Eldorado Gold Corporation: 2011 Second Quarter Financial and Operating Results
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/28/11 -- Earnings per share $0.14; Cash Flow from operating activities per share $0.21 (all figures in United States dollars unless otherwise noted).
Paul N. Wright, President and Chief Executive Officer of Eldorado Gold Corporation, ('Eldorado' the 'Company' or 'we') (TSX: ELD)(NYSE: EGO)(ASX: EAU) is pleased to report on the Company's financial and operational results for the second quarter ended June 30, 2011. Eldorado reported net income attributable to shareholders of the Company of $74.9 million for the period; generated $115.7 million in cash from operating activities before changes in non-cash working capital and paid down $31.8 million against outstanding debt acquired with the 2009 Sino Gold Mining Ltd. acquisition.
'During the second quarter, the Company achieved record earnings from its gold mining operations on sales of 162,164 ounces of gold at an average realized gold price of $1,510 and average cash operating costs of $397 per ounce. During the quarter we also commenced the start-up of Efemcukuru and received key permits in Turkey related to expanding Kisladag and constructing processing facilities for Efemcukuru concentrate treatment at Kisladag,' said Paul Wright, President and CEO of Eldorado Gold.
Q2 2011 Highlights
-- Declared a dividend of C$0.06 to shareholders of record on August 12,
2011
-- Produced 162,429 ounces of gold at an average cash operating cost of
$397 per ounce (total cash cost $477 per ounce)
-- Sold 162,164 ounces of gold at an average realized price of $1,510 per
ounce
-- Reported earnings of $0.14 per share
-- Generated $115.7 million ($0.21 per share) in cash from operating
activities before changes in non-cash working capital and paid $31.8
million against outstanding debt
-- Commenced the start-up of Efemcukuru and received key permits in Turkey
related to expanding Kisladag and constructing processing facilities for
Efemcukuru concentrate at Kisladag
-- Announced the results of a positive NI 43-101 compliant Technical Report
for the Tocantinzinho Gold Project located in Para State of central
Brazil
Outlook
The 2011 operating guidance has been revised to 700,000 - 725,000 ounces of gold at an average cash operating costs of $390 - $410 per ounce due largely to the delay in completion of construction of the processing facilities at Kisladag for Efemcukuru concentrate.
Financial Results
Eldorado's consolidated net income attributable to the shareholders of the Company for the second quarter of 2011 was $74.9 million or $0.14 per share compared to $55.7 million or $0.10 per share in the second quarter of 2010. The increase in profit for the period compared to the second quarter of 2010 was mainly the result of record earnings from the Company's gold mining operations as a result of significantly higher gold prices. Production was slightly down from the second quarter of 2010 (162,429 ounces in 2011 versus 167,940 ounces in 2010).
During the quarter, 162,164 ounces of gold were sold at an average price of $1,510 per ounce compared to 172,826 ounces of gold at an average realized price of $1,195 per ounce in the second quarter of 2010, resulting in a company record $137.5 million in earnings from gold mining operations after deducting production costs and depreciation, depletion and amortization expense (Q2 2010 - $104.9 million).
In addition, 43,418 dry metric tonnes of iron ore were sold by Vila Nova at an average price of $149 per dry metric tonne, resulting in gross profit of $3.2 million for the second quarter.
Operating Performance
Kisladag
Kisladag placed 3.2 million tonnes of ore on the leach pad during the second quarter at a grade of 0.92 grams per tonne. Tonnes were significantly higher than previous quarters, reflecting the successful commissioning of the Phase III crusher expansion to 12.5 million tonnes per year, while grade was lower than previous quarters. Kisladag produced 66,688 ounces of gold at a cash operating cost of $389 per ounce in Q2 2011 as compared to 70,451 ounces at a cash operating cost of $304 per ounce in Q2 2010. The increase in cash operating cost was mainly due to higher electricity and reagent costs.
On June 13, 2011, the Company announced the approval of the Kisladag supplementary Environmental Impact Assessment (EIA). This EIA allows for an increase in annual ore production levels to 12.5 million tonnes per annum, and also permits the construction of the Efemcukuru concentrate treatment plant at Kisladag. This treatment plant, which we expect to have completed by the end of the year, will treat the flotation concentrate from Efemcukuru.
