VANCOUVER, British Columbia, Oct. 29, 2020 (GLOBE NEWSWIRE) -- Eldorado Gold Corporation (“Eldorado” or “the Company”) today reports the Company’s financial and operational results for the third quarter of 2020.

  • Steady quarterly production and 2020 annual guidance maintained: Gold production totalled 136,922 ounces in Q3 2020, an increase of 35% from production of 101,596 ounces in Q3 2019. The Company is maintaining its 2020 annual guidance of 520,000-550,000 ounces of gold at an all-in sustaining cost of $850-950 per ounce sold.
     
  • Increased cash from operations and free cash flow: Net cash generated from operating activities of $165.4 million in Q3 2020 increased significantly from $51.2 million in Q3 2019 primarily as a result of higher sales volumes, a higher average realized gold price, and the timing of certain payments. Free cash flow of $117.2 million in Q3 2020 increased significantly from $16.7 million in Q3 2019 as a result of increased cash from operations, and was partly offset by higher capital expenditure, which is expected to continue into Q4 2020. Free cash flow year-to-date totalled $187.7 million.
     
  • All-in sustaining costs remain steady: Q3 2020 all-in sustaining costs of $918 per ounce of gold sold were lower than in Q3 2019 ($1,031 per ounce sold) and were negatively impacted by an incremental 25% increase to 2020 gold royalty rates in Turkey, announced in September and retroactive to January 1, 2020.
     
  • Continued strong financial liquidity: The Company currently has $504 million of cash, cash equivalents and term deposits and approximately $32 million available under its revolving credit facility. Additionally, we completed a redemption of $58.6 million of principal of our senior secured notes during the quarter and have issued a debt redemption notice to repay an additional $7.5 million of principal in December 2020 under the equity clawback provision of our senior secured notes.
     
  • Net earnings and adjusted net earnings attributable to shareholders: The Company reported net earnings attributable to shareholders of the Company in Q3 2020 of $41.0 million or $0.24 per share (Q3 2019: $4.2 million, or $0.03 per share). Adjusted net earnings attributable to shareholders of the Company in Q3 2020 were $56.7 million, or $0.33 per share (Q3 2019: $7.6 million, or $0.05 per share).
     
  • Increased EBITDA: The Company reported Q3 2020 EBITDA of $162.5 million ($73.2 million in Q3 2019) and Q3 2020 adjusted EBITDA of $163.9 million ($75.9 million in Q3 2019).
     
  • Progress in Greece:
    • Drilling permits received at Stratoni: The Greek Ministry of Environment granted the Company permits to conduct surface exploration drilling in the Stratoni area.
    • Olympias permitted production limit increase: The Company renewed its operating permit for Olympias and, per the terms of the permit, allows for an annual production limit of 470,000 tonnes per year. The Company will continue to evaluate a possible further expansion at Olympias that would require a modification to the Olympias EIA.
    • Archaeological relocation work underway: Relocation of an ancient mining furnace from the Skouries open pit area commenced in Q3 2020.
       
  • Sale of non-core assets: The Company completed the sale of the Vila Nova mine in Brazil for total consideration of $10.0 million. The Company is evaluating strategic options for other non-core assets, including its Tocantinzinho Project in Brazil and Certej Project in Romania.
     
  • Measures remain in place to manage the impact of the novel coronavirus ("COVID-19") pandemic: The Company's mines remain operational and isolated cases of COVID-19 have been successfully managed. Preventing the spread of COVID-19, ensuring safe working environments across Eldorado's global sites, and preparedness should an outbreak occur, remain priorities.

“This quarter continues the positive results we have delivered over the last 18 months,” said George Burns, President and CEO. “We are driving significant value from our operations demonstrated by steady production and lower costs that are flowing through to our bottom line. This is the second consecutive quarter we have delivered across all key metrics, again generating significant free cash flow and adjusted net earnings. We remain committed to reducing our debt and decreased our senior secured notes by nearly $60 million in the quarter. I'm pleased to report that our balance sheet is in the strongest position it has been in several quarters and this positions us well as we look to develop the growth opportunities in our portfolio."

