Eldorado Gold Corporation: Q3, 2010 Financial and Operating Results; Earnings of $0.09 Per Share; Cash Flow From Operations of $0.18 Per Share
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/28/10 -- (all figures in United States dollars, unless otherwise noted) -
Paul N. Wright, President and Chief Executive Officer of Eldorado Gold Corporation (TSX: ELD)(NYSE: EGO)(ASX: EAU) ('Eldorado' the 'Company' or 'we'), is pleased to report on the Company's financial and operational results for the third quarter ended September 30, 2010. The Company reported net income of $48.8 million, or $0.09 per share, and cash flow from operations of $96.0 million or $0.18 per share for the third quarter ended September 30, 2010.
'We maintain our guidance of 625,000 ounces of gold for 2010 at a cash operating cost of $375 per ounce, firmly positioning us in the lowest quartile of costs,' stated Paul N. Wright, President and Chief Executive Officer of Eldorado. 'We are pleased with our increase in reserves at Kisladag in Turkey and our exploration and development progress at Tocantinzinho ('TZ') in Brazil. We expect to report our exploration progress in China and Turkey in the middle of the fourth quarter.'
Q3 2010 Highlights and Updates
-- Produced 151,297 ounces of gold at an average cash operating cost of
$386 per ounce;
-- Sold 154,655 ounces of gold at a realized average price of $1,231 per
ounce;
-- Reported earnings of $0.09 per share;
-- Generated $96.0 million of cash or $0.18 per share from operating
activities before changes in non-cash working capital.
-- Reported a 14% increase in reserves at Kisladag from the 27,000 meters
drilled this year;
-- Completed the acquisition of Brazauro Resources and reported an initial
measured and indicated resource of 2.1 million ounces of gold at the TZ
project;
-- Completed the acquisition of the Xiaoshiren Central exploration license
located 20 kilometers southeast of White Mountain.
Financial Results
Eldorado's consolidated net income for the third quarter of 2010 was $48.8 million or $0.09 per share compared to $30.2 million or $0.08 in the third quarter of 2009. Net income for the nine-month period ended September 30, 2010 was $162.1 million or $0.30 per share, compared to $69.1 million or $0.18 per share in the comparable period from 2009.
During the third quarter, we sold 154,655 ounces of gold at an average price of $1,231 per ounce compared to 85,246 ounces of gold at an average price of $957 per ounce in the third quarter of 2009.
Corporate Activities
Completed the acquisition of Brazauro Resources
On July 20, 2010 we completed the acquisition Brazauro Resources where we acquired 100% interest in the TZ project in Tapajos, Brazil which we had operated in a joint venture since July 2008. TZ is a late stage exploration project with a current Measured and Indicated Resource of 2.1 million ounces of gold. In addition we acquired option agreements to earn into 100% of the Agua Branca and Piranhas properties also located in the Tapajos District immediately adjacent to the TZ project.
Operating Performance
Kisladag
During the quarter we produced 62,086 ounces of gold at a cash operating cost of $337 per ounce. We placed 2,767,179 tonnes of ore on the leach pad at an average grade of 0.98 grams per tonne of gold.
The mine continued to perform well during the quarter. Metallurgical test work on heap leach recoveries continues and we expect to be able to comment on the significance of the results at year end.
Jinfeng
During the quarter we produced 46,116 ounces of gold at cash operating cost of $425 per ounce and we milled 387,427 tonnes of ore at a grade of 4.42 grams per tonne. Production from the open pit was 311,191 tonnes of ore and underground production totalled 96,272 tonnes of ore.
Mining from the open pit concentrated on the upper benches as seasonal rainfall slowed operations in the bottom of the pit.
Tanjianshan
At Tanjianshan we produced 28,847 ounces of gold at cash operating cost of $391 per ounce. We milled a total of 283,598 tonnes of ore at an average grade of 3.84 grams per tonnes.
The plant continues to perform well. The roaster cyclones will be replaced during the fourth quarter along with an inspection of the two roasters during a planned major regional power shutdown. This is the first inspection since the plant was commissioned in 2009.
White Mountain
During the quarter we produced 14,248 ounces of gold at a cash operating cost of $477 per ounce and we processed 154,125 tonnes of ore at a grade of 4.01 grams per tonnes.
Higher than normal rainfall and related dewatering issues reduced underground production in the third quarter. Construction of a culvert to contain and divert a local river that flows over the top of the southern workings is underway.
