Eldorado Gold Corporation, (TSX: ELD) (NYSE: EGO) reports the Company’s financial and operational results for the fourth quarter and year ended December 31, 2020. For further information please see the Company’s Consolidated Financial Statements and Management’s Discussion and Analysis filed on SEDAR at www.sedar.com under the Company’s profile.
Year-End Financial and Operating Results Overview and Subsequent Period Highlights
Fourth Quarter 2020 Highlights
“Eldorado’s strong fourth-quarter finish to 2020 caps a year in which we delivered on our original guidance, generated strong free cash flow and continued to strengthen our overall capital position,” said George Burns, Eldorado’s President and Chief Executive Officer. “That this was accomplished during an historically challenging global operating environment is a tribute to the dedication of our people.
“We enter 2021 positioned once again to deliver, both operationally and at our most important growth projects. Consistent with Eldorado’s disciplined approach to capital allocation, we will continue to strengthen our balance sheet while reinvesting in mine and project development programs that prioritize profitability and strong returns. Chief among these is the advancement of the world-class Skouries project in Greece. Our recently signed amended investment agreement with the Greek government sets the stage for a productive and mutually beneficial relationship with the Hellenic Republic. Our focus in 2021 is on unlocking the compelling value at Skouries and throughout our portfolio.”
The Company also announced this week maiden Inferred Mineral Resources of 2.6 million tonnes at a grade of 9.5 grams per tonne for 803,000 ounces of gold at the recently-discovered Ormaque deposit near the Lamaque operations in Québec. Over 60% of the resource is in the upper part of the deposit within 400 metres of surface. Exploration in 2021 is focused on in-fill and expansion drilling, as the deposit remains open in multiple directions.
“Exploration success at Ormaque is an important milestone that could lead to a second underground mine to feed the Sigma mill. The growing exploration footprint and targets at Lamaque coupled with low cost expandability of the Sigma plant offer a compelling opportunity to create additional value at Lamaque,” added Burns.
Consolidated Financial and Operational Highlights
Summarized Annual Financial Results
2020 | 2019 | 2018 | ||||||||
Revenue (1) | $ | 1,026.7 | $ | 617.8 | $ | 459.0 | ||||
Gold revenue (1) | $ | 938.3 | $ | 530.9 | $ | 386.0 | ||||
Gold produced (oz) (2) | 528,874 | 395,331 | 349,147 | |||||||
Gold sold (oz) (1) | 526,406 | 374,902 | 304,256 | |||||||
Average realized gold price ($/oz sold) (6) | $ | 1,783 | $ | 1,416 | $ | 1,269 | ||||
Cash operating costs ($/oz sold) (3,6) | 560 | 608 | 625 | |||||||
Total cash costs ($/oz sold) (3,6) | 649 | 645 | 650 | |||||||
All-in sustaining costs ($/oz sold) (3,6) | 921 | 1,034 | 994 | |||||||
Net earnings (loss) for the period (4) | 104.5 | 80.6 | (361.9 | ) | ||||||
Net earnings (loss) per share – basic ($/share) (4) | 0.61 | 0.51 | (2.28 | ) | ||||||
Adjusted net earnings (loss) (4,5,6,7) | 170.9 | 2.4 | (30.1 | ) | ||||||
Adjusted net earnings (loss) per share ($/share) (4,5,6,7) | 1.00 | 0.02 | (0.19 | ) | ||||||
Cash flow from operating activities before changes in working capital (6,8) | 390.8 | 149.9 | 61.1 | |||||||
Free cash flow (6) | 236.2 | (37.1 | ) | (187.8 | ) | |||||
Cash, cash equivalents and term deposits | 511.0 | 181.0 | 293.0 |
(1) | Excludes sales of inventory mined at Lamaque and Olympias during the pre-commercial production periods. |
(2) | Includes pre-commercial production at Lamaque (2018, Q1 2019) and at Olympias (Q1 2018). |
