Eldorado Gold Reports Q2 2022 Financial and Operational Results; Updates Full-Year Consolidated Cost Guidance
Second Quarter 2022 Highlights
Operations
-
Gold production: 113,462 ounces, an increase of 22% from Q1 2022 production, driven by strong production and mine development at Lamaque.
-
Gold sales: 107,631 ounces at an average realized gold price per ounce sold1 of
$1,849 . -
Production costs:
$109.3 million . -
Cash operating costs1:
$789 per ounce sold. Costs were primarily driven by lower gold production and an increase in the price of certain commodities and consumables required for safe operations, however the price increases were partly offset by the weakening of local currencies in which costs are incurred, particularly the Turkish Lira and Euro. -
All-in sustaining costs ("AISC")1:
$1,270 per ounce sold, driven by higher cash operating costs per ounce sold and sustaining capital expenditures. -
Total capital expenditures:
$83.2 million , including$32.3 million of sustaining capital1, primarily focused on underground development and construction at Lamaque. Growth capital1 of$26.4 million focused on waste stripping at Kisladag and construction of the first phase of the North leach pad to support the mine life extension.$9.1 million of capital expenditures spent at Skouries include advancing site access, completing building enclosures, and geotechnical and drilling activities. -
Skouries growth capital: As a bridge to the completion of a financing package, an additional
$30 to$40 million of growth capital will be allocated to the project. Total growth capital at Skouries is now expected to be$60 to$80 million in 2022. -
2022 outlook: We expect production to be second-half weighted and maintain our 2022 production guidance of 460,000 to 490,000 ounces and are tracking toward the lower end of the range as a result of production challenges in Q1 2022. We are updating our 2022 guidance for consolidated cash operating costs1 to
$700 to$750 per ounce sold, total cash costs1 to$790 to$840 per ounce sold and AISC1 to$1,180 to$1,280 per ounce sold.
Financial
-
Cash flow from operating activities before changes in working capital1:
$48.3 million . -
Cash, cash equivalents and term deposits:
$370.0 million , as atJune 30, 2022 . -
Earnings before interest, taxes, depreciation and amortization ("EBITDA"):
$89.1 million . -
Adjusted EBITDA1:
$87.6 million . -
Net loss:
$22.7 million , or a loss of$0.12 per share. -
Adjusted net earnings2:
$13.8 million net earnings, or$0.08 earnings per share. Adjusted net earnings removed a$23.3 million loss on foreign exchange due to translation of deferred tax balances, and a$14.4 million loss on the non-cash revaluation of the derivative related to redemption options in our debt. - Free cash flow2: Negative
$62.8 million , primarily due to lower gold production and sales, annual royalty payments and mine standby costs.
“We had a steady operational quarter, driven by solid production and higher grades at Lamaque and consistent operations at Efemcukuru," said
"Considerable progress was made at Skouries during the quarter, with activity focused on execution readiness and critical path activities in engineering, procurement and siteenabling works. We look forward to updating the market as we continue to work towards financing and Board approval for the restart of construction at Skouries," continued Burns.
"Additionally, during the quarter we published our 10th annual Sustainability Report. I'm proud of the global team for the progress we've made on our goals and initiatives. Specifically, we have exceeded gender parity on our Board, and demonstrated leadership in regard to local employment and procurement."
Consolidated Financial and Operational Highlights
| 3 months ended |
6 months ended |
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| Continuing operations (5) | 2022 | 2021 | 2022 | 2021 | ||||||||||
| Revenue | $ | 213.4 | $ | 233.2 | $ | 408.1 | $ | 457.8 | ||||||
| Gold produced (oz) | 113,462 | 116,066 | 206,671 | 227,808 | ||||||||||
| Gold sold (oz) | 107,631 | 114,140 | 202,103 | 227,734 | ||||||||||
| Average realized gold price ($/oz sold) (2) | $ | 1,849 | $ | 1,840 | $ | 1,868 | $ | 1,786 | ||||||
| Production costs | 109.3 | 112.8 | 213.9 | 221.4 | ||||||||||
| Cash operating costs ($/oz sold) (2,3) | 789 | 645 | 810 | 643 | ||||||||||
| Total cash costs ($/oz sold) (2,3) | 879 | 746 | 908 | 716 | ||||||||||
| All-in sustaining costs ($/oz sold) (2,3) | 1,270 | 1,074 | 1,306 | 1,030 | ||||||||||
| Net (loss) earnings for the period (1) | (22.7 | ) | 31.0 | (339.5 | ) | 45.4 | ||||||||
| Net (loss) earnings per share – basic ($/share) (1) | (0.12 | ) | 0.17 | (1.85 | ) | 0.25 | ||||||||
| Adjusted net earnings (loss) (1,2) | 13.8 | 29.1 | (5.1 | ) | 54.3 | |||||||||
| Adjusted net earnings (loss) per share ($/share) (1,2) | 0.08 | 0.16 | (0.03 | ) | 0.30 | |||||||||
| Net cash generated from operating activities (4) | 26.9 | 49.0 | 62.2 | 148.1 | ||||||||||
| Cash flow from operating activities before changes in working capital (2,4) | 48.3 | 75.9 | 98.1 | 157.0 | ||||||||||
| Free cash flow (2,4) | (62.8 | ) | (23.7 | ) | (89.6 | ) | 9.7 | |||||||
| Cash, cash equivalents and term deposits | $ | 370.0 | $ | 410.7 | $ | 370.0 | $ | 410.7 | ||||||
(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) 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.
(5) Amounts presented are from continuing operations only. The
Total revenue was
Production costs decreased to
Cash operating costs in Q2 2022 averaged
AISC per ounce sold averaged
We reported net loss attributable to shareholders from continuing operations of
Adjusted net earnings were
Quarterly Operations Update
| 3 months ended |
6 months ended |
||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||
| Consolidated | |||||||||||
| Ounces produced | 113,462 | 116,066 | 206,671 | 227,808 | |||||||
| Ounces sold | 107,631 | 114,140 | 202,103 | 227,734 | |||||||
| Production costs (1) | $ | 109.3 | $ | 112.8 | $ | 213.9 | $ | 221.4 | |||
| Cash operating costs ($/oz sold) (2,3) | $ | 789 | $ | 645 | $ | 810 | $ | 643 | |||
| All-in sustaining costs ($/oz sold) (2,3) | $ | 1,270 | $ | 1,074 | $ | 1,306 | $ | 1,030 | |||
| Sustaining capital expenditures (3) | $ | 32.3 | $ | 24.2 | $ | 56.8 | $ | 44.7 | |||
| Kisladag | |||||||||||
| Ounces produced | 27,973 | 44,016 | 57,753 | 90,188 | |||||||
| Ounces sold | 26,881 | 44,049 | 56,659 | 91,555 | |||||||
| Production costs | $ | 25.1 | $ | 28.6 | $ | 55.2 | $ | 54.9 | |||
| Cash operating costs ($/oz sold) (2,3) | $ | 798 | $ | 529 | $ | 831 | $ | 510 | |||
| All-in sustaining costs ($/oz sold) (2,3) | $ | 1,090 | $ | 728 | $ | 1,087 | $ | 665 | |||
| Sustaining capital expenditures (3) | $ | 4.3 | $ | 3.7 | $ | 6.8 | $ | 6.5 | |||
| Lamaque | |||||||||||
| Ounces produced | 46,917 | 35,643 | 80,294 | 64,478 | |||||||
| Ounces sold | 45,655 | 34,677 | 79,780 | 63,755 | |||||||
| Production costs | $ | 31.5 | $ | 24.0 | $ | 58.7 | $ | 47.0 | |||
| Cash operating costs ($/oz sold) (2,3) | $ | 657 | $ | 658 | $ | 703 | $ | 704 | |||
| All-in sustaining costs ($/oz sold) (2,3) | $ | 985 | $ | 1,065 | $ | 1,069 | $ | 1,109 | |||
| Sustaining capital expenditures (3) | $ | 13.5 | $ | 11.0 | $ | 26.5 | $ | 20.3 | |||
| Efemcukuru | |||||||||||
| Ounces produced | 22,793 | 23,473 | 43,849 | 46,771 | |||||||
| Ounces sold | 23,428 | 23,006 | 44,810 | 47,136 | |||||||
| Production costs | $ | 20.6 | $ | 17.9 | $ | 37.5 | $ | 32.5 | |||
| Cash operating costs ($/oz sold) (2,3) | $ | 706 | $ | 525 | $ | 678 | $ | 525 | |||
| All-in sustaining costs ($/oz sold) (2,3) | $ | 1,180 | $ | 917 | $ | 1,093 | $ | 802 | |||
| Sustaining capital expenditures (3) | $ | 5.9 | $ | 3.8 | $ | 9.4 | $ | 6.3 | |||
| Olympias | |||||||||||
| Ounces produced | 15,779 | 12,934 | 24,775 | 26,371 | |||||||
| Ounces sold | 11,667 | 12,409 | 20,854 | 25,288 | |||||||
| Production costs | $ | 32.1 | $ | 28.5 | $ | 62.4 | $ | 57.9 | |||
| Cash operating costs ($/oz sold) (2,3) | $ | 1,446 | $ | 1,237 | $ | 1,447 | $ | 1,190 | |||
| All-in sustaining costs ($/oz sold) (2,3) | $ | 2,346 | $ | 1,893 | $ | 2,369 | $ | 1,845 | |||
| Sustaining capital expenditures (3) | $ | 8.5 | $ | 5.7 | $ | 14.1 | $ | 11.5 | |||
(1) Includes production costs of
(2) Revenues from silver, lead and zinc sales are off-set against cash operating costs.
