Eldorado Gold Reports First Quarter 2022 Financial and Operational Results
First Quarter 2022 Highlights
Operations
-
Q1 gold production: 93,209 ounces in Q1 2022. Production was heavily impacted in the earlier part of the quarter by COVID-related absenteeism, weather related challenges and power outages at our operations. In the latter part of the quarter, most operations returned to planned levels of tonnage, grades and production.
-
Q1 gold sales: 94,472 ounces at an average realized gold price per ounce sold (1) of
$1,889 in Q1 2022. -
Cash operating costs(1):
$835 per ounce sold in Q1 2022. The increase in cost was primarily driven by lower overall gold production and an increase in the price of certain commodities and consumables. -
All-in sustaining costs ("AISC")(1):
$1,347 per ounce sold in Q1 2022. -
Total capital expenditures:
$60 .8 million in Q1 2022, including$5 .6 million of growth capital(1) spent at Skouries with activity focused on cladding of the process plant, commencement of basic engineering, and continued preservation of site facilities and equipment. Growth capital of$23 .7 million in Q1 2022 focused on waste stripping at Kisladag and construction of the North leach pad. -
Production outlook: We are maintaining our 2022 annual guidance of 460,000 – 490,000 ounces of gold production.
Financial
-
Cash flow from operating activities before changes in working capital(1):
$49 .7 million in Q1 2022. -
Cash, cash equivalents and term deposits:
$434 .7 million, as atMarch 31, 2022 . -
Adjusted EBITDA(1):
$62.1 million in Q1 2022. -
Net loss: Q1 2022 net loss attributable to shareholders of the Company was
$316.8 million or$1.74 loss per share. Lower net income in Q1 2022 is primarily attributable to an impairment of$365.4 million ($345.4 million , net of deferred tax) of the Certej project, a non-core asset, and a write-down of$19.8 million ($15.4 million , net of deferred tax) relating to decommissioned equipment at Kisladag. -
Adjusted net loss(1):
$19.0 million net loss, or$0.10 loss per share in Q1 2022. Adjusted net loss in Q1 2022 removes, among other things, the non-cash impairment charge related to the Certej project and the non-cash write-down of decommissioned equipment at Kisladag. -
Free cash flow(1): Negative
$26 .8 million in Q1 2022, primarily due to lower gold production and sales. -
Financial outlook: Cash operating costs and AISC were higher in Q1 2022 due to operational challenges that resulted in lower gold ounces produced and sold. In light of significant volatility in prices for electricity, fuel, reagents and other consumables required for our operations, we are monitoring the impact on expected full year operating and capital costs and will provide an update next quarter.
(1) These financial measures or ratios are non-IFRS financial measures or ratios. Certain additional disclosures for non-IFRS financial measures and ratios have been incorporated by reference and additional detail can be found at the end of this press release and in the section 'Non-IFRS and Other Financial Measures and Ratios' in the Company's
Other
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Strengthened union agreements: In
January 2022 , we completed a two-year collective bargaining agreement with our labour union inTurkey . Adjustments were incorporated in light of continued high consumer inflation rates to support our workforce with rising costs of food and electricity. InApril 2022 , we also completed a two-year collective bargaining agreement with our labour unions inGreece . The agreement incorporates technology and flexibility to support the achievement of productivity and efficiency targets.
"Our global operations were met with significant challenges in the first quarter,” said
“During the quarter, we made meaningful progress at Skouries, our development project in
"Our focus ahead is on maintaining positive momentum by delivering on key initiatives including a financing package for Skouries. Financing discussions continue to advance, and we are evaluating all available options including, joint venture equity partners, project and debt financing through EU and Greek lenders as well as the
Consolidated Financial and Operational Highlights
| 3 months ended |
||||||
| Continuing Operations(6) | 2022 | 2021 | ||||
| Revenue | $ | 194.7 | $ | 224.6 | ||
| Gold produced (oz) | 93,209 | 111,742 | ||||
| Gold sold (oz) | 94,472 | 113,594 | ||||
| Average realized gold price ($/oz sold)(2) | $ | 1,889 | $ | 1,732 | ||
| Production costs | $ | 104.6 | $ | 108.6 | ||
| Cash operating costs ($/oz sold)(2,3) | $ | 835 | $ | 641 | ||
| Total cash costs ($/oz sold)(2,3) | $ | 941 | $ | 687 | ||
| All-in sustaining costs ($/oz sold)(2,3) | $ | 1,347 | $ | 986 | ||
| Net (loss) earnings for the period(1,4) | $ | (316.8 | ) | $ | 14.3 | |
| Net (loss) earnings earnings per share – basic ($/share)(1,4) | $ | (1.74 | ) | $ | 0.08 | |
| Adjusted net (loss) earnings (1,2,4) | $ | (19.0 | ) | $ | 25.2 | |
| Adjusted net (loss) earnings per share ($/share)(1,2,4) | $ | (0.10 | ) | $ | 0.14 | |
| Net cash generated from operating activities(5) | $ | 35.2 | $ | 99.1 | ||
| Cash flow from operating activities before changes in working capital(2,5) | $ | 49.7 | $ | 81.2 | ||
| Free cash flow(2,5) | $ | (26.8 | ) | $ | 33.4 | |
| Cash, cash equivalents and term deposits | $ | 434.7 | $ | 533.8 | ||
(1) Attributable to shareholders of the Company.
(2) These financial measures or ratios are non-IFRS financial measures or ratios. See the section 'Non-IFRS and Other Financial Measures and Ratios' in the Company's MD&A for explanations and discussion of these non-IFRS financial measures and ratios.
(3) Revenues from silver, lead and zinc sales are off-set against cash operating costs.
