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 August, 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	þ	
 
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.

EXHIBIT INDEX

Exhibits

		
99.1	Unaudited Condensed Consolidated Interim Financial Statements for the Three and Six Months Ended June 30, 2019 and 2018	
99.2	Management's Discussion and Analysis for the Three and Six Months Ended June 30, 2019 and 2018	
99.3	CEO Certification	
99.4	CFO Certification	

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:  August 1, 2019	/s/ Karen Aram                                          
Karen Aram
Corporate Secretary	

Exhibit 99.1

  
 
Condensed Consolidated Interim Financial Statements
June 30, 2019 and 2018
(Unaudited)
(Expressed in thousands of U.S. dollars)

Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Financial Position    
(Unaudited – in thousands of U.S. dollars)

	
										
As at	Note		June 30, 2019			December 31, 2018		
ASSETS						
Current assets						
Cash and cash equivalents			$	115,109			$	286,312		
Term deposits			4,775			6,646		
Restricted cash			294			296		
Marketable securities			3,735			2,572		
Accounts receivable and other	 		82,458			80,987		
Inventories	4		132,318			137,885		
 	 		338,689		 	514,698		
Assets held for sale	13	 	13,370		 	—		
			352,059			514,698		
Restricted cash	 		3,261			13,449		
Other assets	 		20,311			10,592		
Defined benefit pension plan	 		9,556			9,120		
Property, plant and equipment	 		3,999,345			3,988,476		
Goodwill			92,591			92,591		
			$	4,477,123			$	4,628,926		
LIABILITIES & EQUITY						
Current liabilities						
Accounts payable and accrued liabilities			$	113,005			$	137,900		
Current portion of lease liabilities	 		8,802			2,978		
Current portion of debt	5(a)		33,333			—		
Current portion of asset retirement obligations			824			824		
			155,964			141,702		
Liabilities associated with assets held for sale	13	 	4,370		 	—		
 	 	 	160,334		 	141,702		
Debt	5		449,128			595,977		
Lease liabilities	 		16,759			6,538		
Defined benefit pension plan			14,856			14,375		
Asset retirement obligations			88,721			93,319		
Deferred income tax liabilities			413,421			429,929		
			1,143,219			1,281,840		
Equity						
Share capital	 		3,007,944			3,007,924		
Treasury stock			(8,813	)		(10,104	)	
Contributed surplus			2,623,523			2,620,799		
Accumulated other comprehensive loss			(23,740	)		(24,494	)	
Deficit			(2,325,267	)		(2,310,453	)	
Total equity attributable to shareholders of the Company			3,273,647			3,283,672		
Attributable to non-controlling interests			60,257			63,414		
			3,333,904			3,347,086		
			$	4,477,123			$	4,628,926		
Approved on behalf of the Board of Directors
                                        
(Signed) John Webster  Director          (Signed) George Burns      Director
Date of approval: August 1, 2019

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

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

	
																		
 	 	 	Three months ended	 	Six months ended	
 	 	 	June 30,	 	June 30,	
	Note	 	2019		 	2018			2019		 	2018		
Revenue		 	 	 	 					
  Metal sales	6	 	$	173,678		 	$	153,171			$	253,702			$	285,076		
		 	 	 	 				 	
Cost of sales		 	 	 	 				 	
  Production costs		 	100,896		 	85,844			152,817			153,079		
  Depreciation and amortization	 	 	41,188		 	34,482			61,130			63,670		
		 	142,084		 	120,326			213,947			216,749		
		 	 	 	 				 	
Earnings from mine operations		 	31,594		 	32,845			39,755			68,327		
		 	 	 	 				 	
Exploration and evaluation expense		 	2,529		 	6,849			7,894			10,997		
Mine standby costs		 	3,450		 	4,304			11,443			7,010		
General and administrative expense		 	8,084		 	14,006			15,256			22,231		
Defined benefit pension plan expense	 	 	510		 	1,047			1,109			2,130		
Share based payments	9	 	2,498		 	2,844			5,400			4,162		
Reversal of impairment	13	 	(11,690	)	 	—			(11,690	)		—		
Write-down of assets	 	 	410		 	4,483			427			8,507		
Foreign exchange loss		 	480		 	2,266			235			3,408		
Earnings (loss) from operations		 	25,323		 	(2,954	)		9,681			9,882		
		 	 	 	 				 	
Other income	7(a)	 	8,655		 	3,623			10,288			7,594		
Finance costs	7(b)	 	(16,786	)	 	(3,200	)		(24,117	)		(7,274	)	
Earnings (loss) from operations before income tax		 	17,192		 	(2,531	)		(4,148	)		10,202		
 	 	 	 	 	 	 	 	 	 	
Income tax expense	 	 	8,010		 	21,579			14,042			28,663		
Net earnings (loss) for the period		 	$	9,182		 	$	(24,110	)		$	(18,190	)		$	(18,461	)	
		 	 	 	 				 	
Attributable to:		 	 	 	 				 	
Shareholders of the Company		 	12,151		 	(24,391	)		(14,814	)		(15,673	)	
Non-controlling interests		 	(2,969	)	 	281			(3,376	)		(2,788	)	
Net earnings (loss) for the period		 	$	9,182		 	$	(24,110	)		$	(18,190	)		$	(18,461	)	
		 	 	 	 				 	
Weighted average number of shares outstanding (thousands)	 	 	 	 	 				 	
Basic		 	158,372		 	158,552			158,345			158,506		
Diluted		 	158,372		 	158,552			158,345			158,506		
		 	 	 	 				 	
Net earnings (loss) per share attributable to shareholders of the Company:		 	 	 	 				 	
Basic earnings (loss) per share		 	$	0.08		 	$	(0.15	)		$	(0.09	)		$	(0.10	)	
Diluted earnings (loss) per share		 	$	0.08		 	$	(0.15	)		$	(0.09	)		$	(0.10	)	

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

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

	
																		
			Three months ended	 	Six months ended	
 	 	 	June 30,	 	June 30,	
 	Note	 	2019		 	2018		 	2019		 	2018		
						 	 	 	 	
Net earnings (loss) for the period			$	9,182			$	(24,110	)	 	$	(18,190	)	 	$	(18,461	)	
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			1,016			(420	)	 	1,163		 	(1,159	)	
Actuarial (loss) gain on defined benefit pension plan,
net of tax	 		(63	)		641		 	(409	)	 	650		
Total other comprehensive income (loss) for the period			953			221		 	754		 	(509	)	
Total comprehensive income (loss) for the period			$	10,135			$	(23,889	)	 	$	(17,436	)	 	$	(18,970	)	
						 	 	 	 	
Attributable to:						 	 	 	 	
Shareholders of the Company			13,104			(24,170	)	 	(14,060	)	 	(16,182	)	
Non-controlling interests			(2,969	)		281		 	(3,376	)	 	(2,788	)	
			$	10,135			$	(23,889	)	 	$	(17,436	)	 	$	(18,970	)	

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

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

	
																		
 	 	 	Three months ended	 	Six months ended	
	 		June 30,	 	June 30,	
 	Note	 	2019		 	2018		 	2019		 	2018		
Cash flows generated from (used in):						 	 	 	 	
Operating activities						 	 	 	 	
Net earnings (loss) for the period			$	9,182			$	(24,110	)	 	$	(18,190	)	 	$	(18,461	)	
Items not affecting cash:						 	 	 	 	
Depreciation and amortization	 		41,188			34,482		 	61,130		 	63,670		
Finance costs	7(b)	 	16,786		 	3,200		 	24,117		 	7,274		
Unrealized foreign exchange (gain) loss	 	 	(178	)	 	169		 	(351	)	 	418		
Income from royalty sale	7(a)	 	(8,075	)	 	—		 	(8,075	)	 	—		
Income tax expense			8,010			21,579		 	14,042		 	28,663		
Reversal of impairment	13		(11,690	)		—		 	(11,690	)	 	—		
Write-down of assets			410			4,483		 	427		 	8,507		
Gain on derivatives and other investments	7(a)	 	—		 	(1,406	)	 	—		 	(2,194	)	
Share based payments	9		2,498			2,844		 	5,400		 	4,162		
Defined benefit pension plan expense			510			1,047		 	1,109		 	2,130		
			58,641			42,288		 	67,919		 	94,169		
Property reclamation payments			(896	)		(1,592	)	 	(1,796	)	 	(2,399	)	
Severance and pension payments			(1,349	)		(2,250	)	 	(1,349	)	 	(2,250	)	
Income taxes paid	 	 	(4,010	)	 	(7,984	)	 	(4,010	)	 	(15,601	)	
Interest paid	 	 	(14,886	)	 	(4,203	)	 	(15,136	)	 	(4,203	)	
Changes in non-cash working capital	10		13,523			17,170		 	4,767		 	(9,912	)	
Net cash generated from operating activities			51,023			43,429		 	50,395		 	59,804		
						 	 	 	 	
Investing activities						 	 	 	 	
Purchase of property, plant and equipment			(48,020	)		(63,619	)	 	(113,940	)	 	(115,471	)	
Capitalized interest paid	 	 	(3,848	)	 	(14,172	)	 	(3,848	)	 	(14,172	)	
Proceeds from the sale of property, plant and equipment	 		3,392			7,751		 	3,772		 	7,812		
Proceeds on pre-commercial production sales, net	 		7,606			332		 	12,159		 	5,202		
Value added taxes related to mineral property expenditures, net			(5,348	)		(1,412	)	 	(7,719	)	 	4,802		
Redemption of (investment in) term deposits			1,897			(1,102	)	 	1,871		 	(1,118	)	
Decrease (increase) in restricted cash	5(b)		10,640			(26	)	 	10,194		 	(868	)	
Net cash used in investing activities			(33,681	)		(72,248	)	 	(97,511	)	 	(113,813	)	
						 	 	 	 	
Financing activities						 	 	 	 	
Issuance of common shares for cash			18			—		 	18		 	—		
Proceeds from borrowings	 	 	494,000		 	—		 	494,000		 	—		
Repayment of borrowings	5(c)	 	(600,000	)	 	—		 	(600,000	)	 	—		
Loan financing costs	 	 	(14,995	)	 	—		 	(14,995	)	 	—		
Principal elements of lease payments	 	 	(1,312	)	 	(103	)	 	(2,386	)	 	(214	)	
Purchase of treasury stock	 	 	—		 	(2,108	)	 	—		 	(2,108	)	
Net cash used in financing activities			(122,289	)		(2,211	)	 	(123,363	)	 	(2,322	)	
						 	 	 	 	
Net decrease in cash and cash equivalents			(104,947	)		(31,030	)	 	(170,479	)	 	(56,331	)	
Cash and cash equivalents - beginning of period			220,780			454,200		 	286,312		 	479,501		
 	 	 	115,833		 	423,170		 	115,833		 	423,170		
Cash in disposal group held for sale	13	 	(724	)	 	—		 	(724	)	 	—		
Cash and cash equivalents - end of period			$	115,109			$	423,170		 	$	115,109		 	$	423,170		

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

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

	
																		
 	 	 	Three months ended	 	Six months ended	
 	 	 	June 30,	 	June 30,	
	Note		2019		 	2018		 	2019		 	2018		
Share capital			 	 	 	 				
Balance beginning of period			$	3,007,924		 	$	3,007,924		 	$	3,007,924			$	3,007,924		
Shares issued upon exercise of share options, for cash			18		 	—		 	18			—		
Transfer of contributed surplus on exercise of options			2		 	—		 	2			—		
Balance end of period	 		$	3,007,944		 	$	3,007,924		 	$	3,007,944			$	3,007,924		
			 	 	 	 	 			
Treasury stock			 	 	 	 	 			
Balance beginning of period			$	(9,269	)	 	$	(11,056	)	 	$	(10,104	)		$	(11,056	)	
Purchase of treasury stock			—		 	(2,108	)	 	—			(2,108	)	
Shares redeemed upon exercise of restricted share units			456		 	3,060		 	1,291			3,060		
Balance end of period			$	(8,813	)	 	$	(10,104	)	 	$	(8,813	)		$	(10,104	)	
			 	 	 	 	 			
Contributed surplus			 	 	 	 	 			
Balance beginning of period			$	2,621,866		 	$	2,618,323		 	$	2,620,799			$	2,616,593		
Share based payments			2,115		 	1,845		 	4,017			3,575		
Shares redeemed upon exercise of restricted share units			(456	)	 	(3,060	)	 	(1,291	)		(3,060	)	
Transfer to share capital on exercise of options			(2	)	 	—		 	(2	)		—		
Balance end of period			$	2,623,523		 	$	2,617,108		 	$	2,623,523			$	2,617,108		
			 	 	 	 	 			
Accumulated other comprehensive loss			 	 	 	 	 			
Balance beginning of period			$	(24,693	)	 	$	(22,080	)	 	$	(24,494	)		$	(21,350	)	
Other comprehensive income (loss) for the period			953		 	221		 	754			(509	)	
Balance end of period			$	(23,740	)	 	$	(21,859	)	 	$	(23,740	)		$	(21,859	)	
			 	 	 	 	 			
Deficit			 	 	 	 	 			
Balance beginning of period			$	(2,337,418	)	 	$	(1,939,851	)	 	$	(2,310,453	)		$	(1,948,569	)	
Net earnings (loss) attributable to shareholders of the Company			12,151		 	(24,391	)	 	(14,814	)		(15,673	)	
Balance end of period			$	(2,325,267	)	 	$	(1,964,242	)	 	$	(2,325,267	)		$	(1,964,242	)	
Total equity attributable to shareholders of the Company			$	3,273,647		 	$	3,628,827		 	$	3,273,647			$	3,628,827		
			 	 	 	 	 			
Non-controlling interests			 	 	 	 	 			
Balance beginning of period			$	63,007		 	$	77,872		 	$	63,414			$	79,940		
Net (loss) earnings attributable to non-controlling interests			(2,969	)	 	281		 	(3,376	)		(2,788	)	
Contributions from non-controlling interests			219		 	—		 	219			1,001		
Balance end of period			$	60,257		 	$	78,153		 	$	60,257			$	78,153		
Total equity			$	3,333,904		 	$	3,706,980		 	$	3,333,904			$	3,706,980		

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

1. General Information
Eldorado Gold Corporation (individually or collectively with its subsidiaries, as applicable, “Eldorado” or the “Company”) is a gold and base metals mining, development, and exploration company. The Company has mining operations, ongoing development projects and exploration in Turkey, Canada, Greece, Romania, Brazil and Serbia.
Eldorado is a public company listed on the Toronto Stock Exchange (“TSX”) and the New York Stock Exchange (“NYSE”) and is incorporated in the province of British Columbia, Canada.
The Company's head office, principal address and records are located at 550 Burrard Street, Suite 1188, Vancouver, British Columbia, Canada, V6C 2B5.

2. Basis of preparation

a)	Statement of compliance	
These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34 ‘Interim Financial Reporting’. They do not include all of the information and footnotes required by International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) for full annual financial statements and should be read in conjunction with the Company’s annual audited consolidated financial statements as at and for the year ended December 31, 2018 .
Except as described in note 3 , the same accounting policies were used in the preparation of these unaudited condensed consolidated interim financial statements as for the most recent audited annual consolidated financial statements and reflect all the adjustments necessary for fair presentation in accordance with IFRS for the interim periods presented.
Certain prior period balances have been reclassified to conform to current period presentation.
These unaudited condensed consolidated interim financial statements were authorized for issue by the Company’s Board of Directors on August 1, 2019 .

b)	Judgment and estimates	
The preparation of these unaudited condensed consolidated interim financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
The Company applies judgment to determine the date on which a mine development property enters the commercial production stage. On March 31, 2019, the Company declared commercial production at the Lamaque mine, having reached certain milestones. Commercial production represents the point at which the group of assets were able to operate as intended by management. Upon declaring commercial production, Lamaque recognizes all revenue and costs in profit or loss. Prior to March 31, 2019, costs incurred for construction, development and commissioning of the mine, net of pre-commercial sales, were recognized within mineral property in property, plant and equipment.
All other significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty are the same as those that applied to the consolidated financial statements as at and for the year ended December 31, 2018 .

( 1 )

Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

3. Adoption of new accounting standards
The following standards and amendments to existing standards have been adopted by the Company commencing January 1, 2019:
a) IFRS 16 ‘Leases ’
IFRS 16 introduces a single accounting model for lessees. The Company, as lessee, is required to recognize a right-of-use asset, representing its right to use the underlying asset, and a lease liability, representing its obligation to make lease payments. The Company may elect to not apply IFRS 16 to leases with a term of less than 12 months, which election is made by underlying class of assets to which the right of use asset relates, or leases where the underlying asset is of low value, which election is made on an asset by asset basis. The accounting treatment for lessors remains largely the same as under IAS 17 'Leases' .
The Company adopted this standard from January 1, 2019 using the modified retrospective approach. Accordingly, the comparative information presented for 2018 has not been restated.
Previously, the Company determined at contract inception whether an arrangement was or contained a lease under IFRIC 4, ‘ Determining Whether an Arrangement contains a Lease’. On adoption of IFRS 16, the Company now assesses whether a contract is or contains a lease based on whether the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. On transition to IFRS 16, the Company elected to apply the practical expedient permitted by the standard to grandfather the assessment of which transactions are leases. IFRS 16 was applied only to contracts that were previously identified as leases. Contracts that were not identified as leases under IAS 17 and IFRIC 4 were not reassessed using the definition of a lease under IFRS 16. Therefore, the definition of a lease under IFRS 16 has been applied only to contracts entered into or changed on or after January 1, 2019.
The Company leases various assets including equipment, offices and properties that had previously been classified as operating leases under IAS 17. On adoption of IFRS 16, liabilities for these leases were measured at the present value of the remaining lease payments, discounted using the Company’s incremental borrowing rate as of January 1, 2019. The weighted average incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 13.1%. The Company elected to measure the right-of-use assets for these leases at amounts equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments recognized in the statement of financial position on December 31, 2018.
On initial adoption, the Company used the following practical expedients as permitted by the standard when applying IFRS 16 to leases previously classified as operating leases under IAS 17.
		
•	Applied the exemption not to recognize right-of-use assets and liabilities for leases with low value.	
		
•	Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term remaining.	
		
•	Applied a single discount rate to a portfolio of leases with reasonably similar characteristics (such as leases with a similar remaining lease term for a similar class of underlying asset in a similar economic environment).	
		
•	Excluded initial direct costs from measuring the right-of-use asset at the date of initial application.	
		