Development
Efemcukuru
The installation of electrical and instrumentation hardware and cabling continues in the concentrator plant. Dry commissioning of some of the smaller equipment has begun. Structural steel erection at the filtration and backfill plants has been completed. The balance of the equipment is being installed prior to closure of the structures and commencement of services installation. Full commissioning of the concentrator is on schedule for the fourth quarter with the balance of the process to be commissioned in the first quarter 2011.
Preparations for both the rock dump and tailings dump have been completed. Approval for the construction of the final component of the mine water management system has been received. Site services and the construction of the ancillary buildings will be concluded in first quarter 2011.
Pre-production development of all three mine access ramps is now well underway. Spending in the quarter totalled $15.9 million.
Vila Nova Iron Ore
Trial mining and processing at the mine continue. The first shipments of ore have been made from site through to the Anglo Ferrous loading terminal, with first ore sales planned for November.
Eastern Dragon
Plans have been prepared for the start of winter construction upon receipt of the Project Permit which is currently before the Provincial authorities. This program will focus on closing in the concentrator buildings and installation of equipment foundations including ball mill foundations.
Perama Hill
The status of the Pre Environmental Impact Assessment review at the Ministry of Environment continues to be monitored.
Tocantinzinho
Field work for input into the Prefeasibility Report on TZ continues on schedule. Geotechnical drilling in the open pit has been completed as well as the installation of ground water monitoring devices for hydro geological analysis of the proposed pit. Condemnation and geotechnical auger drilling is being carried out for the plant site, rock and tailing impound areas. A survey of the area has been completed to assist in the final location of infrastructure and the location of the access road. Spending in the quarter was $1.3 million.
Exploration
Turkey
Kisladag
Eighteen diamond drill holes totalling 8,627 meters were drilled at Kisladag in the third quarter. These included seven geotechnical drill holes which constituted the remainder of the Phase 1 resource drilling program and some additional holes planned as a second phase of resource drilling. The 9,000 meter Phase 2 drilling program began in September and is designed to infill gaps mainly along the northern and western margins of the deposit and to further explore the newly-defined South-western Extension zone.
Efemcukuru
No new drilling was completed at Efemcukuru during the third quarter as drilling permits are still pending for the planned 2010 program. Work during the quarter focused on defining targets on the Kokarpinar and NW extension of the Kestane Beleni veins for future drilling.
Reconnaissance programs
Drilling programs were initiated during the quarter at Malatya-Hasancelebi and Sizma projects and will commence shortly at the Sayacik and AS projects. Results received to date on the drilling at both projects are encouraging. Reconnaissance sampling and soil surveys were completed on the early-stage Dolek, Catak and Atalan projects during the third quarter.
China
Jinfeng
Drilling programs continued during the quarter in the Jinfeng district, at the mine proper, at the Bannian prospect located approximately 20 kilometers southwest of Jinfeng mine and at the Lintan and Yaojiatan prospects located immediately north of the mine. At the Jinfeng mine, underground and surface drilling focused both on upgrading zones of inferred resources and testing new targets. Structural mapping completed in the open pit helped define controls on gold distribution leading to both a revision of the deposit structural model and the identification of new exploration targets in the surrounding area.
White Mountain
In the White Mountain district drilling is underway targeting the open down-dip and along strike extensions of the known ore body, and testing exploration targets in the Xiaoshiren exploration licenses. The acquisition of the Xiaoshiren Central exploration license located 20 kilometers south west of White Mountain was competed during the quarter. Soil sampling and trenching in the Xiaoshiren Central exploration areas containing high grade boulders is underway and diamond drilling has commenced. At Dongdapo mapping and soil sampling programs were completed with drilling scheduled for 2011.
Eastern Dragon
At Eastern Dragon we conducted ground magnetic surveys, float and outcrop sampling and prospecting within the EL 53 license area.
Tanjianshan
At 323 Zone nineteen drill holes totalling 4,157 meters were drilled testing the northern and southern limits to mineralization. Grade and continuity of gold mineralization drop to both the north and south of the previously defined high-grade zone, and the depth to mineralization continues to increase southward. The geological model has been updated to include the new drilling and a preliminary resource estimate is presently being prepared. At ZXS prospects area located between 323 Zone and the Jinloggou deposit we conducted shallow RC drilling, mapping and sampling.
