Q4, 2010 Financial and Operating Results Earnings increased 31%; Cash flow increased 40% (all figures in United States dollars, unless otherwise noted)
NEWS RELEASE ELD No. 11-03 TSX: ELD NYSE: EGO ASX: EAU February 18, 2011
Q4, 2010 Financial and Operating Results Earnings increased 31%; Cash flow increased 40%
(all figures in United States dollars, unless otherwise noted)
VANCOUVER, BC – Paul N. Wright, President and Chief Executive Officer of Eldorado Gold Corporation, (“Eldorado” the “Company” or “we”) is pleased to report on the Company's financial and operational results for the fourth quarter ended December 31, 2010. The Company reported net income of $43.6 million, or $0.08 per share, and cash flow from operations of $83.0 million or $0.15 per share for the fourth quarter ended December 31, 2010.
“We have operated to plan and are extremely pleased with our strong performance. Our earnings increased 31% and our cash flow increased 40% compared to Q4, 2009 ” stated Paul N. Wright, President and Chief Executive Officer of Eldorado. “Construction at both Efemçukuru and Eastern Dragon are progressing and we look forward to production from both mines during 2011”.
Q4 2010 Highlights
- Produced 148,374 ounces of gold, an increase of 15% over Q4, 2009 at an average cash operating cost of $418 per ounce (Total cash cost $460 per ounce)
- Sold 149,022 ounces of gold at an average realized price of $1,373 per ounce; which generated revenue 42% higher than Q4, 2009
- Reported earnings of $43.6 million ($0.08 per share) an increase of 31% over Q4, 2009
- Generated $83.0 million of cash ($0.15 per share) from operating activities before changes in non-cash working capital an increase of 40% over Q4, 2009
- Trial mining operations at Vila Nova continued with two shipments of iron ore completed in the quarter
- Underground pre-production development at Efemçukuru reached the Middle Ore Shoot ore zone with production anticipated to begin in Q2, 2011
- Construction activities at Eastern Dragon resumed during the quarter
Financial Results
Eldorado’s consolidated net income for the fourth quarter of 2010 was $43.6 million or $0.08 per share compared to $33.3 million or $0.08 in the fourth quarter of 2009. Net income for the twelve month period ended December 31, 2010 was $205.7 million or $0.38 per share, compared to $102.4 million or $0.26 per share in the comparable period from 2009.
During the fourth quarter, we sold 149,022 ounces of gold at an average price of $1,373 per ounce compared to 131,068 ounces of gold at an average price of $1,103 per ounce in the fourth quarter of 2009.
Operating Performance
Kisladag During the quarter we produced 59,815 ounces of gold at a cash operating cost of $382 per ounce. We placed 2,021,057 tonnes of ore on the leach pad at an average grade of 1.00 gram per tonne of gold. We sold 59,741 ounces of gold.
We continued our work on expansion of the circuit this quarter and began the installation of two tertiary crushers. The new circuit will be tied into the existing process in late February.
Jinfeng During the quarter we produced 37,560 ounces of gold at cash operating cost of $486 per ounce and we milled 387,710 tonnes of ore at a grade of 3.81 grams per tonne. Ore mined from the open pit was 387,701 tonnes and ore from the underground totalled 110,818 tonnes. We sold 38,282 ounces of gold.
We mined from the bottom of the open pit this quarter, which reduced waste removal and increased production. We have now completed the current phase of open pit mining, and will begin waste stripping in 2011.
Tanjianshan At Tanjianshan we produced 30,710 ounces of gold at cash operating cost of $349 per ounce. We milled a total of 244,867 tonnes of ore at an average grade of 4.59 grams per tonnes. We sold 30,710 ounces of gold.
White Mountain During the quarter we produced 20,289 ounces of gold at a cash operating cost of $498 per ounce and we processed 169,669 tonnes of ore at a grade of 4.06 grams per tonnes. We sold 20,289 ounces of gold
Vila Nova Iron Ore During the quarter as part of trial mining Vila Nova mined 163,920 tonnes of ore. One shipment of lump ore totalling 45,442 wet metric tonnes and the other shipment of sinter fines totalling 47,702 wet metric tonnes were sold into the Chinese spot market for an average of $93.0 per tonne.
