Loading...
Loading...
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 21, 2014) - Paul N. Wright, Chief Executive Officer of Eldorado Gold Corporation ELDEGO, ("Eldorado" the "Company" or "we") is pleased to report on the Company's financial and operational results for the year ended December 31, 2013. Eldorado reported record gold production of 721,201 ounces at an average cash operating cost(1) of $494 per ounce, compared to gold production of 656,324 ounces at an average cash operating cost of $483 per ounce for the year ended December 31, 2012. Adjusted net earnings(1) for the year ended December 31, 2013 were $192.9 million, or $0.27 per share compared to adjusted net earnings of $327.4 million, or $0.48 per share for the year ended December 31, 2012, reflecting a 16% decline in gold prices year over year.
"The Company achieved record production of 721,201 ounces of gold in 2013 at $494 cash operating cost per ounce in line with our original guidance of 705,000 to 760,000 ounces of gold at cash operating costs of $515 to $530 per ounce. Steps taken by the Company mid-year, in light of a declining gold price, included rationalizing operating costs and focusing our capital resources on development projects that are expected to deliver near-term cash flows consistent with the Company's strategic plan," said Paul Wright, Chief Executive Officer of Eldorado.
2013 Overview
Key Consolidated Financial Information
-- At December 31, 2013 the Company recognized an impairment charge of
$808.4 million, or $684.6 million, net of tax ($0.96 per share) related
to Jinfeng and Eastern Dragon.
-- Loss attributable to shareholders of the Company was $653.3 million
($0.91 per share), compared to net profit attributable to shareholders
of the Company of $305.3 million ($0.44 per share) in 2012.
-- Dividends paid were Cdn$0.12 per share (2012: Cdn$0.15 per share).
-- Liquidity was $998.9 million at year end, including $623.9 million in
cash, cash equivalents, and term deposits, and $375.0 million in lines
of credit (2012: $1,191.8 million of liquidity).
Key Performance Measures
-- Gold production of 721,201 ounces, including pre-commercial production
from Olympias (2012: 656,324 ounces) increased 10% year over year.
-- Total cash costs averaged $551 per ounce (2012: $554 per ounce)
-- Gross profit from gold mining operations of $481.1 million fell 19% as
compared to that of 2012 due to lower prices.
-- Adjusted net earnings of $192.9 million ($0.27 per share) were down 41%
compared to adjusted net earnings of $327.4 million ($0.48 per share) in
2012.
-- Cash generated from operating activities before changes in non-cash
working capital was $382.0 million (2012: $447.7 million).
-- Year end 2013 Proven and Probable gold reserves of 27.7 million ounces
and Measured and Indicated gold resources of 36.4 million ounces.
(1) Throughout this release we use cash operating cost per ounce, total cash costs per ounce, gross profit from gold mining operations, adjusted net earnings, and cash flow from operating activities before changes in non-cash working capital as additional measures of Company performance. These are non-IFRS measures. Please see page 11 of our MD&A for an explanation and discussion of these non-IFRS measures.
Impairment Charge
As a result of the impairment testing we performed at the end of December 31, 2013, the Company concluded that the carrying values of Jinfeng and Eastern Dragon were impaired and an impairment loss of $808.4 million was recorded against the property, plant and equipment, and goodwill of these properties ($283.5 million associated with Jinfeng and $524.9 million associated with Eastern Dragon). A deferred income tax recovery of $123.8 million was also recorded related to the impairment charge and reflected as a reduction in tax expense on the income statement.
The Company assumed gold metal prices of $1,200 per ounce for 2014, and $1,300 per ounce long-term. Discounted cash flows were calculated using discount rates between 10% and 12% for Eastern Dragon (3% higher than previous years' impairment calculations) reflecting increased Chinese permitting risk.
Summarized Annual Financial Results
($millions except as noted) 2013 2012 2011
----------------------------------------------------------------------------
Revenues 1,124.0 1,147.5 1,103.7
----------------------------------------------------------------------------
Gold revenues 1,020.0 1,047.1 1,042.1
----------------------------------------------------------------------------
Gold sold (ounces) 725,095 625,394 658,919
----------------------------------------------------------------------------
Average realized gold price ($/ounce) 1,407 1,674 1,581
----------------------------------------------------------------------------
Average London spot gold price ($/ounce) 1,411 1,669 1,572
----------------------------------------------------------------------------
Cash operating costs ($/ounce) 494 483 405
----------------------------------------------------------------------------
Total cash costs ($/ounce) 551 554 472
----------------------------------------------------------------------------
Gross profit from gold mining operations 481.1 595.0 610.8
----------------------------------------------------------------------------
Adjusted net earnings 192.9 327.3 332.5
----------------------------------------------------------------------------
Net profit (loss) attributable to
shareholders of the Company (653.3) 305.3 318.7
----------------------------------------------------------------------------
Earnings (loss) per share attributable
to shareholders of the Company
- basic ($/share) (0.91) 0.44 0.58
----------------------------------------------------------------------------
Earnings (loss) per share attributable
to shareholders of the Company
- diluted ($/share) (0.91) 0.44 0.58
----------------------------------------------------------------------------
Cash flow from operating activities
before changes in non-cash working
capital 382.0 447.7 502.1
----------------------------------------------------------------------------
Capital Spending - cash basis 482.0 426.2 272.8
----------------------------------------------------------------------------
Dividends paid - (Cdn$/share) 0.12 0.15 0.11
----------------------------------------------------------------------------
Cash, cash equivalents and term deposits 623.9 816.8 393.8
----------------------------------------------------------------------------
Total Assets 7,235.2 7,928.1 3,960.4
----------------------------------------------------------------------------
Total long-term financial liabilities(1) 670.3 662.9 63.2
----------------------------------------------------------------------------
(1) Includes long-term debt net of deferred financing costs, defined benefit
liabilities, and asset retirement obligations.
Review of Annual Financial Results
Gold sales volumes increased 16%, while total cash costs per ounce remained steady year over year. Gross profit from gold mining operations of $481.1 million fell 19% year over year as a result of a 16% drop in gold prices. Loss attributable to shareholders of the Company was $653.3 million, or $0.91 per share, compared to net profit attributable to shareholders of the Company of $305.3 million, or $0.44 per share in 2012. Adjusted net earnings were $192.9 million or $0.27 per share as compared with $327.3 million or $0.48 per share for 2012. The major items contributing to the loss attributable to shareholders of the Company were: 1) the $684.6 million impairment loss, net of tax, 2) a $125.2 million deferred income tax charge related to a change in the Greek income tax rate, 3) a $14.1 million impairment loss on investment in associates, and 4) a $13.8 million unrealized loss on foreign exchange translation of deferred income tax balances. Other factors that adversely impacted earnings year over year were an increase in interest and financing costs of $33.4 million related to senior notes issued by the Company in December 2012, and an increase in tax expense of $8.5 million related to withholding taxes on dividends paid by the Company's subsidiaries in China and Turkey to their parent companies.
Summarized Quarterly Financial Results
----------------------------------------------------------------------------
2013 Q1 Q2 Q3 Q4 2013
($millions except as noted)
----------------------------------------------------------------------------
Revenues 338.1 266.9 287.3 231.7 1,124.0
----------------------------------------------------------------------------
Gold revenues 307.2 243.6 266.4 202.8 1,020.0
----------------------------------------------------------------------------
Gold sold (ounces) 189,346 176,260 199,117 160,372 725,095
----------------------------------------------------------------------------
Average realized gold price
($/ounce) 1,622 1,382 1,338 1,264 1,407
----------------------------------------------------------------------------
Cash operating costs
($/ounce) 505 478 472 526 494
----------------------------------------------------------------------------
Total cash costs ($/ounce) 567 536 528 577 551
----------------------------------------------------------------------------
Gross profit from gold
mining operations 163.8 117.2 123.2 76.9 481.1
----------------------------------------------------------------------------
Net profit (loss)
attributable to
shareholders of the Company (45.5) 43.3 36.4 (687.5) (653.3)
----------------------------------------------------------------------------
Earnings (loss) per share
attributable to
shareholders of the Company
- basic ($/share) (0.06) 0.06 0.05 (0.96) (0.91)
----------------------------------------------------------------------------
Earnings (loss) per share
attributable to
shareholders of the Company
- diluted ($/share) (0.06) 0.06 0.05 (0.96) (0.91)
----------------------------------------------------------------------------
Dividends paid- (Cdn$/share) 0.07 - 0.05 - 0.12
----------------------------------------------------------------------------
Cash flow from operating
activities before changes
in non-cash working capital 139.9 84.9 104.8 52.4 382.0
----------------------------------------------------------------------------
Review of Quarterly Results
Loss attributable to shareholders of the Company for the quarter ended December 31, 2013 was $687.5 million, or $0.96 per share, compared to profit attributable to shareholders of the Company of $115.0 million, or $0.16 per share for the same period in 2012. The main factors that impacted earnings for the fourth quarter year over year were the impairment charge, net of taxes, of $684.6 million and lower gold revenues due to lower prices and volume.
