Eldorado Gold Corporation

TSX : ELD
NYSE : EGO


Eldorado Gold Corporation

August 02, 2013 07:55 ET

Eldorado Gold Corporation: 2013 Second Quarter Financial and Operating Results

Increased Production and Revenue at Lower Costs

(all figures in United States dollars unless otherwise noted)

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 2, 2013) - Paul N. Wright, Chief Executive Officer of Eldorado Gold Corporation, (TSX:ELD)(NYSE:EGO) ("Eldorado" the "Company" or "we") is pleased to report on the Company's financial and operational results for the second quarter ended June 30, 2013. Profit attributable to shareholders of the Company for the quarter was $43.3 million or $0.06 per share compared to $46.6 million or $0.07 per share for the same quarter in 2012.

"During the second quarter Eldorado produced 183,971 ounces of gold at an average cash operating cost of $478 per ounce, a 31% increase over Q2 2012 gold production. Our gold mines continue to perform to plan and generate significant cash flows," said Paul Wright, CEO of Eldorado Gold. "With its strong balance sheet and comparatively low cost gold mining operations, Eldorado is well positioned to confront the recent weakness in gold prices."

Second Quarter Summary Results and Corporate Developments

  • Gold production of 183,971 ounces at an average cash operating cost of $478 per ounce (Q2 2012 gold production - 140,694 ounces at $480 per ounce).
  • Gold sales of 176,260 ounces at an average gold price of $1,382 per ounce (Q2 2012 sales of 132,919 ounces at an average gold price of $1,612).
  • Continued strong cash generation from operating activities before changes in non-cash working capital of $84.9 million (Q2 2012 - $82.1 million).
  • On August 1, 2013, the Company declared that it will pay an eligible dividend of Cdn$0.05 per Common Share on August 26, 2013 to the holders of the Company's outstanding Common Shares as of the close of business on the record date of August 15, 2013.

Outlook

In light of the recent significant decline in gold price the Company has modified its operating plan for 2013. Exploration spending for 2013 has been reduced from $98.5 million to $51.0 million with an emphasis on mine site and brownfields exploration. Capital spending has been revised down from $670.0 million to $430.0 million. The full Kisladag expansion as envisaged will be deferred pending improvement in metal prices, while the initial production from Skouries, Perama Hill and Certej is projected to be delayed by one year. Gold production for 2013 is forecast to be 745,000 ounces of gold with cash costs of $520/oz. This is in line with original guidance provided of 705,000 - 760,000 ounces at cash costs of $515-530/oz.

Amendment to the Dividend Policy

Considering our revised capital program over the next two years and projected cash flows from our operating mines at current gold prices, we have revised the gradation of our existing dividend policy to provide the following fixed dollar amount per ounce of gold sold.

Realised Gold Price
(US$/oz)
Dividend
(CDN$/oz)
$1,251 - $1,399 $25
$1,400 - $1,549 $50
$1,550 - $1,599 $75
$1,600 - $1,649 $100
$1,650 - $1,699 $125
$1,700 - $1,749 $150
$1,750 - $1,849 $175
$1,850 - $1,999 $225

Review of Financial Results

Summarized Financial Results - quarter ended June 30, 2013 2012
Revenues (millions) $ 266.9 $ 244.2
Gold Revenues (millions) $ 243.6 $ 214.2
Gold sold (ounces) 176,260 132,919
Average realized gold price ($/ounce) $ 1,382 $ 1,612
Cash operating costs ($/ounce sold) (1) $ 478 $ 480
Total cash cost ($ per ounce sold) (1) $ 536 $ 550
Gross profit from gold mining operations (1) (millions) $ 117.2 $ 118.7
Profit attributable to shareholders of the Company (millions) $ 43.3 $ 46.6
Earnings per share attributable to shareholders of the Company - Basic ($/share) $ 0.06 $ 0.07
Earnings per share attributable to shareholders of the Company - Diluted ($/share) $ 0.06 $ 0.07
Cash flow from operating activities before changes in non-cash working capital(1) (millions) $ 84.9 $ 82.1

(1) The Company has included non-IFRS performance measures such as cash operating costs, total cash costs, earnings from gold mining operations and cash flow from operations before changes in non-cash working capital throughout this document. These are non-IFRS measures. Please see page 9 of the Management Discussion and Analysis for discussion of non-IFRS measures.