Tanjianshan ('TJS')
TJS processed 264,698 tonnes of ore at a grade of 4.23 grams per tonne in Q2 2011 compared to 271,749 tonnes at a grade of 4.38 in Q2 2010. The mine produced 31,977 ounces of gold at a cash operating cost of $343 per ounce in Q2 2011 as compared to 28,884 ounces at a cash operating cost of $387 per ounce in Q2 2010. Additional roaster feed provided by Qinglongtan concentrate increased gold production by 10%. Cash operating costs were lower than the second quarter of 2010 due to a lower strip ratio and lower inventory carrying cost of the Qinglongtan concentrate additional roaster feed. Total cash operating costs increased by $4.5 million due to a recently promulgated Ecological Compensation Fee, of which $2.9 million related to the period November 2010 to March 2011.
Jinfeng
Jinfeng processed 397,987 tonnes of ore at a grade of 4.05 grams per tonne in Q2 2011 compared to 392,211 tonnes at a grade of 4.51 grams per tonne in Q2 2010. The mine produced 46,350 ounces of gold at a cash operating cost of $401 per ounce in Q2 2011 compared to 52,659 ounces at a cash operating cost of $381 in Q2 2010. Strip ratio fell at Jinfeng to 0.69:1 this quarter as a result of the completion of mining at the bottom of the open pit during the quarter. Land is currently being acquired to allow mining the next phase cutback of the open pit. Waste stripping of this phase is presently scheduled to commence in September.
White Mountain
White Mountain processed 192,558 tonnes of ore at a grade of 3.71 grams of gold per tonne in Q2 2011 compared to 167,981 tonnes at a grade of 3.78 grams per tonne in Q2 2010. The mine produced 17,414 ounces of gold at a cash operating cost of $518 per ounce in Q2 2011 compared to 15,946 ounces at $442 per ounce in Q2 2010. Cash operating costs at White Mountain increased in Q2 2011 due to higher underground mining contractor rates and lower gold grade compared to Q2 2010.
Vila Nova
During Q2 2011Vila Nova mined 174,672 wet metric tonnes, treated 153,013 wet metric tonnes and sold 43,418 dry metric tonnes of iron ore. Heavy rains affected mining operations and product transportation during the quarter. Operating costs averaged $64 per dry metric tonne. At quarter end 205,854 wet metric tonnes of processed ore were in inventory, of which 102,569 wet metric tonnes were at Santana port ready for shipment.
Development
Kisladag
The majority of work required to complete the construction of the Phase III expansion was completed during the second quarter. The fine ore processing section of the expansion, which includes two new crushers and screens, is now operating at or above design capacity. Assembly and commissioning of the higher capacity overland and stacking conveyor systems will be completed in the third quarter of this year.
Work continues on the Phase IV Expansion study with the initial focus on mine fleet selection and process flowsheet development. Capital and operating cost scenarios are being developed to establish the most attractive scenario in terms of economic performance over the life of the mine.
Efemcukuru
The filtration plant was commissioned during the second quarter along with the concentrator, and produced dewatered tailings for disposal on the tailings dump. The backfill plant piping and underground reticulations systems for the tailings backfill remain to be completed and commissioned in third quarter of this year. Underground development continued on schedule with the contractor having reached 97% of the contracted development meters by quarter end. A scope change was issued to carry out additional development associated with an exploration drive to the North Ore Shoot as well as other ancillary excavations. Owner crews were engaged in ore development as well as rescheduled waste development to reach additional stoping zones.
Construction activity began on the Efemcukuru Concentrate Treatment plant at the Kisladag mine site in mid-June. This followed the receipt of a supplementary EIA which covered the installation of the plant and associated infrastructure and other production changes to the Kisladag operation. Preparations for the installation of this facility were well advanced in anticipation of the final approvals. Rough grading and earthworks were started immediately. Completion of all facilities for treatment of the Efemcukuru concentrate is scheduled for the end of the fourth quarter of this year.
Eastern Dragon
Construction activity at Eastern Dragon continued throughout the quarter. The mill and process buildings have now been totally enclosed allowing civil and mechanical installations to continue under cover. All mechanical equipment for the process plant has been ordered and either delivered to site or held by vendors for scheduled delivery. Efforts for the third quarter will be focused on mechanical and electrical installations in the plant, electrical infrastructure and civil works on the crushing plant.