(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 MD&A section ‘Non-IFRS Measures’. |
(6) | These measures are non-IFRS measures. See the MD&A section ‘Non-IFRS Measures’ for explanations and discussion of these non-IFRS measures. |
(7) | 2019 and 2018 amounts have been adjusted to conform with 2020 presentation by excluding adjustments relating to normal course gains on disposal of assets (2019: $7.4 million, 2018: nil) and inventory write-downs (2019: $2.5 million, 2018: $1.5 million). Adjusted net earnings as originally presented in 2019 were $5.6 million ($0.04 per share) and Adjusted net loss as originally presented for 2018 was $28.6 million ($0.17 loss per share). |
(8) | 2019 amount has been adjusted to reflect a $0.7 million reclassification within cash flow from operating activities in the current period. 2018 adjustment was negligible. |
Summarized Quarterly Financial Results
2020 | Q1 | Q2 | Q3 | Q4 | 2020 | ||||||||||||
Revenue | $ | 204.7 | $ | 255.9 | $ | 287.6 | $ | 278.5 | $ | 1,026.7 | |||||||
Gold revenue | $ | 185.4 | $ | 235.0 | $ | 264.3 | $ | 253.7 | $ | 938.3 | |||||||
Gold produced (oz) | 115,950 | 137,782 | 136,922 | 138,220 | 528,874 | ||||||||||||
Gold sold (oz) | 116,219 | 134,960 | 137,704 | 137,523 | 526,406 | ||||||||||||
Average realized gold price ($/oz sold) (6) | $ | 1,580 | $ | 1,726 | $ | 1,919 | $ | 1,845 | $ | 1,783 | |||||||
Cash operating cost ($/oz sold) (3,6) | 627 | 550 | 537 | 536 | 560 | ||||||||||||
Total cash cost ($/oz sold) (3,6) | 678 | 616 | 664 | 640 | 649 | ||||||||||||
All-in sustaining cost ($/oz sold) (3,6) | 952 | 859 | 918 | 959 | 921 | ||||||||||||
Net earnings (loss) (4) | (4.9 | ) | 45.6 | 41.0 | 22.8 | 104.5 | |||||||||||
Net earnings (loss) per share – basic ($/share) (4) | (0.03 | ) | 0.27 | 0.24 | 0.13 | 0.61 | |||||||||||
Adjusted net earnings (loss) (4,5,6) | 12.5 | 43.8 | 56.7 | 58.0 | 170.9 | ||||||||||||
Adjusted net earnings (loss) per share ($/share) (4,5,6) | 0.08 | 0.26 | 0.33 | 0.33 | 1.00 | ||||||||||||
Cash flow from operating activities before changes in working capital (6) | 69.4 | 99.0 | 125.1 | 97.2 | 390.8 | ||||||||||||
Free cash flow (6) | $ | 7.2 | $ | 63.4 | $ | 117.2 | $ | 48.4 | $ | 236.2 | |||||||
Cash, cash equivalents and term deposits | $ | 363.6 | $ | 440.3 | $ | 504.4 | $ | 511.0 | $ | 511.0 | |||||||
2019 | Q1 | Q2 | Q3 | Q4 | 2019 | ||||||||||||
Revenue (1) | $ | 80.0 | $ | 173.7 | $ | 172.3 | $ | 191.9 | $ | 617.8 | |||||||
Gold revenue (1) | $ | 54.5 | $ | 150.1 | $ | 150.2 | $ | 176.1 | $ | 530.9 | |||||||
Gold produced (oz) (2) | 82,977 | 91,803 | 101,596 | 118,955 | 395,331 | ||||||||||||
Gold sold (oz) (1) | 43,074 | 113,685 | 99,241 | 118,902 | 374,902 | ||||||||||||
Average realized gold price ($/oz sold) (6) | $ | 1,265 | $ | 1,321 | $ | 1,513 | $ | 1,475 | $ | 1,416 | |||||||
Cash operating cost ($/oz sold) (3,6) | 625 | 631 | 560 | 621 | 608 | ||||||||||||
Total cash cost ($/oz sold) (3,6) | 652 | 670 | 603 | 652 | 645 | ||||||||||||
All-in sustaining cost ($/oz sold) (3,6) | 1,132 | 917 | 1,031 | 1,110 | 1,034 | ||||||||||||
Net earnings (loss) (4) | (27.0 | ) | 12.2 | 4.2 | 91.2 | 80.6 | |||||||||||
Net earnings (loss) per share – basic ($/share) (4) | (0.17 | ) | 0.08 | 0.03 | 0.57 | 0.51 | |||||||||||
Adjusted net earnings (loss) (4,5,6,7) | (21.1 | ) | (3.5 | ) | 7.6 | 19.3 | 2.4 | ||||||||||
Adjusted net earnings (loss) per share ($/share) (4,5,6,7) | (0.13 | ) | (0.02 | ) | 0.05 | 0.12 | 0.02 | ||||||||||
Cash flow from operating activities before changes in working capital (6,8) | 8.1 | 38.5 | 63.0 | 40.4 | 149.9 | ||||||||||||
Free cash flow (6) | $ | (64.0 | ) | $ | 4.8 | $ | 16.7 | $ | 5.5 | $ | (37.1 | ) | |||||