Brazil
Tocantinzinho
Exploration activities resumed in the third quarter at TZ. Approximately 38.5 line kilometres of induced polarization surveying was completed over areas peripheral to the known deposit and several zones of anomalous chargeability/resistivity have been identified for drill-testing. The geological model for the TZ deposit was updated and wireframes were produced for key geological surfaces in preparation for an updated resource model and several areas requiring infill drill holes were identified.
Reconnaissance
Field work was completed at the optioned Triguiero project in NE Brazil. Results did not produce sufficient encouragement to continue the option. At the Agua Branca project three drill holes were completed testing previously defined targets. Although the litho logic and alteration characteristics of units intersected in these drill holes are similar to those associated with the TZ deposit, gold grades are sub economic.
United States
Nevada
Fieldwork at the Nevada projects focused on the Richmond Mountain option property where targets for drilling during fourth quarter have been identified. Due to continued permitting delays, the option on the Green Monster project was dropped and the drilling program planned for the Buffalo Canyon project was deferred until 2011.
Eldorado is a gold producing, exploration and development company actively growing businesses in Brazil, China, Greece, and Turkey and surrounding regions. We are one of the lowest cost pure gold producers. With our international expertise in mining, finance and project development, together with highly skilled and dedicated staff, we believe that Eldorado is well positioned to grow in value as we create and pursue new opportunities.
ON BEHALF OF ELDORADO GOLD CORPORATION
Paul N. Wright, President and Chief Executive Officer
Eldorado will host a conference call Friday October 29, 20010 to discuss the 2010 Third Quarter Financial and Operating Results at 1:00 p.m. ET (10:00 a.m. PT). You may participate in the conference call by dialling 416-695-6622 in Toronto or 1-800-355-4959 toll free in North America and asking for the Eldorado Conference Call with Chairperson: Paul Wright, President and CEO of Eldorado Gold. The call will be available on Eldorado's website www.eldoradogold.com. A replay of the call will be available until November 5, 2010 by dialling 416-695-5800 in Toronto or 1-800-408-3053 toll free in North America and entering the Pass code 2583817.
Cautionary Note Concerning Forward-Looking Statements
Certain of the statements made herein may contain 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, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as 'plans', 'expects', 'is expected', 'budget', '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 and forward-looking information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. We have made certain assumptions about the forward-looking statements and information and 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. Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: gold price volatility; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; mining operational and development risk; litigation risks; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment; currency fluctuations; speculative nature of gold exploration; global economic climate; dilution; share price volatility; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property, as well as those factors discussed in the sections entitled 'Forward-Looking Statements' and 'Risk Factors' in the Company's Annual Information Form & Form 40-F dated March 31, 2010.
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 Canada and the U.S.
Cautionary Note Regarding Mineral Reserves and Mineral Resources
The terms 'Mineral Reserve', 'Proven Mineral Reserve' and 'Probable Mineral Reserve' used in this release are Canadian mining terms as defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the 'CIM') Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council on August 20, 2000 as may be amended from time to time by the CIM. These definitions differ from the definitions in the United States Securities & Exchange Commission ('SEC') Guide 7. In the United States, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or produced at the time the mineral reserve determination is made.
The terms 'Mineral Resource', 'Measured Mineral Resource', 'Indicated Mineral Resource', 'Inferred Mineral Resource' used in this release are Canadian mining terms as defined in accordance with National Instruction 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the CIM Standards. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
For a detailed discussion of resource and reserve estimates and related matters see the Company's reports, including the Annual Information Form and Form 40-F dated March 31, 2010 and technical reports filed under the Company's name at www.sedar.com and www.sec.gov respectively.
Cautionary Note to US Investors Concerning Estimates of Measured, Indicated and Inferred Resources
Note to U.S. Investors. While the terms 'mineral resource', 'measured mineral resource,' 'indicated mineral resource', and 'inferred mineral resource' are recognized and required by Canadian regulations, they are not defined terms under standards in the United States and normally are not permitted to be used in reports and registration statements filed with the SEC. As such, information contained in this report concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by U.S companies in SEC filings. With respect to 'indicated mineral resource' and 'inferred mineral resource' there is a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It can not be assumed that all or any part of an 'indicated mineral resource' or 'inferred mineral resource' will ever be upgraded to a higher category. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.
Eldorado Gold Corporation's common shares trade on the Toronto Stock Exchange (TSX: ELD) and the NYSE (NYSE: EGO). Eldorado's CDI trade on the Australian Securities Exchange (ASX: EAU).
