UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of November, 2019

Commission File Number: 001-31522
 
Eldorado Gold Corporation 

(Translation of registrant’s name into English)
 
1188-550 Burrard Street, Bentall 5
Vancouver, B.C. Canada V6C 2B5

(Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
 
Form 20-F   ☐   Form 40-F   ☑
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   ☐
 
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):   ☐
 
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

INCORPORATION BY REFERENCE
 
Exhibit 99.1 to this Form 6-K of Eldorado Gold Corporation (the “Company”) is hereby incorporated by reference as an exhibit to the Registration Statement on Form F-10 (File No. 333-233055) of the Company, as amended or supplemented.

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 	ELDORADO GOLD CORPORATION
(Registrant) 	 	
 	 	 	 	
Date: November 4, 2019	By:  	/s/ Karen Aram	 	
 	 	Karen Aram 	 	
 	 	Corporate Secretary 	 	

 

 
 
EXHIBIT INDEX
 
Exhibits	 	
99.1	Material Change Report dated October 31, 2019	

 

 

 

 

 

 

ELDORADO GOLD CORPORATION
FORM 51-102F3
MATERIAL CHANGE REPORT
Item 1.	Name and Address of Company	
Eldorado Gold Corporation (“Eldorado” or the “Company”)
Suite 1188 – Bentall 5
550 Burrard Street
Vancouver, British Columbia V6C 2B5
 
Item 2.	Date of Material Change	
October 31, 2019
 
Item 3.	News Release	
 
The news release was disseminated by WEST, and filed on SEDAR, on October 31, 2019.

Item 4.	Summary of Material Change	
 
The Company reported on its financial and operational results for the third quarter of 2019.
 
Item 5.	Full Description of Material Change	
 
The Company reported on its financial and operational results for the third quarter of 2019.
 
●	Extension of mine life at Kisladag supported by recent test results: Waste stripping to support a mine life extension at Kisladag is underway. Recent test results confirm recoveries from leaching deeper material over 250 day cycles support an extension of mine life beyond the Company's current three year guidance. Testwork is still ongoing and the Company expects to update long term guidance at Kisladag based on the results of this testwork, which are expected to be available in Q1 2020.	
 
●	Permits for Skouries and Olympias received: Permits allow for, among other things, installation of electrical and mechanical equipment at Skouries and Olympias. Subsequent to the quarter the Company also received approval for the Skouries building permit, which will allow the Company to begin installation of the Skouries mill building, and consent from the Central Archaeological Council to relocate an ancient mining furnace from the Skouries open pit area, subject to Ministerial approval.	
 
●	Successful ramp up at Lamaque: Lamaque achieved commercial production in April 2019 and has had two successful operating quarters. In September 2019, the Company announced that it is undertaking a Preliminary Economic Assessment (“PEA”) to increase average annual production from approximately 130,000 ounces of gold to approximately 170,000 ounces of gold.	
 
●	Increased Q3 gold production and reiterating 2019 annual guidance: Gold production for the quarter totalled 101,596 ounces with 276,376 ounces produced year-to-date. Quarterly production included 32,037 ounces from Lamaque in its second quarter of commercial operations and was partially offset by a decrease in production at Olympias as a result of reduced tonnage fed to the processing plant.	

-2-

●	Steady EBITDA: Higher sales volumes in the quarter resulted in earnings before interest, taxes and depreciation and amortization ("EBITDA") of $73.2 million. Adjusted EBITDA of $75.9 million excludes the impact of non-cash share-based compensation expense.	
 
●	Liquidity strengthened: The Company finished the quarter with approximately $322 million of liquidity including $134.9 million in cash, cash equivalents and term deposits and approximately $187 million available under its $250 million revolving credit facility, with $63 million of capacity on the revolving credit facility allocated to secure certain reclamation obligations in connection with its operations.	
 
●	Positive net earnings per share: Net earnings to shareholders in the quarter totalled $4.2 million, or $0.03 per share. Adjusted net earnings were $7.5 million, or $0.05 per share, after adjusting for non-cash deferred tax expense relating to foreign currency exchange rate fluctuations.	
 