(4) Q1 2021 amounts have been recast to correct an immaterial error related to an understatement of the net book value of certain of our property, plant and equipment as a result of errors in the amounts recorded for depreciation.
(5) Q1 2021 amounts have been restated for a voluntary change in accounting policy to classify cash paid for interest on the statement of cash flows as a financing, rather than an operating activity.
(6) The
Total revenue was
Production costs decreased to
Cash operating costs in Q1 2022 averaged
We reported net loss attributable to shareholders from continuing operations of
Adjusted net loss was
Operations Update
Gold Operations
| 3 months ended |
|||||
| 2022 | 2021 | ||||
| Total | |||||
| Ounces produced | 93,209 | 111,742 | |||
| Ounces sold | 94,472 | 113,594 | |||
| Production costs | $ | 104.6 | $ | 108.6 |
|
| Cash operating costs ($/oz sold) (1,2) | $ | 835 | $ | 641 | |
| All-in sustaining costs ($/oz sold) (1,2) | $ | 1,347 | $ | 986 | |
| Sustaining capital expenditures (2) | $ | 24.5 | $ | 20.5 | |
| Kisladag | |||||
| Ounces produced | 29,779 | 46,172 | |||
| Ounces sold | 29,778 | 47,507 | |||
| Production costs | $ | 30.1 | $ | 26.3 | |
| Cash operating costs ($/oz sold) (1,2) | $ | 861 | $ | 492 | |
| All-in sustaining costs ($/oz sold) (1,2) | $ | 1,084 | $ | 607 | |
| Sustaining capital expenditures (2) | $ | 2.5 | $ | 2.8 | |
| Lamaque | |||||
| Ounces produced | 33,377 | 28,835 | |||
| Ounces sold | 34,125 | 29,078 | |||
| Production costs | $ | 27.2 | $ | 23.0 | |
| Cash operating costs ($/oz sold) (1,2) | $ | 763 | $ | 759 | |
| All-in sustaining costs ($/oz sold) (1,2) | $ | 1,182 | $ | 1,162 | |
| Sustaining capital expenditures (2) | $ | 13.0 | $ | 9.3 | |
| Efemcukuru | |||||
| Ounces produced | 21,057 | 23,298 | |||
| Ounces sold | 21,382 | 24,130 | |||
| Production costs | $ | 17.0 | $ | 14.6 | |
| Cash operating costs ($/oz sold) (1,2) | $ | 648 | $ | 525 | |
| All-in sustaining costs ($/oz sold) (1,2) | $ | 999 | $ | 693 | |
| Sustaining capital expenditures (2) | $ | 3.5 | $ | 2.6 | |
| Olympias | |||||
| Ounces produced | 8,996 | 13,437 | |||
| Ounces sold | 9,187 | 12,879 | |||
| Production costs | $ | 30.2 | $ | 29.4 | |
| Cash operating costs ($/oz sold) (1,2) | $ | 1,449 | $ | 1,145 | |
| All-in sustaining costs ($/oz sold) (1,2) | $ | 2,399 | $ | 1,799 | |
| Sustaining capital expenditures (2) | $ | 5.6 | $ | 5.8 | |
(1) Revenues from silver, lead and zinc sales are off-set against cash operating costs.
(2) These financial measures or ratios are non-IFRS financial measures or ratios. See the section 'Non-IFRS and Other Financial Measures and Ratios' in the Company's MD&A for explanations and discussion of these non-IFRS financial measures and ratios.
Kisladag
Kisladag produced 29,779 ounces of gold in Q1 2022, a 36% decrease from 46,172 ounces in Q1 2021. The decrease was primarily due to COVID-19 related absenteeism, severe weather and an approximate three-day government-mandated power outage. The decrease was also the result of lower tonnage placed on the heap leach pad in Q4 2021 during the commissioning of the high-pressure grinding rolls circuit ("HPGR"). Average grade declined to 0.61 grams per tonne in Q1 2022 from 0.77 grams per tonne in Q1 2021.
Tonnes placed on the heap leach pad in Q1 2022 were lower than planned, primarily due to snowfall and prolonged freezing temperatures that impacted the ore conveyance and stacking system, reducing productivity in the quarter. Tonnes placed on the pad and production ramped up in March and optimization of the agglomeration circuit continued. The HPGR is performing to plan, with recovery rates as expected. Lower tonnes placed on the heap leach pad in Q1 2022 are expected to negatively impact gold production in Q2 2022.
Revenue decreased to
Production costs increased to
AISC per ounce sold increased to
Sustaining capital expenditures(1) of
Lamaque
Lamaque produced 33,377 ounces of gold in Q1 2022, a 16% increase from 28,835 ounces in Q1 2021 and primarily due to higher throughput in the quarter. COVID-19 related absenteeism led to a reduction in workforce hours in January and February. This delayed the underground development of high-grade stopes, which led to lower than planned gold grades in the quarter. Mine development increased in March and gold grade and tonnage returned to planned levels. Average grade increased slightly to 5.27 grams per tonne in Q1 2022 from 5.17 grams per tonne in Q1 2021. Full-year gold production at Lamaque is expected to be in line with guidance.
Revenue increased to
Production costs increased to
AISC per ounce sold increased to
(1) These financial measures or ratios are non-IFRS financial measures or ratios. Certain additional disclosures for non-IFRS financial measures and ratios have been incorporated by reference and additional detail can be found at the end of this press release and in the section 'Non-IFRS and Other Financial Measures and Ratios' in the Company's
Efemcukuru
Efemcukuru produced 21,057 payable ounces of gold in Q1 2022, a 10% decrease from 23,298 payable ounces in Q1 2021. The decrease was due to a planned decrease in grade to 5.95 grams per tonne in Q1 2022 from 6.67 grams per tonne in Q1 2021, and was partly offset by higher throughput during the quarter despite experiencing COVID-19 related absenteeism.