•	Used hindsight, such as in determining the lease term if the contract contains options to extend or terminate the lease.	
The Company also leases various equipment that had previously been classified as finance leases under IAS 17. For these finance leases, the carrying amount of the right-of-use asset and the lease liability at January 1, 2019 were determined at the carrying amount of the lease asset and lease liability under IAS 17 immediately before that date.

( 2 )

Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

3. Adoption of new accounting standards (continued)
The impact on transition is summarized below .

												
 	December 31, 2018		 	IFRS 16 Adjustment		 	January 1, 2019		
 	 	 	 	 	 	
Lease assets presented in property, plant and equipment                                    	$	11,345		 	$	9,379		 	$	20,724		
Lease liabilities – current                                                     	2,978		 	2,658		 	5,456		
Lease liabilities – non-current                                              	6,538		 	6,168		 	12,706		
Accounts receivable and other	80,987		 	(553	)	 	80,434		

On adoption of IFRS 16, the Company excluded certain arrangements which management concluded were not within the scope of IFRS 16 because they are arrangements for the use of land that grant the Company the right to explore, develop, produce or otherwise use the mineral resource contained in that land. A reconciliation of lease commitments previously reported and the amount of the lease liability recognized is as follows:

				
 	January 1, 2019		
 	 	
Operating lease commitments at December 31, 2018	$	64,690		
Exclusion of arrangements to explore for or use minerals	(53,186	)	
Leases with low value at January 1, 2019	(1,677	)	
Leases with less than 12 months of remaining lease term at January 1, 2019	(866	)	
Arrangements reassessed as leases	3,120		
Effect of discounting using the incremental borrowing rate at January 1, 2019	(3,255	)	
Lease liabilities recognized as IFRS 16 adjustment at January 1, 2019	$	8,826		

The following is the new accounting policy for leases under IFRS 16:
A contract is or contains a lease when the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration.
The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, and subsequently at cost less any accumulated depreciation and impairment losses, and is adjusted for certain re-measurements of the lease liability. The cost of the right of use asset includes the amount of the initial measurement of the lease liability, any lease payments made at or before the commencement date, less any lease incentives received, any initial direct costs; and if applicable, an estimate of costs to be incurred by the Company in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease .
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. The incremental borrowing rate reflects the rate of interest that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.

( 3 )

Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

3. Adoption of new accounting standards (continued)
The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is re-measured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimate of the amount expected to be payable under a residual value guarantee, or as appropriate, changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised. The Company applies judgment to determine the lease term for some lease contracts which contain renewal options.
The Company does not recognize right-of-use assets and lease liabilities for leases of low-value assets, leases with lease terms that are less than 12 months and arrangements for the use of land that grant the Company the right to explore, develop, produce or otherwise use the mineral resource contained in that land. Lease payments associated with these arrangements are instead recognized as an expense over the term on either a straight-line basis, or another systematic basis if more representative of the pattern of benefit. The Company applies judgment in determining whether an arrangement grants the Company the right to explore, develop, produce or otherwise use the mineral resource contained in that land.
		
b)	IFRIC 23 'Uncertainty over Income Tax Treatments'	
This interpretation sets out how to determine the accounting tax position when there is uncertainty over income tax treatments. At January 1, 2019, the Company adopted this standard and there was no impact on its unaudited condensed consolidated interim financial statements.

4. Inventories

								
 	June 30, 2019		 	December 31, 2018		
 	 	 	 	
Ore stockpiles	$	4,887		 	$	5,615		
In-process inventory and finished goods	51,136		 	55,978		
Materials and supplies	76,295		 	76,292		
 	$	132,318		 	$	137,885		

Charges of $386 and $1,241 were recognized in production costs and depreciation, respectively, in the three months ended June 30, 2019 to reduce the cost of lead and zinc concentrate inventory at Olympias to net realizable value (three months ended June 30, 2018 – $nil).
Charges of $386 and $4,273 were recognized in production costs and depreciation, respectively, in the six months ended June 30, 2019 to reduce the cost of gold, lead and zinc concentrate inventory at Olympias to net realizable value (six months ended June 30, 2018 – $nil).

( 4 )

Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

5. Debt

								
 	June 30, 2019		 	December 31, 2018		
Senior notes, net of unamortized discount and transaction costs of $14,997 (2018 - $4,023)	$	286,376		 	$	595,977		
Term loan, net of unamortized transaction costs of $2,542	197,458		 	—		
Derivative asset	(1,373	)	 	—		
Total debt	$	482,461		 	$	595,977		
Less current portion	33,333		 	—		
 	$	449,128		 	$	595,977		

(a) Senior Secured Second Lien Notes
On June 5, 2019, the Company completed an offering of $300 million senior secured second lien notes (the "senior secured notes”) at 98% of par value, with a coupon rate of 9.5% due June 1, 2024. The senior secured notes pay interest semi-annually on June 1 and December 1, beginning December 1, 2019. The Company received $287.1 million from the offering, which is net of the original issue discount of $6,000, commission payment and certain transaction costs paid to or on behalf of the lenders totaling $6,903. The debt is also presented net of transaction costs of $2,314 incurred directly by the Company in conjunction with the offering. The original discount, commission payment and transaction costs will be amortized over the term of the senior secured notes and included as finance costs. Net proceeds from the senior secured notes were used to redeem in part the Company’s outstanding $600 million 6.125% senior notes due December 15, 2020.
The senior secured notes are secured on a second lien basis by a general security agreement from the Company by the Company’s real property in Canada and shares of SG Resources B.V., Tüprag Metal, Eldorado Gold (Greece) BV, Integra Gold Corp. and Integra Gold (Québec) Inc., all wholly owned subsidiaries of the Company.
The senior secured notes are redeemable by the Company in whole or in part, for cash:
		
i)	At any time prior to December 1, 2021 at a redemption price equal to 100% of the aggregate principal amount of the senior secured notes, accrued and unpaid interest and a premium at the greater of 1% of the principal value of the notes to be redeemed, or the present value of remaining interest to December 1, 2021 discounted at the treasury yield plus 50 basis points.	
		
ii)	On and after the dates provided below, at the redemption prices, expressed as a percentage of principal amount of the notes to be redeemed, set forth below, plus accrued and unpaid interest on the senior secured notes:	
December 1, 2021               107.125%
December 1, 2022 and thereafter    100.000%
The redemption features described above constitute an embedded derivative which was separately recognized at its fair value of $1,373 on initial recognition of the senior secured notes and recorded in other assets. The embedded derivative is classified as fair value through profit and loss. The change in fair value between the initial recognition date and June 30, 2019 was not significant.
The senior secured notes contain covenants that restrict, among other things, the ability of the Company to incur certain capital expenditures, distributions in certain circumstances and sales of material assets, in each case, subject to certain conditions. The Company is in compliance with these covenants at June 30, 2019 .
The fair market value of the senior secured notes as at June 30, 2019 is $302 million.

( 5 )

Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

5. Debt (continued)
(b) Senior Secured Credit Facility
In November 2012, the Company entered into a $375 million revolving credit facility with a syndicate of banks. The credit facility was amended and restated in June 2016 (the "amended and restated credit agreement” or “ARCA”) and reduced to an available credit of $250 million with the option to increase by an additional $100 million through an accordion feature. In May 2019, the Company executed a $450 million amended and restated senior secured credit facility (“the third amended and restated credit agreement” or “TARCA”) , replacing the ARCA. The TARCA consists of the following:

i)	A $200 million non-revolving term loan with six equal semi-annual payments commencing June 30, 2020 . The term loan was used to redeem in part the Company’s outstanding $600 million 6.125% senior notes due December 2020.	
		
ii)	A $250 million revolving credit facility with a maturity date of June 5, 2024 .	
As at June 30, 2019, the Company has outstanding EUR 63.4 million ( $71 million ) in non-financial letters of credit issued to secure certain obligations in connection with its operations, which reduce availability under the revolving credit facility by a corresponding amount. Concurrent to the establishment of the facility, $10.6 million of restricted cash was released that had previously been held to secure letters of credit.
The TARCA contains covenants that restrict, among other things, the ability of the Company to incur additional unsecured indebtedness except in compliance with certain conditions, incur certain lease obligations, make distributions in certain circumstances, sell material assets or carry on a business other than one related to mining. Significant financial covenants include a minimum Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) to interest ratio and a maximum debt net of unrestricted cash ("net debt") to EBITDA ratio ("net leverage ratio"). The Company is in compliance with its covenants at June 30, 2019 . 
Both the term loan and revolving credit facility bear interest at LIBOR plus a margin of 2.25% – 3.25%, dependent on a net leverage ratio pricing grid. The Company’s current interest charges and fees are as follows: LIBOR plus margin of 3.25% on the term loan and any amounts drawn from the revolving credit facility, LIBOR plus margin of 2.17% on non-financial letters of credit secured by the revolving credit facility and 0.8125% standby fees on the available and undrawn portion of the revolving credit facility.
The TARCA is secured on a first lien basis by a general security agreement from the Company, the Company's real property in Canada and shares of SG Resources B.V., Tüprag Metal, Eldorado Gold (Greece) BV, Integra Gold Corp. and Integra Gold (Québec) Inc., all wholly owned subsidiaries of the Company.
The term loan is presented net of transaction costs of $2,568 incurred in conjunction with the amendment. The transaction costs will be amortized over the term of the term loan and included in finance costs.
Fees of $3,210 relating to the undrawn revolving credit facility have been recorded in other assets and will be amortized over the term of the TARCA. As at June 30, 2019 , the prepaid loan cost was $3,152 ( December 31, 2018 – $749). $524 of unamortized deferred financing costs relating to the ARCA were expensed as interest and financing costs on the amendment date ( note 7(b) ).
No amounts were drawn down under the revolving credit facility in the three and six months ended June 30, 2019 and as at June 30, 2019 , the balance is nil.
(c) Senior Notes
On December 10, 2012, the Company completed an offering of $600 million senior notes (“the 2012 notes”) at par value, with a coupon rate of 6.125% due December 15, 2020. The 2012 notes paid interest semi-annually on June 15 and December 15. The 2012 notes were redeemed in whole for cash by the Company on June 12, 2019 using proceeds from the senior secured notes and the TARCA term loan, together with cash on hand. $18,069 of accrued interest was also paid upon redemption. $3,035 of unamortized deferred financing costs relating to the 2012 notes were expensed as interest and financing costs upon redemption ( note 7(b) ).

( 6 )

Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

6. Revenue
For the three months ended June 30, 2019 , revenue from contracts with customers by product and segment was as follows:

																
 	Turkey		 	Canada		 	Greece		 	Total		
 	 	 	 	 	 	 	 	
Gold revenue - dore	$	34,265		 	$	32,368		 	$	—		 	$	66,633		
Gold revenue - concentrate	64,420		 	—		 	18,212		 	82,632		
Silver revenue - dore	264		 	150		 	—		 	414		
Silver revenue - concentrate	1,056		 	—		 	3,588		 	4,644		
Lead concentrate	—		 	—		 	7,853		 	7,853		
Zinc concentrate	—		 	—		 	13,017		 	13,017		
Revenue from contracts with customers	$	100,005		 	$	32,518		 	$	42,670		 	$	175,193		
Gain (loss) on revaluation of derivatives in trade receivables	695		 	—		 	(2,210	)	 	(1,515	)	
 	$	100,700		 	$	32,518		 	$	40,460		 	$	173,678		

For the three months ended June 30, 2018 , revenue from contracts with customers by product and segment was as follows:

												
 	Turkey		 	Greece		 	Total		
 	 	 	 	 	 	
Gold revenue - dore	$	72,597		 	$	—		 	$	72,597		
Gold revenue - concentrate	30,578		 	19,199		 	49,777		
Silver revenue - dore	375		 	—		 	375		
Silver revenue - concentrate	950		 	3,480		 	4,430		
Lead concentrate	—		 	9,720		 	9,720		
Zinc concentrate	—		 	16,835		 	16,835		
Revenue from contracts with customers	$	104,500		 	$	49,234		 	$	153,734		
Loss on revaluation of derivatives in trade receivables	—		 	(563	)	 	(563	)	
 	$	104,500		 	$	48,671		 	$	153,171		

( 7 )

Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

6. Revenue (continued)
For the six months ended June 30, 2019 , revenue from contracts with customers by product and segment was as follows:

																
 	Turkey		 	Canada		 	Greece		 	Total		
 	 	 	 	 	 	 	 	
Gold revenue - dore	$	69,888		 	$	32,368		 	$	—		 	$	102,256		
Gold revenue - concentrate	71,897		 	—		 	29,857		 	101,754		
Silver revenue - dore	535		 	150		 	—		 	685		
Silver revenue - concentrate	1,154		 	—		 	8,054		 	9,208		
Lead concentrate	—		 	—		 	15,042		 	15,042		
Zinc concentrate	—		 	—		 	24,661		 	24,661		
Revenue from contracts with customers	$	143,474		 	$	32,518		 	$	77,614		 	$	253,606		
Gain (loss) on revaluation of derivatives in trade receivables	695		 	—		 	(599	)	 	96		
 	$	144,169		 	$	32,518		 	$	77,015		 	$	253,702		

For the six months ended June 30, 2018 , revenue from contracts with customers by product and segment was as follows:

												
 	Turkey		 	Greece		 	Total		
 	 	 	 	 	 	
Gold revenue - dore	$	144,334		 	$	—		 	$	144,334		
Gold revenue - concentrate	66,651		 	26,797		 	93,448		
Silver revenue - dore	697		 	—		 	697		
Silver revenue - concentrate	1,828		 	5,281		 	7,109		
Lead concentrate	—		 	15,695		 	15,695		
Zinc concentrate	—		 	24,662		 	24,662		
Revenue from contracts with customers	$	213,510		 	$	72,435		 	$	285,945		
Loss on revaluation of derivatives in trade receivables	—		 	(869	)	 	(869	)	
 	$	213,510		 	$	71,566		 	$	285,076		

( 8 )

Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

7. Other income & finance costs

														
 	Three months ended June 30,	 	 	Six months ended June 30,	 	
(a) Other income	2019		2018		 	2019		2018		
 	 	 	 	 	 	
(Loss) gain on disposal of assets	$	(951	)	$	42		 	$	(1,013	)	$	128		
Gain on derivatives and other investments	—		1,406		 	—		2,194		
Interest and other income	1,531		2,175		 	3,226		5,272		
Income from royalty sale	8,075		—		 	8,075		—		
 	$	8,655		$	3,623		 	$	10,288		$	7,594		

In June 2019, the Company recognized other income of $8,075 from the sale of a 2.5% net smelter return royalty interest ("NSR") on a property in Turkey. The NSR had a carrying value of nil. Consideration for the sale was $8,075, of which $1,538 was received in cash and the remaining $6,537 has been recorded in accounts receivable at June 30, 2019 and will be settled at the closing date in December 2019. Of the remaining proceeds, $1,537 will be settled in cash and $5,000 is expected to be settled through the transfer of a mineral property license.

	
														
 	Three months ended June 30,	 	 	Six months ended June 30,	 	
(b) Finance costs	2019		2018		 	2019		2018		
 	 	 	 	 	 	
Asset retirement obligation accretion	$	633		$	509		 	$	1,266		$	1,019		
Interest on the senior secured notes	2,278		—		 	2,278		—		
Interest on the term loan	902		—		 	902		—		
Interest on the 2012 notes	7,790		9,736		 	17,526		19,472		
Write-off of unamortized transaction costs
of 2012 notes and ARCA (note 5(b)(c))	3,559		—		 	3,559		—		
Other interest and financing costs	1,624		505		 	2,434		955		
Total finance costs	$	16,786		$	10,750		 	$	27,965		$	21,446		
Less: Capitalized interest	—		7,550		 	3,848		14,172		
 	$	16,786		$	3,200		 	$	24,117		$	7,274		

During the three months ended March 31, 2019, the Company capitalized $3,848 of interest relating to the 2012 notes in property, plant and equipment at the Lamaque mine while this operation was in the pre-commercial production phase. No interest was capitalized subsequent to March 31, 2019 following the declaration of commercial production at Lamaque mine ( note 2 b). No interest on the 2012 notes was capitalized at Skouries in the three and six months ended June 30, 2019 following this operation's transition to care and maintenance. For the three and six months ended June 30, 2018 , the Company capitalized $7,550 and $14,172 of interest, respectively at Skouries and Lamaque.

8. Share capital
Eldorado’s authorized share capital consists of an unlimited number of voting common shares without par value.
As at June 30, 2019 , there were 158,417,331 voting common shares outstanding ( December 31, 2018 – 158,293,595 ).

( 9 )

Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

9. Share-based payments
Share based payments expense consists of:

																
 	Three months ended June 30,	 	 	Six months ended June 30,	 	
 	2019		 	2018		 	2019		 	2018		
 	 	 	 	 	 	 	 	
Share options	$	786		 	$	848		 	$	1,569		 	$	1,651		
Restricted shares with no performance criteria	395		 	383		 	835		 	686		
Restricted shares with performance criteria	347		 	62		 	508		 	62		
Deferred units	384		 	999		 	1,384		 	587		
Performance shares	586		 	552		 	1,104		 	1,176		
 	$	2,498		 	$	2,844		 	$	5,400		 	$	4,162		

(a)    Share option plans
The Company’s Incentive Stock Option Plan (the “Plan”) consists of options which are subject to a 5-year maximum exercise term and settled in shares of the Company when vested and exercised. Options vest in three equal and separate tranches with the first vesting commencing one year after the date of grant and the second and third tranches vesting on the second and third anniversary of the grant date.
Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:

					
 	2019	
 	Weighted
average
exercise price
Cdn$		Number of
options		
At January 1,	22.56		5,591,228		
Granted	5.68		2,234,315		
Exercised	6.20		(3,859	)	
Expired	39.20		(677,322	)	
Forfeited	23.09		(1,086,085	)	
At June 30,	14.38		6,058,277		

As at June 30, 2019 , a total of 3,457,453 options ( December 31, 2018 – 3,928,361 ) were available to grant under the Plan.
As at June 30, 2019 , 3,014,457 share purchase options ( June 30, 2018 – 3,639,192 ) with a weighted average exercise price of Cdn $21.79 ( June 30, 2018 – Cdn$ 28.30 ) had vested and were exercisable.