Consolidated Financial and Operational Highlights
 	 
3 months ended September 30,
 	 
9 months ended September 30,

2019
 	 
2018
 	 
2019
 	 
2018
 	
Revenue (1)	 
$
172.3
 	 
$
81.1
 	 
$
426.0
 	 
$
366.1
 	
Gold revenue (1)	 
$
150.2
 	 
$
76.0
 	 
$
355.6
 	 
$
312.8
 	
Gold produced (oz) (2)	 
 
101,596

84,783

276,376

273,261
 	
Gold sold (oz) (1)	 
 
99,241

64,589

256,000

245,400
 	
Average realized gold price ($/oz sold) (5)	 
$
1,513
 	 
$
1,177
 	 
$
1,389
 	 
$
1,274
 	
Cash operating costs ($/oz sold) (3,5)	 
 
560

754

602

625
 	
Total cash costs ($/oz sold) (3,5)	 
 
603

762

641

647
 	
All-in sustaining costs ($/oz sold) (3,5)	 
 
1,031

1,112

998

944
 	
Net earnings (loss) for the period (4)	 
 
4.2

(128.0
)	 
 
(10.6
)	 
 
(143.7
)	
Net earnings (loss) per share – basic ($/share) (4)	 
 
0.03

(0.81
)	 
 
(0.07
)	 
 
(0.91
)	
Adjusted net earnings (loss) (4,5)	 
 
7.5

(21.9
)	 
 
(14.7
)	 
 
(9.5
)	
Adjusted net earnings (loss) per share ($/share) (4,5)	 
 
0.05

(0.14
)	 
 
(0.09
)	 
 
(0.06
)	
Cash flow from operating activities before changes in working capital (5,6)	 
 
62.9

(1.7
)	 
 
108.6

60.4
 	
Cash, cash equivalents and term deposits	 
$
134.9
 	 
$
385.0
 	 
$
134.9
 	 
$
385.0

(1)	Excludes sales of inventory mined at Lamaque and Olympias (Q1 2018) during the pre-commercial production period.	
(2)	Includes pre-commercial production at Lamaque and Olympias (Q1 2018).	
(3)	By-product revenues are off-set against cash operating costs.	
(4)	Attributable to shareholders of the Company.	
(5)	These measures are non-IFRS measures. See the September 30, 2019 MD&A for explanations and discussion of these non-IFRS measures.	
(6)	2018 amounts have been adjusted to reflect reclassifications in cash flow from operating activities in the current periods.	
 
Gold sales of 99,241 ounces increased from 64,589 ounces in the third quarter of 2018 primarily due to the sale of 31,122 ounces from Lamaque in its second quarter of commercial operations.
Total revenues increased to $172.3 million from $81.1 million in the third quarter of 2018 as a result of higher sales volumes and a higher average realized gold price of $1,513 per ounce in the third quarter of 2019 compared to $1,177 per ounce in the third quarter of 2018.

-3-

 
Cash operating costs per ounce sold decreased to $560 from $754 in the third quarter of 2018, primarily due to the ramp-up of mining, crushing and placement of ore on the Kisladag heap leach pad beginning in April 2019, and the partial allocation of processing costs to gold inventory in the heap leach pad. This was partially offset by higher cash operating costs per ounce sold at Olympias as a result of lower production levels and at Efemcukuru as a result of increased transportation costs.
 
Net earnings attributable to shareholders of $4.2 million ($0.03 per share) improved from a net loss attributable to shareholders in the third quarter of 2018 of $128.0 million ($0.81 loss per share). The improvement was primarily a result of higher sales volumes in the third quarter and an impairment charge in the third quarter of 2018 of $117.6 million ($94.1 million net of deferred income tax recovery) relating to the Kisladag heap leach pad.
 
Higher sales volumes in the quarter resulted in EBITDA of $73.2 million. Adjusted EBITDA of $75.9 million excludes the impact of share based payments.
 
Adjusted net earnings were $7.5 million ($0.05 per share) in the quarter, compared to adjusted net loss of $21.9 million ($0.14 loss per share) in the third quarter of 2018. Adjusted net earnings in the third quarter of 2019 removes, among other things, $3.4 million of deferred tax expense relating to foreign currency exchange rate fluctuations. Adjusted net loss in the third quarter of 2018 primarily removes the $117.6 million impairment charge ($94.1 million net of deferred income tax recovery) relating to the Kisladag heap leach operations.