(3) 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 27,973 ounces of gold in Q2 2022, a decrease of 36% from 44,016 ounces in Q2 2021. The expected decrease in production was due to lower tonnes placed on the heap leach pad in the first quarter due to COVID-19 related absenteeism, severe weather and a government-mandated power outage. Average grade of 0.76 grams per tonne in Q2 2022 decreased slightly from 0.81 grams per tonne in Q2 2021 but increased from 0.61 grams per tonne in Q1 2022.
Ore tonnes placed on the heap leach pad in Q2 2022 increased 40% from Q1 2022 as production ramped up in the quarter following snowfall and prolonged freezing temperatures in Q1 2022 that impacted the ore conveyance and stacking system, reducing productivity. However, tonnes placed in the quarter were lower than in Q2 2021 due to continued optimization of the high-pressure grinding roll circuit ("HPGR") and debottlenecking of the belt agglomeration circuit. The HPGR is performing to plan with recovery rates as expected. Increased tonnes placed on the heap leach pad in Q2 2022 are expected to positively impact gold production in the second half of 2022.
Revenue decreased to
Production costs decreased to
AISC per ounce sold increased to
Sustaining capital expenditures of
Growth capital expenditures of
In conjunction with the North heap leach pad, we are investing in additional higher-capacity mobile conveyors which are expected to enhance materials handling capabilities in the belt agglomeration circuit and increase throughput. Installation is expected to be complete in late 2022. We are also installing an agglomeration drum, expected to be commissioned in the first half of 2023, which is expected to improve the quality, consistency and permeability of the agglomeration process. With these investments, stacking is expected to continue on the existing heap leach pad until mid-2023, at which time stacking is expected to commence on the North heap leach pad.
Lamaque
Lamaque produced 46,917 ounces of gold in Q2 2022, an increase of 32% from 35,643 ounces in Q2 2021 due to strong throughput and higher grade. The expected increase in production from Q1 2022 also resulted from higher throughput combined with the development of higher-grade stopes following delays in the first quarter due to COVID-19 related absenteeism. Average grade increased to 6.63 grams per tonne in Q2 2022 from 5.98 grams per tonne in Q2 2021 and from 5.27 grams per tonne in Q1 2022.
Revenue increased to
Production costs increased to
AISC per ounce sold decreased to
Sustaining capital expenditures of
Efemcukuru
Efemcukuru produced 22,793 payable ounces of gold in Q2 2022, a 3% decrease from 23,473 payable ounces in Q2 2021. The decrease was due to a planned decrease in grade to 5.96 grams per tonne in Q2 2022 from 6.60 grams per tonne in Q2 2021, and was partly offset by higher throughput in the quarter.
Revenue decreased to
Production costs increased to
AISC per ounce sold increased to
Sustaining capital expenditures of
Olympias
Olympias produced 15,779 ounces of gold in Q2 2022, a 22% increase from 12,934 ounces in Q2 2021 and primarily reflected higher average gold grade, despite slightly lower processing volumes. Lead, silver and zinc production also increased in Q2 2022 as compared to Q2 2021 as a result of higher average grades. Transformation initiatives continued to show positive results as the mine continues to ramp up productivity.
Processing volumes increased in the latter part of Q2 2022 as a result of processing ore stockpiles following lower processing volumes in the first quarter due to COVID-19 related absenteeism and power outages related to heavy snowfall in the region in
Revenue increased to
Production costs increased to
AISC per ounce sold increased to
Sustaining capital expenditures of
Corporate Updates
In
For further information on the Company's operating results for the second 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 Second 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: | 9051 | |
| Toll free: | 1 800 319 4610 | |||
About Eldorado
Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkiye,
Contact
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:
| Q2 2022 | Q2 2021 | YTD 2022 | YTD 2021 | ||||||||||||
| Production costs (1) | $ | 109.3 | $ | 112.8 | $ | 213.9 | $ | 221.4 | |||||||
production costs (2) |
(0.1 | ) | (13.7 | ) | (0.1 | ) | (29.0 | ) | |||||||
| Production costs – excluding |
109.2 | 99.1 | 213.7 | 192.3 | |||||||||||
| By-product credits (3) | (19.4 | ) | (13.9 | ) | (37.7 | ) | (29.2 | ) | |||||||
| Royalty expense and selling costs (4) | (4.9 | ) | (11.5 | ) | (12.4 | ) | (16.7 | ) | |||||||
| Cash operating costs | $ | 84.9 | $ | 73.6 | $ | 163.7 | $ | 146.5 | |||||||
| Gold ounces sold | 107,631 | 114,140 | 202,103 | 227,734 | |||||||||||
| Cash operating cost per ounce sold | $ | 789 | $ | 645 | $ | 810 | $ | 643 | |||||||
(1) Includes inventory write-downs.
(2) Base metals production, presented for 2021. Operations at
(3) Revenue from silver, lead and zinc sales.
(4) Included in production costs.
