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 acti vities before changes in non -cash working capital as
NEWS RELEASE ELD No. 15-19 TSX: ELD NYSE: EGO October 29, 2015
Eldorado Reports 2015 Third Quarter Financial and Operational Results Gold production of 183,226 ounces, All-In Sustaining Costs of $835 per ounce
VANCOUVER, BC – For the third quarter ended September 30, 2015, Eldorado Gold Corporation, (“Eldorado” or “the Company”) reports gold production of 183,226 ounces (Q3 2014 - 192,578 per ounce) with average cash costs of $552 per ounce (Q3 2014 - $488 per ounce). Adjusted net loss for the quarter was $4.0 million ($0.01 loss per share) compared to a $36.1 million profit ($0.05 per share) in Q3 2014.
Paul Wright, Chief Executive Officer said: “Our consistently strong operational results underline many of the core strengths of the Company. The operational teams in Turkey and China and the international exploration team all delivered another successful quarter. In Greece, our employees and contractors are now back at work on the Skouries and Olympias projects, and mining operations have resumed at Stratoni. The Company anticipates further positive engagement with the Greek government as we move forward with development.”
“Based on our continued strong results, we are upgrading our 2015 production guidance to be 710,000 ounces of gold at average cash costs of $565 per ounce and all-in sustaining costs of $870 per ounce.”
Third Quarter Highlights
Financial
- Gold revenues were $206.2 million (2014 – $241.2 million) on sales of 182,124 ounces of gold at an average realized gold price of $1,132 per ounce (2014 – 189,321 ounces at $1,274 per ounce).
- Loss attributable to shareholders of the Company was $96.1 million ($0.13 loss per share), compared to net profit attributable to shareholders of the Company of $19.8 million ($0.03 per share) in the third quarter of 2014.
- The Company recorded non-cash charges totaling $84.4 million to income tax expense including $63.5 million related to an increase in the corporate income tax rate in Greece, and $20.9 million related to the impact of foreign currency movements on the valuation of the Company’s tax basis of assets in Turkey, China and Brazil.
Liquidity of $763.8 million, including $388.8 million in cash, cash equivalents and term deposits, and $375.0 million in undrawn lines of credit.
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 dollars unless stated otherwise.
Operational & Corporate
- Gold production of 183,226 ounces (2014 – 192,578 ounces), including production from Olympias tailings retreatment.
- Cash operating costs averaged $552 per ounce (2014 – $488 per ounce).
- All in sustaining cash costs averaged $835 per ounce (2014 – $735 per ounce).
- Gross profit from gold mining operations of $53.1 million (2014 – $102.9 million).
- Adjusted net loss of $4.0 million ($0.01 loss per share) compared to adjusted net earnings of $36.1 million ($0.05 earnings per share) in 2014.
- Cash generated from operating activities before changes in non-cash working capital was $43.4 million (2014 – $78.7 million).