 

 

-4-

Gold Operations
 	  
3 months ended September 30,
 	  
9 months ended September 30,

2019
 	  
2018
 	  
2019
 	  
2018
 	
Total	 

 

 	 

Ounces produced (1)	 
 
101,596

84,783

276,376

273,261
 	
Ounces sold (2)	 
 
99,241

64,589

256,000

245,400
 	
Cash operating costs ($/oz sold) (4)	 
$
560
 	 
$
754
 	 
$
602
 	 
$
625
 	
All-in sustaining costs ($/oz sold) (4)	 
$
1,031
 	 
$
1,112
 	 
$
998
 	 
$
944
 	
Sustaining capex (4)	 
$
30.0
 	 
$
12.1
 	 
$
56.3
 	 
$
37.2
 	
Kisladag	 

  

 	 

Ounces produced (3)	 
 
35,885

34,070

89,204

143,814
 	
Ounces sold	 
 
35,881

34,069

89,208

143,539
 	
Cash operating costs ($/oz sold) (4)	 
$
399
 	 
$
890
 	 
$
442
 	 
$
685
 	
All-in sustaining costs ($/oz sold) (4)	 
$
566
 	 
$
1,010
 	 
$
580
 	 
$
821
 	
Sustaining capex (4)	 
$
3.9
 	 
$
3.3
 	 
$
8.0
 	 
$
13.6
 	
Lamaque	 

  

 	 

Ounces produced (1)	 
 
32,037

13,430

84,855

19,304
 	
Ounces sold (2)	 
 
31,122

n/a

55,452

n/a
 	
Cash operating costs ($/oz sold) (4)	 
$
480

n/a
 	 
$
496

n/a
 	
All-in sustaining costs ($/oz sold) (4)	 
$
1,089

n/a
 	 
$
968

n/a
 	
Sustaining capex (4)	 
$
15.9

n/a
 	 
$
21.2

n/a
 	
Efemcukuru	 

  

 	 

Ounces produced	 
 
25,733

24,493

77,524

71,494
 	
Ounces sold	 
 
25,583

23,104

80,222

73,957
 	
Cash operating costs ($/oz sold) (4)	 
$
591
 	 
$
456
 	 
$
596
 	 
$
503
 	
All-in sustaining costs ($/oz sold) (4)	 
$
900
 	 
$
766
 	 
$
859
 	 
$
769
 	
Sustaining capex (4)	 
$
5.2
 	 
$
5.7
 	 
$
14.2
 	 
$
15.3
 	
Olympias	 

  

 	 

Ounces produced	 
 
7,941

12,790

24,793

38,649
 	
Ounces sold	 
 
6,655

7,416

31,118

27,904
 	
Cash operating costs ($/ounce)	 
$
1,678
 	 
$
1,058
 	 
$
1,268
 	 
$
643
 	
All in sustaining costs ($/ounce)	 
$
2,598
 	 
$
1,688
 	 
$
1,776
 	 
$
1,107
 	
Sustaining capex	 
$
4.9
 	 
$
3.1
 	 
$
12.9
 	 
$
8.3

(1)	Includes pre-commercial production at Lamaque and at Olympias (Q1 2018).	
(2)	Excludes sales of inventory produced at Lamaque and Olympias (Q1 2018) during the pre-commercial production period. In the nine months ended September 30, 2019, 27,627 ounces were sold from inventory produced during the pre-commercial production period.	
(3)	Kisladag resumed mining, crushing and placing ore on the heap leach pad on April 1, 2019. This activity had been suspended since April 2018.	
(4)	These measures are non-IFRS measures. See the September 30, 2019 MD&A for explanations and discussion of these non-IFRS measures.	
 
Gold production of 101,596 ounces increased from 84,783 ounces in the third quarter of 2018 primarily due to 32,037 ounces produced at Lamaque in its second quarter of commercial operations. This was partially offset by a decrease in production at Olympias as a result of reduced tonnage fed to the processing plant.

-5-

 
Non-IFRS Measures
Certain non-IFRS measures are included in this material change report, including average realized gold price per ounce sold, cash operating costs and cash operating costs per ounce sold, total cash costs and total cash costs per ounce sold, all-in sustaining costs ("AISC") and AISC per ounce sold, adjusted net earnings/(loss), adjusted net earnings/(loss) per share, working capital, cash flow from operations before changes in non-cash working capital, earnings before interest, taxes and depreciation and amortization ("EBITDA") and adjusted earnings before interest, taxes and depreciation and amortization ("Adjusted EBITDA") and sustaining capital. Please see the September 30, 2019 MD&A for explanations and discussion of these non-IFRS measures. The Company believes that these measures, in addition to conventional measures prepared in accordance with International Financial Reporting Standards (“IFRS”), provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.
 