Reconciliation of Cash Operating Costs and Cash Operating Cost per ounce sold, by asset, for the three months ended
| Direct operating costs | By-product credits | Refining and selling costs | Inventory change (1) | Cash operating costs | Gold oz sold | Cash operating cost/oz sold | |||||||||||||||
| Kisladag | $ | 26.1 | $ | (0.7 | ) | $ | 0.2 | $ | (4.1 | ) | $ | 21.5 | 26,881 | $ | 798 | ||||||
| Lamaque | 29.3 | (0.4 | ) | 0.1 | 1.0 | 30.0 | 45,655 | 657 | |||||||||||||
| Efemcukuru | 13.4 | (0.8 | ) | 3.5 | 0.5 | 16.5 | 23,428 | 706 | |||||||||||||
| Olympias | 29.3 | (17.5 | ) | 7.3 | (2.2 | ) | 16.9 | 11,667 | 1,446 | ||||||||||||
| Total consolidated | $ | 98.1 | $ | (19.4 | ) | $ | 11.0 | $ | (4.8 | ) | $ | 84.9 | 107,631 | $ | 789 | ||||||
(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 six months ended
| Direct operating costs | By-product credits | Refining and selling costs | Inventory change (1) | Cash operating costs | Gold oz sold | Cash operating cost/oz sold | |||||||||||||||
| Kisladag | $ | 47.4 | $ | (1.5 | ) | $ | 0.7 | $ | 0.5 | $ | 47.1 | 56,659 | $ | 831 | |||||||
| Lamaque | 55.8 | (0.7 | ) | 0.1 | 0.9 | 56.1 | 79,780 | 703 | |||||||||||||
| Efemcukuru | 25.9 | (1.7 | ) | 5.9 | 0.3 | 30.4 | 44,810 | 678 | |||||||||||||
| Olympias | 55.2 | (33.8 | ) | 12.5 | (3.9 | ) | 30.2 | 20,854 | 1,447 | ||||||||||||
| Total consolidated | $ | 184.3 | $ | (37.7 | ) | $ | 19.3 | $ | (2.1 | ) | $ | 163.7 | 202,103 | $ | 810 | ||||||
(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 operating costs | By-product credits | Refining and selling costs | Inventory change (1) | Cash operating costs | Gold oz sold | Cash operating cost/oz sold | |||||||||||||||
| Kisladag | $ | 23.5 | $ | (0.8 | ) | $ | 0.2 | $ | 0.5 | $ | 23.3 | 44,049 | $ | 529 | |||||||
| Lamaque | 23.8 | (0.4 | ) | — | (0.6 | ) | 22.8 | 34,677 | 658 | ||||||||||||
| Efemcukuru | 11.6 | (1.3 | ) | 1.9 | (0.1 | ) | 12.1 | 23,006 | 525 | ||||||||||||
| Olympias | 23.4 | (11.4 | ) | 4.1 | (0.7 | ) | 15.4 | 12,409 | 1,237 | ||||||||||||
| Total consolidated | $ | 82.3 | $ | (13.9 | ) | $ | 6.2 | $ | (1.0 | ) | $ | 73.6 | 114,140 | $ | 645 | ||||||
(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 six months ended
| Direct operating costs | By-product credits | Refining and selling costs | Inventory change (1) | Cash operating costs | Gold oz sold | Cash operating cost/oz sold | |||||||||||||||
| Kisladag | $ | 46.9 | $ | (1.6 | ) | $ | 0.3 | $ | 1.1 | $ | 46.7 | 91,555 | $ | 510 | |||||||
| Lamaque | 47.0 | (0.8 | ) | 0.1 | (1.4 | ) | 44.9 | 63,755 | 704 | ||||||||||||
| Efemcukuru | 23.8 | (2.4 | ) | 3.1 | 0.3 | 24.8 | 47,136 | 525 | |||||||||||||
| Olympias | 46.1 | (24.4 | ) | 7.6 | 0.7 | 30.1 | 25,288 | 1,190 | |||||||||||||
| Total consolidated | $ | 163.8 | $ | (29.2 | ) | $ | 11.1 | $ | 0.7 | $ | 146.5 | 227,734 | $ | 643 | |||||||
(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:
| Q2 2022 | Q2 2021 | YTD 2022 | YTD 2021 | ||||||||
| Cash operating costs | $ | 84.9 | $ | 73.6 | $ | 163.7 | $ | 146.5 | |||
| Royalty expense (1) | 9.8 | 11.5 | 19.8 | 16.7 | |||||||
| Total cash costs | $ | 94.7 | $ | 85.1 | $ | 183.6 | $ | 163.2 | |||
| Gold ounces sold | 107,631 | 114,140 | 202,103 | 227,734 | |||||||
| Total cash costs per ounce sold | $ | 879 | $ | 746 | $ | 908 | $ | 716 | |||
(1) Included in production costs.
Reconciliation of Total Cash Costs to All-in Sustaining Costs and All-in Sustaining Costs per ounce sold:
| Q2 2022 | Q2 2021 | YTD 2022 | YTD 2021 | ||||||||
| Total cash costs | $ | 94.7 | $ | 85.1 | $ | 183.6 | $ | 163.2 | |||
| Corporate and allocated G&A | 7.4 | 9.0 | 18.9 | 18.5 | |||||||
| Exploration and evaluation costs | 0.6 | 2.8 | 1.3 | 5.4 | |||||||
| Reclamation costs and amortization | 1.8 | 1.5 | 3.4 | 2.9 | |||||||
| Sustaining capital expenditure | 32.3 | 24.2 | 56.8 | 44.7 | |||||||
| AISC | $ | 136.7 | $ | 122.6 | $ | 264.0 | $ | 234.6 | |||
| Gold ounces sold | 107,631 | 114,140 | 202,103 | 227,734 | |||||||
| AISC per ounce sold | $ | 1,270 | $ | 1,074 | $ | 1,306 | $ | 1,030 | |||
Reconciliation of general and administrative expenses included in All-in Sustaining Costs:
| Q2 2022 | Q2 2021 | YTD 2022 | YTD 2021 | ||||||||||||
| General and administrative expenses(from consolidated statement of operations) | $ | 8.7 | $ | 9.7 | $ | 17.0 | $ | 19.9 | |||||||
| Add: | |||||||||||||||
| Share-based payments expense | 0.3 | 1.9 | 4.0 | 3.7 | |||||||||||
| Employee benefit plan expense from corporate and operating gold mines | 0.8 | 0.6 | 2.7 | 1.4 | |||||||||||
| Less: | |||||||||||||||
| General and administrative expenses related to non-gold mines and in-country offices | (0.1 | ) | — | (0.3 | ) | (0.2 | ) | ||||||||
| Depreciation in G&A | (0.8 | ) | (0.4 | ) | (1.4 | ) | (1.0 | ) | |||||||
| Business development | (0.5 | ) | (2.1 | ) | (1.0 | ) | (3.8 | ) | |||||||
| Development projects | (1.1 | ) | (0.8 | ) | (2.2 | ) | (1.5 | ) | |||||||
| Adjusted corporate general and administrative expenses | $ | 7.4 | $ | 8.8 | $ | 18.7 | $ | 18.4 | |||||||
| Regional general and administrative costs allocated to gold mines | — | 0.1 | 0.2 | 0.1 | |||||||||||
| Corporate and allocated general and administrative expenses per AISC | $ | 7.4 | $ | 9.0 | $ | 18.9 | $ | 18.5 | |||||||
Reconciliation of exploration costs included in All-in Sustaining Costs:
| Q2 2022 | Q2 2021 | YTD 2022 | YTD 2021 | ||||||||||||
| Exploration and evaluation expense(from consolidated statement of operations for the three and six months ended |
$ | 4.2 | $ | 7.9 | $ | 10.1 | $ | 11.9 | |||||||
| Add: | |||||||||||||||
| Capitalized sustaining exploration cost related to operating gold mines | 0.6 | 2.6 | 1.3 | 4.3 | |||||||||||
| Less: | |||||||||||||||
| Exploration and evaluation expenses related to non-gold mines and other sites | (4.2 | ) | (7.7 | ) | (10.1 | ) | (10.8 | ) | |||||||
| Exploration and evaluation costs per AISC | $ | $ | $ | $ | |||||||||||
(1) Amounts presented are from continuing operations only. The
Reconciliation of reclamation costs and amortization included in All-in Sustaining Costs:
| Q2 2022 | Q2 2021 | YTD 2022 | YTD 2021 | ||||||||||||
| Asset retirement obligation accretion (from other income and finance costs note to the condensed consolidated interim financial statements for the three and six months ended |
$ | 0.6 | $ | 0.4 | $ | 1.1 | $ | 0.7 | |||||||
| Add: | |||||||||||||||
| Depreciation related to asset retirement obligation assets | 1.4 | 1.2 | 2.6 | 2.3 | |||||||||||
| Less: | |||||||||||||||
| Asset retirement obligation accretion related to non-gold mines and other sites | (0.1 | ) | (0.1 | ) | (0.3 | ) | (0.1 | ) | |||||||
| Reclamation costs and amortization per AISC | $ | 1.8 | $ | 1.5 | $ | 3.4 | $ | 2.9 | |||||||
Reconciliation of
| Q2 2022 | Q2 2021 | YTD 2022 | YTD 2021 | ||||||||||||
| Additions to property, plant and equipment (1) (from segment note in the condensed consolidated interim financial statements for the three and six months ended |
$ | 87.1 | $ | 76.1 | $ | 147.9 | $ | 135.5 | |||||||
| Less: Growth and development project capital expenditure (2) | (48.9 | ) | (45.2 | ) | (81.3 | ) | (80.0 | ) | |||||||
| Less: Capitalized evaluation expenditure | (5.5 | ) | (3.5 | ) | (9.3 | ) | (5.4 | ) | |||||||
| Less: Sustaining capital expenditure |
— | (2.2 | ) | — | (3.9 | ) | |||||||||
| Less: Sustaining capital expenditure equipment leases (4) | (0.4 | ) | — | (0.4 | ) | (0.7 | ) | ||||||||
| Less: Corporate leases | — | (0.9 | ) | (0.1 | ) | (1.0 | ) | ||||||||
| Sustaining capital expenditure at operating gold mines | $ | 32.3 | $ | 24.2 | $ | 56.8 | $ | 44.7 | |||||||
(1) Amounts presented are from continuing operations only. The
(2) Includes growth capital expenditures and capital expenditures relating to Skouries,
(3) Base metals production, presented for 2021. Operations at
(4) Non-cash sustaining lease additions, net of sustaining lease principal and interest payments.