Consolidated Financial and Operational Highlights

 3 months ended September 30,
  9 months ended September 30,
  
  2020  2019   2020  2019  
Revenue (1)$287.6 $172.3  $748.2 $426.0  
Gold revenue (1)$264.3 $150.2  $684.7 $355.6  
Gold produced (oz) (2) 136,922  101,596   390,654  276,376  
Gold sold (oz) (1) 137,704  99,241   388,883  256,000  
Average realized gold price ($/oz sold) (6)$1,919 $1,513  $1,761 $1,389  
Cash operating costs ($/oz sold) (3,6) 537  560   568  602  
Total cash costs ($/oz sold) (3,6) 664  603   651  641  
All-in sustaining costs ($/oz sold) (3,6) 918  1,031   908  998  
Net earnings (loss) for the period (4) 41.0  4.2   81.7  (10.6) 
Net earnings (loss) per share – basic ($/share) (4) 0.24  0.03   0.48  (0.07) 
Adjusted net earnings (loss) (4,5,6,7) 56.7  7.6   113.0  (16.9) 
Adjusted net earnings (loss) per share ($/share) (4,5,6,7) 0.33  0.05   0.67  (0.11) 
Cash flow from operating activities before changes in working capital (6,7) 125.1  63.0   293.6  109.6  
Free cash flow (6) 117.2  16.7   187.7  (42.5) 
Cash, cash equivalents and term deposits$504.4 $134.9  $504.4 $134.9  


(1)Excludes sales of inventory mined at Lamaque during the pre-commercial production period (Q1 2019).
(2)Includes pre-commercial production at Lamaque (Q1 2019).
(3)By-product revenues are off-set against cash operating costs.
(4)Attributable to shareholders of the Company.
(5)See reconciliation of net earnings (loss) to adjusted net earnings (loss) in the section 'Non-IFRS Measures' in the September 30, 2020 MD&A.
(6)These measures are non-IFRS measures. See the September 30, 2020 MD&A for explanations and discussion of these non-IFRS measures.
(7)2019 amounts have been adjusted to conform with 2020 presentation. See the section 'Non-IFRS Measures' in the September 30, 2020 MD&A for detail.


Gold production of 136,922 ounces increased 35% from last year’s third quarter production of 101,596 ounces. Gold sales totalled 137,704 ounces in Q3 2020, an increase of 39% from 99,241 ounces sold in Q3 2019. The higher sales volume compared with the prior year reflected an increase of 23,690 ounces sold at Kisladag due to increased tonnes of stacked ore, an increase of 7,465 ounces sold at Lamaque due to increased tonnes processed and an increase of 8,420 ounces sold at Olympias as a result of increased production. Gold sales at Efemcukuru in Q3 2020 decreased slightly by 1,112 ounces from the prior year due to a decrease in grade, combined with lower tonnes processed in the quarter.

Total revenue was $287.60 million in Q3 2020, an increase of 67% from $172.3 million in Q3 2019. The increase was due to increased sales volume combined with a higher average realized gold price.

Cash operating costs per ounce sold in Q3 2020 averaged $537, a decrease from $560 in Q3 2019. The improvement was primarily due to higher production at Kisladag with an increase in stacked ore on the heap leach pad, higher production and grade at Olympias and increased mining rates at Lamaque following the receipt of authorization in March 2020 to increase mine production. Cash operating costs per ounce sold also benefited from a weakening of the Turkish Lira throughout 2020.

Total cash costs per ounce sold were negatively impacted throughout 2020 by higher gold royalty rates in both Greece and Turkey which increased in line with higher gold prices. Total cash costs were negatively impacted in Q3 2020 by an incremental 25% increase to 2020 gold royalty rates in Turkey, announced in September and retroactive to January 1, 2020. $4.1 million of additional royalty expense was recorded in Q3 2020 to reflect the additional royalty cost associated with gold sales during the first six months of 2020.

We reported net earnings attributable to shareholders of $41.0 million ($0.24 per share) in Q3 2020, compared to net earnings of $4.2 million ($0.03 per share) in Q3 2019. The improvement reflects higher production and sales volumes, combined with a higher average realized gold price.

Adjusted net earnings were $56.7 million ($0.33 per share) in Q3 2020 compared to adjusted net earnings of $7.6 million ($0.05 per share) in Q3 2019. Adjusted net earnings in Q3 2020 removes, among other things, a $8.3 million loss on foreign exchange due to translation of deferred tax balances, $7.9 million of finance costs related to the $58.6 million redemption of the senior secured notes in Q3 2020 and a $2.5 million gain on disposal of the Vila Nova mine in Q3 2020.