Cash, cash equivalents and term deposits | $ | 227.5 | $ | 119.9 | $ | 134.9 | $ | 181.0 | $ | 181.0 |
(1) | Excludes sales of inventory mined at Lamaque and Olympias during the pre-commercial production periods. |
(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 MD&A section ‘Non-IFRS Measures’. |
(6) | These measures are non-IFRS measures. See the MD&A section ‘Non-IFRS Measures’ for explanations and discussion of these non-IFRS measures. |
(7) | 2019 amounts have been adjusted to conform with 2020 presentation by excluding adjustments relating to normal course gains on disposal of assets ($7.4 million) and inventory write-downs ($2.5 million). Adjusted net earnings as originally presented in 2019 were $5.6 million ($0.04 per share). |
(8) | 2019 amount has been adjusted to reflect a $0.7 million reclassification within cash flow from operating activities in the current period. |
Gold sales of 526,406 ounces in 2020 increased from 374,902 ounces in 2019. The 40% increase was primarily due to an increase of 88,158 ounces sold from Kisladag as a result of an increase in tonnes of ore stacked and placed under leach following the restart of full operations in 2019 and an increase of 55,524 ounces sold from Lamaque enabled by receipt of authorization in March 2020 to increase mine production.
Total revenues increased to $1,026.7 million in 2020 from $617.8 million in 2019 as a result of higher sales volumes and a higher average realized gold price of $1,783 per ounce compared to $1,416 per ounce in 2019.
Cash operating costs per ounce sold decreased to $560 in 2020 from $608 in 2019, primarily due to increased mining rates at Lamaque following the receipt of authorization in March 2020 to increase mine production, higher production at Olympias and reduced costs at Efemcukuru due to the weakening of the Turkish Lira during the year. These decreases were partly offset by an increase of cash operating costs per ounce sold at Kisladag resulting from decreases in the average grade of ore placed on the heap leach pad.
Net earnings attributable to shareholders of $104.5 million ($0.61 per share) in 2020 improved from $80.6 million ($0.51 per share) in 2019. The improvement was primarily a result of higher production and sales volumes combined with a higher average realized gold price. Net earnings attributable to shareholders of $22.8 million ($0.13 per share) in Q4 2020 decreased from $91.2 million ($0.57 per share) in Q4 2019 primarily due to the $40.0 million write-down of capital works in progress ($43.4 million combined with a net impairment reversal of $85.2 million ($68.2 million net of deferred income tax) for Kisladag in Q4 2019.
Adjusted net earnings were $170.9 million ($1.00 per share) in 2020, compared to $2.4 million ($0.02 per share) in 2019. Adjusted net earnings in 2020 removes, among other things, the $40.0 million non-cash write-down of capital works in progress, a $3.4 million VAT provision associated with the write-down, a $16.3 million net loss on foreign exchange due to translation of deferred tax balances, $8.6 million of finance costs related to the $66.1 million redemption of the senior secured notes during the year and the $2.5 million gain on disposal of the Vila Nova mine in Q3 2020. Adjusted net earnings were $58.0 million ($0.33 per share) in Q4 2020, compared to $19.3 million ($0.12 per share) in Q4 2019.
Higher sales volumes in 2020, combined with a higher gold price, resulted in EBITDA of $474.2 million, including $95.1 million in Q4 2020. Adjusted EBITDA of $534.0 million in 2020 and $144.2 million in Q4 2020 exclude, among other things, the $40.0 million write-down of capital works in progress.