Operations Review and Outlook
Gold Operations
2013 2012 2014 outlook(4)
----------------------------------------------------------------------------
Total Operating Gold Mines
Gold ounces produced (1)(2) 721,201 656,324 730,000 to 800,000
----------------------------------------------------------------------------
Cash operating costs ($ per ounce) 494 483 550 to 590
----------------------------------------------------------------------------
Total cash costs ($ per ounce) 551 554 600 to 640
----------------------------------------------------------------------------
All-in sustaining cash costs ($ per
ounce) (5) n/a n/a 915 to 985
----------------------------------------------------------------------------
Sustaining capital expenditure
(millions) 269.3 215.0 170.0
----------------------------------------------------------------------------
Kisladag
Gold ounces produced 306,182 289,294 300,000 to 335,000
----------------------------------------------------------------------------
Cash operating costs ($ per ounce) 338 332 470 to 485
----------------------------------------------------------------------------
Total cash costs ($ per ounce) 358 361 490 to 505
----------------------------------------------------------------------------
Sustaining capital expenditure ($
millions) 145.3 104.9 70.0
----------------------------------------------------------------------------
Efemcukuru
Gold ounces produced (1) 90,818 66,870 90,000 to 100,000
----------------------------------------------------------------------------
Cash operating costs ($ per ounce) 580 583 575 to 590
----------------------------------------------------------------------------
Total cash costs ($ per ounce) 604 613 595 to 610
----------------------------------------------------------------------------
Sustaining capital expenditure
(millions) 29.9 - 20.0
----------------------------------------------------------------------------
Tanjianshan
Gold ounces produced 101,451 110,611 95,000 to 100,000
----------------------------------------------------------------------------
Cash operating costs ($ per ounce) 415 415 450 to 465
----------------------------------------------------------------------------
Total cash costs ($ per ounce) 601 612 620 to 635
----------------------------------------------------------------------------
Sustaining capital expenditure
(millions) 11.3 23.9 20.0
----------------------------------------------------------------------------
Jinfeng
Gold ounces produced 123,246 107,854 145,000 to 155,000
----------------------------------------------------------------------------
Cash operating costs ($ per ounce) 736 817 650 to 670
----------------------------------------------------------------------------
Total cash costs ($ per ounce) 823 901 730 to 750
----------------------------------------------------------------------------
Sustaining capital expenditure
(millions) 54.0 59.0 35.0
----------------------------------------------------------------------------
White Mountain
Gold ounces produced 73,060 80,869 70,000 to 75,000
----------------------------------------------------------------------------
Cash operating costs ($ per ounce) 705 625 685 to 715
----------------------------------------------------------------------------
Total cash costs ($ per ounce) 745 671 720 to 750
----------------------------------------------------------------------------
Sustaining capital expenditure
(millions) 28.8 27.2 25.0
----------------------------------------------------------------------------
Olympias
Gold ounces produced (2) 26,444 826 30,000 to 35,000
----------------------------------------------------------------------------
Cash operating costs ($ per ounce) n/a n/a 975 to 1050
----------------------------------------------------------------------------
Total cash costs ($ per ounce) n/a n/a 995 to 1070
----------------------------------------------------------------------------
Sustaining capital expenditure
(millions) (3) - - -
----------------------------------------------------------------------------
(1) Gold ounces produced at Efemcukuru in 2012 include 29,824 ounces of pre-
commercial production. (2) Gold ounces produced at Olympias in 2012 & 2013
are all on a pre-commercial production basis. (3) Olympias development
capital expenditure planned for 2014 is $60.0 million. (4) Outlook assumes
the following metal prices: gold - $1,200 per ounce, silver - $22 per
ounce. (5) All-in sustaining cash cost is a non-IFRS measure. Please see
page 11 of our MD&A for an explanation and discussion of this non-IFRS
measure.
Annual Review - Operations
Kisladag
Operating Data 2013 2012
----------------------------------------------------------------------------
Tonnes placed on pad 13,296,621 12,606,575
----------------------------------------------------------------------------
Average treated head grade (g/t Au) 1.12 1.20
----------------------------------------------------------------------------
Gold (ounces)
----------------------------------------------------------------------------
- Produced 306,182 289,294
----------------------------------------------------------------------------
- Sold 306,176 289,056
----------------------------------------------------------------------------
Cash operating costs (per ounce) $ 338 $ 332
----------------------------------------------------------------------------
Total cash costs (per ounce) $ 358 $ 361
----------------------------------------------------------------------------
Financial Data (millions)
----------------------------------------------------------------------------
Gold revenues $ 430.9 $ 483.7
----------------------------------------------------------------------------
Depreciation and Depletion $ 15.3 $ 11.9
----------------------------------------------------------------------------
Gross profit from mining operations $ 302.9 $ 363.2
----------------------------------------------------------------------------
Sustaining capital expenditures $ 145.3 $ 104.9
----------------------------------------------------------------------------
Gold production at Kisladag in 2013 was 6% higher than in 2012 mainly as a result of an increase in oxide ore placed on the leach pad in 2013 as compared to 2012. Kisladag placed 5% more total tonnes on the leach pad compensating for a lower head grade than 2012. Cash operating costs were slightly higher year over year as a result of the increased volume of material placed on the pad, partly offset by lower Turkish lira denominated operating costs as a result of a decline in the value of the Turkish lira compared with the US dollar. Capital expenditures at Kisladag in 2013 included costs related to the deferred Phase IV Mine Expansion project, capitalised waste stripping and other construction projects.
Efemcukuru
Operating Data 2013 2012
----------------------------------------------------------------------------
Tonnes Milled 413,513 352,156
----------------------------------------------------------------------------
Average Treated Head Grade (g/t Au) 8.87 9.26
----------------------------------------------------------------------------
Average Recovery Rate (to Concentrate) 93.3% 92.7%
----------------------------------------------------------------------------
Gold (ounces)
----------------------------------------------------------------------------
- Produced (including pre-commercial
production in 2012) 90,818 66,870
----------------------------------------------------------------------------
- Sold 121,119 37,046
----------------------------------------------------------------------------
Cash operating costs (per ounce) $ 580 $ 583
----------------------------------------------------------------------------
Total cash costs (per ounce) $ 604 $ 613
----------------------------------------------------------------------------
Financial Data (millions)
----------------------------------------------------------------------------
Gold revenues $ 171.1 $ 61.9
----------------------------------------------------------------------------
Depreciation and Depletion $ 26.6 $ 6.8
----------------------------------------------------------------------------
Gross profit from mining operations $ 68.4 $ 31.4
----------------------------------------------------------------------------
Sustaining capital expenditures $ 29.9 -
----------------------------------------------------------------------------
Gold production at Efemcukuru increased over 2012 as the mine improved both the tailings processing and paste fill systems subsequent to the commencement of commercial production in November 2012. Ounces sold in 2013 included approximately 30,000 ounces from inventory at the end of 2012. Capital spending in 2013 included costs related to capitalized underground development, mobile equipment, surface infrastructure and process improvements.
Tanjianshan
Operating Data 2013 2012
----------------------------------------------------------------------------
Tonnes Milled 1,064,058 1,056,847
----------------------------------------------------------------------------
Average Treated Head Grade (g/t Au) 3.47 3.67
----------------------------------------------------------------------------
Average Recovery Rate 82.2% 82.6%
----------------------------------------------------------------------------
Gold (ounces)
----------------------------------------------------------------------------
- Produced 101,451 110,611
----------------------------------------------------------------------------
- Sold 101,451 110,611
----------------------------------------------------------------------------
Cash operating costs (per ounce) $ 415 $ 415
----------------------------------------------------------------------------
Total cash costs (per ounce) $ 601 $ 612
----------------------------------------------------------------------------
Financial Data (millions)
----------------------------------------------------------------------------
Gold revenues $ 143.5 $ 185.5
----------------------------------------------------------------------------
Depreciation and Depletion $ 24.7 $ 26.2
----------------------------------------------------------------------------
Gross profit from mining operations $ 56.5 $ 90.5
----------------------------------------------------------------------------
Sustaining capital expenditures $ 11.3 $ 23.9
----------------------------------------------------------------------------
Gold production at Tanjianshan in 2013 was 8% lower than in 2012 mainly as a result of lower average treated head grade and lower additional flotation concentrate feed. Cash operating costs per ounce in 2013 were unchanged from the previous year mainly due to cost savings realised through process plant upgrades. Capital expenditures for the year included lining of tailings dam, process plant upgrades, and capitalized exploration costs as well as other sustaining capital.