( 10 )

Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

9. Share-based payments (continued)
(b)    Restricted share unit plan
The Company has a Restricted Share Unit Plan (“RSU” plan) whereby restricted share units may be granted to senior management of the Company. The current maximum number of common shares authorized for issue under the RSU plan is 5,000,000 . As at June 30, 2019 , 388,250 common shares purchased by the Company remain held in trust in connection with this plan and have been included in treasury stock within equity on the consolidated statement of financial position.
Currently, the Company has two types of RSUs:
i. RSU with no performance criteria
These RSUs are exercisable into one common share once vested, entitling the holder to receive the common share for no additional consideration. They vest as follows: one third on the first anniversary of the grant date, one third on the second anniversary of the grant date and one third on the third anniversary of the grant date. RSUs with no performance criteria terminate on the third anniversary of the grant date. All vested RSUs which have not been redeemed by the date of termination are automatically redeemed. Such RSUs may be redeemed by the holder in shares or cash, with cash redemptions subject to the approval of the Board. 
A total of 391,092 RSUs with no performance criteria with an average grant-date fair value of Cdn $5.68 per unit were granted during the six months ended June 30, 2019 under this plan. The fair value of each RSU issued is determined as the closing share price at grant date.
A summary of the status of the RSUs with no performance criteria and changes during the six months ended June 30, 2019 and 2018 is as follows:

					
 	2019		2018		
At January 1,	333,119		341,198		
Granted	391,092		210,990		
Redeemed	(119,893	)	(181,491	)	
Forfeited	(17,766	)	(30,543	)	
At June 30,	586,552		340,154		

As at June 30, 2019 , 13,434 restricted share units are fully vested and exercisable ( December 31, 2018 – 29,371 ).
ii. RSU with performance criteria
RSUs with performance criteria vest on the third anniversary of the grant date, subject to achievement of pre-determined performance criteria. When fully vested, the number of RSUs redeemed will range from 0% to 200% of the target award, subject to the performance of the share price over the 3 year period.
A total of 412,473 RSUs with performance criteria were granted under this plan during the six months ended June 30, 2019 with an average grant date fair value of Cdn $5.68 per unit. The fair value of each RSU issued is determined as the closing share price at grant date.
A summary of the status of the RSUs with performance criteria and changes during the six months ended June 30, 2019 and 2018 is as follows:

					
 	2019		2018		
At January 1,	152,927		—		
Granted	412,473		167,976		
Redeemed	—		—		
Forfeited	(38,695	)	—		
At June 30,	526,705		167,976		

( 11 )

Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

9. Share-based payments (continued)
(c)    Deferred unit plan
The Company has an Independent Directors Deferred Unit Plan (“DU Plan”) under which DU’s are granted by the Board from time to time to independent directors (“the Participants”). DUs may be redeemed only on retirement of the independent director from the Board (the “Termination Date”) by providing the redemption notice (“Redemption Notice”) to the Company specifying the redemption date which shall be no later than December 15 of the first calendar year commencing after the calendar year in which the Termination Date occurred (the “Redemption Date”). Fifteen ( 15 ) trading days after the Redemption Date but no later than December 31 of the first calendar year commencing after the calendar year in which the Termination Date occurred, the Participant shall have the right to receive, and shall receive, with respect to all DUs held at the Redemption Date a cash payment equal to the market value of such DUs as of the Redemption Date.
At June 30, 2019 , 370,208 DUs were outstanding ( December 31, 2018 – 234,125 ) with a fair value of $2,153 , which is included in accounts payable and accrued liabilities ( December 31, 2018 – $686 ). The fair value was determined based on the closing share price at June 30, 2019.
(d)    Performance share unit plan
The Company has a Performance Share Unit Plan (the “PSU” Plan) whereby PSUs may be granted to senior management of the Company at the discretion of the Board of Directors. Under the plan, PSUs cliff vest on the third anniversary of the grant date (the “Redemption Date”) and are subject to terms and conditions including the achievement of predetermined performance criteria (the “Performance Criteria”). When fully vested the number of PSUs redeemed will range from 0% to 200% of the target award, subject to the achievement of the Performance Criteria. Once vested, at the option of the Company, PSU’s are redeemable in cash equal to the market value of the vested PSUs as of the Redemption Date, by issuance of common shares of the Company equal to the number of vested PSUs, or a combination of cash and issuance of common shares equal to the market value of the vested PSUs.
A total of 264,083 PSUs were granted during the six months ended June 30, 2019 under the PSU Plan. The current maximum number of common shares authorized for issuance from treasury under the PSU Plan is 626,000.
Movements in the PSUs during the six months ended June 30, 2019 and 2018 are as follows:

					
 	2019		2018		
At January 1,	484,899		381,293		
Granted	264,083		254,000		
Expired	(133,043	)	(118,605	)	
Forfeited	—		(39,311	)	
At June 30,	615,939		477,377		

( 12 )

Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

10. Supplementary cash flow information

														
 	Three months ended June 30,	 	 	Six months ended June 30,	 	
 	2019		2018		 	2019		2018		
Changes in non-cash working capital	 	 	 	 	 	
Accounts receivable and other	$	(10,394	)	$	(3,763	)	 	$	4,787		$	(5,891	)	
Inventories	9,629		25,664		 	5,378		14,709		
Accounts payable and accrued liabilities	14,288		(4,731	)	 	(5,398	)	(18,730	)	
Total	$	13,523		$	17,170		 	$	4,767		$	(9,912	)	

11. Commitments
As at June 30, 2019 :

																
 	Within 1 year		2 to 3 years		4 to 5 years		Over 5 years		Total		
 	 	 	 	 	 	
Debt	$	33,333		$	133,333		$	333,334		$	—		$	500,000		
Purchase obligations	32,936		1,318		273		—		34,527		
Leases	10,304		16,939		3,402		1,039		31,684		
Mineral properties	5,879		11,971		11,948		20,546		50,344		
Totals	$	82,452		$	163,561		$	348,957		$	21,585		$	616,555		

Debt obligations represent required repayments of principal for the senior secured notes and term loan. Purchase obligations relate primarily to mine development expenditures at Olympias and mine operating costs at Kisladag. Upon adoption of IFRS 16, leases for various assets including equipment, offices and properties that had previously been classified as operating or financing leases under IAS 17 have been combined into a single classification line above. Mineral properties refer to arrangements for the use of land that grant the Company the right to explore, develop, produce or otherwise use the mineral resource contained in that land. The table does not include interest on debt.

( 13 )

Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

12. Financial instruments by category
Fair values are determined directly by reference to published price quotations in an active market, when available, or by using a valuation technique that uses inputs observed from relevant markets.
The three levels of the fair value hierarchy are described below:
		
•	Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.	
		
•	Level 2 – Inputs that are observable, either directly or indirectly, but do not qualify as Level 1 inputs (i.e., quoted prices for similar assets or liabilities).	
		
•	Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).	
Assets measured at fair value as at June 30, 2019 include marketable securities of $3,735 (December 31, 2018 – $2,572 ), comprised of publicly-traded equity investments classified as fair value through other comprehensive income, settlement receivables of $16,673 (December 31, 2018 – $5,243) arising from provisional pricing in contracts for the sale of metals in concentrate classified as fair value through profit and loss, and a derivative asset of $1,373 related to redemption options associated with the senior secured notes classified as fair value through profit and loss. Changes in the fair value of settlement receivables are recorded in revenue. No liabilities are measured at fair value on a recurring basis as at June 30, 2019 .
The fair value of financial instruments traded in active markets is based on quoted market prices at the date of the statement of financial position. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by the group is the current bid price. The Company's marketable securities are included in Level 1. Instruments included in Level 2 comprise settlement receivables, the derivative asset and the fair market value of the Company's senior secured notes ( note 5(a) ). The fair value of settlement receivables is determined based on forward metal prices for the quotational period; the fair value of the Company’s derivative asset is based on models using observable interest rate inputs and the fair value of the Company’s senior secured notes is based on observable prices in inactive markets. For all other financial instruments, carrying amounts approximate fair value.

13. Disposal group held for sale
In June 2019, management committed to a plan to sell its Vila Nova iron ore mine in Brazil, which was placed on care and maintenance in late 2014 pending a recovery in iron ore prices. Accordingly, the mine is presented as a disposal group held for sale. Efforts to sell the disposal group are underway and a sale is expected by the end of 2019.
As at June 30, 2019 , the disposal group was stated at fair value less costs to sell and comprised the following assets and liabilities.

					
 	 	June 30, 2019		
Cash	 	$	724		
Accounts receivable and other	 	956		
Property, plant and equipment and iron ore inventory	 	11,690		
Assets held for sale	 	$	13,370		
 	 	 	
Accounts payable and accrued liabilities	 	$	302		
Asset retirement obligations	 	4,068		
Liabilities associated with assets held for sale	 	$	4,370		

( 14 )

Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

13. Disposal group held for sale (continued)
Impairment charges of $34,443 were applied to Vila Nova property, plant and equipment and iron ore inventory in 2015, reducing the carrying value to $nil. As a result of the plan to sell Vila Nova, the Company recorded an impairment reversal of $ 11,690 in June 2019 to record the property, plant and equipment and iron ore inventory at its estimated fair value. The non-recurring fair value measurement for the disposal group of $9,000 has been categorized as a Level 3 fair value based on the expected consideration of a sale.

14. Segment information
Identification of reportable segments
The Company has identified its operating segments based on the internal reports that are reviewed and used by the chief executive officer and the executive management (the chief operating decision makers or CODM) in assessing performance and in determining the allocation of resources.
The CODM consider the business from both a geographic and product perspective and assess the performance of the operating segments based on measures of profit and loss as well as assets and liabilities. These measures include operating profit, expenditures on exploration, property, plant and equipment and non-current assets, as well as total debt. As at June 30, 2019 , Eldorado had six reportable segments based on the geographical location of mining and exploration and development activities.
Geographical segments
Geographically, the operating segments are identified by country and by operating mine or mine under construction. The Turkey reporting segment includes the Kişladağ and the Efemçukuru mines and exploration activities in Turkey. The Canada reporting segment includes the Lamaque mine and exploration activities in Canada. The Greece reporting segment includes the Stratoni and Olympias mines, the Skouries, Perama Hill and Sapes projects and exploration activities in Greece. The Romania reporting segment includes the Certej project and exploration activities in Romania. The Brazil reporting segment includes the Vila Nova mine, Tocantinzinho project and exploration activities in Brazil. Other reporting segment includes operations of Eldorado’s corporate office and exploration activities in other countries.
Financial information about each of these operating segments is reported to the CODM on a monthly basis. The mines in each of the different reporting segments share similar economic characteristics and have been aggregated accordingly.

( 15 )

Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

14. Segment information (continued)

																						
For the three months ended June 30, 2019	Turkey		Canada		Greece		Romania		Brazil		Other		Total		
 	 	 	 	 	 	 	 	
Earnings and loss information	 	 	 	 	 	 	 	
Revenue	$	100,701		$	32,518		$	40,459		$	—		$	—		$	—		$	173,678		
Production costs	43,150		13,548		44,198		—		—		—		100,896		
Depreciation	21,036		10,427		9,424		—		—		301		41,188		
Earnings (loss) from mine operations	$	36,515		$	8,543		$	(13,163	)	$	—		$	—		$	(301	)	$	31,594		
 	 	 	 	 	 	 	 	
Other significant items of income and expense	 	 	 	 	 	 	 	
Reversal of impairment (note 13)	$	—		$	—		$	—		$	—		$	11,690		$	—		$	11,690		
Write-down of assets	410		—		—		—		—		—		410		
Exploration and evaluation expense	608		579		—		1,060		117		165		2,529		
Income tax expense (recovery)	10,244		1,136		(1,487	)	(1,555	)	(328	)	—		8,010		
 	 	 	 	 	 	 	 	
Capital expenditure information	 	 	 	 	 	 	 	
Additions to property, plant and equipment during the period (*)	$	8,890		$	24,728		$	8,291		$	6		$	827		$	2		$	42,744		
* Presented on an accrual basis; Excludes right-of-use assets of $9,379 recognized upon the adoption of IFRS 16 on January 1, 2019 (note 3).

	
																						
For the three months ended June 30, 2018	Turkey		Canada		Greece		Romania		Brazil		Other		Total		
 	$		$		$		$		$		$		$		
Earnings and loss information	 	 	 	 	 	 	 	
Revenue	$	104,500		$	—		$	48,671		$	—		$	—		$	—		$	153,171		
Production costs	52,191		—		33,653		—		—		—		85,844		
Depreciation	23,368		—		10,992		—		—		122		34,482		
Earnings (loss) from mine operations	$	28,941		$	—		$	4,026		$	—		$	—		$	(122	)	$	32,845		
 	 	 	 	 	 	 	 	
Other significant items of income and expense	 	 	 	 	 	 	 	
Write-down of assets	$	390		$	—		$	2,999		$	1,094		$	—		$	—		$	4,483		
Exploration and evaluation expense	329		1,007		1,465		3,219		378		451		6,849		
Income tax expense (recovery)	19,982		(1,718	)	(1,601	)	1,079		3,837		—		21,579		
 	 	 	 	 	 	 	 	
Capital expenditure information	 	 	 	 	 	 	 	
Additions to property, plant and equipment during the period (*)	$	14,166		$	28,721		$	26,268		$	2,034		$	2,046		$	377		$	73,612		
Capitalized interest (note 7(b))	—		1,465		6,085		—		—		—		7,550		
* Presented on an accrual basis.

( 16 )

Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

14. Segment information (continued)

																						
For the six months ended June 30, 2019	Turkey		Canada		Greece		Romania		Brazil		Other		Total		
 	 	 	 	 	 	 	 	
Earnings and loss information	 	 	 	 	 	 	 	
Revenue	$	144,170		$	32,518		$	77,014		$	—		$	—		$	—		$	253,702		
Production costs	63,152		13,548		76,117		—		—		—		152,817		
Depreciation (note 4)	27,291		10,427		22,778		—		—		634		61,130		
Earnings (loss) from mine operations	$	53,727		$	8,543		$	(21,881	)	$	—		$	—		$	(634	)	$	39,755		
 	 	 	 	 	 	 	 	
Other significant items of income and expense	 	 	 	 	 	 	 	
Reversal of impairment (note 13)	$	—		$	—		$	—		$	—		$	11,690		$	—		$	11,690		
Write-down of assets	427		—		—		—		—		—		427		
Exploration and evaluation expense	905		583		2,852		2,471		228		855		7,894		
Income tax expense (recovery)	18,505		(364	)	(3,119	)	(698	)	(282	)	—		14,042		
 	 	 	 	 	 	 	 	
Capital expenditure information	 	 	 	 	 	 	 	
Additions to property, plant and equipment during the period   (*)	$	20,605		$	42,580		$	14,382		$	8		$	1,631		$	7		$	79,213		
Capitalized interest (note 7(b))	—		3,848		—		—		—		—		3,848		
 	 	 	 	 	 	 	 	
Information about assets and liabilities	 	 	 	 	 	 	 	
Property, plant and equipment	$	711,365		$	599,843		$	2,064,692		$	415,613		$	203,027		$	4,805		$	3,999,345		
Goodwill	—		92,591		—		—		—		—		92,591		
 	$	711,365		$	692,434		$	2,064,692		$	415,613		$	203,027		$	4,805		$	4,091,936		
 	 	 	 	 	 	 	 	
Debt	$	—		$	—		$	—		$	—		$	—		$	482,461		$	482,461		
* Presented on an accrual basis; Excludes right-of-use assets of $9,379 recognized upon the adoption of IFRS 16 on January 1, 2019 (note 3).

( 17 )

Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and six months ended June 30, 2019 and 2018
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

14. Segment information (continued)

																						
For the six months ended June 30, 2018	Turkey		Canada		Greece		Romania		Brazil		Other		Total		
 	 	 	 	 	 	 	 	
Earnings and loss information	 	 	 	 	 	 	 	
Revenue	$	213,510		$	—		$	71,566		$	—		$	—		$	—		$	285,076		
Production costs	100,932		—		52,147		—		—		—		153,079		
Depreciation	47,103		—		16,362		—		—		205		63,670		
Earnings (loss) from mine operations	$	65,475		$	—		$	3,057		$	—		$	—		$	(205	)	$	68,327		
 	 	 	 	 	 	 	 	
Other significant items of income and expense	 	 	 	 	 	 	 	
Write-down of assets	$	849		$	—		$	4,875		$	2,783		$	—		$	—		$	8,507		
Exploration and evaluation expense	619		1,007		3,196		4,108		1,137		930		10,997		
Income tax expense (recovery)	32,413		(3,479	)	(2,964	)	(1,036	)	3,729		—		28,663		
 	 	 	 	 	 	 	 	
Capital expenditure information	 	 	 	 	 	 	 	
Additions to property, plant and equipment during the period (*)	$	26,749		$	50,863		$	54,982		$	4,521		$	3,719		$	772		$	141,606		
Capitalized interest (note 7(b))	—		2,245		11,927		—		—		—		14,172		
* Presented on an accrual basis.

	
																						
For the year ended December 31, 2018	Turkey		Canada		Greece		Romania		Brazil		Other		Total		
 	 	 	 	 	 	 	 	
Information about assets and liabilities	 	 	 	 	 	 	 	
Property, plant and equipment	$	721,449		$	582,895		$	2,063,798		$	416,197		$	203,075		$	1,062		$	3,988,476		
Goodwill	—		92,591		—		—		—		—		92,591		
 	$	721,449		$	675,486		$	2,063,798		$	416,197		$	203,075		$	1,062		$	4,081,067		
 	 	 	 	 	 	 	 	
Debt	$	—		$	—		$	—		$	—		$	—		$	595,977		$	595,977		

( 18 )

Exhibit 99.2

	
	
Management’s Discussion and Analysis	
 	
For the three and six months ended June 30, 2019 and 2018	

	

 	 	Suite 1188, 550 Burrard Street	
 	 	Vancouver, British Columbia	
 	 	V6C 2B5	
 	 	 	
 	 	Phone: (604) 687 - 4018	
 	 	Fax: (604) 687 - 4026	

      

	
			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Management’s Discussion and Analysis
This Management’s Discussion and Analysis (“MD&A”) dated August 1, 2019 for Eldorado Gold Corporation contains information that management believes is relevant for an assessment and understanding of the Company’s consolidated financial position and the results of its consolidated operations as at and for the three and six months ended June 30, 2019 . The MD&A should be read in conjunction with the unaudited Condensed Consolidated Interim Financial Statements for the three and six months ended June 30, 2019 and 2018 , which were prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board ("IASB"). In addition, this MD&A should be read in conjunction with both the annual audited consolidated financial statements for the years ended December 31, 2018 and 2017 and the related annual MD&A.
Throughout this MD&A, Eldorado , we, us, our and the Company means Eldorado Gold Corporation. This quarter means the second quarter of 2019 .

