off-site
administration.
|
4
|
Cash operating costs and total cash costs are non-IFRS measures.
Please see our MD&A for an explanation and discussion of these.
|
5
|
Outlook assumes the following metal prices: $1,250 per ounce of gold, $17
per ounce of silver.
|
Eldorado Gold Mineral Reserves, as of December 31, 2017
|
|
|
|
Project
|
Proven Mineral Reserves
|
Probable Mineral Reserves
|
Total Proven and Probable
|
Gold
|
Tonnes
|
Au
|
In-situ Au
|
Tonnes
|
Au
|
In-situ Au
|
Tonnes
|
Au
|
In-situ Au
|
|
(x1000)
|
g/t
|
ounces
(x1000)
|
(x1000)
|
g/t
|
ounces
(x1000)
|
(x1000)
|
g/t
|
ounces
(x1000)
|
Certej
|
22,788
|
1.93
|
1,414
|
21,500
|
1.43
|
988
|
44,288
|
1.69
|
2,402
|
Efemcukuru
|
2,032
|
7.12
|
465
|
2,020
|
6.34
|
412
|
4,052
|
6.73
|
877
|
Kisladag
|
113,253
|
0.83
|
3,032
|
5,306
|
0.60
|
102
|
118,560
|
0.82
|
3,134
|
Lamaque
|
111
|
8.78
|
31
|
3,698
|
7.25
|
862
|
3,809
|
7.30
|
893
|
Olympias
|
3,610
|
7.49
|
870
|
11,122
|
7.21
|
2,577
|
14,732
|
7.28
|
3,447
|
Perama
|
2,477
|
4.44
|
354
|
7,220
|
2.68
|
621
|
9,697
|
3.13
|
975
|
Skouries
|
75,804
|
0.87
|
2,132
|
81,862
|
0.62
|
1,641
|
157,666
|
0.74
|
3,773
|
Tocantinzinho
|
16,699
|
1.53
|
821
|
22,914
|
1.36
|
1,003
|
39,613
|
1.43
|
1,824
|
|
|
|
|
|
|
|
|
|
|
TOTAL GOLD
|
236,774
|
1.20
|
9,119
|
155,642
|
1.64
|
8,206
|
392,417
|
1.37
|
17,325
|
Silver
|
Tonnes
|
Ag
|
In-situ Ag
|
Tonnes
|
Ag
|
In-situ Ag
|
Tonnes
|
Ag
|
In-situ Ag
|
|
(x1000)
|
g/t
|
ounces
(x1000)
|
(x1000)
|
g/t
|
ounces
(x1000)
|
(x1000)
|
g/t
|
ounces
(x1000)
|
Certej
|
22,788
|
10
|
7,004
|
21,500
|
12
|
8,551
|
44,288
|
11
|
15,555
|
Olympias
|
3,610
|
105
|
12,165
|
11,122
|
120
|
42,756
|
14,732
|
116
|
54,921
|
Perama
|
2,477
|
3
|
254
|
7,220
|
4
|
897
|
9,697
|
4
|
1,151
|
Stratoni
|
0
|
0
|
0
|
497
|
178
|
2,844
|
497
|
178
|
2,844
|
TOTAL SILVER
|
28,875
|
21
|
19,423
|
40,339
|
42
|
55,048
|
69,214
|
33
|
74,471
|
Copper
|
Tonnes
|
Cu
|
In-situ Cu
|
Tonnes
|
Cu
|
In-situ Cu
|
Tonnes
|
Cu
|
In-situ Cu
|
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
Skouries
|
75,804
|
0.52
|
393
|
81,862
|
0.47
|
386
|
157,666
|
0.49
|
779
|
TOTAL COPPER
|
75,804
|
0.52
|
393
|
81,862
|
0.47
|
386
|
157,666
|
0.49
|
779
|
Lead
|
Tonnes
|
Pb
|
In-situ Pb
|
Tonnes
|
Pb
|
In-situ Pb
|
Tonnes
|
Pb
|
In-situ Pb
|
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