Operations Update and Outlook
Gold Operations
3 months ended December 31, | 12 months ended December 31, | ||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 Outlook | |||||||||
Total | |||||||||||||
Ounces produced (1) | 138,220 | 118,955 | 528,874 | 395,331 | 430,000 – 460,000 | ||||||||
Ounces sold (2) | 137,523 | 118,902 | 526,406 | 374,902 | n/a | ||||||||
Cash operating costs ($/oz sold) (4) | $ | 536 | $ | 621 | $ | 560 | $ | 608 | $590 – 640 | ||||
All-in sustaining costs ($/oz sold) (4) | $ | 959 | $ | 1,110 | $ | 921 | $ | 1,034 | $920 – 1,150 | ||||
Sustaining capex (4) | $ | 29.1 | $ | 41.1 | $ | 92.5 | $ | 97.4 | $122 – 142 | ||||
Kisladag | |||||||||||||
Ounces produced (3) | 56,816 | 51,010 | 226,475 | 140,214 | 140,000 – 150,000 | ||||||||
Ounces sold | 55,807 | 49,529 | 226,895 | 138,737 | n/a | ||||||||
Cash operating costs ($/oz sold) (4) | $ | 447 | $ | 421 | $ | 451 | $ | 435 | $590 – 640 | ||||
All-in sustaining costs ($/oz sold) (4) | $ | 732 | $ | 616 | $ | 664 | $ | 593 | n/a | ||||
Sustaining capex (4) | $ | 6.5 | $ | 6.7 | $ | 20.1 | $ | 14.7 | $18 – 23 | ||||
Lamaque | |||||||||||||
Ounces produced (1) | 44,168 | 29,085 | 144,141 | 113,940 | 140,000 – 150,000 | ||||||||
Ounces sold (2) | 44,990 | 31,293 | 142,269 | 86,745 | n/a | ||||||||
Cash operating costs ($/oz sold) (4) | $ | 503 | $ | 663 | $ | 522 | $ | 556 | $560 – 610 | ||||
All-in sustaining costs ($/oz sold) (4) | $ | 789 | $ | 1,273 | $ | 827 | $ | 1,078 | n/a | ||||
Sustaining capex (4) | $ | 9.8 | $ | 17.0 | $ | 32.9 | $ | 38.2 | $48 – 53 | ||||
Efemcukuru | |||||||||||||
Ounces produced | 25,828 | 26,243 | 99,835 | 103,767 | 90,000 – 95,000 | ||||||||
Ounces sold | 24,956 | 25,530 | 98,340 | 105,752 | n/a | ||||||||
Cash operating costs ($/oz sold) (4) | $ | 493 | $ | 608 | $ | 556 | $ | 599 | $550 – 600 | ||||
All-in sustaining costs ($/oz sold) (4) | $ | 989 | $ | 1,122 | $ | 918 | $ | 923 | n/a | ||||
Sustaining capex (4) | $ | 7.3 | $ | 10.2 | $ | 19.1 | $ | 24.5 | $18 – 23 | ||||
Olympias | |||||||||||||
Ounces produced | 11,408 | 12,617 | 58,423 | 37,410 | 55,000 – 65,000 | ||||||||
Ounces sold | 11,770 | 12,550 | 58,902 | 43,668 | n/a | ||||||||
Cash operating costs ($/oz sold) (4) | $ | 1,166 | $ | 1,331 | $ | 1,078 | $ | 1,286 | $775 – 825 | ||||
All-in sustaining costs ($/oz sold) (4) | $ | 1,768 | $ | 1,986 | $ | 1,541 | $ | 1,837 | n/a | ||||
Sustaining capex (4) | $ | 5.5 | $ | 7.2 | $ | 20.2 | $ | 20.1 | $38 – 43 |
(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). During the year ended December 31, 2019, 27,627 ounces were sold from inventory produced during the pre-commercial production period at Lamaque. |
(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 MD&A section ‘Non-IFRS Measures’ for explanations and discussion of these non-IFRS measures. |
Gold production of 528,874 ounces in 2020 increased 34% from 395,331 ounces in 2019 primarily due to an increase in tonnes of ore stacked and placed under leach at Kisladag following the restart of full operations in 2019 and an increase at Lamaque enabled by receipt of authorization in March 2020 to increase mine production.
For further information on the Company’s operating results for the year-end and fourth quarter of 2020, please see the Company’s Management’s Discussion and Analysis filed on SEDAR at www.sedar.com under the Company’s profile.
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 and the New York Stock Exchange.