Net income for the quarter was $43.3 million (or $0.06 per share), compared with $46.6 million (or $0.07 per share) in the second quarter of 2012. Higher gold sales volumes offset lower gold prices resulting in higher revenues from gold mining operations year over year. The increase year over year in gold revenues was offset by higher production costs and depreciation, depletion and amortization from gold mining operations as a result of higher sales volumes. Other items affecting net income for the quarter included $5.9 million in foreign exchange losses (second quarter 2012 - $0.8 million loss), and $11.1 million in interest and financing costs (second quarter 2012 - $1.4 million). The foreign exchange losses related to bank deposits in foreign currencies in Turkey and Canada. The effective tax rate of 36% fell from a rate of 43% in the second quarter of 2012 mainly as a result of the impact of the recognition of investment tax credits in Turkey.

Operations Update

Kisladag, Turkey

Operating Data - quarter ended March 31, 2013 2012
Tonnes placed on pad 3,301,333 3,259,574
Average treated head grade (grams per tonne) 1.26 1.30
Gold (ounces)
Produced 76,735 61,575
Sold 76,680 61,991
Cash operating costs (per ounce sold) $ 327 $ 333
Total cash costs (per ounce sold) $ 348 $ 357
Financial Data (millions)
Gold revenues $ 108.6 $ 99.7
Depreciation and depletion $ 3.6 $ 2.6
Gross profit - gold mining operations $ 77.6 $ 74.0
Capital expenditure on mining interests $ 35.3 $ 47.7

Gold production at Kisladag during the second quarter of 2013 was higher than the same quarter of 2012 mainly due to the stacking and leaching sequence. Capital expenditures during the quarter included waste stripping, mining equipment and construction activities associated with the Phase IV expansion.

Efemcukuru, Turkey

Operating Data - quarter ended March 31, 2013 20121
Tonnes Milled 109,349 95,131
Average treated head grade (grams per tonne) 9.28 9.60
Average Recovery Rate (to Concentrate) 94.0 % 92.9 %
Gold (ounces)
Produced 26,289 8,222
Sold 25,187 -
Cash operating costs (per ounce sold) $ 519 -
Total cash costs (per ounce sold) $ 537 -
Financial Data (millions)
Gold revenues $ 31.6 -
Depreciation and depletion $ 5.3 -
Gross profit - gold mining operations $ 12.2 -
Capital expenditure on mining interests $ 6.8 $ 15.5

1 Ounces produced in 2012 were pre-commercial

During the quarter, Efemcukuru recovered 26,289 ounces of gold in concentrate of which 25,187 was shipped to the commercial refinery. Efemcukuru was undergoing commissioning during the second quarter of 2012. The mine and mill benefited during the quarter from modifications made to plant and ancillary equipment which increased throughput. By the end of the quarter, the mine and plant were operating at expected capacity. Capital expenditures during the quarter included underground development as well as plant upgrades and improvements.

Tanjianshan, China

Operating Data - quarter ended March 31, 2013 2012
Tonnes Milled 273,065 245,456
Average treated head grade (grams per tonne) 3.50 3.73
Average Recovery Rate 83.6 % 84.1 %
Gold (ounces)
Produced 27,938 27,172
Sold 27,938 27,172
Cash operating costs (per ounce sold) $ 398 $ 432
Total cash costs (per ounce sold) $ 577 $ 621
Financial Data (millions)
Gold revenues $ 38.4 $ 43.9
Depreciation and depletion $ 6.7 $ 6.3
Gross profit - gold mining operations $ 15.2 $ 20.6
Capital expenditure on mining interests $ 3.2 $ 2.8

Gold production at Tanjianshan during the second quarter of 2013 was slightly higher than the same quarter of 2012 as a result of additional mill throughput, although partially offset by lower head grades and recovery rates. Cash operating costs per ounce decreased from the second quarter 2012 slightly. Capital spending included exploration activities and process improvements.

