Eldorado Gold Corporation
TSX : ELD
NYSE : EGO
ASX : EAU

Eldorado Gold Corporation

March 18, 2010 19:28 ET

Eldorado Gold Corporation: 2009 Year End Financial Results

Gold sales up 29 percent; Cash Flow $0.38 per share; Earnings $0.26 per share

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 18, 2010) - (All figures in United States dollars, unless otherwise noted)

Paul N. Wright, President and Chief Executive Officer of Eldorado Gold Corporation, (TSX:ELD)(NYSE:EGO)(ASX:EAU) ("Eldorado" the "Company" or "we") is pleased to report on the Company's financial results for the fourth quarter and for the year ended December 31, 2009. Eldorado reported net income of $33.3 million or $0.08 per share for the quarter and for the year net income of $102.4 million or $0.26 per share. Eldorado reported cash generated from operating activities before changes in non-cash working capital of $56.6 million or $0.13 per share for the quarter and for the year of $146.9 million or $0.38 per share.

"This was a very successful quarter and year for Eldorado," stated Paul Wright. "We had record quarterly production with strong performance from both our Kisladag and Tanjianshan gold mines. And with the successful completion of our acquisition of Sino Gold and the continued development of our projects in Turkey, China and Greece, we are solidifying our position as one of the world's lowest cost gold producers. Our gold sales revenue increased by 29 percent to $358.5 million as we benefited from increased production and gold prices. Looking ahead, we anticipate 2010 production of 550,000 to 600,000 ounces of gold at a cash operating cost of between $385 and $400 per ounce."

Q4 2009 Highlights

- Produced 107,904 ounces of gold at our Tanjianshan and Kisladag mines at an average cash operating cost of $308 per ounce;

- Sold 131,068 ounces of gold at a realized average price of $1,103 per ounce;

- Reported earnings of $0.08 per share; and

- Completed our acquisition of Sino Gold Mining by purchasing all of Sino Gold's issued and outstanding shares - a transaction that values Sino Gold at approximately CDN$1.7 billion.

Financial Results

Eldorado's consolidated net income for the fourth quarter of 2009 was $33.3 million or $0.08 per share, compared with $28.2 million or $0.08 per share (excluding the gain on the sale of Sao Bento mine) in the fourth quarter of 2008. Net income for the twelve-month period ended December 31, 2009 was $102.4 million or $0.26 per share, compared to $163.7 million or $0.46 per share in 2008. Net income in 2008 included a gain on the sale of Sao Bento of $72.5 million or $0.20 per share. Eldorado cash generated from operating activities before changes in non-cash working capital for the fourth quarter of 2009 was $56.6 million or $0.13 per share compared with $27.3 million or $0.07 per share in the fourth quarter of 2008. Cash generated from operating activities before changes in non-cash working capital for the twelve month period ended December 31, 2009 was $146.9 million or $0.38 per share compared to $125.9 million or $0.35 per share in 2008.

Over the quarter, we sold 64 per cent more ounces of gold at a 38 percent increase in price as compared to the same period in 2008. In Q4 2009 we sold 131,068 ounces of gold at an average price of $1,103 per ounce, compared to 79,965 ounces at an average price of $800 per ounce in the fourth quarter of 2008.

Corporate Activities

Completion of Sino Gold acquisition

On December 15, 2009, we acquired all the remaining shares of Sino Gold that had not previously been held by us. With this acquisition, we have acquired Sino Gold's interests in the Jinfeng Gold mine (the second-largest gold mine in China) as well as the White Mountain Gold mine and the Eastern Dragon Gold project.

Operating Performance

Kisladag

During the quarter, we placed 3,679,685 tonnes of ore on the leach pad at an average grade of 0.86 grams of gold per tonne. We produced 70,131 ounces of gold at a cash cost of $296 per ounce, compared to production of 57,902 ounces of gold in the third quarter of 2009 and 60,753 ounces in the fourth quarter of 2008.

Tanjianshan

We produced 37,773 ounces of gold at a cash operating cost of $330 per ounce in the fourth quarter, up from 31,016 ounces in the third quarter and compared to 21,092 ounces in the fourth quarter of 2008. Gold production has increased with the commissioning of the roaster, and recoveries in the flotation circuit have increased from around 65 percent to over 80 percent.