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 capital | Total AISC |
Gold oz sold | Total AISC/ oz sold |
|||||||||||||||||||
| Kisladag | $ | 21.5 | $ | 2.9 | $ | 24.4 | $ | — | $ | — | $ | 0.6 | $ | 4.3 | $ | 29.3 | 26,881 | $ | 1,090 | |||||||||
| Lamaque | 30.0 | 1.1 | 31.1 | — | 0.3 | 0.1 | 13.5 | 45.0 | 45,655 | 985 | ||||||||||||||||||
| Efemcukuru | 16.5 | 4.5 | 21.0 | — | — | 0.6 | 5.9 | 27.6 | 23,428 | 1,180 | ||||||||||||||||||
| Olympias | 16.9 | 1.3 | 18.2 | — | 0.3 | 0.4 | 8.5 | 27.4 | 11,667 | 2,346 | ||||||||||||||||||
| Corporate (1) | — | — | — | 7.4 | — | — | — | 7.4 | — | 69 | ||||||||||||||||||
| Total consolidated | $ | 84.9 | $ | 9.8 | $ | 94.7 | $ | 7.4 | $ | 0.6 | $ | 1.8 | $ | 32.3 | $ | 136.7 | 107,631 | $ | 1,270 | |||||||||
(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 six months ended
| Cash operating costs | Royalties | Total cash costs | Corporate & allocated G&A | Exploration costs | Reclamation costs and amortization | Sustaining capital | Total AISC |
Gold oz sold | Total AISC/ oz sold |
|||||||||||||||||||
| Kisladag | $ | 47.1 | $ | 6.6 | $ | 53.7 | $ | — | $ | — | $ | 1.0 | $ | 6.8 | $ | 61.6 | 56,659 | 1,087 | ||||||||||
| Lamaque | 56.1 | 1.9 | 58.0 | — | 0.6 | 0.2 | 26.5 | 85.3 | 79,780 | 1,069 | ||||||||||||||||||
| Efemcukuru | 30.4 | 7.6 | 38.0 | 0.2 | 0.2 | 1.3 | 9.4 | 49.0 | 44,810 | 1,093 | ||||||||||||||||||
| Olympias | 30.2 | 3.8 | 33.9 | — | 0.5 | 0.9 | 14.1 | 49.4 | 20,854 | 2,369 | ||||||||||||||||||
| Corporate (1) | — | — | — | 18.7 | — | — | — | 18.7 | — | 93 | ||||||||||||||||||
| Total consolidated | $ | 163.7 | $ | 19.8 | $ | 183.6 | $ | 18.9 | $ | 1.3 | $ | 3.4 | $ | 56.8 | $ | 264.0 | 202,103 | $ | 1,306 | |||||||||
(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 capital | Total AISC |
Gold oz sold | Total AISC/ oz sold |
|||||||||||||||||||
| Kisladag | $ | 23.3 | $ | 4.5 | $ | 27.8 | $ | — | $ | — | $ | 0.5 | $ | 3.7 | $ | 32.1 | 44,049 | $ | 728 | |||||||||
| Lamaque | 22.8 | 0.8 | 23.6 | — | 2.1 | 0.2 | 11.0 | 36.9 | 34,677 | 1,065 | ||||||||||||||||||
| Efemcukuru | 12.1 | 4.5 | 16.6 | — | 0.5 | 0.3 | 3.8 | 21.1 | 23,006 | 917 | ||||||||||||||||||
| Olympias | 15.4 | 1.7 | 17.1 | — | 0.2 | 0.5 | 5.7 | 23.5 | 12,409 | 1,893 | ||||||||||||||||||
| Corporate (1) | — | — | — | 9.0 | — | — | — | 9.0 | — | 78 | ||||||||||||||||||
| Total consolidated | $ | 73.6 | $ | 11.5 | $ | 85.1 | $ | 9.0 | $ | 2.8 | $ | 1.5 | $ | 24.2 | $ | 122.6 | 114,140 | $ | 1,074 | |||||||||
(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 six months ended
| Cash operating costs | Royalties | Total cash costs | Corporate & allocated G&A | Exploration costs | Reclamation costs and amortization | Sustaining capital | Total AISC |
Gold oz sold | Total AISC/ oz sold |
|||||||||||||||||||
| Kisladag | $ | 46.7 | $ | 6.6 | $ | 53.3 | $ | — | $ | — | $ | 1.0 | $ | 6.5 | $ | 60.9 | 91,555 | $ | 665 | |||||||||
| Lamaque | 44.9 | 1.3 | 46.2 | — | 3.8 | 0.4 | 20.3 | 70.7 | 63,755 | 1,109 | ||||||||||||||||||
| Efemcukuru | 24.8 | 5.3 | 30.1 | — | 0.9 | 0.5 | 6.3 | 37.8 | 47,136 | 802 | ||||||||||||||||||
| Olympias | 30.1 | 3.4 | 33.5 | — | 0.7 | 1.0 | 11.5 | 46.7 | 25,288 | 1,845 | ||||||||||||||||||
| Corporate (1) | — | — | — | 18.5 | — | — | — | 18.5 | — | 81 | ||||||||||||||||||
| Total consolidated | $ | 146.5 | $ | 16.7 | $ | 163.2 | $ | 18.5 | $ | 5.4 | $ | 2.9 | $ | 44.7 | $ | 234.6 | 227,734 | $ | 1,030 | |||||||||
(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.
