Eldorado Gold Reports 2018 Third Quarter Financial and Operating Results Including Positive Decision to Advance Kışladağ Mill
In the news release, Eldorado Gold Reports 2018 Third Quarter Financial and Operating Results Including Positive Decision to
Eldorado Gold Reports 2018 Third Quarter Financial and Operating Results Including Positive Decision to Advance Kisladag Mill
TSX: ELD NYSE: EGO
Highlights from the Quarter and Subsequent Period1
- Board approval to advance the
Mill Project at Kisladag: The feasibility study was completed and onOctober 25 th the Board of Directors approved advancement of the mill project.
Highlights of the project include: - Estimated capital investment of
$520 million (including$384 million for the mill,$75 million for pre-stripping, and$61 million in contingency and growth allowance). - Estimated after-tax project net present value (NPV) of
$392 million at a 5% discount rate, after-tax internal rate of return (IRR) of 20.4% and payback period of 3.9 years, all at an assumed gold price of$1,300 . - Proven and Probable reserves materially the same as outlined in the National Instrument 43-101 ("NI 43-101") Pre-Feasibility Study filed in
March 2018 , of 3.0 million ounces at 0.81 g/t Au, accounting for depletion over the first four months of 2018, support a nine year mine life with average annual production of 270,000 ounces of gold at an all in sustaining cost ("AISC") of$793 per ounce. - Production ahead of plan and 2018 guidance revised higher: Quarterly gold production of 84,783 ounces, including 13,430 ounces from Lamaque pre-commercial production (Q3 2017: 70,053).
- 2018 guidance further increased to 345,000-350,000 ounces. Cash operating costs are forecast at
$600 - 650 per ounce sold. - Guidance for Kisladag increased to 160,000-170,000 ounces, at a cash operating cost of
$650 - 700 per ounce sold, including$300 per ounce sold of non-cash inventory changes. - Guidance for Olympias reduced to 45,000-50,000 ounces, at a cash operating cost of
$600 - 700 per ounce sold. - Steady revenues from continuing operations: Total revenue from continuing operations during the third quarter was
$81.1 million (Q3 2017:$95.4 million ). Gold revenue from continuing operations was$76.0 million (Q3 2017:$84.4 million ) on sales of 64,589 ounces of gold at an average realized gold price of$1,177 per ounce (Q3 2017: 65,439 ounces at$1,290 per ounce). - Continued strong financial liquidity: At quarter-end, the Company reported total liquidity of
$635 million , consisting of$385 million in cash, cash equivalents and term deposits, and$250 million in undrawn lines of credit. - Positive quarterly cash flow: Net cash provided by operating activities of continuing operations was
$23.2 million in the third quarter of 2018 (Q3 2017:$7.0 million net cash used by operating activities of continuing operations). - Key permitting milestones achieved: The Certificate of Authorization ("CofA") for the operation of the
Sigma Mill at Lamaque was received during the quarter. - Updated asset profile: As a result of the completion of the feasibility study and the Board approval to advance the
Kisladag Mill Project , a review of the useful life of the Kisladag heap leach assets resulted in an impairment charge of$117.6 million ($94.1 million net of deferred income tax recovery) recognized during the third quarter. - Net Loss attributable to shareholders: In the third quarter of 2018, net loss attributable to shareholders of the Company from continuing operations was
$128.0 million ($0.16 per share) compared to a loss attributable to shareholders of the Company from continuing operations of$4.2 million ($0.01 per share) in the third quarter of 2017. Adjusted net loss in the third quarter of 2018 was$21.9 million , or ($0.03 per share) (Q3 2017: Adjusted net earnings of$1.3 million , or$0.00 per share), primarily as result of excluding the impact of the Kisladag heap leach asset impairment noted above, in addition to other non-cash charges related to unrealized losses on deferred tax assets as a result of continuing currency devaluation inTurkey . - The Company is transitioning its reporting of Reserves and Resources from the first quarter of each year to the fourth quarter of each year. Reserves and Resources for 2018 will be reported by
December 2018 .