Olympias
|
3,610
|
3.5
|
126
|
11,122
|
4.0
|
442
|
14,732
|
3.9
|
568
|
Stratoni
|
0
|
0.0
|
0
|
497
|
7.0
|
35
|
497
|
7.0
|
35
|
TOTAL LEAD
|
3,610
|
3.5
|
126
|
11,619
|
4.1
|
477
|
15,229
|
4.0
|
603
|
Zinc
|
Tonnes
|
Zn
|
In-situ Zn
|
Tonnes
|
Zn
|
In-situ Zn
|
Tonnes
|
Zn
|
In-situ Zn
|
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
Olympias
|
3,610
|
4.8
|
173
|
11,122
|
5.5
|
610
|
14,732
|
5.3
|
783
|
Stratoni
|
0
|
0.0
|
0
|
497
|
8.4
|
42
|
497
|
8.4
|
42
|
TOTAL ZINC
|
3,610
|
4.8
|
173
|
11,619
|
5.6
|
652
|
15,229
|
5.4
|
825
|
Eldorado Gold Mineral Resources, as of December 31, 2017
|
|
|
|
|
Project
|
Measured Resources
|
Indicated Resources
|
Total Measured and Indicated
|
Inferred Resources
|
Gold
|
Tonnes
|
Au
|
In-situ Au
|
Tonnes
|
Au
|
In-situ Au
|
Tonnes
|
Au
|
In-situ Au
|
Tonnes
|
Au
|
In-situ Au
|
|
(x1000)
|
g/t
|
ounces
(x1000)
|
(x1000)
|
g/t
|
ounces
(x1000)
|
(x1000)
|
g/t
|
ounces
(x1000)
|
(x1000)
|
g/t
|
ounces
(x1000)
|
Certej
|
27,518
|
1.80
|
1,592
|
62,463
|
1.23
|
2,472
|
89,981
|
1.40
|
4,064
|
12,228
|
0.96
|
376
|
Efemcukuru
|
2,668
|
8.04
|
689
|
2,628
|
7.10
|
599
|
5,296
|
7.57
|
1,288
|
3,580
|
6.20
|
714
|
Kisladag
|
367,425
|
0.64
|
7,596
|
92,954
|
0.47
|
1,411
|
460,379
|
0.61
|
9,007
|
290,466
|
0.45
|
4,165
|
Lamaque
|
132
|
10.40
|
44
|
4,565
|
8.39
|
1,231
|
4,697
|
8.45
|
1,275
|
5,368
|
7.29
|
1,258
|
Olympias
|
3,627
|
9.39
|
1,096
|
10,804
|
8.57
|
2,978
|
14,431
|
8.78
|
4,074
|
3,675
|
8.12
|
960
|
Perama
|
3,064
|
4.30
|
424
|
9,375
|
3.18
|
958
|
12,439
|
3.46
|
1,382
|
8,766
|
1.96
|
554
|
Piavitsa
|
|
|
|
0
|
0.00
|
0
|
0
|
0.00
|
0
|
10,542
|
5.70
|
1,932
|
Sapes
|
|
|
|
2,423
|
6.08
|
474
|
2,423
|
6.08
|
474
|
1,011
|
10.65
|
346
|
Skouries
|
100,018
|
0.79
|
2,534
|
189,263
|
0.47
|
2,867
|
289,281
|
0.58
|
5,401
|
170,136
|
0.31
|
1,680
|
Tocantinzinho
|
17,530
|
1.51
|
851
|
31,202
|
1.26
|
1,264
|
48,732
|
1.35
|
2,115
|
2,395
|
0.90
|
69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL GOLD
|
521,982
|
0.88
|
14,826
|
405,677
|
1.09
|
14,254
|
927,659
|
0.98
|
29,080
|
508,167
|
0.74
|
12,054
|
Silver
|
Tonnes
|
Ag
|
In-situ Ag
|
Tonnes
|
Ag
|
In-situ Ag
|
Tonnes
|
Ag
|
In-situ Ag
|
Tonnes
|
Ag
|
In-situ Ag
|
|
(x1000)
|
g/t
|
ounces
(x1000)
|
(x1000)
|
g/t
|
ounces
(x1000)
|
(x1000)
|
g/t
|
ounces