Revenue increased to
Production costs increased to
AISC per ounce sold increased to
Sustaining capital expenditures of
Olympias
Olympias produced 8,996 ounces of gold in Q1 2022, a 33% decrease from 13,437 ounces in Q1 2021. The decrease reflected lower processing volumes and lower gold grade in the quarter. Lead and zinc production were lower in Q1 2022 as compared to Q1 2021, also due to lower processing volumes while silver ounces produced were slightly higher due to higher grade. In January and February, gold production at Olympias was impacted by COVID-19 related absenteeism. Additionally, operations were impacted for approximately six days in January due to snowfall in the region which resulted in an approximate four-day power outage. Operations resumed mining to plan in March and achieved planned tonnage and grades for the month. Initiatives are in place to continue ramping up mine production tonnage, control the grades and maximize plant throughput for the remainder of the year. Plant throughput in Q2 2022 is expected to be impacted by planned processing tie-ins to improve water treatment plant efficiency and capacity.
Revenue decreased to
Production costs increased slightly to
AISC per ounce sold increased to
For further information on the Company's operating results for the first quarter of 2022, please see the Company’s MD&A filed on SEDAR at www.sedar.com under the Company’s profile.
Conference Call
A conference call to discuss the details of the Company’s First Quarter 2022 Results will be held by senior management on
| Conference Call Details | Replay (available until |
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| Date: |
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: |
+1 604 638 9010 | |
| Time: | ( |
Toll Free: | +1 800 319 6413 | |
| Dial in: | +1 604 638 5340 | Access code: | 8618 | |
| Toll free: | +1 800 319 4610 | |||
About
Eldorado is a gold and base metals producer with mining, development and exploration operations in
Contacts
Investor Relations
604.757.2237 or 1.888.353.8166 [email protected]
Media
604.757.5573 or 1.888.353.8166 [email protected]
Non-IFRS and Other Financial Measures and Ratios
Certain non-IFRS financial measures and ratios are included in this press release, including cash operating costs and cash operating costs per ounce sold, total cash costs and total cash costs per ounce sold, all-in sustaining costs ("AISC") and AISC per ounce sold, sustaining and growth capital, average realized gold price per ounce sold, adjusted net earnings/(loss) attributable to shareholders, adjusted net earnings/(loss) per share attributable to shareholders, earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), free cash flow, working capital and cash flow from operating activities before changes in working capital.
Please see the
Reconciliation of Production Costs to Cash Operating Costs and Cash Operating Costs per ounce sold:
| Q1 2022 | Q1 2021 |
||||||
| Production costs (1) | $ | 104.6 | $ | 108.6 | |||
production costs (2) |
— | (15.3 | ) | ||||
| Production costs – excluding |
104.6 | 93.3 | |||||
| By-product credits | (15.6 | ) | (15.2 | ) | |||
| Royalty expense | (10.1 | ) | (5.2 | ) | |||
| Cash operating costs | $ | 78.9 | $ | 72.9 | |||
| Gold ounces sold | 94,472 | 113,594 | |||||
| Cash operating cost per ounce sold | $ | 835 | $ | 641 | |||
(1) Includes inventory write-downs.
(2) Base metals production, presented for Q1 2021. Operations at
Reconciliation of Cash Operating Costs and Cash Operating Cost per ounce sold, by asset, for the three months ended
| Direct mining costs | By-product credits | Refining and selling costs |
Inventory change (1) | Cash operating costs | Gold oz sold | Cash operating cost/oz sold | |||||||||||||||
| Kisladag | $ | 21.2 | $ | (0.7 | ) | $ | 0.6 | $ | 4.6 | $ | 25.7 | 29,778 | $ | 861 | |||||||
| Lamaque | 26.5 | (0.3 | ) | 0.1 | (0.1 | ) | 26.1 | 34,125 | 763 | ||||||||||||
| Efemcukuru | 12.5 | — | 1.5 | (0.2 | ) | 13.9 | 21,382 | 648 | |||||||||||||
| Olympias | 25.9 | (14.5 | ) | 3.5 | (1.7 | ) | 13.3 | 9,187 | 1,449 | ||||||||||||
| Total consolidated | $ | 86.2 | $ | (15.6 | ) | $ | 5.6 | $ | 2.6 | $ | 78.9 | 94,472 | $ | 835 | |||||||
(1) Inventory change adjustments result from timing differences between when inventory is produced and when it is sold.
Reconciliation of Cash Operating Costs and Cash Operating Cost per ounce sold, by asset, for the three months ended
| Direct mining costs | By-product credits | Refining and selling costs |
Inventory change (1) | Cash operating costs | Gold oz sold | Cash operating cost/oz sold | |||||||||||||||
| Kisladag | $ | 23.4 | $ | (0.8 | ) | $ | 0.1 | $ | 0.6 | $ | 23.4 | 47,507 | $ | 492 | |||||||
| Lamaque | 23.2 | (0.4 | ) | 0.1 | (0.8 | ) | 22.1 | 29,078 | 759 | ||||||||||||
| Efemcukuru | 12.1 | (1.1 | ) | 1.2 | 0.4 | 12.7 | 24,130 | 525 | |||||||||||||
| Olympias | 22.7 | (12.9 | ) | 3.6 | 1.4 | 14.7 | 12,879 | 1,145 | |||||||||||||
| Total consolidated | $ | 81.4 | $ | (15.2 | ) | $ | 5.0 | $ | 1.7 | $ | 72.9 | 113,594 | $ | 641 | |||||||
(1) Inventory change adjustments result from timing differences between when inventory is produced and when it is sold.