Average realized gold price per ounce sold is reconciled for the periods presented as follows:
For the three months ended
| Revenue | Add concentrate deductions (1) | Less non-gold revenue | Gold revenue | Gold oz sold | Average realized gold price per ounce sold |
|||||||||||||
| Kisladag | $ | 51.0 | $ | — | $ | (0.7 | ) | $ | 50.3 | 26,881 | $ | 1,870 | ||||||
| Lamaque | 85.0 | — | (0.4 | ) | 84.6 | 45,655 | 1,853 | |||||||||||
| Efemcukuru | 41.4 | 1.3 | (0.8 | ) | 41.8 | 23,428 | 1,785 | |||||||||||
| Olympias | 36.3 | 3.6 | (17.5 | ) | 22.3 | 11,667 | 1,912 | |||||||||||
|
|
(0.1 | ) | — | 0.1 | — | N/A | N/A | |||||||||||
| Total consolidated | $ | 213.4 | $ | 4.8 | $ | (19.3 | ) | $ | 199.0 | 107,631 | $ | 1,849 | ||||||
(1) Treatment charges, refining charges, penalties and other costs deducted from proceeds from gold concentrate sales.
For the six months ended
| Revenue | Add concentrate deductions (1) | Less non-gold revenue | Gold Revenue | Gold oz sold | Average realized gold price per ounce sold |
||||||||||||
| Kisladag | $ | 107.6 | $ | — | $ | (1.5 | ) | $ | 106.1 | 56,659 | $ | 1,873 | |||||
| Lamaque | 149.9 | — | (0.7 | ) | 149.2 | 79,780 | 1,870 | ||||||||||
| Efemcukuru | 82.7 | 2.1 | (1.7 | ) | 83.1 | 44,810 | 1,855 | ||||||||||
| Olympias | 67.4 | 5.3 | (33.8 | ) | 39.0 | 20,854 | 1,870 | ||||||||||
|
|
0.5 | — | (0.5 | ) | — | N/A | N/A | ||||||||||
| Total consolidated | $ | 408.1 | $ | 7.5 | $ | (38.2 | ) | $ | 377.4 | 202,103 | $ | 1,868 | |||||
(1) Treatment charges, refining charges, penalties and other costs deducted from proceeds from gold concentrate sales.
For the three months ended
| Revenue | Add concentrate deductions (1) | Less non-gold revenue | Gold revenue | Gold oz sold | Average realized gold price per ounce sold |
||||||||||||
| Kisladag | $ | 80.7 | $ | — | $ | (0.8 | ) | $ | 79.9 | 44,049 | $ | 1,815 | |||||
| Lamaque | 63.5 | — | (0.4 | ) | 63.1 | 34,677 | 1,820 | ||||||||||
| Efemcukuru | 45.0 | 0.5 | (1.3 | ) | 44.2 | 23,006 | 1,923 | ||||||||||
| Olympias | 34.1 | — | (11.4 | ) | 22.7 | 12,409 | 1,829 | ||||||||||
|
|
9.8 | — | (9.8 | ) | — | N/A | N/A | ||||||||||
| Total consolidated | $ | 233.2 | $ | 0.5 | $ | (23.8 | ) | $ | 210.0 | 114,141 | $ | 1,840 | |||||
(1) Treatment charges, refining charges, penalties and other costs deducted from proceeds from gold concentrate sales.
For the six months ended
| Revenue | Add concentrate deductions (1) | Less non-gold revenue | Gold Revenue | Gold oz sold | Average realized gold price per ounce sold | |||||||
| Kisladag | $ | 166.5 | $ | — | ($ | 1.6 | ) | $ | 164.9 | 91,555 | $ | 1,801 |
| Lamaque | 115.5 | — | (0.8 | ) | 114.7 | 63,755 | 1,799 | |||||
| Efemcukuru | 84.8 | 1.7 | (2.4 | ) | 84.1 | 47,136 | 1,783 | |||||
| Olympias | 67.5 | — | (24.4 | ) | 43.1 | 25,288 | 1,705 | |||||
|
|
23.6 | — | (23.6 | ) | — | N/A | N/A | |||||
| Total consolidated | $ | 457.8 | $ | 1.7 | ($ | 52.7 | ) | $ | 406.8 | 227,734 | $ | 1,786 |
(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) | Q2 2022 | Q2 2021 | YTD 2022 | YTD 2021 | |||||||||||
| Net (loss) earnings attributable to shareholders of the Company (1) | $ | (22.7 | ) | $ | 31.0 | $ | (339.5 | ) | $ | 45.4 | |||||
| Impairment of property, plant and equipment, net of tax (2) | — | — | 278.0 | — | |||||||||||
| Loss on foreign exchange translation of deferred tax balances | 23.3 | 2.5 | 35.8 | 12.7 | |||||||||||
| Loss on redemption option derivative | 14.4 | 6.2 | 7.4 | 6.9 | |||||||||||
| Gain on deferred tax due to changes in tax rates (3) | — | (5.3 | ) | (1.0 | ) | (5.3 | ) | ||||||||
| Other write-down (reversal) of assets, net of tax (4) | (1.2 | ) | — | 14.2 | — | ||||||||||
| Gain on sale of mining licences, net of tax (5) | — | (5.3 | ) | — | (5.3 | ) | |||||||||
| Total adjusted net earnings (loss) (1) | $ | 13.8 | $ | 29.1 | $ | (5.1 | ) | $ | 54.3 | ||||||
| Weighted average shares outstanding (thousands) | 183,777 | 181,599 | 183,074 | 178,086 | |||||||||||
| Adjusted net earnings (loss) per share ($/share) (1) | $ | 0.08 | $ | 0.16 | $ | (0.03 | ) | $ | 0.30 | ||||||
(1) Amounts presented are from continuing operations only. The
(2) Impairment of Certej project in Q1 2022, attributable to shareholders of the Company and net of tax.
(3) Q1 2022 includes a deferred tax recovery relating to the adjustment of opening balances for a tax rate decrease in Turkiye, enacted in that quarter. Q2 2021 includes an
(4) Non-recurring asset write-downs in Q1 2022 include decommissioned equipment at Kisladag as a result of installation and commissioning of the HPGR. A partial reversal of
(5) Sale of mining licences in Turkiye in Q2 2021, net of tax.
Reconciliation of Net Earnings (Loss) before income tax to EBITDA and Adjusted EBITDA:
| Continuing Operations (1) | Q2 2022 | Q2 2021 | YTD 2022 | YTD 2021 | |||||||||||
| Earnings (loss) before income tax (1) | $ | 12.5 | $ | 41.1 | $ | (366.7 | ) | $ | 84.2 | ||||||
| Depreciation and amortization (1,2) | 53.7 | 51.5 | 104.9 | 104.5 | |||||||||||
| Interest income | (0.8 | ) | (1.2 | ) | (1.3 | ) | (1.5 | ) | |||||||
| Finance costs (1) | 23.7 | 15.5 | 25.9 | 25.8 | |||||||||||
| EBITDA | $ | 89.1 | $ | 106.9 | $ | (237.1 | ) | $ | 213.1 | ||||||
| Impairment of property, plant and equipment (3) | — | — | 365.4 | — | |||||||||||
| Other write-down (reversal) of assets (4) | (1.6 | ) | — | 18.2 | — | ||||||||||
| Share-based payments expense | 0.3 | 1.9 | 4.0 | 3.7 | |||||||||||
| (Gain) loss on disposal of assets (1) | (0.2 | ) | (0.1 | ) | (0.8 | ) | 0.2 | ||||||||
| Gain on sale of mining licences (5) | — | (7.0 | ) | — | (7.0 | ) | |||||||||
| Adjusted EBITDA | $ | 87.6 | $ | 101.7 | $ | 149.7 | $ | 210.0 | |||||||
(1) Amounts presented are from continuing operations only. The
(2) Includes depreciation within general and administrative expenses.