Development
Efemçukuru Construction of the tailings filtration and backfill plants continue on schedule during the quarter. We are continuing with dry commissioning in the main concentrator building and expect it to be complete in early 2011. We will start wet commissioning when construction is complete and the power line is energized (scheduled for early April). We finished the structures for the administration building, the mine dry, the warehouse/maintenance shop and mine canteen.
Preproduction development moved ahead on all three declines. The contractor’s advance rates have continued to improve as we gain experience with the operation and ground conditions. The conveyor decline has now reached the level of the crushing chamber and lateral development has begun. We have gained access to the Middle Ore Shoot from the north ramp which allows us to evaluate the ground conditions in the ore zone.
Eastern Dragon We have made excellent progress at Eastern Dragon this quarter as part of the winter work program. Despite severe weather civil foundation and structural steel work continued on schedule.
Tocantinzinho We will complete the prefeasibility study for Tocantinzinho in the first quarter of 2011. We are evaluating capital and operating costs to further identify opportunities to optimize the project. A significant portion of the investment capital is for infrastructure, particularly for road access and to install a dedicated power line. We have substantially increased the level of detail for both engineering and estimating in these areas.
Perama Hill
There was no significant change in the status of the pre-environmental assessment report which is currently being reviewed by the Ministry of Environment. We continue to work with all levels of government to advance the understanding of the project and its importance to the regional economy.
Exploration
Turkey At Kisladag, 17 diamond drill holes were completed during the quarter, focused on the western and southwestern margin of the deposit. Significant gold values were intersected adjacent to a late-mineral intrusion extending westward from the core of the deposit. The discovery of ore-grade gold values in the basement schist here highlights the prospectively of the relatively unexplored area west of the deposit. Adjacent to Kisladag at the Sayaçik prospect, we completed five reverse circulation drill holes and two diamond drill holes, targeting geophysical and geochemical anomalies.
Drilling programs were completed during the quarter at the Malatya-Hasancelebi (MH), Sizma, and AS exploration projects. At the MH iron oxide copper gold prospect, six diamond drill holes tested targets defined by soil and rock chip geochemistry, alteration mapping, and geophysical survey data. At the Sizma project (phyllitehosted gold) we completed the 22 drillhole phase 1 exploration program this quarter. Several drill holes intersected significant Au values over several tens of metres at shallow depths, which will be targeted at deeper levels in 2011. At the AS porphyry prospect, we completed six drill holes on new target areas defined by mapping, geochemical sampling and magnetic survey programs. All intersected variable altered and mineralized rocks, including zones of porphyry-style Cu, Mo, Au mineralization.
China At Tanjianshan, we completed the final two drillholes of the 2010 resource drilling program on the 323 zone during the quarter. Geological modeling of the mineralized zones has formed the basis for a preliminary resource estimate of approximately 160,000 ounces of inferred gold at an average grade of 2.75 g/t. The mineralized zone remains open to the south, where one of the final drill holes of the season intersected 11.6 g/t Au over 5.5 meters.
At Jinfeng, we continued our drilling programs at the mine proper this quarter, at the Bannian prospect located approximately 20 km southwest of the Jinfeng mine, and at the Lintan prospect located immediately north of the mine. Drilling programs at Bannian and Lintan targeted mineralized fault zones where previous surface work identified structurally-controlled zones of high-grade gold. At the Jinfeng mine, drilling focused on upgrading zones of inferred resources.
Drilling this quarter at White Mountain we focused on the open down-dip and along-strike extensions of the deposit, as well as early-stage targets at the newly acquired Xiashiren Central exploration license located 20km to the southeast. At White Mountain, high-grade mineralization was intersected approximately 200 meters down-dip of the known deposit (24.7 meters @ 8.7 g/t Au) possibly representing a second mineralized zone that is open along strike and down dip. Seven diamond drill holes were completed at the Xiaoshiren prospect, testing for the source of the abundant boulders of high-grade silicified breccia at the prospect. Several drill holes intersected mineralized breccias zones, with the most significant interval grading 7.8 g/t Au over 6.5 metres.