Request for information packages: laurelw@eldoradogold.com
PRODUCTION HIGHLIGHTS
---------------------------------------------------------------------------
First First
First Second Third Third Nine Nine
Quarter Quarter Quarter Quarter Months Months
2010 2010 2010 2009 2010 2009
---------------------------------------------------------------------------
Gold Production
---------------
Ounces Sold 163,446 172,826 154,655 85,246 490,927 229,158
Ounces Produced 164,928 167,940 151,297 88,918 484,165 234,916
Cash Operating
Cost ($/oz)
(1,3,4) 370 357 386 296 371 297
Total Cash Cost
($/oz)(2,3,4) 397 410 431 325 412 321
Realized Price
($/oz - sold) 1,110 1,195 1,231 957 1,178 934
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Kisladag Mine, Turkey
---------------------
Ounces Sold 83,974 69,197 66,113 55,902 219,284 166,598
Ounces Produced 82,240 70,451 62,086 57,902 214,777 167,079
Tonnes to Pad 2,898,199 2,686,284 2,767,179 2,523,546 8,351,662 7,036,871
Grade (grams/
tonne) 1.12 1.12 0.98 1.22 1.08 1.24
Cash Operating
Cost ($/oz)(3,4) 304 304 337 275 314 273
Total Cash Cost
($/oz)(2,3,4) 307 345 359 277 335 275
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Tanjianshan Mine, China
-----------------------
Ounces Sold 18,947 38,261 28,847 29,344 86,055 62,560
Ounces Produced 25,423 28,884 28,847 31,016 83,154 67,837
Tonnes Milled 249,738 271,749 283,598 257,730 805,085 717,670
Grade (grams/
tonne) 4.01 4.38 3.84 5.73 4.07 5.14
Cash Operating
Cost ($/oz)(3,4) 420 387 391 336 396 361
Total Cash Cost
($/oz)(2,3,4) 517 483 493 417 494 444
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Jinfeng Mine, China
-------------------
Ounces Sold 49,674 48,623 45,447 - 143,744 -
Ounces Produced 45,615 52,659 46,116 - 144,390 -
Tonnes Milled 389,851 392,211 387,427 - 1,169,489 -
Grade (grams/
tonne) 4.23 4.51 4.42 - 4.39 -
Cash Operating
Cost ($/oz)(3,4) 422 381 425 - 409 -
Total Cash Cost
($/oz)(2,3,4) 462 423 473 - 452 -
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White Mountain Mine, China
--------------------------
Ounces Sold 10,851 16,745 14,248 - 41,844 -
Ounces Produced 11,650 15,946 14,248 - 41,844 -
Tonnes Milled 130,643 167,981 154,125 - 452,749 -
Grade (grams/
tonne) 4.09 3.78 4.01 - 3.95 -
Cash Operating
Cost ($/oz)(3,4) 550 442 477 - 482 -
Total Cash Cost
($/oz)(2,3,4) 589 474 507 - 515 -
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1. Cost figures calculated in accordance with the Gold Institute Standard.
2. Cash Operating Costs, plus royalties and the cost of off-site
administration.
3. Cash operating costs and total cash costs are non-GAAP measures.
See the section 'Non-GAAP Measures' of this Review.
4. Cash operating costs and total cash costs have been recalculated
for prior quarters based on ounces sold.
Eldorado Gold Corporation
Unaudited Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars)
Sepember 30, December 31,
2010 2009
Assets $ $
Current assets
Cash and cash equivalents 339,403 265,369
Restricted cash (note 4) 52,221 50,000
Marketable securities 1,564 13,951
Accounts receivable and other 35,490 26,434
Inventories 130,257 129,197
Future income taxes 2,703 -
--------------------------
561,638 484,951
Inventories 40,280 31,534
Investment in significantly influenced company 5,130 -
Restricted assets and other 28,211 13,872
Mining interests 2,794,125 2,580,816
Goodwill 323,294 324,935
--------------------------
3,752,678 3,436,108
--------------------------
--------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 139,453 157,250
Debt - current (note 6) 89,909 56,499
Future income taxes 2,313 4,264
--------------------------
231,675 218,013
Debt - long-term (note 6) 97,247 134,533
Asset retirement obligations 28,273 26,566
Future income taxes 442,131 390,242
--------------------------
799,326 769,354
--------------------------
Non-controlling interest 36,808 26,144
Shareholders' equity
Share capital (note 7(b)) 2,810,109 2,671,634
Contributed surplus 21,317 17,865
Accumulated other comprehensive income (note 7(c)) 465 2,227
Retained earnings (deficit) 84,653 (51,116)
--------------------------
2,916,544 2,640,610
--------------------------
3,752,678 3,436,108
--------------------------
--------------------------
Approved on behalf of the Board of Directors
(Signed) Robert R. Gilmore, Director (Signed) Paul N. Wright, Director
See accompanying notes to the consolidated financial statements.