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_____________________________ |
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1 |
Throughout this press release we use cash operating cost per ounce, all-in sustaining cash cost per ounce, earnings from gold mining operations, adjusted net earnings, average realized price per ounce sold, earnings before interest, taxes and depreciation and amortization from continuing operations, adjusted earnings before interest, taxes and depreciation and amortization from continuing operations, working capital, non-cash operating costs, non-cash operating costs per ounce and cash flow from operations before changes in non-cash working capital as additional measures of Company performance. These are non-IFRS measures. Please see the |
"We are pleased with this quarter's results and with the operational and financial progress
"For the third quarter, gold production was ahead of plan driven by production from the Kisladag leach pad and strong pre-commercial production from Lamaque. From a development standpoint, we are very pleased with the progress at Lamaque. We have begun commissioning of the crushing circuit and wet commissioning of the
"The completion of the feasibility study for the Kisladag Mill and the subsequent Board decision to continue to advance the project were key milestones for Eldorado this quarter. I am extremely proud of the work our team has undertaken to optimize the future of Kisladag, demonstrating our disciplined approach of allocating capital, as we transition away from heap leaching to deliver quality growth through the advancement of the mill project. Our focus going forward will be on delivering this project on time and on budget, as we are doing at Lamaque."
Summarized Quarterly Financial Results
|
3 months ended |
9 months ended |
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|
2018 |
2017 |
2018 |
2017 |
|
|
Revenues |
|
|
|
|
|
Gold revenues (1) |
|
|
|
|
|
Gold sold (ounces) |
64,589 |
65,439 |
245,400 |
196,713 |
|
Average realized gold price ($/ounce sold) |
1,177 |
1,290 |
1,274 |
1,256 |
|
Cash operating costs – gold mines ($/ounce sold) |
754 |
508 |
625 |
485 |
|
All-in sustaining cash cost – gold mines ($/ounce sold) |
1,112 |
925 |
944 |
859 |
|
Net earnings from mining operations |
|
|
73.1 |
101.3 |
|
Impairment loss on property, plant and equipment, net of tax |
(94.1) |
0.0 |
(94.1) |
0.0 |
|
Net earnings (loss) attributable to shareholders of the Company (2,3) |
( |
( |
( |
|
|
Adjusted net earnings (loss) attributable to shareholders of the Company |
( |
|
( |
|
|
Cash flow provided (used) by operating activities of continuing operations |
|
( |
|
|
|
Earnings (loss) per share attributable to shareholders of the Company – basic ($/share) |
(0.16) |
(0.01) |
(0.18) |
0.01 |
|
Earnings per share attributable to shareholders of the Company – diluted ($/share) |
(0.16) |
(0.01) |
(0.18) |
0.01 |
|
(1) |
Including market to market price adjustments on provisional sales. |
|
(2) |
2017 net earnings is from continued operations. |
|
(3) |
Including non-cash charges. |
Review of Quarterly Financial Results
Gold sales of 64,589 ounces during the quarter were in line with last year's third quarter as lower sales from Kisladag were partially offset by sales at Olympias in 2018. Total metal sales revenues were
Lower gold revenues for the quarter together with higher production costs and depreciation, depletion and amortization ("DDA") expense resulted in earnings from mine operations decreasing year over year. Production costs in the third quarter of 2018 were
Kisladag leach pad inventory was adjusted upwards by approximately 76,000 ounces of gold during the quarter to reflect an increase in recoverable ounces on the pad. The costs associated with the inventory will now be spread across the remaining heap leach expected ounces. Future quarters are expected to be impacted by non-cash charges as the Kisladag leach pad inventory draw-down continues. DDA costs in the quarter were marginally higher year over year due to the start-up of Olympias as well as an increase at Kisladag resulting from leach pad draw-down.