Third Quarter Financial Results
| ($ millions except where noted) | Q3 2015 | Q3 2014 | YTD 2015 | YTD 2014 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Revenues | $211.5 | $263.5 | $664.0 | $808.9 | |||||
| Gold revenues | $206.2 | $241.2 | $634.4 | $736.4 | |||||
| Gold sold (ounces) | 182,124 | 189,321 | 534,000 | 570,570 | |||||
| Average realized gold price (per ounce) | $1,132 | $1,274 | $1,188 | $1,291 | |||||
| Cash operating costs (per ounce sold) | $552 | $488 | $547 | $499 | |||||
| Total cash cost (per ounce sold) | $609 | $543 | $601 | $556 | |||||
| All-in sustaining cash cost (per ounce sold) | $835 | $735 | $819 | $784 | |||||
| Gross profit from gold mining operations | $53.1 | $102.9 | $191.7 | $301.8 | |||||
| Adjusted net earnings/(loss) | ($4.0) | $36.1 | $32.5 | $109.2 | |||||
| Net profit (loss) attributable to shareholders of the Company | ($96.1) | $19.8 | ($302.9) | $88.7 | |||||
| Earnings (loss) per share attributable to shareholders of the Company – Basic (per share) | ($0.13) | $0.03 | ($0.42) | $0.12 | |||||
| Earnings (loss) per share attributable to shareholders of the Company – Diluted (per share) | ($0.13) | $0.03 | ($0.42) | $0.12 | |||||
| Dividends paid (Cdn$ per share) | $0.01 | $0.01 | $0.02 | $0.02 | |||||
| Cash flow from operating activities before changes in non-cash working capital | $43.4 | $78.7 | $164.2 | $265.6 |
Loss attributable to shareholders of the Company was $96.1 million (or $0.13 loss per share) for the quarter compared with profit of $19.8 million (or $0.03 per share) in the third quarter of 2014. During the quarter the Company recorded non-cash charges to income tax expense of $84.4 million including $63.5 million related to a change in the corporate income tax rate in Greece, and $20.9 million related to the impact of foreign currency movements on the valuation of the Company’s tax basis of assets in Turkey, China, and Brazil. Adjusted net loss for the quarter was $4.0 million (or $0.1 loss per share) compared with adjusted net profit of $36.1 million (or $0.05 earnings per share) in the third quarter of 2014.
During the quarter the Company temporarily suspended operating and development activities at its projects in Greece as a result of a decision by the Greek Ministry of Energy and Environment suspending the technical studies previously approved for the Company’s Kassandra mining projects. The Company expensed $6.3 million in mine standby costs for the five week period that the activities were suspended. A significant portion of this standby cost relates to the payment of 50% salary to those employees suspended. Activities recommenced in October after the Council of State – Greece’s Supreme Court on administrative and environmental matters – issued an injunction against enforcement of the decision of the Ministry of Energy and Environment. This is an interim injunction which will be in effect pending the final decision of the Council of State in the proceedings in which the interim injunction was granted.
Gold sales volumes and realized prices for the third quarter fell year on year which impacted gold revenues and gross profit from gold mining operations. The decrease in sales volumes was mainly due to lower production at Kisladag year on year. Cash operating costs per ounce increased year on year at all mines except Efemcukuru. General and administrative costs fell $5.5 million year on year mainly due to lower costs in the Company’s Vancouver and Ankara offices as a result of a weakening in the Canadian and Turkish currencies in relation to the US dollar. Interest and financing costs fell $3.4 million due to an increase in the capitalization of bond interest on the Company’s Greek development projects.
Operational Review
TURKEY
Kisladag
As expected, gold production for the quarter was 11% lower, and cash operating costs were 33% higher year on year due to a 41% decrease in ore grade mitigated somewhat by a 38% increase in ore tonnes. These changes year on year were due to planned mining phase changes and increases in sulfide run of mine ore placed on the leach pad, which resulted in a lower average treated head grade. Capital expenditures for the quarter included costs for capitalized waste stripping, mine equipment overhauls, overland conveyor and leach pad construction.
Efemcukuru
Gold production for the quarter was 1% higher year on year. Cash operating costs were 14% lower due to a weaker Turkish lira and cost reduction initiatives. Capital expenditures included underground development, mine equipment overhauls, and process and tailings facility construction projects.
CHINA
Jinfeng
Gold production was 4% lower year on year mainly as a result of the completion of open pit mining in the first quarter this year. Cash operating costs were 5% higher due to lower gold production. Gold sales were impacted by shipping delays at quarter end, which pushed 5,851 ounces of September gold production into October sales. No shipping delays are expected to occur for the rest of the year. Capital expenditures for the quarter included underground development, mining equipment and tailings dam capacity improvements.
Tanjianshan
Gold production for the quarter was 14% higher year on year mainly due to a drawdown of gold-incircuit inventory. Cash operating costs per ounce were 18% higher for the quarter mainly due to higher ore tonnes mined at a lower head grade (123,343 tonnes at 2.63 g/t compared to 63,343 tonnes at 3.67 g/t year on year). Capital spending included capitalized waste stripping at the Jinlonggou pit, development of the decline at the Qinlongtan deposit, and tailings dam construction.