Eldorado Gold Corporation
Unaudited Consolidated Statements of Operations
For the periods ended September 30,
(Expressed in thousands of U.S. dollars except per share amounts)
Three months ended Nine months ended
-------------------- --------------------
2010 2009 2010 2009
$ $ $ $
Revenue
Gold sales 190,305 81,608 578,227 213,961
Expenses
Operating costs 69,095 28,109 208,271 75,053
Depletion, depreciation and
amortization 27,232 9,017 79,978 20,015
General and administrative 10,771 7,442 39,803 24,101
Exploration 5,021 3,182 11,573 8,618
Mine standby costs 22 881 1,335 1,817
Asset retirement obligation costs 511 65 1,535 196
Foreign exchange loss (gain) 13,360 (442) 8,327 (1,569)
-------------------- --------------------
126,012 48,254 350,822 128,231
(Gain) loss on disposal of assets (250) 119 (1,735) (1,344)
Gain on marketable securities (4,489) (1,168) (5,347) (1,287)
Interest expense and financing
costs 1,992 77 6,261 235
Interest and other income (8,970) (996) (10,654) (1,583)
-------------------- --------------------
114,295 46,286 339,347 124,252
-------------------- --------------------
Income before income taxes and
non-controlling interest 76,010 35,322 238,880 89,709
-------------------- --------------------
Income tax (expense) recovery
Current (21,652) (13,812) (69,591) (27,465)
Future (459) 8,873 4,788 8,115
-------------------- --------------------
(22,111) (4,939) (64,803) (19,350)
-------------------- --------------------
Non-controlling interest (5,126) (229) (11,951) (1,244)
-------------------- --------------------
Net income for the period 48,773 30,154 162,126 69,115
-------------------- --------------------
Weighted average number of shares
outstanding
Basic 546,039 391,583 541,164 377,601
Diluted 547,731 392,328 543,041 378,821
Earnings per share
Basic income per share - US$ 0.09 0.08 0.30 0.18
Diluted income per share - US$ 0.09 0.08 0.30 0.18
See accompanying notes to the consolidated financial statements.
Eldorado Gold Corporation
Unaudited Consolidated Statements of Cash Flows
For the periods ended September 30,
(Expressed in thousands of U.S. dollars, unless otherwise stated)
Three months ended Nine months ended
-------------------- -------------------
2010 2009 2010 2009
$ $ $ $
Cash flows generated from (used in):
Operating activities
Net income for the period 48,773 30,154 162,126 69,115
Items not affecting cash
Asset retirement obligations
costs 511 65 1,535 196
Depletion, depreciation and
amortization 27,232 9,017 79,978 20,015
Unrealized foreign exchange loss 14,702 2,050 9,661 1,624
Future income taxes expense
(recovery) 459 (8,873) (4,788) (8,115)
(Gain) loss on disposal of assets (250) 119 (1,735) (1,344)
(Gain) loss on marketable
securities (4,489) (1,168) (5,347) (1,287)
Stock-based compensation (note
8(b)) 3,282 1,867 13,874 7,668
Pension expense (note 5) 622 442 1,867 1,245
Non-controlling interest 5,126 229 11,951 1,244
-------------------- -------------------
95,968 33,902 269,122 90,361
Bonus cash award units payments
(note 8(c)) - - - (2,543)
Changes in non-cash working capital
(note 9) (14,433) (6,317) (46,700) 2,341
-------------------- -------------------
81,535 27,585 222,422 90,159
Investing activities
Acquisition of Brazauro, net
(note 3(a)) (5,565) - (5,565) -
Mining interests
Capital expenditures (54,844) (24,151) (152,476) (63,003)
Proceeds on sales and disposals 2,843 - 23,191 35
Marketable securities disposals
Purchases (5,698) (646) (5,698) (646)
Proceeds on sales and disposals 13,144 5,766 13,836 42,154
Equity investment purchase - - (5,375) -
Pension plan contributions - - - (1,856)
Restricted cash - - (2,221) -
Restricted assets and other (9,880) 4,893 (12,363) 1,888
-------------------- -------------------
(60,000) (14,138) (146,671) (21,428)
Financing activities
Capital stock
Issuance of common shares for
cash (note 7(b)) 5,087 5,366 32,370 18,969
Dividend paid to non-controlling
interest - - (1,286) -
Dividend paid to shareholders - - (26,357) -
Long-term and current debt
Proceeds 9,501 - 59,044 4,982
Repayments (3,703) (4,982) (65,488) (4,982)
-------------------- -------------------
10,885 384 (1,717) 18,969
-------------------- -------------------
Net increase in cash and cash
equivalents 32,420 13,831 74,034 87,700
Cash and cash equivalents -
beginning of period 306,983 135,720 265,369 61,851
-------------------- -------------------
Cash and cash equivalents -
end of period 339,403 149,551 339,403 149,551
-------------------- -------------------
-------------------- -------------------
See accompanying notes to the consolidated financial statements.