Gold Operations

  3 months ended September 30,  9 months ended September 30, 
  2020  2019  2020  2019 
Total    
Ounces produced (1) 136,922  101,596  390,654  276,376 
Ounces sold (2) 137,704  99,241  388,883  256,000 
Cash operating costs ($/oz sold) (4)$537 $560 $568 $602 
All-in sustaining costs ($/oz sold) (4)$918 $1,031 $908 $998 
Sustaining capex (4)$22.1 $30.0 $63.4 $56.3 
Kisladag    
Ounces produced (3) 59,593  35,885  169,659  89,204 
Ounces sold 59,571  35,881  171,088  89,208 
Cash operating costs ($/oz sold) (4)$440 $399 $452 $442 
All-in sustaining costs ($/oz sold) (4)$708 $566 $641 $580 
Sustaining capex (4)$5.3 $3.9 $13.7 $8.0 
Lamaque    
Ounces produced (1) 39,525  32,037  99,973  84,855 
Ounces sold (2) 38,587  31,122  97,279  55,452 
Cash operating costs ($/oz sold) (4)$494 $480 $530 $496 
All-in sustaining costs ($/oz sold) (4)$747 $1,089 $844 $968 
Sustaining capex (4)$6.8 $15.9 $23.1 $21.2 
Efemcukuru    
Ounces produced 23,892  25,733  74,007  77,524 
Ounces sold 24,471  25,583  73,384  80,222 
Cash operating costs ($/oz sold) (4)$561 $591 $577 $596 
All-in sustaining costs ($/oz sold) (4)$1,012 $900 $894 $859 
Sustaining capex (4)$5.1 $5.2 $11.8 $14.2 
Olympias    
Ounces produced 13,912  7,941  47,015  24,793 
Ounces sold 15,075  6,655  47,132  31,118 
Cash operating costs ($/oz sold) (4)$992 $1,678 $1,056 $1,268 
All-in sustaining costs ($/oz sold) (4)$1,450 $2,598 $1,484 $1,776 
Sustaining capex (4)$4.9 $4.9 $14.8 $12.9 

 

(1)Includes pre-commercial production at Lamaque (Q1 2019).
(2)Excludes sales of inventory produced at Lamaque during the pre-commercial production period (Q1 2019).
(3)Kisladag resumed mining, crushing and placing ore on the heap leach pad on April 1, 2019. This activity had been suspended since April 2018.
(4)These measures are non-IFRS measures. See the September 30, 2020 MD&A for explanations and discussion of these non-IFRS measures.

Corporate

On October 29, 2020, the Company issued a redemption notice for the senior secured notes and intends to redeem $7.5 million of the principal amount of the senior secured notes in December 2020. The redemption amount is based on flow-through shares issued in the quarter and the redemption price is 109.5% of the aggregate principal amount repaid, plus accrued and unpaid interest.

We are pleased to announce that Lisa Ower has been promoted to Executive Vice President, People and External Affairs. Lisa has been with the Company for two years and has been integral in strengthening our corporate culture and people practices. We are also pleased to announce that Brian Berney has been appointed to the role of Executive General Manager, Greece and will oversee operations at our Greek mines, and that Justin Kapla has been appointed as General Manager, Kisladag. Both Brian and Justin bring significant experience in mine operations and will support our focus on operational performance.

Conference Call

A conference call to discuss the details of the Company’s Q3 2020 results will be held by senior management on Friday, October 30, 2020 at 8:30 AM PT (11:30 AM ET). The call will be webcast and can be accessed at Eldorado Gold’s website: www.eldoradogold.com and via this link: http://services.choruscall.ca/links/eldoradogold20201030.html

Conference Call Details Replay (available until Dec. 4, 2020)
Date:October 30, 2020 Vancouver:+1 604 638 9010
Time:11:30 am ET (8:30 am PT) Toll Free:1 800 319 6413
Dial in:+1 604 638 5340 Pass code:5357
Toll free:1 800 319 4610   

About Eldorado Gold

Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkey, Canada, Greece, Romania and Brazil. The Company has a highly skilled and dedicated workforce, safe and responsible operations, a portfolio of high-quality assets, and long-term partnerships with local communities. Eldorado's common shares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).

