2012 Third Quarter Financial and Operating Results
NEWS RELEASE ELD No. 12-26 TSX: ELD NYSE: EGO October 26, 2012
2012 Third Quarter Financial and Operating Results
Earnings per share $0.11; Cash Flow per share $0.16 (all figures in United States dollars unless otherwise noted)
VANCOUVER, BC – Eldorado Gold Corporation (“Eldorado”, the “Company” or “We”), reported profit attributable to shareholders of the Company of $75.8 million for the period, and generated $110.8 million in cash from operating activities before changes in non-cash working capital.
Q3 2012 Summary Results
- Gold production of 169,565 ounces at an average cash operating cost of $493 per ounce, including 14,442 ounces of Efemcukuru pre-commercial production (Q3 2011 gold production – 179,195 ounces at $397 per ounce).
- Gold sales of 165,365 ounces at $1,670 per ounce, including 10,524 ounces of Efemcukuru sales related to pre-commercial production (Q3 2011 gold sales – 179,513 ounces at $1,700 per ounce).
- Profit attributable to shareholders of the Company of $75.8 million or $0.11 per share (Q3 2011 - $102.5 million or $0.19 per share).
- $110.8 million generated in cash from operating activities before changes in non-cash working capital (Q3 2011 - $159.7 million).
- Company production guidance for 2012 maintained at 660,000 ounces of gold at cash operating costs of approximately $465 per ounce.
Financial Results
Net income for the quarter was $75.8 million (or $0.11 per share), compared with $102.5 million (or $0.19 per share) in the third quarter of 2011. The decrease in net income year over year was mainly due to lower gold sales volumes and prices. The Company sold 154,841 ounces in the third quarter of 2012 (not including 10,524 ounces of precommercial sales from Efemcukuru) as compared with 179,513 ounces in the third quarter of 2011.
| Commercial sales volumes by | 3 months ended September 30 | 9 months ended September 30, | |||
|---|---|---|---|---|---|
| mine | |||||
| 2012 | 2011 | 2012 | 2011 | ||
| Gold ounces sold | 154,841 | 179,513 | 438,421 | 490,207 | |
| - Kisladag | 83,750 | 87,121 | 210,905 | 204,345 | |
| - Tanjianshan | 28,944 | 26,935 | 84,932 | 87,405 | |
| - Jinfeng | 25,805 | 44,187 | 86,663 | 139,086 | |
| - White Mountain | 16,342 | 21,270 | 55,921 | 59,371 | |
| Average price per oz. | $1,670 | $1,700 | $1,665 | $1,546 | |
| Gold revenue (millions) | $258.5 | $305.2 | $729.9 | $757.6 |
Operating Performance
Kisladag Kisladag placed 3.2 million tonnes of ore on the leach pad during the quarter at a grade of 1.05 grams per tonne (Q3 2011 – 3.5 million tonnes of ore at 0.90 grams per tonne). Kisladag produced 84,016 ounces of gold at a cash operating cost of $334 per ounce in the quarter as compared to 86,788 ounces at a cash operating cost of $377 per ounce during Q3 2011. Gold production at Kisladag for the quarter was slightly lower year over year mainly due to the stacking and leaching schedule. Daily production rates increased during the quarter and we expect to see an increase in production during the fourth quarter. Lower cash costs during the quarter were largely a result of higher grade material being placed on the leach pad during the year.
Tanjianshan(“TJS”)
TJS processed 283,654 tonnes of ore at a grade of 3.55 grams per tonne in the quarter compared to 218,330 tonnes at a grade of 4.25 during Q3 2011. The mine produced 28,944 ounces of gold at a cash operating cost of $396 per ounce in the quarter as compared to 26,935 ounces at a cash operating cost of $353 per ounce in Q3 2011. Gold production at TJS during the third quarter of 2012 was higher than the same quarter of 2011 as a result of increased mill throughput and slightly higher recovery rates, which offset the lower mill head grades. The increase in cash costs during the quarter was mainly due to the lower head grade.