Eldorado Gold Corporation | |||||||||
Consolidated Statements of Financial Position |
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As at December 31, 2020 and December 31, 2019 | |||||||||
(In thousands of U.S. dollars) | |||||||||
Note | December 31, 2020 | December 31, 2019 | |||||||
ASSETS | |||||||||
Current assets | |||||||||
Cash and cash equivalents | 6 | $ | 451,962 | $ | 177,742 | ||||
Term deposits | 59,034 | 3,275 | |||||||
Accounts receivable and other | 7 | 73,216 | 79,138 | ||||||
Inventories | 8 | 176,271 | 163,234 | ||||||
Current portion of employee benefit plan assets | 17 | 5,749 | — | ||||||
Assets held for sale | 32 | — | 12,471 | ||||||
766,232 | 435,860 | ||||||||
Restricted cash | 2,097 | 3,080 | |||||||
Other assets | 9 | 39,562 | 22,943 | ||||||
Employee benefit plan assets | 17 | — | 6,244 | ||||||
Property, plant and equipment | 11 | 3,998,493 | 4,088,202 | ||||||
Goodwill | 12 | 92,591 | 92,591 | ||||||
$ | 4,898,975 | $ | 4,648,920 | ||||||
LIABILITIES & EQUITY | |||||||||
Current liabilities | |||||||||
Accounts payable and accrued liabilities | 14 | $ | 179,372 | $ | 139,104 | ||||
Current portion of lease liabilities | 11,297 | 9,913 | |||||||
Current portion of debt | 15 | 66,667 | 66,667 | ||||||
Current portion of asset retirement obligations | 16 | 4,701 | 1,782 | ||||||
Liabilities associated with assets held for sale | 32 | — | 4,257 | ||||||
262,037 | 221,723 | ||||||||
Debt | 15 | 434,465 | 413,065 | ||||||
Lease liabilities | 14,659 | 15,143 | |||||||
Employee benefit plan obligations | 17 | 21,974 | 18,224 | ||||||
Asset retirement obligations | 16 | 106,677 | 94,235 | ||||||
Deferred income tax liabilities | 19 | 402,713 | 412,717 | ||||||
1,242,525 | 1,175,107 | ||||||||
Equity | |||||||||
Share capital | 20 | 3,144,644 | 3,054,563 | ||||||
Treasury stock | (11,452 | ) | (8,662 | ) | |||||
Contributed surplus | 2,638,008 | 2,627,441 | |||||||
Accumulated other comprehensive loss | (30,297 | ) | (28,966 | ) | |||||
Deficit | (2,125,326 | ) | (2,229,867 | ) | |||||
Total equity attributable to shareholders of the Company | 3,615,577 | 3,414,509 | |||||||
Attributable to non-controlling interests | 40,873 | 59,304 | |||||||
3,656,450 | 3,473,813 | ||||||||
$ | 4,898,975 | $ | 4,648,920 | ||||||
Debt, Guarantees, Commitments and Contractual Obligations (Notes 15, 24)
Contingencies (Note 25), Subsequent events (Note 15(b), 34)
Approved on behalf of the Board of Directors | ||||||
(signed) John Webster Director | (signed) George Burns Director | |||||
Date of approval: February 25, 2021 |
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Eldorado Gold Corporation | |||||||||
Consolidated Statements of Operations |
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For the years ended December 31, 2020 and December 31, 2019 | |||||||||
(In thousands of U.S. dollars except share and per share amounts) | |||||||||
Note | Year ended December 31, 2020 |
Year ended December 31, 2019 |
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Revenue | |||||||||
Metal sales | 28 | $ | 1,026,685 | $ | 617,823 | ||||
Cost of sales | |||||||||
Production costs | 29 | 445,183 | 334,839 | ||||||
Depreciation and amortization | 246,651 | 153,118 | |||||||
691,834 | 487,957 | ||||||||
Earnings from mine operations | 334,851 | 129,866 | |||||||
Exploration and evaluation expenses | 12,693 | 14,643 | |||||||
Mine standby costs | 30 | 15,675 | 17,334 | ||||||
General and administrative expenses | 28,561 | 29,180 | |||||||
Employee benefit plan expense | 17 | 2,849 | 2,717 | ||||||
Share-based payments expense | 21 | 10,692 | 10,396 | ||||||
Reversal of impairment | 11 | — | (96,914 | ) | |||||
Write-down of assets | 11 | 38,660 | 6,298 | ||||||
Foreign exchange gain | (2,994 | ) | (625 | ) | |||||
Earnings from operations | 228,715 | 146,837 | |||||||
Other (expense) income | 18 | (1,277 | ) | 11,885 | |||||
Finance costs | 18 | (50,943 | ) | (45,266 | ) | ||||