White Mountain
Gold production during the quarter was 10% lower year on year mainly due to gold in circuit inventory movements and lower tonnes and average recoveries. Cash operating costs per ounce were 17% higher mainly due to higher stope development activities as well as lower gold production. Capital expenditures included capitalized underground development, processing plant improvements and tailings dam works.
GREECE
Stratoni
Concentrate production for the third quarter was lower year on year due to lower ore tonnes processed and lower zinc head grade. Plant throughput was affected by lower mine production as a result of fewer production stopes available in the mine as well as a five week suspension of operations at the Kassandra mines. During the quarter the Company recorded a non-cash $1.6 million write-down of lead and zinc concentrate inventories due to low metal prices.
In October the Company entered into an amendment to the Stratoni silver stream agreement with Silver Wheaton. Since 2007, Eldorado has received a fixed $3.90 per ounce of payable silver produced from the mine (subject to a 1% increase per year). Under the revised terms, Eldorado will receive additional Top Up Payments (“TUP”) per ounce based on the number of exploration metres drilled at Stratoni by December 31, 2020. The TUP payments are in addition to the fixed payment of $3.90 per ounce and will be based on the following schedule:
- 10,000 – 19,999 exploration metres drilled = $2.50/oz TUP
- 20,000 – 29,999 exploration metres drilled = $5.00/oz TUP
- 30,000+ exploration metres drilled = $7.00/oz TUP
Development Review
TURKEY
Kisladag Mine Optimization
Modifications to the crushing and screening circuits began during the quarter with the goal of optimizing product crush size. Completion is targeted for the first quarter of 2016. Engineering for the Phase IV primary crusher and expansion circuit was ongoing during the quarter. Modification of the leach pad conveying system to increase throughput began with commissioning of the system scheduled for early 2016. Installation of the new 154 KV substation was completed. Approvals were received from Turkish regulatory authorities for construction of the transmission line feeding the substation, and preliminary work began on the line. A total of $8.6 million was spent on mine expansion and optimization work.
GREECE
Olympias
Underground development and refurbishing continued during the quarter in parallel with tailings retreatment. Development of the main decline accessing the orebody from the Kokkinolakas valley also progressed using cover grouting to provide control of ground water inflows during excavation. Significant progress was made on the construction of the Kokkinolakas TMF. During the quarter, Olympias treated 119,314 tonnes of tailings and produced 2,989 gold ounces. An estimated 900,000 wet metric tonnes of tailings remain to be reclaimed from the tailings dam.
The basic engineering package was completed during the quarter with the project advancing to the detailed engineering and procurement phase. Good progress was made with the completion of the Hazard and Operability Study review and a 30% milestone design review. Procurement activities were ramped up with the placement of purchase orders for the flotation cells and ball mill. Detailed geotechnical investigations also took place, and the civil detailed design contractor commenced the civil/structural design, and detailing of the priority areas. The five week suspension of activities at the Kassandra mines impacted site work, however engineering and procurement continued. Overall expenditure for the period was $12.9 million.
Skouries
Prior to the five week suspension of activities construction advanced with equipment and structural steel deliveries to the site. Installation of structural steel and flotation tanks also commenced in the flotation buildings with good progress. Favorable weather during the quarter enabled progress on earthworks. Work also progressed on the construction of the Karatzas Lakkos tailing storage facility, with excavation and profiling started in the ravine bed in preparation for the installation of the bottom outlet. During the suspension period, work continued on finalising the engineering and procurement activities with a substantial completion projected by the end of the fourth quarter. Overall expenditure for the period was $24.7 million.
ROMANIA
Certej
Following the release of the results from the positive feasibility study in the second quarter, work continued on further optimization of the project through a series of trade off studies which are now underway. This work includes process improvements around silver recovery as well as defining supply based opportunities associated with lime, limestone and oxygen supplies. Engineering support for ongoing permitting activities continues as a key focus of effort through the end of 2015.