Jinfeng, China

Operating Data - quarter ended March 31, 2013 2012
Tonnes Milled 336,707 337,560
Average treated head grade (grams per tonne) 3.33 2.68
Average Recovery Rate 84.5 % 85.3 %
Gold (ounces)
Produced 28,889 25,630
Sold 28,993 25,661
Cash operating costs (per ounce sold) $ 757 $ 786
Total cash costs (per ounce sold) $ 845 $ 858
Financial Data (millions)
Gold revenues $ 40.8 $ 41.6
Depreciation and depletion $ 8.1 $ 6.6
Gross profit - gold mining operations $ 8.3 $ 13.0
Capital expenditure on mining interests $ 15.4 $ 5.9

Gold production at Jinfeng in the second quarter of 2013 was higher than the same quarter of 2012 due to higher head grades. The ore zone in the open pit was accessed during the quarter and contributed to the improved head grade. Capital spending during the quarter included open pit stripping, underground mine development and process improvements.

White Mountain, China

Operating Data - quarter ended March 31, 2013 2012
Tonnes Milled 203,033 188,038
Average treated head grade (grams per tonne) 3.25 3.60
Average Recovery Rate 87.0 % 86.9 %
Gold (ounces)
Produced 17,462 18,095
Sold 17,462 18,095
Cash operating costs (per ounce sold) $ 742 $ 622
Total cash costs (per ounce sold) $ 781 $ 666
Financial Data (millions)
Gold revenues $ 24.2 $ 30.0
Depreciation and depletion $ 6.6 $ 5.7
Gross profit - gold mining operations $ 3.9 $ 11.1
Capital expenditure on mining interests $ 5.8 $ 5.5

Gold production at White Mountain in the second quarter of 2013 was lower than in the same period of 2012. This decrease was largely a result of lower head grades. Cash operating costs per ounce increased due to increased contract miner and plant repair costs. Capital spending this quarter included underground development, exploration, process plant improvements and construction of a new mobile maintenance work shop.

Vila Nova, Brazil

Operating Data - quarter ended March 31, 2013 2012
Tonnes Processed 179,864 176,418
Iron Ore Produced 155,172 152,965
Average Grade (% Fe) 60.1 % 64.4 %
Iron Ore Tonnes
Sold 81,874 172,024
Average Realized Iron Ore Price $ 106 $ 85
Cash Costs (per tonne sold) $ 74 $ 62
Financial Data (millions)
Revenues $ 8.7 $ 14.7
Depreciation and depletion $ 0.9 $ 1.4
Gross profit - gold mining operations $ 1.8 $ 2.7
Capital expenditure on mining interests $ 0.2 $ 0.1

Iron ore production in the second quarter of 2013 increased 1% at Vila Nova as compared to the same quarter of 2012. Iron ore sales were 52% lower as a result of the incident that occurred at the Anglo-Ferrous port facility during the quarter. While the Anglo-Ferrous port facility remains closed, Vila Nova has been shipping reduced quantities of iron ore through the public port in Santana City.

Stratoni, Greece

Operating Data - quarter ended March 31, 2013 20121
Tonnes ore mined (wet) 60,109 66,529
Tonnes ore processed (dry) 62,331 64,272
Pb grade (%) 6.57 % 6.58 %
Zn grade (%) 9.38 % 10.06 %
Ag grade (g/t) 173 172
Tonnes of concentrate produced 16,054 17,278
Tonnes of concentrate sold 16,783 15,821
Average realized concentrate price (per tonne) $ 781 $ 893
Cash Costs (per tonne of concentrate sold) $ 829 $ 593
Financial Data (millions)
Revenues $ 13.1 $ 13.3
Depreciation and depletion $ 2.1 $ 1.9
Earnings from operations $ -3.0 $ 1.9
Capital expenditure on mining interests $ 0.5 $ 2.5

1 Stratoni operating and financial data for 2012 shown in the table above reflect operations subsequent to February 24, 2012, the date of the European Goldfields Ltd. acquisition.