Reconciliation of Cash Operating Costs to Total Cash Costs and Total Cash Costs per ounce sold:
| Q1 2022 | Q1 2021 |
||||
| Cash operating costs | $ | 78.9 | $ | 72.9 | |
| Royalties | 10.1 | 5.2 | |||
| Total cash costs | $ | 88.9 | $ | 78.0 | |
| Gold ounces sold | 94,472 | 113,594 | |||
| Total cash costs per ounce sold | $ | 941 | $ | 687 | |
Reconciliation of Total Cash Costs to All-in Sustaining Costs and All-in Sustaining Costs per ounce sold:
| Q1 2022 | Q1 2021 |
||||
| Total cash costs | $ | 88.9 | $ | 78.0 | |
| Corporate and allocated G&A | 11.5 | 9.6 | |||
| Exploration and evaluation costs | 0.7 | 2.6 | |||
| Reclamation costs and amortization | 1.7 | 1.4 | |||
| Sustaining capital expenditure | 24.5 | 20.5 | |||
| AISC | $ | 127.3 | $ | 112.0 | |
| Gold ounces sold | 94,472 | 113,594 | |||
| AISC per ounce sold | $ | 1,347 | $ | 986 | |
Reconciliation of All-in Sustaining Costs and All-in Sustaining Costs per ounce sold, by operating asset and corporate office, for the three months ended
| Cash operating costs | Royalties | Total cash costs | Corporate & allocated G&A | Exploration costs | Reclamation costs and amortization | Sustaining capex | Total AISC |
Gold oz sold | Total AISC/ oz sold |
||||||||||
| Kisladag | $ | 25.7 | $ | 3.7 | $ | 29.3 | $ | — | $ | — | $ | 0.4 | $ | 2.5 | $ | 32.3 | 29,778 | $ | 1,084 |
| Lamaque | 26.1 | 0.8 | 26.9 | — | 0.3 | 0.1 | 13.0 | $ | 40.3 | 34,125 | 1,182 | ||||||||
| Efemcukuru | 13.9 | 3.1 | 16.9 | 0.2 | 0.1 | 0.6 | 3.5 | $ | 21.4 | 21,382 | 999 | ||||||||
| Olympias | 13.3 | 2.5 | 15.8 | — | 0.2 | 0.4 | 5.6 | $ | 22.0 | 9,187 | 2,399 | ||||||||
| Corporate (1) | — | — | — | 11.3 | — | — | — | $ | 11.3 | — | 120 | ||||||||
| Total consolidated | $ | 78.9 | $ | 10.1 | $ | 88.9 | $ | 11.5 | $ | 0.7 | $ | 1.7 | $ | 24.5 | $ | 127.3 | 94,472 | $ | 1,347 |
(1) Excludes general and administrative expenses related to business development activities and projects. Includes share based payments expense and defined benefit pension plan expense. AISC per ounce sold has been calculated using total consolidated gold ounces sold.
Reconciliation of All-in Sustaining Costs and All-in Sustaining Costs per ounce sold, by operating asset and corporate office, for the three months ended
| Cash operating costs | Royalties | Total cash costs | Corporate & allocated G&A | Exploration costs | Reclamation costs and amortization | Sustaining capex | Total AISC |
Gold oz sold | Total AISC/ oz sold |
||||||||||
| Kisladag | $ | 23.4 | $ | 2.1 | $ | 25.5 | $ | — | $ | — | $ | 0.5 | $ | 2.8 | $ | 28.8 | 47,507 | $ | 607 |
| Lamaque | 22.1 | 0.5 | 22.6 | — | 1.7 | 0.2 | 9.3 | 33.8 | 29,078 | 1,162 | |||||||||
| Efemcukuru | 12.7 | 0.8 | 13.5 | — | 0.4 | 0.2 | 2.6 | 16.7 | 24,130 | 693 | |||||||||
| Olympias | 14.7 | 1.7 | 16.4 | — | 0.4 | 0.5 | 5.8 | 23.2 | 12,879 | 1,799 | |||||||||
| Corporate (1) | — | — | — | 9.5 | — | — | — | 9.5 | — | 84 | |||||||||
| Total consolidated | $ | 72.9 | $ | 5.2 | $ | 78.0 | $ | 9.6 | $ | 2.6 | $ | 1.4 | $ | 20.5 | $ | 112.0 | 113,594 | $ | 986 |
(1) Excludes general and administrative expenses related to business development activities and projects. Includes share based payments expense and defined benefit pension plan expense. AISC per ounce sold has been calculated using total consolidated gold ounces sold.