Cautionary Note about Forward-looking Statements and Information
 
Certain of the statements made and information provided in this material change report are forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Often, these forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", “continue”, “projected”, "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
 
Forward-looking statements or information contained in this report include, but are not limited to, statements or information with respect to: our guidance and outlook, including expected production, cost guidance and recoveries of gold, favourable economics for our heap leaching plan and the ability to extend mine life at our projects, including at Kisladag through further metallurgical tests on deeper material, completion and results of waste stripping at Kisladag, improved production at Olympias, completion and results of construction and the PEA at Lamaque, completion of construction at Skouries, planned capital and exploration expenditures; our expectation as to our future financial and operating performance, expected metallurgical recoveries, gold price outlook and the global concentrate market; and our strategy, plans and goals, including our proposed exploration, development, construction, permitting and operating plans and priorities and related timelines and schedules and results of litigation and arbitration proceedings.
 
Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, market uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.
 
We have made certain assumptions about the forward-looking statements and information, including assumptions about the geopolitical, economic, permitting and legal climate that we operate in; the future price of gold and other commodities; the global concentrate market; exchange rates; anticipated costs and expenses; production, mineral reserves and resources and metallurgical recoveries, the impact of acquisitions, dispositions, suspensions or delays on our business and the ability to achieve our goals. In particular, except where otherwise stated, we have assumed a continuation of existing business operations on substantially the same basis as exists at the time of this report.
 
Even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Many assumptions may be difficult to predict and are beyond our control.
 
Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: results of further testwork, recoveries of gold and other metals; geopolitical and economic climate (global and local), risks related to mineral tenure and permits; gold and other commodity price volatility; continued softening of the global concentrate market; risks regarding potential and pending litigation and arbitration proceedings relating to the Company’s, business, properties and operations; expected impact on reserves and the carrying value; the updating of the reserve and resource models and life of mine plans; mining operational and development risk; financing risks, foreign country operational risks; risks of sovereign investment; regulatory risks and liabilities including, environmental regulatory restrictions and liability; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical testing and recoveries; additional funding requirements; currency fluctuations; community and non-governmental organization actions; speculative nature of gold exploration; dilution; share price volatility and the price of the common shares of the Company; competition; loss of key employees; and defective title to mineral claims or properties, as well as those risk factors discussed in the sections titled “Forward-Looking Statements” and "Risk factors in our business" in the Company's most recent Annual Information Form & Form 40-F. The reader is directed to carefully review the detailed risk discussion in our most recent Annual Information Form filed on SEDAR under our Company name, which discussion is incorporated by reference in this report, for a fuller understanding of the risks and uncertainties that affect the Company’s business and operations.

-6-

 
Forward-looking statements and information is designed to help you understand management’s current views of our near and longer term prospects, and it may not be appropriate for other purposes.
 
There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change.
 
Financial Information and condensed statements contained herein or attached hereto may not be suitable for readers that are unfamiliar with the Company and is not a substitute for reading the Company’s financial statements and related MD&A available on our website and on SEDAR under our Company name. The reader is directed to carefully review such document for a full understanding of the financial information summarized herein.
 
Except as otherwise noted, scientific and technical information contained in this material change report was reviewed and approved by Paul Skayman, FAusIMM, Chief Operating Officer for Eldorado Gold Corporation, and a "qualified person" under NI 43-101.

 

 

 

 
-7-
 
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Financial Position
(Unaudited – in thousands of U.S. dollars)
 
As at	 
Note
 	 
September 30,
2019
 	 
December 31,
2018
 	
ASSETS	 

 

 	
Current assets	 

 

 	
Cash and cash equivalents	 

$
129,978
 	 
$
286,312
 	
Term deposits	 

 
4,889

6,646
 	
Restricted cash	 

 
20

296
 	
Marketable securities	 

 
3,357

2,572
 	
Accounts receivable and other	 
 
4

77,616

80,987
 	
Inventories	 
 
5

151,459

137,885
 	
Assets held for sale	 
 
14

12,591

—

 

 
379,910

514,698
 	
Restricted cash	 

 	 
 
3,234

13,449
 	
Other assets	 

 	 
 
15,418

10,592
 	
Defined benefit pension plan	 

 	 
 
