Q2, 2010 Financial and Operating Results Record Production, $0.11 earnings per share
NEWS RELEASE ELD No. 10-13 TSX: ELD NYSE:EGO ASX: EAU July 29, 2010
Q2, 2010 Financial and Operating Results Record Production, $0.11 earnings per share
(all figures in United States dollars, unless otherwise noted)
VANCOUVER, BC – Paul N. Wright, President and Chief Executive Officer of Eldorado Gold Corporation, (“Eldorado” or the “Company”) is pleased to report on the Company's financial and operational results for the second quarter ended June 30, 2010. Eldorado reported net income of $60.5 million or $0.11 per share for the period and the Company generated $92.3 million in cash from operating activities before changes in non-cash working capital.
Q2 2010 Highlights
- Produced 167,940 ounces of gold at an average cash operating cost of $ 357 per ounce (total cash cost $410 per ounce)
- Sold 172,826 ounces of gold at a realized average price of $1,195 per ounce
- Reported record earnings of $0.11 per share
- Generated $92.3 million of cash or $0.17 per share from operating activities before changes in non-cash working capital
- Paid an initial dividend, June 18, 2010 (C$0.05/share)
- Announced the acquisition of Brazauro Resources
“The Company continues to have a very successful year, with our mines delivering in accordance with our stated plan and contributing to six consecutive quarters of increased production. Production of 167,940 ounces of gold at a cash operating cost of $357 per ounce resulted in the increase in net income and revenue of 130% and 158% respectively over the comparable period in 2009.” commented Paul N. Wright President and CEO. “Continued strong performance combined with our outlook for the balance of the year has resulted in a favourable adjustment in operating guidance for the year. We now plan to produce 625,000 ounces of gold at cash operating costs of $375 per ounce.”
Financial Results
Eldorado’s consolidated net income for the second quarter of 2010 was $60.5 million or $0.11 per share, compared with $25.9 million or $0.07 per share in the second quarter of 2009. Increase in profit for the period resulted from significantly higher sales volumes and increased realized prices.
In the second quarter of the year we sold 172,826 ounces of gold at an average price of $1,195 per ounce resulting in a 99% increase in sales over the second quarter of 2009 when we sold 86,453 ounces of gold at an average price of $927 per ounce.
Operating Performance
Kisladag During the quarter we placed 2,686,284 tonnes of ore on the leach pad at a grade of 1.12 grams per tonne of gold. We produced 70,451 ounces of gold at a cash operating cost of $304 per ounce, compared to 62,985 ounces of gold at a cash operating cost of $268 per ounce in the second quarter of 2009. Kisladag continued to benefit from improvements made to the processing circuit late in 2009. Management is undertaking a review of heap leach recoveries at Kisladag as a result of the strong gold production in recent quarters.
Tanjianshan We milled 271,749 tonnes of ore at a grade of 4.38 grams per tonne of gold in Q2 2010, and produced 28,884 ounces of gold at a cash operating cost of $387 compared to 21,587 ounces at a cash operating cost of $412 per ounce in Q2 2009. Both the mine and plant are operating according to plan.
Jinfeng We milled 392,211 tonnes of ore at a grade of 4.51 g/t and produced 52,659 ounces of gold at a cash operating cost of $381 per ounce. Mill feed at Jinfeng is being provided by both the open pit and underground mines, which are performing as expected.
White Mountain At White Mountain we milled 167,981 tonnes of ore at a grade of 3.78 grams per tonne gold and produced 15,946 ounces of gold at a cash operating cost of $442 per ounce.
Development
Efemcukuru Construction is proceeding in accordance with plan. Major focus areas for the quarter included final setting of process equipment with piping and mechanical installations are underway within the process plant. Concrete placement was completed at the filter and backfill plant, steel erection is underway. Truck shop and mine dry concrete and steel erection was completed; foundation work was also started on the administration building; and the water treatment plant was completed and is ready for operation. The mining contractor was mobilized at the end of June and work on the preparation of the portal was begun.