Jinfeng

For the month of December 2009, Jinfeng produced 14,541 ounces of gold at a cash operating cost of $472 per ounce. During the month 136,054 tonnes were milled at an average grade of 3.97 grams per tonne gold.

White Mountain

For the month of December 2009, White Mountain produced 6,148 ounces of gold at a cash operating cost of $364 per ounce. The mine reported 58,074 tonnes were milled at an average grade of 4.26 grams per tonne gold.

Eldorado is a gold producing and exploration company actively growing businesses in Turkey, China, Brazil, Greece and the surrounding regions. We have four operating mines, two mines under construction, a project in the developing stages and an extensive exploration program with 125,000 meters of drilling planned for 2010. With our international expertise in mining, finance and project development, together with highly skilled and dedicated staff, we believe that Eldorado is well positioned to grow in value as we create and pursue new opportunities.

ON BEHALF OF ELDORADO GOLD CORPORATION

Paul N. Wright, President and Chief Executive Officer

Eldorado will host a conference call Friday March 19, 2010 to discuss the Year End 2009 Financial Results at 11:30 a.m. ET (8:30 a.m. PT). You may participate in the conference call by dialling 416-695-6622 in Toronto or 1-800-355-4959 toll free in North America and asking for the Eldorado Conference Call with Chairperson: Paul Wright, President and CEO of Eldorado Gold. The call will be available on Eldorado's website www.eldoradogold.com. A replay of the call will be available until March 26, 2010 by dialling 416-695-5800 in Toronto or 1-800-408-3053 toll free in North America and entering the Pass code 8574327.

Certain of the statements made herein may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Such forward-looking statements or information include, but are not limited to statements or information with respect to the Transaction and the impact of the implementation of the Transaction on Eldorado, its operations, financial position and gold production.

Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. We have made certain assumptions about the forward-looking statements and information and even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: the number of shares issued is subject to certain adjustments; gold price volatility; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; mining operational and development risk; litigation risks; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment; currency fluctuations; speculative nature of gold exploration; global economic climate; dilution; share price volatility; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property, as well as those factors discussed in the sections entitled "Forward-Looking Statements" and "Risk Factors" in the Company's Annual Information Form & Form 40-F dated March 31, 2009.

There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada and the U.S.

Eldorado Gold Corporation's common shares trade on the Toronto Stock Exchange (TSX:ELD) and the New York Stock Exchange (NYSE:EGO). Eldorado's CDIs trade on the Australian Securities Exchange (ASX:EAU).

Request for information packages:laurelw@eldoradogold.com



PRODUCTION HIGHLIGHTS

----------------------------------------------------------------------------
First Second Third Fourth Fourth
Quarter Quarter Quarter Quarter Quarter
2009 2009 2009 2009 2008 2009 2008
----------------------------------------------------------------------------

Gold Production

Ounces
Prod-
uced 61,426 84,572 88,918 128,593 81,845 363,509 308,802

Cash
Operating
Cost
($/oz)
(1,4) 296 300 297 329 298 309 257

Total
Cash
Cost
($/oz)
(2,4) 315 322 326 364 319 337 289

Total
Production
Cost
($/oz)
(3,4) 375 387 430 486 404 430 370

Realized
Price
($/oz -
sold) 909 927 957 1,103 800 995 876
----------------------------------------------------------------------------

Kisladag Mine, Turkey(5)

Ounces
Prod-
uced 46,192 62,985 57,902 70,131 60,753 237,210 190,334

Tonnes
to
Pad 2,084,714 2,428,611 2,523,546 3,679,685 2,371,101 10,716,556 7,555,881

Grade
(grams/
tonne) 1.34 1.18 1.22 0.86 1.34 1.11 1.27

Cash
Operating
Cost
($/oz)(4) 274 269 276 296 279 280 254

Total
Cash
Cost
($/oz)
(2,4) 276 271 278 298 281 282 256

Total
Production
Cost
($/oz)
(3,4) 315 309 336 354 314 330 291
----------------------------------------------------------------------------

Tanjianshan Mine, China

Ounces
Prod-
uced 15,234 21,587 31,016 37,773 21,092 105,610 118,468

Tonnes
Mill-
ed 228,066 231,874 257,730 256,828 216,273 974,498 858,829

Grade
(grams/
tonne) 3.97 5.63 5.73 5.81 4.33 5.31 5.31

Cash
Operating
Cost
($/oz)(4) 362 390 338 330 352 349 261

Total
Cash
Cost
($/oz)
(2,4) 432 470 414 424 429 432 343

Total
Production
Cost
($/oz)
(3,4) 557 616 604 670 664 623 496
----------------------------------------------------------------------------