9,467

9,120
 	
Property, plant and equipment	 

 	 
 
3,997,067

3,988,476
 	
Goodwill	 

 	 
 
92,591

92,591

 

$
4,497,687
 	 
$
4,628,926
 	
LIABILITIES & EQUITY	 

 	 

 	 

 	
Current liabilities	 

 	 

 	 

 	
Accounts payable and accrued liabilities	 

 	 
$
121,284
 	 
$
137,900
 	
Current portion of lease liabilities	 

 	 
 
8,420

2,978
 	
Current portion of debt	 
 
6

33,333

—
 	
Current portion of asset retirement obligations	 

 	 
 
824

824
 	
Liabilities associated with assets held for sale	 
 
14

4,207

—

 

 
168,068

141,702
 	
Debt	 
 
6

449,755

595,977
 	
Lease liabilities	 

 	 
 
18,529

6,538
 	
Defined benefit pension plan	 

 	 
 
14,884

14,375
 	
Asset retirement obligations	 

 	 
 
88,568

93,319
 	
Deferred income tax liabilities	 

 	 
 
419,205

429,929

 

 
1,159,009

1,281,840
 	
Equity	 

 	 

 	 

 	
Share capital	 

 	 
 
3,008,172

3,007,924
 	
Treasury stock	 

 	 
 
(8,737
)	 
 
(10,104
)	
Contributed surplus	 

 	 
 
2,625,457

2,620,799
 	
Accumulated other comprehensive loss	 

 	 
 
(24,296
)	 
 
(24,494
)	
Deficit	 

 	 
 
(2,321,034
)	 
 
(2,310,453
)	
Total equity attributable to shareholders of the Company	 

 	 
 
3,279,562

3,283,672
 	
Attributable to non-controlling interests	 

 	 
 
59,116

63,414

 

 
3,338,678

3,347,086

 

$
4,497,687
 	 
$
4,628,926

Please see the Condensed Consolidated Interim Financial Statements dated September 30, 2019 for notes to the accounts.

 
-8-

Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Operations
For the three and nine months ended September 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars except share and per share amounts)

 
 	 
Three months ended
 	 
Nine months ended

 
 	 
September 30,
 	 
September 30,

Note
 	 
2019
 	 
2018
 	 
2019
 	 
2018
 	
Revenue	 

 

 	 

 
 	
  Metal sales	 
 
7
 	 
$
172,256
 	 
$
81,070
 	 
$
425,958
 	 
$
366,146

 

 

 

 

 

Cost of sales	 

 	 

 	 

 	 

 	 

 	
  Production costs	 

 	 
 
84,813

56,066

237,630

209,145
 	
  Depreciation and amortization	 

 	 
 
40,017

20,257

101,147

83,927

 

 
124,830

76,323

338,777

293,072

 

 

 

 

 

Earnings from mine operations	 

 	 
 
47,426

4,747

87,181

73,074

 

 

 

 

 

Exploration and evaluation expense	 

 	 
 
2,774

8,014

10,668

26,668
 	
Mine standby costs	 

 	 
 
2,529

4,460

13,972

11,470
 	
General and administrative expense	 

 	 
 
7,431

10,896

22,687

33,127
 	
Defined benefit pension plan expense	 

 	 
 
458

201

1,567

2,331
 	
Share based payments	 
 
10

2,727

1,580

8,127

5,742
 	
Impairment (reversal of impairment)	 
 
14,15

—

117,570

(11,690
)	 
 
117,570
 	
(Write-up) write-down of assets	 

 	 
 
(414
)	 
 
536

13

1,386
 	
Foreign exchange loss (gain)	 

 	 
 
643

(3,034
)	 
 
878

374
 	
Earnings (loss) from operations	 

 	 
 
31,278

(135,476
)	 
 
40,959

(125,594
)	

 

 

 

 

 
 	
Other income	 
 
8
(a)	 
 
871

6,284

11,159

13,878
 	
Finance costs	 
 
8
(b)	 
 
(13,170
)	 
 
(839
)	 
 
(37,287
)	 
 
(8,113
)	
Earnings (loss) from operations before income tax	 

 	 
 
18,979

(130,031
)	 
 
14,831

(119,829
)	

 

 

 

 

 
 	
Income tax expense	 

 	 
 
15,888

661

29,930

29,324
 	
Net earnings (loss) for the period	 

 	 
$
3,091
 	 
$
(130,692
)	 
$
(15,099
)	 
$
(149,153
)	