Perama Hill
Recent changes within the Greek government have resulted in an increased focus on supporting much needed capital development projects. To facilitate timely permitting of development projects the government has now initiated a fast track approach designed to expedite the approval process for those projects deemed to be 'Strategic Investments.' The Perama Hill project has been qualified for this process and expects a positive decision in August from the Interministerial Committee for Strategic Investments. Pending this positive decision the Company anticipates being in receipt of all permits and licenses enabling a construction decision in Q1 2012.
Tocantinzinho ('TZ')
Golder Associates (Brazil) completed the preparation of a positive Prefeasibility Report for the Tocantinzinho project which has been compiled into an NI 43-101 compliant Technical Report(i). The project has been configured as a 4.4 million tonne per year open pit operation using flotation and concentrate leaching for gold recovery. Initial investment capital for the project is estimated at approximately $383.5 million including extensive infrastructure to service the remote site. During the operating life of 11 years the project is projected to produce an average of 159,000 ounces per year at a cash cost of $559 per ounce. Based on the positive results of the technical study, the project will be advanced to feasibility level. Field work to support this study will be initiated in the third quarter of this year with completion of the study scheduled for the second quarter of 2012. Preparation of the EIA for Tocantinzinho was also advanced during the quarter with submission now scheduled for the third quarter of this year.
(i) JORC Competent Person Statement
Exploration
Turkey
Exploration during the quarter in Turkey focused on drilling at our Kisladag and Efemcukuru mine sites, and at two of our exploration projects (Malatya-Hasancelebi and Konya-Sizma).
Seven diamond drillholes were completed at the Kisladag mine site during the second quarter, testing both conceptual exploration targets and areas being considered for infrastructure expansion. Assay results have been received from the first six drillholes in the program, and have no significant intersections.
At Efemcukuru, drilling commenced at the Northwest Extension to the Kestane Beleni vein, with twelve holes completed. All of these holes focused on relatively shallow portions of the Kestane Beleni vein, testing a 700 strike length at roughly 100m intervals. Assay results were received from the first five drillholes, all of which included notable gold intercepts.
At the Malatya-Hasancelebi iron oxide copper-gold (IOCG) prospect the final five drillholes of Phase I exploration drilling program were completed during the quarter. All were located in the Karasivri hill anomaly area, testing a silicified and carbonate altered ophiolitic sequence in the upper plate of a thrust fault. Preliminary results show only slightly elevated gold values.
Five drillholes completed during the quarter at the Konya-Sizma prospect intersected strongly-foliated, interbedded metamorphosed siltstone, sandstone, shale, and limestone. The rocks are weakly to moderately altered with sericite, silica, and fine quartz stockwork veinlets. Mineralization consists of pyrite and arsenopyrite, generally occurring as lenses along foliation. Assay results from the first three drillholes include encouraging gold values over widths of tens of metres.
China
Exploration drilling in China during the quarter included programs in the Guizhou, Jilin, and Qinghai regions.
In the Guizhou region, exploration drilling was conducted on the Jindu joint venture (Qiaojiang license) and within the Jinfeng mining license. At Qiaojiang, drilling is targeting fault zones downdip from trench exposures that have produced strongly anomalous gold values, locally coinciding with IP chargeability anomalies. The best intercept to date is a 9.6 meter wide breccia zone with silica and carbonate alteration, associated with realgar, orpiment, cinnabar, and pyrite (Drillhole JDQJ-04). Assays are pending. In the Jinfeng Mine area, most of the exploration drilling during the quarter was from surface drills in the Rongban area. Work continued on the revised structural/lithologic model for the Jinfeng deposit, with drillcore relogging, updating of the pit geology map, and section interpretation. This work has resulted in the definition of several previously untested near-mine targets along the mineralized F2 and F3 faults.
In the Jilin region, exploration drilling programs commenced during the quarter at both the White Mountain Mine site and at the Xiaoshiren prospect. Two surface drillholes were completed at the White Mountain deposit, testing step-outs from the deep mineralized intersections obtained in the 2010 program. These new holes intersected silicified zones along the target horizon at near the projected depth, with variable breccia development. At Xiaoshiren, four drillholes were completed, targeting both structurally-controlled breccia zones and intrusive contact-related zones. All of the drillholes have intersected zones of alteration and pyrite +/- hematite mineralization, but no assay results have been received to date.