Jinfeng Jinfeng processed 356,575 tonnes of ore at a grade of 2.43 grams per tonne during the quarter compared to 379,352 tonnes at a grade of 4.26 grams per tonne during Q3 2011. The mine produced 25,821 ounces of gold at a cash operating cost of $946 per ounce during the quarter compared to 44,202 ounces at a cash operating cost of $424 during Q3 2011. Gold production at Jinfeng in Q3 2012 was lower than the same quarter of 2011 due to lower head grades and mill throughput. The open pit is currently in a waste stripping phase and lower grade stockpile material is being treated to make up for the lack of open pit ore. Cash costs were considerably higher due to the lower grade and mill throughput.
White Mountain White Mountain processed 210,114 tonnes of ore at a grade of 3.14 grams of gold per tonne in the quarter compared to 191,157 tonnes at a grade of 4.15 grams per tonne during Q3 2011. The mine produced 16,342 ounces of gold at a cash operating cost of $766 per ounce during the quarter compared to 21,270 ounces at $475 per ounce during Q3 2011. Gold production at White Mountain in the third quarter of 2012 was lower than in the same period of 2011. This decrease was largely due to lower grades being mined and processed during the quarter, which also negatively affected the cash costs.
Efemcukuru The Efemcukuru mine and mill operated at expected levels with 93,779 tonnes of ore processed at a grade of 9.31 grams of gold per tonnes in the quarter and approximately 27,005 ounces of gold recovered in concentrate. The paste fill system was commissioned during the quarter and the underground crushing system was completed and is now operational.
During the quarter 14,442 ounces were poured as pre-commercial production during the commissioning and testing of the Kisladag concentrate treatment plant. In September, the concentrate treatment plant was not being operated pending modifications to the circuit. We plan to sell the existing concentrate and future concentrate production to a third party until the modifications are completed. At the end of the quarter there were approximately 51,000 ounces of gold contained in concentrate.
Vila Nova During the quarter Vila Nova processed 161,859 wet metric tonnes and sold 123,180 dry metric tonnes of iron ore compared to 148,220 wet metric tonnes produced and 170,781 dry metric tonnes sold in Q3 2011. Iron ore production in Q3 2012 increased at Vila Nova compared to the same quarter of 2011, mainly as a result of improved efficiencies in both the mine and treatment plant. Three shipments were completed in the quarter. These were 2 lump shipments and one sinter shipment. Operating costs averaged $56 per dry metric tonne (Q3 2011 - $64 per dry metric tonne).
Stratoni During the third quarter, Stratoni mined 58,591 tonnes of run-of-mine ore and produced 14,084 tonnes of lead and zinc concentrate at an average cash cost of $717 per tonne of concentrate produced. During the same period, Stratoni sold 15,891 tonnes of concentrate at an average price of $913 per tonne.
Development
Eastern Dragon At Eastern Dragon work continued during the quarter on the preparation of the Project Permit Approval (PPA) to be submitted to the National Development and Reform Commission (NDRC). We anticipate that the application will be submitted by the end of 2012. Construction activities have been suspended until the PPA is approved.
Tocantinzinho The Tocantinzinho project was granted the Preliminary Environmental License (PEL) in September, an important milestone in the permitting phase. The PEL confirms the environmental feasibility of the project and allows the Company to apply for the Construction License, the final permit needed for construction to commence. Work on site was limited to environmental and hydrology field work in the immediate area, along with geotechnical drilling of the proposed road corridor. The feasibility study is well advanced and will be completed in the fourth quarter 2012.
Perama Hill Drilling activity at the Perama site continued throughout the quarter. Geotechnical drill holes have been drilled in the plant site to support geotechnical design analysis for civil structures and foundations. In addition drilling in the open pit area has been carried out to obtain drill core for geotechnical analysis for pit slope stability design. Processing of the Perama Environmental Impact Assessment (EIA) application through the Ministry of Environment (MOE) continues, with a decision expected before the end of the year. Public meetings have been held in the district as prescribed by the MOE. All indications from the government agencies remain positive towards the project.