Overall expenditure of $2.5 million was spent on Certej including site work, ongoing metallurgical testwork, and engineering support.
CHINA
Eastern Dragon
Work continued on the preparation of reports and information as follow-on from receipt of the Project Permit Approval (PPA) from the National Development and Reform Commission. Installation work related to completion of structural steel support and access to the process circuit continued inside the plant facilities while additional infrastructure items related to completion of power and heating facilities were ongoing. Overall expenditure for the period was $0.6 million.
BRAZIL
Tocantinzinho
Following completion and release of the positive feasibility study in the second quarter, activity continued on the development of opportunities identified in the study. In addition to an engineering analysis of the process design, the impact of the continued weakening of the Brazilian Real on the project economics is being assessed. Work on improving access to the site resumed during the dry season. Overall expenditure of $1.1 million was spent during the period.
Exploration Review
Greece
Third quarter exploration activities were limited to brownfields programs in the Halkidiki district. Underground drilling continued at Stratoni, targeting the along-strike western extension of the Mavres Petres orebody. New drilling results included intercepts of 37.25 metres @ 6.42 g/t Au, 324 g/t Ag, and 28.5% Pb + Zn (MP-0756); 7.3 metres @ 1.48 g/t Au, 183 g/t Ag, and 13.3% Pb + Zn (MP-0758); 30.4 metres @ 6.12 g/t Au, 107 g/t Ag, and 16.6% Pb + Zn (MP-0759); and 21.3 metres @ 4.04 g/t Au, 718 g/t Ag, and 17.8% Pb + Zn (also MP-0759). Exploration work was curtailed in late August due to the suspension of activities.
Romania
Drilling programs were conducted at the Magura and Muncel projects. At Magura, 22 drillholes totalling over 7,700 metres of drilling tested a series of epithermal veins and peripheral stockwork zones over a strike length of approximately one kilometre. Nearly all drillholes intersected significant mineralized zones, with notable intersections including: 14.0 metres @ 2.27 g/t Au (MASD-060); 4.0 metres @ 3.29 g/t Au (MASD-064); 4.0 metres @ 3.75 g/t Au (MASD-070); and 3.0 metres @ 8.51 g/t Au (MASD-074). At Muncel, drilling tested for downdip extensions of historically mined ore bodies.
Turkey
Exploration drilling commenced late in the quarter at the Dolek porphyry/epithermal prospect in northeastern Turkey. The current program is testing several structurally-controlled mineralized zones spatially associated with magnetic and geochemical anomalies within an alteration system exposed over an area of 10 square kilometres. Detailed mapping and sampling programs continued at Efemcukuru, in preparation for surface drilling of new targets in the fourth quarter.
China
At White Mountain, underground exploration included three step-out drillholes in the Far North zone. All three drillholes intersected high-grade breccia zones along or just beneath the targeted sandstonedolomite contact. Results included 10.4 metres @ 10.14 g/t Au (DHE365-323a), 6.8 metres @ 14.51 g/t Au (DHE365-324), and 1.0 metres @ 8.84 g/t Au (DHE365-325).
At Tanjianshan, underground exploration drilling from the Qinlongtan North decline continued through the quarter. The drilling confirms down-dip continuity of the high-grade orebody, with new intercepts of 13.8 metres @ 6.16 g/t Au (QD-UG30) and 4.8 metres @ 4.27 g/t Au (QD-UG 39). These intersections represent down-dip stepouts of 40 metres and 75 metres respectively from the current resource model.
Corporate
The Company is pleased to announce two executive promotions within the organization. Shane Williams, based in the Athens office, was promoted to Vice President, Capital Projects effective July 1, 2015. Jacinta Zaleski, based in the Vancouver office, will be promoted to Vice President, Human Resources, effective November 1, 2015.