 

 

 

 

 
 	
Attributable to:	 

 	 

 	 

 	 

 	 

 	
Shareholders of the Company	 

 	 
 
4,233

(128,045
)	 
 
(10,581
)	 
 
(143,718
)	
Non-controlling interests	 

 	 
 
(1,142
)	 
 
(2,647
)	 
 
(4,518
)	 
 
(5,435
)	
Net earnings (loss) for the period	 

 	 
$
3,091
 	 
$
(130,692
)	 
$
(15,099
)	 
$
(149,153
)	

 

 

 

 

 
 	
Weighted average number of shares outstanding (thousands)	 

 	 

 	 

 	 

 	 

 	
Basic	 

 	 
 
158,462

158,294

158,409

158,434
 	
Diluted	 

 	 
 
161,735

158,294

158,409

158,434

 

 

 

 

 

Net earnings (loss) per share attributable to shareholders of the Company:	 

 	 

 	 

 	 

 	 

 	
Basic earnings (loss) per share	 

 	 
$
0.03
 	 
$
(0.81
)	 
$
(0.07
)	 
$
(0.91
)	
Diluted earnings (loss) per share	 

 	 
$
0.03
 	 
$
(0.81
)	 
$
(0.07
)	 
$
(0.91
)	
 
Please see the Condensed Consolidated Interim Financial Statements dated September 30, 2019 for notes to the accounts.

 
-9-

Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Comprehensive Income (Loss)
For the three and nine months ended September 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars)

 
 	 
Three months ended
 	 
Nine months ended

 
 	 
September 30,
 	 
September 30,

Note
 	 
2019
 	 
2018
 	 
2019
 	 
2018

 

 	 

 

 	
Net earnings (loss) for the period	 

 	 
$
3,091
 	 
$
(130,692
)	 
$
(15,099
)	 
$
(149,153
)	
Other comprehensive income (loss):	 

 

 

 

 

Items that will not be reclassified to earnings or loss:	 

 	 

 	 

 	 

 	 

 	
Change in fair value of investments in equity securities, net of tax	 

 	 
 
(378
)	 
 
(875
)	 
 
785

(2,034
)	
Actuarial (loss) gain on defined benefit pension plan,net of tax	 

 	 
 
(178
)	 
 
(200
)	 
 
(587
)	 
 
450
 	
Total other comprehensive income (loss) for the period	 

 	 
 
(556
)	 
 
(1,075
)	 
 
198

(1,584
)	
Total comprehensive income (loss) for the period	 

 	 
$
2,535
 	 
$
(131,767
)	 
$
(14,901
)	 
$
(150,737
)	

 

 

 

 

 
 	
Attributable to:	 

 	 

 	 

 	 

 	 

 	
Shareholders of the Company	 

 	 
 
3,677

(129,120
)	 
 
(10,383
)	 
 
(145,302
)	
Non-controlling interests	 

 	 
 
(1,142
)	 
 
(2,647
)	 
 
(4,518
)	 
 
(5,435
)	

 
 	 
$
2,535
 	 
$
(131,767
)	 
$
(14,901
)	 
$
(150,737
)	
 
Please see the Condensed Consolidated Interim Financial Statements dated September 30, 2019 for notes to the accounts.

 
-10-
 
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Cash Flows
For the three and nine months ended September 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars)

 
 	 
Three months ended
 	 
Nine months ended

 
 	 
September 30,
 	 
September 30,

Note
 	 
2019
 	 
2018
 	 
2019
 	 
2018
 	
Cash flows generated from (used in):	 

 

 	 

 
 	
Operating activities	 

 

 	 

 
 	
Net earnings (loss) for the period	 

$
3,091
 	 
$
(130,692
)	 
$
(15,099
)	 
$
(149,153
)	
Items not affecting cash:	 

 

 

 

 

Depreciation and amortization	 

 
41,759

19,828

102,889

83,498
 	
Finance costs	 
 
8
(b)	 
 
13,170

839

37,287

8,113
 	
Unrealized foreign exchange (gain) loss	 

 	 
 
(555
)	 
 
(144
)	 
 
(906
)	 
 
274
 	
Income from royalty sale	 
 
8
(a)	 
 
—

—

(8,075
)	 
 
—
 	
Income tax expense	 

 	 
 