With the completion of the mill feasibility study at Kisladag and Board approval to advance the project, a review of the useful lives of the Kisladag heap leach assets resulted in an impairment charge of
General and administrative expenses decreased
In the third quarter, further weakening of the Turkish and Brazilian currencies in relation to the
Review of Quarterly Operational Results
Gold production of 84,807 ounces was up 21% year on year (Q3 2017: 70,053) due to commercial production at Olympias and pre-commercial production from Lamaque. Production at Efemcukuru remained in line with the comparative quarter in 2017.
Production at Kisladag for the quarter was 34,070 ounces, marginally lower than the third quarter of 2017 (35,902 ounces), with no additional ore being placed on the pad since
After a strong first half of 2018, the Olympias plant encountered lead recovery challenges during the quarter. This was primarily due to permit delays impacting the construction and commissioning of the paste plant, which led to a backlog of voids that required filling in the West zone, slowing production from this area of the mine. Production was increased in the East zone, but material from this area has proven to be challenging in terms of lead circuit performance. These challenges include lower lead recovery and a higher concentration of deleterious materials in the lead concentrate, which necessitated a change in the sales process. At quarter end, there was a built up stockpile of lead concentrate at the port and on vessels. In addition to these issues, lower zinc and lead prices compared to previous quarters led to lower by-product revenues and higher cash operating and AISC costs.
Gold recovery and gold grades in concentrate at Olympias were broadly in line with expectations, with gold feed grades dropping slightly below expectations during the quarter, but still ahead of expectations year to date. However, with the issues in the lead production, some of the lead was reporting to the gold concentrate, causing issues in the sale of that concentrate. At quarter end, Olympias had approximately 9,500 ounces of payable gold unsold in inventory.
At quarter end, backfilling of voids was improving and the ratio of West to East zone ore had been restored. We are also temporarily slowing down plant throughput to allow for an ore stockpile to be created on surface to help with blending. Metallurgical consultants have also been engaged to assist with performance of the plant when treating the East zone. The Company is also exploring blending lead concentrates from Olympias with
For further information on the Company's operating results for the third quarter of 2018, please see the Company's Management's Discussion and Analysis filed on SEDAR at www.sedar.com under the Company's profile.
Permitting and Development Updates
Kisladag Mill
Following the completion of the
Highlights of the feasibility study are shown below, compared to the NI 43-101 Pre-Feasibility Study filed in
Other work during the quarter included the selection of vendors for long-lead items with the award of an early engineering contract to the selected tailings filter vendor. It is expected that contracts for other long-lead items such as the mills will be finalized, and awarded for purchase, before year-end.
Capital costs increased compared to the Pre-Feasibility Report primarily due to increased costs in the tailings management facility and in tailings filtration. Operating costs increased slightly compared to the Pre-Feasibility Report mainly due to increased cost of electric power.
Kisladag Mill Feasibility Study Summary
|
Feasibility Study |
Pre-Feasibility Report |
|
|
Mill capacity |
13.0 Mtpa |
13.0 Mtpa |
|
Grade |
0.81g/t |
0.81g/t |
|
Recovery rate |
80.1% |
80.1% |
|
Annual gold production |
270,000 oz |
270,000 oz |
|
Mill operating life |
9 years |
9 years |
|
Strip ratio |
1.3 |
1.3 |
|
Total cash costs |
|
|
|
AISC |
|
|
|
Development capital |
|
|
|
Mill cost |
|
|
|
Waste and ore mining |
|
|
|
Contingency |
|
|
|
Sustaining capital |
|
|
|
NPV-5%1 |
|
|
|
IRR1 |
20.4% |
22.1% |
|
Payback1 |
3.9 years |
3.7 years |
|
1 |
After tax, based on |
Sensitivities for the NPV and IRR of the mill project are shown below:
|
Project |
Gold Price |
Capex |
Opex |
|||
|
|
|
+10% |
-10% |
+5% |
-5% |
|
|
NPV-5% |
|
|
|
|
|
|
|
IRR |
14.8% |
25.7% |
17.6% |
23.8% |
18.5% |
22.2% |
Lamaque
During the quarter, Lamaque received the Certificate of Authorization permit for operation of the
Key activities at the Sigma mill focused on the refurbishment and replacement of the electrical and piping works, installation of the refurbished mill motors, equipment installation and construction of the reagent buildings. A key milestone was achieved with the commencement of the pre-commissioning of the crushing circuit and wet commissioning of the main plant. It is expected that the full commissioning will commence in late November.
