Eldorado Gold Corp 6-K, filed May 1, 2020
Eldorado Gold Corp (EGO)
About this 6-K
Eldorado Gold Corp filed this 6-K on May 1, 2020.
FORM 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of May, 2020
Commission File Number 001-31522
| Eldorado Gold Corporation<br><br>(Translation of registrant's name into English) |
|---|
| 1188-550 Burrard Street<br><br><br>Bentall 5<br><br><br>Vancouver, B.C.<br><br><br>Canada V6C 2B5<br> (Address of<br>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 [X]
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.
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [ ] No [ X ]
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________
INCORPORATION BY REFERENCE
Exhibit 99.1 and 99.2 to this Form 6-K of Eldorado Gold Corporation (the "Company") is hereby incorporated by reference as an exhibit to the Registration Statement on Form F-10 (File No. 333-233055) of the Company, as amended or supplemented.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| ELDORADO GOLD CORPORATION | ||
|---|---|---|
| Date:<br>May 1, 2020 | By: | /s/ Karen Aram |
| Karen<br>Aram, Corporate Secretary |
Exhibits
| Exhibit No. | Description |
|---|---|
| 99.1 | Material Change<br>Report dated May 1, 2020 |
| 99.2 | Consent of Paul<br>Skayman, FAusIMM |
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ego_ex991
EXHIBIT 99.1
ELDORADO GOLD CORPORATION
FORM 51-102F3
MATERIAL CHANGE REPORT
Item 1.
Name and Address of Company
Eldorado Gold Corporation (“Eldorado” or the “Company”)
Suite 1188 – Bentall 5
550 Burrard Street
Vancouver, British Columbia V6C 2B5
Item 2.
Date of Material Change
April 30, 2020
Item 3.
News Release
A news release was disseminated via Global Newswire and filed on SEDAR on April 30, 2020.
Item 4.
Summary of Material Change
On April 30, 2020 Eldorado reported the Company’s financial and operational results for the first quarter of 2020.
Item 5.
Full Description of Material Change
On April 30, 2020 Eldorado reported the Company’s financial and operational results for the first quarter of 2020.
First Quarter 2020 and Subsequent Period Highlights
●
Proactive steps taken to manage the impact of the novel coronavirus ("COVID-19") pandemic; operations maintained in Turkey and Greece: The Company's mines in Turkey and Greece remained operational throughout Q1. Measures to prevent the spread of COVID-19 and ensure safe working environments were implemented across Eldorado's global sites.
●
Lamaque placed back into operations after temporary suspension, permit for increased underground production received: On March 25, 2020 in accordance with the Quebec government-mandated restrictions to address the COVID-19 pandemic in the province, the Company temporarily ceased mining and processing operations at Lamaque. Operations were restarted on April 15, 2020, however, exploration drilling activities continue to be curtailed in accordance with the mandated restrictions. The Company also received a Certificate of Authorization from the Quebec Ministry of Environment to allow for the expansion of Triangle underground mine production at Lamaque from 1,800 tonnes per day ("tpd") to 2,650 tpd.
1
●
Supporting our communities in response to COVID-19 pandemic: The Company has allocated an initial $500,000 of financial and in-kind support to local communities in Turkey, Canada, Greece, Romania and Brazil so that they may better respond to impacts of the pandemic. Donations include: personal protective equipment and sanitizing products, medical equipment for local hospitals, and food and other supplies for vulnerable populations.
●
Partial draw-down of credit facility as proactive measure: On March 30, 2020, the Company drew $150 million under its revolving credit facility as a proactive measure in light of the uncertainty surrounding the COVID-19 pandemic. The Company has no immediate need for the funds, however proceeds will be used for general corporate purposes, as required.
●
Steady production and 2020 annual guidance maintained: Gold production totalled 115,950 ounces in Q1 2020, an increase of 40% from Q1 2019 production of 82,977 ounces. Eldorado is maintaining its 2020 annual guidance of 520,000 - 550,000 ounces of gold at an all-in sustaining cost of $850 - 950 per ounce sold.