Vila Nova Iron Ore Mining activities were initiated during the quarter, mostly directed towards waste stripping and stock piling of iron ore from the top benches. We are projecting iron ore sales to begin early in the fourth quarter.
Perama Hill Project The Greek Ministry of Environment continued its review of the Pre Environmental Impact Assessment (“PEIA”) which was submitted in October 2009. During the quarter work progressed on the full Environmental Impact Assessment which will be submitted upon approval of the PEIA.
Eastern Dragon Permitting activities remained the focus during Q2 2010, along with regional exploration activities as the weather improved.
Exploration
Turkey Work on our reconnaissance projects at MH, Sizma, Dolek, and AS focused on completing geological mapping, geophysical surveys, and geochemical sampling programs directed towards defining targets for drilling during Q3 and Q4. At Efemcukuru, we completed the preliminary drilling program on the Kokarpinar vein, which lies parallel to and approximately 400 m east of the Kestane Beleni vein hosting the Efemcukuru deposit. Four of the six holes drilled contained potentially economic widths and gold grades, and additional stepout and infill drilling will be completed in Q3. At the Kisladag mine, we conducted over 16,300 metres of diamond drilling in Q2, nearly completing our planned 42 drill hole program. The new drilling has further defined the zone of higher grade gold mineralization discovered in 2009 along the south-eastern margin of the deposit, and has identified continuous high-grade zones within intrusion 2a, in areas previous modeled to contain low gold grades and waste sub-zones.
Brazil No exploration activity was completed at Tocantinzinho during Q2. At the Triguiero option property in NE Brazil, we completed a comprehensive stream sediment sampling reconnaissance sampling program.
China At Tanjianshan, we completed 16 infill and step out drillholes on the 323 zone, and have produced a geological model for the zone. In the Jinfeng district, resource drilling was initiated at the mine proper, along with reconnaissance drilling at the nearby Lintan and Bannian prospects. Drilling at these prospects is targeting down-dip projections of high-grade mineralized fault zones exposed in surface trenches and excavations. At the White Mountain mine, drilling recently commenced targeting down-dip and alongstrike extensions to the deposit. The first drill hole intersected alteration and mineralization styles identical to those characterizing the deposit, at a position several hundred metres down dip from previous drilling. Also in the White Mountain district, we completed a three-hole test program at the optioned Caijiagou property. Work at Eastern Dragon focused on completing ground magnetic surveys and prospecting, along with permitting activities.
Corporate Activities
Completion of the Acquisition of Brazauro Resources On July 20, 2010 we completed the acquisition of all the shares of Brazauro Resources Corporation that we did not previously hold. With this acquisition, we have acquired 100% of the Tocantinzinho Gold Project and options agreements to earn 100% of the Aqua Branca and Piranhas properties.
Eldorado is a gold producing, exploration and development company actively growing businesses in Brazil China, Greece, and Turkey and surrounding regions. We are one of the lowest cost pure gold producers. With our international expertise in mining, finance and project development, together with highly skilled and dedicated staff, we believe that Eldorado is well positioned to grow in value as we create and pursue new opportunities.
ON BEHALF OF
ELDORADO GOLD CORPORATION
“Paul N. Wright”
Paul N. Wright President and Chief Executive Officer
Eldorado will host a conference call Thursday, July 29, 2010 to discuss the 2010 Second Quarter Financial Results at 8:30 a.m. EDT (5:30 a.m. PDT). You may participate in the conference call by dialling 416-695-6622 in Toronto or 1-800-355-4959 toll free in North America and asking for the Eldorado Conference Call with Chairperson: Paul Wright, President and 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 August 5, 2010 by dialing 416-695-5800 in Toronto or 1-800-408-3053 toll free in North America and entering the Pass code 4748143.
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 and 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. 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; 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; 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 31, 2010.
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 Corporation common shares on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE:EGO). Eldorado CDI’s trade on the Australian Securities Exchange (ASX:EAU).