Jinfeng
Operating Data 2013 2012
----------------------------------------------------------------------------
Tonnes Milled 1,412,548 1,422,794
----------------------------------------------------------------------------
Average Treated Head Grade (g/t Au) 3.24 2.65
----------------------------------------------------------------------------
Average Recovery Rate 85.4% 84.3%
----------------------------------------------------------------------------
Gold (ounces)
----------------------------------------------------------------------------
- Produced 123,246 107,854
----------------------------------------------------------------------------
- Sold 123,289 107,812
----------------------------------------------------------------------------
Cash operating costs (per ounce) $ 736 $ 817
----------------------------------------------------------------------------
Total cash costs (per ounce) $ 823 $ 901
----------------------------------------------------------------------------
Financial Data (millions)
----------------------------------------------------------------------------
Gold revenues $ 171.1 $ 180.9
----------------------------------------------------------------------------
Depreciation and Depletion $ 38.5 $ 28.7
----------------------------------------------------------------------------
Gross profit from mining operations $ 31.0 $ 55.0
----------------------------------------------------------------------------
Sustaining capital expenditures $ 54.0 $ 59.0
----------------------------------------------------------------------------
Gold production at Jinfeng in 2013 was 14% higher than in 2012 mainly as a result of the resumption of ore mining in the open pit from May 2013, after the completion of the open pit cutback. A total of 629,996 tonnes of ore was mined from the open pit in 2013 compared to 96,800 tonnes in 2012. Ore tonnes mined from underground increased 25% as two production levels were added to the underground operations. Cash operating costs per ounce were 10% lower in 2013 as compared to 2012 mainly due to an increase in the number of ounces produced. Capital expenditures for the year included capitalized underground development, process plant upgrades, tailings dam uplifts, and tailings thickening projects.
White Mountain
Operating Data 2013 2012
----------------------------------------------------------------------------
Tonnes Milled 810,389 754,673
----------------------------------------------------------------------------
Average Treated Head Grade (g/t Au) 3.39 3.85
----------------------------------------------------------------------------
Average Recovery Rate 86.0% 86.3%
----------------------------------------------------------------------------
Gold (ounces)
----------------------------------------------------------------------------
- Produced 73,060 80,869
----------------------------------------------------------------------------
- Sold 73,060 80,869
----------------------------------------------------------------------------
Cash operating costs (per ounce) $ 705 $ 625
----------------------------------------------------------------------------
Total cash costs (per ounce) $ 745 $ 671
----------------------------------------------------------------------------
Financial Data (millions)
----------------------------------------------------------------------------
Gold revenues $ 103.4 $ 135.1
----------------------------------------------------------------------------
Depreciation and Depletion $ 26.4 $ 25.7
----------------------------------------------------------------------------
Gross profit from mining operations $ 22.3 $ 54.9
----------------------------------------------------------------------------
Sustaining capital expenditures $ 28.8 $ 27.2
----------------------------------------------------------------------------
Gold production at White Mountain in 2013 was below that of 2012 with lower average treated head grade partially offset by higher ore throughput. The increase in tonnes milled year over year was due to an increase in underground mining efficiency as a result of increased stope production and mine development. Cash operating costs per ounce were 13% higher in 2013 as a result of the decrease in head grade, and an increase in costs related to increased backfill and secondary development rates. Capital expenditures for the year included capitalized underground development, construction of a mobile maintenance workshop, acquisition of underground mobile equipment, upgrade of underground service facilities, capitalized exploration and construction of a tailing dam lift.
Stratoni
Operating Data 2013 2012
----------------------------------------------------------------------------
Tonnes ore processed (dry) 225,493 191,602
----------------------------------------------------------------------------
Pb grade (%) 6.3% 6.4%
----------------------------------------------------------------------------
Zn grade (%) 10.0% 10.0%
----------------------------------------------------------------------------
Tonnes of concentrate produced 59,626 50,680
----------------------------------------------------------------------------
Tonnes of concentrate sold 59,534 52,934
----------------------------------------------------------------------------
Average realized concentrate price (per tonne) $ 850 $ 905
----------------------------------------------------------------------------
Cash Costs (per tonne of concentrate sold) $ 757 $ 729
----------------------------------------------------------------------------
Financial Data (millions)
----------------------------------------------------------------------------
Concentrate revenues $ 50.6 $ 47.9
----------------------------------------------------------------------------
Depreciation and Depletion $ 10.2 $ 6.5
----------------------------------------------------------------------------
Gross profit from mining operations $ (4.6) $ 2.8
----------------------------------------------------------------------------
Sustaining capital expenditures $ 4.0 $ 3.2
----------------------------------------------------------------------------
Lead/zinc concentrate production at Stratoni increased year over year as 2012 reflects production only from February 24, 2012, the date of the acquisition of European Goldfields Limited ("EGU"). Cash operating costs increased 4% year over year.
Vila Nova
Operating Data 2013 2012
----------------------------------------------------------------------------
Tonnes Processed 812,003 710,909
----------------------------------------------------------------------------
Iron Ore Produced 700,857 613,780
----------------------------------------------------------------------------
Average Grade (% Fe) 63.1% 63.3%
----------------------------------------------------------------------------
Iron Ore Tonnes
----------------------------------------------------------------------------
- Sold 470,140 603,668
----------------------------------------------------------------------------
Average Realized Iron Ore Price $ 99 $ 76
----------------------------------------------------------------------------
Cash Costs (per tonne produced) $ 63 $ 60
----------------------------------------------------------------------------
Financial Data (millions)
----------------------------------------------------------------------------
Iron ore revenues $ 46.4 $ 45.6
----------------------------------------------------------------------------
Depreciation and Depletion $ 4.5 $ 5.3
----------------------------------------------------------------------------
Gross profit from mining operations $ 12.3 $ 3.9
----------------------------------------------------------------------------
Sustaining capital expenditures $ 4.8 $ 1.3
----------------------------------------------------------------------------
Vila Nova processed 14% more iron ore tonnes than the previous year at approximately the same grade. The higher production year over year was due to mechanical and operational adjustments made in the treatment plant as well as an increase in scheduled operating hours in order to improve plant productivity. Iron ore sales were 22% lower than in 2012 as a result of an incident that closed the Anglo-Ferrous port facility during the second quarter. Shipments of iron ore have been routed through the smaller capacity public port in Santana since the incident.
Annual Review - Development Projects
Kisladag Phase IV Mine Expansion
The full Kisladag expansion was deferred during 2013 pending improvement in metal prices. The capital programme required to replace the existing mining fleet with larger loading and haulage equipment and electrification of the mine continued during the year. By year end most of the upgraded fleet was delivered and placed into operation.
Olympias
In 2013, the Olympias plant reprocessed 552,557 tonnes of tailings at a grade of 3.32 grams per tonne. Approximately 26,444 payable ounces of gold in concentrate were produced during the year and were treated as pre-commercial production for financial reporting purposes.
New development and underground refurbishment continued during 2013. Underground mining on Phase II is projected to begin in 2016. During 2013, approximately 1,076 metres of underground drifts were rehabilitated and 3,034 metres of new drifts were completed, including approximately 800 metres of advance on the main Stratoni-Olympias decline to the 1.4 kilometre mark, representing 18% completion of the planned 8.0 kilometre decline. Capital costs incurred in 2013 were $94.1 million.
Skouries
During 2013 a total of $51.5 million was spent on Skouries. The primary contractor was mobilized and site preparation commenced. The primary underground portal was completed and 324 metres of the decline was advanced. A review of the planned infrastructure, tailings facilities, and processing facilities was completed, culminating in modifications to support ongoing permitting, and assure adherence to the overall design criteria. An optimization study for the Skouries underground will commence in 2014.
Certej
The year-end updated mineral resource for Certej resulted in an overall increase in Measured and Indicated ounces of 10%. A prefeasibility study was initiated to redefine the scope of the operation as well as address results from ongoing metallurgical test work aimed at maximizing gold recoveries. During 2013 a total of $22.8 million was spent on Certej, mainly on exploration drilling, geotechnical and metallurgical testing, road access work and engineering studies.
Perama Hill
During 2013 a total of $8.3 million was spent on Perama Hill including engineering and exploration drilling. Approval of the Environmental Impact Assessment is expected after the local and European Union elections scheduled for the second quarter of 2014.
Eastern Dragon
Eastern Dragon was placed on care and maintenance during 2013 pending resolution of permitting issues. Site management worked with the local authorities to maintain local permits 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. Capital costs incurred at Eastern Dragon totalled $1.5 million.
Tocantinzinho
During 2013 a total of $5.5 million was spent on Tocantinzinho mainly on optimization of the capital and operating requirements in the feasibility study as well as on limited exploration activities. Field work was focused on environmental assessments and monitoring at the site, as well as support for the optimization work on the feasibility study.
Annual Review - Exploration
A total of $68.3 million (including capitalized evaluation costs) was spent on grassroots, advanced stage and minesite exploration activities during 2013. The exploration activities included drilling totalling approximately 128,000 metres and were conducted on 18 projects across Turkey, China, Brazil, Greece, and Romania.
Turkey
In Turkey, drilling programs were completed at our Efemcukuru mine site and at the Ardala/Salinbas joint venture project. At Efemcukuru, exploration drilling focussed on down-dip extensions of the Kestane Beleni vein, as well as resource drilling at the nearby Kokarpinar vein. Drilling at Ardala/Salinbas confirmed continuity of mineralization between epithermal (Salinbas) and gold-copper porphyry (Ardala) mineralized systems.
China
Brownfields exploration programs were completed at each of our three operating mines in China. At Tanjianshan, resource drilling focused on the Bridge and West Wall Zones within the Jinlongou pit, and on definition and step-out drilling just beneath the northern end of the Qinlongtan open pit. All of these target areas yielded high-grade intersections outside of existing resources.
At the White Mountain mine, exploration drilling included both underground testing of down-dip extensions of the main orebody, and surface drilling of the newly-recognized West Zone, immediately adjacent to the present deposit.
At Jinfeng, underground resource drilling focused on step-outs along the known major mineralized fault zones (F2, F3, F6), gaps in the existing resource model, and new conceptual targets. The exploration drilling was successful in identifying mineralised splays sub-parallel to existing resources.
Limited drilling was completed on adjacent exploration licenses. The Company divested its interests in the Jingdu and Jinluo Exploration joint ventures, and in the Gaolu exploration license.
Brazil
In Brazil, exploration programs focused on drill-testing the optioned Chapadina project, on advancing our early-stage projects to drill-ready status, and on project generation activities.
Greece
In the Chalkidiki district, 12,000 metres of drilling was completed at the Piavitsa Project, consisting of step-out drilling over a 2.5 km strike length of the mineralized Stratoni Fault zone. At Olympias, an extensive drillcore-relogging and deposit interpretation program culminated in an updated resource model for the deposit. At Perama Hill, exploration activities focused on extending coverage of soil sampling programs, and on sterilization testing of areas of planned infrastructure.
Romania
Exploration activities in the Certej district focused on over 40,000 metres of infill and step-out drilling of the Certej deposit. Drilling programs were also completed on the Certej North prospect, and at the Muncel and Brad exploration license areas.
Reserves and Resources
Reserves at the end of 2013 totalled 27.7 million contained ounces of gold at an average grade of 1.17 g/t, compared with 25.8 million ounces of gold at an average grade of 1.14 g/t at the end of 2012.
Measured and Indicated resources at the end of 2013 totalled 36.4 million contained ounces of gold at an average grade of 1.04 g/t, compared with 36.3 million ounces of gold at an average grade of 1.02 g/t at the end of 2012.
A gold price of $1,250 per ounce was utilized for estimating reserves except for the Eastern Dragon, Tocantinzinho and Skouries underground projects which used $1,000 per ounce.
Complete mineral Reserve and Resource information including tonnes, grades and ounces as well as major assumptions and qualified persons responsible are shown in Tables 1 and 2.
Table 1: Eldorado Gold Mineral Reserves, as of December 2013
----------------------------------------------------------------------------
Project Proven Mineral Reserves Probable Mineral Reserves
----------------------------------------------------------------------------
Gold Tonnes Au In-situ Au Tonnes Au In-situ Au
----------------------------------------------------------------------------
ounces ounces
(x1000) g/t (x1000) (x1000) g/t (x1000)
----------------------------------------------------------------------------
Certej 20,441 1.91 1,255 26,543 1.41 1,203
----------------------------------------------------------------------------
Eastern Dragon 837 11.07 297 2,253 6.46 467
----------------------------------------------------------------------------
Efemcukuru 1,321 9.63 409 3,490 6.92 777
----------------------------------------------------------------------------
Jinfeng 5,715 4.12 758 9,882 3.85 1,222
----------------------------------------------------------------------------
Kisladag 86,915 0.86 2,402 344,584 0.64 7,145
----------------------------------------------------------------------------
Olympias 6,706 7.20 1,552 11,236 7.54 2,724
----------------------------------------------------------------------------
Perama 2,477 4.44 354 7,220 2.68 621
----------------------------------------------------------------------------
Skouries 68,762 0.87 1,928 81,311 0.67 1,752
----------------------------------------------------------------------------
Tanjianshan 3,118 3.06 307 1,128 2.84 103
----------------------------------------------------------------------------
Tocantinzinho 17,735 1.39 792 31,315 1.17 1,183
----------------------------------------------------------------------------
White Mountain 4,320 2.56 355 1,327 2.87 122
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL GOLD 218,347 1.48 10,409 520,289 1.04 17,319
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Silver Tonnes Ag In-situ Ag Tonnes Ag In-situ Ag
----------------------------------------------------------------------------
ounces ounces
(x1000) g/t (x1000) (x1000) g/t (x1000)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Certej 20,441 10 6,283 26,543 12 9,967
----------------------------------------------------------------------------
Eastern Dragon 837 81 2,178 2,253 67 4,848
----------------------------------------------------------------------------
Olympias 4,851 124 19,339 11,236 130 46,962
----------------------------------------------------------------------------
Perama 2,477 3 254 7,220 4 897
----------------------------------------------------------------------------
Stratoni 763 172 4,219 371 176 2,099
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL SILVER 29,369 34 32,273 47,623 42 64,773
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Copper Tonnes Cu In-situ Cu Tonnes Cu In-situ Cu
----------------------------------------------------------------------------
tonnes tonnes
(x1000) % (x1000) (x1000) % (x1000)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Skouries 68,762 0.53 362 81,311 0.50 405
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL COPPER 68,762 0.53 362 81,311 0.50 405
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Lead Tonnes Pb In-situ Pb Tonnes Pb In-situ Pb
----------------------------------------------------------------------------
tonnes tonnes
(x1000) % (x1000) (x1000) % (x1000)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Olympias 4,851 4.1 199 11,236 4.4 494
----------------------------------------------------------------------------
Stratoni 763 6.5 50 371 6.5 24
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL LEAD 5,614 4.4 249 11,607 4.5 518
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Zinc Tonnes Zn In-situ Zn Tonnes Zn In-situ Zn
----------------------------------------------------------------------------
tonnes tonnes
(x1000) % (x1000) (x1000) % (x1000)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Olympias 4,851 5.1 247 11,236 6.0 674
----------------------------------------------------------------------------
Stratoni 763 9.4 72 371 9.5 35
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL ZINC 5,614 5.7 319 11,607 6.1 709
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Iron Tonnes Fe Tonnes Fe
----------------------------------------------------------------------------
(x1000) % (x1000) %
----------------------------------------------------------------------------
Vila Nova 2,640 59.3 6,605 58.5
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL IRON 2,640 59.3 6,605 58.5
----------------------------------------------------------------------------
--------------------------------------------------------------
Project Total Proven and Probable
--------------------------------------------------------------
Gold Tonnes Au In-situ Au
--------------------------------------------------------------
ounces
(x1000) g/t (x1000)
--------------------------------------------------------------
Certej 46,984 1.63 2,458
--------------------------------------------------------------
Eastern Dragon 3,090 7.71 764
--------------------------------------------------------------
Efemcukuru 4,811 7.67 1,186
--------------------------------------------------------------
Jinfeng 15,597 3.95 1,980
--------------------------------------------------------------
Kisladag 431,499 0.69 9,547
--------------------------------------------------------------
Olympias 17,942 7.41 4,276
--------------------------------------------------------------
Perama 9,697 3.13 975
--------------------------------------------------------------
Skouries 150,073 0.76 3,680
--------------------------------------------------------------
Tanjianshan 4,246 3.00 410
--------------------------------------------------------------
Tocantinzinho 49,050 1.25 1,975
--------------------------------------------------------------
White Mountain 5,647 2.63 477
--------------------------------------------------------------
--------------------------------------------------------------
TOTAL GOLD 738,636 1.17 27,728
--------------------------------------------------------------
--------------------------------------------------------------
Silver Tonnes Ag In-situ Ag
--------------------------------------------------------------
ounces
(x1000) g/t (x1000)
--------------------------------------------------------------
--------------------------------------------------------------
Certej 46,984 11 16,250
--------------------------------------------------------------
Eastern Dragon 3,090 71 7,026
--------------------------------------------------------------
Olympias 16,087 128 66,301
--------------------------------------------------------------
Perama 9,697 4 1,151
--------------------------------------------------------------
Stratoni 1,134 173 6,318
--------------------------------------------------------------
--------------------------------------------------------------
TOTAL SILVER 76,992 39 97,046
--------------------------------------------------------------
--------------------------------------------------------------
Copper Tonnes Cu In-situ Cu
--------------------------------------------------------------
tonnes
(x1000) % (x1000)
--------------------------------------------------------------
--------------------------------------------------------------
Skouries 150,073 0.51 767
--------------------------------------------------------------
--------------------------------------------------------------
TOTAL COPPER 150,073 0.51 767
--------------------------------------------------------------
--------------------------------------------------------------
Lead Tonnes Pb In-situ Pb
--------------------------------------------------------------
tonnes
(x1000) % (x1000)
--------------------------------------------------------------
--------------------------------------------------------------
Olympias 16,087 4.3 693
--------------------------------------------------------------
Stratoni 1,134 6.5 74
--------------------------------------------------------------
--------------------------------------------------------------
TOTAL LEAD 17,221 4.5 767
--------------------------------------------------------------
--------------------------------------------------------------
Zinc Tonnes Zn In-situ Zn
--------------------------------------------------------------
tonnes
(x1000) % (x1000)
--------------------------------------------------------------
--------------------------------------------------------------
Olympias 16,087 5.7 921
--------------------------------------------------------------
Stratoni 1,134 9.4 107
--------------------------------------------------------------
--------------------------------------------------------------
TOTAL ZINC 17,221 6.0 1,028
--------------------------------------------------------------
--------------------------------------------------------------
Iron Tonnes Fe
--------------------------------------------------------------
(x1000) %
--------------------------------------------------------------
Vila Nova 9,245 58.7
--------------------------------------------------------------
--------------------------------------------------------------
TOTAL IRON 9,245 58.7
--------------------------------------------------------------
Table 2: Eldorado Gold Mineral Resources as of December 2013
----------------------------------------------------------------------------
Project Measured Resources Indicated Resources
----------------------------------------------------------------------------
In-situ In-situ
Gold Tonnes Au Au Tonnes Au Au
----------------------------------------------------------------------------
ounces ounces
(x1000) g/t (x1000) (x1000) g/t (x1000)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Certej 25,680 1.75 1,448 85,435 1.23 3,368
----------------------------------------------------------------------------
Eastern Dragon 800 12.48 322 2,700 6.04 530
----------------------------------------------------------------------------
Efemcukuru 1,645 9.70 513 3,971 7.96 1,017
----------------------------------------------------------------------------
Jinfeng 9,798 3.93 1,238 15,368 3.50 1,729
----------------------------------------------------------------------------
Kisladag 89,954 0.84 2,432 458,085 0.59 8,616
----------------------------------------------------------------------------
Olympias 6,319 8.04 1,633 10,644 8.55 2,926
----------------------------------------------------------------------------
Perama 3,064 4.30 424 9,375 3.18 958
----------------------------------------------------------------------------
Piavitsa 0 0.00 0
----------------------------------------------------------------------------
Skouries 99,135 0.80 2,552 184,493 0.49 2,853
----------------------------------------------------------------------------
Tanjianshan 4,006 2.79 358 3,622 2.86 333
----------------------------------------------------------------------------
Tocantinzinho 19,777 1.29 820 50,457 0.97 1,574
----------------------------------------------------------------------------
White Mountain 4,371 3.42 480 2,931 3.12 294
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL GOLD 264,549 1.44 12,220 827,081 0.91 24,198
----------------------------------------------------------------------------
----------------------------------------------------------------------------
In-situ In-situ
Silver Tonnes Ag Ag Tonnes Ag Ag
----------------------------------------------------------------------------
ounces ounces
(x1000) g/t (x1000) (x1000) g/t (x1000)
----------------------------------------------------------------------------
Certej 25,680 9 7,150 85,435 9 24,611
----------------------------------------------------------------------------
Eastern Dragon 800 91 2,400 2,700 67 5,900
----------------------------------------------------------------------------
Olympias 4,464 142 20,380 10,644 147 50,305
----------------------------------------------------------------------------
Perama 3,064 3 335 9,375 9 2,833
----------------------------------------------------------------------------
Piavitsa 0 0 0
----------------------------------------------------------------------------
Stratoni 837 197 5,301 507 207 3,374
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL SILVER 34,845 32 35,566 108,661 25 87,023
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Copper Tonnes Cu In-situ Cu Tonnes Cu In-situ Cu
----------------------------------------------------------------------------
tonnes tonnes
(x1000) % (x1000) (x1000) % (x1000)
----------------------------------------------------------------------------
Skouries 99,135 0.49 484 184,493 0.41 750
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL COPPER 99,135 0.49 484 184,493 0.41 750
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Lead Tonnes Pb In-situ Pb Tonnes Pb In-situ Pb
----------------------------------------------------------------------------
tonnes tonnes
(x1000) % (x1000) (x1000) % (x1000)
----------------------------------------------------------------------------
Olympias 4,464 4.7 210 10,644 5.0 532
----------------------------------------------------------------------------
Stratoni 837 7.5 63 507 7.7 39
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL LEAD 5,301 5.1 273 11,151 5.1 571
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Zinc Tonnes Zn In-situ Zn Tonnes Zn In-situ Zn
----------------------------------------------------------------------------
tonnes tonnes
(x1000) % (x1000) (x1000) % (x1000)
----------------------------------------------------------------------------
Olympias 4,464 5.8 259 10,644 6.8 724
----------------------------------------------------------------------------
Stratoni 837 10.5 88 507 10.7 54
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL ZINC 5,301 6.5 347 11,151 7.0 778
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Iron Tonnes Fe Tonnes Fe
----------------------------------------------------------------------------
(x1000) % (x1000) %
----------------------------------------------------------------------------
Vila Nova 2,851 59.3 11,115 58.5
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL IRON 2,851 59.3 11,115 58.5
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Project Total Meaured and Indicated Inferred Resources
----------------------------------------------------------------------------
In-situ In-situ
Gold Tonnes Au Au Tonnes Au Au
----------------------------------------------------------------------------
ounces ounces
(x1000) g/t (x1000) (x1000) g/t (x1000)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Certej 111,115 1.35 4,816 29,002 1.08 1,010
----------------------------------------------------------------------------
Eastern Dragon 3,500 7.50 852 2,200 2.67 190
----------------------------------------------------------------------------
Efemcukuru 5,616 8.47 1,530 5,418 5.03 876
----------------------------------------------------------------------------
Jinfeng 25,166 3.67 2,967 10,493 2.98 1,006
----------------------------------------------------------------------------
Kisladag 548,039 0.63 11,048 379,725 0.40 4,908
----------------------------------------------------------------------------
Olympias 16,963 8.36 4,559 3,955 8.34 1,060
----------------------------------------------------------------------------
Perama 12,439 3.46 1,382 8,766 1.96 554
----------------------------------------------------------------------------
Piavitsa 0 0.00 0 10,410 5.49 1,839
----------------------------------------------------------------------------
Skouries 283,628 0.60 5,405 168,063 0.31 1,673
----------------------------------------------------------------------------
Tanjianshan 7,628 2.82 691 3,185 3.65 375
----------------------------------------------------------------------------
Tocantinzinho 70,234 1.06 2,394 6,950 0.66 147
----------------------------------------------------------------------------
White Mountain 7,302 3.30 774 2,883 6.44 597
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL GOLD 1,091,630 1.04 36,418 631,050 0.70 14,235
----------------------------------------------------------------------------
----------------------------------------------------------------------------
In-situ In-situ
Silver Tonnes Ag Ag Tonnes Ag Ag
----------------------------------------------------------------------------
ounces ounces
(x1000) g/t (x1000) (x1000) g/t (x1000)
----------------------------------------------------------------------------
Certej 111,115 9 31,761 29,002 6 5,268
----------------------------------------------------------------------------
Eastern Dragon 3,500 73 8,300 2,200 20 1,500
----------------------------------------------------------------------------
Olympias 15,108 146 70,685 3,955 118 15,050
----------------------------------------------------------------------------
Perama 12,439 8 3,168 8,766 7 1,860
----------------------------------------------------------------------------
Piavitsa 0 0 0 10,410 50 16,721
----------------------------------------------------------------------------
Stratoni 1,344 201 8,675 490 169 2,662
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL SILVER 143,506 27 122,589 54,823 24 43,061
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Copper Tonnes Cu In-situ Cu Tonnes Cu In-situ Cu
----------------------------------------------------------------------------
tonnes tonnes
(x1000) % (x1000) (x1000) % (x1000)
----------------------------------------------------------------------------
Skouries 283,628 0.43 1,234 168,063 0.34 575
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL COPPER 283,628 0.43 1,234 168,063 0.34 575
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Lead Tonnes Pb In-situ Pb Tonnes Pb In-situ Pb
----------------------------------------------------------------------------
tonnes tonnes
(x1000) % (x1000) (x1000) % (x1000)
----------------------------------------------------------------------------
Olympias 15,108 4.9 742 3,955 3.9 153
----------------------------------------------------------------------------
Stratoni 1,344 7.6 102 490 6.4 31
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL LEAD 16,452 5.1 844 4,445 4.1 184
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Zinc Tonnes Zn In-situ Zn Tonnes Zn In-situ Zn
----------------------------------------------------------------------------
tonnes tonnes
(x1000) % (x1000) (x1000) % (x1000)
----------------------------------------------------------------------------
Olympias 15,108 6.5 983 3,955 4.3 171
----------------------------------------------------------------------------
Stratoni 1,344 10.6 142 490 8.8 43
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL ZINC 16,452 6.8 1,125 4,445 4.8 214
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Iron Tonnes Fe Tonnes Fe
----------------------------------------------------------------------------
(x1000) % (x1000) %
----------------------------------------------------------------------------
Vila Nova 13,966 58.7 10,323 59.8
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL IRON 13,966 58.7 10,323 59.8
----------------------------------------------------------------------------
Notes on Mineral Resources and Reserves
1) Mineral reserves and mineral resources are as of December 31, 2013
2) Mineral reserves are included in the mineral resources.
3) The mineral reserves and mineral resources are disclosed on a total
project basis.
4) The Olympias mineral reserves and mineral resources include 1.855 million
tonnes of economically recoverable old tailings that grade 3.4 g/t Au.
These are added into the gold Proven reserve and Measured resource
categories, respectively.
Mineral Reserve Notes
1) Gold price used was $1250/oz except for Eastern Dragon, Tocantinzinho,
and Skouries underground, projects which used $1000. Silver price was
$16.50/oz; Copper price was $3.00/lb; Pb and Zn prices were $2,100/t and
$1,900/t, respectively.
2) Cut-off grades (gold g/t): Kisladag: 0.20 g/t oxide, 0.31 g/t sulphide;
Efemcukuru: 3.5 g/t; Perama: 0.8 g/t; Tanjianshan: 1.6 g/t JLG sulphide,
1.3 g/t JLG oxide/transition, 1.5 g/t 323 Pit; Jinfeng: 0.9 g/t open pit,
2.3g/t underground; White Mountain: 1.5 g/t; Eastern Dragon: 1.0 g/t open
pit, 1.7g/t underground; Tocantinzinho: 0.49 g/t sulphide, 0.43 g/t
oxide; Skouries: $10.00 NSR open pit, $24.87 NSR underground; Olympias:
$76.00 NSR. Cut-off grade for Stratoni is based on a 16.85% Zn Equivalent
grade (=Zn%+Pb%x1.48+Ag%x159). Cut-off grade for Certej is based on a
0.90 g/t Au Equivalent grade (=Au(g/t)+Ag(g/t)x0.00811).
3) Qualified Persons:
Richard Miller, P.Eng., Manager, Mining for the Company is responsible
for the Kisladag, Tanjianshan, Tocantinzinho, Vila Nova Iron, Jinfeng
open pit, Perama, Skouries open pit, and Certej reserves; Doug Jones
(Registered Member - SME), Senior Vice President, Operations for the
Company, is responsible for the Jinfeng underground, White Mountain,
Eastern Dragon, Olympias, and Stratoni reserves; Norm Pitcher, P.Geo.,
President for the Company, is responsible for the Efemcukuru and Skouries
underground reserves.
Mineral Resource Notes
1) Cut-off grades (gold g/t): Kisladag: 0.25 g/t; Efemcukuru: 2.5 g/t;
Perama: 0.5 g/t; Jinfeng: 0.7 g/t open pit, 2.0 g/t underground;
Tanjianshan: 1.0 g/t; White Mountain: 1.0 g/t; Eastern Dragon: 1.0 g/t;
Tocantinzinho: 0.3 g/t ; Certej: 0.7 g/t; Skouries: 0.20 g/t Au
Equivalent grade open pit, 0.60 Au Equivalent grade underground (AuEQV=Au
g/t + 1.6xCu%); Piavitsa: 4.0 g/t. Resource cut-offs for Olympias and
Stratoni are geological based due to the sharpness of the mineralized
contacts and the high grade nature of the mineralization.
2) Qualified Persons:
Stephen Juras, Ph.D., P.Geo. and Director, Technical Services for the
Company is responsible for all of the Company's mineral resources.
About Eldorado
Eldorado Gold is a Canadian low cost gold producer with over 20 years of experience building and operating gold mines in Europe, Asia and South America. We are dedicated to responsible operations, the highest safety and environmental standards and working with stakeholders to enhance the communities where we operate.
Eldorado Gold Corporation's common shares trade on the Toronto Stock Exchange ELD and the New York Stock Exchange EGO.
ON BEHALF OF ELDORADO GOLD CORPORATION
Paul N. Wright, Chief Executive Officer
Conference Call
Eldorado will host a conference call on Friday, February 21, 2014 to discuss the 2013 Year-End Financial and Operating Results at 8:30am PT (11:30am ET). You may participate in the conference call by dialling 416-340-2219 in Toronto or 1-866-225-0198 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 February 28, 2014 by dialling 905-694-9451 in Toronto or 1-800-408-3053 toll free in North America and entering the Passcode: 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 statements or information with respect to the Company's 2013 Year-End and Fourth Quarter 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, including assumptions about the legal restrictions regarding the payment of dividends by the Company; assumptions about the price of gold; anticipated costs and expenditures; estimated production, mineral reserves and metallurgical recoveries; financial position, reserves and resources and gold production; and the ability to achieve our goals. Although 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 statements 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; risks of not meeting production and cost targets; 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 and operating in foreign countries; 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.
Cautionary Note Regarding Mineral Reserves and Mineral Resources
The terms "Mineral Reserve", "Proven Mineral Reserve" and "Probable Mineral Reserve" used in this release are Canadian mining terms as defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council on August 20, 2000 as may be amended from time to time by the CIM. These definitions differ from the definitions in the United States Securities & Exchange Commission ("SEC") Guide 7. In the United States, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or produced at the time the mineral reserve determination is made.
The terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource", "Inferred Mineral Resource" used in this release are Canadian mining terms as defined in accordance with National Instruction 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the CIM Standards. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
For a detailed discussion of resource and reserve estimates and related matters see the Company's reports, including the Annual Information Form and Form 40-F dated March 28, 2013 and technical reports filed under the Company's name at www.sedar.com and www.sec.gov respectively.
Cautionary Note to US Investors Concerning Estimates of Measured, Indicated and Inferred Resources
Note to U.S. Investors. While the terms "mineral resource", "measured mineral resource", "indicated mineral resource", and "inferred mineral resource" are recognized and required by Canadian regulations, they are not defined terms under standards in the United States and normally are not permitted to be used in reports and registration statements filed with the SEC. As such, information contained in this report concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by U.S companies in SEC filings. With respect to "indicated mineral resource" and "inferred mineral resource" there is a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.
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
Q4 and Full Year 2013 Gold Production Highlights (in US$)
----------------------------------------------------------------------------
First Second Third Fourth
Quarter Quarter Quarter Quarter
2013 2013 2013 2013
----------------------------------------------------------------------------
Gold Production
------------------------
Ounces Sold 189,346 176,260 199,117 160,372
Ounces Produced(1) 163,768 183,971 204,620 168,842
Cash Operating Cost
($/oz)(2,4,5) 505 478 472 526
Total Cash Cost
($/oz)(3,4,5) 567 536 528 577
Realized Price ($/oz -
sold) 1,622 1,382 1,338 1,264
----------------------------------------------------------------------------
Kisladag Mine, Turkey
------------------------
Ounces Sold 70,250 76,680 85,029 74,217
Ounces Produced 70,221 76,735 84,762 74,464
Tonnes to Pad 2,915,508 3,301,333 3,336,465 3,743,315
Grade (grams / tonne) 1.29 1.26 1.28 0.71
Cash Operating Cost
($/oz)(4,5) 334 327 324 370
Total Cash Cost
($/oz)(3,4,5) 359 348 343 384
----------------------------------------------------------------------------
Efemcukuru Mine, Turkey
------------------------
Ounces Sold 50,291 25,187 26,410 19,231
Ounces Produced(1) 19,856 26,289 23,438 21,235
Tonnes Milled 86,879 109,349 105,641 111,644
Grade (grams / tonne) 8.47 9.28 8.50 9.13
Cash Operating Cost
($/oz)(4,5) 582 519 551 696
Total Cash Cost
($/oz)(3,4,5) 619 537 568 700
----------------------------------------------------------------------------
Tanjianshan Mine, China
------------------------
Ounces Sold 26,207 27,938 28,179 19,127
Ounces Produced 26,207 27,938 28,179 19,127
Tonnes Milled 247,061 273,065 285,406 258,526
Grade (grams / tonne) 3.74 3.50 3.40 3.25
Cash Operating Cost
($/oz)(4,5) 442 398 377 458
Total Cash Cost
($/oz)(3,4,5) 636 577 557 655
----------------------------------------------------------------------------
Jinfeng Mine, China
------------------------
Ounces Sold 21,683 28,993 40,212 32,401
Ounces Produced 21,742 28,889 40,212 32,403
Tonnes Milled 351,901 336,707 363,798 360,142
Grade (grams / tonne) 2.43 3.33 3.66 3.51
Cash Operating Cost
($/oz) (4,5) 832 757 684 719
Total Cash Cost ($/oz)
(3,4,5) 930 845 767 801
----------------------------------------------------------------------------
White Mountain Mine,
China
------------------------
Ounces Sold 20,915 17,462 19,287 15,396
Ounces Produced 20,915 17,462 19,287 15,396
Tonnes Milled 198,934 203,033 209,581 198,841
Grade (grams / tonne) 3.80 3.25 3.28 3.23
Cash Operating Cost
($/oz) (4,5) 634 742 713 748
Total Cash Cost ($/oz)
(3,4,5) 679 781 751 786
----------------------------------------------------------------------------
Olympias, Greece
------------------------
Ounces Sold - - - -
Ounces Produced(1) 4,827 6,658 8,742 6,217
Tonnes Milled 89,112 116,972 185,012 161,461
Grade (grams / tonne) 3.97 3.80 3.19 2.78
Cash Operating Cost
($/oz)(4,5) - - - -
Total Cash Cost
($/oz)(3,4,5) - - - -
----------------------------------------------------------------------------
---------------------------------------------------------------------
Fourth
Quarter 2013 2012
2012
---------------------------------------------------------------------
Gold Production
------------------------
Ounces Sold 186,973 725,095 625,394
Ounces Produced(1) 190,530 721,201 656,324
Cash Operating Cost
($/oz)(2,4,5) 502 494 483
Total Cash Cost
($/oz)(3,4,5) 566 551 554
Realized Price ($/oz -
sold) 1,696 1,407 1,674
---------------------------------------------------------------------
Kisladag Mine, Turkey
------------------------
Ounces Sold 78,151 306,176 289,056
Ounces Produced 77,996 306,182 289,294
Tonnes to Pad 2,960,809 13,296,621 12,606,575
Grade (grams / tonne) 1.32 1.12 1.20
Cash Operating Cost
($/oz)(4,5) 324 338 332
Total Cash Cost
($/oz)(3,4,5) 353 358 361
---------------------------------------------------------------------
Efemcukuru Mine, Turkey
------------------------
Ounces Sold 37,046 121,119 37,046
Ounces Produced(1) 39,913 90,818 66,870
Tonnes Milled 92,600 413,513 352,156
Grade (grams / tonne) 9.27 8.87 9.26
Cash Operating Cost
($/oz)(4,5) 583 580 583
Total Cash Cost
($/oz)(3,4,5) 613 604 613
---------------------------------------------------------------------
Tanjianshan Mine, China
------------------------
Ounces Sold 25,679 101,451 110,611
Ounces Produced 25,679 101,451 110,611
Tonnes Milled 264,943 1,064,058 1,056,847
Grade (grams / tonne) 3.42 3.47 3.67
Cash Operating Cost
($/oz)(4,5) 427 415 415
Total Cash Cost
($/oz)(3,4,5) 632 601 612
---------------------------------------------------------------------
Jinfeng Mine, China
------------------------
Ounces Sold 21,149 123,289 107,812
Ounces Produced 21,168 123,246 107,854
Tonnes Milled 359,903 1,412,548 1,422,794
Grade (grams / tonne) 2.30 3.24 2.65
Cash Operating Cost
($/oz) (4,5) 986 736 817
Total Cash Cost ($/oz)
(3,4,5) 1,088 823 901
---------------------------------------------------------------------
White Mountain Mine,
China
------------------------
Ounces Sold 24,948 73,060 80,869
Ounces Produced 24,948 73,060 80,869
Tonnes Milled 198,407 810,389 754,673
Grade (grams / tonne) 4.34 3.39 3.85
Cash Operating Cost
($/oz) (4,5) 607 705 625
Total Cash Cost ($/oz)
(3,4,5) 652 745 671
---------------------------------------------------------------------
Olympias, Greece
------------------------
Ounces Sold - - -
Ounces Produced(1) 826 26,444 826
Tonnes Milled 28,331 552,557 28,331
Grade (grams / tonne) 5.07 3.32 5.07
Cash Operating Cost
($/oz)(4,5) - - -
Total Cash Cost
($/oz)(3,4,5) - - -
---------------------------------------------------------------------
(1) Ounces produced include pre-commercial production in Efemcukuru and
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
Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars)
December 31, December 31,
Note 2013 2012
$ $
ASSETS
Current assets
Cash and cash equivalents 6 589,180 816,843
Term deposits 34,702 -
Restricted cash 262 241
Marketable securities 4,387 1,988
Accounts receivable and other 7 89,231 112,324
Inventories 8 244,042 220,766
--------------------------------
961,804 1,152,162
Investments in associate 9 10,949 27,949
Deferred income tax assets 17 997 3,149
Restricted assets and other 10 37,330 31,846
Defined benefit pension plan 16 13,484 4,571
Property, plant and equipment 11 5,684,382 5,868,742
Goodwill 12 526,296 839,710
--------------------------------
7,235,242 7,928,129
--------------------------------
LIABILITIES & EQUITY
Current liabilities
Accounts payable and accrued
liabilities 13 211,406 224,567
Current debt 14 16,402 10,341
--------------------------------
227,808 234,908
Debt 14 585,006 582,974
Asset retirement obligations 15 85,259 79,971
Deferred income tax liabilities 17 842,305 816,941
--------------------------------
1,740,378 1,714,794
--------------------------------
Equity
Share capital 18 5,314,589 5,300,957
Treasury stock (10,953) (7,445)
Contributed surplus 78,557 65,382
Accumulated other comprehensive loss (17,056) (24,535)
Retained earnings (deficit) (143,401) 594,876
--------------------------------
Total equity attributable to
shareholders of the Company 5,221,736 5,929,235
Attributable to non-controlling
interests 273,128 284,100
--------------------------------
5,494,864 6,213,335
--------------------------------
7,235,242 7,928,129
--------------------------------
--------------------------------
The accompanying notes are an integral part of these consolidated financial statements.
Eldorado Gold Corporation
Consolidated Income Statements
(Expressed in thousands of U.S. dollars)
For the year ended December 31 Note 2013 2012
$ $
Revenue
Metal sales 1,123,992 1,147,541
Cost of sales
Production costs 26 481,892 427,946
Depreciation and amortization 149,068 113,529
----------------------------
630,960 541,475
Gross profit 493,032 606,066
Exploration expenses 34,686 39,521
General and administrative expenses 68,291 70,135
Defined benefit pension plan expense 16 2,478 1,900
Share based payments 19 19,492 21,794
Acquisition costs 5 - 21,247
Impairment loss on property, plant and
equipment and goodwill 11, 12 808,414 -
Foreign exchange loss (gain) 6,799 (2,780)
----------------------------
Operating profit (loss) (447,128) 454,249
Loss on disposal of assets 830 509
Loss (gain) on marketable securities and
other investments 2,421 (176)
Loss on investments in associates 1,285 5,627
Impairment loss on investment in
associates 9 14,051 -
Other income (6,201) (6,870)
Asset retirement obligation accretion 15 1,337 1,842
Interest and financing costs 27 40,412 6,983
Writedown of assets 3,990 -
----------------------------
Profit (loss) before income tax (505,253) 446,334
Income tax expense 17 144,362 128,276
----------------------------
Profit (loss) for the year (649,615) 318,058
----------------------------
Attributable to:
Shareholders of the Company (653,329) 305,302
Non-controlling interests 3,714 12,756
----------------------------
Profit (loss) for the year (649,615) 318,058
----------------------------
----------------------------
Weighted average number of shares
outstanding (thousands) 28
Basic 715,181 689,007
Diluted 715,181 690,669
Earnings per share attributable to
shareholders of the Company:
Basic earnings (deficit) per share (0.91) 0.44
Diluted earnings (deficit) per share (0.91) 0.44
The accompanying notes are an integral part of these consolidated financial statements.
Eldorado Gold Corporation
Consolidated Statements of Comprehensive Income
(Expressed in thousands of U.S. dollars except per share amounts)
For the year ended December 31 Note 2013 2012
$ $
Profit (deficit) for the year (649,615) 318,058
Other comprehensive gain (loss):
Change in fair value of available-for-sale
financial assets (1,258) -
Realized gains on disposal of available-
for-sale financial assets (17) (56)
Actuarial gains (losses) on defined
benefit pension plans 16 8,754 (12,981)
--------------------------
Total other comprehensive gain (loss) for
the year 7,479 (13,037)
--------------------------
Total comprehensive income (deficit) for
the year (642,136) 305,021
--------------------------
--------------------------
Attributable to:
Shareholders of the Company (645,850) 292,265
Non-controlling interests 3,714 12,756
--------------------------
(642,136) 305,021
--------------------------
--------------------------
The accompanying notes are an integral part of these consolidated financial statements.
Eldorado Gold Corporation
Consolidated Statements of Cash Flows
(Expressed in thousands of U.S. dollars)
For the year ended December 31 Note 2013 2012
$ $
Cash flows generated from (used in):
Operating activities
Profit for the year (649,615) 318,058
Items not affecting cash
Asset retirement obligation accretion 1,337 1,842
Depreciation and amortization 149,068 113,529
Unrealized foreign exchange loss (gain) 775 (1,072)
Deferred income tax expense (recovery) 27,516 (14,311)
Loss on disposal of assets 830 509
Loss on investment in associates 1,285 5,627
Impairment loss on investment in associates 14,051 -
Writedown of assets 3,990 -
Impairment loss on property, plant and
equipment and goodwill 808,414 -
Loss (gain) on marketable securities and other
investments 2,421 (176)
Share based payments 19,492 21,794
Defined benefit pension plan expense 2,478 1,900
--------------------------
382,042 447,700
Changes in non-cash working capital 20 (25,669) (152,472)
--------------------------
356,373 295,228
Investing activities
Net cash received on acquisition of subsidiary 5 - 18,789
Purchase of property, plant and equipment (481,986) (426,174)
Proceeds from the sale of property, plant and
equipment 2,086 859
Proceeds on pre-production sales 24,877 54,705
Proceeds from the sale of marketable
securities 2,025 1,270
Funding of non-registered supplemental
retirement plan investments, net - 14,486
Investments in associates (6,357) (14,768)
Increase on investment in term deposits (34,702) -
Decrease (increase) in restricted cash (12) 55,149
--------------------------
(494,069) (295,684)
Financing activities
Issuance of common shares for cash 7,003 22,145
Proceeds from contributions net of
dispositions from
non-controlling interest 2,321 -
Dividend paid to non-controlling interests (13,281) (9,399)
Dividend paid to shareholders (84,948) (93,142)
Purchase of treasury stock (6,462) (6,830)
Long-term and bank debt proceeds 15,977 650,000
Long-term and bank debt repayments (10,354) (120,430)
Loan financing costs (223) (18,808)
--------------------------
(89,967) 423,536
--------------------------
Net increase (decrease) in cash and cash
equivalents (227,663) 423,080
Cash and cash equivalents - beginning of year 816,843 393,763
--------------------------
Cash and cash equivalents - end of year 589,180 816,843
--------------------------
--------------------------
The accompanying notes are an integral part of these consolidated financial statements.
Eldorado Gold Corporation
Consolidated Statements of Changes in Equity
(Expressed in thousands of U.S. dollars)
For the year ended December 31, Note 2013 2012
$ $
Share capital
Balance beginning of year 5,300,957 2,855,689
Shares issued upon exercise of share
options, for cash 7,003 22,145
Transfer of contributed surplus on exercise
of options 2,934 23,221
Shares issued on acquisition of European
Goldfields Ltd. 5 - 2,380,140
Transfer of contributed surplus on exercise
of deferred phantom units 3,695 19,762
--------------------------
Balance end of year 5,314,589 5,300,957
--------------------------
Treasury stock
Balance beginning of year (7,445) (4,018)
Purchase of treasury stock (6,462) (6,830)
Shares redeemed upon exercise of restricted
share units 2,954 3,403
--------------------------
Balance end of year (10,953) (7,445)
--------------------------
Contributed surplus
Balance beginning of year 65,382 30,441
Share based payments 19,847 21,092
Shares redeemed upon exercise of restricted
share units (2,954) (3,403)
Options issued on acquisition of European
Goldfields Ltd. 5 - 31,130
Deferred phantom units granted on
acquisition of European Goldfields Ltd. 5 - 29,105
Partial reversal of non-controlling interest
acquired on buy-out 2,911 -
Transfer to share capital on exercise of
options and deferred phantom units (6,629) (42,983)
--------------------------
Balance end of year 78,557 65,382
--------------------------
Accumulated other comprehensive loss
Balance beginning of year (24,535) (10,069)
Other comprehensive loss for the year 7,479 (14,466)
--------------------------
Balance end of year (17,056) (24,535)
--------------------------
Retained earnings
Balance beginning of year 594,876 382,716
Dividends paid (84,948) (93,142)
Profit attributable to shareholders of the
Company (653,329) 305,302
--------------------------
Balance end of year (143,401) 594,876
--------------------------
Total equity attributable to shareholders of
the Company 5,221,736 5,929,235
--------------------------
Non-controlling interests
Balance beginning of year 284,100 56,487
Profit attributable to non-controlling
interests 3,714 12,756
Dividends declared to non-controlling
interests (14,096) (9,399)
Non-controlling interest acquired from
European Goldfields Ltd. 5 - 224,256
Contributions net of dispositions (590) -
--------------------------
Balance end of year 273,128 284,100
--------------------------
Total equity 5,494,864 6,213,335
--------------------------
The accompanying notes are an integral part of these consolidated financial statements.
Click here for the Consolidated Financial Statements for the year ended December 31, 2013 in PDF:
http://media3.marketwire.com/docs/928969-FS-MDA.pdf
FOR FURTHER INFORMATION PLEASE CONTACT:
Eldorado Gold Corporation
Nancy Woo
Vice President Investor Relations
604.601.6650 or 1.888.353.8166
604.687.4026 (FAX)
nancyw@eldoradogold.com
www.eldoradogold.com
Loading...
Loading...
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted In: Press Releases
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