Forward Looking Statements and Information
This MD&A contains forward-looking statements and information and should be read in conjunction with the risk factors described in the “Managing Risk” and “Forward Looking Statements and Information” sections of this MD&A. Additional information including this MD&A, the audited Consolidated Financial Statements for the years ended December 31, 2018 and 2017 , the Company’s Annual Information Form for the year ended December 31, 2018 , and press releases have been filed electronically through the System for Electronic Document Analysis and Retrieval (“SEDAR”), the Electronic Data Gathering, Analysis and Retrieval system ("EDGAR"), and are available online under the Eldorado profile at www.sedar.com, www.sec.gov/edgar and on the Company’s website (www.eldoradogold.com).

Non-IFRS Measures
Certain non-IFRS measures are included in this MD&A, 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, earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, and cash flow from operations before changes in non-cash working capital. In the gold mining industry, these are common performance measures but may not be comparable to similar measures presented by other issuers. The Company believes that these measures, in addition to information prepared in accordance with IFRS, provide investors with useful information to assist in their evaluation of the Company’s performance and ability to generate cash flow from its operations. Accordingly, it is 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. For further information, refer to the “Non-IFRS Measures” section of this MD&A.
The following additional abbreviations may be used throughout this MD&A: General and Administrative Expenses ("G&A"); Property, Plant and Equipment ("PPE"); Gold ("Au"); Ounces ("oz"); Grams per Tonne ("g/t"); Million Tonnes ("Mt"); Tonnes ("t"); Kilometre ("km"); Metres ("m"); Tonnes per Day ("tpd"); Kilo Tonnes ("kt"); Percentage ("%"); Cash Generating Unit ("CGU"); Depreciation, Depletion and Amortization ("DDA"); and Life of Mine ("LOM").

Reporting Currency and Tabular Amounts
All amounts are presented in U.S. dollars ("$") unless otherwise stated. Unless otherwise specified, all tabular amounts are expressed in millions of U.S. dollars, except share, per share or per ounce amounts. Due to rounding, numbers presented throughout this MD&A may not add precisely to the totals provided.

	
			
 	 	2	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Table of Contents

		
Section	Page	
 	 	
About Eldorado	4	
 	 	
Second Quarter and Subsequent Period 2019 Highlights	5	
 	 	
Review of Financial Results	6	
 	 	
Operations Update	10	
 	 	
Development Projects	16	
 	 	
Exploration and Evaluation	16	
 	 	
Non-IFRS Measures	17	
 	 	
Quarterly Results	25	
 	 	
Financial Condition and Liquidity	25	
 	 	
Outstanding Share Information	28	
 	 	
Managing Risk	29	
 	 	
Accounting Matters	30	
 	 	
Internal Controls over Financial Reporting	33	
 	 	
Qualified Person	34	
 	 	
Forward-Looking Statements and Information	34	
 	 	
Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated and Inferred Resources	35	
 	 	
Corporate Information	36	

	
			
 	 	3	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

About Eldorado
Eldorado Gold is a Canadian gold and base metals producer with over 25 years of experience in discovering, building and operating mines in Europe, Asia and the Americas. Dual-listed on the Toronto (TSX: ELD) and New York (NYSE: EGO) stock exchanges, the Company is focused on creating value for its stakeholders at each stage of the mining process.
Eldorado’s operations are global and the Company has assets in Turkey, Canada, Greece, Romania, Serbia and Brazil. The Company operates five mines: Kisladag and Efemcukuru located in western Turkey, Lamaque in Canada, and Olympias and Stratoni located in northern Greece. Kisladag, Efemcukuru and Lamaque are wholly-owned gold mines, while 95% owned Olympias and Stratoni are polymetallic operations. Olympias produces three concentrates bearing lead-silver, zinc and gold. Stratoni produces two concentrates bearing lead-silver and zinc.
Complementing Eldorado’s producing portfolio is the Company’s advanced stage development project, the Skouries (95% ownership) gold-copper project in northern Greece. Skouries is currently on care and maintenance pending receipt of permits required to advance the project.
Other development projects in Eldorado’s portfolio include:

•	Perama Hill (100%), gold-silver, Greece;	
		
•	Certej (80.5%), gold, Romania; and	
		
•	Tocantinzinho (100%), gold, Brazil.	
The Company’s operating mines and development projects provide excellent opportunities for reserve growth through near-mine exploration, with programs at Lamaque, Efemcukuru, Olympias and Stratoni in 2019. Eldorado also conducts early-stage exploration programs in highly-prospective regions to provide low cost growth through discovery.
Eldorado’s strategy is to focus on jurisdictions that offer the potential for long-term growth and access to high-quality assets. Fundamental to executing on this strategy is the strength of the Company’s in-country teams and stakeholder relationships. The Company has a highly skilled and dedicated workforce of over 4,500 people worldwide, with the majority of employees and management being nationals of the country of operation.
Through discovering and acquiring high-quality assets, developing and operating world-class mines, growing resources and reserves, responsibly managing impacts and building opportunities for local communities, Eldorado strives to deliver value for all its stakeholders.

	
			
 	 	4	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Second Quarter 2019 and Subsequent Period Highlights (1)  

•	Steady Q2 gold production and reiterating 2019 annual guidance: Gold production for the quarter totalled 91,803 ounces with 174,780 ounces produced year-to-date. Gold production included 33,140 ounces from Lamaque in its first quarter of commercial operations, of which 5,057 ounces were produced from stockpiles mined during the pre-commercial production period.	

•	Higher sales volumes in the quarter resulted in revenue of $173.7 million: Total gold sales for the second quarter were 113,685 ounces with 156,759 ounces sold year-to-date. Second quarter sales do not include sales of the remaining 11,705 ounces that were mined at Lamaque during the pre-commercial production period. Net proceeds of $7.6 million were realized in the quarter from these pre-commercial production sales.	

•	Net earnings per share: Net earnings to shareholders in the quarter totalled $12.2 million, or $0.08 per share. Adjusted net loss was $1.2 million, or $0.01 loss per share, after removing, among other things, the impact of one-time asset sales.	

•	EBITDA : Higher sales volumes in the quarter resulted in earnings before interest, taxes and depreciation and amortization ("EBITDA") of $ 74.5 million. Adjusted EBITDA of $ 66.8  million excludes the impact of one-time asset sales but includes net proceeds from pre-commercial production at Lamaque.	

•	Refinancing completed: The Company completed its offering of $300 million aggregate principal amount of 9.5% senior second lien notes due 2024 (the "Notes") and its $450 million amended and restated senior secured credit facility (the "Facility"). Eldorado used the net proceeds from the sale of the Notes and $200 million in term loan proceeds drawn under the Facility, together with $100 million cash on hand, to redeem its outstanding $600 million 6.125% senior notes due December 2020.	

•	Liquidity remains solid: The Company finished the quarter with approximately $300 million of available cash including $119.9 million in cash, cash equivalents and term deposits and approximately $179 million available under its $250 million line of credit, with $71 million of capacity on the line of credit allocated to secure certain obligations in connection with its operations.	

•	All-in sustaining costs lower due to increased sales volumes: All-in sustaining costs were $917 per ounce of gold sold in the quarter compared to $934 per ounce sold during the second quarter of 2018.	

•	Divestiture of non-core assets: The Company completed a sale of a net smelter royalty interest held on a property in Turkey for consideration of $8.1 million, of which $5.0 million will be settled through the transfer of an exploration license and the balance to be paid in cash. Subsequent to the quarter, the Company also executed a share purchase agreement for the sale of its Vila Nova iron ore mine for consideration of $9 million in cash, subject to the purchaser securing financing and other standard closing conditions.	

•	Net earnings per share: Net earnings to shareholders in the quarter totalled $12.2 million, or $0.08 per share. Adjusted net loss was $1.2 million, or $0.01 loss per share, after removing, among other things, a gain on the sale of the net smelter royalty interest and the reversal of impairment relating to Vila Nova.	

	
		
(1) Throughout this MD&A we use cash operating costs, cash operating costs per ounce sold, total cash costs, total cash costs per ounce sold, adjusted net earnings/(loss), adjusted net earnings (loss) per share, average realized gold price per ounce sold, earnings before interest, taxes and depreciation and amortization, adjusted earnings before interest, taxes and depreciation and amortization, working capital, cash flow from operations before changes in non-cash working capital and sustaining capital as additional measures of Company performance. These are non-IFRS measures. Please see the section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS measures.	5	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Review of Financial Results

														
 	3 months ended June 30,	 	 	6 months ended June 30,	 	
 	2019		2018		 	2019  		2018		
Revenue (1,3)		$173.7			$153.2		 		$253.7			$285.1		
Gold revenue (1,3)		$150.1			$121.3		 		$203.9			$236.8		
Gold produced (oz) (2)	91,803		99,105		 	174,780		188,479		
Gold sold (oz) (1,3)	113,685		94,224		 	156,759		180,811		
Average realized gold price ($/oz sold) (7)		$1,321			$1,287		 		$1,301			$1,310		
Cash operating costs ($/oz sold) (4,7)	631		587		 	629		579		
Total cash costs ($/oz sold) (4,7)	670		610		 	665		604		
All-in sustaining costs ($/oz sold) (4,7)	917		934		 	977		887		
Net earnings (loss) for the period (5,6)	12.2		(24.4	)	 	(14.8	)	(15.7	)	
Net earnings (loss) per share – basic ($/share) (5)	0.08		(0.15	)	 	(0.09	)	(0.10	)	
Adjusted net earnings (loss) (5,6,7)	(1.2	)	(1.8	)	 	(19.2	)	12.4		
Adjusted net earnings (loss) per share ($/share) (5,6,7)	(0.01	)	(0.01	)	 	(0.12	)	0.08		
Cash flow from operating activities before changes in working capital (7,8)	37.5		26.3		 	45.6		69.7		
Cash, cash equivalents and term deposits		$119.9			$429.8		 		$119.9			$429.8		

(1)	Revenue and ounces sold were impacted by delayed shipments at Efemcukuru in Q1 2019 that were completed in Q2 2019. This timing issue resulted in lower ounces sold in Q1 2019 and higher ounces sold in Q2 2019. Q2 2019 sales also included approximately 8,000 ounces sold from Olympias that were produced in 2018.	
		
(2)	Includes pre-commercial production at Lamaque and Olympias (Q1 2018).	
		
(3)	Excludes sales of inventory mined at Lamaque and Olympias (Q1 2018) during the pre-commercial production period.	
		
(4)	By-product revenues are off-set against cash operating costs.	
		
(5)	Attributable to shareholders of the Company.	
		
(6)	See reconciliation of net earnings (loss) to adjusted net earnings (loss) on p. 23.	
		
(7)	These measures are non-IFRS measures. See the section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS measures.	
		
(8)	2018 amounts have been adjusted to reflect reclassifications in cash flow from operating activities in the current periods.	

	
			
 	 	6	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

REVIEW OF FINANCIAL AND OPERATING PERFORMANCE
Production, Sales and Revenue
In Q2 2019 the Company produced 91,803 ounces of gold (including 5,057 ounces of pre-commercial production at Lamaque), compared to Q2 2018 production of 99,105 ounces.
		
•	Kisladag produced 26,072 ounces during the quarter, a decrease of 53% from Q2 2018 production of 55,930 ounces, due to the suspension of new ore placement on the leach pad from April 2018 through March 2019.	
		
•	Efemcukuru produced 25,667 ounces during the quarter, an increase of 6% from Q2 2018 production of 24,146 ounces, primarily a result of higher grades.	
		
•	Olympias produced 6,924 ounces during the quarter, a decrease of 56% from Q2 2018 production of 15,895 ounces, as a result of reduced tonnage fed to the processing plant. This was a result of limited headings underground due to slower than anticipated capital development and a backlog of stopes to be filled.	
		
•	Lamaque had a strong first quarter of commercial operations with production of 33,140 ounces, including 5,057 ounces from inventory mined during the pre-commercial production period.	
The Company continues to forecast full-year consolidated production within the previously published range of 390,000-420,000 ounces of gold at all-in-sustaining costs of $900-1000 per ounce of gold sold.
Gold sales from commercial operations in Q2 2019 totalled 113,685 ounces, compared with 94,224 ounces in Q2 2018. The 21% higher sales volumes compared with the prior year's quarter included the sale of 48,821 ounces from Efemcukuru, where concentrate shipments had been delayed in Q1 2019 as a result of a contract dispute with a customer and shipping delays due to inclement weather at the loading port at the end of the first quarter. This timing issue resulted in lower ounces sold in Q1 2019 and higher ounces sold in Q2 2019. Q2 2019 sales also included 24,330 ounces from Lamaque in its first quarter of commercial operations and does not include sales of the remaining 11,705 ounces that were mined during the pre-commercial production period. These increases were partially offset by decreased sales from Kisladag of 26,072 ounces owing to lower production due to the suspension of mining and stacking of ore on the leach pad from April 2018 through March 2019, and to a lesser extent, a decrease at Olympias where sales totalled 14,462 ounces as accumulated concentrate inventory was sold. Concentrate inventory at both Efemcukuru and Olympias were at normal levels at the end of the quarter.
The average realized gold price in Q2 2019 was $1,321 per ounce, 3% higher than the average realized gold price of $1,287 per ounce in Q2 2018 and reflecting an increase in gold price toward the end of the quarter. Total revenue was $173.7 million in Q2 2019 compared to $153.2 million in Q2 2018, as a result of the higher gold sales volumes and a higher average realized gold price.
Total revenue was $253.7 million in the six months ended June 30, 2019, a decrease of 11% from total revenue of $285.1 million in the six months ended June 30, 2018. The decrease was primarily due to lower production from Kisladag due to the suspension of mining and stacking of ore on the leach pads from April 2018 through March 2019.
Unit Cost Performance
Cash operating costs in Q2 2019 averaged $631 per ounce sold, an increase from $587 per ounce sold in Q2 2018, primarily reflecting the impact of low production levels at Olympias in the quarter and higher selling costs for Efemcukuru concentrate.
Cash operating costs averaged $665 per ounce sold in the six months ended June 30, 2019, an increase from $604 in the six months ended June 30, 2018. The increase is primarily due to higher production costs combined with reduced production levels at Olympias in the first half of 2019, and higher selling costs for Efemcukuru concentrate in Q2 2019.
AISC per ounce sold averaged $917 in Q2 2019, compared with $934 in Q2 2018, reflecting higher sales volumes, and partially offset by higher sustaining capital expenditures in the quarter compared to the prior year. Sustaining capital expenditures at gold operations totalled $15.6 million ( $137 per ounce sold) in Q2 2019, compared to $13.8 million ( $146 per ounce sold) in Q2 2018, primarily due to the inclusion of of sustaining capital expenditures at Lamaque, and partially offset by decreases in sustaining capital expenditure at other operations.

	
			
 	 	7	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

AISC per ounce sold averaged $977 in the six months ended June 30, 2019, a increase from $887 in the six months ended June 30, 2018. The increase was primarily due to the increase in cash operating costs per ounce sold, and partially offset by a slight net decrease in other sustaining costs.
Other Expenses
Exploration and evaluation expenses decreased to $2.5 million in Q2 2019 from $6.8 million in Q2 2018 and to $7.9 million in the six months ended June 30, 2019 from $11.0 million in the six months ended June 30, 2018. The decrease in both periods was due to a continued focus on brownfield resource expansion at the Company's mining operations and development projects, leading to a greater amount of expenditures being capitalized in Q2 2019, rather than expensed.
Mine standby costs of $3.5 million related to Skouries, Perama Hill and Vila Nova were incurred during the quarter and reflected a decrease from $4.3 million in Q2 2018. The decrease was due to the transition of Kisladag mining and crushing operations to care and maintenance from mid-April 2018 through March 2019. A portion of costs related to Kisladag were included in mine standby costs during the period that mining and crushing activities were suspended. Mine standby costs were $11.4 million in the six months ended June 30, 2019 reflecting an increase from $7.0 million in the six months ended June 30, 2018. The increase was primarily due to higher Kisladag standby costs in Q1 2019 as the mine was preparing to recommence operations in April 2019.
G&A expenses decreased to $8.1 million in Q2 2019 from $14.0 million in Q2 2018 and to $15.3 million in the six months ended June 30, 2019 from $22.2 million in the six months ended June 30, 2018. The decrease in both periods reflects the allocation beginning in 2019 of in-country office G&A expenses related to supporting the operations to production costs.
Other income totalled $8.7 million in Q2 2019, compared with $3.6 million in Q2 2018, and includes a gain of $8.1 million from the sale in June 2019 of a net smelter royalty held on a property in Turkey. $1.6 million of the consideration was received in cash in the quarter with an additional $1.5 million to be received in cash in late 2019. The remaining $5.0 million of consideration will be settled through the transfer of an exploration license for a property in Turkey, expected to be concluded in late 2019. In the six months ended June 30, 2019, other income totalled $10.3 million, an increase from $7.6 million in the six months ended June 30, 2018. The increase was primarily due to the net smelter royalty sale, partially offset by lower interest income in line with lower cash balances in the first half of 2019.
Finance costs in Q2 2019 totalled $16.8 million, compared with $3.2 million in Q2 2018, primarily due to interest no longer being capitalized in the quarter following the commencement of commercial operations at Lamaque in April 2019 and the transfer of Skouries to care and maintenance at the end of 2018. In Q2 2018, $7.6 million of interest was capitalized at Skouries and Lamaque. Finance costs in Q2 2019 also included $3.6 million from the write-off of remaining unamortized transaction costs related to the debt that was redeemed in the quarter. Finance costs in the six months ended June 30, 2019 totalled $24.1 million, an increase from $7.3 million in the six months ended June 30, 2018. The increase was primarily due to $14.2 million of interest capitalized in the prior year relating to Skouries and Lamaque compared with $3.8 million in Q1 2019 relating to Lamaque.
In Q2 2019, tax expense was $8.0 million, relating primarily to current income taxes of $9.4 million for operations in Turkey, partially offset by net recoveries in deferred income tax. In the six months ended June 30, 2019, tax expense was $14.0 million, relating primarily to current income taxes of $14.8 million for operations in Turkey, partially offset by net recoveries in deferred income tax.