Contact:
Nancy Woo, Vice President Investor Relations Eldorado Gold Corporation Phone: 604.601-6650 or 1.888.353.8166 1188, 550 Burrard Street Fax :604.687.4026 Vancouver, BC V6C 2B5 Email: [email protected] Website www .eldoradogold.com Request for information packages:[email protected]
PRODUCTION HIGHLIGHTS
| First Quarter 2010 | Second Quarter 2010 | Second Quarter 2009 | First Six Months 2010 | First Six Months 2009 | |
|---|---|---|---|---|---|
| Gold Production Ounces Sold Ounces Produced Cash Operating Cost ($/oz)1, 3, 4 Total Cash Cost ($/oz)2,3, 4 Realized Price ($/oz - sold) | 163,446 164,928 370 397 1,110 | 172,826 167,940 357 410 1,195 | 86,453 84,572 303 325 927 | 336,272 332,868 364 404 1,154 | 143,912 145,998 297 318 920 |
| Kişladağ Mine, Turkey Ounces Sold Ounces Produced Tonnes to Pad Grade (grams / tonne) Cash Operating Cost ($/oz)3, 4 Total Cash Cost ($/oz)2,3, 4 | 83,974 82,240 2,898,199 1.12 304 307 | 69,197 70,451 2,686,284 1.12 304 345 | 65,484 62,985 2,428,611 1.18 268 270 | 153,171 152,691 5,584,483 1.12 304 324 | 110,696 109,177 4,513,325 1.26 271 273 |
| Tanjianshan Mine, China Ounces Sold Ounces Produced Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz)3, 4 Total Cash Cost ($/oz)2,3, 4 | 18,947 25,423 249,738 4.01 420 517 | 38,261 28,884 271,749 4.38 387 483 | 20,969 21,587 231,874 5.63 412 495 | 57,208 54,307 521,487 4.20 398 494 | 33,216 36,821 459,940 4.81 383 467 |
| Jinfeng Mine, China Ounces Sold Ounces Produced Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz)3, 4 Total Cash Cost ($/oz)2,3, 4 | 49,674 45,615 389,851 4.23 422 462 | 48,623 52,659 392,211 4.51 381 423 | - - - - - - | 98,297 98,274 782,062 4.37 402 443 | - - - - - - |
| White Mountain Mine, China Ounces Sold Ounces Produced Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz)3, 4 Total Cash Cost ($/oz)2,3, 4 | 10,851 11,650 130,643 4.09 550 589 | 16,745 15,946 167,981 3.78 442 474 | - - - - - - | 27,596 27,596 298,624 3.91 484 519 | - - - - - - |
1 Cost figures calculated in accordance with the Gold Institute Standard.
2 Cash Operating Costs, plus royalties and the cost of off-site administration.
3 Cash operating costs and total cash costs are non-GAAP measures. See the section "Non-GAAP Measures" of this Review. Cash operating costs and total cash costs have been recalculated for prior quarters based on ounces sold.
Unaudited Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars)
June 30, December 31, 2010 2009 Assets $ $
Current assets
| Cash and cash equivalents | 306,983 | 265,369 |
| Restricted cash (note 4) | 52,221 | 50,000 |
| Marketable securities | 26,058 | 13,951 |
| Accounts receivable and other | 29,598 | 26,434 |
| Inventories | 122,835 | 129,197 |
| Future income taxes | 1,495 | - |
539,190 484,951
| Inventories | 39,028 | 31,534 |
| Investment in significantly influenced company | 5,375 | - |
| Restricted assets and other | 17,325 | 13,872 |
| Mining interests | 2,606,437 | 2,580,816 |
| Goodwill | 324,935 | 324,935 |
3,532,290 3,436,108
Liabilities
Current liabilities
| Accounts payable and accrued liabilities | 130,476 | 157,250 |
| Debt - current (note 6) | 69,045 | 56,499 |
| Future income taxes | 3,658 | 4,264 |
203,179 218,013
| Debt - long-term (note 6) | 110,556 | 134,533 |
| Asset retirement obligations | 27,682 | 26,566 |
| Future income taxes | 383,546 | 390,242 |
724,963 769,354
Non-controlling interest 31,682 26,144
Shareholders’ equity
| Share capital (note 7(b)) | 2,708,322 | 2,671,634 |
| Contributed surplus | 19,052 | 17,865 |
| Accumulated other comprehensive income (loss) (note 7(c)) | 12,391 | 2,227 |
| Retained earnings (deficit) | 35,880 | (51,116) |
2,775,645 2,640,610 3,532,290 3,436,108
Subsequent events (note 6(d) and note 11)
Approved on behalf of the Board of Directors
(Signed) Robert Gilmore Director (Signed) Paul N. Wright Director See accompanying notes to consolidated financial statements.
