2013 Third Quarter Financial and Operating Results Record Quarterly Gold Production
NEWS RELEASE ELD No. 13-14 TSX: ELD NYSE: EGO November 8, 2013
2013 Third Quarter Financial and Operating Results Record Quarterly Gold Production
VANCOUVER, BC – Paul N. Wright, 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 third quarter ended September 30, 2013. Profit attributable to shareholders of the Company for the quarter was $36.4 million or $0.05 per share compared to $75.8 million or $0.11 per share for the same quarter in 2012.
“During the third quarter Eldorado produced 204,620 ounces of gold at average cash operating costs of $472 per ounce, a 21% increase in gold production. Our gold mines continue to perform to plan and generate significant cash flows” said Paul Wright, CEO of Eldorado Gold. “With its strong balance sheet and comparatively low cost gold mining operations Eldorado is well-positioned with regard to the continuing weakness in gold prices.”
Third Quarter Summary Results and Corporate Developments
- Gold production of 204,620 ounces at an average cash operating cost of $472 per ounce (Q3 2012 gold production – 169,565 ounces at $493 per ounce).
- Gold sales of 199,117 ounces at an average gold price of $1,338 per ounce (Q3 2012 sales of 154,841 ounces at an average gold price of $1,670).
- Continued strong cash generation from operating activities before changes in non-cash working capital of $104.8 million (Q3 2012 - $110.8 million).
- During the quarter the Company announced updated resources for Certej and Olympias.
- The Company paid a dividend of Cdn$0.05 per share on August 26, 2013 related to gold sales during the first half of 2013.
Corporate Developments
On October 30, 2013, Eldorado announced that it will acquire, through one of its subsidiaries and by way of a friendly cash takeover, all of the outstanding shares of Glory Resources Limited (“Glory”) that are not already owned or controlled by the Company for total consideration of approximately A$30.5 million. Eldorado currently owns 19.9% of the shares in Glory. Eldorado also proposes to acquire all the issued options of Glory for total consideration of approximately A$1.8 million and to settle Glory's deferred obligations in the Sapes Gold Project to Cape Lambert Resources Limited for A$6.5 million.
Review of Financial Results
| Summarized Financial Results – quarter ended September 30, | 2013 | 2012 | ||
| Revenues (millions) $287.3 | $281.8 | |||
| Gold Revenues (millions) $266.4 | $258.5 | |||
| Gold sold (ounces) 199,117 | 154,841 | |||
| Average realized gold price ($/ounce) $1,338 | $1,670 | |||
| Cash operating costs ($/ounce sold) (1) $472 | $493 | |||
| Total cash cost ($ per ounce sold) (1) $528 | $567 | |||
| Gross profit from gold mining operations (1) (millions) $123.1 | $146.8 | |||
| Profit attributable to shareholders of the Company (millions) $36.4 | $75.8 | |||
| Earnings per share attributable to shareholders of the Company – Basic ($/share) $0.05 | $0.11 | |||
| Earnings per share attributable to shareholders of the Company – Diluted ($/share) $0.05 | $0.11 | |||
| Dividends paid (Cdn$/share) $0.05 | $0.06 | |||
| Cash flow from operating activities before changes in non-cash working capital(1) $104.8 (millions) | $110.8 |
(1) The Company has included non-IFRS performance measures such as cash operating costs, total cash costs, gross profit from gold mining operations and cash flow from operations before changes in non-cash working capital throughout this document. Please see Non-IFRS Measures in our third quarter 2013 MD&A for a discussion of these measures.
Net income for the quarter was $36.4 million (or $0.05 per share), compared with $75.8 million (or $0.11 per share) in the third quarter of 2012. Gross profit from gold mining operations fell $23.7 million year over year as a result of a 20% decline in realized gold prices year over year partially offset by a 7% decline in total cash costs. Net income for the quarter was also impacted by a non-cash $12.7 million write-down in the Company’s investment in associates. The effective tax rate for the third quarter was 50% as compared to a rate of 31% in the third quarter of 2012 mainly as a result of the impact of the weakening Turkish lira against the US dollar on the tax basis of our Turkish tax assets. Other factors affecting the effective tax rate during the quarter included taxable foreign exchange gains on US dollar cash balances held by our Turkish subsidiaries as well as withholding taxes on dividends paid by Jinfeng.