	
			
 	 	8	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Net Earnings to Shareholders
The Company reported net earnings to shareholders in Q2 2019 of $12.2 million, ( $0.08 per share) compared to a net loss of $24.4 million ( $0.15 loss per share) in Q2 2018. The improvement was primarily a result of higher sales volumes and lower income tax expense in Q2 2019, partially offset by an increase in finance costs. Net earnings in Q2 2019 also included an $11.7 million partial reversal of impairment relating to property, plant and equipment and iron ore inventory at the Vila Nova mine, currently on care and maintenance. The impairment reversal was recorded as a result of a plan to sell Vila Nova and reflects the fair value of these assets based on the expected sale consideration. Net loss attributable to shareholders in the six months ended June 30, 2019 totalled $14.8 million compared to $15.7 million in the six months ended June 30, 2018. The year-to-date net loss is primarily attributable to lower sales in the first half of 2019 as compared to the prior year, mainly as a result of lower production from Kisladag due to the suspension of mining and stacking of ore on the leach pad from April 2018 through March 2019.
In Q2 2019, the adjusted net loss was $1.2 million ( $0.01 loss per share), compared to adjusted net loss of $1.8 million ( $0.01 loss per share) in Q2 2018. The adjusted net loss in Q2 2019 removes, among other things, the $8.1 million gain on sale of the net smelter royalty interest, the $11.7 million reversal of impairment for Vila Nova and the $3.6 million write-off of unamortized transaction costs relating to the debt that was redeemed in the quarter. For the six months ended June 30, 2019, the adjusted net loss was $19.2 million ( $0.12 loss per share), compared to adjusted net earnings in the six months ended June 30, 2018 of $12.4 million ( $0.08 per share). The adjusted net loss on a year-to-date basis includes adjusted net losses of $17.9 million ($0.11 loss per share) in Q1 2019, primarily a reflection of lower sales due to the delayed shipments at Efemcukuru.
Cash and Cash Equivalents
Cash, cash equivalents and term deposits at June 30, 2019 totalled $119.9 million, compared to $227.5 million as at March 31, 2019 and $ 293.0 million at December 31, 2018. The decrease in cash in the three and six months ended June 30, 2019 primarily resulted from $122.3 million used in financing activities in Q2 2019, primarily for purposes of refinancing the Company's debt.

	
			
 	 	9	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Operations Update
Gold Operations

													
 	3 months ended June 30,	 	6 months ended June 30,	 	
 	2019		2018		2019		2018		
Total	 	 	 	 	
 Ounces produced  (1)	91,803		99,105		174,780		188,479		
Ounces sold (2, 4)	113,685		94,224		156,759		180,811		
Cash operating costs ($/oz sold) (5)		$631			$587			$629			$579		
All-in sustaining costs ($/oz sold)  (5)		$917			$934			$977			$887		
Sustaining capex (5)		$15.6			$13.8			$26.4			$24.9		
Kisladag	 	 	 	 	
Ounces produced (3)	26,072		55,930		53,319		109,744		
Ounces sold	26,072		55,631		53,327		109,470		
Cash operating costs ($/oz sold) (5)		$381			$664			$471			$621		
All-in sustaining costs ($/oz sold) (5)		$471			$808			$590			$762		
Sustaining capex (5)		$1.1			$5.5			$4.2			$10.3		
Efemcukuru	 	 	 	 	
Ounces produced	25,667		24,146		51,791		47,001		
Ounces sold  (4)	48,821		23,853		54,639		50,853		
Cash operating costs ($/oz sold) (5)		$593			$515			$598			$524		
All-in sustaining costs ($/oz sold)   (5)		$774			$832			$840			$781		
Sustaining capex (5)		$5.4			$5.8			$9.0			$9.5		
Olympias	 	 	 	 	
Ounces produced  (1)	6,924		15,895		16,852		25,860		
Ounces sold (2)	14,462		14,740		24,463		20,488		
Cash operating costs ($/oz sold) (5)		$1,402			$412			$1,156			$493		
All-in sustaining costs ($/oz sold) (5)		$1,731			$715			$1,553			$897		
Sustaining capex (5)		$3.8			$2.5			$7.9			$5.1		
Lamaque	 	 	 	 	
Ounces produced  (1)	33,140		3,134		52,818		5,874		
Ounces sold (2)	24,330		n/a		24,330		n/a		
Cash operating costs ($/oz sold) (5)		$517		n/a			$517		n/a		
All-in sustaining costs ($/oz sold) (5)		$814		n/a			$814		n/a		
Sustaining capex (5)		$5.3		n/a			$5.3		n/a		

(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 three and six months ended June 30, 2019, 11,705 ounces and 27,627 ounces, respectively, 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)	Efemcukuru ounces sold were impacted by delayed shipments in Q1 2019 that were completed in Q2 2019. This timing issue resulted in lower ounces sold in Q1 2019 and higher ounces sold in Q2 2019.	
		
(5)	These measures are non-IFRS measures. See the section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS measures.	

	
			
 	 	10	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Quarterly Review – Operations
Kisladag

													
Operating Data  (1)	3 months ended June 30,	 	6 months ended June 30,	 	
 	2019		2018		2019		2018		
Tonnes placed on pad	2,680,469		358,827		2,680,469		3,206,494		
Head grade (g/t Au)	1.11		1.01		1.11		1.13		
Gold (oz)	 	 	 	 	
- Produced	26,072		55,930		53,319		109,744		
- Sold	26,072		55,631		53,327		109,470		
Cash operating costs ($/oz sold)		$381			$664			$471			$621		
All-in sustaining costs ($/oz sold)		$471			$808			$590			$762		
Financial Data	 	 	 	 	
Gold revenue		$34.3			$72.6			$69.9			$144.3		
Depreciation and depletion	6.0		15.1		9.8		28.6		
Earnings from mining operations	17.8		19.5		33.8		45.4		
Sustaining capital expenditures		$1.1			$5.5			$4.2			$10.3		
		
(1)	Suspension of ore placement on the heap leach pad from April 2018 through March 2019.	

As of April 1, 2019, mining, crushing and placing of ore on the Kisladag heap leach pad has resumed. The first area of newly-stacked ore since April 2018 was put under irrigation in April 2019 and gold production is expected to increase in the second half of 2019. Further testwork is underway to determine the effects of 250 day leach cycles on recoveries related to the deeper material in the pit, the results of which are expected to be available in early 2020. The Company expects to update long term guidance at Kisladag based on the results of this testwork.
In Q2 2019, Kisladag produced 26,072 ounces of gold from material placed on the heap leach pad prior to the April 2018 suspension of mining and stacking of ore on the leach pad. As a result, Q2 2019 production was lower than the 55,930 ounces of gold in Q2 2018, when production was benefiting from prior placements of ore. Column tests for metallurgical recoveries to date are meeting expectations.
The decrease in revenue to $34.3 million in Q2 2019 from $72.6 million in Q2 2018 was primarily a reflection of the reduced production resulting from the April 2018 suspension of new material being placed on the leach pad.
Cash operating costs per ounce sold improved to $381 in Q2 2019 from $ 664 in Q2 2018. The significant decrease was primarily due to the partial allocation of processing costs to leach pad inventory in the quarter, following the resumption of mining and stacking, whereas these costs had been allocated directly to ounces produced during the period that mining was suspended. Costs of mining, crushing and stacking activities in Q2 2019 were allocated to leach pad inventory.
AISC per ounce sold was $471 in Q2 2019, compared to $808 in Q2 2018. The decrease is a result of the lower cash costs per ounce sold combined with a decrease of sustaining capital expenditure to $ 1.1 million in Q2 2019 from $ 5.5 million in Q2 2018.

	
			
 	 	11	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Efemcukuru

													
Operating Data	3 months ended June 30,	 	6 months ended June 30,	 	
 	2019		2018		2019		2018		
Tonnes milled	125,368		126,304		252,184		250,639		
Head grade (g/t Au)	7.19		6.78		7.27		6.63		
Average recovery rate (to concentrate)	93.9	%	94.4	%	93.9	%	94.4	%	
Gold (oz)	 	 	 	 	
- Produced	25,667		24,146		51,791		47,001		
- Sold (1)	48,821		23,853		54,639		50,853		
Cash operating costs ($/oz sold)		$593			$515			$598			$524		
All-in sustaining costs ($/oz sold)		$774			$832			$840			$781		
Financial Data	 	 	 	 	
Gold revenue (1)		$65.2			$30.6			$72.6			$66.7		
Depreciation and depletion (1)	15.2		8.3		17.5		18.4		
Earnings from mining operations (1)	18.5		9.5		19.9		20.2		
Sustaining capital expenditures		$5.4			$5.8			$9.0			$9.5		

(1)	Efemcukuru ounces sold, revenue and earnings were impacted by delayed shipments in Q1 2019 that were completed in Q2 2019. This timing issue resulted in lower ounces sold in Q1 2019 and higher ounces sold in Q2 2019.	

Efemcukuru produced 25,667 ounces of gold in Q2 2019, compared with 24,146 ounces of gold in Q2 2018. The 6% increase in production was primarily due to higher average head grade.
A build-up of concentrate inventory occurred at the end of Q1 2019 due to a contract dispute with a customer and concentrate shipment delays due to inclement weather at the loading port at the end of the first quarter. All of the concentrate in inventory was sold during Q2 2019 and inventories were at normal levels at the end of the quarter. This timing issue resulted in lower ounces sold in Q1 2019 and higher ounces sold in Q2 2019. Gold revenue in Q2 2019 increased to $65.2 million from $30.6 million in Q2 2018 primarily as a result of the higher sales volumes.
Despite steady mining costs in Q2 2019, cash operating costs were $593 per ounce sold in Q2 2019 compared to $515 per ounce sold in Q2 2018, a reflection of higher transportation costs and treatment charges. Additionally, penalty rates for impurities are slightly higher due to changes in market conditions. Sustaining capital expenditure was $5.4 million in Q2 2019, slightly lower than $5.8 million in Q2 2018, and resulting in a decrease in AISC per ounce sold to $774 in Q2 2019 from $832 in Q2 2018, in line with significantly higher sales volumes in the quarter.

	
			
 	 	12	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Olympias

													
Operating Data	3 months ended June 30,	 	6 months ended June 30,	 	
 	2019		2018		2019		2018		
Tonnes milled	65,814		93,430		143,962		170,395		
Head grade (g/t Au)	6.41		8.76		6.96		8.16		
Average gold recovery rate (to concentrate)	81.7	%	83.5	%	83.2	%	83.4	%	
Gold (oz) (1,2)	 	 	 	 	
- Produced	6,924		15,895		16,852		25,860		
- Sold	14,462		14,740		24,463		20,488		
Silver (oz) (2)	118,188		126,193		248,292		303,209		
Lead (t) (2)	1,126		1,362		2,537		3,085		
Zinc (t) (2)	1,442		2,178		3,659		4,285		
Cash operating costs ($/oz sold)		$1,402			$412			$1,156			$493		
All-in sustaining costs ($/oz sold)		$1,731			$715			$1,553			$897		
Financial Data	 	 	 	 	
Gold revenue		$18.2			$17.7			$29.0			$24.9		
Silver and base metal revenue	7.7		14.4		21.5		20.4		
Depreciation and depletion	9.1		10.9		22.2		16.3		
(Loss) earnings from mining operations	(11.0	)	1.1		(21.1	)	(0.8	)	
Sustaining capital expenditures		$3.8			$2.5			$7.9			$5.1		

(1)	Includes pre-commercial production in Q1 2018 and payable ounces in Pb-Ag concentrate.	
		
(2)	Payable metal produced.	

Olympias produced 6,924 ounces of gold in Q2 2019, compared with 15,895 ounces in Q2 2018. The decrease in production was primarily due to limited headings underground as a result of slower than anticipated capital development and a backlog of stopes to be filled. This reduced the tonnage fed to the processing plant. A new underground contractor was mobilized during the second quarter and capital development rates are expected to increase over the second half of 2019. Additionally, process improvements are being implemented in the paste backfill plant, which will allow for increased rates of stope filling. A phase of lower average head grade also contributed to lower production in Q2 2019. The mill continues to perform to plan and recoveries and concentrate qualities in Q2 2019 were in line with expectations. Other metal production in Q2 2019 included 118,188 silver ounces (Q2 2018: 126,193 ounces), 1,126 lead tonnes (Q2 2018: 1,362 tonnes) and 1,442 zinc tonnes (Q2 2018: 2,178 tonnes). Silver, lead and zinc production were lower in Q2 2019 compared to Q2 2018 due to the lower tonnes processed.
Gold ounces sold in Q2 2019 were only slightly lower than in Q2 2018 despite significantly lower production in the quarter. This was due to the sale of gold concentrate inventory containing approximately 8,000 ounces that had been produced in prior periods. Inventories were at normal levels at the end of the quarter. Silver and base metal revenue decreased to $7.7 million in Q2 2019 from $14.4 million in Q2 2018 in line with decreased production in the quarter.
Cash operating costs in Q2 2019 were $1,402 per ounce sold, compared with $412 per ounce sold in Q2 2018. The significant increase was due to reduced throughput and lower production volumes in Q2 2019. The increase in cash operating cost, combined with a slight increase in sustaining capital in the quarter resulted in an increase in AISC to $1,731 per ounce sold in Q2 2019 from $715 per ounce sold in Q2 2018.

	
			
 	 	13	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Lamaque

						
Operating Data	3 months ended June 30,	 	
 	2019		2018		
Tonnes milled	147,380		n/a		
Head grade (g/t Au)	7.31		n/a		
Average recovery rate	95.7	%	n/a		
Gold (oz)	 	 	
- Produced (1)	33,140		3,134		
- Sold (2)	24,330		n/a		
Cash operating costs ($/oz sold)		$517		n/a		
All-in sustaining costs ($/oz sold)		$814		n/a		
Financial Data	 	 	
Gold revenue		$32.4		n/a		
Silver and base metal revenue	0.1		n/a		
Depreciation and depletion	10.4		n/a		
Earnings from mining operations	8.5		n/a		
Sustaining capital expenditures		$5.3		n/a		

(1)	Includes 5,057 ounces produced from ore mined during the pre-commercial production period.	
		
(2)	Does not include 11,705 ounces sold from ore mined during the pre-commercial production period.	

Commercial operations commenced at the Lamaque mine in April 2019. Lamaque produced 33,140 ounces of gold in Q2 2019, reflecting strong throughput in the first quarter of commercial operations as a result of good ore availability and an average gold grade of 7.31 grams per tonne. All ore was processed at the Sigma mill in Q2 2019 with the average gold recovery rate of 95.7% above the expected rate of 95%. Production is expected to reduce in the third and fourth quarters of 2019 due to a greater focus on underground development and a shift to lower-grade ore phases.
Revenue of $32.4 million was realized in Q2 2019 from gold sales of 24,330 ounces and does not include sales of the remaining 11,705 ounces that were mined during the pre-commercial production period. Net proceeds of $ 7.6 million were realized in the quarter from these pre-commercial production sales, including $15.0 million of proceeds and $7.4 million of associated costs. Net proceeds from pre-commercial production sales offset growth capital expenditure.
Cash operating costs in Q2 2019 were $517 per ounce sold, reflecting steady production costs and strong throughput in the first quarter of commercial operations. AISC in Q2 2019 was $814 per ounce sold and was inclusive of sustaining capital expenditure related primarily to underground development and tailings dam construction. Cash operating costs per ounce sold and AISC per ounce sold exclude ounces that were mined during the pre-commercial production period, together with associated costs.
During Q2 2019, approval of the final permits for the tailings management facility were received as expected and construction of the second phase of the facility commenced. This work is expected to be completed by the end of 2019. The Company also continues to explore options to increase production and to extend the mine life at the Triangle deposit.
Growth capital expenditure totalled $11.3 million in Q2 2019 relating primarily to remaining equipment purchases.

	
			
 	 	14	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Stratoni

													
Operating Data	3 months ended June 30,	 	6 months ended June 30,	 	
 	2019		2018		2019		2018		
Tonnes ore processed (dry)	47,729		35,855		84,987		73,847		
Pb feed grade	5.2	%	8.5	%	5.5	%	6.9	%	
Zn feed grade	8.3	%	10.3	%	9.0	%	9.5	%	
Tonnes of concentrate produced	10,344		10,475		19,598		19,041		
Tonnes of concentrate sold	13,464		12,978		21,304		19,748		
Average realized concentrate price ($/t sold) (1)	$1,131		$1,276			$1,242			$1,326		
Cash operating costs ($/t of concentrate sold)		$1,241			$1,024			$1,227			$1,099		
Financial Data	 	 	 	 	
Concentrate revenues		$15.2			$16.6			$26.5			$26.2		
Earnings (loss) from mining operations	(2.4	)	3.0		(0.8	)	4.0		
Sustaining capital expenditures		$2.6			$—			$2.6			$—		

(1)	Average realized price includes mark to market adjustments.	

Stratoni produced 10,344 tonnes of concentrate in Q2 2019, compared to 10,475 tonnes in Q2 2018. The slight decrease resulted from lower feed grades, partially offset by increased throughput.
Revenue decreased to $15.2 million in Q2 2019 from $16.6 million in Q2 2018 primarily due to lower payable lead produced, combined with a decrease in lead price.
Cash operating costs increased to $1,241 per tonne sold in Q2 2019 from $1,024 per tonne sold in Q2 2018, primarily due to lower feed grades.

	
			
 	 	15	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Development Projects
Tocantinzinho – Brazil
During Q2 2019, an updated technical report was completed for Tocantinzinho with an effective date of June 21, 2019 and filed on SEDAR on August 1, 2019. Highlights of the study at an estimated gold price of $1300 include an IRR of 13.4% and an NPV of $216 million at a 5% discount rate. At an estimated gold price of $1400, IRR is 16.6% with an NPV of $313 million at a 5% discount rate. Capital spending totalled $0.8 million in the quarter.
Vila Nova – Brazil
Subsequent to June 30, 2019, the Company executed a sale agreement for the Vila Nova iron ore mine for consideration of $9 million in cash. The sale is expected to close in Q3 2019 subject to the purchaser securing financing and other standard closing conditions. Vila Nova was placed on care and maintenance at the end of 2014 pending a recovery of iron ore prices. Accordingly, an $ 11.7 million partial reversal of impairment relating to property, plant and equipment and iron ore inventory was recorded in income in the quarter to record these assets at their estimated fair value based on the sale consideration. $0.4 million was spent at Vila Nova in the quarter and was included in mine standby costs.
Certej – Romania
Process optimization design work advanced in Q2 2019 including a technical review of the Albion Process. Some minor construction work also continued at the site. Spending totalled $1.1 million in the quarter and was included in exploration and evaluation expenditure.
Kisladag Mill – Turkey
Engineering studies for the mill project concluded in Q1 2019 and resources were demobilized and reallocated. Capital spending totalled $1.1 million in the three months ended March 31, 2019 with no further spending in the second quarter. $5.6 million was included in mine standby costs in Q1 2019. No spending was allocated to mine standby costs in Q2 2019 following the resumption of mining, crushing and stacking activities in April 2019.
Skouries – Greece
Skouries remained in care and maintenance during Q2 2019. $2.1 million was spent in the quarter and was included in mine standby costs.