Reconciliation of general and administrative expenses included in All-in Sustaining Costs:
| Q1 2022 | Q1 2021 |
||||||
| General and administrative expenses(from consolidated statement of operations) | $ | 8.3 | $ | 10.1 | |||
| Add: | |||||||
| Share-based payments expense | 3.7 | 1.8 | |||||
| Employee benefit plan expense from corporate and operating gold mines | 1.8 | 0.7 | |||||
| Less: | |||||||
| General and administrative expenses related to non-gold mines and in-country offices | (0.2 | ) | (0.2 | ) | |||
| Depreciation in G&A | (0.6 | ) | (0.6 | ) | |||
| Business development | (0.5 | ) | (1.7 | ) | |||
| Development projects | (1.1 | ) | (0.7 | ) | |||
| Adjusted corporate general and administrative expenses | $ | 11.3 | $ | 9.5 | |||
| Regional general and administrative costs allocated to gold mines | 0.2 | 0.1 | |||||
| Corporate and allocated general and administrative expenses per AISC | $ | 11.5 | $ | 9.6 | |||
Reconciliation of exploration costs included in All-in Sustaining Costs:
| Q1 2022 | Q1 2021 |
||||||
| Exploration and evaluation expense(from consolidated statement of operations)(1) | $ | 5.9 | $ | 4.0 | |||
| Add: | |||||||
| Capitalized exploration cost related to operating gold mines | 0.7 | 1.7 | |||||
| Less: | |||||||
| Exploration and evaluation expenses related to non-gold mines and other sites | (5.9 | ) | (3.2 | ) | |||
| Exploration costs per AISC | $ | 0.7 | $ | 2.6 | |||
(1) The
Reconciliation of reclamation costs and amortization included in All-in Sustaining Costs:
| Q1 2022 | Q1 2021 |
||||||
| Asset retirement obligation accretion(from notes to the consolidated financial statements) | $ | 0.6 | $ | 0.4 | |||
| Add: | |||||||
| Depreciation related to asset retirement obligation assets | 1.2 | 1.1 | |||||
| Less: | |||||||
| Asset retirement obligation accretion related to non-gold mines and other sites | (0.1 | ) | (0.1 | ) | |||
| Reclamation costs and amortization per AISC | $ | 1.7 | $ | 1.4 | |||
Reconciliation of
| Q1 2022 | Q1 2021 |
||||||
| Additions to property, plant and equipment (1) (from segment note in the consolidated financial statements) |
$ | 60.8 | $ | 59.4 | |||
| Growth and development project capital expenditure (1) | (31.9 | ) | (34.8 | ) | |||
| Capitalized evaluation expenditure | (4.3 | ) | (1.8 | ) | |||
| Sustaining capital expenditure |
— | (1.5 | ) | ||||
| Sustaining capital expenditure equipment leases (3) | — | (0.7 | ) | ||||
| Corporate Leases | (0.1 | ) | — | ||||
| Sustaining capital expenditure at operating gold mines | $ | 24.5 | $ | 20.5 | |||
(1) The
(2) Base metals production, presented for Q1 2021. Operations at
(3) Sustaining lease principal and interest payments, net of non-cash lease additions.
Average realized gold price per ounce sold is reconciled for the periods presented as follows:
For the three months ended
| Revenue | Concentrate deductions (1) |
Less non-gold revenue | Gold revenue | Gold oz sold | Average realized gold price per ounce sold |
|||||||
| Kisladag | $ | 56.6 | $ | — | $ | (0.7 | ) | $ | 55.9 | 29,778 | $ | 1,876 |
| Lamaque | 64.9 | — | (0.3 | ) | 64.6 | 34,125 | 1,893 | |||||
| Efemcukuru | 41.3 | 0.9 | (0.9 | ) | 41.3 | 21,382 | 1,931 | |||||
| Olympias | 31.2 | 1.8 | (16.2 | ) | 16.7 | 9,187 | 1,817 | |||||
|
|
$ | 0.6 | $ | — | $ | (0.6 | ) | $ | — | N/A | N/A | |
| Total consolidated | $ | 194.7 | $ | 2.6 | $ | (18.9 | ) | $ | 178.4 | 94,472 | $ | 1,889 |
(1) Treatment charges, refining charges, penalties and other costs deducted from proceeds from gold concentrate sales.
For the three months ended
| Revenue | Concentrate deductions (1) |
Less non-gold revenue | Gold Revenue | Gold oz sold | Average realized gold price per ounce sold |
|||||||
| Kisladag | $ | 85.7 | $ | — | $ | (0.8 | ) | $ | 85.0 | 47,506 | $ | 1,788 |
| Lamaque | 52.0 | — | (0.4 | ) | 51.6 | 29,078 | 1,774 | |||||
| Efemcukuru | 39.8 | 1.1 | (1.1 | ) | 39.8 | 24,130 | 1,651 | |||||
| Olympias | 33.4 | — | (12.9 | ) | 20.4 | 12,879 | 1,586 | |||||
|
|
$ | 13.7 | $ | — | $ | (13.7 | ) | $ | — | N/A | N/A | |
| Total consolidated | $ | 224.6 | $ | 1.1 | $ | (28.9 | ) | $ | 196.8 | 113,593 | $ | 1,732 |
(1) Treatment charges, refining charges, penalties and other costs deducted from proceeds from gold concentrate sales.
Reconciliation of Net Earnings (Loss) attributable to shareholders of the Company to Adjusted Net Earnings (Loss) attributable to shareholders of the Company:
| Continuing Operations (1) | Q1 2022 | Q1 2021 |
||||
| Net (loss) earnings attributable to shareholders of the Company (2) | $ | (316.8 | ) | $ | 14.3 | |
| Impairment of property, plant and equipment, net of tax (3) | 278.0 | — | ||||
| Loss on foreign exchange translation of deferred tax balances | 12.4 | 10.2 | ||||
| (Gain) loss on redemption option derivative | (7.0 | ) | 0.7 | |||
| Gain on deferred tax due to changes in tax rates (4) | (1.0 | ) | — | |||
| Write-down of assets, net of tax (5) | 15.4 | — | ||||
| Total adjusted net (loss) earnings | $ | (19.0 | ) | $ | 25.2 | |
| Weighted average shares outstanding | 182,362 | 174,534 | ||||
| Adjusted net (loss) earnings per share ($/share) | $ | (0.10 | ) | $ | 0.14 | |
(1) The
(2) Q1 2021 amounts have been recast to correct an immaterial error related to an understatement of the net book value of certain of our property, plant and equipment as a result of errors in the amounts recorded for depreciation.
(3) Impairment of Certej project in Q1 2022, attributable to shareholders of the Company and net of tax.
(4) Deferred tax recovery relating to the adjustment of opening balances for the tax rate decrease in
(5) Non-recurring asset write-downs in Q1 2022 include decommissioned equipment at Kisladag as a result of installation and commissioning of the HPGR.