Favorable weather allowed for the advancement of Phase 1 of the Tailings Management Facility ("TMF") ahead of schedule. Phase 1 will provide sufficient storage for the first year of operation. The Certificate of Authorization for operations of the tailing facility was also received during the quarter which permits the deposition of tailings in the TMF.
Lamaque remains on track to reach commercial production in early 2019.
The Company continues to attempt to engage the Greek government in constructive dialogue relating to its investments in
For further information on the Company's development and permitting updates for the third quarter of 2018, please see the Company's Management's Discussion and Analysis filed on SEDAR at www.sedar.com under the Company's profile.
Guidance
2018 Revised Outlook
Our operations continue to perform well, and full year production guidance has been further increased to 345,000-350,000 ounces of gold. Cash operating costs are forecasted at
|
Kısladag |
|
|
||
|
Production (oz) |
Cash Cost ($/oz sold) |
Production (oz) |
Cash Cost ($/oz sold) |
|
|
2018 |
160,000-170,000 |
|
140,000-150,000 |
|
|
2019 |
50,000-60,000 |
(including |
40,000-50,000 |
(including |
|
2020 |
20,000-40,000 |
(including |
20,000-25,000 |
|
|
1 Cash operating cost guidance has increased for Kisladag due to increased cyanide usage estimates. |
2018 guidance for Olympias has been revised to 45,000-50,000 ounces of gold at a cash operating cost of
In light of this increased consolidated guidance, together with higher than expected inventory draw-down during the quarter, the Company has also increased Kisladag's estimated recoverable leach pad inventory by approximately 76,000 ounces of gold. This change in estimate for the heap leach inventory will be accounted for prospectively as a new accounting estimate in accordance with IAS 8 commencing
Three Year Corporate Outlook
The Company's business plan is to grow annual production to 600,000 ounces of gold by 2021. Over the next two years, the Company expects to maintain average production of 300,000-325,000 ounces of gold per year, with costs similar to 2018. Costs are expected to decrease by approximately
Corporate
Senior Management Additions
-
Phil Yee joined the Company as Executive Vice President and Chief Financial Officer onSeptember 24, 2018 . -
Lisa Ower joined the Company as Vice President of Human Resources onAugust 8, 2018 .
Share Consolidation
Eldorado received shareholder approval at its 2018 Annual and Special Meeting held on
Dividend
As previously announced, the Company suspended cash payment of its semi-annual dividend payment effective the first quarter of 2018.
Conference Call and Webcast with Slides
A conference call to discuss the details of the Company's 2018 third quarter results will be held by senior management on
|
Conference Call Details |
Replay (available until |
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Date: |
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Toronto: |
416 849 0833 |
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Time: |
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Toll Free: |
1 855 859 2056 |
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Dial in: |
647 427 7450 |
Pass code: |
4677 738 |
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Toll free: |
1 888 231 8191 |
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About
Eldorado is a gold and base metals producer with mining, development and exploration operations in
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 and recoveries of gold, projected all-in sustaining costs and cash operating costs, planned capital and exploration expenditures; our expectation as to our future financial and operating performance, including future cash flow, estimated all-in sustaining costs and cash operating 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 proposed share consolidation.