Norman Pitcher will be stepping down as President, effective December 31, 2015. Paul Wright, Eldorado’s Chief Executive Officer, noted “Norm has recently informed us of his intention to retire from the Company to pursue personal interests. Norm will be greatly missed as we all hold him in very high regard and have worked closely together for over 12 years. We thank him for the significant contributions he has made throughout the organization and we wish him well.”
Paul Wright will resume the role of President and Chief Executive Officer.
Compensation
In light of the current gold price, and as a part of continued cost savings, the Company will implement the following effective November 1, 2015:
- A 20% reduction in base salary for the Chief Executive Officer.
- A 10% reduction in base salary for the Executive Team (President, Chief Financial Officer, Chief Operating Officer, Executive Vice President, Administration & Corporate Secretary).
- A 10% reduction in the annual retainer fee for the Board of Directors.
Outlook
Gold production for 2015 is forecast to be 710,000 ounces of gold with average cash costs for commercial production of $565 per ounce and all-in sustaining cash costs of $870 per ounce. Previous mid-year guidance was production of 690,000 ounces at average cash costs of $590 per ounce and all-in sustaining cash costs of $925 per ounce. Forecasted sustaining capital spending remains unchanged at $110.0 million. New project development capital spending is now forecast at $225.0 million, compared with previous guidance of $300.0 million. The forecast for new project development capital is lower than previous guidance mainly due to presently projected lower capital spending at Skouries.
Conference Call
Senior management of the Company will host a conference call on October 30, 2015 at 9:00 AM ET to discuss Eldorado’s Third Quarter 2015 Financial and Operating Results. The call will be webcast and can be accessed at Eldorado’s website at www.eldoradogold.com. Participants may join the call by dialing toll-free: 1 888 231 8191 or 647 427 7450. A replay is available until November 6, 2015 by dialing tollfree: 1 855 859 2056 or 416 849 0833 (pass code 5125 3588).
About Eldorado Gold
Eldorado is a leading low cost gold producer with mining, development and exploration operations in Turkey, China, Greece, Romania 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).
Dr. Peter Lewis, P. Geo., Vice President, Exploration at Eldorado, is the Qualified Person for the technical disclosure of exploration results in this press release. Drillhole results quoted represent mineralized widths in drillholes, which are greater than the true widths of mineralized zones. Assay results reported in this release for Greece were determined from diamond drill core samples that were crushed, split, and pulverized at Eldorado’s preparation facility in Canakkale, Turkey. Gold analyses were completed by fire assay at the Bureau Veritas (formerly AcmeLabs) facility in Ankara, Turkey. Silver, lead, and zinc analyses were completed in the Bureau Veritas Vancouver laboratory using Aqua Regia Digestion and either an ICP-MS finish (silver) or ICP-ES finish (lead and zinc).. Field duplicate and blank samples were inserted prior to shipment to the preparation facility, certified standard reference materials were inserted prior to shipment to the assay laboratory, and results were regularly monitored to ensure the quality of the data. Assay results reported in this release for Romania were from drillcore samples that were prepared and assayed at the ALS facility in Romania. Analysis for gold used fire assay methods. Standard reference materials, blank and field duplicate samples were regularly inserted to monitor and control the quality of the assay data. Assay results reported in this release for China were determined from diamond drill core samples that were crushed, split, and pulverized at Eldorado’s sample preparation facilities at the Tanjianshan and White Mountain mines. Gold analyses were completed by fire assay at the ALS Chemex facility in Guangzhou. Field duplicate, and blank samples were inserted prior to shipment to the preparation facility, certified standard reference materials were inserted prior to shipment to the assay laboratory, and results were regularly monitored to ensure the quality of the data.
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 2015 Third 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 27, 2015.
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.