In Qinghai, diamond drilling commenced at Tanjianshan on both the Qinlongtan deeps target and the 323 deposit infill program, with one hole completed at each area. In addition, the pediment covered area between the 323 deposit and the Jinlonggou mine was explored through both shallow, grid-based reverse circulation drilling, and a detailed ground magnetic survey. Mapping and sampling were completed at the Palonggou prospect, located along the north side of the Jinlonggou mine.
Brazil
Drilling at the Tocantinzinho project this quarter included 13 diamond drillholes, mainly consisting of systematic stepout holes along the Tocantinzinho trend southeast of the main deposit area. The strongest mineralization encountered was a zone of intercalated 'salami' granite, andesite, and aplite containing a stockwork to sheeted quartz + pyrite veinlets with visible gold, identified in a hole located approximately two kilometres southeast of the deposit. Soil sampling programs completed during the quarter increased the area of coverage peripheral to the Tocantinzinho trend. In addition, grid-based auger drilling was completed within broad soil anomalies to more closely define targets for diamond drilling.
At the optioned Agua Branca project, diamond drilling commenced late in the quarter on the Serra da Abelha target, and 25 auger holes were completed in two separate target areas.
Eldorado is a gold producing, exploration and development company actively growing businesses in Turkey, China, Greece, Brazil. With our international expertise in mining, finance and project development, together with highly skilled and dedicated staff, we believe that our company 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 on Friday, July 29, 2011 to discuss the 2011 Second Quarter Financial and Operating Results at 11:30 a.m. EDT (8:30 a.m. PDT). You may participate in the conference call by dialling 416-340-8527 in Toronto or 1-877-440-9795 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 August 5, 2011 by dialling 905-694-9447 in Toronto or 1-800-408-3053 toll free in North America and entering the Pass code: 1412061.
The information in this news release that relates to TZ Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Stephen Juras, Ph.D., P. Geo., and Sean Gregersen, P.Eng., who are members of the Association of Professional Engineers and Geoscientists of BC. Stephen Juras and Sean Gregersen are full-time employees of Eldorado Gold Corporation.
Stephen Juras and Sean Gregersen have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.
Stephen Juras and Sean Gregersen are the Qualified Person as defined in the National Instrument 43-101 (Standards of Disclosure for Mineral Projects) of the Canadian Security Regulators, responsible for preparing or supervising the preparation of the scientific or technical information contained in this document and verifying the technical data disclosed in the document relating to the TZ project.
Stephen Juras and Sean Gregersen consent to the inclusion in the news release of the matters based on his information in the form and context in which it appears.
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 or information herein include, but are not limited, to the Company's Q2, 2011 Financial and Operating Results.
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, 2011
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.
Eldorado Gold Corporation's common shares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO). Our Chess Depositary Interests trade on the Australian Securities Exchange (ASX: EAU).
Request for information packages: reception@eldoradogold.com.