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 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
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
Condensed Consolidated Interim Statements of Financial Position
(Unaudited - stated in thousands of
|
Note |
|
|
||
|
$ |
$ |
|||
|
ASSETS |
||||
|
Current assets |
||||
|
Cash and cash equivalents |
378,344 |
479,501 |
||
|
Term deposits |
6,631 |
5,508 |
||
|
Restricted cash |
299 |
310 |
||
|
Marketable securities |
2,843 |
5,010 |
||
|
Accounts receivable and other |
61,218 |
78,344 |
||
|
Inventories |
144,463 |
168,844 |
||
|
593,798 |
737,517 |
|||
|
Restricted cash and other assets |
21,693 |
22,902 |
||
|
Defined benefit pension plan |
9,497 |
9,919 |
||
|
Property, plant and equipment |
5 |
4,208,988 |
4,227,397 |
|
|
|
4 |
92,591 |
92,591 |
|
|
4,926,567 |
5,090,326 |
|||
|
LIABILITIES & EQUITY |
||||
|
Current liabilities |
||||
|
Accounts payable and accrued liabilities |
93,420 |
110,541 |
||
|
Current portion of asset retirement obligation |
431 |
3,489 |
||
|
93,851 |
114,030 |
|||
|
Debt |
6 |
595,429 |
593,783 |
|
|
Lease liability |
6,113 |
110 |
||
|
Defined benefit pension plan |
11,779 |
13,599 |
||
|
Asset retirement obligations |
97,582 |
96,195 |
||
|
Deferred income tax liabilities |
544,519 |
549,127 |
||
|
1,349,273 |
1,366,844 |
|||
|
Equity |
||||
|
Share capital |
3,007,924 |
3,007,924 |
||
|
|
(10,104) |
(11,056) |
||
|
Contributed surplus |
2,618,969 |
2,616,593 |
||
|
Accumulated other comprehensive loss |
(22,934) |
(21,350) |
||
|
Deficit |
(2,092,287) |
(1,948,569) |
||
|
Total equity attributable to shareholders of the Company |
3,501,568 |
3,643,542 |
||
|
Attributable to non-controlling interests |
75,726 |
79,940 |
||
|
3,577,294 |
3,723,482 |
|||
|
4,926,567 |
5,090,326 |
|||
Please see the Unaudited Condensed Consolidated Interim Financial Statements dated
Condensed Consolidated Interim Statements of Operations
(Unaudited- stated in thousands of
|
Three months ended |
Nine months ended |
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|
|
||||||
|
Note |
2018 |
2017 |
2018 |
2017 |
|||
|
$ |
$ |
$ |
$ |
||||
|
Revenue |
|||||||
|
Metal sales |
7 |
81,070 |
95,349 |
366,146 |
289,965 |
||
|
Cost of sales |
|||||||
|
Production costs |
56,066 |
45,844 |
209,145 |
135,965 |
|||
|
Inventory write-down |
429 |
487 |
429 |
487 |
|||
|
Depreciation and amortization |
19,828 |
18,634 |
83,498 |
52,254 |
|||
|
76,323 |
64,965 |
293,072 |
188,706 |
||||
|
Earnings from mine operations |
4,747 |
30,384 |
73,074 |
101,259 |
|||
|
Exploration and evaluation expenses |
8,014 |
11,651 |
26,668 |
24,022 |
|||
|
Mine standby costs |
4,460 |
1,263 |
11,470 |
3,595 |
|||
|
Other operating items |
- |
- |
- |
3,658 |
|||
|
General and administrative expenses |
10,896 |
12,785 |
33,127 |
35,897 |
|||
|
Acquisition costs |
- |
4,265 |
- |
4,265 |
|||
|
Defined benefit pension plan expense |
201 |
813 |
2,331 |
2,425 |
|||
|
Share based payments |
9 |
1,580 |
2,137 |
5,742 |
9,255 |
||
|
Impairment loss on property, plant, and equipment |
5 |
117,570 |
- |
117,570 |
- |
||
|
Other write-down of assets |
536 |
31,109 |
1,386 |
34,340 |
|||
|
Foreign exchange gain (loss) |
(3,034) |