Brazil At Tocantinzinho, drilling during the quarter was divided between infill resource holes and condemnation holes. None of the condemnation drill holes intersected significant mineralization. The infill drilling constrained positions of lithologic and mineralization boundaries in areas with low drillhole density, and will allow us to convert inferred resources to indicated resources. At the nearby Aqua Branca and Piranhas projects, both held under option, fieldwork this quarter focused on geochemical sampling programs aimed at defining auger and diamond drilling targets for 2011.
Eldorado is a gold producing, exploration and development company actively growing businesses in Turkey, China, Brazil and Greece. 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 Friday, February 18, 2011 to discuss the 2010 Fourth Quarter Financial and Operating Results at 11:30 a.m. ET (8:30 a.m. PT). You may participate in the conference call by dialling 416-340-2216 in Toronto or 1-866-226-1792 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 February 25, 2011 by dialling 416-695-5800 in Toronto or 1-800-408-3053 toll free in North America and entering the Pass code 2583817.
Cautionary Note Concerning Forward-Looking Statements
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 with respect to the Company’s Fourth Quarter Financial and Operating results and its development and exploration projects.
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’s common shares trade on the Toronto Stock Exchange (TSX: ELD) and the NYSE (NYSE: EGO). Eldorado’s CDI 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 | Third Quarter 2010 | Fourth Quarter 2010 | Fourth Quarter 2009 | 2010 | 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 | 154,655 151,297 386 431 1,231 | 149,022 148,374 418 460 1,373 | 131,068 128,593 330 365 1,103 | 639,949 632,539 382 423 1,223 | 360,226 363,509 309 337 995 |
| 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 | 66,113 62,086 2,767,179 0.98 337 359 | 59,741 59,815 2,021,057 1.00 382 354 | 70,765 70,131 3,679,685 0.86 294 296 | 279,025 274,592 10,372,719 1.06 329 339 | 237,363 237,210 10,716,556 1.11 279 281 |
| 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 | 28,847 28,847 283,598 3.84 391 493 | 30,710 30,710 244,867 4.59 349 459 | 40,150 37,773 256,828 5.81 332 421 | 116,765 113,864 1,049,952 4.19 383 485 | 102,710 105,610 974,498 5.31 350 435 |
| 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 | 45,447 46,116 387,427 4.42 425 473 | 38,282 37,560 387,710 3.81 486 585 | 14,554 14,541 136,054 3.97 471 515 | 182,026 181,950 1,557,199 4.24 425 480 | 14,554 14,541 136,054 3.97 471 515 |
| 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 | 14,248 14,248 154,125 4.01 477 507 | 20,289 20,289 169,669 4.06 498 536 | 5,599 6,148 58,074 4.26 400 439 | 62,133 62,133 622,418 3.98 487 522 | 5,599 6,148 58,074 4.26 400 439 |
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.