Exploration and Evaluation
Exploration and evaluation activity in Q2 2019 primarily related to brownfields resource expansion programs at the Company’s operations in Canada, Turkey and Greece.
Exploration and evaluation expenditure is expensed when it relates to the initial search for or the delineation of mineral deposits or the evaluation of the technical and economic feasibility of a project. Exploration and evaluation expenditure is capitalized once there is sufficient evidence to support the probability of generating positive economic returns in the future.
In Q2 2019, exploration and evaluation expense totalled $ 2.5 million, including $1.1 million of spending at the Certej project (see section - Development Projects) , and the remainder spent at Turkey and Lamaque, both related to testing early-stage targets. In Q2 2019, capitalized expenditure included $3.5 million on resource expansion programs at Lamaque, Efemcukuru and Stratoni.
At Lamaque, 10,200 metres of drilling during the quarter focused on resource expansion in the lower Triangle Deposit (below the C5 zone) and testing early-stage nearby targets. Drilling results included new stepout intercepts on the C7, C9, and C10 zones, and additional intercepts of peripheral stockwork vein zones. In addition, resource expansion drilling in the lower part of the nearby Plug 4 deposit has confirmed that the mineralized shear and stockwork vein systems continue well below the current resource.

	
			
 	 	16	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

At Efemcukuru, 7,960 metres of exploration drilling were completed on the Kokarpinar vein systems and on vein targets in the footwall to the Kestane Beleni vein system.
At Stratoni, 2,540 metres of drilling during the quarter targeted the lower part of the Mavres Petres ore body. Several new massive sulphide intercepts have expanded the known extent of massive sulphide mineralization over a hundred metres to the west, and the orebody remains open both downdip and along strike.

Non-IFRS Measures
The Company has included certain non-IFRS measures in this MD&A, as discussed below. The Company believes that these measures, in addition to conventional measures prepared in accordance with 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.
Cash Operating Costs, Cash Operating Costs per Ounce Sold
Cash operating costs and cash operating costs per ounce sold are non-IFRS measures. In the gold mining industry, these metrics are common performance measures but do not have any standardized meaning under IFRS. Cash operating costs include mine site operating costs such as mining, processing and administration, but exclude royalty expenses, depreciation and depletion and share based payment expenses and reclamation costs. Cash operating costs per ounce sold is based on ounces sold and is calculated by dividing cash operating costs by volume of gold ounces sold. The Company discloses cash operating costs and cash operating costs per ounce sold as it believes the measures provide valuable assistance to investors and analysts in evaluating the Company’s operational performance and ability to generate cash flow. We calculate costs according to the Gold Institute Standard. The most directly comparable measure prepared in accordance with IFRS is production costs. Cash operating costs and cash operating costs per ounce of gold sold should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.
Reconciliation of Production Costs to Cash Operating Costs:

													
  	Q2 2019		Q2 2018		YTD 2019		YTD 2018		
Production costs		$100.9			$85.8			$152.8			$153.1		
Stratoni production costs	(17.1	)	(13.5	)	(26.7	)	(22.3	)	
Production costs – excluding Stratoni	83.8		72.3		126.2		130.9		
By-product credits and other adjustments	(7.7	)	(14.8	)	(21.9	)	(21.6	)	
Royalty expense and production taxes	(4.4	)	(2.2	)	(5.7	)	(4.5	)	
Cash operating costs		$71.7			$55.3			$98.6			$104.7		
Gold ounces sold	113,685		94,224		156,759		180,811		
Cash operating costs per ounce sold		$631			$587			$629			$579		

	
			
 	 	17	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Reconciliation of Cash Operating Costs and Cash Operating Costs per ounce sold, by asset, for the three months ended June 30, 2019 :

																											
 	Direct mining costs		 	By-product credits		 	Refining and selling costs		 	Other (1)		 	Cash operating costs		 	Gold oz sold		 	Cash operating costs/oz sold		
Kisladag		$25.8		 		($0.2	)	 		$0.1		 		($15.7	)	 		$9.9		 	26,072		 		$381		
Efemcukuru	12.4		 	(1.1	)	 	7.1		 	10.5		 	28.9		 	48,821		 	593		
Olympias	17.8		 	(6.2	)	 	3.3		 	5.4		 	20.3		 	14,462		 	1,402		
Lamaque (2)	16.2		 	(0.1	)	 	—		 	(3.5	)	 	12.6		 	24,330		 	517		
Total consolidated		$72.2		 		($7.7	)	 		$10.5		 		($3.3	)	 		$71.7		 	113,685		 		$631		
(1) Other costs indicated are primarily inventory change adjustments that result from timing differences between when inventory is produced and when it is sold. The significant negative change related to Kisladag reflects mining, crushing and stacking costs that were allocated to heap leach inventory in the period and will be expensed in future periods when the related ounces are recovered and sold. The significant positive change relating to Efemcukuru represents the sale in Q2 2019 of concentrate that had been produced in Q1 2019.
(2) Excludes ounces sold and associated costs for pre-commercial production sales.

Reconciliation of Cash Operating Costs and Cash Operating Costs per ounce sold, by asset, for the six months ended June 30, 2019 :

																											
 	Direct mining costs		 	By-product credits		 	Refining and selling costs		 	Other (1)		 	Cash operating costs		 	Gold oz sold		 	Cash operating costs/oz sold		
Kisladag		$37.6		 		($0.5	)	 		$0.2		 		($12.1	)	 		$25.1		 	53,327		 		$471		
Efemcukuru	24.2		 	(1.2	)	 	8.0		 	1.6		 	32.6		 	54,639		 	598		
Olympias	33.0		 	(20.0	)	 	5.5		 	9.8		 	28.3		 	24,463		 	1,156		
Lamaque (2)	16.2		 	(0.1	)	 	—		 	(3.5	)	 	12.6		 	24,330		 	517		
Total consolidated		$111.0		 		($21.9	)	 		$13.7		 		($4.2	)	 		$98.6		 	156,759		 		$629		
(1) Other costs indicated are primarily inventory change adjustments that result from timing differences between when inventory is produced and when it is sold. The significant negative change related to Kisladag reflects mining, crushing and stacking costs that were allocated to heap leach inventory in the period and will be expensed in future periods when the related ounces are recovered and sold. The significant positive change relating to Olympias represents the sale in Q2 2019 of concentrate that had been produced in Q4 2018.
(2) Excludes ounces sold and associated costs for pre-commercial production sales.

Reconciliation of Cash Operating Costs and Cash Operating Costs per ounce sold, by asset, for the three months ended June 30, 2018 :

																											
 	Direct mining costs		 	By-product credits		 	Refining and selling costs		 	Other (1)		 	Cash operating costs		 	Gold oz sold		 	Cash operating costs/oz sold		
Kisladag		$14.4		 		($0.4	)	 		$0.2		 		$22.7		 		$37.0		 	55,631		 		$664		
Efemcukuru	11.4		 	(1.0	)	 	1.7		 	0.1		 		$12.3		 	23,853		 		$515		
Olympias	15.5		 	(13.5	)	 	2.8		 	1.3		 		$6.1		 	14,740		 		$412		
Total consolidated		$41.3		 		($14.8	)	 		$4.7		 		$24.1		 		$55.3		 	94,224		 		$587		
(1) Other costs indicated are primarily inventory change adjustments that result from timing differences between when inventory is produced and when it is sold. The significant positive change relating to Kisladag represents mining, crushing and stacking costs incurred in previous periods that were allocated to heap leach inventory. These costs are recognized in the current period as the related ounces are produced and sold.

	
			
 	 	18	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Reconciliation of Cash Operating Costs and Cash Operating Costs per ounce sold, by asset, for the six months ended June 30, 2018 :

																											
 	Direct mining costs		 	By-product credits		 	Refining and selling costs		 	Other (1)		 	Cash operating costs		 	Gold oz sold		 	Cash operating costs/oz sold		
Kisladag		$41.8		 		($0.7	)	 		$0.4		 		$26.5		 		$68.0		 	109,470		 		$621		
Efemcukuru	23.3		 	(1.8	)	 	3.4		 	1.8		 		$26.6		 	50,853		 		$524		
Olympias	30.0		 	(19.1	)	 	4.2		 	(5.0	)	 		$10.1		 	20,488		 		$493		
Total consolidated		$95.0		 		($21.6	)	 		$8.0		 		$23.3		 		$104.7		 	180,811		 		$579		
(1) Other costs indicated are primarily inventory change adjustments that result from timing differences between when inventory is produced and when it is sold. The significant positive change relating to Kisladag represents mining, crushing and stacking costs incurred in previous periods that were allocated to heap leach inventory. These costs are recognized in the current period as the related ounces are produced and sold.

Total Cash Costs, Total Cash Costs per ounce sold
Total cash costs and total cash costs per ounce sold are non-IFRS measures. In the gold mining industry, these metrics are common performance measures but do not have any standardized meaning under IFRS. The Company defines total cash costs as the sum of cash operating costs (as defined and calculated above) and royalties and production taxes. Total cash costs per ounce sold is based on ounces sold and is calculated by dividing total cash costs by volume of gold ounces sold. The Company discloses total cash costs and total cash costs per ounce sold as it believes the measures provide valuable assistance to investors and analysts in evaluating the Company’s operational performance and ability to generate cash flow. The most directly comparable measure prepared in accordance with IFRS is production costs. Total cash costs and total cash costs per ounce of gold sold should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.
Reconciliation of Total Cash Costs and Total Cash Costs per ounce sold:

													
  	Q2 2019  		Q2 2018		YTD 2019		YTD 2018		
Cash operating costs		$71.7			$55.3			$98.6			$104.7		
Royalties and production taxes	4.4		2.2		5.7		4.5		
Total cash costs		$76.1			$57.5			$104.3			$109.2		
Gold ounces sold	113,685		94,224		156,759		180,811		
Total cash costs per ounce sold		$670			$610			$665			$604		

All-in Sustaining Costs
AISC and AISC per ounce sold are non-IFRS measures. These measures are intended to assist readers in evaluating the total costs of producing gold from current operations. While there is no standardized meaning across the industry for this measure, the Company’s definition conforms to the definition of AISC set out by the World Gold Council and the updated guidance note dated November 14, 2018. The Company defines AISC as the sum of cash operating costs (as defined and calculated above), royalties and production taxes, sustaining capital, sustaining leases, exploration and evaluation costs related to current operations (including capitalized evaluation costs), corporate expenses and reclamation cost accretion related to current operations. Corporate expenses include general and administrative expenses, share-based compensation, and severance expenses. AISC excludes growth capital and reclamation cost accretion not related to current operations, all financing charges (including capitalized interest), except for financing charges related to leasing arrangements, costs related to business combinations, asset acquisitions and asset disposals, and adjustments made to normalize earnings.

	
			
 	 	19	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Reconciliation of All-in Sustaining Costs and All-in Sustaining Costs per ounce sold:

													
  	Q2 2019  (1)		Q2 2018		YTD 2019 (1)		YTD 2018		
Cash operating costs		$71.7			$55.3			$98.6			$104.7		
Royalties and production taxes	4.4		2.2		5.7		4.5		
Corporate and allocated G&A	9.4		15.5		18.2		23.8		
Exploration and evaluation costs	1.9		0.4		2.4		0.6		
Reclamation costs and amortization	1.2		0.8		2.0		1.8		
Sustaining capital expenditure	15.6		13.8		26.4		24.9		
AISC		$104.2			$88.0			$153.2			$160.4		
Gold ounces sold	113,685		94,224		156,759		180,811		
AISC per ounce sold		$917			$934			$977			$887		
(1) Excludes ounces sold and associated costs for pre-commercial production sales at Lamaque.

Reconciliation of All-in Sustaining Costs and All-in Sustaining Costs per ounce sold, by operating asset and corporate office, for the three months ended June 30, 2019 :

																											
 	Cash operating costs		Royalties & production taxes		Corporate & allocated G&A		Exploration costs		Reclamation costs and amortization		Sustaining capital		Total
AISC		Gold oz sold		Total AISC/
oz sold		
Kisladag		$9.9			$0.6			$—			$—			$0.7			$1.1			$12.3		26,072			$471		
Efemcukuru	28.9		2.3		0.1		0.9		0.2		5.4		37.8		48,821		774		
Olympias	20.3		0.7		—		—		0.3		3.8		25.0		14,462		1,731		
Lamaque (1)	12.6		0.8		—		1.0		—		5.3		19.8		24,330		814		
Corporate  (2)	—		—		9.4		—		—		—		9.4		—		82		
Total consolidated		$71.7			$4.4			$9.4			$1.9			$1.2			$15.6			$104.2		113,685			$917		
(1) Excludes ounces sold and associated cash operating costs for pre-commercial production sales. Royalties, exploration costs and sustaining capital have also been adjusted to exclude a portion attributed to pre-commercial production sales in the period.
(2) Excludes general and administrative expenses related to business development activities and projects. Includes share based payments expense and defined benefit pension plan expense. AISC per ounce sold has been calculated using total consolidated gold ounces sold.

	
			
 	 	20	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Reconciliation of All-in Sustaining Costs and All-in Sustaining Costs per ounce sold, by operating asset and corporate office, for the six months ended June 30, 2019 :

																											
 	Cash operating costs		Royalties & production taxes		Corporate & allocated G&A		Exploration costs		Reclamation costs and amortization		Sustaining capital		Total
AISC		Gold oz sold		Total
AISC/
oz sold		
Kisladag		$25.1			$1.2			$0.1			$—			$0.9			$4.2			$31.5		53,327			$590		
Efemcukuru	32.6		2.5		0.1		1.3		0.4		9.0		45.9		54,639		840		
Olympias	28.3		1.1		—		—		0.6		7.9		38.0		24,463		1,553		
Lamaque (1)	12.6		0.8		—		1.0		—		5.3		19.8		24,330		814		
Corporate  (2)	—		—		18.1		—		—		—		18.1		—		115		
Total consolidated		$98.6			$5.7			$18.2			$2.4			$2.0			$26.4			$153.2		156,759			$977		
(1) Excludes ounces sold and associated cash operating costs for pre-commercial production sales. Royalties, exploration costs and sustaining capital have also been adjusted to exclude a portion attributed to pre-commercial production sales in the period.
(2) Excludes general and administrative expenses related to business development activities and projects. Includes share based payments expense and defined benefit pension plan expense. AISC per ounce sold has been calculated using total consolidated gold ounces sold.

Reconciliation of All-in Sustaining Costs and All-in Sustaining Costs per ounce sold, by operating asset and corporate office, for the three months ended June 30, 2018 :

																											
 	Cash operating costs		Royalties & production taxes		Corporate & allocated G&A		Exploration costs		Reclamation costs and amortization		Sustaining capital		Total
AISC		Gold oz sold		Total
AISC/
oz sold		
Kisladag		$37.0			$1.1			$1.1			$—			$0.3			$5.5			$44.9		55,631			$808		
Efemcukuru	12.3		0.5		0.8		0.2		0.2		5.8		19.8		23,853		832		
Olympias	6.1		0.6		0.9		0.2		0.3		2.5		10.6		14,740		715		
Corporate  (1)	—		—		12.7		—		—		—		12.7		—		134		
Total consolidated		$55.3			$2.2			$15.5			$0.4			$0.8			$13.8			$88.0		94,224			$934		

(1) Excludes general and administrative expenses related to business development activities and projects. Includes share based payments expense and defined benefit pension plan expense. AISC per ounce sold has been calculated using total consolidated gold ounces sold.

	
			
 	 	21	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Reconciliation of All-in Sustaining Costs and All-in Sustaining Costs per ounce sold, by operating asset and corporate office, for the six months ended June 30, 2018 :

																											
 	Cash operating costs		Royalties & production taxes		Corporate & allocated G&A		Exploration costs		Reclamation costs and amortization		Sustaining capital		Total
AISC		Gold oz sold		Total
AISC/
oz sold		
Kisladag		$68.0			$2.3			$1.9			$—			$0.9			$10.3			$83.4		109,470			$762		
Efemcukuru	26.7		1.4		1.4		0.3		0.4		9.5		39.7		50,853		781		
Olympias	10.1		0.8		1.6		0.3		0.5		5.1		18.4		20,488		897		
Corporate  (1)	—		—		18.9		—		—		—		18.9		—		105		
Total consolidated		$104.7			$4.5			$23.8			$0.6			$1.8			$24.9			$160.4		180,811			$887		

(1) Excludes general and administrative expenses related to business development activities and projects. Includes share based payments expense and defined benefit pension plan expense. AISC per ounce sold has been calculated using total consolidated gold ounces sold.

Reconciliation of general and administrative expenses included in All-in Sustaining Costs:

													
  	Q2 2019		Q2 2018		YTD 2019		YTD 2018		
General and administrative expenses  
(from consolidated statement of operations)		$8.1			$14.0			$15.3			$22.2		
Add:	 	 	 	 	
Share based payments	2.5		2.8		5.4		4.2		
Defined benefit pension plan expense from corporate and
operating gold mines	0.5		1.0		1.1		2.1		
Less:	 	 	 	 	
General and administrative expenses related to non-gold mines	(0.3	)	(4.3	)	(0.9	)	(7.8	)	
Business development	(0.5	)	(0.4	)	(1.0	)	(0.7	)	
Development projects	(0.9	)	(0.5	)	(1.8	)	(1.1	)	
Corporate and allocated general and administrative expenses		$9.4			$12.6			$18.1			$18.9		

Cash Flow from Operations before Changes in Non-cash Working Capital
The Company uses cash flow from operations (or operating activities) before changes in non-cash working capital to supplement its consolidated financial statements and exclude the period to period movement of non-cash working capital items, like accounts receivable, advances and deposits, inventory, accounts payable and accrued liabilities. The Company believes this provides an alternative indication of its cash flow from operations and may be meaningful to investors in evaluating its past performance or future prospects. It is not meant to be a substitute for cash flow from operations (or operating activities), which is calculated in accordance with IFRS.