(3) Impairment of Certej project in Q1 2022.
(4) Non-recurring asset write-downs in Q1 2022 include decommissioned equipment at Kisladag as a result of installation and commissioning of the HPGR. A partial reversal of
(5) Sale of mining licences in Turkiye in Q2 2021.
Reconciliation of Net Cash Generated from Operating Activities to Free Cash Flow:
| Continuing Operations (1) | Q2 2022 | Q2 2021 | YTD 2022 | YTD 2021 | |||||||||||
| Net cash generated from operating activities (1,2) | $ | 26.9 | $ | 49.0 | $ | 62.2 | $ | 148.1 | |||||||
| Less: Cash used in investing activities (1) | (89.7 | ) | (85.2 | ) | (211.7 | ) | (94.9 | ) | |||||||
| Add back: Acquisition of subsidiary, net of cash received (3) | — | 19.3 | — | 19.3 | |||||||||||
| Add back: Sale of mining licences (4) | — | (5.0 | ) | — | (5.0 | ) | |||||||||
| Add back: (Decrease) increase in term deposits | — | (1.9 | ) | 60.0 | (58.0 | ) | |||||||||
| Add back: Increase in restricted cash | — | — | — | 0.1 | |||||||||||
| Free cash flow | $ | (62.8 | ) | $ | (23.7 | ) | $ | (89.6 | ) | $ | 9.7 | ||||
(1) Amounts presented are from continuing operations only. The
(2) 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.
(3) Cash paid upon acquisition of QMX in Q2 2021, net of
(4) Cash consideration received on sale of mining licences in Turkiye in Q2 2021.
Working capital for the periods highlighted is as follows:
| As at |
As at |
|||
| Current assets | $ | 646.0 | $ | 728.2 |
| Less: Current liabilities | 185.9 | 206.7 | ||
| Working capital | $ | 460.1 | $ | 521.6 |
Reconciliation of Net Cash Generated from Operating Activities to Cash Flow from Operating Activities before Changes in Working Capital:
| Continuing operations (1) | Q2 2022 | Q2 2021 | YTD 2022 | YTD 2021 | |||||||||||
| Net cash generated from (used in) operating activities (1,2) | $ | 26.9 | $ | 49.0 | $ | 62.2 | $ | 148.1 | |||||||
| Less: Changes in non-cash working capital | (21.4 | ) | (26.9 | ) | (35.9 | ) | (8.9 | ) | |||||||
| Cash flow from operating activities before changes in working capital | $ | 48.3 | $ | 75.9 | $ | 98.1 | $ | 157.1 | |||||||
(1) Amounts presented are from continuing operations only. The
(2) 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.
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 “anticipates”, “believes”, “budget”, “continue”, “estimates”, “expects”, “forecasts”, "foresee", "future", "goal", “guidance”, “intends”, "opportunity", "outlook", “plans”, “potential”, "strive", "target" or “underway” or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “can”, “could”, "likely", "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, the
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 Turkiye; how the world-wide economic and social impact of COVID-19 is managed and the duration and extent of the COVID-19 pandemic; timing, cost and results of our construction and exploration; the geopolitical, economic, permitting and legal climate that we operate in; the future price of gold and other commodities; the global concentrate market; exchange rates; anticipated values, costs, expenses and working capital requirements; production and metallurgical recoveries; mineral reserves and resources; and the impact of acquisitions, dispositions, suspensions or delays on our business and the ability to achieve our goals. In addition, 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: 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 Turkiye; risks relating to the ongoing COVID-19 pandemic and any future pandemic, epidemic, endemic or similar public health threats; risks relating to our operations being located in foreign jurisdictions; community relations and social license; climate change; liquidity and financing risks; development risks; indebtedness, including current and future operating restrictions, implications of a change of control, ability to meet debt service obligations, the implications of defaulting on obligations and change in credit ratings; environmental matters; waste disposal; the global economic environment; government regulation; reliance on a limited number of smelters and off-takers; commodity price risk; mineral tenure; permits; risks relating to environmental sustainability and governance practices and performance; non-governmental organizations; corruption, bribery and sanctions; litigation and contracts; information technology systems; estimation of mineral reserves and mineral resources; production and processing estimates; credit risk; actions of activist shareholders; price volatility, volume fluctuations and dilution risk in respect of our shares; reliance on infrastructure, commodities and consumables; currency risk; inflation risk; interest rate risk; tax matters; dividends; financial reporting, including relating to the carrying value of our assets and changes in reporting standards; labour, including relating to employee/union relations, employee misconduct, key personnel, skilled workforce, expatriates and contractors; reclamation and long-term obligations; regulated substances; necessary equipment; co-ownership of our properties; acquisitions, including integration risks, and dispositions; the unavailability of insurance; conflicts of interest; compliance with privacy legislation; reputational issues; competition, as well as those risk factors discussed in the sections titled “Forward-looking information and risks” and “Risk factors in our business” in our 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 & Form 40-F filed on SEDAR and EDGAR under our Company name, which discussion is incorporated by reference in this release, for a fuller understanding of the risks and uncertainties that affect our business and operations.
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 | $ | 309,958 | $ | 481,327 | |||||
| Term deposits | 15 | 60,000 | — | ||||||
| Accounts receivable and other | 5 | 75,937 | 68,745 | ||||||
| Inventories | 6 | 200,143 | 178,163 | ||||||
| 646,038 | 728,235 | ||||||||
| Restricted cash | 2,133 | 2,674 | |||||||
| Deferred tax assets | 15,900 | — | |||||||
| Other assets | 101,538 | 104,023 | |||||||
| Property, plant and equipment | 3,650,725 | 4,003,211 | |||||||
|
|
92,591 | 92,591 | |||||||
| $ | 4,508,925 | $ | 4,930,734 | ||||||
| LIABILITIES & EQUITY | |||||||||
| Current liabilities | |||||||||
| Accounts payable and accrued liabilities | $ | 177,154 | $ | 195,334 | |||||
| Current portion of lease liabilities | 4,703 | 7,228 | |||||||
| Current portion of asset retirement obligations | 4,088 | 4,088 | |||||||
| 185,945 | 206,650 | ||||||||
| Debt | 7 | 497,249 | 489,763 | ||||||
| Lease liabilities | 13,221 | 14,895 | |||||||
| Employee benefit plan obligations | 8,639 | 8,942 | |||||||
| Asset retirement obligations | 125,457 | 131,367 | |||||||