Reconciliation of Net Earnings (Loss) before income tax to EBITDA and Adjusted EBITDA:
| Continuing Operations | Q1 2022 | Q1 2021 |
|||||
| (Loss) earnings before income tax (1)(2) | $ | (379.1 | ) | $ | 43.1 | ||
| Depreciation and amortization (1,2,3) | 51.2 | 53.1 | |||||
| Interest income | (0.5 | ) | (0.3 | ) | |||
| Finance costs (2) | 2.2 | 10.3 | |||||
| EBITDA | $ | (326.2 | ) | $ | 106.2 | ||
| Impairment of property, plant and equipment(4) | 365.4 | — | |||||
| Other write-down of assets(5) | 19.8 | — | |||||
| Share-based payments expense | 3.7 | 1.8 | |||||
| (Gain) loss on disposal of assets(2) | (0.6 | ) | 0.3 | ||||
| Adjusted EBITDA | $ | 62.1 | $ | 108.3 | |||
(1) Q1 2021 amounts have been recast to correct an immaterial error related to an understatement of the net book value of certain of our property, plant and equipment as a result of errors in the amounts recorded for depreciation.
(2) The
(3) Includes depreciation within general and administrative expenses.
(4) Impairment of Certej project in Q1 2022.
(5) Deferred tax recovery relating to the adjustment of opening balances for the tax rate decrease in
(6) Non-recurring asset write-downs in Q1 2022 include decommissioned equipment at Kisladag as a result of installation and commissioning of the HPGR.
Reconciliation of Net Cash Generated from Operating Activities to Free Cash Flow:
| Continuing Operations | Q1 2022 | Q1 2021 |
|||||
| Net cash generated from (used in) operating activities (1,2) | $ | 35.2 | $ | 99.1 | |||
| Less: Cash used in investing activities (2) | (122.1 | ) | (9.7 | ) | |||
| Add back: Increase (decrease) in term deposits | 60.0 | (56.1 | ) | ||||
| Add back: (Decrease) increase in restricted cash | — | 0.1 | |||||
| Free cash flow | $ | (26.8 | ) | $ | 33.4 | ||
(1) Q1 2021 amounts have been restated for a voluntary change in accounting policy to classify cash paid for interest on the statement of cash flows as a financing, rather than an operating activity.
(2) The
Working capital for the periods highlighted is as follows:
| As at |
As at |
||||
| Current assets | $ | 681.4 | $ | 728.2 | |
| Less: Current liabilities | 188.1 | 206.7 | |||
| Working capital | $ | 493.3 | $ | 521.6 | |
Reconciliation of Net Cash Generated from Operating Activities to Cash Flow from Operating Activities Before Changes in Working Capital:
| Continuing operations | Q1 2022 | Q1 2021 |
||||
| Net cash generated from (used in) operating activities (1,2) | $ | 35.2 | $ | 99.1 | ||
| Less: Changes in non-cash working capital (3) | (14.5 | ) | 18.0 | |||
| Cash flow from operating activities before changes in working capital | $ | 49.7 | $ | 81.2 | ||
(1) Q1 2021 amounts have been restated for a voluntary change in accounting policy to classify cash paid for interest on the statement of cash flows as a financing, rather than an operating activity.
(2) The
(3) Q1 2021 amounts have been recast to correct an immaterial error related to an understatement of the net book value of certain of our property, plant and equipment as a result of errors in the amounts recorded for depreciation.
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 "ahead", “believes”, “continue”, “expects”, “focus”, “guidance”, “intends”, "outlook", “plans”, "target" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “can”, “could”, "may", "might", “will” or "would" 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: the duration, extent and other implications of production challenges and cost increases, including those in respect of COVID-19 and restrictions and suspensions with respect to the Company's operations; the Company’s 2022 annual guidance, including our individual mine production; the Ormaque exploration drift; resource conversion drilling; the optimization and development of Greek operations; the Company's conference call to be held on
We have made certain assumptions about the forward-looking statements and information, including assumptions about: our preliminary gold production and our guidance, benefits of the completion of the decline at Lamaque, the improvements at Kisladag and the optimization of Greek operations; tax expenses in
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: inability to meet production guidance; inability to achieve the expected benefits of the completion of the decline at Lamaque, the improvements at Kisladag and the optimization of Greek operations; inability to assess income tax expenses in
The inclusion of 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
Qualified Person
Except as otherwise noted,
Condensed Consolidated Interim Statements of Financial Position
As at
(Unaudited – in thousands of
| As at | Note | ||||||||
| ASSETS | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 374,677 | $ | 481,327 | |||||
| Term deposits | 60,000 | — | |||||||
| Accounts receivable and other | 5 | 61,031 | 68,745 | ||||||
| Inventories | 6 | 185,707 | 178,163 | ||||||
| 681,415 | 728,235 | ||||||||
| Restricted cash | 2,201 | 2,674 | |||||||
| Other assets | 109,255 | 104,023 | |||||||
| Property, plant and equipment | 3,625,931 | 4,003,211 | |||||||
|
|
92,591 | 92,591 | |||||||
| $ | 4,511,393 | $ | 4,930,734 | ||||||