Eldorado Gold Corporation
Unaudited Consolidated Balance Sheets
(Expressed in thousands of US dollars)
December 31, December 31, 2010 2009 $ $ Assets
Current assets
| Cash and cash equivalents | 314,344 | 265,369 |
| Restricted cash | 52,425 | 50,000 |
| Marketable securities | 8,027 | 13,951 |
| Accounts receivable and other | 40,534 | 26,434 |
| Inventories | 147,263 | 129,197 |
| Future income taxes | 606 | - |
563,199 484,951
| Inventories | 29,627 | 31,534 |
| Investment in significantly influenced company | 6,202 | - |
| Restricted assets and other | 19,328 | 13,872 |
| Mining interests | 2,793,722 | 2,580,816 |
| Goodwill | 364,093 | 324,935 |
3,776,171 3,436,108
Liabilities
Current liabilities
| Accounts payable and accrued liabilities | 146,487 | 157,250 |
| Debt - current | 98,523 | 56,499 |
| Future income taxes | 2,915 | 4,264 |
247,925 218,013
| Debt - long-term | 68,140 | 134,533 |
| Asset retirement obligations | 24,275 | 26,566 |
| Future income taxes | 430,020 | 390,242 |
770,360 769,354
Non-controlling interests 38,940 26,144
Shareholders’ Equity
| Share capital | 2,814,679 | 2,671,634 |
| Contributed surplus | 22,967 | 17,865 |
| Accumulated other comprehensive income | 998 | 2,227 |
| Retained earnings (deficit) | 128,227 | (51,116) |
2,966,871 2,640,610 3,776,171 3,436,108
Unaudited Consolidated Statements of Operations
(Expressed in thousands of U.S. dollars)
Three months ended Twelve months ended 2010 2009 2010 2009 $ $ $ $ Revenue
| Gold sales | 204,623 | 144,506 | 782,850 | 358,467 |
| Iron ore sales | 8,325 | - | 8,325 | - |
| 212,948 | 144,506 | 791,175 | 358,467 |
Expenses
| Operating costs | 74,194 | 57,411 | 282,465 | 132,464 |
| Depletion, depreciation and amortization | 26,813 | 18,643 | 106,791 | 38,658 |
| General and administrative | 22,414 | 8,429 | 62,217 | 32,530 |
| Exploration | 11,608 | 3,352 | 23,181 | 11,970 |
| Mine standby costs | - | 763 | 1,335 | 2,580 |
| Accretion of asset retirement obligations | 29 | 95 | 1,564 | 291 |
| Foreign exchange loss (gain) | 6,465 | (1,397) | 14,792 | (2,966) |
| 141,523 | 87,296 | 492,345 | 215,527 | |
| (Gain) loss on disposal of assets | 1,143 | 490 | (592) | (854) |
| Gain on marketable securities | (1,225) | (402) | (6,572) | (1,689) |
| Interest expense and financing costs | 1,828 | 589 | 8,089 | 824 |
| Interest and other income | (382) | (679) | (11,036) | (2,262) |
| 142,887 | 87,294 | 482,234 | 211,546 | |
| Income before income taxes and non-controlling interest | 70,061 | 57,212 | 308,941 | 146,921 |
Income tax (expense) recovery
| Current | (25,431) | (17,397) | (95,022) | (44,862) |
| Future | 1,076 | (5,143) | 5,864 | 2,972 |
| (24,355) | (22,540) | (89,158) | (41,890) | |
| Non-controlling interest in income | (2,132) | (1,383) | (14,083) | (2,627) |
| Net income for the period | 43,574 | 33,289 | 205,700 | 102,404 |
Weighted average number of shares outstanding
Basic 547,896 424,348 542,861 389,384 Diluted 550,547 427,356 545,850 391,707
Earnings per share
Basic income per share 0.08 0.08 0.38 0.26 Diluted income per share 0.08 0.08 0.38 0.26 Unaudited Consolidated Statements of Cash Flows
(Expressed in thousands of US dollars)
Three months ended Twelve months ended 2010 2009 2010 2009 $ $ $ $ Cash flows generated from (used in):
Operating activities
Net income for the period 43,574 33,289 205,700 102,404 Items not affecting cash
| Accreation on asset retirement obligations | 29 | 95 | 1,564 | 291 |
| Depletion, depreciation and amortization | 26,813 | 18,643 | 106,791 | 38,658 |
| Unrealized foreign exchange loss | 8,312 | (1,343) | 17,973 | 281 |
| Future income taxes (recovery) expense | (1,076) | 5,143 | (5,864) | (2,972) |
| (Gain) loss on disposal of assets | 1,143 | 490 | (592) | (854) |
| Gain on marketable securities | (1,225) | (402) | (6,572) | (1,689) |
| Stock-based compensation | 2,683 | 1,423 | 16,557 | 9,091 |
| Fair value of bonus cash award units | - | - | - | (2,543) |
| Pension expense | 650 | 444 | 2,517 | 1,689 |
| Non-controlling interest | 2,132 | 1,383 | 14,083 | 2,627 |
| 83,035 | 59,165 | 352,157 | 146,983 | |
| Changes in non-cash working capital | (13,383) | 42,718 | (60,082) | 45,059 |
| 69,652 | 101,883 | 292,075 | 192,042 |
Investing activities
Acquisition of subsidiaries, net of cash received (518) 54,179 (6,083) 54,179 Mining interests Capital expenditures (73,820) (43,611) (226,296) (106,614) Proceeds on sales and disposals 565 - 23,756 35 Marketable securities disposals
| Purchases | (6,285) | (3,321) | (11,983) | (3,967) | |
| Proceeds on sales and disposals | 1,775 | 616 | 15,611 | 42,770 | |
| Equity investment purchase | (1,352) | - | (6,727) | - | |
| Pension plan contributions | - | - | - | (1,856) | |
| Restricted cash | (242) | - | (2,463) | - | |
| Restricted assets and other | 5,356 | (11) | (7,007) | 1,877 | |
| (74,521) | 7,852 | (221,192) | (13,576) |
Financing activities
Capital stock
| Issuance of common shares for cash | 3,537 | 6,232 | 35,907 | 25,201 |
| Dividend paid to non-controlling interest | - | (149) | (1,287) | (149) |
| Dividend paid to shareholders | - | - | (26,357) | - |
Long-term and current debt
| Proceeds | 795 | - | 59,839 | 4,983 |
| Repayments | (24,522) | - | (90,010) | (4,983) |
| (20,190) | 6,083 | (21,908) | 25,052 |
Net increase (decrease) in cash and cash
| equivalents | (25,059) | 115,818 | 48,975 | 203,518 |
| Cash and cash equivalents - beginning of period | 339,403 | 149,551 | 265,369 | 61,851 |
| Cash and cash equivalents - end of period | 314,344 | 265,369 | 314,344 | 265,369 |
FINANCIAL AND OPERATIONAL REVIEW for the quarter ended December 31, 2010
Throughout this document, Eldorado, we, us, our and the company mean Eldorado Gold Corporation. This year means 2010. All dollar amounts are in United States dollars unless stated otherwise.
What’s inside
About Eldorado 1
Fourth quarter highlights 2
Updates
Operations 4 Development projects 6 Exploration 7
Results
Financial results 10 Earnings from gold mining operations 11 Expenses 12
Forward-looking information and risks 13
About Eldorado
Based in Vancouver, Canada, Eldorado owns and operates gold mines participating in every step of the process, from exploration and development, to extraction, processing and reclamation.
We own and operate four gold mines:
- Kişladağ, in Turkey (100%)
- Tanjianshan, in China (90%)
- Jinfeng, in China (82%)
- White Mountain, in China (95%)
We have four development projects:
- Eastern Dragon, in China (95%)
- Efemçukuru, in Turkey (100%)
- Tocantinzinho, in Brazil (100%)
• Perama Hill, in Greece (100%)
We also own and operate one iron ore mine:
- Vila Nova, in Brazil (100%)
We acquired Jinfeng, White Mountain and Eastern Dragon when we acquired Sino Gold Mining Ltd. (Sino Gold) in December 2009. We acquired Tocantinzinho when we acquired Brazauro Resources Corporation in July 2010.
Eldorado is listed on the following exchanges:
- Toronto Stock Exchange (TSX) under the symbol ELD
- New York Stock Exchange (NYSE) under the symbol EGO
- Australian Securities Exchange (ASX) under the symbol EAU
ELD is part of the S&P/TSX Global Gold Index. EGO is part of the AMEX Gold BUGS Index.
Eldorado Chess Depositary Interests (CDIs) trade on the Australian Securities Exchange (ASX) under the symbol EAU.
Fourth quarter highlights
- Revenues were up 47% over the same quarter in 2009 reflecting higher gold sales volumes and prices as well as $8.3 million in revenues from iron ore sales.
- Net income increased 31% over the same quarter in 2009.
- Earnings from gold mining operations before taxes increased 59% over the same quarter in 2009.
- Production this quarter was 15% higher than the same quarter of 2009 reflecting a full quarter of production from Jinfeng and White Mountain as compared to only one month in 2009.
• We generated $83.0 million in cash from operating activities before changes in non-cash working capital – an increase of 40% over the same quarter in 2009.
- Trial mining operations at Vila Nova continued with the first two shipments of iron ore to market completed prior to year end.
- Underground pre-production development at Efemçukuru reached the Middle Ore Shoot of the ore zone, and construction of above ground facilities continued on schedule with production anticipated to begin in Q2 2011.
- Construction activities at Eastern Dragon recommenced during the quarter following a successful year in advancing permitting activities and positive engagement with our joint venture partner, local communities and government authorities.
Financial highlights
| ($000) | Fourth quarter | Year Ended | ||||||
| 2010 | 2009 | change | 2010 | 2009 | change | |||
| Total revenue | 212,948 | 144,506 | 47% | 791,175 | 358,467 | 121% | ||
| Net income | 43,574 | 33,289 | 31% | 205,700 | 102,404 | 101% | ||
| Earnings per share - basic - diluted | 0.08 0.08 | |||||||
| 0.08 | 0% | 0.38 | 0.26 | 46% | ||||
| 0.08 | 0% | 0.38 | 0.26 | 46% |
Operating highlights1,4
| ($000) | 2010 | 2009 | |||||
| First | Second | Third | Fourth | Fourth | |||
| quarter | quarter | quarter | quarter | quarter | |||
| Total | |||||||
| Gold ounces produced 164,928 167,940 151,297 | 148,374 | 128,593 | |||||
| Ounces sold 163,446 172,826 154,655 | 149,022 | 131,068 | |||||
| Cash operating costs ($ per ounce) $370 $357 $386 | $418 | $330 | |||||
| Total cash cost ($ per ounce) 2 $397 $410 $431 | $460 | $365 | |||||
| Kışladağ | |||||||
| Gold ounces produced 82,240 70,451 62,086 | 59,815 | 70,131 | |||||
| Ounces sold 83,974 69,197 66,113 | 59,741 | 70,765 | |||||
| Cash operating costs ($ per ounce) $304 $304 $337 | $382 | $294 | |||||
| Total cash cost ($ per ounce) 2 $307 $345 $359 | $354 | $298 | |||||
| Tanjianshan | |||||||
| Gold ounces produced 25,423 28,884 28,847 | 30,710 | 37,773 | |||||
| Ounces sold 18,947 38,261 28,847 | 30,710 | 40,150 | |||||
| Cash operating costs ($ per ounce) $420 $387 $391 | $349 | $332 | |||||
| Total cash cost ($ per ounce) 2 $517 $483 $493 | $459 | $421 | |||||
| Jinfeng 3 | |||||||
| Gold ounces produced 45,615 52,659 46,116 | 37,560 | 14,541 | |||||
| Ounces sold 49,674 48,623 45,447 | 38,282 | 14,554 | |||||
| Cash operating costs ($ per ounce) $422 $381 $425 | $486 | $471 | |||||
| Total cash cost ($ per ounce) 2 $462 $423 $473 | $585 | $515 | |||||
| White Mountain 3 | |||||||
| Gold ounces produced 11,650 15,946 14,248 | 20,289 | 6,148 | |||||
| Ounces sold 10,851 16,745 14,248 | 20,289 | 5,599 | |||||
| Cash operating costs ($ per ounce) $550 $442 $477 | $498 | $400 | |||||
| Total cash cost ($ per ounce) 2 $589 $474 $507 | $536 | $439 |
1 We calculate costs according to the Gold Institute Standard.
2 Total cash cost is cash operating costs plus royalties and off-site administration costs.
3 We acquired Jinfeng and White Mountain in December 2009.
4 We recalculated cash operating costs and total cash costs for previous quarters based on ounces sold.