Contact
Krista Muhr Vice President Investor Relations & Corporate Communications 604 601 6701 or 1 888 353 8166 [email protected]
ELDORADO GOLD Q3 2015 Gold Production Highlights (in US$)
| Third Quarter 2015 | Third Quarter 2014 | YTD 2015 | YTD 2014 | |||
|---|---|---|---|---|---|---|
| Gold Production Ounces Sold Ounces Produced1 Cash Operating Cost ($/oz)2,4 Total Cash Cost ($/oz)3,4 Realized Price ($/oz - sold) | 189,321 192,578 488 543 1,274 | 570,570 589,652 499 556 1,291 | ||||
| 182,124 | 534,000 | |||||
| 183,226 | 553,800 | |||||
| 552 | 547 | |||||
| 609 | 601 | |||||
| 1,132 | 1,188 | |||||
| Kişladağ Mine, Turkey Ounces Sold Ounces Produced Tonnes to Pad Grade (grams / tonne) Cash Operating Cost ($/oz)4 Total Cash Cost ($/oz)3,4 | 82,374 78,030 3,829,444 1.28 411 427 | 222,041 222,085 10,814,170 1.04 435 454 | ||||
| 69,514 | 216,497 | |||||
| 69,672 | 216,706 | |||||
| 5,291,983 | 14,391,185 | |||||
| 0.75 | 0.70 | |||||
| 548 | 553 | |||||
| 558 | 568 | |||||
| Efemçukuru Mine, Turkey Ounces Sold Ounces Produced Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz)4 Total Cash Cost ($/oz)3,4 | 24,033 26,838 106,942 9.08 547 564 | 77,115 78,841 324,149 8.54 541 562 | ||||
| 26,399 | 73,250 | |||||
| 27,123 | 76,048 | |||||
| 116,723 | 335,993 | |||||
| 8.18 | 8.03 | |||||
| 472 | 507 | |||||
| 487 | 524 | |||||
| Tanjianshan Mine, China Ounces Sold Ounces Produced Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz)4 Total Cash Cost ($/oz)3,4 | 25,387 25,387 281,863 3.50 381 563 | 79,556 79,556 823,699 3.41 399 575 | ||||
| 37,254 | 80,755 | |||||
| 29,055 | 80,755 | |||||
| 272,314 | 803,805 | |||||
| 3.28 | 3.38 | |||||
| 450 | 435 | |||||
| 612 | 602 | |||||
| Jinfeng Mine, China Ounces Sold Ounces Produced Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz) 4 Total Cash Cost ($/oz) 3,4 | 39,397 39,421 353,048 3.86 609 693 | 126,255 126,284 1,090,006 4.01 590 673 | ||||
| 32,598 | 107,573 | |||||
| 38,028 | 112,948 | |||||
| 339,300 | 990,744 | |||||
| 4.09 | 4.13 | |||||
| 639 | 566 | |||||
| 719 | 651 | |||||
| White Mountain Mine, China Ounces Sold Ounces Produced Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz) 4 Total Cash Cost ($/oz) 3,4 | 18,130 18,130 218,500 2.79 648 691 | 65,603 65,603 632,923 3.48 611 651 | ||||
| 16,359 | 55,925 | |||||
| 16,359 | 55,925 | |||||
| 214,025 | 631,385 | |||||
| 2.85 | 3.12 | |||||
| 761 | 699 | |||||
| 799 | 738 | |||||
| Olympias, Greece Ounces Sold Ounces Produced1 Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz)4 Total Cash Cost ($/oz)3,4 | - 4,772 137,566 2.74 - - | - 17,283 450,101 2.87 - - | ||||
| - | - | |||||
| 2,989 | 11,418 | |||||
| 119,315 | 423,248 | |||||
| 1.02 | 1.89 | |||||
| - | - | |||||
| - | - |
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.