(2,757) |
374 |
(3,418) |
|||
|
Earnings (loss) from operations |
(135,476) |
(30,882) |
(125,594) |
(12,780) |
|||
|
Gain (loss) on disposal of assets |
1 |
(66) |
129 |
(333) |
|||
|
Gain on derivatives and other investments |
2,326 |
27,311 |
4,520 |
28,089 |
|||
|
Other income |
3,957 |
5,227 |
9,229 |
9,787 |
|||
|
Asset retirement obligation accretion |
(510) |
(458) |
(1,529) |
(1,505) |
|||
|
Interest and financing costs |
(329) |
(1,042) |
(6,584) |
(2,092) |
|||
|
Earnings (loss) from continuing operations before income tax |
(130,031) |
90 |
(119,829) |
21,166 |
|||
|
Income tax expense |
661 |
7,090 |
29,324 |
15,173 |
|||
|
Earnings (loss) from continuing operations |
(130,692) |
(7,000) |
(149,153) |
5,993 |
|||
|
Loss from discontinued operations |
- |
- |
- |
(2,797) |
|||
|
Net earnings (loss) for the period |
(130,692) |
(7,000) |
(149,153) |
3,196 |
|||
|
Attributable to: |
|||||||
|
Shareholders of the Company |
(128,045) |
(4,179) |
(143,718) |
10,870 |
|||
|
Non-controlling interests |
(2,647) |
(2,821) |
(5,435) |
(7,674) |
|||
|
Net earnings (loss) for the period |
(130,692) |
(7,000) |
(149,153) |
3,196 |
|||
|
Net earnings (loss) attributable to shareholders of the Company |
|||||||
|
Continuing operations |
(128,045) |
(4,179) |
(143,718) |
13,667 |
|||
|
Discontinued operations |
- |
- |
- |
(2,797) |
|||
|
(128,045) |
(4,179) |
(143,718) |
10,870 |
||||
|
Weighted average number of shares outstanding (thousands) |
|||||||
|
Basic |
792,019 |
785,621 |
792,724 |
739,935 |
|||
|
Diluted |
792,019 |
785,621 |
792,724 |
739,935 |
|||
|
Earnings (loss) per share attributable to shareholders |
|||||||
|
of the Company: |
|||||||
|
Basic Earnings (loss) per share |
(0.16) |
(0.01) |
(0.18) |
0.01 |
|||
|
Diluted Earnings (loss) per share |
(0.16) |
(0.01) |
(0.18) |
0.01 |
|||
|
Earnings (loss) per share attributable to shareholders |
|||||||
|
of the Company - continuing operations: |
|||||||
|
Basic Earnings (loss) per share |
(0.16) |
(0.01) |
(0.18) |
0.02 |
|||
|
Diluted Earnings (loss) per share |
(0.16) |
(0.01) |
(0.18) |
0.02 |
|||
Please see the Unaudited Condensed Consolidated Interim Financial Statements dated
Condensed Consolidated Interim Statements of Comprehensive Loss
(Unaudited - stated in thousands of
|
Three months ended |
Nine months ended |
||||||
|
|
|
||||||
|
2018 |
2017 |
2018 |
2017 |
||||
|
$ |
$ |
$ |
$ |
||||
|
Earnings (loss) for the period |
(130,692) |
(7,000) |
(149,153) |
3,196 |
|||
|
Other comprehensive loss: |
|||||||
|
Items that will not be reclassified to earnings or loss: |
|||||||
|
Change in fair value of investments in equity securities |
(875) |
86 |
(2,034) |
15 |
|||
|
Actuarial gains (losses) on defined benefit pension plans |
(200) |
(362) |
450 |
(31) |
|||
|
(1,075) |
(276) |
(1,584) |
(16) |
||||
|
Items that may be reclassified subsequently to earnings or loss: |
|||||||
|
Change in fair value of investments in equity securities |
- |
(2,587) |
- |
16,038 |
|||
|
Income tax on change in fair value of investments in equity securities |
- |
- |
- |
(2,595) |
|||
|
Reclassification of the gain on equity securities on acquisition of Integra |
4 |
- |
(28,363) |
- |
(28,363) |
||
|