| LIABILITIES & EQUITY | |||||||||
| Current liabilities | |||||||||
| Accounts payable and accrued liabilities | $ | 178,017 | $ | 195,334 | |||||
| Current portion of lease liabilities | 5,973 | 7,228 | |||||||
| Current portion of asset retirement obligations | 4,088 | 4,088 | |||||||
| 188,078 | 206,650 | ||||||||
| Debt | 7 | 482,770 | 489,763 | ||||||
| Lease liabilities | 14,151 | 14,895 | |||||||
| Employee benefit plan obligations | 9,011 | 8,942 | |||||||
| Asset retirement obligations | 131,615 | 131,367 | |||||||
| Deferred income tax liabilities | 428,907 | 439,195 | |||||||
| 1,254,532 | 1,290,812 | ||||||||
| Equity | |||||||||
| Share capital | 11 | 3,240,665 | 3,225,326 | ||||||
stock |
(20,454 | ) | (10,289 | ) | |||||
| Contributed surplus | 2,610,136 | 2,615,459 | |||||||
| Accumulated other comprehensive loss | (19,773 | ) | (20,905 | ) | |||||
| Deficit | (2,556,048 | ) | (2,239,226 | ) | |||||
| Total equity attributable to shareholders of the Company | 3,254,526 | 3,570,365 | |||||||
| Attributable to non-controlling interests | 2,335 | 69,557 | |||||||
| 3,256,861 | 3,639,922 | ||||||||
| $ | 4,511,393 | $ | 4,930,734 | ||||||
Approved on behalf of the Board of Directors
| (signed) John Webster | Director | (signed) |
Director |
Date of approval:
Condensed Consolidated Interim Statements of Operations
For the three months ended
(Unaudited – in thousands of
| Note | Three months ended |
Three months ended |
|||||||
| Revenue | |||||||||
| Metal sales | 8 | $ | 194,672 | $ | 224,619 | ||||
| Cost of sales | |||||||||
| Production costs | 104,556 | 108,560 | |||||||
| Depreciation and amortization | 50,635 | 52,486 | |||||||
| 155,191 | 161,046 | ||||||||
| Earnings from mine operations | 39,481 | 63,573 | |||||||
| Exploration and evaluation expenses | 5,861 | 4,008 | |||||||
| Mine standby costs | 9 | 11,708 | 1,611 | ||||||
| General and administrative expenses | 8,291 | 10,140 | |||||||
| Employee benefit plan expense | 1,841 | 749 | |||||||
| Share-based payments expense | 12 | 3,650 | 1,781 | ||||||
| Impairment of property, plant, and equipment | 4 | 365,426 | — | ||||||
| Write-down (recovery) of assets | 24,141 | (750 | ) | ||||||
| Foreign exchange gain | (2,720 | ) | (6,080 | ) | |||||
| (Loss) earnings from operations | (378,717 | ) | 52,114 | ||||||
| Other income | 10 | 1,743 | 1,299 | ||||||
| Finance costs | 10 | (2,166 | ) | (10,335 | ) | ||||
| (Loss) earnings from continuing operations before income tax | (379,140 | ) | 43,078 | ||||||
| Income tax expense | 5,074 | 26,838 | |||||||
| Net (loss) earnings from continuing operations | (384,214 | ) | 16,240 | ||||||
| Net loss from discontinued operations, net of tax | — | (2,394 | ) | ||||||
| Net (loss) earnings for the period | $ | (384,214 | ) | $ | 13,846 | ||||
| Attributable to: | |||||||||
| Shareholders of the Company | (316,822 | ) | 11,941 | ||||||
| Non-controlling interests | (67,392 | ) | 1,905 | ||||||
| Net (loss) earnings for the period | $ | (384,214 | ) | $ | 13,846 | ||||
| (Loss) earnings attributable to shareholders of the Company: | |||||||||
| Continuing operations | (316,822 | ) | 14,335 | ||||||
| Discontinued operations | — | (2,394 | ) | ||||||
| $ | (316,822 | ) | $ | 11,941 | |||||
| Weighted average number of shares outstanding (thousands) | |||||||||
| Basic | 182,362 | 174,534 | |||||||
| Diluted | 182,362 | 177,234 | |||||||
| Net (loss) earnings per share attributable to shareholders of the Company: | |||||||||
| Basic (loss) earnings per share | $ | (1.74 | ) | $ | 0.07 | ||||
| Diluted (loss) earnings per share | $ | (1.74 | ) | $ | 0.07 | ||||
| Net (loss) earnings per share attributable to shareholders of the Company - Continuing operations | |||||||||
| Basic (loss) earnings per share | $ | (1.74 | ) | $ | 0.08 | ||||
| Diluted (loss) earnings per share | $ | (1.74 | ) | $ | 0.08 | ||||
Condensed Consolidated Interim Statements of Comprehensive Income (Loss)
For the three months ended
(Unaudited – in thousands of
| Three months ended |
Three months ended |
||||||||
| Net (loss) earnings for the period | $ | (384,214 | ) | $ | 13,846 | ||||
| Other comprehensive (loss) income: | |||||||||
| Items that will not be reclassified to earnings or loss: | |||||||||
| Change in fair value of investments in marketable securities, net of tax | 2,049 | (125 | ) | ||||||
| Actuarial losses on employee benefit plans, net of tax | (917 | ) | (34 | ) | |||||
| Total other comprehensive earnings (loss) for the period | 1,132 | (159 | ) | ||||||
| Total comprehensive (loss) income for the period | $ | (383,082 | ) | $ | 13,687 | ||||
| Attributable to: | |||||||||
| Shareholders of the Company | (315,690 | ) | 11,782 | ||||||
| Non-controlling interests | (67,392 | ) | 1,905 | ||||||
| $ | (383,082 | ) | $ | 13,687 | |||||
Condensed Consolidated Interim Statements of Cash Flows
For the three months ended
(Unaudited – in thousands of
| Note | Three months ended |
Three months ended |
|||||||
| Cash flows generated from (used in): | |||||||||
| Operating activities | |||||||||
| Net (loss) earnings for the period from continuing operations | $ | (384,214 | ) | $ | 16,240 | ||||
| Adjustments for: | |||||||||