Eldorado Gold Corporation
Unaudited Consolidated Statements of Shareholders' Equity
For the periods ended September 30,
(Expressed in thousands of U.S. dollars, unless otherwise stated)
Three months ended Nine months ended
-------------------- --------------------
2010 2009 2010 2009
$ $ $ $
Share capital
Balance beginning of period 2,708,322 951,255 2,671,634 931,933
Shares issued upon exercise of
share options, for cash 5,087 5,366 32,370 18,969
Estimated fair value of share
options exercised 1,582 2,037 10,987 7,756
Share issued in consideration for
interests acquired 95,118 263,293 95,118 263,293
-------------------- --------------------
Balance at the end of the period 2,810,109 1,221,951 2,810,109 1,221,951
-------------------- --------------------
Contributed surplus
Balance beginning of period 19,052 18,901 17,865 19,378
Non-cash stock-based compensation 3,282 1,867 13,874 7,109
Non-cash stock-based compensation
on Brazauro warrants & options
converted 565 - 565 - Options exercised, credited to
share capital (1,582) (2,037) (10,987) (7,756)
-------------------- --------------------
Balance at the end of the period 21,317 18,731 21,317 18,731
-------------------- --------------------
Retained earnings (deficit)
Balance beginning of period 35,880 (114,559) (51,116) (153,520)
Dividends paid - - (26,357) -
Net income for the period 48,773 30,154 162,126 69,115
-------------------- --------------------
Balance at the end of the period 84,653 (84,405) 84,653 (84,405)
-------------------- --------------------
Accumulated other comprehensive
income (loss)
Balance beginning of period 12,391 519 2,227 (5,971)
Other comprehensive (loss) income (11,926) 73,582 (1,762) 80,072
-------------------- --------------------
Balance at the end of the period 465 74,101 465 74,101
-------------------- --------------------
Total shareholders' equity 2,916,544 1,230,378 2,916,544 1,230,378
-------------------- --------------------
-------------------- --------------------
See accompanying notes to the consolidated financial statements.
Eldorado Gold Corporation
Unaudited Consolidated Statements of Comprehensive Income
For the periods ended September 30,
(Expressed in thousands of U.S. dollars, unless otherwise stated)
Three months ended Nine months ended
-------------------- --------------------
2010 2009 2010 2009
$ $ $ $
Net earnings for the period ended
September 30, 48,773 30,154 162,126 69,115
Other comprehensive income
Unrealized gains on
available-for-sale investments 1,134 83,049 12,788 88,608
Future income taxes on changes in
available-for-sale investments 1,475 (9,984) (15) (10,253)
Reversal of unrealized gains on
available-for-sale investment on
acquisition of subsidiary
(note 3(a)) (11,424) - (11,424) -
Realized (gains) losses on
available-for-sale investments
transferred to net income (3,111) 517 (3,111) 1,717
-------------------- --------------------
Other comprehensive (loss) income (11,926) 73,582 (1,762) 80,072
-------------------- --------------------
Comprehensive income for the
period ended September 30, 36,847 103,736 160,364 149,187
-------------------- --------------------
-------------------- --------------------
See accompanying notes to the consolidated financial statements.
Click here for Unaudited Interim Consolidated Financial Statements, Management's Discussion and Analysis PDF: http://media3.marketwire.com/docs/ELDQ32010.pdf
Contacts:
Eldorado Gold Corporation
Nancy Woo
VP Investor Relations
604.601-6650 or 1.888.353.8166
604.687.4026 (FAX)
nancyw@eldoradogold.com
www.eldoradogold.com