During the second quarter, Stratoni mined 60,109 tonnes of run-of-mine ore and produced 16,054 tonnes of lead and zinc concentrate at an average cash cost of $829 per tonne of concentrate sold. During the same period, Stratoni sold 16,783 tonnes of concentrate at an average price of $781 per tonne.

Olympias, Greece

During the second quarter, Olympias treated 116,972 tonnes of tailings and produced 6,658 payable gold ounces. Commissioning of the plant continued during the quarter with commercial production expected during the third quarter, 2013. Capital spending during the quarter included underground decline development, underground rehabilitation and process plant improvements.

Development Projects Update

Skouries, Greece

Clearing, grubbing and grading of the plant site area was ongoing. Site clearing and geotechnical drilling on the tailings dam area continued during the quarter. A review of the tailings dam construction materials and methodology was completed with the goal of optimizing the cost and time required to complete the tailings dam. Progress continued to be made on the underground decline during the quarter.

Olympias, Greece

Ground water inflows were intersected in the decline from Stratoni to the Olympias deposit and limited the advance during the quarter. A grouting company was brought in to deal with the inflow. Rehabilitation of the existing underground mine continued during the quarter.

Perama Hill, Greece

Final approval of the Environmental Impact Assessment ("EIA") for Perama Hill is expected during the second half of 2013. Approval of the EIA will allow construction of the initial infrastructure to commence and is required in order to obtain the permits to commence full construction. Preliminary engineering continued on the project during the quarter with completion expected in the third quarter this year. Metallurgical testwork to confirm and optimise the process will be completed during the third quarter this year, with detailed engineering expected to begin shortly thereafter. Geotechnical drilling was completed during the quarter in order to examine the foundation conditions for the plant and tailings dump sites. In addition, drilling began in the open pit area to reconfirm the geotechnical conditions used in the feasibility pit slope design.

Certej, Romania

Geotechnical drilling was carried out during the quarter to provide data for pit slope stability and soil analyses. Metallurgical testing was conducted on samples from recently drilled extensions to the ore zones. Extensive flotation testing was carried out to confirm results from previous work and to generate concentrate material for oxidation testing. Results of the testing will be used to finalize the process design during the third quarter. Engineering work began to establish alternatives for supply of power to the site from the national grid and to rehabilitate the water supply lines from the Mures River. Work began on construction of an alternate access road to the property.

Tocantinzinho, Brazil

Permitting activities continued during the quarter at both the state and federal levels. Project engineers continued to focus on reduction of capital requirements in order to optimize the project, including consideration of Semi-Autogenous Grind ("SAG") milling as opposed to three-stage crushing. Cost reductions have been generated through changes to the design of the tailings management facility and waste dump as well as optimization of earthmoving for the plant and administration sites. There is also the potential to reduce capital costs further by utilising contract miners. Preliminary discussions are ongoing with mining contractors for both short-term and long-term mining contracts. The mine plan is scheduled to be updated by the end of this year. Site activities are focused on site characterization data collection from established points. Field surveys along the logging road are ongoing. Non-essential field work has been cancelled.

Eastern Dragon, China

Eastern Dragon remained on care and maintenance pending resolution of permitting issues. Site management worked with the local authorities to maintain local permits and permissions in good standing. Work continued on preparing the necessary paperwork to submit to the National Development and Reform Commission ("NDRC"), as well as determining the timeline for review and approval.

Exploration Update

In the second quarter approximately 65,000 metres of exploration drilling were completed at the company's operations, development projects and exploration targets. In Greece, sterilization drilling was completed at Perama Hill and the 2013 resource drilling program commenced at the Piavitsa project. In Romania, drilling focused on resource expansion and infill drilling at the Certej deposit. In Turkey, drilling was completed on several targets at the Efemcukuru minesite and at the Ardala/Salinbas exploration project. Drilling in China included resource expansion programs at the Jinfeng, White Mountain and Tanjianshan mine sites and on exploration targets peripheral to the Jinfeng and Tanjianshan mines. In Brazil, resource expansion drilling was completed at the Vila Nova minesite and an initial phase of drilling was completed at the Chapadinha early-stage exploration project.