(x1000)
|
(x1000)
|
g/t
|
ounces
(x1000)
|
Certej
|
27,518
|
9
|
7,768
|
62,463
|
9
|
17,833
|
89,981
|
9
|
25,601
|
12,228
|
3
|
1,364
|
Olympias
|
3,627
|
131
|
15,314
|
10,804
|
141
|
48,855
|
14,431
|
138
|
64,169
|
3,675
|
112
|
13,142
|
Perama
|
3,064
|
3
|
335
|
9,375
|
9
|
2,833
|
12,439
|
8
|
3,168
|
8,766
|
7
|
1,860
|
Piavitsa
|
|
|
|
0
|
0
|
0
|
0
|
0
|
0
|
10,542
|
57
|
19,156
|
Stratoni
|
0
|
0
|
0
|
633
|
205
|
4,172
|
633
|
205
|
4,172
|
246
|
145
|
1,147
|
TOTAL SILVER
|
34,209
|
21
|
23,417
|
83,275
|
28
|
73,693
|
117,484
|
26
|
97,110
|
35,457
|
32
|
36,669
|
Copper
|
Tonnes
|
Cu
|
In-situ Cu
|
Tonnes
|
Cu
|
In-situ Cu
|
Tonnes
|
Cu
|
In-situ Cu
|
Tonnes
|
Cu
|
In-situ Cu
|
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
Skouries
|
100,018
|
0.48
|
484
|
189,263
|
0.40
|
758
|
289,281
|
0.43
|
1,242
|
170,136
|
0.34
|
578
|
TOTAL COPPER
|
100,018
|
0.48
|
484
|
189,263
|
0.40
|
758
|
289,281
|
0.43
|
1,242
|
170,136
|
0.34
|
578
|
Lead
|
Tonnes
|
Pb
|
In-situ Pb
|
Tonnes
|
Pb
|
In-situ Pb
|
Tonnes
|
Pb
|
In-situ Pb
|
Tonnes
|
Pb
|
In-situ Pb
|
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
Olympias
|
3,627
|
4.4
|
157
|
10,804
|
4.7
|
509
|
14,431
|
4.6
|
666
|
3,675
|
3.4
|
125
|
Stratoni
|
0
|
0.0
|
0
|
633
|
8.0
|
50
|
633
|
8.0
|
50
|
246
|
5.4
|
13
|
TOTAL LEAD
|
3,627
|
4.3
|
157
|
11,437
|
4.9
|
559
|
15,064
|
4.8
|
716
|
3,921
|
3.5
|
138
|
Zinc
|
Tonnes
|
Zn
|
In-situ Zn
|
Tonnes
|
Zn
|
In-situ Zn
|
Tonnes
|
Zn
|
In-situ Zn
|
Tonnes
|
Zn
|
In-situ Zn
|
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
(x1000)
|
%
|
tonnes
(x1000)
|
Olympias
|
3,627
|
5.9
|
213
|
10,804
|
6.7
|
725
|
14,431
|
6.5
|
938
|
3,675
|
3.9
|
142
|
Stratoni
|
0
|
0.0
|
0
|
633
|
9.3
|
59
|
633
|
9.3
|
59
|
246
|
8.4
|
21
|
TOTAL ZINC
|
3,627
|
5.9
|
213
|
11,437
|
6.9
|
784
|
15,064
|
6.6
|
997
|
3,921
|
4.2
|
163
|
Notes on Mineral Resources and Reserves
- Mineral reserves and mineral resources are as of December 31, 2017.
- Mineral reserves are included in the mineral resources.
- The mineral reserves and mineral resources are disclosed on a total project basis.
Mineral Reserve Notes
1. Long Term Metal Price Assumptions
- Gold price: $1,200/oz
- Silver price: $16.00/oz (for Stratoni it was $8.14/oz Ag as
governed by a streaming agreement with Silver Wheaton (Caymans) Ltd.)