Operations Update Kisladag
| Operating Data | 3 months ended September 30, | 9 months ended September 30, | ||
|---|---|---|---|---|
| 2013 | 2012 | 2013 | 2012 | |
| Tonnes placed on pad | 3,336,465 | 3,245,700 | 9,553,306 | 9,645,766 |
| Average treated head grade - grams per tonne (g/t) | 1.28 | 1.05 | 1.28 | 1.16 |
| Gold (ounces) | ||||
| - Produced | 84,762 | 84,016 | 231,718 | 211,298 |
| - Sold | 85,029 | 83,750 | 231,959 | 210,905 |
| Cash operating costs (per ounce sold) | $324 | $334 | $328 | $335 |
| Total cash costs (per ounce sold) | $343 | $363 | $349 | $365 |
| Financial Data (millions) | ||||
| Gold revenues | $113.4 | $139.8 | $336.5 | $350.1 |
| Depreciation and depletion | $4.1 | $3.4 | $10.9 | $8.7 |
| Gross profit – gold mining operations | $79.5 | $104.7 | $242.1 | $261.3 |
| Capital expenditure on mining interests | $33.3 | $26.3 | $104.0 | $77.6 |
Gold production at Kisladag during the third quarter was slightly higher than the same quarter of 2012 mainly due to the higher grade ore placed on the pad. Production for the nine-month period of 2013 was higher than 2012 also due to higher grades. Capital expenditures during the quarter included waste stripping, acquisition of mining equipment and construction activities.
Efemcukuru
| Operating Data | 3 months ended September 30, | 9 months ended September 30, | ||
|---|---|---|---|---|
| 2013 | 2012 | 2013 | 2012 | |
| Tonnes Milled | 105,641 | 93,779 | 301,869 | 259,556 |
| Average treated head grade - grams per tonne (g/t) | 8.50 | 9.28 | 8.77 | 9.25 |
| Average Recovery Rate (to Concentrate) | 93.2% | 93.3% | 93.6% | 92.9% |
| Gold (ounces) | ||||
| - Produced – incl. pre commercial production (2012) | 23,438 | 14,442 | 69,583 | 26,957 |
| - Sold – commercial production | 26,410 | - | 101,888 | - |
| Cash operating costs (per ounce sold) | $551 | - | $558 | - |
| Total cash costs (per ounce sold) | $568 | - | $586 | - |
| Financial Data (millions) | ||||
| Gold revenues | $35.4 | - | $148.1 | - |
| Depreciation and depletion | $5.9 | - | $20.9 | - |
| Gross profit – gold mining operations | $13.9 | - | $64.9 | - |
| Capital expenditure on mining interests | $5.3 | $25.0 | $21.8 | $54.5 |
During the quarter Efemcukuru sold 26,410 ounces of gold in concentrate from third quarter operations and some inventory from second quarter production. Efemcukuru was in full production in the third quarter of 2013 as compared to the same quarter of 2012, at which time commissioning was ongoing. The mine and mill have both reached full design capacity. Capital expenditures during the quarter included underground development as well as plant upgrades and improvements.
Tanjianshan
| Operating Data | 3 months ended September 30, | 9 months ended September 30, | ||
|---|---|---|---|---|
| 2013 | 2012 | 2013 | 2012 | |
| Tonnes Milled | 285,406 | 283,654 | 805,532 | 791,904 |
| Average treated head grade - grams per tonne (g/t) | 3.40 | 3.55 | 3.54 | 3.75 |
| Average Recovery Rate | 82.9% | 82.9% | 82.5% | 82.8% |
| Gold (ounces) | ||||
| - Produced | 28,179 | 28,944 | 82,324 | 84,932 |
| - Sold | 28,179 | 28,944 | 82,324 | 84,932 |
| Cash operating costs (per ounce sold) | $377 | $396 | $405 | $411 |
| Total cash costs (per ounce sold) | $557 | $593 | $589 | $606 |
| Financial Data (millions) | ||||
| Gold revenues | $38.1 | $43.9 | $119.0 | $93.6 |
| Depreciation and depletion | $6.7 | $6.3 | $20.0 | $13.6 |
| Gross profit – gold mining operations | $15.3 | $24.5 | $49.6 | $69.6 |
| Capital expenditure on mining interests | $4.2 | $8.2 | $9.3 | $15.1 |
Gold production at Tanjianshan during the third quarter was slightly lower than the same quarter of 2012 as a result of lower head grades, partially offset by higher throughput. Cash operating costs per ounce decreased from the third quarter of 2012 as a result of lower processing costs. Capital spending included exploration activities and process improvements.