| Deferred income tax liabilities | 450,334 | 439,195 | |||||||
| 1,280,845 | 1,290,812 | ||||||||
| Equity | |||||||||
| Share capital | 11 | 3,240,952 | 3,225,326 | ||||||
stock |
(20,454 | ) | (10,289 | ) | |||||
| Contributed surplus | 2,612,463 | 2,615,459 | |||||||
| Accumulated other comprehensive loss | (29,678 | ) | (20,905 | ) | |||||
| Deficit | (2,578,766 | ) | (2,239,226 | ) | |||||
| Total equity attributable to shareholders of the Company | 3,224,517 | 3,570,365 | |||||||
| Attributable to non-controlling interests | 3,563 | 69,557 | |||||||
| 3,228,080 | 3,639,922 | ||||||||
| $ | 4,508,925 | $ | 4,930,734 | ||||||
Subsequent events (Note 18)
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 and six months ended
(Unaudited – in thousands of
| Three months ended | Six months ended | ||||||||||||||||
, |
, |
||||||||||||||||
| Note | 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenue | |||||||||||||||||
| Metal sales | 8 | $ | 213,447 | $ | 233,224 | $ | 408,119 | $ | 457,842 | ||||||||
| Cost of sales | |||||||||||||||||
| Production costs | 109,320 | 112,800 | 213,876 | 221,360 | |||||||||||||
| Depreciation and amortization | 52,917 | 51,023 | 103,552 | 103,509 | |||||||||||||
| 162,237 | 163,823 | 317,428 | 324,869 | ||||||||||||||
| Earnings from mine operations | 51,210 | 69,401 | 90,691 | 132,973 | |||||||||||||
| Exploration and evaluation expenses | 4,242 | 7,881 | 10,103 | 11,889 | |||||||||||||
| Mine standby costs | 9 | 10,662 | 2,093 | 22,370 | 3,704 | ||||||||||||
| General and administrative expenses | 8,734 | 9,726 | 17,025 | 19,866 | |||||||||||||
| Employee benefit plan expense | 809 | 616 | 2,650 | 1,365 | |||||||||||||
| Share-based payments expense | 12 | 348 | 1,922 | 3,998 | 3,703 | ||||||||||||
| Impairment of property, plant and equipment | 4 | — | — | 365,426 | — | ||||||||||||
| (Recovery) write-down of assets | (1,688 | ) | 320 | 22,453 | (430 | ) | |||||||||||
| Foreign exchange gain | (6,415 | ) | (143 | ) | (9,135 | ) | (6,222 | ) | |||||||||
| Earnings (loss) from operations | 34,518 | 46,986 | (344,199 | ) | 99,098 | ||||||||||||
| Other income | 10 | 1,678 | 9,636 | 3,421 | 10,935 | ||||||||||||
| Finance costs | 10 | (23,743 | ) | (15,497 | ) | (25,909 | ) | (25,832 | ) | ||||||||
| Earnings (loss) from continuing operations before income tax | 12,453 | 41,125 | (366,687 | ) | 84,201 | ||||||||||||
| Income tax expense | 33,980 | 12,705 | 39,054 | 39,543 | |||||||||||||
| Net (loss) earnings from continuing operations | (21,527 | ) | 28,420 | (405,741 | ) | 44,658 | |||||||||||
| Net loss from discontinued operations, net of tax | — | (86,766 | ) | — | (89,160 | ) | |||||||||||
| Net loss for the period | $ | (21,527 | ) | $ | (58,346 | ) | $ | (405,741 | ) | $ | (44,502 | ) | |||||
| Attributable to: | |||||||||||||||||
| Shareholders of the Company | (22,718 | ) | (55,737 | ) | (339,540 | ) | (43,798 | ) | |||||||||
| Non-controlling interests | 1,191 | (2,609 | ) | (66,201 | ) | (704 | ) | ||||||||||
| Net loss for the period | $ | (21,527 | ) | $ | (58,346 | ) | $ | (405,741 | ) | $ | (44,502 | ) | |||||
| (Loss) earnings attributable to shareholders of the Company | |||||||||||||||||
| Continuing operations | (22,718 | ) | 31,029 | (339,540 | ) | 45,362 | |||||||||||
| Discontinued operations | — | (86,766 | ) | — | (89,160 | ) | |||||||||||
| $ | (22,718 | ) | $ | (55,737 | ) | $ | (339,540 | ) | $ | (43,798 | ) | ||||||
| Weighted average number of shares outstanding (thousands) | |||||||||||||||||
| Basic | 183,777 | 181,599 | 183,074 | 178,086 | |||||||||||||
| Diluted | 183,777 | 181,599 | 183,074 | 178,086 | |||||||||||||
| Net loss per share attributable to shareholders of the Company: | |||||||||||||||||
| Basic loss per share | $ | (0.12 | ) | $ | (0.31 | ) | $ | (1.85 | ) | $ | (0.25 | ) | |||||
| Diluted loss per share | $ | (0.12 | ) | $ | (0.31 | ) | $ | (1.85 | ) | $ | (0.25 | ) | |||||
| Net (loss) earnings per share attributable to shareholders of the Company - Continuing operations: | |||||||||||||||||
| Basic (loss) earnings per share | $ | (0.12 | ) | $ | 0.17 | $ | (1.85 | ) | $ | 0.25 | |||||||
| Diluted (loss) earnings per share | $ | (0.12 | ) | $ | 0.17 | $ | (1.85 | ) | $ | 0.25 | |||||||
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Comprehensive Income (Loss)
For the three and six months ended
(Unaudited – in thousands of
| Three months ended | Six months ended | ||||||||||||||||
, |
, |
||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||
| Net loss for the period | $ | (21,527 | ) | $ | (58,346 | ) | $ | (405,741 | ) | $ | (44,502 | ) | |||||
| 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 | (10,314 | ) | 95 | (8,265 | ) | (30 | ) | ||||||||||
| Actuarial gains (losses) on employee benefit plans, net of tax | 409 | 64 | (508 | ) | 30 | ||||||||||||
| Total other comprehensive (loss) income for the period | (9,905 | ) | 159 | (8,773 | ) | — | |||||||||||
| Total comprehensive loss for the period | $ | (31,432 | ) | $ | (58,187 | ) | $ | (414,514 | ) | $ | (44,502 | ) | |||||
| Attributable to: | |||||||||||||||||
| Shareholders of the Company | (32,623 | ) | (55,578 | ) | (348,313 | ) | (43,798 | ) | |||||||||
| Non-controlling interests | 1,191 | (2,609 | ) | (66,201 | ) | (704 | ) | ||||||||||
| $ | (31,432 | ) | $ | (58,187 | ) | $ | (414,514 | ) | $ | (44,502 | ) | ||||||
Condensed Consolidated Interim Statements of Cash Flows
For the three and six months ended
(Unaudited – in thousands of
| Three months ended | Six months ended | ||||||||||||||||
, |
, |
||||||||||||||||
| Note | 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Cash flows generated from (used in): | |||||||||||||||||
| Operating activities | |||||||||||||||||
| Net (loss) earnings for the period from continuing operations | $ | (21,527 | ) | $ | 28,420 | $ | (405,741 | ) | $ | 44,658 | |||||||
| Adjustments for: | |||||||||||||||||
| Depreciation and amortization | 53,699 | 51,471 | 104,925 | 104,536 | |||||||||||||
| Finance costs | 23,743 | 15,494 | 25,909 | 25,832 | |||||||||||||
| Interest income | (809 | ) | (1,173 | ) | (1,284 | ) | (1,475 | ) | |||||||||
| Unrealized foreign exchange (gain) loss | (3,282 | ) | 675 | (3,766 | ) | (1,689 | ) | ||||||||||
| Income tax expense | 33,980 | 12,705 | 39,054 | 39,543 | |||||||||||||
| (Gain) loss on disposal of assets | (233 | ) | (98 | ) | (815 | ) | 226 | ||||||||||
| Gain on disposal of mining licenses | — | (7,046 | ) | — | (7,046 | ) | |||||||||||
| (Recovery) write-down of assets | (1,688 | ) | 320 | 22,453 | (430 | ) | |||||||||||
| Share-based payments expense | 12 | 348 | 1,922 | 3,998 | 3,703 | ||||||||||||
| Employee benefit plan expense | 809 | 616 | 2,650 | 1,365 | |||||||||||||
| Impairment of property, plant and equipment | — | — | 365,426 | — | |||||||||||||