- Copper price: $2.50/lb
- Lead price: $1,800/t
- Zinc price: $2,000/t
Due to a limited mine life for Stratoni (3 years) current Pb and Zn prices were used for its mineral reserves
($2,400/t Pb and $2,712/t Zn)
2. Skouries
The open pit design is based on permit limits, not metal prices, therefore insensitive to a falling or rising metal price
environment. The underground designs were based on a Cu price of $3.00/lb. The change
in the Cu price to $2.50/lb has no impact to the underground portion of the mineral reserves
developed at that time given that the margin on the lowest value ore has been demonstrated to remain positive against the
backdrop of updated operating costs. Nevertheless, it is recognized that at the lower Cu price approximately 17 Mt of the mineral
reserves have marginal value, and a further decrease in metal prices would render these uneconomic. The impact would not be felt
until the latter part of the project's long minelife as the lower grade resources are located on the periphery of the orebody and
at depth. Furthermore, the loss of these resources would not change the design philosophy or placement of long-term
underground infrastructure, the result would be simply a shorter minelife.
3. Cut-off Grades
Kisladag: $12.25 NSR ; Efemcukuru: 3.08 g/t Au; Lamaque: 3.50 g/t;
Perama: 0.8 g/t Au; Tocantinzinho: 0.42 g/t Au; Skouries: $12.00 NSR (open
pit), $33.33 NSR (underground); Olympias: $130 NSR;
Stratoni: 14.3% Zn Equivalent grade (=Zn%+Pb%*1.1+Ag%*114); Certej: 0.90 g/t Au Equivalent grade
(=Au(g/t)+Ag(g/t)*0.0121).
4. Qualified Persons
- John Nilsson, P.Eng., of Nilsson Mine Services, is responsible for the Kisladag, Skouries
(open pit), Certej and Tocantinzinho mineral reserves;
- Doug Jones (Registered Member - SME), consultant for the Company, is responsible for the
Efemcukuru, Olympias, Stratoni and Perama mineral reserves;
- Colm Keogh, P.Eng, Manager, Underground Mining for the Company, is responsible for the
Skouries (underground) and Lamaque mineral reserves.
Mineral Resource Notes
1. Cut-off Grades
Kisladag: 0.30 g/t Au for M+I, 0.35 g/t for Inferred; Efemcukuru: 2.5 g/t Au; Lamaque: 2.5 g/t;
Perama: 0.5 g/t Au; Tocantinzinho: 0.3 g/t Au; Certej: 0.7 g/t Au; Skouries: 0.20 g/t Au Equivalent grade
(open pit), 0.60 g/t Au Equivalent grade (underground) (=Au g/t + 1.6*Cu%); Olympias: $50 NSR; Piavitsa: 3.5 g/t Au; Sapes: 2.5 g/t Au (underground), 1.0 g/t Au (open pit).
Resource cut-off for Stratoni are geological based due to the sharpness of the mineralized contacts and the high grade nature of
the mineralization.
2. Qualified Persons
- Stephen Juras, Ph.D., P.Geo., Director, Technical Services for the Company, is responsible
for all of the Company's mineral resources except for those associated with Efemcukuru and Sapes.
- Ertan Uludag, P.Geo, Resource Geologist for the Company, is responsible for the Efemcukuru
mineral resources.
- Peter Lewis, Ph.D., P.Geo., Vice President, Exploration for the Company, is responsible for
the Sapes mineral resources.
Eldorado Gold Corporation
Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars)
|
Note
|
December 31, 2017
|
December 31, 2016
|
ASSETS
|
|
$
|
$
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
6
|
479,501
|
883,171
|
|
Term deposits
|
|
5,508
|
5,292
|
|
Restricted cash
|
|
310
|
240
|
|
Marketable securities
|
|
5,010
|
28,327
|
|
Accounts receivable and other
|
7
|
78,344
|
54,315
|
|
Inventories
|
8
|
168,844
|
120,830
|
|
|
737,517
|
1,092,175
|
Restricted cash and other assets
|
10
|
22,902
|
48,297
|
Defined benefit pension plan
|
16
|
9,919
|
11,620
|
Property, plant and equipment
|
11
|
4,227,397
|
3,645,827
|
Goodwill
|
12
|
92,591
|
-
|
|
|
5,090,326
|
4,797,919
|
LIABILITIES & EQUITY
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts payable and accrued liabilities
|
13
|
110,651
|
90,705
|
|
Current portion of asset retirement obligation
|
15
|
3,489
|
-
|
|
|
114,140
|
90,705
|
Debt
|
14
|
593,783
|
591,589
|
Defined benefit pension plan
|
16
|
13,599
|
10,882
|
Asset retirement obligations
|
15
|
96,195
|
89,778
|
Deferred income tax liabilities
|
17
|
549,127
|
443,501
|
|
|
1,366,844
|
1,226,455
|
Equity
|
|
|
|
Share capital
|
18
|
3,007,924
|
2,819,101
|
Treasury stock
|
|
(11,056)
|
(7,794)
|
Contributed surplus
|
|
2,616,593
|
2,606,567
|
Accumulated other comprehensive loss
|
|
(21,350)
|
(7,172)
|
Deficit
|
|
(1,948,569)
|
(1,928,024)
|
Total equity attributable to shareholders of the Company
|
|
3,643,542
|
3,482,678
|
Attributable to non-controlling interests
|
|
79,940
|
88,786
|
|
|
3,723,482
|
3,571,464
|
|
|
5,090,326
|
4,797,919
|
Approved on behalf of the Board of Directors
(Signed) John Webster
|
Director
|
(Signed) George Burns
|
Director
|
Please see the Consolidated Financial Statements dated December 31, 2017 for notes to the
accounts.