PRODUCTION HIGHLIGHTS
----------------------------------------------------------------------------
First First
First Second Second Six Six
Quarter Quarter Quarter Months Months
2011 2011 2010 2011 2010
----------------------------------------------------------------------------
Gold Production
--------------------------
Ounces Sold 148,530 162,164 172,826 310,694 336,272
Ounces Produced 148,577 162,429 167,940 311,006 332,868
Cash Operating Cost
($/oz)1,3, 4 410 397 357 403 364
Total Cash Cost
($/oz)2,3, 4 462 477 410 470 404
Realized Price ($/oz -
sold) 1,397 1,510 1,195 1,456 1,154
----------------------------------------------------------------------------
Kisladag Mine, Turkey
--------------------------
Ounces Sold 50,832 66,392 69,197 117,224 153,171
Ounces Produced 50,833 66,688 70,451 117,521 152,691
Tonnes to Pad 2,341,6353,194,051 2,686,2845,535,686 5,584,483
Grade (grams / tonne) 1.04 0.92 1.12 0.97 1.12
Cash Operating Cost
($/oz)3, 4 386 389 304 387 304
Total Cash Cost
($/oz)2,3, 4 408 411 345 410 324
----------------------------------------------------------------------------
Tanjianshan Mine, China
--------------------------
Ounces Sold 28,493 31,977 38,261 60,470 57,208
Ounces Produced 28,493 31,977 28,884 60,470 54,307
Tonnes Milled 238,070 264,698 271,749 502,768 521,487
Grade (grams / tonne) 3.90 4.23 4.38 4.06 4.20
Cash Operating Cost
($/oz)3, 4 402 343 387 371 398
Total Cash Cost
($/oz)2,3, 4 515 596 483 557 494
----------------------------------------------------------------------------
Jinfeng Mine, China
--------------------------
Ounces Sold 48,518 46,381 48,623 94,899 98,297
Ounces Produced 48,564 46,350 52,659 94,914 98,274
Tonnes Milled 384,400 397,987 392,211 782,387 782,062
Grade (grams / tonne) 4.32 4.05 4.51 4.19 4.37
Cash Operating Cost
($/oz)3, 4 430 401 381 416 402
Total Cash Cost
($/oz)2,3, 4 482 457 423 470 443
----------------------------------------------------------------------------
White Mountain Mine, China
--------------------------
Ounces Sold 20,687 17,414 16,745 38,101 27,596
Ounces Produced 20,687 17,414 15,946 38,101 27,596
Tonnes Milled 140,211 192,558 167,981 332,769 298,624
Grade (grams / tonne) 5.71 3.71 3.78 4.55 3.91
Cash Operating Cost
($/oz)3, 4 438 518 442 475 484
Total Cash Cost
($/oz)2,3, 4 475 564 474 516 519
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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 Condensed Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars)
June 30, December 31,
Note 2011 2010
ASSETS
Current assets
Cash and cash equivalents 305,638 314,344
Restricted cash 6 55,400 52,425
Marketable securities 1,562 8,027
Accounts receivable and other 37,341 42,437
Inventories 159,932 147,263
---------------------------
559,873 564,496
Long-term inventories 26,693 29,627
Investment in significantly influenced
company 5 5,726 6,202
Deferred income tax assets 7,412 -
Restricted assets and other 24,404 19,328
Property, plant and equipment 2,775,443 2,699,787
Goodwill 365,928 365,928
---------------------------
3,765,479 3,685,368
---------------------------
LIABILITIES & EQUITY
Current liabilities
Accounts payable and accrued
liabilities 146,809 145,695
Current debt 7 90,636 98,523
---------------------------
237,445 244,218
Debt 7 39,038 68,140
Asset retirement obligations 34,030 33,228
Pension fund obligation 12,640 12,019
Deferred tax liabilities 328,102 330,512
---------------------------
651,255 688,117
---------------------------
Equity
Share capital 10 2,825,024 2,814,679
Treasury stock 11(b) (4,432) -
Contributed surplus 30,828 22,967
Accumulated other comprehensive income (3,055) (1,637)
Retained earnings (deficit) 224,818 125,221
---------------------------
Total equity attributable to
shareholders of the Company 3,073,183 2,961,230
Attributable to non-controlling
interests 41,041 36,021
---------------------------
3,114,224 2,997,251
---------------------------
3,765,479 3,685,368
---------------------------
7(b)
Subsequent events (e), 14
Approved on behalf of the Board of Directors
Robert Gilmore, Director
(Paul N. Wright, Director
See accompanying notes to unaudited condensed consolidated financial statements.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Income Statements
(Expressed in thousands of U.S. dollars, except per share amounts)
Three months ended Six months ended
June 30, June 30,
----------------------------------------
Note 2011 2010 2011 2010
Revenue
Metal sales 251,410 206,443 469,483 387,922
Cost of sales
Production costs 81,431 71,440 155,742 136,030
Depreciation and
amortization 29,843 29,596 61,060 52,929
----------------------------------------
Total cost of sales 111,274 101,036 216,802 188,959
Gross profit 140,136 105,407 252,681 198,963
Exploration expenses 4,605 2,803 8,446 6,136
Mine standby costs - 607 - 1,313
General and administrative
expenses 13,574 10,474 34,608 20,893
Employee benefit expenses 8 433 526 856 737
Share based payments 4,452 3,646 11,804 10,592
Asset retirement obligation
costs 407 511 773 1,024
Foreign exchange loss (gain) 1,381 1,523 2,028 (37)
----------------------------------------
Operating profit 115,284 85,317 194,166 158,305
(Gain) loss on disposal of
assets (3,092) 21 (3,092) (1,485)
(Gain) loss on marketable
securities (654) 254 (1,289) (858)
Other (income) expenses (1,066) (1,338) (2,463) (2,009)
Interest and financing costs 1,525 1,656 3,114 4,269
----------------------------------------
Profit before income tax 118,571 84,724 197,896 158,388
Income tax expense 36,818 24,999 57,443 45,355
----------------------------------------
Profit for the period 81,753 59,725 140,453 113,033
----------------------------------------
Attributable to:
Shareholders of the Company 74,865 55,706 127,338 106,208
Non-controlling interests 6,888 4,019 13,115 6,825
----------------------------------------
Profit for the period 81,753 59,725 140,453 113,033
----------------------------------------
Weighted average number of
shares outstanding
Basic 548,976 539,398 548,654 538,707
Diluted 551,696 541,193 551,469 540,439
Earnings per share
attributable to shareholders
of the Company:
Basic earnings per share 0.14 0.10 0.23 0.20
Diluted earnings per share 0.14 0.10 0.23 0.20
See accompanying notes to the unaudited condensed consolidated financial statements.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Statements of Comprehensive Income
(Expressed in thousands of U.S. dollars)
Three months ended Six months ended
June 30, June 30,
----------------------------------------
2011 2010 2011 2010
Profit for the period 81,753 59,725 140,453 113,033
Other comprehensive income (loss):
Change in fair value of available-
for-sale financial assets (net of
income taxes of ($12) and $1,384;
and ($12) and $1,490) (570) 8,705 (984) 10,164
Realized gains on disposal of
available-for-sale financial
assets transferred to net income (272) - (434) -
----------------------------------------
Total other comprehensive (loss)
income for the period (842) 8,705 (1,418) 10,164
----------------------------------------
Total comprehensive income for the
period 80,911 68,430 139,035 123,197
----------------------------------------
Attributable to:
Shareholders of the Company 74,023 64,411 125,920 116,372
Non-controlling interests 6,888 4,019 13,115 6,825
----------------------------------------
Total comprehensive income for the
period 80,911 68,430 139,035 123,197
----------------------------------------
See accompanying notes to the unaudited condensed consolidated financial statements.
(Expressed in thousands of U.S. dollars)
For the period ended June 30 Note 2011 2010
Cash flows generated from (used in):
Operating activities
Profit for the period 140,453 113,033
Items not affecting cash
Provisions for asset retirement obligations 773 1,024
Depreciation and amortization 61,060 52,929
Unrealized foreign exchange loss 4,761 (5,041)
Deferred tax recovery (9,705) (2,584)
Gain on disposal of assets (3,092) (1,485)
Loss on investment in significantly influenced
company 1,794 -
Gain on marketable securities (1,289) (858)
Share based payments 11,804 10,592
Employee benefit expense 856 737
------------------------
207,415 168,347
Changes in non-cash working capital 12 (16,322) (27,459)
------------------------
191,093 140,888
Investing activities
Purchase of property, plant and equipment (125,602) (97,632)
Proceeds from the sale of property, plant and
equipment 17 20,348
Purchase of marketable securities (214) -
Proceeds from the sale of marketable securities 6,345 692
Non-registered supplemental retirement plan
investments, net (4,980) -
Investment purchases (1,318) (5,375)
Increase in restricted cash (2,998) (2,221)
Increase in restricted asset and other - (2,483)
------------------------
(128,750) (86,671)
Financing activities
Issuance of common shares for cash 7,985 27,283
Dividend paid to non-controlling interests (3,622) (1,287)
Dividend paid to shareholders (27,741) (26,357)
Purchase of treasury stock (6,158) -
Long-term and bank debt proceeds 3,203 2,484
Long-term and bank debt repayments (44,716) (14,726)
------------------------
(71,049) (12,603)
------------------------
Net (decrease) increase in cash and cash
equivalents (8,706) 41,614
Cash and cash equivalents - beginning of period 314,344 265,369
------------------------
Cash and cash equivalents - end of period 305,638 306,983
------------------------
See accompanying notes to the unaudited condensed consolidated financial statements.
(Expressed in thousands of U.S. dollars)
Attributable to shareholders of the Company
Accum-
ulated
other
compre-
Contrib- hensive
Share Treasury uted income Retained
Note capital stock surplus (loss) earnings
Balance at January 1,
2011 11 2,814,679 - 22,967 (1,637) 125,221
Total comprehensive
(loss)
income for the period - - - (1,418) 127,338
Dividends declared to
Non-
controlling interests - - - -
Purchase of treasury
stock - (6,158) - - -
Shares issued upon
exercise
of share options, for
cash 6,500 - - - -
Estimated initial fair
value of
employee options and
warrants exercised 2,360 - - - -
Shares issued upon
exercise
of warrants, for cash 1,485 - - - -
Shares issued upon
exercise
of restricted cash
units - 1,726 - - -
Options and warrants
exercised
credited to share
capital - - (2,360) - -
Restricted share units
exercised,
credited to treasury
stock - - (1,726) - -
Share based payments - - 11,947 - -
Dividend paid to
shareholders of the
Company - - - - (27,741)
--------------------------------------------------
Balance at June 30,
2011 2,825,024 (4,432) 30,828 (3,055) 224,818
--------------------------------------------------
(Expressed in thousands of U.S. dollars)
Attributable to shareholders of the Company
Non-
control-
ling Total
Total interests equity
Balance at January 1,
2011 2,961,230 36,021 2,997,251
Total comprehensive
(loss)
income for the period 125,920 13,115 139,035
Dividends declared to
Non-
controlling interests - (8,095) (8,095)
Purchase of treasury
stock (6,158) - (6,158)
Shares issued upon
exercise
of share options, for
cash 6,500 - 6,500
Estimated initial fair
value of
employee options and
warrants exercised 2,360 - 2,360
Shares issued upon
exercise
of warrants, for cash 1,485 - 1,485
Shares issued upon
exercise
of restricted cash
units 1,726 - 1,726
Options and warrants
exercised
credited to share
capital (2,360) - (2,360)
Restricted share units
exercised,
credited to treasury
stock (1,726) - (1,726)
Share based payments 11,947 - 11,947
Dividend paid to
shareholders of the
Company (27,741) - ( 27,741)
------------------------------
Balance at June 30,
2011 3,073,183 41,041 3,114,224
------------------------------
Attributable to shareholders of the Company
Accum-
ulated
other
Contrib- compre- Retained
Share uted hensive earnings
Note capital surplus income (deficit)
Balance at January 1,
2010 2,671,634 17,865 2,227 (69,423)
Total comprehensive
income for the period - - 10,164 106,208
Dividends declared to
Non-
controlling interests - - - -
Shares issued upon
exercise
of share options, for
cash 27,283 - - -
Estimated initial fair
value of
employee options
exercised 9,405 - - -
Share based payments - 10,592 - -
Options exercised,
credited
to share capital - (9,405) - -
Dividend paid to
shareholders of the
Company - - - (26,357)
----------------------------------------
Balance at June 30,
2010 2,708,322 19,052 12,391 10,428
----------------------------------------
Attributable to shareholders of the Company
Non-
control-
ling Total
Total interests equity
Balance at January 1,
2010 2,622,303 26,144 2,648,447
Total comprehensive
income for the period 116,372 6,825 123,197
Dividends declared to
Non-
controlling interests - (1,287) (1,287)
Shares issued upon
exercise
of share options, for
cash 27,283 - 27,283
Estimated initial fair
value of
employee options
exercised 9,405 - 9,405
Share based payments 10,592 - 10,592
Options exercised,
credited
to share capital (9,405) - (9,405)
Dividend paid to
shareholders of the
Company (26,357) - (26,357)
------------------------------
Balance at June 30,
2010 2,750,193 31,682 2,781,875
------------------------------
See accompanying notes to the unaudited condensed consolidated financial statements.
Click here for the Unaudited Consolidated Financial Statements for the quarter ended June 30, 2011 in PDF: http://media3.marketwire.com/docs/728ELD%20Unaudited%20Consolidated%20Financial%20Statements.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