Jinfeng Mine, China(6)

Ounces
Produced - - - 14,541 - 14,541 -

Tonnes
Milled - - - 136,054 - 136,054 -

Grade
(grams/
tonne) - - - 3.97 - 3.97 -

Cash
Operating
Cost
($/oz)(4) - - - 472 - 472 -

Total
Cash
Cost
($/oz)(2,4) - - - 516 - 516 -

Total
Production
Cost
($/oz)(3,4) - - - 623 - 623 -
----------------------------------------------------------------------------

White Mountain Mine, China(6)

Ounces
Produced - - - 6,148 - 6,148 -

Tonnes
Milled - - - 58,074 - 58,074 -

Grade
(grams/
tonne) - - - 4.26 - 4.26 -

Cash
Operating
Cost
($/oz)(4) - - - 364 - 364 -

Total
Cash Cost
($/oz)(2,4) - - - 400 - 400 -

Total
Production
Cost ($/oz)
(3,4) - - - 535 - 535 -
----------------------------------------------------------------------------

(1) Cost figures calculated in accordance with the Gold Institute Standard.
(2) Cash Operating Costs, plus royalties and the cost of off-site
administration.
(3) Total Cash Costs, plus foreign exchange gain or loss, depreciation,
amortization and reclamation expenses.
(4) Cash operating, total cash and total production costs are non-GAAP
measures. See the section "Non-GAAP Measures" of this Review.
(5) The Kisladag mine temporarily ceased operations on August 18, 2007 and
reopened on March 6, 2008.
(6) Jinfeng and White Mountain production for the period December 4 to
December 31, 2009 only.


Eldorado Gold Corporation
Consolidated Balance Sheets
--------------------------------------------------------------------------

(Expressed in thousands of U.S. dollars)

December 31, December 31,
2009 2008
$ $
Assets

Current assets
Cash and cash equivalents 265,369 61,851
Restricted cash (note 5 and 13(g)) 50,000 -
Marketable securities (note 6) 13,951 43,610
Accounts receivable and other (note 7) 32,041 36,109
Inventories (note 8) 129,197 86,966
Future income taxes (note 16) - 175
------------------------
490,558 228,711
Inventories (note 8) 31,534 -
Restricted assets and other (note 10) 8,265 6,111
Mining interests (note 11) 2,580,816 668,309
Goodwill (note 12) 324,935 2,238
------------------------
3,436,108 905,369
------------------------
------------------------

Liabilities

Current liabilities
Accounts payable and accrued liabilities 157,250 42,659
Debt - current (note 13) 56,499 139
Future income taxes (note 16) 4,264 1,097
------------------------
218,013 43,895
Debt - long-term (note 13) 134,533 -
Asset retirement obligations (note 14) 26,566 4,812
Future income taxes (note 16) 390,242 60,043
------------------------
769,354 108,750
------------------------

Non-controlling interests 26,144 4,799

Shareholders' Equity

Share capital (note 17(b)) 2,671,634 931,933
Contributed surplus (note 17(c)) 17,865 19,378
Accumulated other comprehensive income (note 17(d)) 2,227 (5,971)
Deficit (51,116) (153,520)
------------------------
2,640,610 791,820
------------------------
3,436,108 905,369
------------------------
------------------------

Subsequent events (note 13(g) and note 25)
Commitments and contingencies (note 20)

Approved on behalf of the Board of Directors

(Signed) Paul N. Wright Director (Signed) Robert R. Gilmore Director

See accompanying notes to the consolidated financial statements.


Eldorado Gold Corporation
Consolidated Statements of Operations and Deficit
For the years ended December 31,
--------------------------------------------------------------------------

(Expressed in thousands of U.S. dollars except per share amounts)

2009 2008
$ $

Revenue
Gold sales 358,467 277,723
Interest and other income 2,262 10,508
------------------------
360,729 288,231
------------------------

Expenses
Operating costs 132,464 92,004
Depletion, depreciation and amortization 38,658 25,995
General and administrative 32,530 38,299
Exploration 11,970 12,316
Mine standby costs 2,580 2,432
Asset retirement obligation costs (note 14) 291 3,108
Foreign exchange (gain) loss (2,966) 176
------------------------
215,527 174,330

Gain on disposal of assets (854) (70,774)
Gain on marketable securities (1,689) (2,475)
Interest and financing costs 824 2,940
Loss on derivative contract (note 9) - 2,956
------------------------
213,808 106,977
------------------------
Income before income taxes and
non-controlling interests 146,921 181,254
------------------------

Income tax (expense) recovery (note 16)
Current (44,862) (25,403)
Future 2,972 12,904
------------------------
(41,890) (12,499)
------------------------

Non-controlling interests (2,627) (5,099)
------------------------

Net income for the year 102,404 163,656
------------------------

Deficit, beginning of year (153,520) (317,176)
------------------------

Deficit, end of year (51,116) (153,520)
------------------------
------------------------

Weighted average number of shares outstanding
Basic 389,384 355,132
Diluted 391,707 356,308

Earnings per share
Basic income per share - US$ 0.26 0.46
Diluted income per share - US$ 0.26 0.46

See accompanying notes to the consolidated financial statements.


Eldorado Gold Corporation
Consolidated Statements of Cash Flows
For the years ended December 31,
--------------------------------------------------------------------------

(Expressed in thousands of U.S. dollars, unless otherwise stated)

2009 2008
$ $

Cash flows generated from (used in):
Operating activities
Net earnings for the year 102,404 163,656
Items not affecting cash
Asset retirement obligations costs 291 3,108
Depletion, depreciation and amortization 38,658 25,995
Unrealized foreign exchange loss (gain) 281 (3,950)
Future income taxes expense (recovery) (2,972) (12,904)
Gain on marketable securities (1,689) (2,475)
Gain on disposal of assets (854) (70,774)
Imputed interest and financing costs - 39
Stock-based compensation 9,091 11,866
Fair value of bonus cash award units (2,543) 1,815
Pension expense 1,689 1,478
Non-controlling interest 2,627 5,099
Loss (gain) on derivative contract - 2,956
------------------------
146,983 125,909
Property reclamation payments - (1,225)
Contractual severance payments - (953)
Changes in non-cash working capital (note 19) 45,059 (18,187)
------------------------
192,042 105,544
Investing activities
Mining interests
Acquisition of subsidiary net of
cash received (note 4) 54,179 7,479
Capital expenditures (106,614) (123,950)
Sales and disposals 35 5,214
Marketable securities
Purchases (3,967) (20,462)
Proceeds on disposals 42,770 25,737
Pension plan contributions (note 15) (1,856) (3,791)
Restricted cash 1,877 71,515
------------------------
(13,576) (38,258)
Financing activities
Capital stock
Issuance of common shares for cash 25,201 14,730
Dividend paid to non-controlling interest (149) (300)
Long-term and bank debt
Proceeds 4,983 5,000
Repayments (4,983) (70,879)
------------------------
25,052 (51,449)
------------------------
Net increase (decrease) in cash and
cash equivalents 203,518 15,837
Cash and cash equivalents - beginning of year 61,851 46,014
------------------------
Cash and cash equivalents - end of year 265,369 61,851
------------------------
------------------------

Supplementary cash flow information (note 19)

See accompanying notes to the consolidated financial statements.


Eldorado Gold Corporation
Consolidated Statements of Comprehensive Income
For the year ended December 31,
--------------------------------------------------------------------------

(Expressed in thousands of U.S. dollars, unless otherwise stated)

2009 2008
$ $

Net earnings for the year ended December 31, 102,404 163,656

Other comprehensive income (loss)
Unrealized gains (losses) on available-for-sale
investments - net of taxes of $320
(2008 - nil) (note 17(d)) 129,098 (6,431)
Reversal on acquisition of subsidiary
(note 4 (a)) (122,617) (153)
Realized losses (gains) on available-for-sale
investments (note 17(d)) 1,717 (61)
Other than temporary impairment charges - 460
------------------------
Comprehensive income for the year ended
December 31, 110,602 157,471
------------------------
------------------------

See accompanying notes to the consolidated financial statements.


Click here for Consolidated Financial Statements, Management's Discussion and Analysis PDF: http://media3.marketwire.com/docs/1006FSandMDA2009.pdf

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