Eldorado Gold Corporation
Consolidated Income Statements
(Expressed in thousands of U.S. dollars except per share amounts)
For the year ended December 31
|
Note
|
2017
|
2016
|
|
|
$
|
$
|
Revenue
|
|
|
|
|
Metal sales
|
|
391,406
|
432,727
|
|
|
|
|
Cost of sales
|
|
|
|
|
Production costs
|
26
|
192,740
|
194,669
|
|
Inventory write-down
|
8
|
444
|
-
|
|
Depreciation and
amortization
|
|
72,130
|
74,887
|
|
|
265,314
|
269,556
|
Gross profit
|
|
126,092
|
163,171
|
|
|
|
|
Exploration expenses
|
|
38,261
|
18,773
|
Mine standby costs
|
|
4,886
|
16,140
|
Other operating items
|
|
3,658
|
-
|
General and administrative expenses
|
|
54,574
|
37,851
|
Acquisition costs
|
5a
|
4,270
|
-
|
Defined benefit pension plan expense
|
16
|
3,451
|
5,602
|
Share based payments
|
19
|
11,218
|
10,559
|
Write-down of assets
|
11
|
46,697
|
4,529
|
Foreign exchange loss (gain)
|
|
(2,382)
|
2,708
|
Operating profit (loss)
|
|
(38,541)
|
67,009
|
|
|
|
|
Loss on disposal of assets
|
|
(462)
|
(2,121)
|
Gain (loss) on marketable securities and other investments
|
|
27,425
|
(4,881)
|
Other income
|
|
17,575
|
243
|
Asset retirement obligation accretion
|
15
|
(2,006)
|
(1,795)
|
Interest and financing costs
|
|
(3,199)
|
(9,757)
|
|
|
|
|
Profit from continuing operations before income tax
|
|
792
|
48,698
|
Income tax expense
|
17
|
19,383
|
56,205
|
Loss from continuing operations
|
|
(18,591)
|
(7,507)
|
Loss from discontinued operations
|
5b
|
(2,797)
|
(339,369)
|
Loss for the year
|
|
(21,388)
|
(346,876)
|
|
|
|
|
Attributable to:
|
|
|
|
Shareholders of the Company
|
|
(9,935)
|
(344,151)
|
Non-controlling interests
|
|
(11,453)
|
(2,725)
|
Loss for the year
|
|
(21,388)
|
(346,876)
|
|
|
|
|
Loss attributable to shareholders of the Company
|
|
|
|
Continuing operations
|
|
(7,138)
|
(2,683)
|
Discontinued operations
|
|
(2,797)
|
(341,468)
|
|
|
(9,935)
|
(344,151)
|
|
|
|
|
Weighted average number of shares outstanding (thousands)
|
27
|
|
|
Basic
|
|
753,565
|
716,587
|
Diluted
|
|
753,565
|
716,593
|
|
|
|
|
Loss per share attributable to shareholders
|
|
|
|
of the Company:
|
|
|
|
Basic loss per share
|
|
(0.01)
|
(0.48)
|
Diluted loss per share
|
|
(0.01)
|
(0.48)
|
|
|
|
|
Loss per share attributable to shareholders
|
|
|
|
of the Company - continuing operations:
|
|
|
|
Basic loss per share
|
|
(0.01)
|
(0.00)
|
Diluted loss per share
|
|
(0.01)
|
(0.00)
|
Please see the Consolidated Financial Statements dated December 31, 2017 for notes to the
accounts.