| Depreciation and amortization | 51,226 | 53,063 | |||||||
| Finance costs | 2,166 | 10,338 | |||||||
| Interest income | (475 | ) | (302 | ) | |||||
| Unrealized foreign exchange gain | (484 | ) | (2,364 | ) | |||||
| Income tax expense | 5,074 | 26,838 | |||||||
| (Gain) loss on disposal of assets | (582 | ) | 324 | ||||||
| Impairment of property, plant, and equipment | 365,426 | — | |||||||
| Write-down (recovery) of assets | 24,141 | (750 | ) | ||||||
| Share-based payments expense | 12 | 3,650 | 1,781 | ||||||
| Employee benefit plan expense | 1,841 | 749 | |||||||
| 67,769 | 105,917 | ||||||||
| Property reclamation payments | (312 | ) | (335 | ) | |||||
| Employee benefit plan payments | (2,250 | ) | (232 | ) | |||||
| Income taxes paid | (15,939 | ) | (24,496 | ) | |||||
| Interest received | 475 | 302 | |||||||
| Changes in non-cash working capital | 13 | (14,499 | ) | 17,970 | |||||
| Net cash generated from operating activities of continuing operations | 35,244 | 99,126 | |||||||
| Net cash used in operating activities of discontinued operations | — | (6,051 | ) | ||||||
| Investing activities | |||||||||
| Purchase of property, plant and equipment | (51,996 | ) | (63,991 | ) | |||||
| Proceeds from the sale of property, plant and equipment | 1,076 | 792 | |||||||
| Value added taxes related to mineral property expenditures, net | (11,133 | ) | (2,568 | ) | |||||
| (Increase) decrease in term deposits | (60,000 | ) | 56,130 | ||||||
| Increase in restricted cash | — | (73 | ) | ||||||
| Net cash used in investing activities of continuing operations | (122,053 | ) | (9,710 | ) | |||||
| Net cash used in investing activities of discontinued operations | — | (507 | ) | ||||||
| Financing activities | |||||||||
| Issuance of common shares, net of issuance costs | 13,118 | 11,834 | |||||||
| Contributions from non-controlling interests | 170 | 324 | |||||||
| Repayments of borrowings | — | (11,100 | ) | ||||||
| Interest paid | (16,888 | ) | (2,205 | ) | |||||
| Principal portion of lease liabilities | (2,272 | ) | (2,758 | ) | |||||
| Purchase of treasury stock | (13,969 | ) | — | ||||||
| Net cash used in financing activities of continuing operations | (19,841 | ) | (3,905 | ) | |||||
| Net cash used in financing activities of discontinued operations | — | (12 | ) | ||||||
| Net (decrease) increase in cash and cash equivalents | (106,650 | ) | 78,941 | ||||||
| Cash and cash equivalents - beginning of period | 481,327 | 451,962 | |||||||
| Cash and cash equivalents - end of period | $ | 374,677 | $ | 530,903 | |||||
Condensed Consolidated Interim Statements of Changes in Equity
For the three months ended
(Unaudited – in thousands of
| Note | Three months ended |
Three months ended |
|||||||
| Share capital | |||||||||
| Balance beginning of period | $ | 3,225,326 | $ | 3,144,644 | |||||
| Shares issued upon exercise of share options | 3,872 | 717 | |||||||
| Shares issued upon exercise of performance share units | 2,256 | — | |||||||
| Transfer of contributed surplus on exercise of options | 1,563 | 285 | |||||||
| Shares issued to the public, net of share issuance costs | 7,648 | 11,471 | |||||||
| Share issued on acquisition of QMX Gold Corporation | — | — | |||||||
| Balance end of period | 11 | $ | 3,240,665 | $ | 3,157,117 | ||||
stock |
|||||||||
| Balance beginning of period | $ | (10,289 | ) | $ | (11,452 | ) | |||
| Purchase of treasury stock | (13,969 | ) | — | ||||||
| Shares redeemed upon exercise of restricted share units | 3,804 | 573 | |||||||
| Balance end of period | $ | (20,454 | ) | $ | (10,879 | ) | |||
| Contributed surplus | |||||||||
| Balance beginning of period | $ | 2,615,459 | $ | 2,638,008 | |||||
| Share-based payments arrangements | 2,300 | 1,917 | |||||||
| Shares redeemed upon exercise of restricted share units | (3,804 | ) | (573 | ) | |||||
| Shares redeemed upon exercise of performance share units | (2,256 | ) | — | ||||||
| Transfer to share capital on exercise of options | (1,563 | ) | (285 | ) | |||||
| Balance end of period | $ | 2,610,136 | $ | 2,639,067 | |||||
| Accumulated other comprehensive loss | |||||||||
| Balance beginning of period | $ | (20,905 | ) | $ | (21,822 | ) | |||
| Other comprehensive earnings (loss) for the period attributable to shareholders of the Company | 1,132 | (159 | ) | ||||||
| Balance end of period | $ | (19,773 | ) | $ | (21,981 | ) | |||
| Deficit | |||||||||
| Balance beginning of period | $ | (2,239,226 | ) | $ | (2,103,206 | ) | |||
| Net (loss) earnings attributable to shareholders of the Company | (316,822 | ) | 11,941 | ||||||
| Balance end of period | $ | (2,556,048 | ) | $ | (2,091,265 | ) | |||
| Total equity attributable to shareholders of the Company | $ | 3,254,526 | $ | 3,672,059 | |||||
| Non-controlling interests | |||||||||
| Balance beginning of period | $ | 69,557 | $ | 40,873 | |||||
| (Loss) earnings attributable to non-controlling interests | (67,392 | ) | 1,905 | ||||||
| Contributions from non-controlling interests | 170 | 324 | |||||||
| Balance end of period | $ | 2,335 | $ | 43,102 | |||||
| Total equity | $ | 3,256,861 | $ | 3,715,161 | |||||
Please see the Condensed Consolidated Interim Financial Statements dated
Source: