Throughout this press release we use cash operating cost per ounce, total cash costs per ounce, all-in sustaining cost 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
NEWS RELEASE TSX: ELD NYSE: EGO April 27, 2017
Eldorado Reports 2017 First Quarter Results
VANCOUVER, BC – Eldorado Gold Corporation, (“Eldorado” or “the Company”) today reported the Company’s financial and operational results for the first quarter ended March 31, 2017.
First Quarter Financial and Operational Highlights
- Profit of $3.8 million ($0.01 per share), compared to a loss of $2.5 million or $0.00 per share in the first quarter of 2016. Adjusted net earnings of $8.0 million ($0.01 per share) compared to an adjusted net loss of $0.7 million ($0.00 per share) in the first quarter 2016.
- Gold production of 75,172 ounces, compared to 79,892 ounces from continuing operations.
- Gold revenues of $90.5 million on sales of 74,068 ounces of gold at an average realized gold price of
$1,222 per ounce.
- All-in sustaining cash costs averaged $791 per ounce; considerably lower than 2017 guidance of all-in sustaining costs of $845-875 per ounce.
- Cash operating costs averaged $466 per ounce; lower than 2017 guidance of $484-535 per ounce.
- Total liquidity of approximately $1.1 billion, including $873.9 million in cash, cash equivalents and term deposits, and $250 million in undrawn lines of credit at quarter end.
- Olympias Phase II began commissioning in the first quarter 2017.
- Announced receipt of multiple tenders for significantly better concentrate sales terms for gold concentrate produced for beyond 2017 at Olympias Phase II.
- Construction at Skouries continued on track for anticipated 2019 start-up.
- George Burns set to take on role of President & Chief Executive Officer on April 28, 2017.
“We have had a very successful first quarter of the year, with progress made at all of our development projects,” said Paul Wright, President and Chief Executive Officer. “Commissioning is underway at Olympias Phase II in Greece and we remain on track for declaring commercial production in the third quarter of this year. At Skouries, work continued during the quarter and we are still aiming for production in 2019. Both Tocantinzinho and Certej are progressing with engineering optimizations. As I leave my current role, I am confident that the incoming President & CEO, George Burns, and the Eldorado team are well positioned to continue to grow our company in a manner that provides significant additional value for shareholders.”
Throughout this press release we use cash operating cost per ounce, total cash costs per ounce, all-in sustaining cost per ounce, gross profit from gold mining operations, adjusted net earnings and cash flow from operating activities before changes in non-cash working capital as additional measures of Company performance. These are non IFRS measures. Please see our MD&A for an explanation and discussion of these non IFRS measures. All dollar amounts in US$, unless stated otherwise.
Financial Results
($ millions except as noted)
| Continuing Operations for the quarter ended March 31, | 2017 | 2016 | |||
| Kisladag | |||||
| Ounces produced | 52,644 | 52,376 | |||
| Cash operating costs ($/ounce) | 446 | 536 | |||
| Total cash cost ($/ounce) | 464 | 552 | |||
| Sustaining capex | 5.1 | 7.0 | |||
| Efemcukuru | |||||
| Ounces produced | 22,528 | 27,516 | |||
| Cash operating costs ($/ounce) | 515 | 478 | |||
| Total cash cost ($/ounce) | 531 | 500 | |||
| Sustaining capex | 3.8 | 4.8 | |||
| Olympias | |||||
| Ounces produced (1) | 0 | 2,774 | |||
| Sustaining capex | 0 | n/a | |||
| Subtotal: Continuing Operations | |||||
| Ounces produced | 75,172 | 79,892 | |||
| Cash operating costs ($/ounce) | 466 | 519 | |||
| Total cash cost ($/ounce) | 483 | 536 | |||
| Sustaining capex | 8.9 | 11.8 |
(1) Includes production from tailings retreatment in 2016.
Review of Quarterly Financial Results
Profit attributable to shareholders of the Company was $3.8 million, or $0.01 per share, compared to a loss of $2.5 million, or $0.00 per share in 2016. Adjusted net earnings were $8.0 million ($0.01 per share) as compared to an adjusted net loss of $0.7 million ($0.00 per share) for the first quarter of 2016. The main difference between profit and adjusted earnings in the first quarter of 2017 was a $3.0 million adjustment related to closing cash / working capital recorded on finalization of the sale of the Company’s Chinese assets (see the MD&A for a reconciliation of profit to adjusted earnings).
Gold sales of 74,068 ounces from continuing operations were consistent year over year, while gross profit from continuing gold mining operations increased $4.9 million due to higher gold prices and lower cash operating costs. General and administrative expenses increased $2.1 million year over year due to reorganization costs in Vancouver and Turkey. Exploration expense increased $3.2 million including $0.9 million related to development of an exploration drift at Stratoni. Mine standby costs of $1.0 million were recorded in the first quarter 2017 related to Vila Nova and Perama Hill (2016: $9.6 million mainly related to the temporary suspension of the Skouries development from January to May 2016). The effective tax rate of 80% was higher than an expected rate of 20%-30% due to withholding tax accruals in Turkey, foreign exchange effects on the local tax basis in Greece, and unrecognized losses in Canada and Greece. The relative impact of these factors was approximately equal.
First Quarter Review and 2017 Outlook
TURKEY
Kisladag
Kisladag reported gold production of 52,644 ounces for the quarter, in-line with production in the prior year. There was a reduction in ore tonnes to the leach pad year over year as low grade run-of-mine ore is no longer being placed on the pad. Average treated head grade and tonnes mined were higher year over year as the mine accessed higher grade ore at the bottom of the current cut back. Cash operating costs of $446 per ounce improved over 2016 due to higher average treated head grade, and reduced operating costs realized in labour and major consumables through operational improvements. Sustaining capital expenditures of $5.1 million were lower year over year due to reduced project work.
Efemcukuru
Gold production of 22,528 ounces for the quarter was slightly lower than 2016 due to the lower average treated head grade and slightly lower tonnes milled. Cash operating costs of $515 per ounce were higher year on year due to lower grade. Capital expenditures of $3.8 million included underground development, mine equipment overhauls, and process and waste rock/tailings facilities construction projects.
GREECE
Stratoni
Concentrate production for the first quarter was significantly higher year on year due to higher ore tonnes processed and higher zinc head grade. The mine and plant operated largely as planned in comparison to 2016 when operations were disrupted by a suspension of activities, with only two scheduled production days lost due to adverse winter weather conditions in January.
Development of the hangingwall exploration drift progressed according to plan and diamond drilling commenced from the first drill station. Extension of the main footwall access ramp below +117m level to open up future production areas commenced in earnest in January.
Olympias
Development of Olympias Phase II made significant progress during the quarter. The majority of installation work in the process plant, including piping and cabling, was completed and commissioning work commenced in late March. Ore mining and processing began in April. Commercial production is expected by the beginning of the third quarter.
Capital spending for the first quarter at Olympias was $37.1 million, with the majority deployed for continued underground development and rehabilitation in the Olympias underground, construction of the Phase II plant, and construction works in the Kokkinolakas tailings management facility.
During the quarter, the Company also announced that it had received multiple tenders for significantly better concentrate sales terms for gold concentrate produced beyond 2017. This is primarily due to the treatment of higher grade material resulting in better grades in concentrate produced. Under the new sales terms, gold payability rates have increased from 58% up to a maximum of 71%, which is expected to result in an increase of approximately 15,000 ounces of payable gold production per year. Annual Phase II production is now estimated to be approximately 85,000 ounces of gold (from 72,000 ounces per year previously) plus approximately 55,000 ounces of gold equivalent production.
Skouries
Work was restricted in the first quarter due to adverse winter weather. Earthworks, building erection and site clearing all progressed as weather allowed during the quarter. Targeted work included tailings thickener foundations and stockpile dome embankments. Engineering continued for the integrated waste management facility and the filter plant. Equipment selection for the main pressure filters for the filter plant was completed during the quarter. Total capital expenditure for the quarter was $14.0 million.
Perama Hill
The project remains on care and maintenance pending receipt of the Environmental Impact Study permit.
BRAZIL
Tocantinzinho
Installation licenses for the site, road and power line were under review by the Para State government during the first quarter. Basic engineering was nearly completed for the process plant. Detailed infrastructure engineering was ongoing and is expected to be completed during the second quarter. The installation license was received post quarter end, however the tailings and solution ponds permits remain outstanding and are expected later this year. A total of $1.9 million was spent during the quarter.
ROMANIA
Certej
Optimization studies continued during the quarter on the metallurgical process, water and waste management and site infrastructure to support the ongoing permitting activities. These optimizations are required for the oxidative process and the optimizations of waste and tailings material generated. Permitting for offsite infrastructure continued with work progressing on main power line, water tanks and mine access roads and water supply pipelines. A total of $1.9 million was spent during the quarter.
Exploration Review
Exploration activities during the quarter included reconnaissance-stage programs, drillhole targeting and drilling programs at our projects in Greece, Turkey, Romania, Serbia and Brazil. A total of 13,600 metres of exploration drilling was completed.
In Greece, the Company completed the drill-testing of the Fisoka porphyry prospect, and initiated drilling at the Tsikara porphyry prospect near Skouries. The underground resource drilling program at Mavres Petres commenced late in the quarter, targeting previously untested down-dip and along-strike projections of the orebody.
In Romania, drilling was conducted on the Certej North and Bolcana licenses, targeting the Bolcana porphyry system and related epithermal prospects on its periphery.
In Brazil, drilling programs tested both the Vulture and Parnamirim target areas within the Borborema project area in Pernambuco state. Regional geochemical sampling continued over the large Borborema project area, while at the Nazareno project, work focused on infill soil sampling, mapping, and geophysical surveys to refine targets for drilling during the second half of the year.
2017 Outlook
In 2017 Eldorado expects to produce 365,000-400,000 ounces of gold, including pre-commercial ounces from Olympias Phase II. Cash costs are forecasted at $485-535 per ounce, with all-in sustaining cash costs expected to range from $845-875 per ounce.
The Company’s balance sheet remains one of the strongest in its peer group, with approximately $874 million in cash, cash equivalents and term deposits and $250 million in undrawn credit lines. Sustaining capital for gold mining operations in 2017 is estimated to be approximately $70 million. Planned expenditures for mining development total $345 million. Exploration expenditures in 2017 are budgeted at $35 million (65% expensed and 35% capitalized), with a balanced focus on resource delineation and brownfield drilling at existing operations, advancing early-stage projects, and project generation.
Depreciation, depletion and amortization expense is expected to be approximately $335 per ounce of gold sold. General and administrative expense is expected to be approximately $45 million.
Corporate
In December 2016, the Company announced that Paul Wright, Eldorado’s current President and Chief Executive Officer, will retire from this role after the Annual General Meeting on April 27, 2017. Mr. Wright will be succeeded by Mr. George Burns, who will also join Eldorado’s Board of Directors. Mr. Wright will continue as a member of Eldorado’s Board of Directors, taking on the position of Vice-Chairman.
Mr. Ross Cory did not stand for re-election as a Director at the Company’s Annual Meeting of Shareholders. Mr. Cory served on the Board for over 13 years and the Company would like to thank him for his many years of service and dedication.
Conference Call
A conference call to discuss the details of the Company’s 2017 First Quarter Results will be held by senior management on April 28, 2017 at 8:30 AM PT (11:30 AM ET). The call will be webcast and can be accessed at Eldorado Gold’s website: www.eldoradogold.com
Conference Call Details Replay (available until May 12, 2017)
Date: Friday April 28, 2017 Toronto: 416 849 0833 Time: 8:30 am PT (11:30 am ET) Toll Free: 855 859 2056 Dial in: 647 427 7450 Pass code: 9264 4727 Toll free: 888 231 8191
About Eldorado Gold
Eldorado is a leading low cost gold producer with mining, development and exploration operations in Turkey, Greece, Romania, Serbia and Brazil. The Company’s success to date is based on a low cost strategy, a highly skilled and dedicated workforce, safe and responsible operations, and long-term partnerships with the communities where it operates. Eldorado’s common shares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).
Cautionary Note about Forward-looking Statements and Information
Certain of the statements made and information provided in this press release 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 release include, but are not limited to the Company’s 2017 First Quarter Financial and Operational Results, including statements or information with respect to: our guidance and outlook, including expected production, projected cash cost, planned capital and exploration expenditures for 2017; our expectation as to our future financial and operating performance, including future cash flow, estimated cash costs, expected metallurgical recoveries, gold price outlook; and our strategy, plans and goals, including our proposed exploration, development, construction, permitting and operating plans and priorities, and related timelines.
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 geopolitical, economic, permitting and legal climate that we operate in; the future price of gold and other commodities; exchange rates; anticipated costs and expenses; production, mineral reserves and resources and metallurgical recoveries, the impact of acquisitions, dispositions, suspensions or delays on our business and the ability to achieve our goals. In particular, except where otherwise stated, we have assumed a continuation of existing business operations on substantially the same basis as exists at the time of this release.
Even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Many assumptions may be difficult to predict and are beyond our control.
Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: geopolitical and economic climate (global and local), risks related to mineral tenure and permits; gold and other metal price volatility; mining operational and development risk; foreign country operational risks; risks of sovereign investment; regulatory environment and restrictions, including environmental regulatory restrictions and liability; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; risks related to impact of the sale of our Chinese assets on the Company’s operations; additional funding requirements; currency fluctuations; litigation risks; community and non-governmental organization actions; speculative nature of gold exploration; dilution; share price volatility; competition; loss of key employees; 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 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 under our Company name, which discussion is incorporated by reference in this release, for a fuller understanding of the risks and uncertainties that affect the Company’s business and operations.
Forward-looking statements and information is designed to help you understand management’s current views of our near and longer term prospects, and it may not be appropriate for other purposes.
There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change 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.
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 full annual financial statements and related MD&A available on our website and on SEDAR 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 press release was reviewed and approved by Paul Skayman, FAusIMM, Chief Operating Officer for Eldorado Gold Corporation, and a "qualified person" as defined by Canadian Securities Administrators' National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101").
Contacts
Investor Relations
Krista Muhr, Vice President Investor Relations & Corporate Communications 604.607.6701 or 1.888.363.8166 [email protected]
Media
Louise Burgess, Director Communications & Government Relations 604.601.6679 or 1.888.363.8166 [email protected]
Gold Production Highlights (in US$)
| First Quarter 2017 | First Quarter 2016 | Full Year 2016 | 2017 Outlook5 | |||
|---|---|---|---|---|---|---|
| Gold Production Ounces Sold Ounces Produced1 Cash Operating Cost ($/oz)2,4 Total Cash Cost ($/oz)3,4 Realized Price ($/oz - sold) | 133,467 140,989 603 658 1,198 | n/a 365,000 to 400,000 485 to 535 n/a n/a | ||||
| 74,068 | 483,461 | |||||
| 75,172 | 486,025 | |||||
| 466 | 579 | |||||
| 483 | 621 | |||||
| 1,222 | 1,253 | |||||
| Kişladağ Mine, Turkey Ounces Sold Ounces Produced Tonnes to Pad Grade (grams / tonne) Cash Operating Cost ($/oz)4 Total Cash Cost ($/oz)3,4 | 52,679 52,376 4,046,896 0.73 536 552 | n/a 230,000 to 245,000 n/a n/a 500 to 550 n/a | ||||
| 52,783 | 211,284 | |||||
| 52,644 | 211,161 | |||||
| 3,227,406 | 16,565,254 | |||||
| 1.13 | 0.80 | |||||
| 446 | 474 | |||||
| 464 | 488 | |||||
| Efemçukuru Mine, Turkey Ounces Sold Ounces Produced Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz)4 Total Cash Cost ($/oz)3,4 | 22,304 27,516 116,487 7.96 478 500 | n/a 95,000 to 105,000 n/a n/a 525 to 575 n/a | ||||
| 21,285 | 99,744 | |||||
| 22,528 | 98,364 | |||||
| 115,794 | 476,528 | |||||
| 6.77 | 7.4 | |||||
| 515 | 514 | |||||
| 531 | 530 | |||||
| Tanjianshan Mine, China Ounces Sold Ounces Produced Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz)4 Total Cash Cost ($/oz)3,4 | 14,053 14,053 268,615 1.84 852 1,083 | n/a n/a n/a n/a n/a n/a | ||||
| - | 49,266 | |||||
| - | 49,266 | |||||
| - | 869,964 | |||||
| - | 1.90 | |||||
| - | 819 | |||||
| - | 970 | |||||
| Jinfeng Mine, China Ounces Sold Ounces Produced Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz) 4 Total Cash Cost ($/oz) 3,4 | 26,096 25,935 305,484 3.26 726 807 | n/a n/a n/a n/a n/a n/a | ||||
| - | 66,902 | |||||
| - | 68,195 | |||||
| - | 766,697 | |||||
| - | 3.32 | |||||
| - | 705 | |||||
| - | 791 | |||||
| White Mountain Mine, China Ounces Sold Ounces Produced Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz) 4 Total Cash Cost ($/oz) 3,4 | 18,335 18,335 206,090 3.25 582 620 | n/a n/a n/a n/a n/a n/a | ||||
| - | 56,265 | |||||
| - | 56,265 | |||||
| - | 717,145 | |||||
| - | 2.78 | |||||
| - | 731 | |||||
| - | 773 | |||||
| Olympias, Greece Ounces Sold Ounces Produced1 Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz)4 Total Cash Cost ($/oz)3,4 | - 2,774 87,350 2.47 - - | n/a 40,000 to 50,000 n/a n/a n/a n/a | ||||
| - | - | |||||
| - | 2,774 | |||||
| - | 87,350 | |||||
| - | 2.47 | |||||
| - | - | |||||
| - | - |
1 Ounces produced include production from tailings retreatment at 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-IFRS measures. Please see our MD&A for an explanation and discussion of these.
5 Outlook assumes the following metal prices: Gold $1,150 per ounce; Silver $20 per ounce.
Unaudited Condensed Consolidated Balance Sheets
Note March 31, 2017 December 31, 2016 $ $ ASSETS Current assets
Cash and cash equivalents 642,618 883,171 Term deposits 231,258 5,292 Restricted cash 244 240 Marketable securities 45,191 28,327 Accounts receivable and other 52,121 54,315 Inventories 126,913 120,830 1,098,345 1,092,175 Other assets 11,938 48,297 Defined benefit pension plan 12,739 11,620 Property, plant and equipment 3,698,141 3,645,827 4,821,163 4,797,919
LIABILITIES & EQUITY Current liabilities
Accounts payable and accrued liabilities 104,397 90,705 104,397 90,705 Debt 5 591,845 591,589 Defined benefit pension plan 10,928 10,882 Asset retirement obligations 89,710 89,778 Deferred income tax liabilities 442,933 443,501 1,239,813 1,226,455
Equity
Share capital 2,819,821 2,819,101 Treasury stock (8,000) (7,794) Contributed surplus 2,609,055 2,606,567 Accumulated other comprehensive income (loss) 7,653 (7,172) Deficit (1,934,800) (1,928,024) Total equity attributable to shareholders of the Company 3,493,729 3,482,678 Attributable to non-controlling interests 87,621 88,786 3,581,350 3,571,464 4,821,163 4,797,919
Approved on behalf of the Board of Directors
(Signed) John Webster Director (Signed) Paul N. Wright Director Unaudited Condensed Consolidated Income Statements (Expressed in thousands of U.S. dollars except per share amounts)
$ $ (restated)* Revenue *See note 4. Metal sales 111,880 94,693
Cost of sales
Production costs 50,688 45,207 Inventory write-down - 1,346 Depreciation and amortization 18,064 18,968 68,752 65,521
Gross profit 43,128 29,172
Exploration expenses 5,247 1,961 Mine standby costs 1,031 9,558 Other operating items 2,133 - General and administrative expenses 11,614 9,467 Defined benefit pension plan expense 831 283 Share based payments 7 5,128 3,701 Other write-down of assets 1,054 - Foreign exchange loss (gain) 88 (3,440)
Operating profit 16,002 7,642
Loss on disposal of assets 307 289 Loss (gain) on marketable securities and other investments (34) 4,317 Other expense (income) (2,349) 1,695 Asset retirement obligation accretion 523 449 Interest and financing costs 1,110 5,695
Profit (loss) from continuing operations before income tax 16,445 (4,803) Income tax expense 10,776 4,795 Profit (loss) from continuing operations 5,669 (9,598) Profit (loss) from discontinued operations 4 (3,000) 5,705 Profit (loss) for the period 2,669 (3,893)
Attributable to:
Shareholders of the Company 3,834 (2,478) Non-controlling interests (1,165) (1,415) Profit (loss) for the period 2,669 (3,893)
Profit (loss) attributable to shareholders of the Company
Continuing operations 6,834 (7,938) Discontinued operations (3,000) 5,460 3,834 (2,478)
Weighted average number of shares outstanding (thousands)
Basic 716,600 716,583 Diluted 717,283 716,583
Profit (loss) per share attributable to shareholders of the Company:
Basic profit (loss) per share 0.01 (0.00) Diluted profit (loss) per share 0.01 (0.00)
Profit (loss) per share attributable to shareholders of the Company - continuing operations:
Basic profit (loss) per share 0.01 (0.01) Diluted profit (loss) per share 0.01 (0.01)
Unaudited Condensed Consolidated Statements of Comprehensive Income
For the quarter ended March 31 2017 2016
$ $
Profit (loss) for the period 2,669 (3,893)
Other comprehensive income (loss):
Change in fair value of available-for-sale financial assets, net of income 14,720 9,689 tax of $2,144 and $nil
Transfer of realized loss on disposal of availabe-for-sale financial - 4,336 Actuarial gains (losses) on defined benefit pension plans 105 (122) Total other comprehensive income for the period 14,825 13,903 Total comprehensive income for the period 17,494 10,010
Attributable to:
Shareholders of the Company 18,659 11,425 Non-controlling interests (1,165) (1,415) 17,494 10,010 Unaudited Condensed Consolidated Statements of Cash Flows
$ $ (restated)* Cash flows generated from (used in): *See note 4.
Operating activities
Profit (loss) for the period from continuing operations 5,669 (9,598) Items not affecting cash:
Asset retirement obligation accretion 523 449 Depreciation and amortization 18,064 18,968 Unrealized foreign exchange loss (74) (647) Deferred income tax expense (recovery) (2,713) (9,234) Loss on disposal of assets 307 289 Other write-down of assets 1,054 - Loss (gain) on marketable securities and other investments (34) 4,317 Share based payments 5,128 3,701 Defined benefit pension plan expense 831 283 28,755 8,528 Property reclamation payments (591) (80) Changes in non-cash working capital 9 19,610 (15,315) Net cash provided (used) by operating activities of continuing operations 47,774 (6,867) Net cash provided by operating activities of discontinued operations - 14,368
Investing activities
Purchase of property, plant and equipment (73,837) (59,320) Proceeds from the sale of property, plant and equipment 1 384 Proceeds on production of tailings retreatment - 3,878 Purchase of marketable securities - (1,834) Proceeds from the sale of marketable securities - 3,287 Value added taxes related to mineral property expenditures, net 23,584 (5,059) Investment in term deposits (225,966) (913) Decrease in restricted cash (4) (14) Net cash used by investing activities of continuing operations (276,222) (59,591) Net cash used by investing activities of discontinued operations - (5,141)
Financing activities
Issuance of common shares for cash 554 - Dividend paid to shareholders (10,610) - Purchase of treasury stock (2,049) - Net cash used by financing activities of continuing operations (12,105) -
Decrease in cash and cash equivalents (240,553) (57,231) Cash and cash equivalents - beginning of period 883,171 288,189 Cash and cash equivalents - end of period 642,618 230,958 Consolidated Statements of Changes in Equity
For the quarter ended March 31, 2017 2016 $ $ Share capital
| Balance beginning of period | 2,819,101 | 5,319,101 |
| Shares issued upon exercise of share options, for cash | 554 | - |
| Transfer of contributed surplus on exercise of options | 166 | - |
| Balance end of period | 2,819,821 | 5,319,101 |
Treasury stock
| Balance beginning of period | (7,794) | (10,211) |
| Purchase of treasury stock | (2,049) | - |
| Shares redeemed upon exercise of restricted share units | 1,843 | 2,196 |
| Balance end of period | (8,000) | (8,015) |
Contributed surplus
| Balance beginning of period | 2,606,567 | 47,236 |
| Share based payments | 4,497 | 3,134 |
| Shares redeemed upon exercise of restricted share units | (1,843) | (2,196) |
| Recognition of other non-current liability and related costs | - | (1,416) |
| Transfer to share capital on exercise of options | (166) | - |
| Balance end of period | 2,609,055 | 46,758 |
Accumulated other comprehensive loss
| Balance beginning of period | (7,172) | (20,572) |
| Other comprehensive income for the period | 14,825 | 13,903 |
| Balance end of period | 7,653 | (6,669) |
Deficit
| Balance beginning of period | (1,928,024) | (1,583,873) |
| Dividends paid | (10,610) | - |
| Profit (loss) attributable to shareholders of the Company | 3,834 | (2,478) |
| Balance end of period | (1,934,800) | (1,586,351) |
Total equity attributable to shareholders of the Company
3,493,729 3,764,824
Non-controlling interests
| Balance beginning of period | 88,786 | 169,755 |
| Profit (loss) attributable to non-controlling interests | (1,165) | (1,415) |
| Balance end of period | 87,621 | 168,340 |
3,581,350 3,933,164
Total equity