Eldorado Gold Corporation
Consolidated Statements of Comprehensive Income
(Expressed in thousands of U.S. dollars)
For the year ended December 31
|
Note
|
2017
|
2016
|
|
|
$
|
$
|
|
|
|
|
Loss for the year
|
|
(21,388)
|
(346,876)
|
Other comprehensive income (loss):
|
|
|
|
Change in fair value of available-for-sale financial assets
|
|
15,878
|
11,115
|
Income tax on change in fair value of available-for-sale financial
assets
|
|
(2,595)
|
(1,428)
|
Reversal of unrealized gains on available-for-sale investments
on
|
|
|
|
|
acquistion of Integra, net of
taxes
|
|
(24,340)
|
-
|
Transfer of realized loss on disposal of availabe-for-sale financial
assets
|
|
-
|
4,901
|
Actuarial losses on defined benefit pension plans
|
16
|
(3,121)
|
(1,188)
|
Total other comprehensive income (loss) for the year
|
|
(14,178)
|
13,400
|
Total comprehensive loss for the year
|
|
(35,566)
|
(333,476)
|
|
|
|
|
Attributable to:
|
|
|
|
Shareholders of the Company
|
|
(24,113)
|
(330,751)
|
Non-controlling interests
|
|
(11,453)
|
(2,725)
|
|
|
(35,566)
|
(333,476)
|
Please see the Consolidated Financial Statements dated December 31, 2017 for notes to the
accounts.
Eldorado Gold Corporation
Consolidated Statements of Cash Flows
(Expressed in thousands of U.S. dollars)
For the year ended December 31
|
Note
|
2017
|
2016
|
|
|
$
|
$
|
Cash flows generated from (used in):
|
|
|
|
Operating activities
|
|
|
|
Loss for the year from continuing operations
|
|
(18,591)
|
(7,507)
|
Items not affecting cash:
|
|
|
|
Asset retirement obligation accretion
|
|
2,006
|
1,795
|
Depreciation and amortization
|
|
72,130
|
74,887
|
Unrealized foreign exchange loss (gain)
|
|
(471)
|
1,191
|
Deferred income tax expense (recovery)
|
|
(19,849)
|
9,039
|
Loss on disposal of assets
|
|
462
|
2,121
|
Write-down of assets
|
11
|
46,697
|
4,529
|
(Gain) loss on marketable securities and other investments
|
|
(27,425)
|
4,881
|
Share based payments
|
|
11,218
|
10,559
|
Defined benefit pension plan expense
|
|
3,451
|
5,602
|
|
|
69,628
|
107,097
|
Property reclamation payments
|
|
(3,097)
|
(2,662)
|
Changes in non-cash working capital
|
20
|
(35,755)
|
32,295
|
Net cash provided by operating activities of continuing
operations
|
|
30,776
|
136,730
|
Net cash used by operating activities of discontinued
operations
|
|
(2,797)
|
(23,067)
|
|
|
|
|
Investing activities
|
|
|
|
Net cash paid on acquisition of subsidiary
|
5a
|
(121,664)
|
(603)
|
Purchase of property, plant and equipment
|
|
(345,883)
|
(297,667)
|
Proceeds from the sale of property, plant and equipment
|
|
252
|
4,916
|
Proceeds from sale of mining interest, net of transaction costs
|
|
-
|
792,511
|
Proceeds on pre-commercial production sales and tailings
retreatment
|
|
38,200
|
3,708
|
Purchase of marketable securities
|
|
-
|
(2,526)
|
Proceeds from the sale of marketable securities
|
|
-
|
3,665
|
Value added taxes related to mineral property expenditures,
net
|
|
22,804
|
-
|
Investment in term deposits
|
|
(216)
|
(910)
|
Decrease (increase) in restricted cash
|
|
(9,817)
|
9
|
Net cash provided (used) by investing activities of continuing
operations
|
|
(416,324)
|
503,103
|
Net cash used by investing activities of discontinued
operations
|
|
-
|
(21,784)
|
|
|
|
|
Financing activities
|
|
|
|
Issuance of common shares for cash
|
|
586
|
-
|
Dividend paid to shareholders
|
|
(10,610)
|
-
|
Purchase of treasury stock
|
|
(5,301)
|
-
|
Long-term and bank debt proceeds
|
|
-
|
70,000
|
Long-term and bank debt repayments
|
|
-
|
(70,000)
|
Net cash used by financing activities of continuing
operations
|
|
(15,325)
|
-
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
(403,670)
|
594,982
|
Cash and cash equivalents - beginning of year
|
|
883,171
|
288,189
|
Cash and cash equivalents - end of year
|
|
479,501
|
883,171
|
Please see the Consolidated Financial Statements dated December 31, 2017 for notes to the
accounts.