About Eldorado

Eldorado is a gold producing, exploration and development company actively growing businesses in Turkey, China, Greece, Brazil and Romania. With our international expertise in mining, finance and project development, together with highly skilled and dedicated staff, we believe that our company is well positioned to grow in value as we create and pursue new opportunities.

ON BEHALF OF ELDORADO GOLD CORPORATION

Paul N. Wright, Chief Executive Officer

Eldorado will host a conference call to discuss the 2013 Second Quarter Financial and Operating Results on Friday, August 2, 2013 at 11:30 a.m. EDT (8:30 a.m. PDT). You may participate in the conference call by dialling 416-340-9432 in Toronto or 1-888-340-9642 toll free in North America and asking for the Eldorado Conference Call with Chairperson: Paul Wright, CEO of Eldorado Gold.

The call will be available on Eldorado's website. www.eldoradogold.com. A replay of the call will be available until August 9, 2013 by dialling 905-694-9451 in Toronto or 1-800-408-3053 toll free in North America and entering the Pass code: 5235773.

Certain of the statements made herein may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements or information herein include, but are not limited, to the Company's Second Quarter, 2013 Financial and Operating Results.

Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. We have made certain assumptions about the forward-looking statements and information and even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: gold price volatility; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; mining operational and development risk; litigation risks; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment; currency fluctuations; speculative nature of gold exploration; global economic climate; dilution; share price volatility; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property, as well as those factors discussed in the sections entitled "Forward-Looking Statements" and "Risk Factors" in the Company's Annual Information Form & Form 40-F dated March 28, 2013.

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 GOLD
Q2 2013 Gold Production Highlights (in US$)
First
Quarter
2013
Second
Quarter
2013
Second
Quarter
2012
First
Six Months
2013
First
Six Months 2012
Gold Production
Ounces Sold 189,346 176,260 132,919 365,606 283,580
Ounces Produced(1) 163,768 183,971 140,694 347,739 296,229
Cash Operating Cost ($/oz)(2),(4),(5) 505 478 480 492 465
Total Cash Cost ($/oz)(3),(4),(5) 567 536 550 552 539
Realized Price ($/oz - sold) 1,622 1,382 1,612 1,506 1,662
Kişladağ Mine, Turkey
Ounces Sold 70,250 76,680 61,991 146,930 127,155
Ounces Produced 70,221 76,735 61,575 146,956 127,282
Tonnes to Pad 2,915,508 3,301,333 3,259,574 6,216,841 6,400,066
Grade (grams / tonne) 1.29 1.26 1.30 1.28 1.21
Cash Operating Cost ($/oz)(4),(5) 334 327 333 331 336
Total Cash Cost ($/oz)(3),(4),(5) 359 348 357 353 366
Efemcukuru Mine, Turkey
Ounces Sold 50,291 25,187 - 75,478 -
Ounces Produced 19,856 26,289 8,222 46,145 12,515
Tonnes Milled 86,879 109,349 95,131 196,228 165,777
Grade (grams / tonne) 8.47 9.28 9.60 8.91 9.23
Cash Operating Cost ($/oz)(4),(5) 582 519 - 561 -
Total Cash Cost ($/oz)(3),(4),(5) 619 537 - 592 -
Tanjianshan Mine, China
Ounces Sold 26,207 27,938 27,172 54,145 55,988
Ounces Produced 26,207 27,938 27,172 54,145 55,988
Tonnes Milled 247,061 273,065 245,457 520,126 508,249
Grade (grams / tonne) 3.74 3.50 3.73 3.61 3.87
Cash Operating Cost ($/oz)(4),(5) 442 398 432 419 419
Total Cash Cost ($/oz)(3),(4),(5) 636 577 621 605 613
Jinfeng Mine, China
Ounces Sold 21,683 28,993 25,661 50,676 60,858
Ounces Produced 21,742 28,889 25,630 50,631 60,865
Tonnes Milled 351,901 336,707 337,560 688,608 706,316
Grade (grams / tonne) 2.43 3.33 2.68 2.87 2.93
Cash Operating Cost ($/oz) (4),(5) 832 757 786 789 703
Total Cash Cost ($/oz) (3),(4),(5) 930 845 858 881 776
White Mountain Mine, China
Ounces Sold 20,915 17,462 18,095 38,377 39,579
Ounces Produced 20,915 17,462 18,095 38,377 39,579
Tonnes Milled 198,934 203,033 188,038 401,967 346,152
Grade (grams / tonne) 3.80 3.25 3.60 3.52 3.99
Cash Operating Cost ($/oz) (4),(5) 634 742 622 683 579
Total Cash Cost ($/oz) (3),(4),(5) 679 781 666 726 624
Olympias, Greece
Ounces Sold - - - - -
Ounces Produced(1) 4,827 6,658 - 11,485 -
Tonnes Milled 89,112 116,972 - 206,084 -
Grade (grams / tonne) 3.97 3.80 - 3.86 -
Cash Operating Cost ($/oz)(4),(5) - - - - -
Total Cash Cost ($/oz)(3),(4),(5) - - - - -
(1) Ounces produced include pre-commercial production in Olympias.
(2) Cost figures calculated in accordance with the Gold Institute Standard.
(3) Cash Operating Costs, plus royalties and the cost of off-site administration.
(4) Cash operating costs and total cash costs are non-GAAP measures. See the section "Non-GAAP Measures" of this Review.
(5) Cash operating costs and total cash costs have been recalculated for prior quarters based on ounces sold.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars)
Note June 30, 2013 December 31, 2012
$ $
ASSETS
Current assets
Cash and cash equivalents 522,158 816,843
Term deposits 221,441 -
Restricted cash 261 241
Marketable securities 2,434 1,988
Accounts receivable and other 105,556 112,324
Inventories 217,109 220,766
1,068,959 1,152,162
Investments in associates 31,038 27,949
Deferred income tax assets 1,740 3,149
Restricted assets and other 44,238 31,846
Defined benefit pension plan 6,007 4,571
Property, plant and equipment 6,009,707 5,868,742
Goodwill 839,710 839,710
8,001,399 7,928,129
LIABILITIES & EQUITY
Current liabilities
Accounts payable and accrued liabilities 202,770 224,567
Current debt 6 12,624 10,341
215,394 234,908
Debt 6 583,973 582,974
Asset retirement obligations 80,696 79,971
Deferred income tax liabilities 7 951,979 816,941
1,832,042 1,714,794
Equity
Share capital 8 5,306,947 5,300,957
Treasury stock (11,775 ) (7,445 )
Contributed surplus 71,389 65,382
Accumulated other comprehensive loss (25,952 ) (24,535 )
Retained earnings 542,446 594,876
Total equity attributable to shareholders of the Company 5,883,055 5,929,235
Attributable to non-controlling interests 286,302 284,100
6,169,357 6,213,335
8,001,399 7,928,129
Approved on behalf of the Board of Directors
Robert R. Gilmore Director Paul N. Wright Director
The accompanying notes are an integral part of these consolidated financial statements.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Income Statements
(Expressed in thousands of U.S. dollars except per share amounts)
Three months ended Six months ended
June 30, June 30,
Note 2013 2012 2013 2012
$ $ $ $
Revenue
Metal sales 266,929 244,191 604,997 515,740
Cost of sales
Production costs 116,133 94,486 246,501 185,725
Depreciation and amortization 35,234 25,145 72,348 52,553
151,367 119,631 318,849 238,278
Gross profit 115,562 124,560 286,148 277,462
Exploration expenses 10,240 10,073 17,864 18,769
General and administrative expenses 18,239 19,665 34,725 35,827
Defined benefit pension plan expense 619 626 1,248 1,261
Share based payments 3,291 3,791 12,168 12,814
Acquisition costs 5 - 1,649 - 19,453
Foreign exchange loss (gain) 5,920 806 5,818 (301 )
Operating profit 77,253 87,950 214,325 189,639
Loss (gain) on disposal of assets (51 ) 659 (15) 446
Gain on marketable securities and other investments - - (21) (1,032 )
Loss on investments in associates 214 463 1,123 1,744
Other income (3,138 ) (1,431 ) (5,114) (2,377 )
Asset retirement obligation accretion 386 503 725 871
Interest and financing costs 11,061 1,446 21,562 2,134
Profit before income tax 68,781 86,310 196,065 187,853
Income tax expense 7 24,550 36,805 195,802 64,530
Profit for the period 44,231 49,505 263 123,323
Attributable to:
Shareholders of the Company 43,274 46,624 (2,189) 114,475
Non-controlling interests 957 2,881 2,452 8,848
Profit for the period 44,231 49,505 263 123,323
Weighted average number of shares outstanding
Basic 715,038 711,449 714,739 662,949
Diluted 715,426 713,050 715,256 664,634
Earnings per share attributable to shareholders of the Company:
Basic earnings per share 0.06 0.07 0.00 0.17
Diluted earnings per share 0.06 0.07 0.00 0.17
The accompanying notes are an integral part of these consolidated financial statements.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Comprehensive Income
(Expressed in thousands of U.S. dollars)
Three months ended Six months ended
June 30, June 30,
2013 2012 2013 2012
$ $ $ $
Profit for the period 44,231 49,505 263 123,323
Other comprehensive loss:
Change in fair value of available-for-sale financial assets (918 ) (1,024 ) (1,400 ) (1,137 )
Realized gains on disposal of available-for-sale financial assets transferred to net income - - (17 ) (24 )
Actuarial losses on defined benefit pension plans - (5,701 ) - (5,701 )
Total other comprehensive loss for the period (918 ) (6,725 ) (1,417 ) (6,862 )
Total comprehensive income (loss) for the period 43,313 42,780 (1,154 ) 116,461
Attributable to:
Shareholders of the Company 42,356 39,899 (3,606 ) 107,613
Non-controlling interests 957 2,881 2,452 8,848
Total comprehensive income (loss) for the period 43,313 42,780 (1,154 ) 116,461
The accompanying notes are an integral part of these consolidated financial statements.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Cash Flows
(Expressed in thousands of U.S. dollars)
Three months ended Six months ended
June 30, June 30,
Note 2013 2012 2013 2012
$ $ $ $
Cash flows generated from (used in):
Operating activities
Profit for the period 44,231 49,505 263 123,323
Items not affecting cash
Asset retirement obligation accretion 386 503 725 871
Depreciation and amortization 35,234 25,145 72,348 52,553
Unrealized foreign exchange loss (gain) 403 (877 ) 524 (363 )
Deferred income tax expense (recovery) 7 560 2,298 136,448 (6,688 )
Loss (gain) on disposal of assets (51 ) 659 (15 ) 446
Loss on investments in associates 214 463 1,123 1,744
Gain on marketable securities and other investments - - (21 ) (1,032 )
Share based payments 3,291 3,791 12,168 12,814
Defined benefit pension plan expense 619 626 1,248 1,261
84,887 82,113 224,811 184,929
Changes in non-cash working capital 11 (63,433 ) (123,116 ) (36,265 ) (142,657 )
21,454 (41,003 ) 188,546 42,272
Investing activities
Net cash received on acquisition of subsidiary 5 - - - 18,789
Purchase of property, plant and equipment (116,549 ) (114,598 ) (217,763 ) (167,112 )
Proceeds from the sale of property, plant and equipment 136 132 192 791
Proceeds on pre-production sales 10,900 13,958 15,228 20,022
Purchase of marketable securities - (2,152 ) - (2,152 )
Proceeds from the sale of marketable securities - - 332 230
Funding of non-registered supplemental retirement plan
investments, net - 20,509 - 14,486
Investments in associates - (2,716 ) (6,357 ) (3,412 )
Investment in term deposits (62,514 ) - (221,441 ) -
Decrease in restricted cash 15 (382 ) 5 (1,669 )
(168,012 ) (85,249 ) (429,804 ) (120,027 )
Financing activities
Issuance of common shares for cash 179 10,741 1,601 16,831
Dividend paid to non-controlling interests - (1,271 ) - (1,271 )
Dividend paid to shareholders - - (50,241 ) (49,880 )
Purchase of treasury stock (168 ) - (6,462 ) (6,011 )
Long-term and bank debt proceeds - 50,000 12,412 50,000
Long-term and bank debt repayments - (5,524 ) (10,354 ) (11,087 )
Loan financing costs 90 - (383 ) -
101 53,946 (53,427 ) (1,418 )
Net decrease in cash and cash equivalents (146,457 ) (72,306 ) (294,685 ) (79,173 )
Cash and cash equivalents - beginning of period 668,615 386,896 816,843 393,763
Cash and cash equivalents - end of period 522,158 314,590 522,158 314,590
The accompanying notes are an integral part of these consolidated financial statements.
Eldorado Gold Corporation
Unaudited Condensed Consolidated Statements of Changes in Equity
(Expressed in thousands of U.S. dollars)
Three months ended Six months ended
June 30, June 30,
Note 2013 2012 2013 2012
$ $ $ $
Share capital
Balance beginning of period 5,303,095 5,258,949 5,300,957 2,855,689
Shares issued upon exercise of share options, for cash 179 10,741 1,601 16,831
Transfer of contributed surplus on exercise of options 273 11,648 989 18,156
Shares issued on acquisition of European Goldfields Ltd. 5 - - - 2,380,140
Transfer of contributed surplus on exercise of deferred phantom units 3,400 1,030 3,400 11,552
Balance end of period 5,306,947 5,282,368 5,306,947 5,282,368
Treasury stock
Balance beginning of period (12,307 ) (8,457 ) (7,445 ) (4,018 )
Purchase of treasury stock (168 ) - (6,462 ) (6,011 )
Shares redeemed upon exercise of restricted share units 700 1,102 2,132 2,674
Balance end of period (11,775 ) (7,355 ) (11,775 ) (7,355 )
Contributed surplus
Balance beginning of period 71,827 80,289 65,382 30,441
Share based payments 3,935 3,935 12,528 12,150
Shares redeemed upon exercise of restricted share units (700 ) (1,102 ) (2,132 ) (2,674 )
Options issued on acquisition of European Goldfields Ltd. 5 - - - 31,130
Deferred phantom units granted on acquisition of European
Goldfields Ltd. - - - 29,105
Transfer to share capital on exercise of options and deferred phantom units (3,673 ) (12,678 ) (4,389 ) (29,708 )
Balance end of period 71,389 70,444 71,389 70,444
Accumulated other comprehensive loss
Balance beginning of period (25,034 ) (10,206 ) (24,535 ) (10,069 )
Other comprehensive loss for the period (918 ) (6,725 ) (1,417 ) (6,862 )
Balance end of period (25,952 ) (16,931 ) (25,952 ) (16,931 )
Retained earnings
Balance beginning of period 499,172 400,687 594,876 382,716
Dividends paid - - (50,241 ) (49,880 )
Profit (loss) attributable to shareholders of the Company 43,274 46,624 (2,189 ) 114,475
Balance end of period 542,446 447,311 542,446 447,311
Total equity attributable to shareholders of the Company 5,883,055 5,775,837 5,883,055 5,775,837
Non-controlling interests
Balance beginning of period 285,595 322,547 284,100 56,487
Profit attributable to non-controlling interests 957 2,881 2,452 8,848
Dividends declared to non-controlling interests - (9,399 ) - (9,399 )
Non-controlling interest acquired from European Goldfields Ltd. 5 - - - 260,093
Non-controlling interest buy out (250 ) - (250 ) -
Balance end of period 286,302 316,029 286,302 316,029
Total equity 6,169,357 6,091,866 6,169,357 6,091,866
The accompanying notes are an integral part of these consolidated financial statements.

Click here for the Unaudited Consolidated Financial Statements for the quarter ended June 30, 2013 in PDF: http://media3.marketwire.com/docs/ELD-FS-MDA-Q2-2013.pdf.

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