Unaudited Consolidated Statements of Operations
(Expressed in thousands of U.S. dollars except per share amounts)
2010 2009 2010 2009 $ $ $ $ Revenue
| Gold sales | 206,443 | 80,147 | 387,922 | 132,353 |
| Interest and other income | 1,338 | 391 | 2,009 | 587 |
| 207,781 | 80,538 | 389,931 | 132,940 |
Expenses
| Operating costs | 72,303 | 28,502 | 139,176 | 46,944 |
| Depletion, depreciation and amortization | 29,504 | 6,538 | 52,746 | 10,998 |
| General and administrative | 13,828 | 7,897 | 29,357 | 16,659 |
| Exploration | 2,950 | 3,374 | 6,552 | 5,436 |
| Mine standby costs | 607 | 936 | 1,313 | 936 |
| Asset retirement obligation costs | 511 | 78 | 1,024 | 131 |
| Foreign exchange (gain) loss | (1,353) | 1,962 | (5,033) | (1,127) |
| 118,350 | 49,287 | 225,135 | 79,977 | |
| Loss (gain) on disposal of assets | 21 | (1,463) | (1,485) | (1,463) |
| Loss (gain) on marketable securities | 254 | (1,083) | (858) | (119) |
| Interest and financing costs | 1,656 | 77 | 4,269 | 158 |
| 120,281 | 46,818 | 227,061 | 78,553 | |
| Income before income taxes and non-controlling interest | 87,500 | 33,720 | 162,870 | 54,387 |
Income tax (expense) recovery
| Current | (26,808) | (7,636) | (47,939) | (13,653) |
| Future | 3,835 | 469 | 5,247 | (758) |
| (22,973) | (7,167) | (42,692) | (14,411) | |
| Non-controlling interest | (4,019) | (653) | (6,825) | (1,015) |
| Net income for the period | 60,508 | 25,900 | 113,353 | 38,961 |
Weighted average number of shares outstanding
Basic 539,398 371,118 538,707 370,494 Diluted 541,193 371,964 540,439 371,868
Earnings per share
Basic income per share - US$ 0.11 0.07 0.21 0.11 Diluted income per share - US$ 0.11 0.07 0.21 0.10
See accompanying notes to the consolidated financial statements.
Unaudited Consolidated Statements of Cash Flows
2010 2009 2010 2009 $ $ $ $ Cash flows generated from (used in):
Operating activities
Net income for the period 60,508 25,900 113,353 38,961 Items not affecting cash
| Asset retirement obligations costs | 511 | 78 | 1,024 | 131 |
| Depletion, depreciation and amortization | 29,504 | 6,538 | 52,746 | 10,998 |
| Unrealized foreign exchange (gain) loss | (2,921) | 2,257 | (5,041) | (426) |
| Future income taxes (recovery) expense | (3,835) | (469) | (5,247) | 758 |
| Loss (gain) on disposal of assets | 21 | (1,463) | (1,485) | (1,463) |
| Loss (gain) on marketable securities | 254 | (1,083) | (858) | (119) |
| Stock-based compensation (note 8(b)) | 3,645 | 2,721 | 10,592 | 5,801 |
| Pension expense (note 5) | 622 | 605 | 1,245 | 803 |
| Non-controlling interest | 4,019 | 653 | 6,825 | 1,015 |
| 92,328 | 35,737 | 173,154 | 56,459 | |
| Bonus cash award units payments (note 8(c)) | - | (484) | - | (2,543) |
| Changes in non-cash working capital (note 9) | (13,881) | 1,448 | (32,267) | 8,658 |
| 78,447 | 36,701 | 140,887 | 62,574 |
Investing activities
Mining interests
| Capital expenditures | (50,332) | (19,823) | (97,632) | (38,852) | |
| Sales and disposals | 18,083 | 35 | 20,348 | 35 | |
| Marketable securities disposals | - | 5,931 | 692 | 36,388 | |
| Investment purchases | (5,375) | - | (5,375) | - | |
| Pension plan contributions | - | (97) | - | (1,856) | |
| Restricted cash | (100) | - | (2,221) | (5,500) | |
| Restricted assets and other | 29 | 2,520 | (2,483) | 2,495 | |
| (37,695) | (11,434) | (86,671) | (7,290) |
Financing activities
Capital stock
| Issuance of common shares for cash (note 7(b)) | 21,689 | 2,493 | 27,283 | 13,603 |
| Dividend paid to non-controlling interest | - | - | (1,286) | - |
| Dividend paid to shareholders | (26,357) | - | (26,357) | - |
Long-term and current debt
| Proceeds | 2,484 | 6 | 2,484 | 4,982 | ||
| Repayments | (14,726) | - | (14,726) | - | ||
| (16,910) | 2,499 | (12,602) | 18,585 | |||
| Net increase in cash and cash equivalents | 23,842 | 27,766 | 41,614 | 73,869 | ||
| Cash and cash equivalents - beginning of period | 283,141 | 107,954 | 265,369 | 61,851 | ||
| Cash and cash equivalents - end of period | 306,983 | 135,720 | 306,983 | 135,720 |
Supplementary cash flow information (note 9)
Unaudited Consolidated Statements of Shareholders’ Equity
Three months ended Six months ended 2010 2009 2010 2009 $ $ $ $
Share capital
Balance beginning of period 2,679,209 947,736 2,671,634 931,933 Shares issued upon exercise of share options,
| for cash | 21,689 | 2,493 | 27,283 | 13,603 |
| Estimated fair value of share options exercised | 7,424 | 1,026 | 9,405 | 5,719 |
| Balance at the end of the period | 2,708,322 | 951,255 | 2,708,322 | 951,255 |
Contributed surplus
| Balance beginning of period | 22,831 | 17,206 | 17,865 | 19,378 |
| Non-cash stock-based compensation | 3,645 | 2,721 | 10,592 | 5,242 |
| Options exercised, credited to share capital | (7,424) | (1,026) | (9,405) | (5,719) |
| Balance at the end of the period | 19,052 | 18,901 | 19,052 | 18,901 |
Retained earnings (deficit)
| Balance beginning of period | 1,729 | (140,459) | (51,116) | (153,520) |
| Dividends paid | (26,357) | - | (26,357) | - |
| Net income for the period | 60,508 | 25,900 | 113,353 | 38,961 |
| Balance at the end of the period | 35,880 | (114,559) | 35,880 | (114,559) |
Accumulated other comprehensive income (loss)
| Balance beginning of period | 3,686 | (3,658) | 2,227 | (5,971) |
| Other comprehensive income (loss) | 8,705 | 4,177 | 10,164 | 6,490 |
| Balance at the end of the period | 12,391 | 519 | 12,391 | 519 |
| Total shareholders' equity | 2,775,645 | 856,116 | 2,775,645 | 856,116 |
Unaudited Consolidated Statements of Comprehensive Income
Three months ended Six months ended
| 2010 | 2009 | 2010 2009 |
| $ | $ | $ $ |
| Net earnings for the period ended June 30, 60,508 | 25,900 113,353 | 38,961 |
Other comprehensive income (loss)
Unrealized gains on available-for-sale investments 10,089 3,246 11,654 5,559 Future income taxes on unrealized gains on
| available-for-sale investments | (1,384) | (269) | (1,490) | (269) |
| Realized losses on available-for-sale investments | - | 1,200 | - | 1,200 |
| Other comprehensive income | 8,705 | 4,177 | 10,164 | 6,490 |
| Comprehensive income for the period ended June 30, | 69,213 | 30,077 | 123,517 | 45,451 |
See accompanying notes to the consolidated financial statements.