Contact

Investor Relations

Peter Lekich, Manager Investor Relations
604.687.4018 or 1.888.353.8166 peter.lekich@eldoradogold.com

Media

Louise Burgess, Director Communications & Government Relations
604.601.6679 or 1.888.363.8166 louise.burgess@eldoradogold.com

Non-IFRS Measures

Certain non-IFRS measures are included in this press release, including average realized gold price per ounce sold, 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, adjusted net earnings/(loss), adjusted net earnings/(loss) per share, working capital, cash flow from operations before changes in non-cash working capital, earnings before interest, taxes and depreciation and amortization ("EBITDA") and adjusted earnings before interest, taxes and depreciation and amortization ("Adjusted EBITDA"), free cash flow and sustaining capital. Please see the September 30, 2020 MD&A for explanations and discussion of these non-IFRS measures. The Company believes that these measures, in addition to conventional measures prepared in accordance with International Financial Reporting Standards (“IFRS”), provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.

Cautionary Note about Forward-looking Statements and Information

Certain of the statements made and information provided in this press release are forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Often, these forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", “continue”, “projected”, "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking statements or information contained in this release include, but are not limited to, statements or information with respect to: the duration, extent and other implications of COVID-19 and any restrictions and suspensions with respect to our operations; our expectations regarding the timing and quantity annual gold production; our strategy with respect to non-core assets; expected benefits resulting from design improvements at Kisladag; timing of construction and expected benefits resulting from design improvements at Skouries; timing of drilling activities at the Stratoni mine; our guidance and outlook, including expected production, cost guidance and recoveries of gold, including higher gold bearing solution volumes and increased heap leach recoveries through increased leach time in conjunction with a high pressure grinding roll and related upgrades at Kisladag; timing and cost of the construction of an underground decline at the Triangle mine and the associated benefits; expansion at Lamaque, Efemcukuru, Olympias and Stratoni; the success of a column flotation system in improving concentrate grade and quality and lowering transportation and concentrate treatment charges at Efemcukuru; favourable economics for our heap leaching plan and the ability to extend mine life at our projects; planned capital and exploration expenditures, including at Olympias, Lamaque and Stratoni and the timing thereof; conversion of mineral resources to mineral reserves; the qualification of common shares as flow-through shares for Canadian tax purposes; the evaluation of alternative mechanized mining technologies; our expectation as to our future financial and operating performance, including expectations around generating free cash flow; working capital requirements; debt repayment obligations; use of proceeds from financing activities; expected metallurgical recoveries and improved concentrate grade and quality; gold price outlook and the global concentrate market; redemption of senior secured notes; risk factors affecting our business; our strategy, plans and goals, including our proposed exploration, development, construction, permitting and operating plans and priorities and related timelines; and schedules and results of litigation and arbitration proceedings.

Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, market uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.

We have made certain assumptions about the forward-looking statements and information, including assumptions about: how the world-wide economic and social impact of COVID-19 is managed and the duration and extent of the COVID-19 pandemic; timing and cost of construction, including in respect of an underground decline at the Triangle mine and the associated benefits; benefits of the improvements at Kisladag; 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 costs, expenses and working capital requirements; production, mineral reserves and resources and metallurgical recoveries; the impact of acquisitions, dispositions, suspensions or delays on our business; and the ability to achieve our goals. . In particular, except where otherwise stated, we have assumed a continuation of existing business operations on substantially the same basis as exists at the time of this release.

Even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Many assumptions may be difficult to predict and are beyond our control.

Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others: global outbreaks of infectious diseases, including COVID-19; timing and cost of construction, including in respect of an underground decline at the Triangle mine and the associated benefits; results of further testwork; recoveries of gold and other metals; geopolitical and economic climate (global and local), risks related to mineral tenure and permits; gold and other commodity price volatility; information technology systems risks; continued softening of the global concentrate market; risks regarding potential and pending litigation and arbitration proceedings relating to our business, properties and operations; expected impact on reserves and the carrying value; the updating of the reserve and resource models and life of mine plans; mining operational and development risk; financing risks; foreign country operational risks; risks of sovereign investment; regulatory risks and liabilities including environmental regulatory restrictions and liability; discrepancies between actual and estimated production; mineral reserves and resources and metallurgical testing and recoveries; additional funding requirements; currency fluctuations; community and non-governmental organization actions; speculative nature of gold exploration; dilution; share price volatility and the price of our common shares; competition; loss of key employees; and defective title to mineral claims or properties, as well as those risk factors discussed in the sections titled “Forward-Looking Statements” and "Risk factors in our business" in the Company's most recent Annual Information Form & Form 40-F. The reader is directed to carefully review the detailed risk discussion in our most recent Annual Information Form filed on SEDAR 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 the Company’s business and operations.

Forward-looking statements and information is designed to help you understand management’s current views of our near and longer term prospects, and it may not be appropriate for other purposes.

There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change.

Financial Information and condensed statements contained herein or attached hereto may not be suitable for readers that are unfamiliar with the Company and is not a substitute for reading the Company’s financial statements and related MD&A available on our website and on SEDAR and EDGAR under our Company name. The reader is directed to carefully review such document for a full understanding of the financial information summarized herein.

Except as otherwise noted, scientific and technical information contained in this press release was reviewed and approved by Paul Skayman, FAusIMM, Consultant to the Company and a "qualified person" under NI 43-101.



Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Financial Position

(Unaudited – in thousands of U.S. dollars)

As atNote  September 30, 2020   December 31, 2019 
ASSETS     
Current assets     
Cash and cash equivalents  $450,999  $177,742 
Term deposits  53,364  3,275 
Marketable securities  195  3,828 
Accounts receivable and other4 76,381  75,310 
Inventories5 169,206  163,234 
Current portion of employee benefit plan assets  6,168   
Assets held for sale12   12,471 
   756,313  435,860 
Restricted cash  2,003  3,080 
Other assets  38,547  22,943 
Employee benefit plan assets    6,244 
Property, plant and equipment  4,027,210  4,088,202 
Goodwill  92,591  92,591 
   $4,916,664  $4,648,920 
LIABILITIES & EQUITY     
Current liabilities     
Accounts payable and accrued liabilities  $195,088  $139,104 
Current portion of capital lease liabilities  10,530  9,913 
Current portion of debt6 216,667  66,667 
Current portion of asset retirement obligations  1,783  1,782 
Liabilities associated with assets held for sale12   4,257 
   424,068  221,723 
Debt6 326,224  413,065 
Lease liabilities  9,492  15,143 
Employee benefit plan obligations  18,377  18,224 
Asset retirement obligations  94,029  94,235 
Deferred income tax liabilities  410,166  412,717 
   1,282,356  1,175,107 
Equity     
Share capital10 3,142,607  3,054,563 
Treasury stock  (11,581) (8,662)
Contributed surplus  2,636,507  2,627,441 
Accumulated other comprehensive loss  (27,824) (28,966)
Deficit  (2,148,120) (2,229,867)
Total equity attributable to shareholders of the Company  3,591,589  3,414,509 
Attributable to non-controlling interests11 42,719  59,304 
   3,634,308  3,473,813 
   $4,916,664  $4,648,920 



Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Operations
For the three and nine months ended September 30, 2020 and 2019
(Unaudited – in thousands of U.S. dollars except share and per share amounts)

   Three months ended Nine months ended
   September 30, September 30,
 Note  2020    2019    2020    2019  
Revenue         
Metal sales7 $287,595   $172,256   $748,167   $425,958  
          
Cost of sales         
Production costs  117,386   84,813   328,225   237,630  
Depreciation and amortization  65,538   40,017   176,229   101,147  
   182,924   124,830   504,454   338,777  
          
Earnings from mine operations  104,671   47,426   243,713   87,181  
          
Exploration and evaluation expenses  4,080   2,774   9,640   10,668  
Mine standby costs8 3,042   2,529   12,101   13,972  
General and administrative expenses  6,634   7,431   21,078   22,687  
Employee benefit plan expense  496   458   1,953   1,567  
Share-based payments expense13 2,586   2,727   7,244   8,127  
Reversal of impairment           (11,690) 
Write-down (reversal) of assets  29   (414)  (63)  13  
Foreign exchange loss (gain)  (4,345)  643   (6,345)  878  
Earnings from operations  92,149   31,278   198,105   40,959  
          