Income tax on the gain on equity securities on acquisition of Integra |
4 |
- |
4,023 |
- |
4,023 |
||
|
- |
(26,927) |
- |
(10,897) |
||||
|
Total other comprehensive loss for the period |
(1,075) |
(27,203) |
(1,584) |
(10,913) |
|||
|
Total comprehensive loss for the period |
(131,767) |
(34,203) |
(150,737) |
(7,717) |
|||
|
Attributable to: |
|||||||
|
Shareholders of the Company |
(129,120) |
(31,382) |
(145,302) |
(43) |
|||
|
Non-controlling interests |
(2,647) |
(2,821) |
(5,435) |
(7,674) |
|||
|
(131,767) |
(34,203) |
(150,737) |
(7,717) |
||||
Please see the Unaudited Condensed Consolidated Interim Financial Statements dated
Condensed Consolidated Interim Statements of Cash Flows
(Unaudited - stated in thousands of
|
Three months ended |
Nine months ended |
||||||
|
|
|
||||||
|
Note |
2018 |
2017 |
2018 |
2017 |
|||
|
$ |
$ |
$ |
$ |
||||
|
Cash flows generated from (used in): |
|||||||
|
Operating activities |
|||||||
|
Earnings (loss) for the period from continuing operations |
(130,692) |
(7,000) |
(149,153) |
5,993 |
|||
|
Items not affecting cash: |
|||||||
|
Asset retirement obligation accretion |
510 |
458 |
1,529 |
1,505 |
|||
|
Depreciation and amortization |
19,828 |
18,634 |
83,498 |
52,254 |
|||
|
Unrealized foreign exchange loss (gain) |
(144) |
(490) |
274 |
(868) |
|||
|
Deferred income tax recovery |
(11,616) |
(1,135) |
(4,608) |
(13,694) |
|||
|
(Gain) loss on disposal of assets |
(1) |
66 |
(129) |
333 |
|||
|
Impairment loss on property, plant and equipment |
5 |
117,570 |
- |
117,570 |
- |
||
|
Other write-down of assets |
536 |
31,109 |
1,386 |
34,340 |
|||
|
Gain on derivatives and other investments |
(2,326) |
(27,311) |
(4,520) |
(28,089) |
|||
|
Share based payments |
1,580 |
2,137 |
5,742 |
9,255 |
|||
|
Defined benefit pension plan expense |
201 |
813 |
2,331 |
2,425 |
|||
|
(4,554) |
17,281 |
53,920 |
63,454 |
||||
|
Property reclamation payments |
(801) |
(1,024) |
(3,200) |
(2,111) |
|||
|
Severance payments |
(49) |
- |
(2,299) |
- |
|||
|
Changes in non-cash working capital |
11 |
28,634 |
(23,237) |
23,216 |
(45,463) |
||
|
Net cash provided (used) by operating activities of continuing operations |
23,230 |
(6,980) |
71,637 |
15,880 |
|||
|
Net cash used by operating activities of discontinued operations |
- |
- |
- |
(2,797) |
|||
|
Investing activities |
|||||||
|
Net cash paid on acquisition of subsidiary |
- |
(121,664) |
- |
(121,664) |
|||
|
Purchase of property, plant and equipment |
(82,388) |
(91,803) |
(212,537) |
(240,687) |
|||
|
Proceeds from the sale of property, plant and equipment |
68 |
58 |
7,880 |
141 |
|||
|
Proceeds on pre-commercial production sales |
12,441 |
10,933 |
29,332 |
12,025 |
|||
|
Value added taxes related to mineral property expenditures, net |
1,858 |
3,501 |
6,660 |
19,846 |
|||
|
Redemption of (investment in) term deposits |
(5) |
262,467 |
(1,123) |
(1,012) |
|||
|
Increase in restricted cash |
(30) |
(66) |
(898) |
(9,790) |
|||
|
Net cash provided (used) by investing activities of continuing operations |
(68,056) |
63,426 |
(170,686) |
(341,141) |
|||
|
Financing activities |
|||||||
|
Issuance of common shares for cash |
- |
- |
- |
586 |
|||
|
Dividend paid to shareholders |
- |
- |
- |
(10,610) |