Sustaining and Growth Capital
Sustaining capital and growth capital are Non-IFRS measures. The Company defines sustaining capital as capital required to maintain current operations at existing levels. Growth capital is defined as capital expenditures for major growth projects or enhancement capital for significant infrastructure improvements at existing operations.

	
			
 	 	22	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Average Realized Price per ounce sold
In the gold mining industry, average realized price per ounce sold is a common performance measure that does not have any standardized meaning. The most directly comparable measure prepared in accordance with IFRS is gold revenue. Average realized price per ounce sold should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. The measure is intended to assist readers in evaluating the total revenues realized in a period from current operations.
Average Realized Price per ounce sold is reconciled for the periods presented as follows:

													
 	Q2 2019		Q2 2018		YTD 2019		YTD 2018		
Gold revenue		$150.1			$121.3			$203.9			$236.8		
Gold oz sold	113,685		94,224		156,759		180,811		
Average realized price per ounce sold		$1,321			$1,287			$1,301			$1,310		

Adjusted Net Earnings (Loss)
Adjusted net earnings (loss) and adjusted net earnings (loss) per share are used by management and investors to measure the underlying operating performance of the Company. Adjusted net earnings (loss) is defined as net earnings (loss) adjusted to exclude the after-tax impact of specific items that are significant, but not reflective of the underlying operations of the Company, including impairment adjustments; foreign exchange on deferred tax balances; changes in tax rates; gain (loss) on sale of securities; gain (loss) on disposal of assets; other write-down of assets; transaction costs and executive severance payments, and other non-recurring items. Adjusted net earnings (loss) per share is calculated using the weighted average number of shares outstanding for adjusted net earnings (loss) per share.
Reconciliation of Net Earnings (Loss) attributable to shareholders of the Company to Adjusted Net Earnings (Loss) attributable to shareholders of the Company:

													
 	Q2 2019		Q2 2018		YTD 2019  		YTD 2018		
Net earnings (loss) attributable to shareholders of the Company		$12.2			($24.4	)		($14.8	)		($15.7	)	
Loss (gain) on disposal of assets	(7.4	)	—		(7.4	)	(0.1	)	
Loss (gain) on available-for-sale securities	—		—		—		0.2		
Loss (gain) on foreign exchange translation of deferred tax balances	(0.4	)	19.1		5.5		21.5		
Other write-down of assets, net of tax	—		3.5		—		6.5		
Write-down of inventory	1.6		—		4.6		—		
Severance	1.1		—		1.1		—		
Transaction costs (1)	3.6		—		3.6		—		
Impairment reversal	(11.7	)	—		(11.7	)	—		
Total adjusted net earnings (loss)		($1.2	)		($1.8	)		($19.2	)		$12.4		
Weighted average shares outstanding	158,372		158,552		158,345		158,506		
Adjusted net earnings (loss) per share ($/share)		($0.01	)		($0.01	)		($0.12	)		$0.08		

(1) $3.6 million of unamortized transaction costs relating to the debt redeemed in June 2019 were expensed in full in Q2 2019.

	
			
 	 	23	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Earnings Before Interest, Taxes and Depreciation and Amortization ("EBITDA"), Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization (" Adjusted EBITDA")
EBITDA from continuing operations represents net earnings before interest, taxes, depreciation and amortization. In addition to conventional measures prepared in accordance with IFRS, the Company and certain investors use EBITDA and Adjusted EBITDA as an indicator of the Company's ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations and fund capital expenditures. EBITDA is also frequently used by investors and analysts for valuation purposes based on an observed or inferred relationship between EBITDA and market values to determine the approximate total enterprise value of a company. EBITDA and Adjusted EBITDA are intended to provide additional information to investors and analysts and do not have any standardized definition under IFRS, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. EBITDA and Adjusted EBITDA exclude the impact of cash costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore are not necessarily indicative of operating earnings or cash flow from operations as determined under IFRS. Other companies may calculate EBITDA and Adjusted EBITDA differently.
Reconciliation of Net Earnings (Loss) before tax to EBITDA and Adjusted EBITDA:

													
 	Q2 2019		Q2 2018		YTD 2019		YTD 2018		
Earnings (loss) before income tax		$17.2			($2.5	)		($4.1	)		$10.2		
Depreciation, depletion and amortization (1)	41.5		34.5		61.6		63.7		
Interest income	(1.0	)	(2.0	)	(2.2	)	(3.4	)	
Finance costs	16.8		3.2		24.1		7.3		
EBITDA		$74.5			$33.2			$79.4			$77.7		
Share-based payments	2.5		2.8		5.4		4.2		
(Gain) loss on disposal of assets	(7.1	)	—		(7.1	)	(0.1	)	
Severance costs	1.1		1.3		1.1		1.3		
Proceeds on pre-commercial production sales, net	7.6		0.3		12.2		5.2		
Reversal of impairment	(11.7	)	—		(11.7	)	—		
Adjusted EBITDA		$66.8			$37.6			$79.3			$88.3		
(1) Includes depreciation within general and administrative expenses .

Working Capital
Working capital is a Non-IFRS measure. In the gold mining industry, working capital is a common measure of liquidity, but does not have any standardized meaning. The most directly comparable measure prepared in accordance with IFRS is current assets and current liabilities. Working capital is calculated by deducting current liabilities from current assets. Working capital should not be considered in isolation or as a substitute from measures prepared in accordance with IFRS. The measure is intended to assist readers in evaluating the Company’s liquidity.
Working capital for the periods highlighted is as follows:

								
 	As at June 30, 2019		 	As at December 31, 2018		
Current assets		$338.7		 		$514.7		
Current liabilities	156.0		 	141.7		
Working capital		$182.7		 		$373.0		

	
			
 	 	24	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Quarterly Results

																									
 	2019		2019		2018		2018		2018		2018		2017		2017		
 	Q2		Q1		Q4		Q3		Q2		Q1		Q4		Q3		
Total revenue		$173.7			$80.0			$92.8			$81.1			$153.2			$131.9			$101.4			$95.4		
Impairment charges (reversals), net of tax	(11.7	)	—		234.4		94.1		—		—		37.5		—		
Net earnings/(loss) (1)		$12.2			($27.0	)		($218.2	)		($128.0	)		($24.4	)		$8.7			($20.7	)		($4.2	)	
Net earnings (loss) per share (1)	 	 	 	 	 	 	 	 	
- basic	0.08		(0.17	)	(1.38	)	(0.81	)	(0.15	)	0.05		(0.15	)	(0.03	)	
- diluted	0.08		(0.17	)	(1.38	)	(0.81	)	(0.15	)	0.05		(0.15	)	(0.03	)	
(1) Attributable to Shareholders of the Company.

Revenue and earnings were impacted by delayed shipments of Efemcukuru concentrate in Q1 2019 that were completed in Q2 2019. This timing issue resulted in lower sales volumes in Q1 2019 and higher sales volumes in Q2 2019.
The commencement of commercial operations at Lamaque in Q2 2019 and at Olympias in Q1 2018 positively impacted both revenue and net earnings (loss) in the respective subsequent periods. The suspension of placement of new ore on the Kisladag heap leach pad negatively impacted revenue and net earnings in the second half of 2018 and in the first half of 2019.
Net earnings in Q3 2018 and Q4 2018 were negatively impacted by impairments of the Company's assets in Greece and Turkey.

Financial Condition and Liquidity
Operating Activities
Net cash generated from operating activities was $ 51.0  million in Q2 2019 compared to $ 43.4 million in Q2 2018. The increase was a result of higher sales volumes in Q2 2019, partially offset by higher interest payments relating to operating activities. Capitalized interest payments included in investing activities were $3.8 million in Q2 2019 relating to Lamaque, as compared to $14.2 million in Q2 2018 relating to Lamaque and Skouries. No interest was capitalized in Q2 2019 following the commencement of commercial operations at Lamaque in April 2019 and the transfer of Skouries to care and maintenance at the end of 2018.
Net cash generated from operating activities was $ 50.4 million in the six months ended June 30, 2019 compared to $ 59.8 million in the six months ended June 30, 2018, primarily due to lower production from Kisladag due to the suspension of mining and stacking of ore on the leach pad from April 2018 through March 2019.
The positive working capital change in Q2 2019 reflected an increase in trade payables and accruals in the quarter, including taxes payable, partially offset by an increase in accounts receivable. The increase in accounts receivable reflected an increased volume of concentrate sales in the quarter, for which a portion of payment was still outstanding at June 30, 2019. A decrease in inventory in the quarter also contributed to the positive working capital change and reflected the sale of concentrate inventory buildups at Efemcukuru and Olympias from prior periods. The significant inventory decrease in Q2 2018 was the result of the suspension of mining, crushing and stacking activities at Kisladag in April 2018 and benefited cash generation in that quarter as sales continued from ounces produced from the heap leach pad, despite reduced cash spending following the shutdown of mining activities.

	
			
 	 	25	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Investing Activities
The Company invested $48.0  million and $ 113.9 million in capital expenditures on a cash basis in the three and six months ended June 30, 2019, respectively. Growth capital expenditure was $17.1 million and $41.3 million in the respective three and six-month periods on an accrual basis and primarily reflected spending at Lamaque. Capitalized evaluation expenditures totalled $3.5 million and $5.0 million in the three and six months ended June 30, 2019, respectively, related to delineation drilling programs. Sustaining capital spending at producing mines totalled $22.1 million and $32.9 million in the three and six months ended June 30, 2019, respectively. Differences between capital expenditures on a cash basis and an accrual basis in both periods primarily reflect payments of accrued construction costs at Lamaque, partially offset by equipment purchases through leasing arrangements
Capital expenditure was partially offset by $ 7.6 million and $ 12.2 million of proceeds from pre-commercial production sales at Lamaque, net of associated costs, in the three and six months ended June 30, 2019, respectively.
Investment in capital expenditure in the quarter was partially offset by a release of $10.6 million of restricted cash used to secure certain obligations in connection with the Company's operations that are now secured under the Company's revolving credit facility.
Financing Activities
On June 5, 2019, the Company completed an offering of $300 million senior secured second lien notes (the "senior secured notes”) at 98% of par value, with a coupon rate of 9.5% due June 1, 2024. In May 2019, the Company also executed a $450 million amended and restated senior secured credit facility (“the third amended and restated credit agreement” or “TARCA”) , consisting of:
		
•	a $200 million non-revolving term loan repayable in six equal semi-annual payments commencing June 30, 2020 (the "term loan"); and	
		
•	a $250 million revolving credit facility with a maturity date of June 5, 2024 .	
Net proceeds from the senior secured notes and term loan, together with cash on hand, were used to redeem in whole for cash the Company's existing $600 million 6.125% notes due December 2020. Accrued interest of $18.1 million was also paid upon redemption.
$300 million Senior Secured Second Lien Notes
The senior secured notes pay interest semi-annually on June 1 and December 1, beginning December 1, 2019. The Company received $287.1 million from the offering, which is net of the original issue discount of $6.0 million, and the commission payment and certain transaction costs paid to or on behalf of lenders totalling $6.9 million. The debt is also presented net of transaction costs of $2.3 million incurred directly by the Company in conjunction with the offering. The original discount, commission payment and transaction costs will be amortized over the term of the senior secured notes and included as finance costs. Net proceeds from the senior secured notes were used to redeem in part the Company’s outstanding $600 million 6.125% senior notes due December 15, 2020.
The senior secured notes are secured on a second lien basis by a general security agreement from the Company by the Company’s real property in Canada and shares of SG Resources B.V., Tüprag Metal, Eldorado Gold (Greece) BV, Integra Gold Corp. and Integra Gold (Québec) Inc., all wholly owned subsidiaries of the Company.
The senior secured notes are redeemable by the Company in whole or in part, for cash:
		
i)	At any time prior to December 1, 2021 at a redemption price equal to 100% of the aggregate principal amount of the senior secured notes, accrued and unpaid interest and a premium at the greater of 1% of the principal value of the notes to be redeemed, or the present value of remaining interest to December 1, 2021 discounted at the treasury yield plus 50 basis points.	
		
ii)	On and after the dates provided below, at the redemption prices, expressed as a percentage of principal amount of the notes to be redeemed, set forth below, plus accrued and unpaid interest on the senior secured notes:	

	
			
 	 	26	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

December 1, 2021               107.125%
December 1, 2022 and thereafter    100.000%
The redemption features described above constitute an embedded derivative which was separately recognized at its fair value of $1.4 million on initial recognition of the senior secured notes and recorded in other assets. The embedded derivative is classified as fair value through profit and loss. The change in fair value between the initial recognition date and June 30, 2019 was not significant.
The senior secured notes contain covenants that restrict, among other things, the ability of the Company to incur certain capital expenditures, distributions in certain circumstances and sales of material assets, in each case, subject to certain conditions. The Company is in compliance with these covenants at June 30, 2019 .
The fair market value of the senior secured notes as at June 30, 2019 is $302 million.
$450 million Senior Secured Credit Facility
The TARCA contains covenants that restrict, among other things, the ability of the Company to incur additional unsecured indebtedness except in compliance with certain conditions, incur certain lease obligations, make distributions in certain circumstances, sell material assets or carry on a business other than one related to mining. Significant financial covenants include a minimum Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) to interest ratio and a maximum debt net of unrestricted cash ("net debt") to EBITDA ratio ("net leverage ratio"). The Company is in compliance with its covenants at June 30, 2019 . 
Both the term loan and revolving credit facility bear interest at LIBOR plus a margin of 2.25% – 3.25%, dependent on a net leverage ratio pricing grid. The Company’s current interest charges and fees are as follows: LIBOR plus margin of 3.25% on the term loan and any amounts drawn from the revolving credit facility, LIBOR plus margin of 2.17% on non-financial letters of credit secured by the revolving credit facility and 0.8125% standby fees on the available and undrawn portion of the revolving credit facility.
The TARCA is secured on a first lien basis by a general security agreement from the Company, the Company's real property in Canada and shares of SG Resources B.V., Tüprag Metal, Eldorado Gold (Greece) BV, Integra Gold Corp. and Integra Gold (Québec) Inc., all wholly owned subsidiaries of the Company.
The term loan is presented net of transaction costs of $2.6 million incurred in conjunction with the amendment. The transaction costs will be recognized over the term of the term loan. Fees of $3.2 million relating to the undrawn revolving credit facility have been recorded in other assets and will be amortized over the term of the TARCA.
No amounts were drawn down under the revolving credit facility in the three and six months ended June 30, 2019 and as at June 30, 2019 , the balance is nil.
As at June 30, 2019, the Company has outstanding EUR 63.4 million ( $71 million ) in non-financial letters of credit issued to secure certain obligations in connection with its operations, which reduce availability under the revolving credit facility by a corresponding amount. Concurrent to the establishment of the facility, $10.6 million of restricted cash was released that had previously been held to secure letters of credit.
Capital Resources

							
 	June 30, 2019		December 31, 2018		
Cash, cash equivalents and term deposits		$119.9			$293.0		
Working capital	182.7		373.0		
Restricted collateralized accounts	0.3		0.3		
Debt – long-term		$449.1			$596.0		

	
			
 	 	27	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

At June 30, 2019 , the Company has unrestricted cash and cash equivalents of $ 119.9 million as compared to $ 293.0 million at December 31, 2018. The decrease was primarily due to cash used in the refinancing of the Company's $600 million 6.125% notes due December 2020. In conjunction with the refinancing, approximately $10.6 million of restricted cash was released relating to letters of credit issued to secure certain obligations in connection with the Company's operations. The letters of credit are now outstanding under the Company's revolving credit facility, reducing availability by a corresponding amount.
Working capital at June 30, 2019 excludes $13.4 million of assets and $4.4 million of liabilities relating to Vila Nova that have been classified as held-for-sale.
Management believes that the working capital of $ 182.7 million as at June 30, 2019 , together with future cash flows from operations and access to the undrawn credit facility, if required, are sufficient to support the Company's planned and foreseeable commitments for the next twelve months.
Contractual Obligations
Material contractual obligations as at June 30, 2019 are outlined below.

																
 	Within 1 year		2 to 3 years		4 to 5 years		Over 5 years		Total  		
Debt	33.3		133.3		333.3		—			$500.0		
Purchase obligations	32.9		1.3		0.3		—		34.5		
Lease commitments	10.3		16.9		3.4		1.0		31.7		
Mineral properties	5.9		12.0		11.9		20.5		50.3		
Totals		$82.5			$163.6			$349.0			$21.6			$616.6		

Debt obligations represent required repayments of principal for the senior secured notes and term loan. Purchase obligations relate primarily to mine development expenditures at Olympias and mine operating costs at Kisladag. Upon adoption of IFRS 16, leases for various assets including equipment, offices and properties that had previously been classified as operating or financing leases under IAS 17 have been combined into a single classification line above. Mineral properties refer to arrangements for the use of land that grant the Company the right to explore, develop, produce or otherwise use the mineral resource contained in that land. The table does not include interest on debt.

Outstanding Share Information

			
Common Shares Outstanding (1)	 	
- as of June 30, 2019	158,805,581		
- as of July 31, 2019	158,805,581		
  Share purchase options - as of July 30, 2019
   (Weighted average exercise price per share: Cdn$14.38)	6,058,277		
(1) Includes Treasury Stock.

	
			
 	 	28	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Managing Risk
In its exploration, development and mining of mineral deposits, the Company is subject to various, significant risks. Several of these financial and operational risks could have a significant impact on the Company's cash flows and profitability. The most significant risks and uncertainties faced by the Company include: the price of gold; the uncertainty of production estimates, including the ability to extract anticipated tonnes and successfully realize estimated grades; changes to operating and capital cost assumptions; the inherent risk associated with project development and permitting processes; the uncertainty of the mineral resources and their development into mineral reserves; the replacement of depleted reserves and the expected impact on reserves and the carrying value of the Company's properties; the updating of resource and reserve models and life of mine plans; foreign exchange risks; regulatory; financing; tax as well as health, safety, and environmental risks. These risks are not the only risks and uncertainties the Company faces. Risks and uncertainties not currently known to the Company or that the Company currently deems to be immaterial may also materially and adversely affect the Company’s business, financial condition, results of operations and prospects.
For a comprehensive discussion on risks and uncertainties, in respect of the Company's business and share price, refer to the section 'Risk Factors in Our Business' in the Company’s current AIF for the year ended December 31, 2018 , 2018, which risks are incorporated by reference in this MD&A.
Significant changes to our financial, operational and business risk exposure during the three and six months ended June 30, 2019 include the following:

•	Following the refinancing of the Company's debt in June 2019, management believes that the working capital at June 30, 2019 , together with expected cash flows from operations and access to the undrawn credit facility, if required, is sufficient to support the Company's planned and foreseeable commitments for the next twelve months. However, if planning and budgeting is materially different to that forecasted, or financing, if required, is not available to the Company on terms satisfactory to meet these material changes to planning or budgeting, then this may adversely affect the ability of the Company to meet its financial obligations and operational and development plans. 	