Earnings before income tax | 176,495 | 113,456 | |||||||
Income tax expense | 19 | 79,134 | 39,771 | ||||||
Net earnings for the year | $ | 97,361 | $ | 73,685 | |||||
Attributable to: | |||||||||
Shareholders of the Company | 104,541 | 80,586 | |||||||
Non-controlling interests | 10 | (7,180 | ) | (6,901 | ) | ||||
Net earnings for the year | $ | 97,361 | $ | 73,685 | |||||
Weighted average number of shares outstanding (thousands) | 31 | ||||||||
Basic | 171,047 | 158,856 | |||||||
Diluted | 175,231 | 161,539 | |||||||
Net earnings per share attributable to shareholders of the Company: | |||||||||
Basic earnings per share | $ | 0.61 | $ | 0.51 | |||||
Diluted earnings per share | $ | 0.60 | $ | 0.50 |
Eldorado Gold Corporation |
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Consolidated Statements of Comprehensive Income (Loss) | |||||||||
For the years ended December 31, 2020 and December 31, 2019 |
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(In thousands of U.S. dollars) | |||||||||
Note | Year ended December 31, 2020 |
Year ended December 31, 2019 |
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Net earnings for the year | $ | 97,361 | $ | 73,685 | |||||
Other comprehensive income (loss): | |||||||||
Items that will not be reclassified to net earnings (loss): | |||||||||
Change in fair value of investments in equity securities, net of tax | 1,546 | 1,256 | |||||||
Actuarial losses on employee benefit plans | 17 | (3,440 | ) | (6,361 | ) | ||||
Income tax recovery on actuarial losses on employee benefit plans | 563 | 633 | |||||||
(1,331 | ) | (4,472 | ) | ||||||
Total comprehensive income for the year | $ | 96,030 | $ | 69,213 | |||||
Attributable to: | |||||||||
Shareholders of the Company | 103,210 | 76,114 | |||||||
Non-controlling interests | (7,180 | ) | (6,901 | ) | |||||
$ | 96,030 | $ | 69,213 |
Eldorado Gold Corporation |
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Consolidated Statements of Cash Flows | |||||||||
For the years ended December 31, 2020 and December 31, 2019 |
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(In thousands of U.S. dollars) | |||||||||
Cash flows generated from (used in): | Note | Year ended December 31, 2020 |
Year ended December 31, 2019 |
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Operating activities | |||||||||
Net earnings for the year | $ | 97,361 | $ | 73,685 | |||||
Items not affecting cash: | |||||||||
Depreciation and amortization | 248,790 | 155,331 | |||||||
Finance costs | 50,943 | 45,266 | |||||||
Interest income | (2,056 | ) | (2,760 | ) | |||||
Unrealized foreign exchange gain | (2,999 | ) | (790 | ) | |||||
Income from royalty sale | — | (8,075 | ) | ||||||
Income tax expense | 79,134 | 39,771 | |||||||
Net loss (gain) on disposal of assets | 2,587 | (656 | ) | ||||||
Reversal of impairment | 11 | — | (96,914 | ) | |||||
Write-down of assets | 11 | 38,660 | 6,298 | ||||||
Share based payments expense | 10,692 | 10,396 | |||||||
Employment benefit plan expense | 2,849 | 2,717 | |||||||
525,961 | 224,269 | ||||||||
Property reclamation payments | (2,301 | ) | (2,807 | ) | |||||
Employee benefit plan payments | (2,633 | ) | (2,587 | ) | |||||
Income taxes paid | (87,872 | ) | (36,242 | ) | |||||
Interest paid | (44,373 | ) | (35,479 | ) | |||||
Interest received | 2,056 | 2,760 | |||||||
Changes in non-cash operating working capital | 22 | 34,769 | 15,912 | ||||||
Net cash generated from operating activities | 425,607 | 165,826 | |||||||
Investing activities | |||||||||
Purchase of property, plant and equipment | (190,908 | ) | (214,505 | ) | |||||
Capitalized interest paid | — | (3,848 | ) | ||||||
Proceeds from the sale of property, plant and equipment | 1,790 | 6,605 | |||||||
Proceeds on pre-commercial production sales, net | 11 | — | 12,159 | ||||||
Purchase of investment in associate | — | (3,107 | ) | ||||||