1. Nature of operations
Eldorado Gold Corporation (“Eldorado” or the “Company”) is a gold exploration, development, mining and production company. The Company has ongoing exploration and development projects in Turkey, China, Greece and Brazil. The Company acquired control of Sino Gold Mining Ltd. (“Sino Gold”) in December 2009, along with its two producing mines, Jinfeng and White Mountain, as well as the Eastern Dragon exploration project.
These unaudited interim consolidated financial statements were prepared by Eldorado in accordance with Canadian generally accepted accounting principles (“Canadian GAAP”) consistent with those used to prepare Eldorado’s audited consolidated financial statements for the year ended December 31, 2009 except for the longterm investment new policy described in note 2(a). As these unaudited interim consolidated financial statements do not contain all of the disclosures required by Canadian GAAP for annual financial statements, they should be read in conjunction with the notes to the Company’s audited consolidated financial statements for the year ended December 31, 2009.
In the opinion of management, Eldorado has made all adjustments necessary to present fairly the Company’s consolidated financial position as at June 30, 2010 and the consolidated results of operations, comprehensive income and cash flows for the three- and six-month periods ended June 30, 2010 and 2009.
Certain comparative figures have been reclassified to conform to the current period’s presentation.
2. Changes in accounting policies and new accounting developments
(a) Changes in accounting policies
During the three-month period ended June 30, 2010, the Company adopted an accounting policy for long-term investments. Investments in significantly influenced companies are accounted for using the equity method. Under the equity method, the original cost of the shares is adjusted for the Company’s share of post-acquisition earnings or losses less dividends.
(b) New accounting developments
Business Combinations (Section 1582)
In January 2009, the CICA issued Section 1582, Business Combinations, which requires that all assets and liabilities of an acquired business be recorded at fair value at acquisition. Obligations for contingent considerations and contingencies will also be recorded at fair value at the acquisition date. The standard also states that acquisition-related costs will be expensed as incurred and that restructuring charges will be expensed in the periods after the acquisition date. The Section applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period on or after January 1, 2011. Earlier application is permitted. If an entity applies this Section before January 1, 2011, it shall also adopt CICA Sections 1601 and 1602. The Company has not yet adopted this standard.
2. Changes in accounting policies and new accounting developments (continued)
Consolidations (Section 1601) and Non-Controlling Interest (Section 1602)
In January 2009, the CICA issued Section 1601, Consolidations, and Section 1602, Non-Controlling Interests. Section 1601 establishes standards for preparing consolidated financial statements and Section 1602 establishes standards for accounting for a non-controlling interest in a subsidiary in consolidated financial statements subsequent to a business combination. These standards apply to interim and annual consolidated financial statements relating to fiscal years beginning on or after January 1, 2011. Earlier adoption is permitted as of the beginning of a fiscal year. An entity adopting these sections for a fiscal year beginning before January 1, 2011 also must adopt CICA Section 1582. The Company has not yet adopted these standards.
International Financial Reporting Standards
Canadian public companies will be required to prepare their financial statements in accordance with IFRS, as issued by the International Accounting Standards Board, for financial years beginning on or after January 1, 2011. Effective January 1, 2011, the Company will adopt IFRS as the basis for preparing its consolidated financial statements. The Company will issue its financial results for the quarter ended March 31, 2011 prepared on an IFRS basis and provide comparative data on an IFRS basis as required.
3. Business acquisition
On December 15, 2009, Eldorado acquired all of the outstanding Sino Gold Securities not previously held by the Company. A preliminary allocation of the purchase price was disclosed in our December 31, 2009 Consolidated Financial Statements.
As of June 30, 2010 there have been no changes to the preliminary allocation.
4. Restricted cash
Restricted cash represents short-term interest-bearing money market securities and funds held on deposit as collateral. The Company had the following restricted cash:
June 30, December 31, 2010 2009 $ $
Collateral account against Eastern Dragon CMB Standby letter
| of credit loan | 52,221 | - |
| Collateral account against Eastern Dragon CCB loan | - | 50,000 |
| Total | 52,221 | 50,000 |