Eldorado Gold Corporation
Consolidated Statements of Changes in Equity
(Expressed in thousands of U.S. dollars)
For the year ended December 31,
|
Note
|
2017
|
2016
|
|
|
$
|
$
|
Share capital
|
|
|
|
Balance beginning of year
|
|
2,819,101
|
5,319,101
|
|
Shares issued upon exercise of share options, for cash
|
|
586
|
-
|
|
Transfer of contributed surplus on exercise of options
|
|
176
|
-
|
|
Shares issued on acquistion of Integra Gold Corp.
|
5a
|
188,061
|
-
|
|
Capital reduction
|
|
-
|
(2,500,000)
|
Balance end of year
|
|
3,007,924
|
2,819,101
|
|
|
|
|
Treasury stock
|
|
|
|
Balance beginning of year
|
|
(7,794)
|
(10,211)
|
|
Purchase of treasury stock
|
|
(5,301)
|
-
|
|
Shares redeemed upon exercise of restricted share units
|
|
2,039
|
2,417
|
Balance end of year
|
|
(11,056)
|
(7,794)
|
|
|
|
|
Contributed surplus
|
|
|
|
Balance beginning of year
|
|
2,606,567
|
47,236
|
|
Share based payments
|
|
12,241
|
10,264
|
|
Shares redeemed upon exercise of restricted share units
|
|
(2,039)
|
(2,417)
|
|
Recognition of other non-current liability and related costs
|
|
-
|
(1,416)
|
|
Reversal of other current liability and related costs
|
|
-
|
52,900
|
|
Transfer to share capital on exercise of options
|
|
(176)
|
-
|
|
Capital reduction
|
|
-
|
2,500,000
|
Balance end of year
|
|
2,616,593
|
2,606,567
|
|
|
|
|
Accumulated other comprehensive loss
|
|
|
|
Balance beginning of year
|
|
(7,172)
|
(20,572)
|
|
Other comprehensive loss for the year
|
|
(14,178)
|
13,400
|
Balance end of year
|
|
(21,350)
|
(7,172)
|
|
|
|
|
Deficit
|
|
|
|
Balance beginning of year
|
|
(1,928,024)
|
(1,583,873)
|
|
Dividends paid
|
|
(10,610)
|
-
|
|
Loss attributable to shareholders of the Company
|
|
(9,935)
|
(344,151)
|
Balance end of year
|
|
(1,948,569)
|
(1,928,024)
|
Total equity attributable to shareholders of the Company
|
|
3,643,542
|
3,482,678
|
|
|
|
|
Non-controlling interests
|
|
|
|
Balance beginning of year
|
|
88,786
|
169,755
|
|
Loss attributable to non-controlling interests
|
|
(11,453)
|
(2,725)
|
|
Increase during the period
|
|
2,607
|
3,257
|
|
Decrease due to sale of China Business and others
|
|
-
|
(81,501)
|
Balance end of year
|
|
79,940
|
88,786
|
|
|
|
|
Total equity
|
|
3,723,482
|
3,571,464
|
Please see the Consolidated Financial Statements dated December 31, 2017 for notes to the
accounts.
SOURCE Eldorado Gold Corporation