Eldorado Gold Corp 6-K, filed May 7, 2021
Eldorado Gold Corp (EGO)
About this 6-K
Eldorado Gold Corp filed this 6-K on May 7, 2021.
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 7, 2021
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
Exhibits 99.1 and 99.2 to this Form 6-K of Eldorado Gold Corporation (the “Company”) are hereby incorporated by reference as exhibits 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 7, 2021 | By: | /s/ Karen Aram |
| Karen<br>Aram, Corporate Secretary |
Exhibits
| Exhibit<br>No. | Description |
|---|---|
| 99.1 | Material<br>Change Report |
| 99.2 | Consent of Simon Hille,<br>FAusIMM |
2
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 29, 2021
Item 3.
News Release
A news release was disseminated via Global Newswire and filed on SEDAR on April 29, 2021.
Item 4.
Summary of Material Change
On April 29, 2021 the Eldorado reported the Company’s financial and operational results for the first quarter of 2021.
Item 5.
Full Description of Material Change
On April 29, 2021 the Eldorado reported the Company’s financial and operational results for the first quarter of 2021.
First Quarter 2021 and Subsequent Period Highlights
●
Q1 2021 production on plan and in line with 2021 annual guidance: Gold production totalled 111,742 ounces in Q1 2021, in-line with 2021 annual guidance and a decrease of 4% from Q1 2020 production of 115,950 ounces. Eldorado is maintaining its annual guidance of 430,000 - 460,000 ounces of gold at an all-in sustaining cost of $920-$1,150 per ounce sold.
●
Amended Investment Agreement ratified: In March 2021, our Amended Investment Agreement ("Agreement") with the Hellenic Republic was ratified by the Greek parliament and published in the Greek Government Gazette, officially becoming law. The Agreement provides a mutually beneficial and modernized legal and financial framework to allow for investment in the Skouries project and the Olympias and Stratoni mines.
●
Approval for use of dry stack tailings at Skouries: In April 2021, the Greek Ministry of Energy and Environment approved a modification to the Kassandra Mines Environmental Impact Assessment ("EIA") to allow for the use of dry stack tailings disposal at the Skouries project, which is expected to provide a number of environmental benefits.
●
Planned increase in unit costs due to lower grades: Q1 2021 cash operating costs of $641 per ounce sold (Q1 2020: $627) and all-in sustaining costs ("AISC") of $986 per ounce sold (Q1 2020: $952) were both negatively impacted by planned lower grades at Kisladag and Lamaque.
-1-
●
Continued free cash flow: Net cash from operating activities of $90.9 million in Q1 2021 (Q1 2020: $53.3 million) benefited from a higher average realized gold price. Free cash flow of $24.6 million in Q1 2021 (Q1 2020: $7.2 million) also benefited from timing of capital expenditure.
●
Continued strong financial liquidity: The Company currently has $533.8 million of cash, cash equivalents and term deposits and $99.6 million available under its revolving credit facility.
●
Increased EBITDA: Q1 2021 EBITDA was $105.3 million (Q1 2020: $84.7 million) and Q1 2021 adjusted EBITDA was $108.0 million (Q1 2020: $90.0 million). Adjustments in both periods included, among other things, share based compensation and losses on asset disposals.
●
Net earnings and adjusted net earnings attributable to shareholders: Q1 2021 net earnings attributable to shareholders of the Company was $8.3 million or $0.05 per share (Q1 2020: net loss attributable to shareholders of the Company of $4.9 million, or $0.03 loss per share). Adjusted net earnings attributable to shareholders of the Company in Q1 2021 was $21.0 million, or $0.12 per share (Q1 2020: $12.5 million, or $0.08 per share).
●
Measures remain in place to manage the impact of the novel coronavirus ("COVID-19") pandemic: The Company's mines remain fully operational and isolated cases of COVID-19 have been successfully managed. Preventing the spread of COVID-19, ensuring safe working environments across Eldorado's global sites, and preparedness should an outbreak occur, remain priorities.
Consolidated Financial and Operational Highlights
| 3 months ended March 31, | ||
|---|---|---|
| 2021 | 2020 | |
| Revenue | $224.6 | $204.7 |
| Gold<br>revenue | $195.7 | $183.7 |
| Gold<br>produced (oz) | 111,742 | 115,950 |
| Gold<br>sold (oz) | 113,594 | 116,219 |
| Average realized<br>gold price ($/oz sold) (4) | $1,723 | $1,580 |
| Cash operating<br>costs ($/oz sold) (1,4) | 641 | 627 |
| Total cash costs<br>($/oz sold) (1,4) | 687 | 678 |
| All-in sustaining<br>costs ($/oz sold) (1,4) | 986 | 952 |
| Net earnings (loss)<br>for the period (2) | 8.3 | (4.9) |
| Net earnings (loss)<br>earnings per share – basic ($/share) (2) | 0.05 | (0.03) |
| Adjusted net<br>earnings (loss) (2,3,4) | 21.0 | 12.5 |
| Adjusted net<br>earnings (loss) per share ($/share) (2,3,4) | 0.12 | 0.08 |
| Cash flow from<br>operating activities before changes in working capital (4) | 78.7 | 69.4 |
| Free cash flow<br>(4) | 24.6 | 7.2 |
| Cash,<br>cash equivalents and term deposits | $533.8 | $363.6 |
(1)
By-product revenues are off-set against cash operating costs.
(2)
Attributable to shareholders of the Company.
(3)
See reconciliation of net earnings (loss) to adjusted net earnings (loss) in the MD&A section 'Non-IFRS Measures'.
(4)
These measures are non-IFRS measures. See the MD&A section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS measures.
-2-
Total revenue was $224.6 million in Q1 2021, an increase of 10% from total revenue of $204.7 million in Q1 2020. The increase was primarily due to higher average realized gold prices.
Cash operating costs in Q1 2021 averaged $641 per ounce sold, an increase from $627 per ounce sold in Q1 2020. The increase was primarily due to cash operating costs per ounce sold at Kisladag 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 Lamaque were also negatively impacted by lower average grades, combined with strengthening of the Canadian dollar in the quarter as compared to Q1 2020. These increases were partially offset by reductions in cash operating costs per ounce sold at Kisladag and Efemcukuru in Q1 2021 as a result of the weakening of the Turkish Lira from Q1 2020 and a change in the structure of concentrate contracts whereby lower payable ounces are offset by the elimination of treatment charges and other deductions.
Total cash costs per ounce sold and AISC per ounce sold both benefited in Q1 2021 from a recent announcement in Turkey whereby the incremental 25% increase to gold royalty rates originally announced on September 4, 2020 was amended to be effective from the announcement date only, and is no longer retroactive to January 1, 2020. As a result of this announcement, $4.5 million of accrued royalty expense was reversed in Q1 2021.
We reported net earnings attributable to shareholders of $8.3 million ($0.05 earnings per share) in Q1 2021, compared to a net loss of $4.9 million ($0.03 loss per share) in Q1 2020. Higher net income in Q1 2021 is primarily attributable to higher average realized gold prices, lower finance costs and a higher gain on foreign exchange.
Adjusted net earnings were $21.0 million ($0.12 per share) in Q1 2021, compared to adjusted net earnings of $12.5 million ($0.08 earnings per share) in Q1 2020. Higher adjusted net earnings in Q1 2021 removed a $12.0 million loss on foreign exchange due to translation of deferred tax balances and a $0.7 million loss on the non-cash revaluation of the derivative related to redemption options in our debt.
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Operations Update
Gold Operations
| 3<br>months ended March 31, | ||
|---|---|---|
| 2021 | 2020 | |
| Total | ||
| Ounces<br>produced | 111,742 | 115,950 |
| Ounces<br>sold | 113,594 | 116,219 |
| Cash operating<br>costs ($/oz sold) (1,2) | $641 | $627 |
| All-in sustaining<br>costs ($/oz sold) (1,2) | $986 | $952 |
| Sustaining capital<br>expenditures (2) | $20.5 | $19.4 |
| Kisladag | ||
| Ounces<br>produced | 46,172 | 50,176 |
| Ounces<br>sold | 47,507 | 51,600 |
| Cash operating<br>costs ($/oz sold) (1,2) | $492 | $451 |
| All-in sustaining<br>costs ($/oz sold) (1,2) | $607 | $578 |
| Sustaining capital<br>expenditures (2) | $2.8 | $3.0 |
| Lamaque | ||
| Ounces<br>produced | 28,835 | 27,353 |
| Ounces<br>sold | 29,078 | 26,728 |
| Cash operating<br>costs ($/oz sold) (1,2) | $759 | $641 |
| All-in sustaining<br>costs ($/oz sold) (1,2) | $1,162 | $1,042 |
| Sustaining capital<br>expenditures (2) | $9.3 | $8.3 |
| Efemcukuru | ||
| Ounces<br>produced | 23,298 | 23,239 |
| Ounces<br>sold | 24,130 | 23,221 |
| Cash operating<br>costs ($/oz sold) (1,2) | $525 | $642 |
| All-in sustaining<br>costs ($/oz sold) (1,2) | $693 | $864 |
| Sustaining capital<br>expenditures (2) | $2.6 | $3.1 |
| Olympias | ||
| Ounces<br>produced | 13,437 | 15,182 |
| Ounces<br>sold | 12,879 | 14,670 |
| Cash operating<br>costs ($/oz sold) (1,2) | $1,145 | $1,196 |
| All-in sustaining<br>costs ($/oz sold) (1,2) | $1,799 | $1,646 |
| Sustaining capital<br>expenditures (2) | $5.8 | $5.0 |
(1)
By-product revenues are off-set against cash operating costs.
(2)
These measures are non-IFRS measures. See the MD&A section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS measures.
Gold production of 111,742 ounces decreased from 115,950 ounces in the first quarter of 2020. Gold sales in Q1 2021 totalled 113,594 ounces, a slight decrease of 2% from 116,219 ounces in Q1 2020. The slightly lower sales volume compared to the prior year primarily reflected decreases in production at Kisladag and Olympias.
-4-
For further information on the Company's operating results for the first quarter of 2021, please see the Company’s Management’s Discussion and Analysis filed on SEDAR at www.sedar.com under the Company’s profile.
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, 2021 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 Company’s 2021 annual guidance, benefits of the Agreement; the impact of COVID on operations; the benefits of using dry stack tailings; the advancement of technical work and receipt of approvals at Skouries; our expectation as to our future financial and operating performance, including expectations around generating free cash flow; working capital requirements; debt repayment obligations; use of proceeds from financing activities; expected metallurgical recoveries and improved concentrate grade and quality; gold price outlook and the global concentrate market; risk factors affecting our business; our strategy, plans and goals, including our proposed exploration, development, construction, permitting and operating plans and priorities and related timelines; and schedules and results of litigation and arbitration proceedings.
Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, market uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.
We have made certain assumptions about the forward-looking statements and information, including assumptions about: our preliminary gold production and our guidance, timing of construction; benefits of improvements; how the world-wide economic and social impact of COVID-19 is managed and the duration and extent of the COVID-19 pandemic; timing and cost of construction and exploration; 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, expenses and working capital requirements; 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.
-5-
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: inability to meet production guidance, the benefits of using dry stack tailings; the advancement of technical work and receipt of approvals at Skouries; global outbreaks of infectious diseases, including COVID-19; timing and cost of construction, and the associated benefits; 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; information technology systems risks; continued softening of the global concentrate market; risks regarding potential and pending litigation and arbitration proceedings relating to our 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 our common shares; 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.
The inclusion of 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 Simon Hille, FAusIMM, Vice President, Technical Services, and a "qualified person" under NI 43-101.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.
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Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Financial Position
As at March 31, 2021 and December 31, 2020
(Unaudited – in thousands of U.S. dollars)
| As<br>at | Note | March 31,<br><br><br>2021 | December 31,<br><br><br>2020 |
|---|---|---|---|
| ASSETS | |||
| Current assets | |||
| Cash<br>and cash equivalents | $530,903 | $451,962 | |
| Term<br>deposits | 2,904 | 59,034 | |
| Accounts<br>receivable and other | 4 | 69,186 | 73,216 |
| Inventories | 5 | 170,523 | 176,271 |
| Current<br>portion of employee benefit plan assets | 5,816 | 5,749 | |
| 779,332 | 766,232 | ||
| Restricted<br>cash | 2,170 | 2,097 | |
| Other<br>assets | 29,998 | 39,562 | |
| Property,<br>plant and equipment | 4,004,550 | 3,998,493 | |
| Goodwill | 92,591 | 92,591 | |
| $4,908,641 | $4,898,975 | ||
| LIABILITIES & EQUITY | |||
| Current liabilities | |||
| Accounts<br>payable and accrued liabilities | $172,877 | $179,372 | |
| Current<br>portion of lease liabilities | 11,412 | 11,297 | |
| Current<br>portion of debt | 6 | 55,567 | 66,667 |
| Current<br>portion of asset retirement obligations | 4,701 | 4,701 | |
| 244,557 | 262,037 | ||
| Debt | 6 | 435,966 | 434,465 |
| Lease<br>liabilities | 13,956 | 14,659 | |
| Employee<br>benefit plan obligations | 21,364 | 21,974 | |
| Asset<br>retirement obligations | 106,692 | 106,677 | |
| Deferred<br>income tax liabilities | 405,215 | 402,713 | |
| 1,227,750 | 1,242,525 | ||
| Equity | |||
| Share<br>capital | 10 | 3,157,117 | 3,144,644 |
| Treasury<br>stock | (10,879) | (11,452) | |
| Contributed<br>surplus | 2,639,067 | 2,638,008 | |
| Accumulated<br>other comprehensive loss | (30,456) | (30,297) | |
| Deficit | (2,117,060) | (2,125,326) | |
| Total equity attributable to shareholders of the<br>Company | 3,637,789 | 3,615,577 | |
| Attributable to non-controlling interests | 43,102 | 40,873 | |
| 3,680,891 | 3,656,450 | ||
| $4,908,641 | $4,898,975 |
Subsequent events (Note 17)
Approved on behalf of the Board of Directors
(Signed) John Webster
Director
(Signed) George Burns
Director
Date of approval: April 29, 2021
Please see the Condensed Consolidated Interim Financial Statements dated March 31, 2021 for notes to the accounts.
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Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Comprehensive Loss
For the three months ended March 31, 2021 and 2020
(Unaudited – in thousands of U.S. dollars)
| Note | Three months ended March 31, 2021 | Three months ended March 31, 2020 | |
|---|---|---|---|
| Revenue | |||
| Metal<br>sales | 7 | $224,619 | $204,655 |
| Cost of sales | |||
| Production<br>costs | 108,560 | 101,362 | |
| Depreciation<br>and amortization | 56,309 | 52,363 | |
| 164,869 | 153,725 | ||
| Earnings from mine operations | 59,750 | 50,930 | |
| Exploration<br>and evaluation expenses | 4,061 | 3,227 | |
| Mine<br>standby costs | 8 | 1,627 | 4,030 |
| General<br>and administrative expenses | 10,145 | 8,287 | |
| Employee<br>benefit plan expense | 749 | 691 | |
| Share-based<br>payments expense | 11 | 1,781 | 1,795 |
| Write-down<br>(recovery) of assets | (750) | 203 | |
| Foreign<br>exchange gain | (5,943) | (762) | |
| Earnings from operations | 48,080 | 33,459 | |
| Other<br>income (loss) | 9 | 678 | (1,320) |
| Finance<br>costs | 9 | (10,338) | (16,207) |
| Earnings before income tax | 38,420 | 15,932 | |
| Income<br>tax expense | 28,249 | 21,405 | |
| Net earnings (loss) for the period | $10,171 | $(5,473) | |
| Attributable to: | |||
| Shareholders<br>of the Company | 8,266 | (4,880) | |
| Non-controlling<br>interests | 1,905 | (593) | |
| Net earnings (loss) for the period | $10,171 | $(5,473) | |
| Weighted<br>average number of shares outstanding (thousands) | |||
| Basic | 174,534 | 165,211 | |
| Diluted | 177,234 | 165,211 | |
| Net earnings (loss) per share attributable to shareholders of the<br>Company: | |||
| Basic<br>earnings (loss) per share | $0.05 | $(0.03) | |
| Diluted<br>earnings (loss) per share | $0.05 | $(0.03) |
Please see the Condensed Consolidated Interim Financial Statements dated March 31, 2021 for notes to the accounts.
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Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Comprehensive Loss
For the three months ended March 31, 2021 and 2020
(Unaudited – in thousands of U.S. dollars)
| Three months ended March 31, 2021 | Three months ended March 31, 2020 | |
|---|---|---|
| Net earnings (loss) for the period | $10,171 | $(5,473) |
| Other comprehensive loss: | ||
| Items<br>that will not be reclassified to earnings or loss: | ||
| Change<br>in fair value of investments in equity securities, net of<br>tax | (125) | (868) |
| Actuarial<br>losses on employee benefit plans, net of tax | (34) | (228) |
| Total other comprehensive loss for the period | (159) | (1,096) |
| Total comprehensive income (loss) for the period | $10,012 | $(6,569) |
| Attributable to: | ||
| Shareholders<br>of the Company | 8,107 | (5,976) |
| Non-controlling<br>interests | 1,905 | (593) |
| $10,012 | $(6,569) |
Please see the Condensed Consolidated Interim Financial Statements dated March 31, 2021 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, 2021 and 2020
(Unaudited – in thousands of U.S. dollars)
| Note | Three months ended March 31, 2021 | Three months ended March 31, 2020 | |
|---|---|---|---|
| Cash<br>flows generated from (used in): | |||
| Operating activities | |||
| Net<br>earnings (loss) for the period | $10,171 | $(5,473) | |
| Items not affecting cash: | |||
| Depreciation<br>and amortization | 56,887 | 52,927 | |
| Finance<br>costs | 10,338 | 16,224 | |
| Interest<br>income | (302) | (389) | |
| Unrealized<br>foreign exchange gain | (2,364) | (2,538) | |
| Income<br>tax expense | 28,249 | 21,405 | |
| Write-down<br>(recovery) of assets | (750) | 203 | |
| Loss<br>on disposal of assets | 945 | 2,454 | |
| Share-based<br>payments expense | 11 | 1,781 | 1,795 |
| Employee<br>benefit plan expense | 749 | 691 | |
| 105,704 | 87,299 | ||
| Property<br>reclamation payments | (335) | (526) | |
| Employee<br>benefit plan payments | (232) | (236) | |
| Income<br>taxes paid | (24,496) | (14,719) | |
| Interest<br>paid | (2,205) | (2,770) | |
| Interest<br>received | 302 | 389 | |
| Changes<br>in non-cash working capital | 12 | 12,132 | (16,170) |
| Net cash generated from operating activities | 90,870 | 53,267 | |
| Investing activities | |||
| Purchase<br>of property, plant and equipment | (64,856) | (40,482) | |
| Proceeds<br>from the sale of property, plant and equipment | 1,150 | 22 | |
| Value<br>added taxes related to mineral property expenditures,<br>net | (2,568) | (5,651) | |
| Decrease<br>(increase) in term deposits | 56,130 | (51,525) | |
| Decrease<br>(increase) in restricted cash | (73) | 1,174 | |
| Net cash used in investing activities | (10,217) | (96,462) | |
| Financing activities | |||
| Issuance<br>of common shares for cash, net of issuance costs | 11,834 | 26,836 | |
| Contributions<br>from non-controlling interests | 324 | — | |
| Proceeds<br>from borrowings | — | 150,000 | |
| Repayments<br>of borrowings | (11,100) | — | |
| Principal<br>portion of lease liabilities | (2,770) | (2,534) | |
| Net cash generated from (used in) financing activities | (1,712) | 174,302 | |
| Net increase in cash and cash equivalents | 78,941 | 131,107 | |
| Cash and cash equivalents - beginning of period | 451,962 | 177,742 | |
| Cash<br>decrease in disposal group held for sale | — | (69) | |
| Cash and cash equivalents - end of period | $530,903 | $308,780 |
Please see the Condensed Consolidated Interim Financial Statements dated March 31, 2021 for notes to the accounts.
-10-
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Changes in Equity
For the three months ended March 31, 2021 and 2020
(Unaudited – in thousands of U.S. dollars)
| Note | Three months ended March 31, 2021 | Three months ended March 31, 2020 | |
|---|---|---|---|
| Share capital | |||
| Balance<br>beginning of period | $3,144,644 | $3,054,563 | |
| Shares<br>issued upon exercise of share options, for cash | 717 | 424 | |
| Transfer<br>of contributed surplus on exercise of options | 285 | 170 | |
| Shares<br>issued to the public, net of share issuance costs | 11,471 | 19,943 | |
| Balance<br>end of period | 10 | $3,157,117 | $3,075,100 |
| Treasury stock | |||
| Balance<br>beginning of period | $(11,452) | $(8,662) | |
| Shares<br>redeemed upon exercise of restricted share units | 573 | 348 | |
| Balance<br>end of period | $(10,879) | $(8,314) | |
| Contributed surplus | |||
| Balance<br>beginning of period | $2,638,008 | $2,627,441 | |
| Share-based<br>payments arrangements | 1,917 | 1,897 | |
| Shares<br>redeemed upon exercise of restricted share units | (573) | (348) | |
| Transfers<br>to share capital on exercise of options | (285) | (170) | |
| Balance<br>end of period | $2,639,067 | $2,628,820 | |
| Accumulated other comprehensive loss | |||
| Balance<br>beginning of period | $(30,297) | $(28,966) | |
| Other<br>comprehensive loss for the period | (159) | (1,096) | |
| Balance<br>end of period | $(30,456) | $(30,062) | |
| Deficit | |||
| Balance<br>beginning of period | $(2,125,326) | $(2,229,867) | |
| Earnings<br>(loss) attributable to shareholders of the Company | 8,266 | (4,880) | |
| Balance<br>end of period | $(2,117,060) | $(2,234,747) | |
| Total equity attributable to shareholders of the<br>Company | $3,637,789 | $3,430,797 | |
| Non-controlling interests | |||
| Balance<br>beginning of period | $40,873 | $59,304 | |
| Earnings<br>(loss) attributable to non-controlling interests | 1,905 | (593) | |
| Contributions<br>from non-controlling interests | 324 | — | |
| Balance<br>end of period | $43,102 | $58,711 | |
| Total equity | $3,680,891 | $3,489,508 |
Please see the Condensed Consolidated Interim Financial Statements dated March 31, 2021 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 7, 2021
-12-
ego_ex992
Exhibit 99.2
CONSENT OF EXPERT
May 7, 2021
Eldorado Gold Corporation
United States Securities and Exchange Commission
Ladies and Gentlemen:
Re: Eldorado Gold Corporation
I, Simon Hille, do hereby consent to:
(1)
the inclusion in the Current Report on Form 6-K of Eldorado Gold Corporation (the “Company”) dated May 7, 2021 of the scientific and/or technical information relating to the Company's operating mines and development projects contained in the Company’s material change report attached to the Form 6-K as Exhibit 99.1 (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: | “Simon Hille” |
|---|---|
| Simon<br>Hille, FAusIMM |