15,888

661

29,930

29,324
 	
Impairment (reversal) of impairment	 
 
14,15

—

117,570

(11,690
)	 
 
117,570
 	
(Write-up) write-down of assets	 

 	 
 
(414
)	 
 
536

13

1,386
 	
Gain on derivatives and other investments	 
 
8
(a)	 
 
—

(2,326
)	 
 
—

(4,520
)	
Share based payments	 
 
10

2,727

1,580

8,127

5,742
 	
Defined benefit pension plan expense	 

 	 
 
458

201

1,567

2,331

 

 
76,124

8,053

144,043

94,565
 	
Property reclamation payments	 

 	 
 
(759
)	 
 
(801
)	 
 
(2,555
)	 
 
(3,200
)	
Severance and pension payments	 

 	 
 
(332
)	 
 
(49
)	 
 
(1,681
)	 
 
(2,299
)	
Income taxes paid	 

 	 
 
(8,593
)	 
 
(8,860
)	 
 
(12,603
)	 
 
(24,461
)	
Interest paid	 

 	 
 
(3,505
)	 
 
—

(18,641
)	 
 
(4,203
)	
Changes in non-cash working capital	 
 
11

(11,728
)	 
 
15,638

(6,961
)	 
 
2,200
 	
Net cash generated from operating activities	 

 	 
 
51,207

13,981

101,602

62,602

 

 

 

 

 

Investing activities	 

 	 

 	 

 	 

 	 

 	
Purchase of property, plant and equipment	 

 	 
 
(34,760
)	 
 
(56,203
)	 
 
(148,700
)	 
 
(160,491
)	
Capitalized interest paid	 

 	 
 
—

—

(3,848
)	 
 
(14,172
)	
Proceeds from the sale of property, plant and equipment	 

 	 
 
108

68

3,880

7,880
 	
Proceeds on pre-commercial production sales, net	 

 	 
 
—

(3,894
)	 
 
12,159

1,308
 	
Value added taxes related to mineral property expenditures, net	 

 	 
 
104

1,858

(7,615
)	 
 
6,660
 	
(Investment in) redemption of term deposits	 

 	 
 
(114
)	 
 
(5
)	 
 
1,757

(1,123
)	
Decrease (increase) in restricted cash	 
 
6
(b)	 
 
297

(30
)	 
 
10,491

(898
)	
Net cash used in investing activities	 

 	 
 
(34,365
)	 
 
(58,206
)	 
 
(131,876
)	 
 
(160,836
)	

 

 

 

 

 
 	
Financing activities	 

 	 

 	 

 	 

 	 

 	
Issuance of common shares for cash	 

 	 
 
161

—

179

—
 	
Contributions from non-controlling interests	 

 	 
 
220

—

220

—
 	
Proceeds from borrowings	 

 	 
 
—

—

494,000

—
 	
Repayment of borrowings	 
 
6
(c)	 
 
—

—

(600,000
)	 
 
—
 	
Loan financing costs	 

 	 
 
(428
)	 
 
—

(15,423
)	 
 
—
 	
Principal elements of lease payments	 

 	 
 
(2,387
)	 
 
(601
)	 
 
(4,773
)	 
 
(815
)	
Purchase of treasury stock	 

 	 
 
—

—

—

(2,108
)	
Net cash used in financing activities	 

 	 
 
(2,434
)	 
 
(601
)	 
 
(125,797
)	 
 
(2,923
)	

 

 

 

 

 
 	
Net increase (decrease) in cash and cash equivalents	 

 	 
 
14,408

(44,826
)	 
 
(156,071
)	 
 
(101,157
)	
Cash and cash equivalents - beginning of period	 

 	 
 
115,833

423,170

286,312

479,501

 

 
130,241

378,344

130,241

378,344
 	
Cash in disposal group held for sale	 
 
14

(263
)	 
 
—

(263
)	 
 
—
 	
Cash and cash equivalents - end of period	 

 	 
$
129,978
 	 
$
378,344
 	 
$
129,978
 	 
$
378,344

Please see the Condensed Consolidated Interim Financial Statements dated September 30, 2019 for notes to the accounts.