●
All-in sustaining costs lower quarter-on-quarter: Q1 2020 all-in-sustaining costs of $952 per ounce sold were lower than Q1 2019 ($1,132 per ounce sold).
●
Strong financial liquidity: The Company currently has $363.6 million of cash, cash equivalents and term deposits and approximately $36 million available under the remaining $100 million of the revolving credit facility, with $64 million of capacity on the facility allocated to secure certain reclamation obligations in connection with its operations.
●
Net loss and adjusted net earnings attributable to shareholders: Q1 2020 net loss attributable to shareholders of the Company was $4.9 million or $0.03 loss per share (Q1 2019: net loss attributable to shareholders of the Company of $27.0 million, or $0.17 loss per share). Adjusted net earnings attributable to shareholders of the Company in Q1 2020 was $12.5 million, or $0.08 per share (Q1 2019: adjusted net loss attributable to shareholders of the Company of $21.1 million, or $0.13 loss per share).
●
Increased EBITDA: Q1 2020 EBITDA was $84.7 million ($4.9 million in Q1 2019) and Q1 2020 adjusted EBITDA was $90.0 million ($12.5 million in Q1 2019). Adjustments in both periods included, among other things, share based compensation and losses on asset disposals.
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Consolidated Financial and Operational Highlights
| 3 months ended March 31, | ||
|---|---|---|
| 2020 | 2019 | |
| Revenue<br>(1) | $204.7 | $80.0 |
| Gold revenue<br>(1) | $183.7 | $54.5 |
| Gold produced (oz)<br>(2) | 115,950 | 82,977 |
| Gold sold (oz)<br>(1) | 116,219 | 43,074 |
| Average realized<br>gold price ($/oz sold) (6) | $1,580 | $1,265 |
| Cash operating<br>costs ($/oz sold) (3,6) | 627 | 625 |
| Total cash costs<br>($/oz sold) (3,6) | 678 | 652 |
| All-in sustaining<br>costs ($/oz sold) (3,6) | 952 | 1,132 |
| Net loss for the<br>period (4) | (4.9) | (27.0) |
| Net loss per share<br>– basic ($/share) (4) | (0.03) | (0.17) |
| Adjusted net<br>earnings (loss) (4,5,6,7) | 12.5 | (21.1) |
| Adjusted net<br>earnings (loss) per share ($/share) (4,5,6,7) | 0.08 | (0.13) |
| Cash flow from<br>operating activities before changes in working capital (6,8) | 69.4 | 8.2 |
| Free cash flow<br>(6) | 7.2 | (64.0) |
| Cash, cash<br>equivalents and term deposits | $363.6 | $227.5 |
(1)
Excludes sales of inventory mined at Lamaque during the pre-commercial production period (Q1 2019).
(2)
Includes pre-commercial production at Lamaque (Q1 2019).
(3)
By-product revenues are off-set against cash operating costs.
(4)
Attributable to shareholders of the Company.
(5)
See reconciliation of net earnings (loss) to adjusted net earnings (loss) in the MD&A section 'Non-IFRS Measures'.
(6)
These measures are non-IFRS measures. See the MD&A section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS measures.
(7)
Q1 2019 has been adjusted to conform with 2020 presentation. See the MD&A section 'Non-IFRS Measures' for detail.
(8)
Q1 2019 amount has been adjusted to reflect reclassifications in cash flow from operating activities in the current period.
Gold production of 115,950 ounces increased from 82,977 ounces in the first quarter of 2019. Gold sales in Q1 2020 totalled 116,219 ounces, compared with 43,074 ounces sold in Q1 2019. The higher sales volume compared with the prior year reflected increases at all mines, primarily 26,728 ounces sold from Lamaque following its commencement of commercial operations in April 2019, an additional 24,345 ounces sold from Kisladag following the resumption of mining activities in April 2019 and an additional 17,403 ounces sold from Efemcukuru due to delays in sales in Q1 2019.
Total revenue was $204.7 million in Q1 2020, an increase of 156% from total revenue of $80.0 million in Q1 2019. The increase was due to increased sales volumes combined with higher gold prices and included $42.8 million of revenue contributed by Lamaque following the commencement of commercial operations in April 2019.
Cash operating costs in Q1 2020 averaged $627 per ounce sold, a slight increase from $625 per ounce sold in Q1 2019. The increase was primarily due to cash operating costs per ounce sold at Efemcukuru and Lamaque being negatively impacted by mining and processing lower-grade ore in the quarter, resulting in fewer ounces produced. Cash operating costs per ounce sold at Olympias were also negatively impacted by lower silver and base metal prices, which reduce cash operating costs as by-product credits. These increases were almost fully offset by a decrease in cash operating costs per ounce sold at Kisladag in Q1 2020 as a result of the partial reallocation of processing costs to ounces in leach pad inventory following the resumption of mining in April 2019.
The Company reported a net loss attributable to shareholders of $4.9 million ($0.03 loss per share) in Q1 2020, compared to a net loss of $27.0 million ($0.17 loss per share) in Q1 2019. Net loss in Q1 2020 is primarily attributable to increased finance costs and increased tax expense in line with higher sales volumes and the weakening of local currencies in which income tax is determined.
Adjusted net earnings were $12.5 million ($0.08 per share) in Q1 2020, compared to adjusted net loss of $21.1 million ($0.13 loss per share) in Q1 2019. Adjusted net earnings in Q1 2020 removes, among other things, a $12.2 million loss on foreign exchange due to translation of deferred tax balances and the $4.4 million loss on the non-cash revaluation of the derivative related to redemption options in our debt.
3
Response to the COVID-19 Pandemic
On March 11, 2020, COVID-19 was declared a global pandemic by the World Health Organization. In response, governments in numerous jurisdictions, including those where we operate, implemented emergency measures including travel restrictions, suspension of non-essential operations and changes to behaviour intended to reduce the spread of the virus.
We have taken steps and implemented global preventative measures to ensure a safe working environment for our employees and contractors and to prevent the spread of COVID-19. These include:
●
Task observations to ensure that workplace controls in place are effective in maintaining physical distance. Procedures will be modified where necessary to create safe distance. Tasks that cannot be effectively modified are discontinued until an appropriate change can be implemented.
●
Pre-emptive measures such as temperature screening before accessing sites, encouraging increased hand-washing and physical-distancing and limiting all non-essential travel.
●
Advising employees to stay at home if they are at risk or have family members at home at risk.
●
Following recommendations of the World Health Organization, local health authorities and advice of jurisdictional governments. We have taken precautionary steps to educate our employees about the symptoms and transmission of the virus with clear instructions on what to do if they feel unwell.
●
Isolation procedures, should an employee or contractor test positive for COVID-19.
●
Limiting access to our offices and sites to essential people only to reduce unnecessary exposure. We have also implemented controls during delivery of supplies and materials to our offices and sites.
●
Working with local communities to distribute hygiene supplies and to educate them on preventative measures to reduce the spread of the virus.
We have been prudent in preparing for the uncertainty around COVID-19 and how it will affect our business. We implemented a crisis management plan in early March and are continuing to optimize and improve our approach to this situation through observations and learning, sharing information across our sites and across our industry. We continue to monitor our operating environments closely and are continuing to take proactive steps to protect the health and safety of our workforce, their families and our neighbouring communities.
4
Operations Update
Gold Operations
| 3 months ended March 31, | ||
|---|---|---|
| 2020 | 2019 | |
| Total | ||
| Ounces produced<br>(1) | 115,950 | 82,977 |
| Ounces sold<br>(2,<br>4) | 116,219 | 43,074 |
| Cash operating<br>costs ($/oz sold) (4,5) | $627 | $625 |
| All-in sustaining<br>costs ($/oz sold) (4,5) | $952 | $1,132 |
| Sustaining capital<br>expenditures (5) | $19.4 | $10.8 |
| Kisladag | ||
| Ounces produced<br>(3) | 50,176 | 27,247 |
| Ounces<br>sold | 51,600 | 27,255 |
| Cash operating<br>costs ($/oz sold) (5) | $451 | $558 |
| All-in sustaining<br>costs ($/oz sold) (5) | $578 | $703 |
| Sustaining capital<br>expenditures (5) | $3.0 | $3.1 |
| Lamaque | ||
| Ounces produced<br>(1) | 27,353 | 19,678 |
| Ounces sold<br>(2) | 26,728 | n/a |
| Cash operating<br>costs ($/oz sold) (5) | $641 | n/a |
| All-in sustaining<br>costs ($/oz sold) (5) | $1,042 | n/a |
| Sustaining capital<br>expenditures (5) | $8.3 | n/a |
| Efemcukuru | ||
| Ounces<br>produced | 23,239 | 26,124 |
| Ounces sold<br>(4) | 23,221 | 5,818 |
| Cash operating<br>costs ($/oz sold) (4,5) | $642 | $636 |
| All-in sustaining<br>costs ($/oz sold) (4,5) | $864 | $1,394 |
| Sustaining capital<br>expenditures (5) | $3.1 | $3.6 |
| Olympias | ||
| Ounces<br>produced | 15,182 | 9,928 |
| Ounces<br>sold | 14,670 | 10,001 |
| Cash operating<br>costs ($/oz sold) (5) | $1,196 | $800 |
| All-in sustaining<br>costs ($/oz sold) (5) | $1,646 | $1,284 |
| Sustaining capital<br>expenditures (5) | $5.0 | $4.1 |
(1)
Includes pre-commercial production at Lamaque (Q1 2019).
(2)
Excludes sales of inventory produced at Lamaque during the pre-commercial production period (Q1 2019).
(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 unit costs in Q1 2019 were impacted by lower ounces sold resulting from delayed shipments in Q1 2019 that were completed in Q2 2019.
(5)
These measures are non-IFRS measures. See the MD&A section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS measures.
Non-IFRS Measures
Certain non-IFRS measures are included in this report, including average realized gold price per ounce sold, cash operating costs and cash operating costs per ounce sold, total cash costs and total cash costs per ounce sold, all-in sustaining costs ("AISC") and AISC per ounce sold, adjusted net earnings/(loss), adjusted net earnings/(loss) per share, working capital, cash flow from operations before changes in non-cash working capital, earnings before interest, taxes and depreciation and amortization ("EBITDA") and adjusted earnings before interest, taxes and depreciation and amortization ("Adjusted EBITDA"), free cash flow and sustaining capital. Please see the March 31, 2020 MD&A for explanations and discussion of these non-IFRS measures. The Company believes that these measures, in addition to conventional measures prepared in accordance with International Financial Reporting Standards (“IFRS”), provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.
Cautionary Note about Forward-looking Statements and Information
Certain of the statements made and information provided in this report are forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Often, these forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", “continue”, “projected”, "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements or information contained in this report include, but are not limited to, statements or information with respect to: the duration, extent and other implications of COVID-19 and any restrictions and suspensions with respect to our operations, our guidance and outlook, including expected production, cost guidance and recoveries of gold, favourable economics for our heap leaching plan and the ability to extend mine life at our projects, including at Kisladag through further metallurgical tests on deeper material, completion and results of waste stripping at Kisladag, improved production at Olympias, completion and results of construction and the PEA at Lamaque, completion of construction at Skouries, planned capital and exploration expenditures; our expectation as to our future financial and operating performance, expected metallurgical recoveries, gold price outlook and the global concentrate market; and our strategy, plans and goals, including our proposed exploration, development, construction, permitting and operating plans and priorities and related timelines and schedules and results of litigation and arbitration proceedings.
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Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, market uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.
We have made certain assumptions about the forward-looking statements and information, including assumptions about how the world-wide economic and social impact of COVID-19 is managed and the duration and extent of the COVID 19 pandemic, geopolitical, economic, permitting and legal climate that we operate in; the future price of gold and other commodities; the global concentrate market; exchange rates; anticipated costs and expenses; production, mineral reserves and resources and metallurgical recoveries, the impact of acquisitions, dispositions, suspensions or delays on our business and the ability to achieve our goals. In particular, except where otherwise stated, we have assumed a continuation of existing business operations on substantially the same basis as exists at the time of this report.
Even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Many assumptions may be difficult to predict and are beyond our control.
Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: global outbreaks of infectious diseases, including COVID-19, results of further testwork, recoveries of gold and other metals; geopolitical and economic climate (global and local), risks related to mineral tenure and permits; gold and other commodity price volatility; continued softening of the global concentrate market; risks regarding potential and pending litigation and arbitration proceedings relating to the Company’s, business, properties and operations; expected impact on reserves and the carrying value; the updating of the reserve and resource models and life of mine plans; mining operational and development risk; financing risks, foreign country operational risks; risks of sovereign investment; regulatory risks and liabilities including, environmental regulatory restrictions and liability; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical testing and recoveries; additional funding requirements; currency fluctuations; community and non-governmental organization actions; speculative nature of gold exploration; dilution; share price volatility and the price of the common shares of the Company; competition; loss of key employees; and defective title to mineral claims or properties, as well as those risk factors discussed in the sections titled “Forward-Looking Statements” and "Risk factors in our business" in the Company's most recent Annual Information Form & Form 40-F. The reader is directed to carefully review the detailed risk discussion in our most recent Annual Information Form filed on SEDAR and EDGAR under our Company name, which discussion is incorporated by reference in this report, for a fuller understanding of the risks and uncertainties that affect the Company’s business and operations.
Forward-looking statements and information is designed to help you understand management’s current views of our near and longer term prospects, and it may not be appropriate for other purposes.
There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change.
Financial Information and condensed statements contained herein or attached hereto may not be suitable for readers that are unfamiliar with the Company and is not a substitute for reading the Company’s financial statements and related MD&A available on our website and on SEDAR and EDGAR under our Company name. The reader is directed to carefully review such document for a full understanding of the financial information summarized herein.
Except as otherwise noted, scientific and technical information contained in this report was reviewed and approved by Paul Skayman, FAusIMM, Special Advisor to the Chief Operating Officer for Eldorado Gold Corporation, and a "qualified person" under NI 43-101.
6
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Financial Position
(Unaudited – in thousands of U.S. dollars)
| As<br>at | Note | March 31,<br><br><br>2020 | December 31,<br><br><br>2019 |
|---|---|---|---|
| ASSETS | |||
| Current<br>assets | |||
| Cash and cash<br>equivalents | $308,780 | $177,742 | |
| Term<br>deposits | 54,800 | 3,275 | |
| Marketable<br>securities | 2,889 | 3,828 | |
| Accounts receivable<br>and other | 4 | 71,506 | 75,310 |
| Inventories | 5 | 165,579 | 163,234 |
| Current<br>portion of employee benefit plan assets | 5,777 | — | |
| Assets held for<br>sale | 11,956 | 12,471 | |
| 621,287 | 435,860 | ||
| Restricted<br>cash | 1,906 | 3,080 | |
| Other<br>assets | 29,145 | 22,943 | |
| Employee benefit<br>plan assets | — | 6,244 | |
| Property, plant and<br>equipment | 4,067,082 | 4,088,202 | |
| Goodwill | 92,591 | 92,591 | |
| $4,812,011 | $4,648,920 | ||
| LIABILITIES<br>& EQUITY | |||
| Current<br>liabilities | |||
| Accounts payable<br>and accrued liabilities | $131,067 | $139,104 | |
| Current portion of<br>lease liabilities | 9,409 | 9,913 | |
| Current portion of<br>debt | 6 | 216,667 | 66,667 |
| Current portion of<br>asset retirement obligations | 1,783 | 1,782 | |
| Current portion of<br>employee benefit plan obligations | 1,080 | — | |
| Liabilities<br>associated with assets held for sale | 4,219 | 4,257 | |
| 364,225 | 221,723 | ||
| Debt | 6 | 418,458 | 413,065 |
| Lease<br>liabilities | 13,148 | 15,143 | |
| Employee benefit<br>plan obligations | 17,084 | 18,224 | |
| Asset retirement<br>obligations | 94,175 | 94,235 | |
| Deferred income tax<br>liabilities | 415,413 | 412,717 | |
| 1,322,503 | 1,175,107 | ||
| Equity | |||
| Share<br>capital | 10 | 3,075,100 | 3,054,563 |
| Treasury<br>stock | (8,314) | (8,662) | |
| Contributed<br>surplus | 2,628,820 | 2,627,441 | |
| Accumulated other<br>comprehensive loss | (30,062) | (28,966) | |
| Deficit | (2,234,747) | (2,229,867) | |
| Total<br>equity attributable to shareholders of the Company | 3,430,797 | 3,414,509 | |
| Attributable<br>to non-controlling interests | 58,711 | 59,304 | |
| 3,489,508 | 3,473,813 | ||
| $4,812,011 | $4,648,920 |
Approved on behalf of the Board of Directors
| (Signed) John<br>Webster | Director | (Signed) George<br>Burns | Director |
|---|
Date of approval: April 30, 2020
Please see the Condensed Consolidated Interim Financial Statements dated March 31, 2020 for notes to the accounts.
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Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Operations
For the three months ended March 31, 2020 and 2019
(Unaudited – in thousands of U.S. dollars except share and per share amounts)
| Note | Three months ended March 31, 2020 | Three months ended March 31, 2019 | |
|---|---|---|---|
| Revenue | |||
| Metal<br>sales | 7 | $204,655 | $80,024 |
| Cost<br>of sales | |||
| Production<br>costs | 101,362 | 51,921 | |
| Depreciation<br>and amortization | 52,363 | 20,161 | |
| 153,725 | 72,082 | ||
| Earnings<br>from mine operations | 50,930 | 7,942 | |
| Exploration and<br>evaluation expenses | 3,227 | 5,365 | |
| Mine standby<br>costs | 8 | 4,030 | 7,993 |
| General and<br>administrative expenses | 8,287 | 6,953 | |
| Employee benefit<br>plan expense | 691 | 599 | |
| Share-based<br>payments expense | 11 | 1,795 | 2,902 |
| Write-down of<br>assets | 203 | 17 | |
| Foreign exchange<br>gain | (762) | (245) | |
| Earnings<br>(loss) from operations | 33,459 | (15,642) | |
| Other (loss)<br>income | 9 | (1,320) | 1,633 |
| Finance<br>costs | 9 | (16,207) | (7,331) |
| Earnings<br>(loss) from operations before income tax | 15,932 | (21,340) | |
| Income tax<br>expense | 21,405 | 6,032 | |
| Net<br>loss for the period | $(5,473) | $(27,372) | |
| Attributable<br>to: | |||
| Shareholders of the<br>Company | (4,880) | (26,965) | |
| Non-controlling<br>interests | (593) | (407) | |
| Net<br>loss for the period | $(5,473) | $(27,372) | |
| Weighted average<br>number of shares outstanding (thousands) | |||
| Basic | 165,211 | 158,318 | |
| Diluted | 165,211 | 158,318 | |
| Net<br>loss per share attributable to shareholders of the<br>Company: | |||
| Basic loss per<br>share | $(0.03) | $(0.17) | |
| Diluted loss per<br>share | $(0.03) | $(0.17) |
Please see the Condensed Consolidated Interim Financial Statements dated March 31, 2020 for notes to the accounts.
8
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Comprehensive Loss
For the three months ended March 31, 2020 and 2019
(Unaudited – in thousands of U.S. dollars)
| Three months ended March 31, 2020 | Three months ended March 31, 2019 | |
|---|---|---|
| Net<br>loss for the period | $(5,473) | $(27,372) |
| Other<br>comprehensive (loss) income: | ||
| Items that will not<br>be reclassified to earnings or loss: | ||
| Change in fair<br>value of investments in equity securities, net of tax | (868) | 147 |
| Actuarial losses on<br>employee benefit plans, net of tax | (228) | (346) |
| Total<br>other comprehensive loss for the period | (1,096) | (199) |
| Total<br>comprehensive loss for the period | $(6,569) | $(27,571) |
| Attributable<br>to: | ||
| Shareholders of the<br>Company | (5,976) | (27,164) |
| Non-controlling<br>interests | (593) | (407) |
| $(6,569) | $(27,571) |
Please see the Condensed Consolidated Interim Financial Statements dated March 31, 2020 for notes to the accounts.
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Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Cash Flows
For the three months ended March 31, 2020 and 2019
(Unaudited – in thousands of U.S. dollars)
| Note | Three months ended March 31, 2020 | Three months ended March 31, 2019 | |
|---|---|---|---|
| Cash flows<br>generated from (used in): | |||
| Operating<br>activities | |||
| Net loss for the<br>period | $(5,473) | $(27,372) | |
| Items not affecting cash: | |||
| Depreciation and<br>amortization | 52,927 | 19,942 | |
| Finance<br>costs | 16,224 | 7,331 | |
| Interest<br>income | (389) | (1,215) | |
| Unrealized foreign<br>exchange gain | (2,538) | (173) | |
| Income tax<br>expense | 21,405 | 6,032 | |
| Write-down of<br>assets | 203 | 17 | |
| Loss on disposal of<br>assets | 2,454 | 62 | |
| Share-based<br>payments expense | 11 | 1,795 | 2,902 |
| Employee benefit<br>plan expense | 691 | 599 | |
| 87,299 | 8,125 | ||
| Property<br>reclamation payments | (526) | (900) | |
| Employee benefit<br>plan payments | (236) | — | |
| Income taxes<br>paid | (14,719) | — | |
| Interest<br>paid | (2,770) | (250) | |
| Interest<br>received | 389 | 1,215 | |
| Changes in non-cash<br>working capital | 12 | (16,170) | (8,818) |
| Net<br>cash generated from (used in) operating activities | 53,267 | (628) | |
| Investing<br>activities | |||
| Purchase of<br>property, plant and equipment | (40,482) | (65,920) | |
| Proceeds from the<br>sale of property, plant and equipment | 22 | 380 | |
| Proceeds on<br>pre-commercial production sales, net | — | 4,553 | |
| Value added taxes<br>related to mineral property expenditures, net | (5,651) | (2,371) | |
| Increase in term<br>deposits | (51,525) | (26) | |
| Decrease (increase)<br>in restricted cash | 1,174 | (446) | |
| Net<br>cash used in investing activities | (96,462) | (63,830) | |
| Financing<br>activities | |||
| Cash received for<br>issuance of common shares | 26,836 | — | |
| Proceeds from<br>borrowings | 6 | 150,000 | — |
| Principal portion<br>of lease liabilities | (2,534) | (1,074) | |
| Net<br>cash generated from (used in) financing activities | 174,302 | (1,074) | |
| Net<br>increase (decrease) in cash and cash equivalents | 131,107 | (65,532) | |
| Cash<br>and cash equivalents - beginning of period | 177,742 | 286,312 | |
| Cash decrease in<br>disposal group held for sale | (69) | — | |
| Cash<br>and cash equivalents - end of period | $308,780 | $220,780 |
Please see the Condensed Consolidated Interim Financial Statements dated March 31, 2020 for notes to the accounts.
10
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Changes in Equity
For the three months ended March 31, 2020 and 2019
(Unaudited – in thousands of U.S. dollars)
| Note | Three months ended March 31, 2020 | Three months ended March 31, 2019 | |
|---|---|---|---|
| Share<br>capital | |||
| Balance beginning<br>of period | $3,054,563 | $3,007,924 | |
| Shares issued upon<br>exercise of share options, for cash | 424 | — | |
| Transfer of<br>contributed surplus on exercise of options | 170 | — | |
| Shares issued to<br>the public, net of share issuance costs | 19,943 | — | |
| Balance end of<br>period | 10 | $3,075,100 | $3,007,924 |
| Treasury<br>stock | |||
| Balance beginning<br>of period | $(8,662) | $(10,104) | |
| Shares redeemed<br>upon exercise of restricted share units | 348 | 835 | |
| Balance end of<br>period | $(8,314) | $(9,269) | |
| Contributed<br>surplus | |||
| Balance beginning<br>of period | $2,627,441 | $2,620,799 | |
| Share-based<br>payments | 1,897 | 1,902 | |
| Shares redeemed<br>upon exercise of restricted share units | (348) | (835) | |
| Transfers<br>to share capital on exercise of options | (170) | — | |
| Balance end of<br>period | $2,628,820 | $2,621,866 | |
| Accumulated<br>other comprehensive loss | |||
| Balance beginning<br>of period | $(28,966) | $(24,494) | |
| Other comprehensive<br>loss for the period | (1,096) | (199) | |
| Balance end of<br>period | $(30,062) | $(24,693) | |
| Deficit | |||
| Balance beginning<br>of period | $(2,229,867) | $(2,310,453) | |
| Loss attributable<br>to shareholders of the Company | (4,880) | (26,965) | |
| Balance end of<br>period | $(2,234,747) | $(2,337,418) | |
| Total<br>equity attributable to shareholders of the Company | $3,430,797 | $3,258,410 | |
| Non-controlling<br>interests | |||
| Balance beginning<br>of period | $59,304 | $63,414 | |
| Loss attributable<br>to non-controlling interests | (593) | (407) | |
| Balance end of<br>period | $58,711 | $63,007 | |
| Total<br>equity | $3,489,508 | $3,321,417 |
Please see the Condensed Consolidated Interim Financial Statements dated March 31, 2020 for notes to the accounts.
11
Item 6.
Reliance on 7.1(2) of National Instrument 51-102
Not applicable.
Item 7.
Omitted Information
Not applicable.
Item 8.
Executive Officer
Name of Executive Officer:
Tim Garvin
Executive Vice President and General Counsel
Telephone number:
(604) 601 6692
Item 9.
Date of Report
May 1, 2020
12
ego_ex992
Exhiibit 99.2
CONSENT OF EXPERT
May 1, 2020
Eldorado Gold Corporation
United States Securities and Exchange Commission
Ladies and Gentlemen:
Re: Eldorado Gold Corporation
I, Paul Skayman, do hereby consent to:
(1)
the inclusion in this Current Report on Form 6-K of Eldorado Gold Corporation (the “Company”) of the scientific and/or technical information relating to the Company's operating mines and development projects (the “Technical Information”), being filed with the United States Securities and Exchange Commission (the “SEC”) under cover of Form 6-K; and
(2)
the filing of this consent under cover of Form 6-K with the SEC and of the incorporation by reference of this consent, the use of my name and the Technical Information into the Company’s Registration Statement on Form F-10 (No. 333-233055), and any amendments thereto, filed with the SEC.
| By: | /s/Paul<br>Skayman |
|---|---|
| Paul<br>Skayman, FAusIMM | |
| Eldorado<br>Gold Corporation | |
| Special<br>Advisor to the Chief Operating Officer |