Unaudited Condensed Consolidated Balance Sheets
Note September 30, 2015 December 31, 2014 $ $ ASSETS Current assets
Cash and cash equivalents 384,300 498,514 Term deposits 4,454 2,800 Restricted cash 258 262 16,021 4,251 Marketable securities Accounts receivable and other 74,463 117,995 Inventories 197,126 223,412 676,622 847,234 Deferred income tax assets - 104 Other assets 69,890 43,605 Defined benefit pension plan 12,595 12,790 Property, plant and equipment 5,822,828 5,963,611 526,296 526,296 Goodwill 7,108,231 7,393,640
LIABILITIES & EQUITY Current liabilities
Accounts payable and accrued liabilities 4(b) 220,151 184,712 Current debt 6 - 16,343 220,151 201,055 Debt 6 588,846 587,201 Other non-current liabilities 4(b) 2,127 49,194 Asset retirement obligations 111,240 109,069 Deferred income tax liabilities 7 922,902 869,207 1,845,266 1,815,726
Equity
Share capital 8 5,319,101 5,318,950 Treasury stock (10,449) (12,949) Contributed surplus 45,261 38,430 Accumulated other comprehensive loss (22,669) (18,127) (367,996) (53,804) Deficit Total equity attributable to shareholders of the Company 4,963,248 5,272,500 Attributable to non-controlling interests 299,717 305,414 5,262,965 5,577,914 7,108,231 7,393,640
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 US dollars except per share amounts)
Three months ended Nine months ended September 30, September 30, Note 2015 2014 2015 2014 $ $ $ $ Revenue
Metal sales 211,516 263,510 664,012 808,877
Cost of sales
Production costs 117,769 123,503 352,622 380,812 Inventory write-down 1,595 7,577 7,805 7,577 Depreciation and amortization 44,167 39,341 130,442 129,008 163,531 170,421 490,869 517,397
Gross profit
47,985 93,089 173,143 291,480
Exploration expenses 4,522 3,488 10,831 11,273 Mine standby costs 7,027 - 8,439 - General and administrative expenses 11,908 17,430 41,383 52,373 Defined benefit pension plan expense 406 407 1,266 1,223 Share based payments 2,803 3,253 12,977 15,528 Impairment loss on property, plant and equipment 5 - - 254,910 - Other writedown of assets 6,891 - 6,891 - Foreign exchange loss 4,765 4,468 13,416 1,554
Operating profit (loss)
9,663 64,043 (176,970) 209,529
Loss on disposal of assets 24 278 40 2,103 Loss on marketable securities and other investments - 122 - 1,444 Loss on investments in associates - - - 102 Other income (1,402) (4,206) (5,566) (7,053) Asset retirement obligation accretion 610 582 1,808 1,745 Interest and financing costs 3,385 6,832 13,393 23,153
Profit (loss) before income tax 7,046 60,435 (186,645) 188,035 Income tax expense 7 102,684 38,900 113,091 96,343 Profit (loss) for the period (95,638) 21,535 (299,736) 91,692
Attributable to:
Shareholders of the Company (96,091) 19,791 (302,935) 88,691 Non-controlling interests 453 1,744 3,199 3,001 Profit (loss) for the period (95,638) 21,535 (299,736) 91,692
Weighted average number of shares outstanding Basic 716,587 716,284 716,586 716,254 Diluted 716,589 716,284 716,591 716,254
Earnings per share attributable to shareholders of the Company:
Basic earnings (loss) per share (0.13) 0.03 (0.42) 0.12 Diluted earnings (loss) per share (0.13) 0.03 (0.42) 0.12 Unaudited Condensed Consolidated Statements of Comprehensive Income
Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 $ $ $ $
Profit (loss) for the period (95,638) 21,535 (299,736) 91,692
Other comprehensive income (loss):
Change in fair value of available-for-sale financial assets (5,451) (687) (4,542) (840) Realized gains on disposal of available-for-sale financial
- 142 - 901
assets Total other comprehensive (loss) gain for the period (5,451) (545) (4,542) 61 (101,089) 20,990 (304,278) 91,753
Total comprehensive income (loss) for the period
Attributable to:
| Shareholders of the Company | (101,542) | 19,246 | (307,477) | 88,752 |
| Non-controlling interests | 453 | 1,744 | 3,199 | 3,001 |
| (101,089) | 20,990 | (304,278) | 91,753 |