 
-11-
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Changes in Equity
For the three and nine months ended September 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars)

 
 	 
Three months ended
 	 
Nine months ended

 
 	 
September 30,
 	 
September 30,

Note
 	 
2019
 	 
2018
 	 
2019
 	 
2018
 	
Share capital	 

 

 	 

 
 	
Balance beginning of period	 

$
3,007,944
 	 
$
3,007,924
 	 
$
3,007,924
 	 
$
3,007,924
 	
Shares issued upon exercise of share options, for cash	 

 	 
 
161

—

179

—
 	
Transfer of contributed surplus on exercise of options	 

 	 
 
67

—

69

—
 	
Balance end of period	 

 	 
$
3,008,172
 	 
$
3,007,924
 	 
$
3,008,172
 	 
$
3,007,924

 

 

 

 

 

Treasury stock	 

 

 

 

 

Balance beginning of period	 

 	 
$
(8,813
)	 
$
(10,104
)	 
$
(10,104
)	 
$
(11,056
)	
Purchase of treasury stock	 

 	 
 
—

—

—

(2,108
)	
Shares redeemed upon exercise of restricted share units	 

 	 
 
76

—

1,367

3,060
 	
Balance end of period	 

 	 
$
(8,737
)	 
$
(10,104
)	 
$
(8,737
)	 
$
(10,104
)	

 

 

 

 

 
 	
Contributed surplus	 

 	 

 	 

 	 

 	 

 	
Balance beginning of period	 

 	 
$
2,623,523
 	 
$
2,617,108
 	 
$
2,620,799
 	 
$
2,616,593
 	
Share based payments	 

 	 
 
2,077

1,861

6,094

5,436
 	
Shares redeemed upon exercise of restricted share units	 

 	 
 
(76
)	 
 
—

(1,367
)	 
 
(3,060
)	
Transfer to share capital on exercise of options	 

 	 
 
(67
)	 
 
—

(69
)	 
 
—
 	
Balance end of period	 

 	 
$
2,625,457
 	 
$
2,618,969
 	 
$
2,625,457
 	 
$
2,618,969

 

 

 

 

 

Accumulated other comprehensive loss	 

 	 

 	 

 	 

 	 

 	
Balance beginning of period	 

 	 
$
(23,740
)	 
$
(21,859
)	 
$
(24,494
)	 
$
(21,350
)	
Other comprehensive (loss) income for the period	 

 	 
 
(556
)	 
 
(1,075
)	 
 
198

(1,584
)	
Balance end of period	 

 	 
$
(24,296
)	 
$
(22,934
)	 
$
(24,296
)	 
$
(22,934
)	

 

 

 

 

 
 	
Deficit	 

 	 

 	 

 	 

 	 

 	
Balance beginning of period	 

 	 
$
(2,325,267
)	 
$
(1,964,242
)	 
$
(2,310,453
)	 
$
(1,948,569
)	
Net earnings (loss) attributable to shareholders of the Company	 

 	 
 
4,233

(128,045
)	 
 
(10,581
)	 
 
(143,718
)	
Balance end of period	 

 	 
$
(2,321,034
)	 
$
(2,092,287
)	 
$
(2,321,034
)	 
$
(2,092,287
)	
Total equity attributable to shareholders of the Company	 

 	 
$
3,279,562
 	 
$
3,501,568
 	 
$
3,279,562
 	 
$
3,501,568

 

 

 

 

 

Non-controlling interests	 

 	 

 	 

 	 

 	 

 	
Balance beginning of period	 

 	 
$
60,257
 	 
$
78,153
 	 
$
63,414
 	 
$
79,940
 	
Net loss attributable to non-controlling interests	 

 	 
 
(1,142
)	 
 
(2,647
)	 
 
(4,518
)	 
 
(5,435
)	
Contributions from non-controlling interests	 

 	 
 
1

220

220

1,221
 	
Balance end of period	 

 	 
$
59,116
 	 
$
75,726
 	 
$
59,116
 	 
$
75,726
 	
Total equity	 

 	 
$
3,338,678
 	 
$
3,577,294
 	 
$
3,338,678
 	 
$
3,577,294

Please see the Condensed Consolidated Interim Financial Statements dated September 30, 2019 for notes to the accounts.

 
-12-

Item 6.	Reliance on 7.1(2) of National Instrument 51-102	
Not applicable.
 
Item 7.	Omitted Information	
Not applicable.
 
Item 8.	Executive Officer	
Name of Executive Officer:      Timothy Garvin
                                                     Executive Vice President and General Counsel
Telephone number:                   (604) 601 6692
 
Item 9.	Date of Report	
October 31, 2019