Other income9 4,740   871   4,776   11,159  
Finance costs9 (19,894)  (13,170)  (42,581)  (37,287) 
Earnings from continuing operations before income tax  76,995   18,979   160,300   14,831  
          
Income tax expense  38,691   15,888   83,767   29,930  
Net earnings (loss) for the period  $38,304   $3,091   $76,533   $(15,099) 
          
Attributable to:         
Shareholders of the Company  41,009   4,233   81,747   (10,581) 
Non-controlling interests  (2,705)  (1,142)  (5,214)  (4,518) 
Net earnings (loss) for the period  $38,304   $3,091   $76,533   $(15,099) 
          
Weighted average number of shares outstanding (thousands)         
Basic  173,822   158,462   169,676   158,409  
Diluted  178,131   161,735   173,732   158,409  
          
Net earnings (loss) per share attributable to shareholders of the Company:         
Basic earnings (loss) per share  $0.24   $0.03   $0.48   $(0.07) 
Diluted earnings (loss) per share  $0.23   $0.03   $0.47   $(0.07) 



Eldorado Gold Corporation                                                    
Condensed Consolidated Interim Statements of Comprehensive Income (Loss)
For the three and nine months ended September 30, 2020 and 2019
(Unaudited – in thousands of U.S. dollars)

   Three months ended Nine months ended
   September 30, September 30,
    2020    2019    2020    2019  
          
Net earnings (loss) for the period  $38,304   $3,091   $76,533   $(15,099) 
Other comprehensive (loss) income:         
Items that will not be reclassified to earnings or loss:         
Change in fair value of investments in equity securities, net of tax  669   (378)  1,567   785  
Actuarial losses on employee benefit plans, net of tax  (227)  (178)  (425)  (587) 
Total other comprehensive income (loss) for the period  442   (556)  1,142   198  
Total comprehensive income (loss) for the period  $38,746   $2,535   $77,675   $(14,901) 
          
Attributable to:         
Shareholders of the Company  41,451   3,677   82,889   (10,383) 
Non-controlling interests  (2,705)  (1,142)  (5,214)  (4,518) 
   $38,746   $2,535   $77,675   $(14,901) 



Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Cash Flows
For the three and nine months ended September 30, 2020 and 2019
(Unaudited – in thousands of U.S. dollars)

   Three months ended Nine months ended
   September 30, September 30,
 Note  2020    2019    2020    2019  
Cash flows generated from (used in):         
Operating activities         
Net earnings (loss) for the period  $38,304   $3,091   $76,533   $(15,099) 
Items not affecting cash:         
Depreciation and amortization  66,078   41,759   177,888   102,889  
Finance costs  19,859   13,170   42,581   37,287  
Interest income  (429)  (251)  (1,712)  (2,405) 
Unrealized foreign exchange gain  (4,582)  (555)  (7,632)  (906) 
Income tax expense  38,691   15,888   83,767   29,930  
Loss on disposal of assets  281   49   2,831   1,062  
Gain on the sale of Vila Nova12 (2,451)     (2,451)    
Write-down (reversal) of assets  29   (414)  (63)  13  
Share-based payments expense13 2,586   2,727   7,244   8,127  
Employee benefit plan expense  496   458   1,953   1,567  
Income from royalty sale           (8,075) 
Reversal of impairment           (11,690) 
   158,862   75,922   380,939   142,700  
Property reclamation payments  (618)  (759)  (1,618)  (2,555) 
Employee benefit plan payments  (1,284)  (332)  (1,955)  (1,681) 
Income taxes paid  (22,899)  (8,593)  (55,746)  (12,603) 
Interest paid  (9,370)  (3,505)  (29,728)  (18,641) 
Interest received  429   251   1,712   2,405  
Changes in non-cash working capital15 40,281   (11,777)  24,694   (8,023) 
Net cash generated from operating activities  165,401   51,207   318,298   101,602  
          