|||
|
Purchase of treasury stock |
- |
- |
(2,108) |
(5,301) |
|||
|
Net cash used by financing activities of continuing operations |
- |
- |
(2,108) |
(15,325) |
|||
|
Increase (decrease) in cash and cash equivalents |
(44,826) |
56,446 |
(101,157) |
(343,383) |
|||
|
Cash and cash equivalents - beginning of period |
423,170 |
483,342 |
479,501 |
883,171 |
|||
|
Cash and cash equivalents - end of period |
378,344 |
539,788 |
378,344 |
539,788 |
|||
Please see the Unaudited Condensed Consolidated Interim Financial Statements dated
Condensed Consolidated Interim Statements of Changes in Equity
(Unaudited - stated in thousands of
|
Three months ended |
Nine months ended |
||||||
|
|
|
||||||
|
2018 |
2017 |
2018 |
2017 |
||||
|
$ |
$ |
$ |
$ |
||||
|
Share capital |
|||||||
|
Balance beginning of period |
3,007,924 |
2,819,863 |
3,007,924 |
2,819,101 |
|||
|
Shares issued upon exercise of share options, for cash |
- |
- |
- |
586 |
|||
|
Transfer of contributed surplus on exercise of options |
- |
- |
- |
176 |
|||
|
Shares issued on acquisition of |
4 |
- |
188,061 |
- |
188,061 |
||
|
Balance end of period |
3,007,924 |
3,007,924 |
3,007,924 |
3,007,924 |
|||
|
|
|||||||
|
Balance beginning of period |
(10,104) |
(11,056) |
(11,056) |
(7,794) |
|||
|
Purchase of treasury stock |
- |
- |
(2,108) |
(5,301) |
|||
|
Shares redeemed upon exercise of restricted share units |
- |
- |
3,060 |
2,039 |
|||
|
Balance end of period |
(10,104) |
(11,056) |
(10,104) |
(11,056) |
|||
|
Contributed surplus |
|||||||
|
Balance beginning of period |
2,617,108 |
2,611,660 |
2,616,593 |
2,606,567 |
|||
|
Share based payments |
1,861 |
2,472 |
5,436 |
9,780 |
|||
|
Shares redeemed upon exercise of restricted share units |
- |
- |
(3,060) |
(2,039) |
|||
|
Transfer to share capital on exercise of options |
- |
- |
- |
(176) |
|||
|
Balance end of period |
2,618,969 |
2,614,132 |
2,618,969 |
2,614,132 |
|||
|
Accumulated other comprehensive loss |
|||||||
|
Balance beginning of period |
(21,859) |
9,118 |
(21,350) |
(7,172) |
|||
|
Other comprehensive loss for the period |
(1,075) |
(27,203) |
(1,584) |
(10,913) |
|||
|
Balance end of period |
(22,934) |
(18,085) |
(22,934) |
(18,085) |
|||
|
Deficit |
|||||||
|
Balance beginning of period |
(1,964,242) |
(1,923,585) |
(1,948,569) |
(1,928,024) |
|||
|
Dividends paid |
- |
- |
- |
(10,610) |
|||
|
Earnings (loss) attributable to shareholders of the Company |
(128,045) |
(4,179) |
(143,718) |
10,870 |
|||
|
Balance end of period |
(2,092,287) |
(1,927,764) |
(2,092,287) |
(1,927,764) |
|||
|
Total equity attributable to shareholders of the Company |
3,501,568 |
3,665,151 |
3,501,568 |
3,665,151 |
|||
|
Non-controlling interests |
|||||||
|
Balance beginning of period |
78,153 |
83,933 |
79,940 |
88,786 |
|||
|
Loss attributable to non-controlling interests |
(2,647) |
(2,821) |
(5,435) |
(7,674) |
|||
|
Contributions fron non-controlling interest |
220 |
- |
1,221 |
- |
|||
|
Balance end of period |
75,726 |
81,112 |
75,726 |
81,112 |
|||
|
Total equity |
3,577,294 |
3,746,263 |
3,577,294 |
3,746,263 |
|||
Please see the Unaudited Condensed Consolidated Interim Financial Statements dated
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