Jinfeng
| Operating Data | 3 months ended September 30, | 9 months ended September 30, | ||
|---|---|---|---|---|
| 2013 | 2012 | 2013 | 2012 | |
| Tonnes Milled | 363,798 | 356,575 | 1,052,406 | 1,062,891 |
| Average treated head grade - grams per tonne (g/t) | 3.66 | 2.43 | 3.14 | 2.77 |
| Average Recovery Rate | 88.0% | 83.4% | 85.0% | 84.8% |
| Gold (ounces) | ||||
| - Produced | 40,212 | 25,821 | 90,843 | 86,686 |
| - Sold | 40,212 | 25,805 | 90,888 | 86,663 |
| Cash operating costs (per ounce sold) | $684 | $946 | $743 | $775 |
| Total cash costs (per ounce sold) | $767 | $1,044 | $831 | $855 |
| Financial Data (millions) | ||||
| Gold revenues | $53.8 | $42.9 | $129.7 | $144.8 |
| Depreciation and depletion | $13.0 | $7.0 | $27.2 | $22.5 |
| Gross profit – gold mining operations | $9.9 | $8.9 | $26.9 | $48.1 |
| Capital expenditure on mining interests | $15.0 | $21.5 | $44.3 | $36.4 |
Gold production at Jinfeng in the third quarter was higher than the same quarter of 2012 due to higher head grades, recovery and throughput. Production from the open pit reached full capacity during the quarter and contributed to the improved head grade. Capital spending during the quarter included open pit stripping, underground mine development and process improvements.
White Mountain
| Operating Data | 3 months ended September 30, | 9 months ended September 30, | ||
|---|---|---|---|---|
| 2013 | 2012 | 2013 | 2012 | |
| Tonnes Milled | 209,581 | 210,114 | 611,548 | 556,266 |
| Average treated head grade - grams per tonne (g/t) | 3.28 | 3.14 | 3.44 | 3.67 |
| Average Recovery Rate | 84.0% | 83.1% | 85.5% | 85.4% |
| Gold (ounces) | ||||
| - Produced | 19,287 | 16,342 | 57,664 | 55,921 |
| - Sold | 19,287 | 16,342 | 57,664 | 55,921 |
| Cash operating costs (per ounce sold) | $713 | $766 | $693 | $634 |
| Total cash costs (per ounce sold) | $751 | $813 | $734 | $679 |
| Financial Data (millions) | ||||
| Gold revenues | $25.7 | $27.4 | $83.9 | $93.0 |
| Depreciation and depletion | $6.7 | $5.3 | $20.6 | $17.6 |
| Gross profit – gold mining operations | $4.5 | $8.7 | $20.7 | $37.3 |
| Capital expenditure on mining interests | $9.1 | $21.5 | $20.9 | $20.3 |
Gold production at White Mountain in the third quarter was higher than in the same period of 2012. This increase was largely a result of higher head grades. Cash operating costs per ounce decreased due to improved productivity from underground mining operations. Capital spending this quarter included underground development, exploration, tailings facility uplift and acquisition of underground mining equipment.
Vila Nova
| Operating Data | 3 months ended September 30, | 9 months ended September 30, | ||
|---|---|---|---|---|
| 2013 | 2012 | 2013 | 2012 | |
| Tonnes Processed | 219,925 | 161,859 | 612,700 | 528,024 |
| Iron Ore Produced | 189,858 | 139,553 | 528,456 | 456,419 |
| Average Grade (% Fe) | 63.2% | 63.5% | 63.1% | 63.5% |
| Iron Ore Tonnes | ||||
| - Sold | 126,835 | 123,180 | 338,257 | 383,785 |
| Average Realized Iron Ore Price | $74 | $59 | $98 | $77 |
| Cash Costs (per tonne produced) | $58 | $56 | $65 | $61 |
| Financial Data (millions) | ||||
| Revenues | $9.4 | $7.3 | $33.3 | $29.4 |
| Depreciation and depletion | $1.2 | $1.1 | $3.3 | $3.2 |
| Gross profit from mining operations | $0.9 | ($0.8) | $8.1 | $2.8 |
| Capital expenditure on mining interests | $0.3 | $0.4 | $3.9 | $0.7 |
Iron ore production in the third quarter increased 35% at Vila Nova as compared to the same quarter of 2012. The higher production year over year was due to mechanical and operational adjustments made in the treatment plant as well as an increase in scheduled operating hours in order to improve plant productivity. Iron ore sales were 3% higher than in 2012. Shipping continued through the public port in Santana while the Anglo-Ferrous port facility remains closed.
Stratoni
| Operating Data | 3 months ended September 30, | 9 months ended September 30, | ||
|---|---|---|---|---|
| 2013 | 2012 | 2013 | 2012 | |
| Tonnes ore mined (wet) | 60,011 | 58,591 | 174,245 | 144,062 |
| Tonnes ore processed (dry) | 56,463 | 55,911 | 167,315 | 136,785 |
| Pb grade (%) | 6.33% | 5.96% | 6.39% | 6.22% |
| Zn grade (%) | 9.37% | 9.69% | 9.49% | 9.74% |
| Ag grade (g/t) | 161 | 155 | 166 | 163 |
| Tonnes of concentrate produced | 14,586 | 14,084 | 42,918 | 35,224 |
| Tonnes of concentrate sold | 12,096 | 15,891 | 42,847 | 37,281 |
| Average realized concentrate price (per tonne) | $820 | $913 | $840 | $899 |
| Cash Costs (per tonne of concentrate sold) | $547 | $717 | $749 | $679 |
| Financial Data (millions) | ||||
| Revenues | $9.9 | $14.5 | $36.0 | $34.4 |
| Depreciation and depletion | $2.2 | $2.0 | $7.5 | $4.7 |
| Gross profit from mining operations | $1.1 | $1.2 | -$3.6 | $4.4 |
| Capital expenditure on mining interests | $1.4 | $0.5 | $2.0 | $2.6 |
Stratoni operating and financial data for 2012 shown in the table above reflects operations subsequent to February 24, 2012, the date of the European Goldfields Ltd. acquisition.
During the third quarter, Stratoni mined 60,011 tonnes of run-of-mine ore and produced 14,586 tonnes of lead and zinc concentrate at an average cash cost of $547 per tonne of concentrate sold. During the same period, Stratoni sold 12,096 tonnes of concentrate at an average price of $820 per tonne.
Olympias
During the third quarter, Olympias treated 185,012 tonnes of tailings and produced 8,742 payable gold ounces. Due to an unanticipated volume of fines in the tailings, production slowed during the quarter and modifications to the filtering process were begun. Commercial production is now expected during the fourth quarter, once the modifications to the filtering process equipment are complete. Capital spending totalled $22.8 million during the quarter and included underground decline development, underground rehabilitation and process plant improvements.
Development Projects Update
Skouries
General earthworks in the plant site area and site clearing of the first tailings dam footprint continued during the quarter. The main decline work advanced as planned, with a total of 115 meters completed. Geotechnical investigations to support underground and open pit designs progressed during the quarter.
Olympias
The Stratoni-Olympias 8km decline advanced 55 meters during the quarter, putting the face at 1,242 meters. Water inflow increased during the quarter, impacting the rate of advance and requiring cover grouting to slow the inflow. More extensive controls will be implemented during the fourth quarter to deal with anticipated continuing inflow. Olympias mine rehabilitation and development advanced 212 meters and 270 meters, respectively, as the pace of hiring and new employee training increased during the quarter to meet the mine’s objectives.
Perama Hill
We are awaiting final approval of the Environmental Impact Assessment (“EIA”) for Perama Hill. Approval of the EIA will allow construction of the initial infrastructure to commence and is required in order to obtain the permits to commence full construction. Preliminary engineering was substantially completed during the quarter. Additional engineering to support procurement of items with long leadtimes was commenced during the quarter. Metallurgical testwork was completed and the results of the testwork will be included in the final plant design.
Certej
Geotechnical drilling and rock characterization work was conducted during the quarter in support of a pit slope stability analysis which will be used in the ultimate pit design. Geotechnical work was also performed to assess the conditions for the foundations of the process plant. Metallurgical testing continued throughout the quarter, including confirmatory flotation testing of extended ore zones and pressure oxidation testing. This work will continue during the fourth quarter. Design information from these areas will be incorporated into an updated study. Also included in the update will be infrastructure upgrades to accommodate the additional ore and waste tonnage expected to be handled over the life of the mine as a result of the updated resource model. Work was completed during the quarter on the first phase of construction of an alternate access road to the property.
Tocantinzinho
Permitting activities continued during the quarter at both the state and federal levels. Engineering efforts focussed on optimizing capital requirements of the project and development of updated operating costs. Work began on optimizing the layout of the site facilities and on the design of the site infrastructure. A business case for contractor mining was evaluated as an alternative to owner operated mining. Significant work was completed on development of a comprehensive tax model covering both investment capital and operating costs. During the fourth quarter we plan to review the geological model and develop a revised mine plan for incorporation into a revised life of mine economic analysis along with updated capital, operating and sustaining costs. Non-essential field work was cancelled during the quarter. Field activity was limited to survey work needed to develop basic access to the site along the proposed main access road.
Eastern Dragon
Eastern Dragon remained on care and maintenance pending resolution of permitting issues. Site management worked with the local authorities to maintain local permits and permissions in good standing. Work continued on preparing the necessary paperwork to the National Development and Reform Commission (“NDRC”), as well as determining the timeline for review and approval.
Exploration Update
In the third quarter approximately 27,500 metres of exploration drilling were completed at the Company’s operating mines, developments and exploration projects, bringing the 2013 drilling total to 108,000 metres.
In Greece, continued drilling at the Piavitsa project focused on extending the first-pass drill coverage over the 2.5 km strike length of the mineralized Stratoni Fault Zone. Completion of a comprehensive relogging program and geological reinterpretation of the Olympias deposit culminated in an updated resource model late in the quarter.
In Romania, the resource expansion and infill drilling at the Certej deposit was completed early in the quarter and results were incorporated into an updated resource model which was published in our press release dated September 9, 2013. Exploration activities in Romania during the fourth quarter will be directed towards defining targets for drilling programs on three nearby exploration licenses.
In Turkey, drilling continued at the Efemcukuru minesite (both Kokarpinar and Kestane Beleni vein targets) and at the Ardala/Salinbas exploration project.
In China, exploration drilling programs focused on further delineation of Inferred Resources at the White Mountain Northern Extension, infilling high-grade zones at the Jinlonggou Bridge Zone and West Wall targets and step-out drilling in the newly defined Qinlongtan North Zone.
In Brazil, exploration activities concentrated on developing drilling targets at our early-stage projects and on new project generation.
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
Eldorado will host a conference call on Friday, November 8, 2013 to discuss the 2013 Second Quarter Financial and Operating Results at 11:30 a.m. EDT (8:30 a.m. PST). You may participate in the conference call by dialling 416-340-2219 in Toronto or 1-866-225-0198 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 15, 2013 by dialling 905-694-9451 Toronto or 1-800-408-3053 toll free in North America and entering the Pass code: 5235773.
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, 2013 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 28,2013.
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] Website: www.eldoradogold.com Request for information packages: [email protected]
ELDORADO GOLD Q3 2013 Gold Production Highlights (in US$)
| First Quarter 2013 | Second | Third | Third Quarter 2012 | First | First Nine Months 2012 | |
|---|---|---|---|---|---|---|
| Quarter | Quarter | Nine Months | ||||
| 2013 | 2013 | 2013 | ||||
| Gold Production Ounces Sold Ounces Produced1 Cash Operating Cost ($/oz)2,4,5 Total Cash Cost ($/oz)3,4,5 Realized Price ($/oz - sold) | 189,346 163,768 505 567 1,622 | 154,841 169,565 493 567 1,670 | 438,421 465,794 475 549 1,665 | |||
| 176,260 | 199,117 | 564,723 | ||||
| 183,971 | 204,620 | 552,359 | ||||
| 478 | 472 | 485 | ||||
| 536 | 528 | 544 | ||||
| 1,382 | 1,338 | 1,447 | ||||
| Kişladağ Mine, Turkey Ounces Sold Ounces Produced Tonnes to Pad Grade (grams / tonne) Cash Operating Cost ($/oz)4,5 Total Cash Cost ($/oz)3,4,5 | 70,250 70,221 2,915,508 1.29 334 359 | 83,750 84,016 3,245,700 1.05 334 363 | 210,905 211,298 9,645,766 1.16 335 365 | |||
| 76,680 | 85,029 | 231,959 | ||||
| 76,735 | 84,762 | 231,718 | ||||
| 3,301,333 | 3,336,465 | 9,553,306 | ||||
| 1.26 | 1.28 | 1.28 | ||||
| 327 | 324 | 328 | ||||
| 348 | 343 | 349 | ||||
| Efemcukuru Mine, Turkey Ounces Sold Ounces Produced Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz)4,5 Total Cash Cost ($/oz)3,4,5 | 50,291 19,856 86,879 8.47 582 619 | - 14,442 93,779 9.28 - - | - 26,957 259,556 9.25 - - | |||
| 25,187 | 26,410 | 101,888 | ||||
| 26,289 | 23,438 | 69,583 | ||||
| 109,349 | 105,641 | 301,869 | ||||
| 9.28 | 8.50 | 8.77 | ||||
| 519 | 551 | 558 | ||||
| 537 | 568 | 586 | ||||
| Tanjianshan Mine, China Ounces Sold Ounces Produced Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz)4,5 Total Cash Cost ($/oz)3,4,5 | 26,207 26,207 247,061 3.74 442 636 | 28,944 28,944 283,654 3.55 396 593 | 84,932 84,932 791,904 3.75 411 606 | |||
| 27,938 | 28,179 | 82,324 | ||||
| 27,938 | 28,179 | 82,324 | ||||
| 273,065 | 285,406 | 805,532 | ||||
| 3.50 | 3.40 | 3.54 | ||||
| 398 | 377 | 405 | ||||
| 577 | 557 | 589 | ||||
| Jinfeng Mine, China Ounces Sold Ounces Produced Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz) 4,5 Total Cash Cost ($/oz) 3,4,5 | 21,683 21,742 351,901 2.43 832 930 | 25,805 25,821 356,575 2.43 946 1,044 | 86,663 86,686 1,062,891 2.77 775 855 | |||
| 28,993 | 40,212 | 90,888 | ||||
| 28,889 | 40,212 | 90,843 | ||||
| 336,707 | 363,798 | 1,052,406 | ||||
| 3.33 | 3.66 | 3.14 | ||||
| 757 | 684 | 743 | ||||
| 845 | 767 | 831 | ||||
| White Mountain Mine, China Ounces Sold Ounces Produced Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz) 4,5 Total Cash Cost ($/oz) 3,4,5 | 20,915 20,915 198,934 3.80 634 679 | 16,342 16,342 210,114 3.14 766 813 | 55,921 55,921 556,266 3.67 634 679 | |||
| 17,462 | 19,287 | 57,664 | ||||
| 17,462 | 19,287 | 57,664 | ||||
| 203,033 | 209,581 | 611,548 | ||||
| 3.25 | 3.28 | 3.44 | ||||
| 742 | 713 | 693 | ||||
| 781 | 751 | 734 | ||||
| Olympias, Greece Ounces Sold Ounces Produced1 Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz)4,5 Total Cash Cost ($/oz)3,4,5 | - 4,827 89,112 3.97 - - | - - - - - - | - - - - - - | |||
| - | - | - | ||||
| 6,658 | 8,742 | 20,227 | ||||
| 116,972 | 185,012 | 391,096 | ||||
| 3.80 | 3.19 | 3.55 | ||||
| - | - | - | ||||
| - | - | - |
1 Ounces produced include pre-commercial production in 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-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 (Expressed in thousands of U.S. dollars)
Note September 30, 2013 December 31, 2012 $ $ ASSETS Current assets
| Cash and cash equivalents | 665,840 | 816,843 |
| Term deposits | 59,600 | - |
| Restricted cash | 261 | 241 |
| Marketable securities | 3,156 | 1,988 |
| Accounts receivable and other | 99,211 | 112,324 |
| Inventories | 220,888 | 220,766 |
1,048,956 1,152,162
| Investments in associates | 6 15,935 | 27,949 |
| Deferred income tax assets | 1,673 | 3,149 |
| Restricted assets and other | 34,062 | 31,846 |
| Defined benefit pension plan | 5,513 | 4,571 |
| Property, plant and equipment | 6,081,177 | 5,868,742 |
| Goodwill | 839,710 | 839,710 |
8,027,026 7,928,129
LIABILITIES & EQUITY Current liabilities
Accounts payable and accrued liabilities 215,514 224,567 Current debt 7 16,265 10,341 231,779 234,908
| Debt | 7 | 584,519 | 582,974 |
| Asset retirement obligations | 80,974 | 79,971 | |
| Deferred income tax liabilities | 8 | 959,300 | 816,941 |
1,856,572 1,714,794
Equity
| Share capital | 9 5,309,770 | 5,300,957 |
| Treasury stock | (11,084) | (7,445) |
| Contributed surplus | 76,416 | 65,382 |
| Accumulated other comprehensive loss | (26,273) | (24,535) |
| Retained earnings | 544,148 | 594,876 |
| Total equity attributable to shareholders of the Company | 5,892,977 | 5,929,235 |
| Attributable to non-controlling interests | 277,477 | 284,100 |
6,170,454 6,213,335 8,027,026 7,928,129
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 September 30, September 30,
Note 2013 2012 2013 2012 $ $ $ $ Revenue
Metal sales 287,254 281,839 892,251 797,579
Cost of sales
Production costs 120,753 107,615 367,254 293,340 Depreciation and amortization 40,461 26,082 112,809 78,635 161,214 133,697 480,063 371,975
Gross profit
126,040 148,142 412,188 425,604
Exploration expenses 9,866 11,130 27,730 29,899 General and administrative expenses 14,671 17,518 49,396 53,345 Defined benefit pension plan expense 616 638 1,864 1,899 Share based payments 3,765 4,396 15,933 17,210 Acquisition costs 5 - 552 - 20,005 Foreign exchange loss (gain) (939) (1,926) 4,879 (2,227)
Operating profit
98,061 115,834 312,386 305,473
Loss (gain) on disposal of assets (120) (23) (135) 423 Gain on marketable securities and other investments - - (21) (1,032) Loss on investments in associates 1,426 1,375 2,549 3,119 Impairment loss on investment in associates 6 12,707 - 12,707 - Other income (2,460) (264) (7,574) (2,641) Asset retirement obligation accretion 278 457 1,003 1,328 Interest and financing costs 9,748 1,481 31,310 3,615
Profit before income tax 76,482 112,808 272,547 300,661 Income tax expense 8 38,152 34,435 233,954 98,965 Profit for the period 38,330 78,373 38,593 201,696
Attributable to:
Shareholders of the Company 36,410 75,845 34,221 190,320 Non-controlling interests 1,920 2,528 4,372 11,376 Profit for the period 38,330 78,373 38,593 201,696
Weighted average number of shares outstanding Basic 715,083 712,789 714,901 680,121 Diluted 715,364 713,340 715,229 681,222
Earnings per share attributable to shareholders of the Company:
Basic earnings per share 0.05 0.11 0.05 0.28 Diluted earnings per share 0.05 0.11 0.05 0.28