Proceeds from sale of mining interest | 9,896 | 1,397 | |||||||
Value added taxes related to mineral property expenditures, net | (15,468 | ) | (1,590 | ) | |||||
Proceeds from the sale of marketable securities | 5,237 | — | |||||||
Decrease (increase) in term deposits | (55,759 | ) | 3,371 | ||||||
Decrease in restricted cash | 983 | 10,644 | |||||||
Net cash used in investing activities | (244,229 | ) | (188,874 | ) | |||||
Financing activities | |||||||||
Issuance of common shares for cash, net of issuance costs | 95,992 | 40,066 | |||||||
Acquisition of non-controlling interest, without change in control | 10 | (7,500 | ) | — | |||||
Contributions from non-controlling interests | 421 | 2,791 | |||||||
Proceeds from borrowings | 150,000 | 494,000 | |||||||
Repayment of borrowings | (132,714 | ) | (600,000 | ) | |||||
Loan financing costs | — | (15,583 | ) | ||||||
Principal portion of lease liabilities | (9,807 | ) | (6,729 | ) | |||||
Purchase of treasury stock | (3,550 | ) | — | ||||||
Net cash generated from (used in) financing activities | 92,842 | (85,455 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | 274,220 | (108,503 | ) | ||||||
Cash and cash equivalents – beginning of year | 177,742 | 286,312 | |||||||
Cash in disposal group held for sale | — | (67 | ) | ||||||
Cash and cash equivalents – end of year | $ | 451,962 | $ | 177,742 |
Eldorado Gold Corporation |
|||||||||
Consolidated Statements of Changes in Equity | |||||||||
For the years ended December 31, 2020 and December 31, 2019 |
|||||||||
(In thousands of U.S. dollars) | |||||||||
Note | Year ended December 31, 2020 |
Year ended December 31, 2019 |
|||||||
Share capital | |||||||||
Balance beginning of year | $ | 3,054,563 | $ | 3,007,924 | |||||
Shares issued upon exercise of share options, for cash | 3,559 | 265 | |||||||
Transfer of contributed surplus on exercise of options | 1,267 | 103 | |||||||
Shares issued to the public, net of share issuance costs | 85,255 | 46,271 | |||||||
Balance end of year | 20 | $ | 3,144,644 | $ | 3,054,563 | ||||
Treasury stock | |||||||||
Balance beginning of year | $ | (8,662 | ) | $ | (10,104 | ) | |||
Purchase of treasury stock | 21 | (3,550 | ) | — | |||||
Shares redeemed upon exercise of restricted share units | 760 | 1,442 | |||||||
Balance end of year | $ | (11,452 | ) | $ | (8,662 | ) | |||
Contributed surplus | |||||||||
Balance beginning of year | $ | 2,627,441 | $ | 2,620,799 | |||||
Share based payment arrangements | 8,422 | 8,187 | |||||||
Shares redeemed upon exercise of restricted share units | (760 | ) | (1,442 | ) | |||||
Acquisition of non-controlling interest, without change in control | 10 | 4,172 | — | ||||||
Transfer to share capital on exercise of options | (1,267 | ) | (103 | ) | |||||
Balance end of year | $ | 2,638,008 | $ | 2,627,441 | |||||
Accumulated other comprehensive loss | |||||||||
Balance beginning of year | $ | (28,966 | ) | $ | (24,494 | ) | |||
Other comprehensive loss for the year attributable to shareholders of the Company | (1,331 | ) | (4,472 | ) | |||||
Balance end of year | $ | (30,297 | ) | $ | (28,966 | ) | |||
Deficit | |||||||||
Balance beginning of year | $ | (2,229,867 | ) | $ | (2,310,453 | ) | |||
Earnings attributable to shareholders of the Company | 104,541 | 80,586 | |||||||
Balance end of year | $ | (2,125,326 | ) | $ | (2,229,867 | ) | |||
Total equity attributable to shareholders of the Company | $ | 3,615,577 | $ | 3,414,509 | |||||
Non-controlling interests | |||||||||
Balance beginning of year | $ | 59,304 | $ | 63,414 | |||||
Acquisition of non-controlling interest, without change in control | 10 | (11,672 | ) | — | |||||
Loss attributable to non-controlling interests | (7,180 | ) | (6,901 | ) | |||||
Contributions from non-controlling interests | 421 | 2,791 | |||||||
Balance end of year | $ | 40,873 | $ | 59,304 | |||||
Total equity | $ | 3,656,450 | $ | 3,473,813 | |||||
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