•	The Company invests its cash and cash equivalents in major financial institutions and in government issuances, according to the Company's short-term investment policy. As at June 30, 2019 , the Company holds a significant amount of cash and cash equivalents with various financial institutions in North America, the United Kingdom and Turkey. The Company monitors the credit ratings of all financial institutions in which it holds cash and investments. In recent months, Turkey's sovereign credit ratings have been downgraded, followed by the downgrade of the credit ratings of numerous Turkish banking institutions, including one at which the Company holds cash. As at June 30, 2019, the Company holds approximately 13% of its cash in financial institutions in Turkey. The credit risk associated with financial institutions in other jurisdictions continues to be considered as low. There can be no assurance that certain financial institutions in foreign countries in which the Company operates will not default on their commitments.	

•	The Company sells gold in U.S. dollars, but incurs costs mainly in U.S. dollars, Canadian dollars, Turkish Lira, Brazilian Real, Euros, and Romanian Lei. Any change in the value of any of these currencies against the U.S. dollar can impact production costs and capital expenditures, which can affect future cash flow, business, results of operations, financial condition and the Eldorado Gold share price and lead to higher operation, construction, development and other costs than anticipated. As of June 30, 2019 , approximately 72% of cash and cash equivalents is held in U.S. dollars. The amount of cash and cash equivalents held in Canadian dollars has increased in 2019 to support operations at Lamaque following the commencement of commercial production in April 2019. The Company has a risk management policy that contemplates potential hedging of its foreign exchange exposure to reduce the risk associated with currency fluctuations. The Company currently does not have any currency hedges, but may hedge in the future. There is no assurance that any hedges that may be put in place will mitigate these risks or that they will not cause the Company to experience less favourable economic outcomes than it would have experienced if it had no hedges in place.	

	
			
 	 	29	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

		
•	Interest rates determine how much interest the Company pays on its debt, and how much is earned on cash and cash equivalent balances, which can affect future cash flows. Subsequent to refinancing the Company's debt in June 2019, outstanding debt is in the form of senior notes with a fixed interest rate of 9.5% and a term loan with a variable rate based on LIBOR. Borrowings under the Company’s senior credit facility, if drawn, are also at variable rates of interest. Borrowings at variable rates of interest expose the Company to interest rate cost and interest rate risk. The Company currently does not have any interest rate swaps (that involve the exchange of floating for fixed rate interest payments in order to reduce interest rate volatility), but may enter into such swaps in the future. There is no assurance that any interest rate swaps that may be put in place will mitigate these risks or that they will not cause the Company to experience less favourable economic outcomes than would have been experienced if the Company had no such swaps in place.	

These are not the only risks that could have an effect on the Company's business, results of operations, financial condition and share price and other risks may become more material to the Company in the future or the above risks could diminish in importance, depending on the current circumstances of its business and operations.
The reader should carefully review each of the risk factors set out in the Company's most recently filed AIF, in respect of the year ended December 31, 2018 which risk factors provide a detailed discussion of the foregoing risks as well as a detailed discussion of other relevant risks.

Accounting Matters
Adoption of New Accounting Standards and Upcoming Changes
The accounting policies applied in the Company's unaudited Condensed Consolidated Interim Financial Statements for the three and six months ended June 30, 2019 are the same as those applied in the audited Consolidated Financial Statements for the years ended December 31, 2018 and 2017 other than as described below.
a) IFRS 16 ‘Leases ’
IFRS 16 introduces a single accounting model for lessees. The Company, as lessee, is required to recognize a right-of-use asset, representing its right to use the underlying asset, and a lease liability, representing its obligation to make lease payments. The Company may elect to not apply IFRS 16 to leases with a term of less than 12 months, which election is made by underlying class of assets to which the right of use asset relates, or leases where the underlying asset is of low value, which election is made on an asset by asset basis. The accounting treatment for lessors remains largely the same as under IAS 17 'Leases' .
The Company adopted this standard from January 1, 2019 using the modified retrospective approach. Accordingly, the comparative information presented for 2018 has not been restated.
Previously, the Company determined at contract inception whether an arrangement was or contained a lease under IFRIC 4, ‘ Determining Whether an Arrangement contains a Lease’. On adoption of IFRS 16, the Company now assesses whether a contract is or contains a lease based on whether the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. On transition to IFRS 16, the Company elected to apply the practical expedient permitted by the standard to grandfather the assessment of which transactions are leases. IFRS 16 was applied only to contracts that were previously identified as leases. Contracts that were not identified as leases under IAS 17 and IFRIC 4 were not reassessed using the definition of a lease under IFRS 16. Therefore, the definition of a lease under IFRS 16 has been applied only to contracts entered into or changed on or after January 1, 2019.
The Company leases various assets including equipment, offices and properties that had previously been classified as operating leases under IAS 17. On adoption of IFRS 16, liabilities for these leases were measured at the present value of the remaining lease payments, discounted using the Company’s incremental borrowing rate as

	
			
 	 	30	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

of January 1, 2019. The weighted average incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 13.1%. The Company elected to measure the right-of-use assets for these leases at amounts equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments recognized in the statement of financial position on December 31, 2018.
On initial adoption, the Company used the following practical expedients as permitted by the standard when applying IFRS 16 to leases previously classified as operating leases under IAS 17.
		
•	Applied the exemption not to recognize right-of-use assets and liabilities for leases with low value.	
		
•	Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term remaining.	
		
•	Applied a single discount rate to a portfolio of leases with reasonably similar characteristics (such as leases with a similar remaining lease term for a similar class of underlying asset in a similar economic environment).	
		
•	Excluded initial direct costs from measuring the right-of-use asset at the date of initial application.	
		
•	Used hindsight, such as in determining the lease term if the contract contains options to extend or terminate the lease.	
The Company also leases various equipment that had previously been classified as finance leases under IAS 17. For these finance leases, the carrying amount of the right-of-use asset and the lease liability at January 1, 2019 were determined at the carrying amount of the lease asset and lease liability under IAS 17 immediately before that date.
The impact on transition is summarized below .

												
 	December 31, 2018		 	IFRS 16 Adjustment		 	January 1, 2019		
 	 	 	 	 	 	
Lease assets presented in property, plant and equipment                                    	$	11.3		 	$	9.4		 	$	20.7		
Lease liabilities – current                                                     	3.0		 	2.7		 	5.5		
Lease liabilities – non-current                                              	6.5		 	6.2		 	12.7		
Accounts receivable and other	81.0		 	(0.6	)	 	80.4		

On adoption of IFRS 16, the Company excluded certain arrangements which management concluded were not within the scope of IFRS 16 because they are arrangements for the use of land that grant the Company the right to explore, develop, produce or otherwise use the mineral resource contained in that land. A reconciliation of lease commitments previously reported and the amount of the lease liability recognized is as follows:

				
 	January 1, 2019		
 	 	
Operating lease commitments at December 31, 2018	$	64.7		
Exclusion of arrangements to explore for or use minerals	(53.2	)	
Leases with low value at January 1, 2019	(1.7	)	
Leases with less than 12 months of remaining lease term at January 1, 2019	(0.9	)	
Arrangements reassessed as leases	3.1		
Effect of discounting using the incremental borrowing rate at January 1, 2019	(3.2	)	
Lease liabilities recognized as IFRS 16 adjustment at January 1, 2019	$	8.8		

	
			
 	 	31	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

The following is the new accounting policy for leases under IFRS 16:
A contract is or contains a lease when the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration.
The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, and subsequently at cost less any accumulated depreciation and impairment losses, and is adjusted for certain re-measurements of the lease liability. The cost of the right of use asset includes the amount of the initial measurement of the lease liability, any lease payments made at or before the commencement date, less any lease incentives received, any initial direct costs; and if applicable, an estimate of costs to be incurred by the Company in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease .
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. The incremental borrowing rate reflects the rate of interest that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.
The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is re-measured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimate of the amount expected to be payable under a residual value guarantee, or as appropriate, changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised. The Company applies judgment to determine the lease term for some lease contracts which contain renewal options.
The Company does not recognize right-of-use assets and lease liabilities for leases of low-value assets, leases with lease terms that are less than 12 months and arrangements for the use of land that grant the Company the right to explore, develop, produce or otherwise use the mineral resource contained in that land. Lease payments associated with these arrangements are instead recognized as an expense over the term on either a straight-line basis, or another systematic basis if more representative of the pattern of benefit. The Company applies judgment in determining whether an arrangement grants the Company the right to explore, develop, produce or otherwise use the mineral resource contained in that land.
		
b)	IFRIC 23 'Uncertainty over Income Tax Treatments'	
This interpretation sets out how to determine the accounting tax position when there is uncertainty over income tax treatments. At January 1, 2019, the Company adopted this standard and there was no impact on its unaudited condensed consolidated interim financial statements.

	
			
 	 	32	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Internal Controls over Financial Reporting
Management, including the CEO and CFO, is responsible for establishing and maintaining adequate internal control over financial reporting, as such term as defined in Rule 13a-15(f) of the Exchange Act of 1934 and NI 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings , and uses the Committee of Sponsoring Organizations of the Treadway Commission (2013) framework on Internal Control - Integrated Framework (2013) to evaluate the effectiveness of the Company’s internal controls over financial reporting. The Company’s internal control over financial reporting may not prevent or detect all misstatements because of inherent limitations. Additionally, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because changes in conditions or deterioration in the degree of compliance with the Company’s policies and procedures. Based on this assessment and the material weakness in internal controls outlined below, Management concluded that the Company’s internal controls over financial reporting were not effective as of December 31, 2018.
A material weakness is a control deficiency, or combination of control deficiencies, such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements would not be prevented or detected.
During the 2018 year-end audit process, a material weakness was identified in internal controls performed by Management in their evaluation of impairment of goodwill and mining property, plant and equipment; specifically, the review controls performed failed to detect an error in the application of discounting to the cash flow models used in the estimation of fair value less costs of disposal. Internal controls were not effective to ensure consistent and correct application of mid-period discounting as used in prior periods. This resulted in a $39.5 million overstatement of the impairment charge initially recorded to property, plant and equipment in respect of the Company’s Olympias cash generating unit as at December 31, 2018. This overstatement was corrected in the Company’s financial statements prior to issuance by reducing the impairment charge in Q4 2018 from $370 million to $330 million ($248 million net of deferred tax recovery). There was no misstatement to prior period published consolidated financial statements.
Management’s Remediation Plan
Management believes this material weakness in internal controls is an isolated event and is not pervasive.
Management's remediation plan has been implemented and includes strengthening of the controls and processes to track and approve changes in the impairment models, particularly those relating to convention changes, and updating the control precision levels pertaining to logged changes to the impairment analysis.
Changes in Internal Control over Financial Reporting
There have been no changes in the Company’s internal control over financial reporting during the quarter ended June 30, 2019 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting, other than the identification of the material weakness identified as at year ended December 31, 2018, and the associated remediation plan enhancements to the Company's internal control over financial reporting.
Limitations of Controls and Procedures
Management, including the CEO and CFO, believe that any disclosure controls and procedures or internal controls over financial reporting, no matter how well conceived and operated can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, they cannot provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been prevented or detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by unauthorized override of the control. The design of any systems of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Accordingly, because of the inherent limitations in a cost effective control system, misstatements due to error or fraud may occur and not be detected.

	
			
 	 	33	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Qualified Person
Mineral resources which are not mineral reserves do not have demonstrated economic viability. Except as otherwise noted, Paul Skayman, FAusIMM, the Company's Chief Operating Officer, is the Qualified Person under NI 43-101 responsible for preparing and supervising the preparation of the scientific or technical information contained in this MD&A and verifying the technical data disclosed in this document relating to the Company's operating mines and development projects.

Forward-Looking Statements and Information
Certain of the statements made and information provided in this MD&A 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 MD&A 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, including higher heap leach recoveries at Kisladag, 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, planned capital and exploration expenditures; conversion of mineral resources to mineral reserves, our expectation as to our future financial and operating performance, including expectations around generating significant free cash flow, 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.
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, 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 MD&A.
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: 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; additional funding requirements; currency fluctuations; community and non-governmental organization actions; speculative nature of gold exploration; dilution; share price volatility; competition; loss of key employees; and defective title to mineral claims or properties, as well as those risk

	
			
 	 	34	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

factors discussed in the section titled “Managing Risk” above. The reader is also directed to carefully review the detailed risk discussion in our most recent AIF filed in respect of the year-ended December 31, 2018 filed on SEDAR under the Company's name, for a fuller understanding of the risks and uncertainties that affect the Company’s business and operations.
Forward-looking statements and information is designed to help you understand management’s current views of our near and longer term prospects, and it may not be appropriate for other purposes.
There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change.

Cautionary Note to US Investors Concerning Estimates of Measured, Indicated and Inferred Resources
The terms “mineral resource”, “measured mineral resource”, “indicated mineral resource”, “inferred mineral resource” used herein are Canadian mining terms used in accordance with NI 43-101 under the guidelines set out in the Canadian Institute of Mining and Metallurgy and Petroleum (the “CIM”) Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time. These definitions differ from the definitions under SEC Industry Guide 7. In the United States, under SEC Industry Guide 7, 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.
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 SEC Industry guide 7 and have historically not been permitted to be used in reports and registration statements filed with the SEC. As such, information contained herein concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by U.S. companies who report pursuant to SEC Industry Guide 7.
Accordingly, information herein containing descriptions of our mineral deposits may not be comparable to similar information made public by US companies pursuant to Industry Guide 7.

	
			
 	 	35	

 

			
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018  	 		

Corporate Information
Directors

		
George Albino 2, 3	Chair of the Board	
George Burns     	President and Chief Executive Officer	
Teresa Conway 1, 2	Independent Director	
Pamela Gibson 1, 3	Independent Director	
Geoffrey Handley 2, 4	Independent Director	
Michael Price 1, 4	Independent Director	
Steven Reid 2, 4     	Independent Director	
John Webster 1, 3	Independent Director	

Board Committees

1.	Audit Committee	
		
2.	Compensation Committee	
		
3.	Corporate Governance & Nominating Committee	
		
4.	Sustainability Committee	

Officers and Management

		
George Burns	President and Chief Executive Officer	
Philip Yee	Executive VP and Chief Financial Officer    	
Paul Skayman	Executive VP and Chief Operating Officer	
Jason Cho	Executive VP and Chief Strategy Officer	
Tim Garvin	Executive VP and General Counsel	
Shane Williams	Senior VP Capital Projects and Greece & Quebec Operations	
Christos Balaskas	VP and General Manager, Greece	
David Bickford     	VP and General Manager, Turkey	
Nicolae Stanca	VP and General Manager, Romania	
Lincoln Silva	VP and General Manager, Brazil	
Cara Allaway	VP Finance	
Peter Lewis	VP Exploration	
Andor Lips	VP European Strategy & Corporate Sustainability	
Lisa Ower     	VP Human Resources	

	
		
Corporate Head Office	Investor Relations	
1188 Bentall 5	Peter Lekich, Manager, Investor Relations	
550 Burrard Street	T: +1 604 687 4018	
Vancouver, BC	E: peter.lekich@eldoradogold.com	
V6C 2B5 Canada	 	
www.eldoradogold.com	 	
 	 	
Auditors	Registrar and Transfer Agent	
KPMG LLP	Computershare Investor Services	
777 Dunsmuir Street	100 University Avenue	
Vancouver, BC	8th Floor, North Tower	
V7Y 1K3 Canada	Toronto, Ontario	
 	M5J 2Y1 Canada	

	
			
 	 	36	

Exhibit 99.3

Form 52-109F2
Certification of Interim Filings
Full Certificate

I, George Burns, President & Chief Executive Officer of Eldorado Gold Corporation certify the following:

1.	Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Eldorado Gold Corporation (the “issuer”) for the interim period ended June 30, 2019 .	

2.	No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.	

3.	Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.	

4.	Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.	

5.	Design:  Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings	

(a)	designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that	

(i)	material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and	

(ii)	information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and	

(b)	designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.	

5.1	Control framework:  The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013) (COSO).	

5.2	ICFR - material weakness relating to design: The issuer has disclosed in its interim MD&A for each material weakness relating to design existing at the end of the interim period	

(a)	a description of the material weakness;	

		
(b)	the impact of the material weakness on the issuer’s financial reporting and its ICFR; and	

(c)	the issuer’s current plans, if any, or any actions already undertaken, for remediating the material weakness.	

5.3	Limitation on scope of design:  N/A	

6.	Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2019 and ended on June 30, 2019 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.	

Date: August 1, 2019

/s/ George Burns
George Burns
President & Chief Executive Officer

Exhibit 99.4

Form 52-109F2
Certification of Interim Filings
Full Certificate

I, Philip Yee, Executive Vice President & Chief Financial Officer of Eldorado Gold Corporation certify the following:

1.	Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Eldorado Gold Corporation (the “issuer”) for the interim period ended June 30, 2019 .	

2.	No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.	

3.	Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.	

4.	Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.	

5.	Design:  Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings	

(a)	designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that	

(i)	material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and	

(ii)	information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and	

(b)	designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.	

5.1	Control framework:  The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013) (COSO).	

5.2	ICFR - material weakness relating to design: The issuer has disclosed in its interim MD&A for each material weakness relating to design existing at the end of the interim period	

(a)	a description of the material weakness;	

		
(b)	the impact of the material weakness on the issuer’s financial reporting and its ICFR; and	

(c)	the issuer’s current plans, if any, or any actions already undertaken, for remediating the material weakness.	

5.3	Limitation on scope of design:  N/A	

6.	Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2019 and ended on June 30, 2019 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.	

Date: August 1, 2019

/s/ Philip Yee
Philip Yee
Executive Vice President & Chief Financial Officer