Investing activities         
Purchase of property, plant and equipment  (50,850)  (34,760)  (128,458)  (148,700) 
Proceeds from the sale of property, plant and equipment  344   108   1,049   3,880  
Proceeds from the sale of Vila Nova, net of cash disposed12 9,896      9,896     
Value added taxes related to mineral property expenditures, net  (12,800)  104   (18,283)  (7,615) 
Proceeds from the sale of marketable securities  5,237      5,237     
Decrease (increase) in term deposits  (48,528)  (114)  (50,089)  1,757  
Decrease (increase) in restricted cash  (20)  297   1,077   10,491  
Capitalized interest           (3,848) 
Proceeds on pre-commercial production sales, net           12,159  
Net cash used in investing activities  (96,721)  (34,365)  (179,571)  (131,876) 
          
Financing activities         
Cash received for issuance of shares  7,820   161   94,899   179  
Acquisition of non-controlling interest11       (7,500)    
Contributions from non-controlling interests     220   301   220  
Proceeds from borrowings6       150,000   494,000  
Repayment of borrowings6 (58,574)     (91,907)  (600,000) 
Loan financing costs     (428)     (15,423) 
Principal portion of lease liabilities  (2,551)  (2,387)  (7,584)  (4,773) 
Purchase of treasury stock        (3,679)    
Net cash generated from (used in) financing activities   (53,305)  (2,434)  134,530   (125,797) 
          
Net increase (decrease) in cash and cash equivalents  15,375   14,408   273,257   (156,071) 
Cash and cash equivalents - beginning of period  435,624   115,109   177,742   286,312  
Cash in disposal group held for sale     461      (263) 
Cash and cash equivalents - end of period   $450,999   $129,978   $450,999   $129,978  



Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Changes in Equity
For the three and nine months ended September 30, 2020 and 2019
(Unaudited – in thousands of U.S. dollars)

  Three months ended Nine months ended
  September 30, September 30,
   2020    2019    2020    2019  
Share capital        
Balance beginning of period $3,135,955   $3,007,944   $3,054,563   $3,007,924  
Shares issued upon exercise of share options, for cash 185   161   2,001   179  
Transfer of contributed surplus on exercise of options 71   67   801   69  
Shares issued to the public, net of share issuance costs 6,396      85,242     
Balance end of period $3,142,607   $3,008,172   $3,142,607   $3,008,172  
         
Treasury stock        
Balance beginning of period $(11,587)  $(8,813)  $(8,662)  $(10,104) 
Purchase of treasury stock (Note 13(b))       (3,679)    
Shares redeemed upon exercise of restricted share units 6   76   760   1,367  
Balance end of period $(11,581)  $(8,737)  $(11,581)  $(8,737) 
         
Contributed surplus        
Balance beginning of period $2,634,246   $2,623,523   $2,627,441   $2,620,799  
Share based payments 2,338   2,077   6,456   6,094  
Acquisition of non-controlling interest (Note 11)       4,171     
Shares redeemed upon exercise of restricted share units (6)  (76)  (760)  (1,367) 
Transfer to share capital on exercise of options (71)  (67)  (801)  (69) 
Balance end of period $2,636,507   $2,625,457   $2,636,507   $2,625,457  
         
Accumulated other comprehensive loss        
Balance beginning of period $(28,266)  $(23,740)  $(28,966)  $(24,494) 
Other comprehensive income (loss) for the period 442   (556)  1,142   198  
Balance end of period $(27,824)  $(24,296)  $(27,824)  $(24,296) 
         
Deficit        
Balance beginning of period $(2,189,129)  $(2,325,267)  $(2,229,867)  $(2,310,453) 
Net earnings (loss) attributable to shareholders of the Company 41,009   4,233   81,747   (10,581) 
Balance end of period $(2,148,120)  $(2,321,034)  $(2,148,120)  $(2,321,034) 
Total equity attributable to shareholders of the Company $3,591,589   $3,279,562   $3,591,589   $3,279,562  
         
Non-controlling interests        
Balance beginning of period $45,424   $60,257   $59,304   $63,414  
Net loss attributable to non-controlling interests (2,705)  (1,142)  (5,214)  (4,518) 
Acquisition of non-controlling interest (Note 11)       (11,672)    
Contributions from non-controlling interests    1   301   220  
Balance end of period $42,719   $59,116   $42,719   $59,116  
Total equity $3,634,308   $3,338,678   $3,634,308   $3,338,678  


Please see the Condensed Consolidated Interim Financial Statements dated September 30, 2020 for notes to the accounts.