Olympias Rehabilitation of the Olympias underground mine and processing plant continued during the quarter. In the mine, 406 meters of underground access was rehabilitated or developed. Development of the tunnel linking Stratoni and Olympias progressed well during the quarter, with 108 meters of advance. Metallurgical testwork to evaluate the proposed new processing facility at Stratoni continued during the third quarter. Commissioning of the Olympias processing plant was on-going during the quarter.
Skouries Site work at Skouries during the quarter consisted mainly of tree cutting at the plant site, construction of access roads, and earthworks for various site infrastructures.
Certej The Environmental Permit for Certej was approved by the Timisoara Regional Department of Environment during the quarter. Construction work advanced during the quarter on the temporary power line to site and the water pumping station on the Mures River.
Exploration Update
A total of 54,300 metres of exploration drilling were completed during the quarter at our exploration projects and mine operations in Greece, Romania, Turkey, Brazil, and China. With 132,800 meters of drilling completed year-to-date, we are on track to complete our 2012 exploration programs according to plan.
Turkey In Turkey, drilling during the quarter continued at the Efemçukuru minesite, and commenced at Kisladag and at three reconnaissance projects (Sebin, Dolek, and Gaybular).
Exploration drilling resumed at the Kisladag minesite late in the quarter, testing conceptual targets defined by a combination of three-dimensional induced polarization/resistivity surveys, detailed ground magnetics, and soil geochemistry anomalies. This program is directed towards identifying possible mineralized satellite intrusions to the main porphyry system.
Six drillholes were completed at the Sebin porphyry/epithermal prospect in the Pontide Belt. The project area covers a large surface alteration zone with locally anomalous copper, molybdenum and gold values, but no significant mineralization has been intersected to date in drillholes. Drilling also began at the Dolek prospect in the Pontide Belt, and at the Gaybular project in Western Turkey.
At Efemcukuru 32 drillholes (8,440 metres) were completed on the Kestane Beleni northwest extension (KBNW), South Ore Shoot (SOS), and Kokarpinar vein targets. At KBNW, drilling defined a new shallowly northwest-plunging lower zone of mineralization which has been traced for nearly 400 metres along strike and remains open to the northwest. At the SOS, drilling identified high gold grades at 50 to 75 metre stepouts from previous mineralized holes. At Kokarpinar, limited drillsite availability meant that drilling was focused on shallow targets on the central and southern part of the vein. Selected drilling results are summarized in the table below:
Selected Q3 drilling results, Efemcukuru:
| Hole ID | From(m) | To (m) | Interval(m) | Au (g/t) | Ag (g/t) | Pb (%) | Zn (%) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Kestane Beleni Northwest Extension (lower zone) | ||||||||||||||
| KV-433 | 215.15 | 216.50 | 1.35 | 29.70 | 24.10 | 0.88 | 2.02 | |||||||
| KV-444 | 170.86 | 172.58 | 1.72 | 27.46 | 19.61 | 1.61 | 2.23 | |||||||
| KV-447 | 240.27 | 241.48 | 1.21 | 65.59 | 63.40 | 2.26 | 4.56 | |||||||
| KV-448 | 183.83 | 186.20 | 2.37 | 7.39 | 37.90 | 2.88 | 1.20 | |||||||
| South Ore Shoot (deep step-out drilling) | ||||||||||||||
| KV-496 | 223.00 | 224.50 | 1.50 | 4.95 | 3.70 | 0.01 | 0.03 | |||||||
| KV-497 | 297.60 | 300.91 | 3.31 | 15.67 | 19.78 | 1.00 | 1.73 | |||||||
| KV-501 including | 282.50 | 287.20 | 4.70 | 11.80 | 8.00 | 0.02 | 0.03 | |||||||
| 286.10 | 287.20 | 1.10 | 44.80 | 26.70 | 0.01 | 0.02 | ||||||||
| Kokarpinar Vein | ||||||||||||||
| KV-459 | 222.55 | 227.50 | 4.95 | 6.84 | Assays not yet completed | |||||||||
| KV-423 | 225.20 | 226.00 | 0.80 | 283.00 | 110.00 | 0.03 | 0.11 |
Greece Drilling continued at the Piavitsa prospect, with seven holes completed and approximately 7,500 metres drilled during the quarter. The primary target at Piavitsa is polymetallic, gold-silver rich, carbonate replacement sulfide mineralization along the Stratoni fault zone, similar to that typical of the Olympias deposit. All 23 drillholes completed in this year’s program have intersected the fault zone near the projected depth, and have cut intervals in the fault zone with some combination of massive sulfide, disseminated sulphide, or oxide material. Selected drilling results are summarized in the table below:
Selected Q3 drilling results, Piavitsa Project:
| Hole ID | From(m) | To (m) | Interval(m) | Au (g/t) | Ag (g/t) | Pb (%) | Zn (%) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Stratoni Fault replacement-style zones | ||||||||||||||
| PHG065 | 436.00 | 440.00 | 4.00 | 2.05 | 19.20 | 0.35 | 0.46 | |||||||
| PHG066 | 207.00 | 210.00 | 3.00 | 9.57 | 18.10 | 0.02 | 0.03 | |||||||
| PHG067A and | 62.00 | 66.00 | 4.00 | 2.12 | 3.50 | 0.02 | 0.05 | |||||||
| 81.00 | 83.00 | 2.00 | 5.33 | 4.20 | 0.00 | 0.01 | ||||||||
| PHG070 including | 209.00 | 232.00 | 23.00 | 4.35 | 85.30 | 2.92 | 1.68 | |||||||
| 215.00 | 223.00 | 8.00 | 11.89 | 228.40 | 8.27 | 4.65 | ||||||||
| PHG071 | 160.70 | 168.20 | 7.50 | 1.21 | 14.30 | 0.19 | 0.76 | |||||||
| PHG072 | 182.00 | 188.00 | 6.00 | 1.38 | 7.70 | 0.06 | 0.11 | |||||||
| PHG073 including | 42.00 | 54.00 | 12.00 | 2.21 | 37.00 | 0.44 | 1.70 | |||||||
| 48.00 | 52.00 | 4.00 | 4.98 | 49.10 | 0.98 | 3.43 | ||||||||
| PHG074 | 80.00 | 87.00 | 7.00 | 1.20 | 7.40 | 0.02 | 0.23 | |||||||
| PHG076 | 150.00 | 156.70 | 6.70 | 1.80 | 37.10 | 0.90 | 2.76 | |||||||
| 184.90 | 185.40 | 0.50 | 42.40 | 25.00 | 0.11 | 0.29 | ||||||||
| Hangingwall epithermal vein zones | ||||||||||||||
| PHG078 | 86.70 | 107.00 | 20.30 | 2.32 | 11.40 | 0.31 | 0.56 | |||||||
| 142.00 | 164.00 | 22.00 | 1.61 | 3.10 | 0.06 | 0.09 | ||||||||
| 197.80 | 210.00 | 12.20 | 1.00 | 13.90 | 0.06 | 0.04 |
At Skouries, 17 drillholes (6,500 metres) were completed in the quarter, representing roughly half of the planned infill and confirmation programs. Infill drillholes have documented low but consistent copper and gold grades within the in-pit inferred resource halo of the deposit including 94.0 metres at 0.3 grams per tonne gold and 0.27% copper in hole SOP-99; and 92.0 metres at 0.32 grams per tonne gold and 0.31% copper in hole SOP-100. Confirmation drillholes have intersected the intensely stockwork veined potassically-altered deposit core, with copper and gold grades similar to that predicted by the resource model.
At the Fisoka copper-gold porphyry prospect, two holes were completed during the quarter on the northern stock, and drilling has now shifted to the untested central stock area. The northern stock drilling further defined the shallow supergene zone outlined in previous drilling programs.
At Perama Hill geotechnical, metallurgical and infill drilling was conducted on the main deposit and infrastructure sites. Exploration drilling of targets outside of the existing resource model and at Perama South will commence in Q4 2012.
Romania At the Certej deposit, drill programs were completed during the quarter in the West Pit and Link Zone target areas. In the West Pit area, drilling tested for extensions of the high-grade Hondol and Kaiser vein systems, which were historically exploited in underground openings. Although this drilling failed to identify continuous high-grade veins, it outlined an approximately 50 metre wide, tabular west by northwest-striking zone of lower grade material which will be further tested in 2013. The Link Zone program, targeting underdrilled areas of the deposit between the West and Main zones, was completed during the quarter with 14 holes (5,700 metres) drilled. Most of these holes intersected zones of strong gold mineralization, which has positively impacted the deposit resource model.
China Exploration drilling in China during the quarter included projects in the Guizhou, Jilin, and Qinghai regions. In Guizhou, exploration drilling was conducted within the Jinfeng mining license, at the nearby Shizhu prospect, and at the Weiruo prospect (Jinluo exploration license). At the Jinfeng deposit, exploration drilling continued to focus on the F3, F6, and F7 mineralized structures from both surface and underground drill locations. A total of 19 holes representing approximately 5,700 metres of drilling were completed. The surface drilling program continues to produce high grade intercepts associated with the F6 structure, with notable intercepts during the quarter including 16.0 metres at 16.49 grams per tonne gold (HDDS0275); 6.0 metres at 15.59 grams per tonne gold (also HDDS0275), and 22.0 metres at 5.14 grams per tonne gold (HDDS0282).
In Qinghai (Tanjianshan), the Qinglongtan North and Xijingou drilling programs were completed during the quarter, with 9 drillholes and 27 drillholes respectively. At Qinglongtan North, drilling focused on previously untested areas down dip and along strike from the northern end of the previously mined deposit. Several of these holes intersected strong mineralization, including intervals of 26.0 metres at 9.24 grams per tonne gold (QD279) and 9.1 metres at 2.68 grams per tonne gold (QD278). These new intercepts may represent a new high grade gold zone lying beneath the known deposit, and further drill testing is planned for the fourth quarter of 2012. At Xinjingou, step-out drilling tested for extensions to the known zones of high grade mineralization. Notable results from this program include 11.8 metres at 11.51 grams per tonne gold (XD073); 4.0 metres at 15.79 grams per tonne gold (XD075), and 9.0 metres at 8.01 grams per tonne gold (also XD075). Results are being compiled to determine if further drilling is justified at Xijingou. Late in the quarter, a second phase of drilling was initiated at the Jinlonggou deposit, testing a variety of near-pit structurally-defined targets.
In the Jilin region (White Mountain), drilling was conducted at the Dongdapo, Xiaoshiren, and Zhenzhumen prospect areas. No significant results have been obtained to date.
Brazil No drilling was conducted during the quarter at the Tocantinzinho project. Exploration activities focused on reconnaissance-level evaluation of the adjacent Rubens Zilio license area through systematic soil sampling and prospecting.
At the Agua Branca project (35 kilometres south of Tocantinzinho) the 2012 drilling program was concluded, with 15 drillholes during the quarter testing for along-strike extensions of the Camarao zone. Although the mineralized zone demonstrates continuity to the southwest, grades are erratic, and no significant wide intercepts were obtained. Additional auger drilling, mapping, and rock sampling programs are underway to generate new drill targets at Agua Branca.
Fieldwork commenced during the quarter at the new Chapadinha project, which we are exploring under an option agreement. The Chapadinha project covers an area with extensive garimpo workings exploiting narrow veins high gold grades. Our work program is directed towards defining drill targets that will assess the potential of the area for a bulk-tonnage style deposit.
About Eldorado
Eldorado is a gold producing, exploration and development company actively growing businesses in Turkey, China, Greece, Brazil and Romania. With our international expertise in mining, finance and project development, together with highly skilled and dedicated staff, we believe that our company 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 Chief Executive Officer
Conference Call
Eldorado will host a conference call on Friday October 26, 2012 to discuss the 2012 Third Quarter Financial and Operating Results at 11:30am EDT (8:30am PDT). You may participate in the conference call by dialling 416-340-9432 in Toronto or 1-877-440-9795 toll free in North America and asking for the Eldorado Conference Call with Chairperson: Paul Wright, CEO of Eldorado Gold.
The call will be available on Eldorado’s website. www.eldoradogold.com. A replay of the call will be available until November 2, 2012 by dialling 905-694-9451 in Toronto or 1-800-408-3053 toll free in North America and entering the Pass code: 3971093.
Qualified Person(s)
Dr. Peter Lewis, P.Geo., VP Exploration for Eldorado Gold Corporation, is the Qualified Person for the technical disclosure of exploration results in this news release. Dr. Lewis is the Qualified Person as defined in the National Instrument 43-101 (Standards of Disclosure for Mineral Projects) of the Canadian Securities Regulators, responsible for preparing or supervising the preparation of the scientific or technical information contained in this document and verifying the technical data disclosed in the document relating to exploration results. Dr. Lewis consents to the inclusion in this news release of the matters based on his information in the form and context in which it appears.
Assay results reported in this release district were diamond drill core samples prepared at Eldorado's sample preparation facilities in Turkey and China. The prepared samples were sent to and assayed at various ACME and ALS analytical facilities worldwide. For all projects, analyses were done on sawn half core samples. Analysis for gold used fire assay (AA finish or Gravimetric Finish) whereas AA and ICP methods were used for Ag, Cu, Pb and Zn analyses. Assay quality was monitored and controlled by the regular insertion of standard reference materials, blank samples and duplicate samples prior to shipment from the respective sample preparation site.
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 the Company’s Q3, 2012 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 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 30, 2012
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 New York Stock Exchange (NYSE: EGO).
Contact
Nancy Woo, VP 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] Web site: www.eldoradogold.com
Request for information packages: [email protected]
PRODUCTION HIGHLIGHTS
| First Quarter 2012 | Second Quarter 2012 | Third Quarter 2012 | Third Quarter 2011 | First Nine Months 2012 | First Nine Months 2011 | |
| Gold Production Ounces Sold Ounces Produced Cash Operating Cost ($/oz)1,3,4 Total Cash Cost ($/oz)2,3,4 Realized Price ($/oz - sold) | 150,661 151,242 452 529 1,707 | 132,919 132,472 480 550 1,612 | 154,841 155,123 493 567 1,670 | 179,513 179,195 397 463 1,700 | 438,421 438,837 475 549 1,665 | 490,207 490,201 401 467 1,546 |
| 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 | 65,164 65,707 3,140,492 1.13 339 374 | 61,991 61,575 3,259,574 1.30 333 357 | 83,750 84,016 3,245,700 1.05 334 363 | 87,121 86,788 3,520,220 0.90 377 401 | 210,905 211,298 9,645,766 1.16 335 365 | 204,345 204,309 9,055,906 0.94 383 406 |
| 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 | 28,816 28,816 262,793 4.00 408 605 | 27,172 27,172 245,456 3.73 432 621 | 28,944 28,944 283,654 3.55 396 593 | 26,935 26,935 218,330 4.25 353 541 | 84,932 84,932 791,904 3.75 411 606 | 87,405 87,405 721,098 4.12 365 552 |
| 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 | 35,197 35,235 368,756 3.17 643 715 | 25,661 25,630 337,560 2.68 786 858 | 25,805 25,821 356,575 2.43 946 1,044 | 44,187 44,202 379,352 4.26 424 509 | 86,663 86,686 1,062,891 2.77 775 855 | 139,086 139,116 1,161,739 4.21 418 483 |
| 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 | 21,484 21,484 158,114 4.46 543 588 | 18,095 18,095 188,038 3.60 622 666 | 16,342 16,342 210,114 3.14 766 813 | 21,270 21,270 191,157 4.15 475 519 | 55,921 55,921 556,266 3.67 634 679 | 59,371 59,371 523,926 4.40 475 517 |
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 Condensed Consolidated Balance Sheets
Note September 30, 2012 December 31, 2011 $ $ ASSETS Current assets
Cash and cash equivalents 271,401 393,763 Restricted cash 6 36,794 55,390 Marketable securities 3,052 2,640 Accounts receivable and other 55,402 42,309 Inventories 216,216 164,057 582,865 658,159 Non-current inventories 21,700 26,911 Investments in significantly influenced companies 30,093 18,808 Deferred income tax assets 3,253 4,259 Restricted assets and other 42,387 38,430 Defined benefit pension plan 8 4,155 - Property, plant and equipment 6,012,298 2,847,910 Goodwill 669,311 365,928 7,366,062 3,960,405
LIABILITIES & EQUITY Current liabilities
Accounts payable and accrued liabilities 214,596 168,367 Current debt 7 45,558 81,031 260,154 249,398 Debt 7 50,000 - Asset retirement obligations 51,286 43,213 Defined benefit pension plan 8 - 19,969 Deferred income tax liabilities 871,056 336,579 1,232,496 649,159
Equity
Share capital 9 5,290,316 2,855,689 Treasury stock (7,317) (4,018) Contributed surplus 69,278 30,441 Accumulated other comprehensive loss (17,162) (10,069) Retained earnings 479,894 382,716 Total equity attributable to shareholders of the Company 5,815,009 3,254,759 Attributable to non-controlling interests 318,557 56,487 6,133,566 3,311,246 7,366,062 3,960,405
Approved on behalf of the Board of Directors
(Signed) Robert R. Gilmore Director (Signed) Paul N. Wright Director Unaudited Condensed Consolidated Income Statements (Expressed in thousands of U.S. dollars except per share amounts)
Three months ended Nine months ended
2012 2011 2012 2011 $ $ $ $ Revenue
Metal sales 281,839 327,364 797,579 799,088
Cost of sales
Production costs 107,615 95,020 293,340 250,762 Depreciation and amortization 26,082 29,954 78,635 91,014 133,697 124,974 371,975 341,776
Gross profit
148,142 202,390 425,604 457,312
Exploration expenses 11,130 6,913 29,899 15,359 General and administrative expenses 17,518 11,207 53,345 45,815 Defined benefit pension plan expense 638 418 1,899 1,274 Share based payments 4,396 3,599 17,210 15,403 Transaction costs 552 - 20,005 - Foreign exchange (gain) loss (1,926) 3,530 (2,227) 5,558
Operating profit
115,834 176,723 305,473 373,903
(Gain) loss on disposal of assets (23) 420 423 (2,672) Loss (gain) on marketable securities and other investments - 1,528 (1,032) 239 Loss on investments in significantly influenced companies 1,375 1,067 3,119 2,861 Other income (264) (2,792) (2,641) (4,808) Asset retirement obligation accretion 457 387 1,328 1,160 Interest and financing costs 1,481 2,293 3,615 5,407
Profit before income tax 112,808 173,820 300,661 371,716 Income tax expense 34,435 63,077 98,965 120,520 Profit for the period 78,373 110,743 201,696 251,196
Attributable to:
Shareholders of the Company 75,845 102,478 190,320 229,816 Non-controlling interests 2,528 8,265 11,376 21,380 78,373 110,743 201,696 251,196
Weighted average number of shares outstanding Basic 712,789 549,085 680,121 548,800 Diluted 713,340 551,309 681,222 550,737
Earnings per share attributable to shareholders of the Company:
Basic earnings per share 0.11 0.19 0.28 0.42 Diluted earnings per share 0.11 0.19 0.28 0.42 Unaudited Condensed Consolidated Statements of Comprehensive Income
Three months ended Nine months ended
2012 2011 2012 2011 $ $ $ $
Profit for the period 78,373 110,743 201,696 251,196 Other comprehensive income loss:
Change in fair value of available-for-sale financial assets (net of income taxes of nil and $12; and nil and $12) (231) (399) (1,368) (1,383) Realized gains on disposal of available-for-sale financial
- - (24) (434)
assets transferred to net income
| Actuarial losses on defined benefit pension plans | - - (5,701) | - |
| Total other comprehensive loss for the period | (231) (399) (7,093) | (1,817) |
| Total comprehensive income for the period | 78,142 110,344 194,603 | 249,379 |
Attributable to:
| Shareholders of the Company | 75,614 | 102,079 | 183,227 | 227,999 |
| Non-controlling interests | 2,528 | 8,265 | 11,376 | 21,380 |
| 78,142 | 110,344 | 194,603 | 249,379 |