| 85,040 | 103,306 | 152,809 | 209,223 | ||||||||||||||
| Property reclamation payments | (481 | ) | (772 | ) | (793 | ) | (1,107 | ) | |||||||||
| Employee benefit plan payments | (423 | ) | (289 | ) | (2,673 | ) | (521 | ) | |||||||||
| Income taxes paid | (36,628 | ) | (27,517 | ) | (52,567 | ) | (52,013 | ) | |||||||||
| Interest received | 809 | 1,174 | 1,284 | 1,475 | |||||||||||||
| Changes in non-cash working capital | 13 | (21,382 | ) | (26,884 | ) | (35,881 | ) | (8,912 | ) | ||||||||
| Net cash generated from operating activities of continuing operations | 26,935 | 49,018 | 62,179 | 148,145 | |||||||||||||
| Net cash generated from (used in) operating activities of discontinued operations | — | 1,311 | — | (4,740 | ) | ||||||||||||
| Investing activities | |||||||||||||||||
| Purchase of property, plant and equipment | (83,183 | ) | (71,603 | ) | (135,179 | ) | (135,594 | ) | |||||||||
| Acquisition of subsidiary, net of |
— | (19,336 | ) | — | (19,336 | ) | |||||||||||
| Proceeds from the sale of property, plant and equipment | 565 | 519 | 1,641 | 1,311 | |||||||||||||
| Proceeds from sale of mining licenses | — | 5,000 | — | 5,000 | |||||||||||||
| Value added taxes related to mineral property expenditures, net | (7,078 | ) | (1,631 | ) | (18,211 | ) | (4,199 | ) | |||||||||
| Decrease (increase) in term deposits | — | 1,904 | (60,000 | ) | 58,034 | ||||||||||||
| Increase in restricted cash | — | (31 | ) | — | (104 | ) | |||||||||||
| Net cash used in investing activities of continuing operations | (89,696 | ) | (85,178 | ) | (211,749 | ) | (94,888 | ) | |||||||||
| Net cash used in investing activities of discontinued operations | — | (930 | ) | — | (1,437 | ) | |||||||||||
| Financing activities | |||||||||||||||||
| Issuance of common shares, net of issuance costs | 541 | 2,300 | 13,659 | 14,134 | |||||||||||||
| Contributions from non-controlling interests | 37 | 85 | 207 | 409 | |||||||||||||
| Repayments of borrowings | — | (72,233 | ) | — | (83,333 | ) | |||||||||||
| Interest paid | (831 | ) | (13,278 | ) | (17,719 | ) | (15,483 | ) | |||||||||
| Principal portion of lease liabilities | (1,705 | ) | (2,253 | ) | (3,977 | ) | (5,012 | ) | |||||||||
| Purchase of treasury stock | — | — | (13,969 | ) | — | ||||||||||||
| Net cash used in financing activities of continuing operations | (1,958 | ) | (85,379 | ) | (21,799 | ) | (89,285 | ) | |||||||||
| Net cash used in financing activities of discontinued operations | — | (12 | ) | — | (24 | ) | |||||||||||
| Net decrease in cash and cash equivalents | (64,719 | ) | (121,170 | ) | (171,369 | ) | (42,229 | ) | |||||||||
| Cash and cash equivalents - beginning of period | 374,677 | 530,903 | 481,327 | 451,962 | |||||||||||||
| Cash and cash equivalents - end of period | $ | 309,958 | $ | 409,733 | $ | 309,958 | $ | 409,733 | |||||||||
Condensed Consolidated Interim Statements of Changes in Equity
For the three and six months ended
(Unaudited – in thousands of
| Three months ended | Six months ended | |||||||||||||||
, |
, |
|||||||||||||||
| Note | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Share capital | ||||||||||||||||
| Balance beginning of period | $ | 3,240,665 | $ | 3,157,117 | $ | 3,225,326 | $ | 3,144,644 | ||||||||
| Shares issued upon exercise of share options | 71 | 681 | 3,943 | 1,398 | ||||||||||||
| Shares issued upon exercise of performance share units (PSU's) | — | 1,172 | 2,256 | 1,172 | ||||||||||||
| Transfer of contributed surplus on exercise of options | 29 | 263 | 1,592 | 548 | ||||||||||||
| Shares issued on acquisition of subsidiary | — | 65,647 | — | 65,647 | ||||||||||||
| Shares issued upon exercise of warrants | 213 | — | 213 | — | ||||||||||||
| Shares issued to the public, net of share issuance costs | (26 | ) | (50 | ) | 7,622 | 11,421 | ||||||||||
| Balance end of period | 11 | $ | 3,240,952 | $ | 3,224,830 | $ | 3,240,952 | $ | 3,224,830 | |||||||
stock |
||||||||||||||||
| Balance beginning of period | $ | (20,454 | ) | $ | (10,879 | ) | $ | (10,289 | ) | $ | (11,452 | ) | ||||
| Purchase of treasury stock | — | — | (13,969 | ) | — | |||||||||||
| Shares redeemed upon exercise of restricted share units (RSU's) | — | 584 | 3,804 | 1,157 | ||||||||||||
| Balance end of period | $ | (20,454 | ) | $ | (10,295 | ) | $ | (20,454 | ) | $ | (10,295 | ) | ||||
| Contributed surplus | ||||||||||||||||
| Balance beginning of period | $ | 2,610,136 | $ | 2,639,067 | $ | 2,615,459 | $ | 2,638,008 | ||||||||
| Share-based payment arrangements | 2,356 | 2,240 | 4,656 | 4,157 | ||||||||||||
| Shares redeemed upon exercise of restricted share units | — | (584 | ) | (3,804 | ) | (1,157 | ) | |||||||||
| Shares redeemed upon exercise of performance share units | — | (1,172 | ) | (2,256 | ) | (1,172 | ) | |||||||||
| Transfer to share capital on exercise of options | (29 | ) | (263 | ) | (1,592 | ) | (548 | ) | ||||||||
| Balance end of period | $ | 2,612,463 | $ | 2,639,288 | $ | 2,612,463 | $ | 2,639,288 | ||||||||
| Accumulated other comprehensive loss | ||||||||||||||||
| Balance beginning of period | $ | (19,773 | ) | $ | (30,456 | ) | $ | (20,905 | ) | $ | (30,297 | ) | ||||
| Other comprehensive (loss) income for the period attributable to shareholders of the Company | (9,905 | ) | 159 | (8,773 | ) | — | ||||||||||
| Balance end of period | $ | (29,678 | ) | $ | (30,297 | ) | $ | (29,678 | ) | $ | (30,297 | ) | ||||
| Deficit | ||||||||||||||||
| Balance beginning of period | $ | (2,556,048 | ) | $ | (2,091,267 | ) | $ | (2,239,226 | ) | $ | (2,103,206 | ) | ||||
| Loss attributable to shareholders of the Company | (22,718 | ) | (55,737 | ) | (339,540 | ) | (43,798 | ) | ||||||||
| Balance end of period | $ | (2,578,766 | ) | $ | (2,147,004 | ) | $ | (2,578,766 | ) | $ | (2,147,004 | ) | ||||
| Total equity attributable to shareholders of the Company | $ | 3,224,517 | $ | 3,676,522 | $ | 3,224,517 | $ | 3,676,522 | ||||||||
| Non-controlling interests | ||||||||||||||||
| Balance beginning of period | $ | 2,335 | $ | 43,102 | $ | 69,557 | $ | 40,873 | ||||||||
| Earnings (loss) attributable to non-controlling interests | 1,191 | (2,609 | ) | (66,201 | ) | (704 | ) | |||||||||
| Contributions from non-controlling interests | 37 | 85 | 207 | 409 | ||||||||||||
| Balance end of period | $ | 3,563 | $ | 40,578 | $ | 3,563 | $ | 40,578 | ||||||||
| Total equity | $ | 3,228,080 | $ | 3,717,100 | $ | 3,228,080 | $ | 3,717,100 | ||||||||
Please see the Condensed Consolidated Interim Financial Statements dated
1 These financial measures or ratios are non-IFRS financial measures or ratios. Certain additional disclosure 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
2 These financial measures or ratios are non-IFRS financial measures or ratios. Certain additional disclosure 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
Source: