FORM 40-F
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REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934
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þ
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ANNUAL REPORT PURSUANT TO SECTION 13(a) OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Commission file number: 001-31522
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Canada
(Province or other jurisdiction of incorporation or organization)
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1040
(Primary Standard Industrial
Classification Code Number (if applicable))
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N/A
(I.R.S. Employer
Identification Number (if Applicable))
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Title of each class
Common Shares, no par value
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Name of each exchange on which registered
NYSE
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x
Annual Information Form
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Audited Annual Financial Statements
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volatility of global and local economic climate and geopolitical risk;
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title, permitting and licensing risks, including the risks of obtaining and maintaining the validity and enforceability of necessary permits and licenses, the timing of obtaining and renewing such permits and licenses, and risks of defective title to mineral property;
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gold and other metal price volatility and the impact of any related hedging activities;
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development, mining and operational risk, including timing, hazards and losses that are uninsured or uninsurable;
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risks of operating in foreign countries in which we currently or may in the future conduct business, including controls, laws, regulations, changes in mining regimes or governments, and political or economic developments;
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regulatory restrictions, including environmental regulatory restrictions and liability, including actual costs of reclamation;
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changes in law and regulatory requirements or policies, including permitting, foreign investment, environmental, tax and health and safety laws and regulations;
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competition for mineral properties and merger and acquisition targets;
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environmental risks, including use and transport of regulated substances;
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infrastructure, water, energy, equipment and other input availability and durability, and their cost and impact on capital and operating costs, exploration, development and production schedules;
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community and non-governmental actions and regulatory risks, including the possibility of a shutdown at any of our operations;
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perceptions of the local people about foreign companies operating on their land;
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ability to maintain positive relationships with the communities in which we operate and potential loss of reputation;
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subjectivity of estimating mineral reserves and resources and the reliance on available data and assumptions and judgments used in interpretation of such data and depletion of grades or quantities of mineral reserves;
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discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries;
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speculative and uncertain nature of gold and other mineral exploration;
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risks of not meeting production and cost targets or estimates;
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the loss of key employees and our ability to attract and retain qualified personnel;
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employee health and safety risks and human rights;
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labour disputes, labour shortages and risks associated with unionized labour;
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prices for energy inputs, labour, material costs, supplies and services (including shipping) remaining consistent with expectations;
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risk associated with co-ownership (including joint ventures);
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impact on operations of compliance and non-compliance with anti-corruption, anti-bribery and sanction laws;
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increased capital requirements and the ability to obtain financing;
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currency exchange fluctuations and the impact of any related hedging activities;
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risks associated with maintaining substantial levels of indebtedness, including potential financial constraints on operations, interest rate risk and credit rating risk;
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the risks that the integration of acquired businesses may take longer than expected, the anticipated benefits of the integration may be less than estimated or the costs of acquisition may be higher than anticipated;
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the impact of acquisitions, dispositions, monetization, mergers, other business combinations or transactions, including effect of changes in our portfolio of projects on our current and future operations, capital requirements, and financial condition and ability to complete such transactions;
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litigation risks, including the uncertainties inherent in current and future legal challenges we are, or may become, a party to;
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share capital dilution and share price volatility;
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taxation, including change in tax laws and interpretations of tax laws;
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financial reporting risks;
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failure, security breaches or disruption of our information technology systems; and
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risks related to natural disasters and climate change.
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Financial Year Ending
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Audit Fees
(1)
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Audit Related Fees
(2)
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Tax Fees
(3)
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All Other Fees
(4)
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December 31, 2018
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$1,194,457
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$64,362
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—
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$46,200
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December 31, 2017
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$946,068
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$57,755
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—
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—
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Annual
Information
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Annual Information Form of the Company for the year ended December 31, 2018
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The following audited consolidated financial statements of the Company, are exhibits to and form a part of this Report:
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Report of Independent Registered Public Accounting Firm on the consolidated financial statements
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Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting
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Consolidated Statements of Financial Position as of December 31, 2018 and 2017
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Consolidated Statements of Operations for the years ended December 31, 2018 and 2017
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Consolidated Statements of Comprehensive Loss for the years ended December 31, 2018 and 2017
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Consolidated Statements of Cash Flows for the years ended December 31, 2018 and 2017
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Consolidated Statements of Changes in Equity for the years ended December 31, 2018 and 2017
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Management’s Discussion and Analysis for the years ended December 31, 2018 and 2017
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Certifications
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Certificate of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Exchange Act
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Certificate of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Exchange Act
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Certificate of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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Certificate of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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Consents
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Consent of KPMG LLP
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Consent of Mr. Antony Francis, FIMMM
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Consent of Mr. Colm Keogh, P.Eng.
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Consent of Mr. Ertan Uludag, P.Geo.
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Consent of Mr. Francois Chabot, Eng.
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Consent of Mr. Jacques Simoneau, P.Geo.
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Consent of Mr. John Nilsson, P.Eng.
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Consent of WSP Canada Inc.
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Consent of Mr. Patrick Forward, FIMMM
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Consent of Mr. Paul Skayman, FAusIMM
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Consent of Mr. Peter Lewis, P.Geo.
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Consent of Mr. Richard Miller, P.Eng.
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Consent of Mr. Rick Alexander, P.Eng.
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Consent of Mr. Stephen Juras, P.Geo.
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Consent of Mr. David Sutherland, P.Eng.
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XBRL
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101.INS
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XBRL Instance
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101.SCH
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XBRL Taxonomy Extension Schema
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase
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101.LAB
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XBRL Taxonomy Extension Label Linkbase
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase
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ELDORADO GOLD CORPORATION
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By:
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/s/ George Burns
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Name:
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George Burns
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Title:
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President and Chief Executive Officer
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Date:
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March 29, 2019
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ELD (TSX)
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EGO (NYSE)
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Non-Material Properties
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Stratoni
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Tocantinzinho
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Certej
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Bolcana
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Perama Hill
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Sapes Project
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Vila Nova
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Mineral reserves and resources
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2018 mineral reserve and mineral resource tabulations
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Risk factors in our business
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Investor information
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Our corporate structure
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Eldorado Gold capital structure
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Governance
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Terms of Reference
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Role
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Responsibilities
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Composition
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Meetings and Procedures
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Other Matters
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Responsibilities and Duties of the Chair
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Limitations of the Committee's Duties
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Approval
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Glossary
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our guidance and outlook, including expected production, cost guidance and recoveries of gold, including higher heap leach recoveries at Kişladağ, as well as expected commercial production at Lamaque;
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favourable economics for our heap leaching plan;
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the ability to extend mine life at our projects, including at Kişladağ through further metallurgical tests on deeper material;
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planned capital and exploration expenditures;
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conversion of mineral resources to mineral reserves;
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our expectation as to our future financial and operating performance, including expectations around generating significant free cash flow;
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gold price outlook; and
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our strategy, plans and goals, including our proposed exploration, development, construction, permitting and operating plans and priorities and related timelines and schedules.
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risks relating to the business environment in which the Company operates in, including geopolitical climate, government regulation, resource nationalism and foreign ownership restrictions, mineral tenure and permits, community relations and social license, reputational, competition, non-governmental organizations (NGOs), corruption and bribery, information technology systems, privacy legislation, share price and volume fluctuations, actions of activist shareholders, human rights matters, natural phenomena and conflict of interest;
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operational risks, including environmental matters, infrastructure and commodities, litigation and contracts, estimation of mineral reserves and mineral resources, occurrence of unpredictable geological/metallurgical factors, production and cost estimates, pre-stripping or underground development, extraction, processing, costs of development projects, exploration risks, labour, reclamation and long term obligations, use and transport of regulated substances, equipment, health and safety, co-ownership of our properties, contractors, risk related to acquisitions and dispositions, waste disposal and security; and
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financial risks, including liquidity and financing risks, credit risk, currency risk, interest rate risk, commodity price risk, unavailability of capital/inadequate income, indebtedness and financing, debt service obligations, cost estimates, tax matters, global economic environment, global markets for metals concentrates, repatriation of funds, dividends, compensation risks and financial reporting risks.
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any or all of a measured, indicated or inferred mineral resource will ever be upgraded to a higher category or to mineral reserves; or
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any or all of an indicated or inferred mineral resource exists or is economically and legally feasible to mine.
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Operating gold mines:
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Other Operating Mines and Development projects:
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● Kişladağ, in Turkey (100%)
● Efemçukuru, in Turkey (100%)
● Olympias, in Greece (95%)
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● Stratoni, in Greece (95%), silver-lead-zinc mine
● Lamaque, in Canada (100%) development project
● Skouries, in Greece (95%) development project
● Perama Hill, in Greece (100%) development project, currently on care and maintenance status
● Certej, in Romania (80.5%) development project
● Tocantinzinho, in Brazil (100%) development project
● Bolcana, Romania (80.5%) development project
● Sapes, in Greece (100%) development project currently on care and maintenance status
● Vila Nova, in Brazil (100%), iron ore mine, currently on care and maintenance status
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Turkey
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Canada
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Greece
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Netherlands
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Brazil
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Romania
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Serbia
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Barbados
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● Ankara
● Usak
● Izmir
● Canakkale
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● Val-d’Or
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● Athens
● Alexandropoulos
● Stratoni
● Sapes
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● Amsterdam
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● Belo Horizonte
● Santana
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● Deva
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● Belgrade
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● Bridgetown
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Brazauro Recursos Minerais S.A. (Brazauro)
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Deva Gold S.A. (Deva Gold)
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Hellas Gold S.A. (Hellas Gold)
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Integra Gold Corp.(Integra)
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SG Resources B.V. (SG)
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Thracean Gold Mining S.A. (Thracean)
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Thrace Minerals S.A. (Thrace Minerals)
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Tüprag Metal Madencilik Sanayi ve Ticaret AS (Tüprag)
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Total Proven and Probable Reserves of 389 million tonnes at 1.35 grams per tonne gold containing 16.9 million ounces of gold;
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Additional new reserves of 60,000 ounces of gold at Lamaque and replacement of milled production (80,000 ounces of gold) at Efemçukuru;
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Additional Inferred Resources of 572,000 ounces of gold at Lamaque, which now totals 1.8 million ounces of gold; and
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Maiden Inferred Resource at Bolcana in Romania of 381 million tonnes at 0.53 grams per tonne gold and 0.18% copper, containing 6.5 million ounces of gold and 686,000 tonnes of copper.
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Improved corporate financial metrics over the short- to medium-term when compared to the Mill project, demonstrating an increase in production and free cash flow over the next three years and a significant reduction in capital development costs;
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The flexibility to consider debt retirement and address balance sheet leverage later in 2019;
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Lower construction risks;
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Lower financing risks, as mining and heap leaching will not require external funding; and
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The potential for higher heap leach recoveries and the ability to extend heap leach mine life by conducting further metallurgical tests on deeper material in the pit under a longer leach cycle for both the three-year guidance and beyond.
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Production (oz)
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2018A
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2019E
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2020E
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2021E
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Kişladağ
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172,009
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145,000 - 165,000
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240,000 - 260,000
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75,000 - 95,000
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Lamaque
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35,350
1
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100,000 - 110,000
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125,000 - 135,000
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125,000 - 135,000
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Efemçukuru
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95,038
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90,000 - 100,000
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90,000 - 100,000
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90,000 - 100,000
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Olympias
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46,750
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50,000 - 55,000
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55,000 - 65,000
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55,000 - 65,000
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Total
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349,147
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390,000 - 420,000
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520,000 - 550,000
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350,000 - 380,000
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Consolidated Costs ($/oz sold)
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2018A
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2019E
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2020E
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2021E
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Cash Operating Cost - C1 ($/oz sold)
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625
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550 - 600
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500 - 600
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600 - 700
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Total Operating Cost - C2 ($/oz sold)
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650
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600 - 650
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550 - 650
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650 - 750
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AISC ($/oz sold)
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994
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900 - 1,000
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800 - 900
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900 - 1,000
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1.
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Quality Assets
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Operational Excellence
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3.
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Capital Discipline
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4.
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Accountability
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Exploration
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Eldorado’s exploration and corporate development teams actively look for potential new assets within our focus jurisdictions and in new regions. They assess early and advanced stage exploration projects and conduct near-mine and grassroots exploration programs with the primary goal of adding value through discovery and increasing our mineral resources and reserves. Our exploration programs are focused primarily in the countries in which we operate: Canada, Greece, Romania and Turkey. During grassroots exploration, our exploration teams visit prospective areas to conduct geological surveys and sampling, often partnering with other companies to benefit from their local knowledge and experience. If results indicate a possible mineralized deposit, we drill exploration holes to determine whether economically viable concentrations of metals may exist. Successful projects will continue to advanced exploration, wherein drilling programs will define a preliminary resource for evaluation purposes.
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Evaluation and Development
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During the evaluation and development stage, our engineering, technical services and metallurgy teams conduct feasibility studies to determine:
● the mineral reserves contained in a project;
● the optimal mining methods and mineral recovery processes;
● the required infrastructure;
● the best placement and design of facilities, based on through impact and migration assessments; and
● the required mine monitoring, closure and reclamation plans.
These studies give us a picture of the capital costs required for development and the longer-term economics of the project. We are then able to decide if a capital investment makes economic sense, in order to make a construction decision.
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Construction
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The project Environmental Impact Assessment (EIA) (also known as an Environmental Impact Study (EIS) and other relevant permits require approval by government authorities. Once we have received this along with management’s investment committee approval as well as board approval to proceed, our capital projects team can begin construction. Explicit requirements described in each EIA guide our activities and help us manage any social and environmental risks.
This construction phase requires the greatest input of capital and resources over a project’s life cycle, and through this phase we can add significant value to local economies through local job growth and procurement.
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Mining and Processing
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During production, our operations team and site personnel are responsible for mining and extracting ore from our underground mines (Efemçukuru, Olympias, Lamaque, Stratoni) and open pit mines (Kişladağ). The ore is processed on-site to produce a concentrate or doré. Any leftover materials generated by our mining activities, which typically include topsoil, waste rock and tailings, are either placed on-site in engineered facilities for storage and treatment, or reused elsewhere on-site as part of construction activities, rehabilitation, or as underground backfill. Rigorous environmental monitoring – to test air, water and soil quality, and noise, blast vibration and dust levels – enables us to comply with environmental regulations and our operating licenses and permits.
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Reclamation and Closure
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Restoring the land so it is compatible with the surrounding landscape is a priority for us and our communities in which we operate. How we conduct our rehabilitation in one jurisdiction impacts how we are welcomed in another. Therefore, prior to and throughout a mine’s operation, our operations teams develop and continuously enhance plans for the mine’s future closure in order to:
● protect public health and safety;
● eliminate environmental damage;
● return the land to its original condition, or an acceptable and productive alternative; and
● provide for long-term social and economic benefits.
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Sales of Mineral Products
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We produce gold doré as well as gold, silver, lead and zinc contained in concentrates. Our in-country marketing teams are responsible for finding downstream smelters and refineries and establishing long-term working relationships and purchase agreements. These agreements outline the terms and conditions of payment for our products, and specify parameters and penalties for the quantity, quality and chemical composition of our doré and concentrate.
The gold doré produced at Kişladağ is refined to market delivery standards at gold refineries in Turkey and sold at the spot price on the Precious Metal Market of the Borsa Istanbul. Gold doré will also be produced at Lamaque with commerical production beginning in 2019 and will be sold to local refineries in Ontario.
Contracts are also in place for the sale of concentrates from Greece and Turkey. These include gold concentrates from Efemçukuru and Olympias as well as lead/silver and zinc concentrates from Stratoni and Olympias. These concentrates are sold under contract and are paid for at prevailing spot prices for the contained metals.
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We calculate cash operating costs according to the Gold Institute Standard.
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Total cash cost is cash operating costs plus royalties, and production taxes.
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Cash operating costs, total cash cost and all-in sustaining costs (AISC) are non-IFRS measures. See page 23 of our MD&A and below for more information.
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AISC are calculated by taking total cash costs and adding sustaining capital expenditure, corporate administrative expenses, exploration and evaluation costs, and reclamation cost accretion. Eldorado Gold began reporting AISC per ounce sold in 2014.
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Site
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Facility
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Construction type
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Lined / Unlined
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Dam material
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Lifecycle
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Efemçukuru
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Dry Stack Flotation Tailings Storage Facility
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Downstream
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Lined
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Compacted mine rock for the berm located at the toe of the structure, constructed over prepared foundation and lined with geosynthetic clay liner and double side textured high density polyethylene (HDPE) geomembrane.
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In operation
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Kokkinolakkas
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Dry Stack Flotation Tailings Storage Facility
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D/S embankment: Downstream
U/S embankment:
Axial (Centreline)
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Lined
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D/S embankment: Rockfill
U/S embankment: Rockfill with clay core.
Facility includes a 4-layer impermeable liner.
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In operation
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Skouries
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Dry Stack Integrated Waste Management Facility
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Downstream
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Unlined
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Earth and rockfill embankment.
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Designed
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Lamaque
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Sigma CIL Tailings Storage Facility
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Upstream
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Unlined
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Tailings with reinforced rock buttressing.
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In operation
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Lamaque
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Lamaque Old Tailings Storage Facility
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Upstream
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Unlined
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Tailings
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Not in use
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Tocantinzinho
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Flotation Tailings Dam
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Downstream
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Unlined
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Compact clayey soil starter dam, later with clay core and compacted rockfill.
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Designed
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Tocantinzinho
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CIL Tailings Storage Facility
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Downstream
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Lined
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Basin in natural terrain with compacted soil, laterite and rockfill, and HDPE geomembrane layer.
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Designed
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Certej
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Flotation Tailings Dam
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Downstream for starter dam and first rise, and Centreline for the second rise.
Due to local terrain conditions, both a lateral and upstream dam are required.
Both will use Downstream construction method.
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Unlined
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Rockfill for both the upstream and downstream dams.
Rockfill with a clay core for the lateral dam.
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Designed
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Certej
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CIL Tailings Dam
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Downstream for starter dam and first rise, and Upstream for the second rise.
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Unlined
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Rockfill for starter dam and first rise. Tailings for second rise.
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Designed
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Perama Hill
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Mine waste management facility
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dry stack deposition
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Downstream
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Lined
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Earth and rockfill embankment with composite lining.
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Designed
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Vila Nova
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Tailings Dam
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Downstream
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Unlined
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Gravely clay soil, covered with gravel/laterite and grassy vegetation.
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Under rehabilitation
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Decommissioning – dismantling mine infrastructure such as facilities and buildings;
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Reclamation – rehabilitating and revegetating disturbed areas;
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Ongoing monitoring – long-term monitoring of environmental parameters; and
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Closure costs – regularly reviewing and updating closure plan costs, and making financial provisions.
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Promote safety as a core value within all levels of the organization;
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Comply fully with all applicable health and safety laws and regulations while adopting international best practices;
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Promote a culture where all employees and contractors take responsibility for safety, actively take part in training and recognize the importance of continuous improvement;
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Provide adequate resources throughout project life cycles to ensure the risks associated with every task are understood and mitigated;
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Offer wellness programs in order to provide basic medical treatment, including immunizations and medical checkups as an effort towards illness prevention;
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Require all of our contractors, suppliers and partners to conform to our Health and Safety Policy in their business activities while on our sites;
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Adhere to the Company’s Global Health and Safety Directive to ensure consistency with respect to the design and application of health and safety management systems;
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Implement emergency response programs at each mine site to support our activities, employees, visitors and community members; and
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Make our Health and Safety Policy accessible to all employees, contractors, stakeholders, business partners and interested parties to Eldorado.
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Design, develop, operate and decommission facilities in an environmentally sound manner;
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Conform to all applicable environmental laws and regulations, frameworks to which we subscribe and international best practices;
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Identify, evaluate, manage and regularly review the potential environmental impacts of our projects from inception through to closure;
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Provide environmental training, equipment and systems to our workforce to ensure the efficient use of resources and encourage suppliers to uphold our standards in their own business practices;
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Consult with communities of interest, relevant government agencies and key stakeholders to take into account their considerations relating to our environmental governance, including water use and quality, energy efficiency, emission reductions and tailings management;
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Protect water sources, reduce water use, recycle and reuse water wherever possible and ensure water is discharged according to regulatory requirements;
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Promote the efficient use of energy and adopt energy efficient practices with the goal of reducing our absolute carbon footprint;
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Establish, manage and regularly review reclamation and closure plans throughout the mine lifecycle and encourage early reclamation and budget allocation for related costs;
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Locate, design, construct, operate, decommission and close tailings facilities in a manner such that structures are stable, and solids and water are managed within designated areas. Ensure all aspects of tailings management comply with local regulations and conform to sound engineering practice, Eldorado’s standards, the Mining Association of Canada’s (MAC)
Towards Sustainable Mining
(TSM) Guiding Principles, MAC’s
Guide to the Management of Tailings Facilities
and commitments to our communities of interest;
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Conduct annual reviews of environmental management systems performance, including tailings facility management programs, to continually improve health, safety and environmental risks; and
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Take responsibility for adhering to this Environmental Policy and management systems and programs through the commitments and actions of our employees.
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Uphold and respect human rights as defined in the International Bill of Human Rights and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work;
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|
Respect the rights of our workforce, local community members and other stakeholders who may be impacted by our business activities. We expect our business partners, including security providers, contractors and suppliers, to share this commitment to rights, including those in regard to working conditions, freedom of association, freedom of speech, collective bargaining, maximum working hours, minimum wages, equal opportunity and freedom from discrimination;
|
•
|
Support the elimination of all forms of child, forcibly indentured and compulsory labour;
|
•
|
Establish grievance mechanisms to identify, receive and respond to human rights concerns from any stakeholder in a neutral manner. Eldorado will take measures to ensure the grievance mechanism’s accessibility, effectiveness and continuous improvement;
|
•
|
Not discriminate against any individual on the basis of race, sex, religion, age, social status, sexual orientation or any other arbitrary characteristic unrelated to the individual’s job performance;
|
•
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When it is necessary to engage with public or private security forces, uphold the Voluntary Principles on Security and Human Rights while adhering to local law and regulations;
|
•
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Respect the rights of local and indigenous communities near our sites of operation and ensure that all relevant stakeholders are engaged and measures are taken to respect their rights;
|
•
|
Strive for continuous improvement in upholding and respecting human rights through ongoing dialogue with internal and external stakeholders; and
|
•
|
Continually review and evaluate changing human rights conditions in the jurisdictions in which we operate.
|
Location
|
|
Usak Province, Turkey
|
Ownership
|
|
100%
through Tüprag, an indirect wholly-owned subsidiary of Eldorado Gold
|
Type of mine
|
|
Open pit
|
Metal
|
|
Gold
|
In situ gold as of September 30, 2018*
|
|
Proven and probable mineral reserves: 115.7 M tonnes at 0.81 g/t Au for 3.0 M ounces.
Measured and indicated mineral resources: 456.4 M tonnes at 0.61 g/t Au for 8.9 M ounces.
Inferred mineral resources: 290.5 M tonnes at 0.45 g/t Au for 4.2 M ounces |
Average annual production**
|
|
268,000 ounces
|
Expected mine life**
|
|
9 years, based on proven and probable mineral reserves
|
Workforce
|
|
637 (469 employees and 168 contractors)
|
1997
|
|
Identified ore body and began in-depth exploration.
|
2003
|
|
Completed the feasibility study in March.
Kişladağ EIA submitted.
Received environmental positive certificate and mine operation permit.
Increased the mineral reserves and resources in March and September.
|
2004
|
|
Received approvals for construction and the zoning plan in April.
Updated the feasibility study in May.
Received the construction permit in September and began site activities.
|
2005
|
|
Began construction.
|
2006
|
|
Poured the first doré in May.
Began commercial production in July.
|
2007
|
|
Completed Phase II (increase to 10Mtpa) plant construction.
Commercial production interrupted in August.
|
2008
|
|
Resumed commercial production in March.
|
2009
|
|
Completed expansion of Phase II leach pad and installed large carbon columns in ADR plant.
|
2011
|
|
Received approval of supplementary EIA for the expansion of mining to 12.5Mtpa and completed Phase III expansion.
Announced the intention to expand the process circuit to handle 25Mtpa of crushed ore plus an additional capacity averaging about 8Mtpa ROM ore.
|
2013
|
|
Applied for a supplemental EIA to increase yearly ore extraction to 35Mtpa of ore. Announced the deferral of the plans to upgrade the treatment capacity from 12.5Mtpa to 25Mtpa crushed and 8Mtpa ROM ore.
Audited and confirmed as compliant with the Cyanide Code.
|
2014
|
|
Received approval of supplementary EIA for the expansion of the operation to 35Mtpa.
Announced revised expansion of the operation to 20Mtpa.
Announced the deferral of the expansion project due to corporate cash flow considerations; expansion was expected at the time within the next three years.
|
2015
|
|
Completed redesign of south rock dump to extend operating life.
Replaced main overland conveyor, increasing workable leach pad area and placement rate for stacking ore.
Constructed surface water storage dam in conjunction with state water authorities.
|
2016
|
|
Completed crushing optimization project for Phase III circuit.
Completed Phase V leach pad expansion.
Installed two additional carbon in column lines to the ADR.
|
2017
|
|
Reconfigured pit design and decided to indefinitely defer expansion.
Completed the 154 kV power transmission line, substation and site distribution.
Completed the Phase VI East leach pad expansion.
During the year, Eldorado recognized chemistry issues in the leach pad, and then reported lower projected metallurgical recoveries for deeper sections of the deposit. The Company reduced the estimated recoverable leach pad inventory by approximately 40,000 ounces of gold. Eldorado also initiated a pre-feasibility study into processing methods with higher gold extraction.
|
2018
|
|
Crushing and stacking activities at Kişladağ ceased in April 2018 following the positive results of a Mill Pre-Feasibility Study. Mining of ore also ceased at the same time with the mining fleet transitioning to waste stripping associated with a larger mill pit.
Irrigation of ore on the leach pad continued throughout 2018 at higher cyanide concentrations.
Sonic drilling of the leach pad commenced in 2018 with 9,000m being drilled by year end. Sonic drill core samples were analysed to better understand gold distribution and chemistry within the pad. Additionally, drill holes were utilised for solution injection where applicable.
Production from the leach pad continued to outperform expectations culminating in an additional 76,000 ozs returned to leach pad inventory in October 2018.
Employee and contractor numbers were reduced by approximately 33% and 40% respectively throughout 2018.
|
2019
|
|
In early 2019, the Company analyzed the new data and developed revised heap leaching plans, showing significantly improved economics for the heap leaching scenario. As a result, in January 2019, the Company announced it would resume mining and heap leaching and suspend advancement of the Mill Project.
|
Mining Concessions
|
|
Operating license, IR 85994, covers 17,193 ha and expires May 10, 2032. The area is at approximate Latitude 29° 9’ N and Longitude 38° 29’ E.
The license can be extended if production is still ongoing at the end of the license period.
Under Turkish law, we have the right to explore and develop mineral resources in the license area as long as we continue to pay fees and taxes.
Tüprag has acquired the necessary surface rights to operate the mine at the 12.5Mtpa production rate or an expanded rate if required.
|
Permits
|
|
The Kişladağ EIA was submitted to the Ministry of Environment and Urbanization in January 2003, and the environmental positive certificate was issued in June of that year. A supplementary Kişladağ EIA to increase mine ore production to 12.5Mtpa was subsequently approved in June 2011.
The Kişladağ EIA identified several socio-economic effects of mine development, and identified measures that can be used to avoid or minimize potential environmental impacts.
An additional addendum to the Kişladağ EIA was prepared and submitted in 2013 and approved in June 2014. This Kişladağ EIA covers a potential expansion allowing maximum total mine ore production of 35Mtpa.
Applications have been made to expand the permitted operation area to accommodate the 2014 EIA boundary and the results are pending.
Please see the Pre-Feasibility Study, dated March 2018 for more information on permitting. (See “Business – Description of mineral properties - Material properties – Kişladağ – Technical report”).
|
Royalties and Taxes
|
|
Based on current Turkish legislation, an annual royalty is paid to the Government of Turkey, calculated on the basis of a sliding scale according to the average LME gold price during the calendar year, less some costs associated with ore haulage, mineral processing and related depreciation. At the current budgeted gold price of $1,275, a 6% royalty is in effect. However, because the ore is processed at site, the royalty rate on 2018 production to be paid in 2019 is reduced by 50%, and after deductions, the effective rate is approximately 1.9% of the gold and silver sales revenues. Production from 2019 and subsequent years will be eligible for only a 40% onsite processing reduction after deductions of certain costs. This equates to an effective royalty of 2.7%. The corporate income tax rate applicable to profits of Kişladağ in 2017 was 20% and it increased to 22% in 2018 for tax periods 2018, 2019 and 2020.
|
•
|
Estimated capital investment of $520 million (including $384 million for the mill, $75 million for pre-stripping, and $61 million in contingency and growth allowance);
|
•
|
Estimated after-tax project net present value (NPV) of $392 million at a 5% discount rate, after-tax internal rate of return (IRR) of 20.4% and payback period of 3.9 years, all at an assumed gold price of $1,300; and
|
•
|
Proven and Probable reserves materially the same as outlined in the National Instrument 43-101 (“NI 43-101”) Pre-Feasibility Study filed in March 2018, of 3.0 million ounces at 0.81 g/t Au, accounting for depletion over the first four months of 2018, support a nine year mine life with average annual production of 270,000 ounces of gold at an all in sustaining cost ("AISC") of $793 per ounce.
|
|
2018
|
Production
|
172,009
|
Cash Operating Cost per ounce
|
$662
|
Sustaining Capital*
|
$17.8 M
|
Key Parameters
|
2018 Kişladağ Milling Project Report
|
Milling Capacity
|
13.0 Million tonnes per annum
|
LOM Average Total Cash Costs (C2)
|
$690 /oz (includes silver credit)
|
LOM Average AISC (C3)
|
$778 /oz (includes silver credit)
|
LOM Average Recovery Rate
|
80.10%
|
Average Grade
|
0.81 g/t Au
|
Average LOM Strip Ratio
|
1.30
|
LOM Average Annual Gold Production
|
268,765 oz/year, 2.419M oz total LOM
|
Mine Life
|
9 Years
|
Estimated Capital Expenditure (millions)
|
|
Initial Capital
|
$489.8 M
($378.0 M Mill & TMF, $111.8 M Preproduction Mining)
|
Sustaining Capital
|
$213.3 M (includes 103.0M capitalized waste)
|
Closure Costs
|
$42.0M (Offset by $42.0M salvage value)
|
Gold Price Assumption for Financial Analysis
|
$1,300 /oz Au
|
NAV-5% (after tax, millions)
|
$434.2 M
|
IRR (after tax)
|
22.10%
|
Payback Period (after tax)
|
3.73 years
|
•
|
The entire sample crushed to 90% minus 3 mm (or 75% minus 2 mm);
|
•
|
A 1 kg subsample split from the crushed, minus 3 mm sample, using a rotary splitter, and pulverized to 90% minus 75 µm (200 mesh); and
|
•
|
A 110 g subsample split off from the pulverized 75 µm sample.
|
•
|
Automatic batch failure if the SRM result is greater than the round-robin limit of three standard deviations.
|
•
|
Automatic batch failure if two consecutive SRM results are greater than two standard deviations on the same side of the mean.
|
•
|
Automatic batch failure if the field blank result is over 0.03 g/t Au.
|
•
|
All ore will be fed into a conventional three-stage crushing and screening plant for size reduction down to 80% passing 6.3mm. There have been periods as recently as 2016 where lower grade ore was blasted fine and hauled to the leach pad as run of mine;
|
•
|
Crushed ore will be stacked on the leach pad through transport via overland conveying and stacking with a radial stacker in 10m high lifts;
|
•
|
The heap leach pad has a two-part liner system consisting of a layer of compacted low permeability clay soil or geosynthetic clay liner, and a 2mm thick polyethylene membrane liner textured on both sides for stability toe areas, and for regular areas non-textured or in some cases single sided textured linear low density polyethylene synthetic liner. HDPE liner is also used where the membrane will be subjected to sunlight for an extended period. The current permitted stack height is 120m, increased from 60m as a result of the 2014 EIA addendum;
|
•
|
Ore is leached with diluted cyanide solution applied by drip emitters with gold recovery in a conventional carbon adsorption facility ADR plant using a standard Zadra process including pressure stripping, electrowinning and smelting; and
|
•
|
The final product is a gold doré bar, which sees further processing to 99.95% purity in domestic refineries.
|
Location
|
|
Izmir Province, Turkey
|
Ownership
|
|
100%
through Tüprag, an indirect wholly-owned subsidiary of Eldorado Gold
|
Type of mine
|
|
Underground
|
Metal
|
|
Gold
|
In situ gold as of September 31, 2018*
|
|
Proven and probable mineral reserves: 4.4 M tonnes at 6.22 g/t Au for 0.876 M ounces.
Measured and indicated mineral resources: 4.7 M tonnes at 7.64 g/t Au for 1.146 M ounces. Inferred mineral resources: 3.58 M tonnes at 6.21 g/t Au for 0.714 M ounces. |
Average annual production**
|
|
91,000 ounces
|
Expected mine life**
|
|
9 years, based on proven and probable mineral reserves
|
Workforce
|
|
874 (450 employees and 424 contractors)
|
1992
|
|
Tüprag discovered the deposit while carrying out reconnaissance work in western Turkey.
|
1997
|
|
Completed drilling program of the north, middle and south ore shoots, delineating the resource and hydrogeologically testing the vein structure and the hanging wall and footwall rocks.
|
2004
|
|
Completed EIA study.
|
2005
|
|
Received positive EIA certificate.
|
2007
|
|
Released a positive feasibility study in August based on underground mining, milling the ore on-site and treating the gold concentrate at Kişladağ prepared by Wardrop Engineering Inc. (Wardrop).
|
2008
|
|
Wardrop completed positive feasibility study update in August.
Construction of the mine commenced.
|
2009
|
|
Construction continued throughout 2009.
|
2011
|
|
In June the mining and processing operations started. In December commercial production started and treatment of the Efemçukuru concentrate commenced at the Kişladağ concentrate treatment plant (KCTP).
|
2012
|
|
In September 2012, the KCTP was taken out of operation pending modifications to the circuit.
Commercial sales of concentrate to third parties began in November 2012.
|
2013
|
|
Completed addendum to EIA, increasing production capacity to a maximum of 600,000 metric tonnes per year.
The Kişladağ concentrate treatment plant is decommissioned.
|
2014
|
|
Mine throughput increased to 435 ktpa. North ore shoot (“NOS”) capital development and associated infrastructure completed.
|
2015
|
|
Commenced mining ore from the NOS.
|
2016
|
|
Process throughput increased to 477 ktpa.
Kestane Beleni exploration drift completed for potential resource conversion.
|
2017
|
|
Suspended gravity gold circuit to allow coarse gold to report directly to concentrate.
|
2018
|
|
500,000 tonne record mine production and mill throughput.
|
Mining Concessions
|
|
Operating license, IR 51792, covers 2,262 ha and is centred around approximate latitude 26º59’ N and 38º18’ E.
The license can be extended if production is ongoing at the end of the license period. IR 51792 expires on August 19, 2033.
Under Turkish law, we have the right to explore and develop mineral resources in the license area as long as we continue to pay fees and taxes. The necessary surface rights have been obtained to operate the mine.
|
Permits
|
|
The EIA was submitted to the Ministry of Environment and Urbanization in 2005, and the environmental positive certificate was issued in September of that year.
Subsequent to completion of the EIA, a revision was approved in December 2012, allowing for a larger disturbance footprint and an increased mining production rate of 600,000 tonnes per annum. In 2013, certain third parties opened a case against the Expansion EIA and on April 16, 2015, the 1st Administrative Court of Izmir canceled the positive opinion of the Expansion EIA based on an expert report. The decision was appealed and on February 25, 2016, the 14th Department of the Council of State overturned the decision of the 1st Administrative Court of Izmir and sent the file back to be reviewed by a new expert committee. On October 25th, 2017, the 1st Administrative Court of Izmir dismissed the case against the Expansion EIA positive opinion based on a new expert report. The Plaintiffs appealed this decision to the 14th Department of the Council of State. On the May 24th, 2018, the Council of State canceled the decision of the 1st Administrative Court in Izmir because of an in adequate expert report. The case has returned to the 1st Administrative Court in Izmir which has requested the experts to prepare a supplementary report to form the basis of a new decision by the court.
|
Royalties and Taxes
|
|
Based on current Turkish legislation, an annual royalty is paid to the Government of Turkey, calculated on the basis of a sliding scale according to the average LME gold price during the calendar year, less some costs associated with ore haulage, mineral processing and related depreciation. At the current budgeted gold price of $1,275, a 6% royalty is in effect. However, because the ore is processed at site, the royalty rate on 2018 production to be paid in 2019 is reduced by 50%, and after deductions, the effective rate is approximately 2.8 % of the gold and silver sales revenues. Production from 2019 and subsequent years will be eligible for only a 40% onsite processing reduction after deductions of certain costs. This equates to an effective royalty of 3.1%. The corporate income tax rate applicable to profits of Efemçukuru in 2017 was 20% and it increased to 22% in 2018 for tax periods 2018, 2019 and 2020.
|
|
2018
|
2019 - Forecast
*
|
Production
|
95,038
|
90,000-100,000 oz
|
Cash Operating Cost per ounce
|
$511
|
$550-600
|
Sustaining Capital
**
|
$24.4M
|
$15-20M
|
•
|
The entire sample crushed to 90% minus 3 mm (or 80% minus 2 mm); and
|
•
|
A 250 g subsample split from the crushed, minus 3 mm sample and pulverized to 90% minus 75 µm (200 mesh).
|
•
|
Automatic batch failure if the SRM result is greater than the round-robin limit of three standard deviations;
|
•
|
Automatic batch failure if two consecutive SRM results are greater than two standard deviations on the same side of the mean; and
|
•
|
Automatic batch failure if the field blank result is over 10 times the Au detection limit.
|
Location
|
|
Halkidiki Peninsula, northern Greece
|
Ownership
|
|
Hellas Gold
95% shares issued to an indirectly owned subsidiary of Eldorado Gold
5% shares issued to Aktor Enterprises Limited (“Aktor”)
The co-ownership of Hellas Gold is governed by a shareholders’ agreement
|
Type of mine
|
|
Underground
|
Metal
|
|
Gold, silver, lead, zinc
|
In situ metals as of September 30, 2018*
|
|
Proven and probable mineral reserves: 13.4 M tonnes at 7.26 g/t Au, 123 g/t Ag, 4.2% Pb and 5.5% Zn. Total contained metal is 3.120 M ounces Au, 52.757 M ounces Ag, 566,000 tonnes Pb and 729,000 tonnes Zn.
Measured and indicated mineral resources: 14.7 M tonnes at 8.10 g/t Au, 137 g/t Ag, 4.7% Pb and 6.2% Zn. Total contained metal is 3.835 M ounces Au, 64.924 M ounces Ag, 685,000 tonnes Pb and 911,000 tonnes Zn.
Inferred mineral resources: 3.4M tonnes at 8.04 g/t Au, 132 g/t Ag, 3.8% Pb and 3.8% Zn. Total contained metal is 0.888 M ounces Au, 14.586 M ounces Ag, 131,000 tonnes Pb and 131,000 tonnes Zn.
|
Average annual production metals**
|
|
Averaging 125,000 ounces Au, 2.0 M ounces Ag, 22,000 tonnes Pb, 30,000 tonnes Zn per year based on current proven and probable reserves over a 22 year mine life.
|
Expected mine life**
|
|
22 years, based on proven and probable mineral reserves, and dependent on timing of conversion from Phase II to Phase III
|
Workforce
|
|
746 (534 employees and 212 contractors)
|
Historic times
|
|
Bulk of ores at Olympias above water table were extracted by 300 BC.
|
1933
|
|
Shaft sunk to 74m depth with some drifting.
|
1954
|
|
Owners commenced exploration; thin, discontinuous sulphide lenses encountered (and many ancient workings).
|
1965-66
|
|
Further drilling intersected 10m of lead-zinc mineralization 20m below the 1933 shaft.
|
1970
|
|
Ownership transferred to Hellenic Fertilizer Company; ramp was started and production commenced in West Orebody.
|
1974-84
|
|
Mine was developed to mine lead and zinc. Shaft was sunk to the -312m level; high grade mineralization of East orebody intersected; highly profitable mining using sub-level caving; eventual transition to less profitable drift-and-fill mining due to excessive dilution, ground subsidence and water problems.
|
1991
|
|
Hellenic Fertilizer Company went into receivership; mine continued production under subsidy from Greek government.
|
1995
|
|
Ownership transferred to TVX Gold Inc. (TVX); production suspended to allow for drilling to define mineral resources.
|
1998-99
|
|
TVX completed drilling campaign (760 holes, 91,319m) and issued mineral resource estimation; initial feasibility study completed.
|
2004
|
|
Aktor acquired mining concessions holding 317km
2
, including the Olympias and Skouries, deposits together with Stratoni (the Kassandra Mines) through its subsidiary Hellas Gold.
The Hellas Gold acquisition of the Kassandra Mines was ratified by parliament and passed into law in January 2004 (National Law no. 3220/2004).
European Goldfields acquired its initial ownership percentage interest in Hellas Gold from Aktor through its wholly owned subsidiary European Goldfields Mining (Netherlands) B.V.
|
2007
|
|
European Goldfields increased share ownership of Hellas Gold to 95% (with 5% held by Aktor).
|
2011
|
|
EIS approved by Greek government.
|
2012
|
|
Eldorado acquired the project via the acquisition of European Goldfields.
Commenced tailings re-treatment and rehabilitation of the underground mine.
|
2015
|
|
Development of Phase II design to handle underground ore at a throughput of 400,000 tpa to produce lead/silver, zinc and gold concentrate.
Suspended operations at the Kassandra Mines for 6 weeks due to permitting issues with the government.
|
2016
|
|
Completion of Phase I tails reprocessing and retool plant to begin Phase II processing of new ore from underground. Continuation of new development in the underground.
Initial scoping study of Phase III commenced in 2016.
|
2017
|
|
Phase II processing plant commissioned and commenced treating fresh ore from the redeveloped Olympias underground mine.
Construction of the paste backfill plant suspended due to delay in receiving the electromechanical installation permit. Alternative backfill strategy implemented to facilitate safe, efficient underground mining.
Construction of paste backfill plant resumed in Q4 following receipt of the delayed permits.
Declared commercial production at the end of Q4 2017.
|
2018
|
|
Construction of the Past Backfill Plant completed in Q2, with the Plant commissioned and operational in Q3 2018.
Mine production capabilities reached 430,000 tpa during the year.
|
Mining Concessions
|
|
Two mining concessions (F13, F14) covering 49.7km2, granted until April 7, 2024;
can be extended twice for durations of 25 years each.
|
Permits
|
|
In July 2011, the MOE formally approved the EIS submitted by Hellas Gold for the three Kassandra Mines mine sites, being Olympias, Skouries and Stratoni, which involves an area of 26,400 ha, in northeastern Halkidiki (Macedonia Region). This EIS is valid for 10 years and subject to renewal in 2021.
Environment
The EIS was submitted by Hellas Gold in August 2010 and was approved in July 2011. This EIS covers all environmental matters for the Kassandra Mines, and is valid for 10 years and subject to renewal in 2021.
For production to commence, the MOE required the submission of a technical study. This was submitted and in early 2012, the technical study was approved by the MOE.
The installation permit for the Phase II process plant was issued on March 22, 2016. Installation work was completed in May 2017 at which time commissioning and trial production commenced. The Company received the operating permit for the Phase II plant in September 2017, allowing commencement of commercial production operations.
In September 2017, the Company also received an extension of the installation permit and an interim operating permit for the Kokkinolakkas TMF as well as the delayed installation permit for the paste backfill plant.
Hellas Gold has provided a €50M Letter of Guarantee to the MOE as security for the due and proper performance of rehabilitation works in relation to the mining and metallurgical facilities of the Kassandra Mines project and the removal, cleaning and rehabilitation of the old disturbed areas from the historic mining activity in the wider area of the project. Notifications for the Operation of the Olympias Paste Plant and Kokkinolakkas TMF were formally submitted within 2018 and remain in force in line with new legislation that replaced previous operating permits issuance procedures.
|
Royalties and taxes
|
|
Based on current Greek legislation, royalties are applicable on active mining titles. The royalty is calculated on a sliding scale tied to metal prices in Euros. At $1,275 / oz Au, $17 / oz Ag, $2,250 / tonne Pb and $2,500 / tonne Zn and an exchange rate of €1.2: US$1, Hellas Gold would pay a royalty of approximately 1.5% on Au revenues, 1.5% on Ag revenues, 1.0% on Pb revenues and 1.0% on Zn revenues.
The corporate income tax rate for Greek companies for 2018 was 29%. This is legislated to drop by 1% per annum until it reaches 25% in fiscal year 2022.
|
|
2018
|
2019 - Forecast*
|
Production
|
46,750 ounces**
|
50,000 - 55,000
|
Cash Operating Cost per ounce
|
$764
|
550-650***
|
Sustaining Capital
****
|
$12.2M
|
$20-25M
|
•
|
The entire sample crushed to 90% minus 3 mm (or 80% minus 2 mm); and
|
•
|
A 250 g subsample split from the crushed, minus 3 mm sample and pulverized to 90% minus 75 µm (200 mesh).
|
•
|
Automatic batch failure if the SRM result is greater than the round-robin limit of three standard deviations;
|
•
|
Automatic batch failure if two consecutive SRM results are greater than two standard deviations on the same side of the mean; and
|
•
|
Automatic batch failure if the field blank result is over 10 times the Au, Pb or Zn assay detection limit.
|
•
|
Continuation of operations at the Mavres Petres deposit of the Stratoni mine;
|
•
|
Development, mining, and processing of ore at the Olympias Mine;
|
•
|
Metallurgical treatment of concentrate of Olympias and Skouries mines in the Stratoni valley;
|
•
|
Reclamation of the Olympias valley by extracting ore from Olympias through a tunnel to the metallurgical plant in the Stratoni valley;
|
•
|
Development of the Skouries asset; mining facilities, new beneficiation plant and tailings facilities; and
|
•
|
Expansion of the port facilities at Stratoni in service of the above projects’ operations.
|
•
|
Law 1650/86 - ‘The Protection of the Environment from Projects and Activities’, as amended by Law 3010/2002;
|
•
|
Law 998/79 (OGG 289/29-12-1979) on the Protection of forests and in general forested areas of the Country; and
|
•
|
Law 3220/18.01.2004 (OGG 15A/2004) on the validation of the Kassandra Mines transfer to Hellas Gold.
|
•
|
The existing Olympias process plant was refurbished in Q4 2012 to process the previously produced and stored tailings. This gold concentrate was sold from then until Q1 2016 as a non-commercial product. During this period Hellas Gold has refurbished and extended the existing underground infrastructure;
|
•
|
Phase II involves the processing of ore from Olympias underground, through the same process plant at Olympias reconfigured to produce lead / silver, zinc and gold concentrates. Operations commenced in May 2017 and the Company declared commercial production in December 2017; and
|
•
|
Phase III involves a production ramp-up on completion of the underground connection to a new surface concentrator plant at a brownfield site in the nearby Stratoni Valley, and development of a metallurgical plant to treat concentrates. The smelter will take the gold concentrate from Olympias, and a portion of the copper gold concentrate from Skouries, and then ultimately produce refined copper, silver and gold.
|
Location
|
|
Halkidiki Peninsula, northern Greece
|
Ownership
|
|
Hellas Gold
95% shares issued to an indirectly owned subsidiary of Eldorado Gold
5% shares issued to Aktor Enterprises Limited (“Aktor”)
The co-ownership of Hellas Gold is governed by a shareholders’ agreement
|
Type of mine
|
|
Open pit, underground
|
Metal
|
|
Gold, copper
|
In situ metal as of September 30, 2018*
|
|
Proven and probable mineral reserves: 157.7 M tonnes at 0.74 g/t Au and 0.49% Cu. Total contained metal is 3.773 M ounces Au and 779,000 tonnes Cu.
Measured and indicated mineral resource: 289.3 M tonnes at 0.58 g/t Au and 0.43% Cu. Total contained metal is 5.401 M ounces Au and 1,242,000 tonnes Cu.
Inferred mineral resources: 170.1 M tonnes at 0.31 g/t Au and 0.34% Cu. Total contained metal is 1.680 M ounces Au and 578,000 tonnes Cu.
|
Average annual production (metal in concentrate and doré)**
|
|
Phase I (Year 1 to 10): 172,400 ounces Au, 33,500 tonnes Cu
Phase II (Year 11 to end of LOM): 110,500 ounces Au, 27,450 tonnes Cu
|
Expected mine life**
|
|
23 years, based on proven and probable mineral reserves
|
Workforce
|
|
85 (34 employees and 51 contractors)
Planned numbers for operations: 1,000-1,200 full-time employees during construction, 900 full-time positions in Phase I, 750 full-time positions in Phase II
|
1960’s
|
|
Initial drilling by Nippon Mining and Placer Development.
|
1970’s
|
|
Drilling carried out by Hellenic Fertilizer Company.
|
1996-97
|
|
Ownership transferred to TVX, exploration drilling tested extensions at depth; in-fill drilling program carried out.
|
1999
|
|
TVX issues mineral resource estimation; initial feasibility study completed.
|
2004
|
|
Aktor acquired mining concessions holding 317km
2
including the Olympias and Skouries deposits together with the remaining Kassandra Mines assets through its subsidiary Hellas Gold.
The Hellas Gold acquisition of the Kassandra Mines was ratified by parliament and passed into law in January 2004 (National Law no. 3220/2004).
European Goldfields acquired its initial ownership percentage interest in Hellas Gold from Aktor through its wholly owned subsidiary European Goldfields Mining (Netherlands) B.V.
|
2006
|
|
European Goldfields prepared a bankable feasibility study based on an open pit operation to a depth of 240m followed by underground mining.
|
2007
|
|
European Goldfields increased share ownership of Hellas Gold to 95% (with 5% held by Aktor).
|
2011
|
|
EIS approved by Greek government.
|
2012
|
|
Eldorado acquired the project through the acquisition of European Goldfields.
|
2013
|
|
Hellas Gold commenced construction of the Skouries Mine.
|
2014
|
|
Completed scoping level study on underground mine design.
|
2015
|
|
Initiated work on prefeasibility study of underground mine and open pit tailings disposal.
Suspended operations at the Kassandra Mines for 6 weeks due to permitting issues with the government.
|
2016
|
|
Construction at Skouries was suspended in January 2016 due to ministerial decision to revoke the project’s technical study.
Construction of surface facilities resumed in June 2016 after this decision was overturned on appeal.
Ongoing prefeasibility, feasibility and basic engineering studies on the Integrated Waste Management Facility and underground Phase I and LOM mining options.
|
2017
|
|
A decision was made to move Skouries into care and maintenance beginning in November following the non-issuance of the updated electro-mechanical installation permit. This transition to care and maintenance was completed in H1 2018.
|
2018
|
|
Significant damage occurred across the site due to inclement weather, which lead to the decision for critical site works to be executed to repair and protect the site.
Transition to Care & Maintenance was completed at the end of 2018 along with the completion of all critical site works to safeguard the site environmentally and geotechnically by mitigating associated risks.
Hellas Gold filed a non-judicial application for payment with the Hellenic Republic for approx. €750M for damages arising from delays in the issuance of permits and loss of profits.
|
Mining Concessions
|
|
Eight mining concessions (OP03, OP04, OP20, OP38, OP39, OP40, OP48, OP57) covering 55.1km
2
, granted until April 7, 2024; can be extended twice for durations of 25 years each.
|
Permits
|
|
In July 2011, the MOE formally approved the EIS submitted by Hellas Gold for the three Kassandra Mines mine sites, being Olympias, Skouries and Stratoni, which involves an area of 26,400 ha, in northeastern Halkidiki (Macedonia Region). This EIS is valid for 10 years and subject to renewal in 2021.
For construction to commence and continue in a timely manner as well as production to commence, the MOE requires the submission and approval of a technical study for the various components of the project. A technical study was submitted in early 2012, and subsequently approved by the Greek MOE. An updated technical study covering amended aspects of the process plant and associated infrastructure was submitted to the MOE in December, 2015 and this was approved in May 2016.
Permitting activities resumed in 2016 with the granting of the Skouries Process Plant building permit. The Skouries Project was again moved towards care and maintenance in late 2017 due to the non-issuance of permits. These permits included the Skouries electro-mechanical installation permit for the revised Technical Study. At year-end, we were also waiting for the resolution of the removal of the antiquity site in the pit. While this is not strictly a permit, it is required to commence operations. The new 43-101 that will be published in March, 2018 changes over the tailings deposition method to filtered tailings. This will require a modification to the existing permits also.
Additional technical studies and permits are required to be approved in a timely manner to allow construction to move forward. Construction is expected to take approximately two years from construction commencing again.
Since 2012, the MOE and other agencies have not fulfilled their legislated permitting and licensing obligations. During 2015, the MOE revoked or suspended certain permits of Hellas Gold which has had a negative impact on our schedule and budget to develop our assets.
|
Royalties and Taxes
|
|
Based on current Greek legislation, royalties are applicable on active mining titles. The royalty is calculated on a sliding scale tied to metal prices. At $1,275/oz Au and $6,612 / tonne ($3.00 / lb) Cu and an exchange rate of
€
1.2:US$1, Hellas Gold would pay a royalty of approximately 1.5% on Au revenues and 0.5% on Cu revenues.
The corporate income tax rate for Greek companies for 2018 was 29%. This is legislated to drop by 1% per annum until it reaches 25% in fiscal year 2022.
|
•
|
Automatic batch failure if the SRM result is greater than the round-robin limit of three standard deviations;
|
•
|
Automatic batch failure if two consecutive SRM results are greater than two standard deviations on the same side of the mean; and
|
•
|
Automatic batch failure if the field blank result is over 0.1 g/t Au.
|
Capital Cost Summary Area
|
Initial
(US$ x 1,000)
|
Sustaining
(US$ x 1,000)
|
A - Overall Site
|
14,508
|
—
|
B - Open Pit Mine
|
66,694
|
22,975
|
B - Underground Mine
|
144,019
|
405,352
|
C - Stockpile and Materials Handling
|
11,801
|
596
|
D - Process Plant
|
134,833
|
41,400
|
E - Underground Backfill Plant
|
—
|
27,619
|
F - Integrated Waste Management Facility (IWMF)
|
22,446
|
21,948
|
G - In Pit Tailings
|
—
|
40,546
|
I - Water Management
|
15,248
|
3,486
|
H - Infrastructure
|
49,288
|
5,993
|
J - Ancillary Facilities
|
9,001
|
2,146
|
K - Off Site Infrastructure
|
4,541
|
—
|
P - Environmental
|
—
|
2,708
|
Direct
|
472,379
|
574,769
|
Indirects
|
99,563
|
59,661
|
Owners Cost
|
30,340
|
—
|
Contingency
|
86,892
|
123,587
|
Total Installed Cost
|
689,174
|
758,017
|
Category
|
LOM Average
(US$/t ore)
|
LOM Expenditure
(US$ x 1,000)
|
Open Pit Mining (US$/t of OP ore)
|
4.51
|
238,876
|
Underground Mining (US$/t of UG ore)
|
16.50
|
1,602,340
|
Total Mining (US$/t of LOM ore)
|
11.75
|
1,841,216
|
Stockpile Rehandling
|
0.06
|
9,818
|
Processing Cost
|
6.73
|
1,055,007
|
Filter Plant
|
0.76
|
119,067
|
IWMF and Water Management
|
0.62
|
96,788
|
G&A
|
1.39
|
218,317
|
Operating Cost
|
21.31
|
3,340,213
|
Location
|
|
Val-d’Or, Quebec, Canada
|
Ownership
|
|
100%
Through Integra Gold (Triangle) and Or Integra (Sigma), wholly owned subsidiaries of Eldorado Gold
|
Type of planned mine
|
|
Underground
|
Metal
|
|
Gold
|
In situ gold (as of September 30, 2018):*,***
|
|
Proven and probable mineral reserves: 4.1 million tonnes at 7.25 g/t Au for 0.953 million contained ounces
Measured and indicated mineral resources: 5.1 million tonnes at 8.30 g/t Au for 1.354 million contained ounces.
Inferred mineral resources: 8.4 million tonnes at 6.78 g/t Au for 1.830 million contained ounces.
|
Average annual production
|
|
113,000 ounces
|
Expected mine life**
|
|
8 years, based on current proven and probable mineral reserves
|
Workforce****
|
|
607 (307 employees and 300 contractors)
|
1923
|
|
Gold was first discovered in the Val-d’Or area by R.C. Clark on what later became the Lamaque Property.
|
1928
|
|
Read-Authier Mines Limited was formed to acquire the Lamaque property.
|
1932
|
|
Teck-Hughes acquired an option on the property and Teck-Hughes exercised its option incorporating the Lamaque Gold Mines Limited, a wholly owned subsidiary of Teck-Hughes to take over the original property and a number of the adjoining claims.
|
1933-35
|
|
A shaft was sunk starting in January 1933; lateral work and construction on the original mill followed in the summer of 1934. The mill started operations in April 1935 with a capacity of 350 tons per day (tpd), which was increased to 500 tpd later in the same year.
|
1950-55
|
|
The No. 2 Mine was developed in 1950-1951. Production from the No. 2 Mine ceased in November 30, 1955. In 1951, the mill capacity was increased to 1500 tpd and to 2100 tpd in 1953.
|
1955-61
|
|
In late 1955, a new discovery approximately 4,500 feet southeast of the Main Mine was made and in late-1960 / early-1961 shaft sinking for the new zone, the No. 3 Mine, was initiated. In summer 1961 development work for three zones in the No. 3 Mine was underway.
|
1985
|
|
In May 1985, all production at the Lamaque mine ceased. The Lamaque mill was kept on care and maintenance basis until 1986 for custom milling. Post-shutdown, Teck and Golden Pond formed the Teck-Golden Pond JV while Teck and Tundra formed the Teck-Tundra JV to explore a portion of the historical Lamaque property.
|
1988
|
|
Tundra signed an agreement with Teck to acquire a 100% interest in all of Teck’s assets at Lamaque. The assets to be acquired included the Main Mine Property, all surface structures including the mill, surface and underground equipment, and Teck’s interest in the Tundra, Golden Pond and Roc d’Or Mines agreements. However, Tundra was unable to fulfill its commitments and the Main Mine and mill area were returned to Teck, while Tundra’s and Golden Pond’s interest in the Tundra and Golden Pond JV properties was diluted to 50%.
|
1990-2014
|
|
No exploration was conducted on the Tundra and Golden Pond JV properties between 1990 and 2003. In 1992, the Lamaque Mill Mine was demolished.
The Main Mine area of the property was acquired by Placer Dome in November, 1993 and the surface rights were acquired by Placer Dome in October, 1999. No mining or underground development was conducted between 1999 and 2010.
In September 1997, Placer Dome sold the Sigma mine to McWatters Mining Inc. In July 1999, McWatters Mining Inc. closed the underground mine. In 1999 and 2000, limited open pit operations occurred at the Sigma mine.
The McWatters Mining Inc. open pit operation never reached commercial production and mine operations were shut down in October 2003, with McWatters Mining Inc. placed into bankruptcy. Century purchased the Sigma and Lamaque mines in September 2004 and re-started the Sigma open pit mine.
In 2003, Kalahari and Teck Cominco signed an agreement providing Kalahari the option to earn Teck's interest in the JV properties. In 2006-2007, Kalahari conducted a small drilling program at the Triangle Deposit area, located some 3km south-east of the Sigma-Lamaque Deposits.
In 2009 Kalahari bought out the remaining Tundra and Golden Pond interest in the properties through a share swap.
Kalahari changed its name to Integra Gold in 2010 as the 100% owner of the property.
In 2010, the Sigma-Lamaque mine was re-opened.
Between 2010 and 2014, Integra Gold conducted various drilling programs at the newly found Triangle Deposit and historical Plug #4 and Parallel Deposits.
In October 2011, White Tiger Gold Ltd acquired Century and the Sigma-Lamaque Complex.
White Tiger Gold restarted commercial production at the Sigma-Lamaque Complex in February 2012.
|
2014
|
|
In 2014, Integra Gold bought the adjacent Sigma Mill and historic Sigma and Lamaque Mines.
|
2015
|
|
Integra Gold, following a significant surface drill program, reinterpreted the geological controls on gold mineralization at the Triangle Deposit, leading to a significant increases in the resources base of the project.
In the same year, Eldorado Gold acquired a 15% interest in Integra Gold following a Private Placement.
|
2017
|
|
In February 2017, Integra Gold release an updated positive Preliminary Economic Assessment on the project, followed by an updated resources estimate.
In July 2017, Eldorado Gold acquired the remaining outstanding shares to own 100% of Integra Gold and the Lamaque project.
In 2017, Eldorado commenced a Prefeasibility study on the Lamaque Project.
|
2018
|
|
In March 2018, the PFS study was completed by Eldorado Gold.
In 2018, all permits were received from the MOE to commercially operate the mine at the Triangle Deposit and the mill and tailings facility at Sigma. In December 2018, first gold was poured from material processed through the Sigma Mill. |
2019
|
|
Commercial operations are on track for Q1 2019.
Production of 100,000-110,000 ounces of gold (including pre-commercial production) at a cash costs of $550-600 per ounce of gold sold is forecast for 2019.
Expanding resources below C5 will comprise the primary exploration focus at the Triangle Deposit during 2019 and also in 2020.
|
Mining Concessions
|
|
The exploitation of the Triangle Deposit is covered by a mining lease BM-1048, which was obtained in March of 2018 from the MERN, and also by a series of mining concessions, which permits underground mining production. Parallel and Plug #4 are under grandfathered mining concessions of Lamaque. In addition, the tailings facility of Sigma is covered by a specific surface lease (Bloc 137 of Bourlamaque Township).
|
Permits
|
|
Triangle Mining Area:
All certificates of authorization (“CofA”) were received from the provincial MOE (“MELCC“) for the bulk sampling at Triangle. The last one, the second modification of this Bulk Sampling CofA, was received on October 10th, 2017. Following approval of the CofA’s the mining lease for the Triangle deposit was approved in early March 2018. The mining lease permits production from the Triangle deposit was the conclusion of the both recently received CofA and Relamation & Closure Plan of the Triangle Zone during Q1 of 2018.
Sigma Mill:
During 2018, applications for a number of CofA were be sent to the MELCC, among others:
●
the start-up of the mill as a Toll milling operation (received);
●
the Sigma pit paste fill plant (delayed); and
●
the deposition of paste tailings in the Sigma open pit (delayed).
The Closure and Reclamation Plan of the Sigma property (Or Integra QC Inc) was completed in Q3-2018 and sent to the MERN for approval. This five-year closure plan is valid from 2018 to 2023.
|
Royalties
|
|
An NSR (Net smelter return) of 2.0% is payable to Sandstorm Gold on gold production from Roc d'Or East Extension Property, which covers approximately 10% of the Measured and Indicated Resources at Triangle. 1% of this NSR can be bought for an amount of CDN $1M. For the remainder of the deposit, an NSR of 2.0% is payable to Osisko Royalties on gold production from Lamaque South Property. 1% can be bought out for an amount of CDN $2M. Please refer to “About the property” section below for more information.
|
•
|
Pursuant to the Lamaque Option Agreement, the Lamaque South Property is subject to a 2% NSR in favor of Osisko Gold Royalties of which half (1%) can be purchased by the Company for $2,000,000 at any time within one year of commercial production;
|
•
|
Pursuant to Roc d’Or East Extension Option Agreement, the Roc d’Or East Extension Property is subject to an NSR for the benefit of Sandstorm Gold of 2%, one-half of which (1%) may be purchased by the Company for $1,000,000;
|
•
|
Pursuant to the Donald Property Option Agreement, the Donald Property is subject to a 3% GMR (Gross Metal Royalty) in favor of Globex Mining Enterprises INC. of which one third (1%) can be purchased by the Company for $750,000 at any time on or before the date that is five years after the option exercise; and
|
•
|
Pursuant to the MacGregor Option Agreement, the MacGregor Property is subject to a 2% NSR, 0.6% of which is payable to Jean Robert, 0.6% of which is payable to Les Explorations Carat, and the remaining 0.8% to Albert Audet. One-half (1%) of this NSR may be purchased for $500,000
.
|
•
|
Automatic batch failure if the SRM result is greater than the round-robin limit of three standard deviations;
|
•
|
Automatic batch failure if two consecutive SRM results are greater than two standard deviations on the same side of the mean; and
|
•
|
Automatic batch failure if the field blank result is over 10 times the Au detection limit.
|
Key Parameters
|
2018 Technical Report
|
Production Data
|
|
Life of Mine
|
7 Years
|
Mine Throughput
|
up to 600,000 TPA
|
Metallurgical Recovery Gold
|
94.5%*
|
Average Annual Gold Production
|
117,000 Ounces
|
Total Gold Produced
|
854,000 Ounces
|
|
|
|
|
Total Operating Cost/ Ounce Au
|
$516/Ounce
|
Average All In Sustaining Costs
|
$717/Ounce
|
Capital Cost
|
|
Initial Investment Capital
|
Initial Capital requirement (to commercial production $122 M USD)
|
Economics @ $1,300 Au After Tax
|
|
Net Present Value After Tax @ 5%
|
$211 M
|
Internal Rate of Return After Tax
|
35%
|
Payback
|
3.3 years
|
Location
|
|
Halkidiki Peninsula, northern Greece
|
Ownership
|
|
Hellas Gold
95% shares issued to an indirectly owned subsidiary of Eldorado Gold
5% shares issued to Aktor Enterprises Limited (“Aktor”)
The co-ownership of Hellas Gold is governed by a shareholders’ agreement
|
Type of mine
|
|
Underground mine (Mavres Petres)
|
Metal
|
|
Lead, zinc, silver
|
In situ metals as of September 30, 2018*
|
|
Proven and probable mineral reserves: 581,000 tonnes at 161 g/t Ag, 6.2% Pb and 8.3% Zn. Contained metal is 3.007 Million ounces of Ag, 36,000 tonnes of Pb and 48,000 tonnes of Zn.
Measured and indicated mineral resources: 770,000 tonnes at 178 g/t Ag, 6.9% Pb and 9.3% Zn. Contained metal is 4.407 million ounces of Ag, 53,000 tonnes of Pb and 72,000 tonnes of Zn.
Inferred Resources: 1,120,000 tonnes at 153 g/t Ag, 6.1% Pb and 8.2% Zn. Contained metal is 5.509 million ounces of Ag, 68,000 tonnes of Pb and 92,000 tonnes of Zn.
Piavitsa, a satellite deposit to Stratoni, includes inferred mineral resources of 1.932 M ounces at 5.70 g/t Au, 19.156 M ounces at 57 g/t Ag.
|
Average annual production**
|
|
11,000 tonnes Pb, 15,000 tonnes Zn, 800,000 ounces Ag
|
Expected mine life**
|
|
3 years, based on current proven and probable mineral reserves
|
Workforce
|
|
442 (354 employees and 88 contractors)
|
Mining Concession
|
|
A number of mining concessions (4, 12, 15, 16, 17, 25, 29, 30, 33, 34, 35, 42, 44, 45) covering 118.8km
2
, granted until April 7, 2024 and can be extended twice for durations of 25 years each.
|
Permits
|
|
In July 2011, the MOE formally approved the EIS submitted by Hellas Gold for the three Kassandra Mines mine sites, being Olympias, Skouries and Stratoni, which involves an area of 26,400 ha, in northeastern Halkidiki (Macedonia Region). This EIS is valid for 10 years and subject to renewal in 2021
This EIS covers all environmental issues for the project.
|
Royalties and taxes
|
|
Based on current Greek legislation, royalties are applicable on active mining titles. The royalty is calculated on a sliding scale tied to metal prices in Euros. At $17 / oz Ag, $2,250 / tonne Pb and $2,500 / tonne Zn and an exchange rate of
€
1.2:US$1, Hellas Gold would pay a royalty of approximately 1.5% on Ag revenues, 1.0% on Pb revenues and 1.0% on Zn revenues.
The corporate income tax rate for Greek companies for 2018 was 29%. This is legislated to drop by 1% per annum until it reaches 25% in fiscal year 2022.
|
•
|
10,000-19,999 metres of drilling = $2.50/oz TUP;
|
•
|
20,000-29,999 exploration metres of drilling = $5.00/oz TUP; and
|
•
|
30,000+ exploration metres of drilling = $7.00/oz TUP.
|
Location
|
|
Pará State, Brazil
|
Ownership
|
|
100%
Through Brazauro a wholly owned subsidiary of Eldorado Gold
|
Type of mine
|
|
Open pit
|
Metal
|
|
Gold
|
In situ gold (as of September 30, 2018):*
|
|
Proven and probable mineral reserves: 39.6 million tonnes at 1.43 g/t Au for 1.824 M contained ounces.
Measured and indicated mineral resources: 48.7 million tonnes at 1.35 g/t Au for 2.115 million contained ounces.
Inferred mineral resources: 2.4 million tonnes at 0.90 g/t Au for 69,000 contained ounces.
|
Average annual production*
|
|
164,000 ounces
|
Expected mine life
|
|
10 years, based on current proven and probable mineral reserves
|
Workforce
|
|
84 (14 employees and 70 contractors)
|
1950
|
|
Gold is discovered in the Tapajos region.
|
1970-80
|
|
The gold rush began at Tocantinzinho and in the Tapajos region with garimpeiro activities.
|
1979
|
|
Mineracao Aurifera Ltda. acquired rights to explore for gold in Tocantinzinho.
|
1997
|
|
Altoro and Renison Goldfields formed a joint venture to conduct geological exploration in Tocantinzinho.
|
2003-08
|
|
Brazauro, a subsidiary of Jaguar Resources, acquired the Tocantinzinho properties and conducted a 97 hole, 25,600 meters of drilling campaign.
|
2008
|
|
Eldorado Gold signed an option agreement with Brazauro and together with Unamgen, a wholly owned subsidiary of Eldorado Gold, carried out a 62 hole 19,431m drilling program.
|
2010
|
|
Eldorado Gold acquired Brazauro and the Tocantinzinho project.
|
2012
|
|
Eldorado Gold announced the prefeasibility study and reserves of 1.97M ounces of gold at Tocantinzinho.
Eldorado Gold is granted the Preliminary Environment License for the Tocantinzinho project.
|
2015
|
|
Eldorado Gold announced a positive feasibility study on the Tocantinzinho project.
|
2016
|
|
A decision to commence construction at Tocantinzinho has been deferred until all permits are in place. Federal Government issued Provisional Measure PM-758 on December 20, 2016 implementing changes to the Jamanxim National Park increasing the area by 51,135ha. The Tocantinzinho Project was outside of the Park, but inside the 3km buffer zone resulting in restrictions for implementation of a mine.
|
2017
|
|
The Congress voted on an alteration of MP 758 in March 2017 to eliminate the extension of the National Park. It resulted in a Conversion Bill (MP 758 with new text), suppressing articles 4 and 5 which were negatively affecting the Tocantinzinho Project. On June 19, the President approved the Convention Bill, resulting in Law 13452/17, eliminating definitively the risk for the Tocantinzinho Project.
Negotiations with landowners and garimpeiros (alluvial miners) from the construction area was successfully conducted in 2017. The land documentation was regularized in the INCRA – National Institute of Colonization and Agrarian Reform in Brazauro’s favor. However, a few garimpeiros and squatters still refused to leave the area.
|
2018
|
|
On May 17th, the Ministry of Mines and Energy published decrees 87/SGM/850.300/03 and 88/SGM/850.706/79 granting to Brazauro the mining concessions in the Tocantinzinho gold deposit, State of Para. The decrees confirm the Mineral Rights to Brazauro/Eldorado and authorize the exploration and mining activities and commercial gold production.
|
2019
|
|
A new agreement was concluded in January 2019 for the removal of four squatters and one garimpeiro from the project's construction area. Five others refused to leave the area and filed a lawsuit complaining additional compensation despite the fact that they have been already indemnified. The case is pending a court decision.
|
Mining Concessions
|
|
In 2012, Tocantinzinho was granted its Preliminary Environmental License (PEL) number 1218/2012 by SEMAS Environmental Agency and by COEMA Environmental Council of Para State. It was granted after affirmative public hearings held with the local community and the recommendation of the EIA was received from the technical and legal sections of SEMAS agency.
On April 19, 2017, before the expiration date of the PEL, the Installation License (LI) No 2720/17 and the Forest Suppression Authorization (FSA) No 3383/17 for the Tocantinzinho project were granted by SEMAS Environmental Agency of Para State. The LI and FSA authorize immediate deforestation and project construction. The validity of the LI and FSA is 3 years, expiring by April 2020.
On November 20
th
, 2017, the Installation License number 2796/17 was granted by SEMAS authorizing the construction of flotation tailings dam and CIP tailings pond structures. It will expire on Nov. 20
th,
2020.
On December 28
th
, 2017, the Authorization for Deforestation number FSA 3642/17 and the (LI) Installation License number 2797/17 were granted by SEMAS permitting the construction of 200km 138kV Electrical Transmission Line to transport 18MW power to the Tocantinzinho Project Site. This Installation License will expire on Dec. 27th 2020.
On August 19
th
, 2018 the Installation License to upgrade the Municipal Road to access the Tocantinzinho Project was granted. The license will expire in August 2020.
|
Permits
|
|
The Tocantinzinho deposit comprises two exploration permits numbered #850.706/1979 and #850.300/2003. Both permits were applied for at the National Department of Mineral Production (DNPM) in 2011 and approved in 2012. The permits cover an area of 12,888.85ha.
On July 19, 2013, Brazauro presented to DNPM the Economic Exploitation Plan of Tocantinzinho in order to apply for the Mining Concession and Easement Concession.
The Mining Concession application was submitted to DNPM on April 27, 2017 with the presentation of the Installation License.
O
n May 17, 2018, the Ministry of Mines and Energy published the decrees numbers 87/SGM and 88/SGM granting to Brazauro the concession for mining and commercial production for gold in the Itaituba Municipality, State of Para in the areas corresponding to the processes 850.300/2003 and 850.706/1979.
The Mining Concession confirms the Mineral Rights to Brazauro by the Brazilian government and authorizes continuing exploration, pre-stripping, mining activities and commercial production for gold.
|
Royalties
|
|
Based on current Brazilian legislation, a royalty of 1.0% on net revenues is payable to the Brazilian government. However, on August 25, 2017 the Federal Government issued the Provisional Measure PM 789/2017 increasing the royalty to 1.5% on gross revenue. The PM 789 was sanctioned by the Brazilian President, publishing the Law 13540/2017 of December 18th, 2017.
A contractual royalty of 3.5% on Au produced is payable to Sailfish Royalty Corp. Eldorado retains the right to buy-back an undivided 2% of the royalty for $5.5 million upon a positive construction decision.
|
Project Data
|
2016 Optimization Results
|
Production Data
|
|
Life of Mine
|
10 Years
|
Mine Throughput
|
4,300,000 TPA
|
Metallurgical Recovery Gold
|
90.1%
|
Average Annual Gold Production
|
170,000 Ounces
|
Total Gold Produced
|
1,665,000 Ounces
|
Operating Costs/ Tonne Ore
|
|
Total Operating Cost/Tonne Ore
|
$21.91/Tonne
|
Cash Operating Costs
|
$535/Ounce cash cost
|
Capital Cost
|
|
Initial Investment Capital
|
$463.8M
|
Economics @ $1,300 Au After Tax
|
|
Net Present Value After Tax @ 5%
|
$317M
|
Internal Rate of Return After Tax
|
17%
|
Location
|
|
Apuseni Mountains, Transylvania, Western Romania
|
Ownership
|
|
Deva Gold
80.5% shares issued to an indirectly owned subsidiary of Eldorado Gold
19.25% shares issued to Minvest S.A.
0.25% shares issued to a minority shareholder
The co-ownership of Deva Gold is governed by the Articles of Association and the Incorporating Contract.
|
Type of mine
|
|
Open pit
|
Metal
|
|
Gold, silver
|
In situ metal as of September 30, 2018*
|
|
Proven and probable mineral reserves: 44.3 M tonnes at 1.69 g/t Au and 11 g/t Ag for contained metal of 2.402 M ounces Au and 15.555 M ounces Ag.
Measured and indicated mineral resources: 90 M tonnes of 1.40 g/t Au and 9 g/t Ag for contained metal of 4.064 M ounces Au and 25.601 M ounces Ag.
Inferred mineral resources: 12.2 M tonnes at 0.96 g/t Au and 3 g/t Ag for 0.376 M ounces Au and 1.364 M ounces Ag.
|
Average annual production**
|
|
140,000 ounces Au and 830,000 ounces Ag
|
Expected mine life**
|
|
15 years, based on proven and probable mineral reserves
|
Workforce
|
|
250 employees (186 employees and 64 contractors)
|
Historic times
|
|
Gold mining at Certej dates back to the 18th century.
|
Pre-1970
|
|
Small-scale ad-hoc mining around Certej.
|
1970
|
|
Government mining Company Minvest commenced mining of Bocsa base metal deposit 1km east of Certej.
|
1983
|
|
Minvest-owned Certej mine took over the Baiaga-Hondol deposit, (the Central and West part of Certej), and exploration and pre-stripping work on the deposit continued.
|
2000
|
|
European Goldfields (through their 80%-owned subsidiary Deva Gold) acquired a stake in the Certej concession.
|
2002
|
|
Two years of surface and underground channel sampling and RC and diamond drilling culminated in an independent estimate of mineral resources by consultants RSG Global.
|
2006
|
|
Minvest closed its mining and processing operations at the Coranda open pit and the Certej village.
|
2007
|
|
Detailed technical and economic studies on Certej were submitted in March 2007
|
2012
|
|
Eldorado Gold acquired the Certej project via the indirect acquisition of Deva Gold, through the acquisition of European Goldfields; 9,700m of drilling were completed resulting in an increase in mineral resources by 1.57M ounces to 4.30M ounces.
|
2014
|
|
A prefeasibility study for the Certej project was released in April 2014 defining an economically feasible open pit mining operation utilizing flotation, pressure oxidation and cyanide leaching to recover gold and silver from the deposit. The study also defined the infrastructure required to sustain the operation over the estimated 15 years of operation at a throughput of 3.0Mtpa.
|
2015
|
|
Eldorado Gold released a feasibility study for the Certej project in May 2015. Results of the study confirmed the positive prefeasibility study issued in 2014. Conventional open pit mining will be used in conjunction with flotation, pressure oxidation and cyanide leach to produce gold/silver doré on-site. The production rate remains at 3.0Mtpa resulting in a 15-year LOM including treatment of low-grade stockpiles at the end of mine life.
|
2016
|
|
Eldorado Gold continued the metallurgical and environmental testwork required to support a change in permitting to allow the use of pressure oxidation instead of the permitted Albion process.
|
2017
|
|
Work continued with a focus on engineering, site optimizations, geotech works and construction of the offsite infrastructure (water line, power line, water tanks).
|
2018
|
|
Work continued on exploration on Bolcana, Varmaga limestone license and off site infrastructure. Engineering has also continued on the Certej project.
|
Mining Concessions
|
|
Deva Gold currently owns the Certej exploitation concession along with an exploitation license for the Baita-Craciunesti area and exploration licenses for Certej Nord and Troita – Pitigus and Varmaga. The Certej exploitation license covers 26.7km
2
and was granted for a period of 20 years with the possibility of extension for periods of 5 years commencing on the day the concession was gazetted on January 25, 2000. Deva Gold is in the process of acquiring land to accommodate surface infrastructure for the mine and provide reforestation areas as required by applicable legislation.
European Goldfields Deva SRL, an indirect wholly owned subsidiary of Eldorado Gold, holds the following licences:
●
Saliste - Hondol limestone exploitation license (7.4km
2
); and
●
Brad exploration license (72.4km
2
).
|
Permits
|
|
In March 2007, Deva Gold submitted a technical feasibility study (TFS) to the National Agency for Mineral Resources in support of a permit application to develop Certej. The TFS was approved in July 2008 and the reserve was registered.
On July 5, 2012, the Environmental Permit for Certej was approved by the Timisoara Department of Environment. This permit allows the project to move forward with applications for forestry permits and to apply for a construction permit.
Amendments to the EIA covering site modifications were approved in 2013. In November 2013, the revised EIA was approved by the environmental authorities in order to incorporate the changes in design of the project.
Additional environmental and construction permits for quarrying and construction of offsite infrastructure were received in 2014, 2015 and 2016. Also received were the construction permits for the site establishment area of the project.
|
Royalties and Taxes
|
|
Based on current Romanian legislation, we will be required to pay a royalty of 6.0% on production of Au and Ag to the Romanian Government.
The corporate income tax rate for Romanian companies is currently 16%.
|
Location
|
|
Apuseni Mountains, Transylvania, Western Romania
|
Ownership
|
|
Deva Gold
80.5% shares issued to an indirectly owned subsidiary of Eldorado Gold
19.25% shares issued to Minvest S.A.
0.25% shares issued to a minority shareholder
The co-ownership of Deva Gold is governed by the Articles of Association and the Incorporating Contract.
|
Type of mine
|
|
Open pit / underground
|
Metal
|
|
Gold, Copper, Silver
|
In situ metal as of September 30, 2018
|
|
Maiden Inferred Resource at Bolcana in Romania of 381 million tonnes at 0.53 grams per tonne gold and 0.18% copper, containing 6.492 million ounces of gold and 686,000 tonnes of copper
|
Workforce
|
|
0
|
Historic times
|
|
Gold mining in the Bolcana area dates back to the 18th century, on the adjacent epithermal veins (Troita).
|
1970
|
|
Romanian state started regional porphyry exploration program that include 22 surface holes at Bolcana, some over 1 km deep.
|
1980
|
|
Minexfor (State-owned regional exploration company) commenced delineation work that included underground and resource delineation drilling on the shallow part of the Bolcana system.
|
2000
|
|
European Goldfields (through their 80%-owned subsidiary Deva Gold) commenced exploration work at Bolcana and Troita
|
2002-2004
|
|
Deva Gold completed extensive surface and underground channel sampling and limited RC and diamond drilling mainly targeting the epithermal veins adjacent to and overlapping the porphyry system.
|
2012
|
|
Eldorado Gold acquired the nearby Certej project via the indirect acquisition of Deva Gold, through the acquisition of European Goldfields.
|
2014
|
|
Deva Gold won tender for the north part of the Bolcana camp (Certej North EL), over a pre-existing prospecting permit.
|
2016
|
|
Deva Gold won tender for the central part of the Bolcana camp (Troita Pitigus EL).
|
2017-2018
|
|
Over 62,000 meters exploration drilling at Bolcana delineated a significant gold-copper porphyry system.
|
Mining Concessions
|
|
Deva Gold currently owns the Certej exploitation concession (adjacent to Bolcana to east) along with an exploitation license for the Baita-Craciunesti area and exploration licenses for Certej Nord and Troita - Pitigus.
|
Royalties and Taxes
|
|
Based on current Romanian legislation, a royalty of 6.0% is payable on production of Au and 4 % for Cu.
The corporate income tax rate for Romanian companies is currently 16%.
|
Location
|
|
Thrace region, northern Greece
|
Ownership
|
|
100%,
through Thracean, an indirect wholly owned subsidiary of Eldorado Gold
|
Type of mine
|
|
Open pit
|
Metal
|
|
Gold, silver
|
In situ metals as of September 30, 2018*
|
|
Proven and probable mineral reserves: 9.7 M tonnes at 3.13 g/t Au and 4 g/t Ag for contained metal of 0.975 M ounces Au and 1.151 M ounces of Ag.
Measured and indicated mineral resources: 12.4 M tonnes at 3.46 g/t Au and 8 g/t Ag for contained metal of 1.382 M ounces Au and 3.168 M ounces Ag.
Inferred mineral resources: 8.8 M tonnes at 1.96 g/t Au and 7 g/t Ag for contained metal of 0.554 M ounces Au and 1.860 M ounces Ag.
|
Average annual production**
|
|
110,000 ounces Au and 86,000 Ag
|
Expected mine life**
|
|
8 years, based on proven and probable mineral reserves
|
Production
|
|
Placed on care and maintenance in January 2016
|
Workforce
|
|
42 employees.
Planned workforce for operations: 300
|
Mining Concessions
|
|
Two mining titles cover 1,897.5 hectares. The mining titles 54 (996.2 hectares) & 55 (901.3 hectares) were granted to TGM by a Presidential Decree published in the Greek Government Gazette 2182/1999. These were issued in December 1999, expire December 2049 and can be extended for another 25 years.
|
Exploration
|
|
The two mining titles have effectively superseded the mining exploration licenses we had already obtained.
|
Permits
|
|
We need the following permits:
●
Preliminary Environmental Impact Assessment (PEIA): we received approval of the PEIA in 2012;
●
Perama Hill EIA application was submitted to the MOE in the second quarter of 2012;
●
Mine operation license; and
●
Construction and operation licenses.
|
Royalties and taxes
|
|
Based on current Greek tax legislation, royalties are applicable on active mining titles. The royalty is calculated on a sliding scale tied to metal prices in Euros. At Eldorado’s 2019 budgeted gold and silver prices ($1,275 / oz gold and $17 / oz silver) Perama Hill would pay a royalty of approximately 1.5% on gold revenues and 1.5% on silver revenues. The inactive mine fee is 18,975 € / year.
The corporate income tax rate for Greek companies for 2018 was 29%. This is legislated to drop by 1% per annum until it reaches 25% in fiscal year 2022.
|
•
|
the crushing and grinding circuit will produce a product with 80% passing 75 µm (microns);
|
•
|
this will be thickened in a high-rate thickener before pre-aeration, and then leached to recover the gold;
|
•
|
carbon would be removed and the gold extracted by a split stream Anglo American Research Laboratories elution process;
|
•
|
the tailings would be detoxified using the INCO process; and
|
•
|
after detoxification, the tailings from the processing facility would be thickened and then filtered to remove any excess water. This material would be transported by truck and conveyor to be placed in a lined tailings storage facility.
|
•
|
average production: 1.20 million tonnes of ore per year, plus 350,000 tonnes of waste and low-grade mineralized oxide, less than cut-off grade material, to be stockpiled;
|
•
|
average gold doré production: 104,000 ounces per year;
|
•
|
expected cash operating cost: $288 per ounce; and
|
•
|
capital costs: $240 million (including sustaining capital).
|
Location
|
|
Thrace region, northern Greece
|
Ownership
|
|
100%
Thrace Minerals, a wholly-owned indirect subsidiary of Eldorado Gold
|
Type of mine
|
|
Open pit & underground
|
Metal
|
|
Gold, with some silver and copper
|
In situ metals as of September 30, 2018*
|
|
Measured and indicated mineral resources: 2.4 M tonnes at 6.08 g/t Au for 0.474 M ounces Au;
Inferred mineral resources: 1.01 M tonnes at 10.65 g/t Au for contained metal of 0.346 M ounces.
|
Average annual production
|
|
To be determined
|
Expected mine life
|
|
To be determined
|
Production
|
|
To be determined: placed on care and maintenance in January 2016
|
Workforce
|
|
9 (9 employees and 0 contractors)
|
Mining Concessions
|
|
Sapes Mine Lease Contract No 850/1993 (the Lease) signed with the Ministry of Development in the Greek Government in 1993, for a five-year period. This lease has now been renewed for five more five-year periods and will expire in 2023. There is currently no provision to extend the license past the five 5-year extensions. The Lease covers an area of 20.11 km
2
. Technically, if work is not completed in compliance with the regulations, the Company may lose the license as we are in default of the license conditions because of the delay in permitting.
Three adjacent exploration license applications are pending.
|
Permits
|
|
The PEIA was approved on July 13, 2012 by the MOE. Following receipt of that document, Sapes filed the full EIA with the MOE for the project on December 12, 2012.
Applications for drill permits have been completed over 2016 and 2017. To date, Hellas Gold have not received any permits to complete drilling over the Sapes property.
|
Royalties and taxes
|
|
Based on current Greek legislation, royalties are applicable on active mining titles. The royalty is calculated on a sliding scale tied to metal prices. At $1,275 / oz Au, Thrace Minerals would pay a royalty of approximately 2.0 % on Au revenues.
The corporate income tax rate for Greek companies for 2018 was 29%. This is legislated to drop by 1% per annum until it reaches 25% in fiscal year 2022.
|
Metal
|
Price
|
Relevant Properties
|
Gold
|
$1,200/oz
|
Efemçukuru, Kişladağ, Lamaque, Perama, Skouries, Olympias, Certej, Tocantinzinho
|
Silver*
|
$16.00/oz
|
Certej, Olympias
|
Copper
|
$2.50/lb
|
Skouries
|
Lead
|
$1,800/t / $2,250/t
|
Olympias / Stratoni
|
Zinc
|
$2,000/t / $2,500/t
|
Olympias / Stratoni
|
Gold
|
Mineral Reserves
Dec. 31, 2017
|
Mined and Processed
in January to September, 2018
|
Other Changes in
January to September, 2018
|
Mineral Reserves
September 30, 2018
|
||||||||||||||||||||
|
tonnes (000)
|
grade
g/t
|
oz
(000)
|
tonnes (000)
|
grade
g/t
|
oz
(000)
|
tonnes (000)
|
grade
g/t
|
oz
(000)
|
tonnes (000)
|
grade
g/t
|
oz
(000)
|
||||||||||||
Kişladağ
|
118,560
|
|
0.82
|
|
3,134
|
|
3,206
|
|
1.13
|
|
116
|
|
393
|
|
(0.32
|
)
|
(4
|
)
|
115,747
|
|
0.81
|
|
3,014
|
|
Lamaque
|
3,809
|
|
7.30
|
|
893
|
|
90
|
|
6.63
|
|
19
|
|
368
|
|
6.68
|
|
79
|
|
4,087
|
|
7.25
|
|
953
|
|
Efemçukuru
|
4,052
|
|
6.73
|
|
877
|
|
371
|
|
6.84
|
|
82
|
|
700
|
|
3.60
|
|
81
|
|
4,381
|
|
6.22
|
|
876
|
|
Olympias
|
14,732
|
|
7.28
|
|
3,447
|
|
261
|
|
7.94
|
|
67
|
|
(1,108
|
)
|
7.30
|
|
(260
|
)
|
13,363
|
|
7.26
|
|
3,120
|
|
Ag-Pb-Zn
|
Mineral Reserves
Dec. 31, 2017
|
Mined and Processed
in January to September, 2018
|
Other Changes in
January to September, 2018 |
Mineral Reserves
September 30, 2018
|
||||||||||||
|
tonnes
(000) |
Ag g/t
|
Pb
%
|
Zn
%
|
tonnes
(000)
|
Ag
g/t
|
Pb
%
|
Zn
%
|
tonnes (000)
|
Ag g/t
|
Pb
%
|
Zn
%
|
tonnes (000)
|
Ag g/t
|
Pb
%
|
Zn
%
|
Olympias
|
14,732
|
116
|
3.9
|
5.3
|
261
|
87
|
2.8
|
3.7
|
(1,108)
|
38
|
0.5
|
3.3
|
13,363
|
123
|
4.2
|
5.5
|
Stratoni
|
497
|
178
|
7.0
|
8.4
|
111
|
175
|
6.7
|
9.4
|
195
|
126
|
4.4
|
8.7
|
581
|
161
|
6.2
|
8.3
|
•
|
used 3D models: lithology models, alteration model, and mineralized ore grade shapes;
|
•
|
3D mineralized envelopes, or shells, based on initial outlines derived using Probability Assisted Constrained Kriging (PACK), constrained gold grade interpolation;
|
•
|
used a threshold value of 0.20 g/t Au;
|
•
|
assays were composited into 5m downhole composites;
|
•
|
data analyses demonstrated that the lithologic units within the gold mineralized shell should be treated as separate domains;
|
•
|
grades for blocks estimated with a hard boundary between them;
|
•
|
distributions do not indicate a problem with extreme gold grades for gold;
|
•
|
grades were interpreted by ordinary kriging using a two-pass approach: the first pass required values from a minimum of two holes to interpolate a model grade value; and
|
•
|
the model was validated by visual inspection, checks for bias and for appropriate grade smoothing.
|
•
|
open pit;
|
•
|
designed using MineSight software based on a 10m bench height with double benching for most pit walls;
|
•
|
design based on an optimization using MineSight Economic Planner software;
|
•
|
berm width, face angle and bench stack heights vary by sector and rock quality with range of overall pit slope angles lying between 41 and 44 degrees;
|
•
|
block model contains expected dilution; and
|
•
|
the pit will extend down to a bottom elevation of 570m above mean sea level.
|
•
|
create mineralized or grade shapes using new data from the infill drill program and revised structural interpretations of the Kestane Beleni Vein system;
|
•
|
3D shapes based on approximately a 1.0 g/t Au grade threshold and general vein geometry;
|
•
|
threshold value was chosen by inspection of statistical charts, and further supported by indicator variography. Areas of narrow or absent above threshold mineralization were included by using a minimum 2m interval rule;
|
•
|
extreme grades were examined for gold mainly by histogram and cumulative distribution plots;
|
•
|
very high grade outlier assays in the south and middle ore shoots were given a high end cap grade of 70 g/t Au. A 35 g/t Au limit was imposed on north ore shoot assays;
|
•
|
assays were composited into 1m downhole composites;
|
•
|
grades were interpolated by ordinary kriging using a two-pass approach: the first pass required values from at least two holes to interpolate a model grade value; and
|
•
|
the model was validated by visual inspection, checks for bias and for appropriate grade smoothing.
|
•
|
underground with ramp access;
|
•
|
primary stoping methods: drift and fill, and long hole;
|
•
|
mine plan will extract 96% of the ore with 27% waste dilution;
|
•
|
minimum mining widths: 1.5m for long hole stopes; 4.0m for drift and fill stopes;
|
•
|
level spacing is 5m for drift and fill; 20m for long hole;
|
•
|
spiral footwall ramps in each of the middle and south ore shoots provide access;
|
•
|
ore is hauled by truck to a central ore pass system above the underground crusher before being taken to the surface by conveyor; and
|
•
|
paste backfill is used to fill mined areas.
|
•
|
3D mineralized envelopes, or shells, based on initial outlines derived using Probability Assisted Constrained Kriging (PACK), constrained the gold and copper grade interpolations;
|
•
|
threshold grades were 0.10 g/t gold and 0.10% copper;
|
•
|
Assays composited into 4m downhole composites;
|
•
|
Cap grades of 6% and 20 g/t were applied to copper and gold assay data, respectively, to reduce the influence of extreme grades on the model;
|
•
|
Copper and gold grades were interpolated by ordinary kriging using a two-pass approach: the first pass required values from at least two holes to interpolate a model grade value; and
|
•
|
the model was validated by visual inspection, checks for bias and for appropriate grade smoothing.
|
•
|
open pit and underground;
|
•
|
pit designed based on nominal 10m high benches with drilling and blasting done on 10 meter benches
|
•
|
pit design based on an optimization using MineSight software;
|
•
|
pit will be circular in shape, with the highest pit wall approximately 250m in height. Pit floor elevation is at 470m elevation;
|
•
|
pit slope angles vary from 40 and 44 degrees;
|
•
|
underground mining will be sublevel open stoping with ramp access and a production shaft;
|
•
|
average stope will be 15m wide by 65m high by 30m long;
|
•
|
stopes will be backfilled with pastefill; and
|
•
|
5% dilution and 5% ore loss is assumed for underground production whereas open pit production assumes no dilution (contained in block model) and no ore loss.
|
•
|
the mineralization is captured using a value of NSR ($50);
|
•
|
assays composited into 1m downhole composites;
|
•
|
gold, silver, lead, and zinc, grades were interpolated by ordinary kriging;
|
•
|
grades for blocks within the respective domains were estimated with a hard boundary between them; and
|
•
|
the model was validated by visual inspection, checks for bias and for appropriate grade smoothing.
|
•
|
underground with ramp access;
|
•
|
primary stoping method is drift and fill;
|
•
|
stope development heading size will be 5m by 5m;
|
•
|
mine plan will extract 95% of the ore with 20% to 37% waste dilution;
|
•
|
level spacing is 20m with heading size being 5m by 5m;
|
•
|
ore is hauled by truck to surface; and
|
•
|
cemented aggregate and paste backfill is used to fill mined areas.
|
•
|
gold mineralization occurs within moderately to steeply dipping main shear zones and associated more moderately dipping splay zones. Resource solids, created using ~2.5 g.t as guiding grade, demarcated the mineralized areas in each of the main and splay zones;
|
•
|
extreme grades were mitigated by implementation of a 80 g/t cap grade;
|
•
|
assays were composited into 1m downhole composites;
|
•
|
grades were interpolated by ordinary kriging (Main zones) and Inverse Distance Weighting (Splays) using a two-pass approach: the first pass required values from at least two holes to interpolate a model grade value; and
|
•
|
the model was validated by visual inspection, checks for bias and for appropriate grade smoothing.
|
•
|
underground with ramp access;
|
•
|
primary stoping method: long -hole;
|
•
|
mine plan will extract 95% of the ore with 27% waste dilution;
|
•
|
minimum mining width is 2.0m;
|
•
|
level spacing is currently 20m but is being increased to 25m;
|
•
|
ore is hauled by truck to surface; and
|
•
|
cemented waste rock is used to fill mined areas
.
|
•
|
3D mineralized envelopes, or shells, based on initial outlines derived using Probability Assisted Constrained Kriging (PACK), constrained within newly interpreted 3D ore zone lithology models;
|
•
|
threshold grade was 0.30 g/t gold;
|
•
|
assays composited into 4m downhole composites;
|
•
|
a 25 g/t cap grade was applied to reduce the influence of extreme gold grades on the model, resulting in about a 2% reduction in gold metal content;
|
•
|
gold grades were interpolated by ordinary kriging using a two-pass approach: the first pass required values from at least two holes to interpolate a model grade value; and
|
•
|
the model was validated by visual inspection, checks for bias and for appropriate grade smoothing.
|
•
|
Open pit;
|
•
|
3-phase pit sequence was designed based on optimized pit shells based on results of optimization using MineSight software;
|
•
|
mining selectivity based on 10x10m blocks in plan and a 5m face;
|
•
|
inter-ramp slope angles varied per sector and rock type - values range from 36 to 49 degrees;
|
•
|
no ore loss or dilution was applied (block model contains expected dilution); and
|
•
|
the final pit will reach -190m below sea level.
|
•
|
made 3D geologic models for key features;
|
•
|
gold oxide mineralization was defined by a grade shell using a 0.6 g/t Au cut-off grade, which preserves the mineralization continuity and includes all potentially economic mineralization;
|
•
|
a cap grade of 30 g/t Au was applied to assay data before compositing;
|
•
|
assays composited into 2m downhole composites;
|
•
|
gold grades were interpolated by ordinary kriging;
|
•
|
silver grades were interpolated by inverse distance squared;
|
•
|
the model was validated by visual inspection and checks for bias; and
|
•
|
a separate mineral resource estimate on the nearby Perama South deposit was classified entirely as inferred mineral resources, using polygonal methods.
|
•
|
open pit;
|
•
|
designed using Gemcom software based on a 5m bench height with double benching for most pit walls;
|
•
|
design was based on an optimization using Whittle software;
|
•
|
pit extends from the top of Perama Hill (at 248m), to the pit floor (at 125m);
|
•
|
the pit design is derived using an overall slope angle in the range of 32 to 37.5 degrees; and
|
•
|
the pit shell is designed to exclude any material within 500m of Perama village.
|
•
|
incorporated data from 360 diamond drill holes, 192 RC holes and 330 underground channel samples plus data from 123 newer diamond drill holes drilled in 2013;
|
•
|
3D mineralized envelopes, or shells, based on initial outlines derived using Probability Assisted Constrained Kriging (PACK), constrained gold grade interpolation;
|
•
|
Used a threshold gold grade of 0.20 g/t;
|
•
|
Assays composited into 3m downhole composites;
|
•
|
a 70 g/t cap grade was applied to assay data to reduce the influence of extreme gold grades on the model whereas a 600 g/t cap grade was implemented for Ag;
|
•
|
gold and silver grades were interpolated by ordinary kriging using a two-pass approach: the first pass required values from at least two holes to interpolate a model grade value; and
|
•
|
the model was validated by visual inspection, checks for bias and for appropriate grade smoothing.
|
•
|
open pit;
|
•
|
designed using MineSight software based on a 5m bench height;
|
•
|
pit slopes vary by sector and lithology with inter-ramp angles ranging from 29° in overburden to 49° in andesite;
|
•
|
block model contains expected dilution; and
|
•
|
the pit will extend down to a bottom elevation of 340m above mean sea level.
|
•
|
3D models based on interpreted geology;
|
•
|
assays were composited into 2m composites;
|
•
|
Ag, Pb and Zn were interpolated by kriging methods using a two-pass approach with the first pass emulating a multiple hole approach; and
|
•
|
the model was validated by visual inspection and reconciliation to production.
|
•
|
underground with ramp access;
|
•
|
method is longitudinal or transverse drift and fill;
|
•
|
stope development heading size are 4m by 4m and 5m by 5m;
|
•
|
stope design incorporates 10% dilution and 5% ore loss; and
|
•
|
cemented hydraulic back fill is used in mined areas.
|
•
|
Business Environment Risks;
|
•
|
Operational Risks; and
|
•
|
Financial Risks.
|
•
|
changing political conditions, geopolitical environment or governments;
|
•
|
expropriation;
|
•
|
timely receipt of necessary permits and authorizations;
|
•
|
renegotiation or nullification of existing rights, concessions, licenses, permits and contracts;
|
•
|
restrictions on foreign exchange, currency controls and repatriation of capital and profits;
|
•
|
mobility restrictions for personnel and contractors;
|
•
|
availability of procedural rights and remedies;
|
•
|
reliability of judicial recourse;
|
•
|
operation of the rule of law;
|
•
|
labour unrest;
|
•
|
extreme fluctuations in currency exchange rates;
|
•
|
high rates of inflation;
|
•
|
civil unrest or risk of civil war;
|
•
|
changes in law or regulation (including in respect of taxation and royalties);
|
•
|
changes in policies (including in respect of monetary and permitting);
|
•
|
terrorism;
|
•
|
activism;
|
•
|
hostage taking;
|
•
|
military repression; and
|
•
|
illegal mining.
|
•
|
the environment, including land and water use;
|
•
|
the right to conduct our business, including limitations on our rights in jurisdictions where we are considered a foreign entity and restrictions on inbound investment;
|
•
|
prospecting and exploration rights and methods;
|
•
|
development activities;
|
•
|
construction;
|
•
|
mineral production;
|
•
|
reclamation;
|
•
|
royalties, taxes, fees and imposts;
|
•
|
importation of goods;
|
•
|
currency exchange restrictions;
|
•
|
sales of our products;
|
•
|
repatriation of profits and return of capital;
|
•
|
immigration (including entry visas and employment of our personnel;
|
•
|
labour standards and occupational health;
|
•
|
mine safety;
|
•
|
use of toxic substances;
|
•
|
mineral title, mineral tenure and competing land claims; and
|
•
|
impacts on and participation rights of local communities and entities.
|
•
|
laws regarding government ownership of or participation in projects;
|
•
|
laws regarding permitted foreign investments;
|
•
|
royalties, taxes, fees and imposts;
|
•
|
regulation of, or restrictions on, importation of goods and movement of personnel;
|
•
|
regulation of, or restrictions on, currency transactions; and
|
•
|
regulation of, or restrictions on, sales of our products,
|
•
|
or other laws generally applicable in such country, or changes to the ways in which any of these laws are applied, could have a material adverse effect on our business, results of operations, financial condition and the Eldorado Gold share price.
|
a.
|
Mineral Tenure
|
b.
|
Permits
|
•
|
conduct business in such countries;
|
•
|
import or export goods and materials;
|
•
|
employ foreign personnel in-country;
|
•
|
entry and exit the country;
|
•
|
employ local, regional and national residents and contractors;
|
•
|
import or otherwise obtain, store and use regulated materials, such as explosives and cyanide;
|
•
|
construct or obtain rights of way for fences, buildings, equipment, underground workings, tailings dams, water courses and power lines;
|
•
|
cut down trees;
|
•
|
operate equipment;
|
•
|
conduct development, mining, processing and reclamation activities; and
|
•
|
sell mineral products.
|
a.
|
Climate Change
|
b.
|
Health effects
|
c.
|
Social Effects
|
•
|
we have been or will be at all times in complete compliance with such laws, regulations and permitting requirements, or with any new or amended laws, regulations and permitting requirements that may be imposed from time to time;
|
•
|
our compliance will not be challenged; or
|
•
|
the costs of compliance will be economic and will not materially or adversely affect our future cash flow, results of operations and financial condition.
|
•
|
monetary penalties (including fines);
|
•
|
restrictions on or suspension of our activities;
|
•
|
loss of our rights, permits and property, including loss of our ability to operate in that country or generally;
|
•
|
completion of extensive remedial cleanup or paying for government or third-party remedial cleanup;
|
•
|
premature reclamation of our operating sites; and
|
•
|
seizure of funds or forfeiture of bonds.
|
a.
|
Infrastructure
|
•
|
construction schedule;
|
•
|
capital and operating costs;
|
•
|
manpower availability;
|
•
|
mobilization of equipment, machinery and inventory; and
|
•
|
throughput rates and production volumes.
|
b.
|
Power and Water
|
•
|
global and regional supply and demand;
|
•
|
political and economic conditions;
|
•
|
problems affecting local supplies;
|
•
|
infrastructure and delivery issues; and
|
•
|
relevant regulatory regimes.
|
c.
|
Commodities and Consumables
|
•
|
negotiating agreements with suppliers and contractors on acceptable terms;
|
•
|
the inability to replace a supplier or contractor and its equipment, raw materials or services if either party terminates the agreement;
|
•
|
interruption of operations or increased costs if a supplier or contractor ceases its business due to insolvency or other unforeseen events; and
|
•
|
failure of a supplier or contractor to perform as contracted.
|
•
|
actual production experience;
|
•
|
our ability to continue to own and operate our mines and property;
|
•
|
fluctuations in the market price of gold;
|
•
|
results of drilling or metallurgical testing;
|
•
|
production costs; and
|
•
|
recovery rates.
|
•
|
our mining operations;
|
•
|
our ability to conduct successful exploration efforts; and
|
•
|
our ability to develop new projects and make acquisitions.
|
•
|
actual ore mined varying from estimates in grade, tonnage and metallurgical and other characteristics;
|
•
|
ground conditions including, but not limited to, pit wall failures, cave-ins, flooding, fire and rock bursts;
|
•
|
industrial accidents and environmental incidents;
|
•
|
changes in power costs and potential power shortages;
|
•
|
imposition of a moratorium on our operations;
|
•
|
impact of the disposition of mineral assets;
|
•
|
shortages and timing delays, of principal supplies needed for operation, including explosives, fuels, chemical reagents, water, equipment parts and lubricants;
|
•
|
renewal of required permits and licenses
|
•
|
litigation;
|
•
|
shipping interruptions or delays; and
|
•
|
unplanned maintenance.
|
•
|
ground conditions:
|
◦
|
geotechnical conditions;
|
◦
|
pit slope angles; and
|
▪
|
rock characteristics (faults, fractured zones, angle of shear)
|
◦
|
hydrogeological conditions;
|
▪
|
water in rock
|
▪
|
ground water table.
|
•
|
geological conditions:
|
◦
|
variability of grade / waste boundaries; and
|
◦
|
degree of fracture in rock / mine ability.
|
•
|
chemical effects:
|
◦
|
acidity of Mined Material (ore and waste).
|
•
|
efficiency:
|
◦
|
reliability of equipment; and
|
◦
|
management of mining process.
|
•
|
scheduling:
|
◦
|
limitations on ability to mine when we want.
|
•
|
the presence of oversize material at the crushing stage;
|
•
|
material showing breakage characteristics different to those planned;
|
•
|
material with grades outside of planned grade range;
|
•
|
sub-optimal ore mixture in terms of ancillary analytics, such as sulphur grade;
|
•
|
the presence of deleterious materials in different ratios than expected;
|
•
|
material drier or wetter than expected, due to natural or environmental effects; and
|
•
|
viscosity / density different than expected.
|
•
|
estimated mineral reserves;
|
•
|
anticipated metallurgical recoveries;
|
•
|
environmental considerations and permitting;
|
•
|
future gold prices;
|
•
|
anticipated capital and operating costs for the projects; and
|
•
|
timely execution of development plan.
|
•
|
interpreting the geologic data obtained from drill holes and other sampling techniques;
|
•
|
feasibility studies that derive estimated cash operating costs based on:
|
•
|
the expected tonnage and grades of ore to be mined and processed;
|
•
|
the configuration of the ore body;
|
•
|
expected recovery rates of gold from the ore;
|
•
|
estimated operating costs; and
|
•
|
anticipated climate conditions and other factors.
|
a.
|
Employee Relations
|
b.
|
Employee Misconduct
|
•
|
employees binding us to transactions that exceed authorized limits or present unacceptable risks to the Company;
|
•
|
employee theft or improper use of our property;
|
•
|
employee fraud or employees conspiring with third parties to defraud us;
|
•
|
employees hiding unauthorized or unsuccessful activities from us; and
|
•
|
the improper use of confidential information.
|
c.
|
Key Personnel
|
d.
|
Skilled Workforce
|
e.
|
Expatriates
|
•
|
restricting where the substance can be purchased;
|
•
|
requiring a certain government department to handle the purchase and transport of the substances;
|
•
|
restricting the amount of these substances that can be kept on-site at any time;
|
•
|
restricting where and how the materials may be stored; and
|
•
|
monitoring of the use of the product at site.
|
•
|
delays in repair or replacement of equipment due to unavailability or insufficient spare parts inventory;
|
•
|
repeated or unexpected equipment failures;
|
•
|
restrictions on transportation and installation of large equipment, including delays or inability to obtain required permits for the such transportation or installation;
|
•
|
inefficient or improper design for processing facilities;
|
•
|
suitability of equipment, including proper identification of normal operating parameters, the occurrence of extreme conditions or change of planned use for a particular piece of equipment;
|
•
|
premature failure of equipment;
|
•
|
restrictions on hours of operation of equipment;
|
•
|
availability of long lead-time and specialized equipment, including delays that may arise in the course of ordering, manufacture, importation or delivery of such equipment;
|
•
|
availability of specialized equipment and personnel to install and commission selected equipment; and
|
•
|
safety risks arising from equipment failure.
|
•
|
disagreement with a co-owner about how to develop, operate or finance the project;
|
•
|
that a co-owner may at any time have economic or business interests or goals that are, or become, inconsistent with our business interests or goals;
|
•
|
that a co-owner may not comply with the agreements governing our relationship with them;
|
•
|
disagreement with a co-owner over the exercise of such co-owner’s rights under the agreements governing our relationship;
|
•
|
the possibility that a co-owner may become insolvent;
|
•
|
the possibility that we may not be able to sell our interest in a co-owned entity if we desire to exit; and
|
•
|
possible litigation with a co-owner over matters related to the subject project.
|
a.
|
Acquisitions
|
•
|
accurately assessing the value, strengths, weaknesses, contingent and other liabilities and potential profitability of potential acquisitions;
|
•
|
limited opportunity for and effectiveness of due diligence;
|
•
|
ability to achieve identified and anticipated operating and financial synergies;
|
•
|
unanticipated costs, liabilities and write-offs including higher capital and operating costs than had been assumed at the time of acquisition;
|
•
|
diversion of management attention from existing business;
|
•
|
potential loss of our key employees or the key employees of any business we acquire;
|
•
|
successful integration of personnel and properties;
|
•
|
unanticipated changes in business, industry or general economic or political conditions that affect the assumptions underlying the acquisition;
|
•
|
decline in the value of acquired properties, companies or securities; and
|
•
|
the possibility that indemnification agreements with sellers (if any) may be unenforceable or insufficient to cover potential liabilities.
|
b.
|
Dispositions
|
•
|
access to suitable locations due to permitting or other restrictions;
|
•
|
requirements to encapsulate acid-generating material;
|
•
|
milled material being ground too fine and requiring further treatment; and
|
•
|
sufficient infrastructure required to place material underground in the right locations.
|
a.
|
Limited Access to Equity Markets
|
b.
|
Dilutive Equity Financing
|
c.
|
Credit Ratings
|
•
|
limiting our ability to obtain additional financing to fund future working capital, capital expenditures, acquisitions or other general corporate requirements, or requiring us to make non-strategic divestitures;
|
•
|
requiring a substantial portion of our cash flows to be dedicated to debt service payments instead of other purposes, thereby reducing the amount of cash flows available for working capital, capital expenditures, acquisitions, dividends and other general corporate purposes;
|
•
|
increasing our vulnerability to general adverse economic and industry conditions;
|
•
|
limiting our flexibility in planning for and reacting to changes in the industry in which we compete;
|
•
|
placing us at a disadvantage compared to other, less leveraged competitors;
|
•
|
increasing our cost of borrowing; and
|
•
|
putting us at risk of default if we do not service or repay this debt in accordance with applicable covenants.
|
a.
|
Current and future operation restrictions
|
•
|
incur additional indebtedness and guarantee indebtedness;
|
•
|
pay dividends or make other distributions or repurchase or redeem our capital stock;
|
•
|
prepay, redeem or repurchase certain debt;
|
•
|
make loans and investments;
|
•
|
sell, transfer or otherwise dispose of assets;
|
•
|
incur or permit to exist certain liens;
|
•
|
enter into transactions with affiliates;
|
•
|
undertake certain acquisitions;
|
•
|
complete certain corporate changes;
|
•
|
enter into certain hedging arrangements;
|
•
|
enter into agreements restricting our subsidiaries’ ability to pay dividends; and
|
•
|
consolidate, amalgamate, merge or sell all or substantially all of our assets.
|
b.
|
Change of Control
|
c.
|
Default on Obligations
|
•
|
the holders of the indebtedness may be able to cause all of our available cash flow to be used to pay the indebtedness and, in any event, could elect to declare all the funds borrowed thereunder to be due and payable, together with accrued and unpaid interest; or
|
•
|
we could be forced into bankruptcy, or liquidation or restructuring proceedings.
|
•
|
short-term operating factors;
|
•
|
revisions to mine plans;
|
•
|
risks and hazards associated with mining;
|
•
|
natural phenomena, such as inclement weather conditions, water availability, floods, and earthquakes;
|
•
|
unexpected work stoppages or labour shortages or strikes; and
|
•
|
changes in law, regulation or policy.
|
•
|
changing waste-to-ore ratios;
|
•
|
ore grade metallurgy;
|
•
|
labour costs;
|
•
|
cost of commodities, equipment and supplies;
|
•
|
general inflationary pressures;
|
•
|
currency exchange rates; and
|
•
|
changes in law, regulation or policy.
|
a.
|
Carrying Value of Assets
|
b.
|
Change in Reporting Standards
|
Date
|
|
Event
|
April 2, 1992
|
|
Eldorado Corporation Ltd. is incorporated by a Memorandum of Association under the Companies Act (Bermuda)
|
April 23, 1996
|
|
Name change to Eldorado Gold Corporation and continues under the Company Act (British Columbia)
|
June 28, 1996
|
|
Continues under the CBCA
|
November 19, 1996
|
|
Amalgamated with HRC Development Corporation under the name Eldorado Gold Corporation, under a plan of arrangement under the CBCA
|
June 5, 2006
|
|
Amends articles and files restated articles under the CBCA
|
April 3, 2009
|
|
Adopts new bylaws that shareholders approve on May 7, 2009
|
December 12, 2013
|
|
Adopts new bylaws that shareholders approve on May 1, 2014
|
May 27, 2014
|
|
Amended Articles under the CBCA
|
December 27, 2018
|
|
Amended Articles under the CBCA
|
•
|
receive notice of and to attend all shareholder meetings and have one vote in respect of each share held at such meetings; and
|
•
|
participate equally with other shareholders in any:
|
◦
|
dividends declared by the board; and
|
◦
|
distribution of assets if we are liquidated dissolved or wound-up.
|
Balance, December 31, 2017
|
158,801,722
|
|
Shares issued upon exercise of share options
|
—
|
|
Shares issued upon redemption of PSU’s*
|
—
|
|
Total – issued and outstanding as of December 31, 2018**
|
158,801,722
|
|
Moody’s
|
|
$78,750
|
|
S&P
|
|
$87,105
|
|
Year
|
Date
|
Per common share (Cdn$)
|
2015
|
February 16, 2015
|
$0.01
|
August 26, 2015
|
$0.01
|
|
2016
|
|
n/a
|
2017
|
March 16, 2017
|
$0.02
|
2018
|
High
|
Low
|
Cdn$
Close
|
Volume
|
January
|
9.25
|
7.70
|
7.95
|
21,727,741
|
February
|
8.05
|
6.75
|
6.90
|
25,289,449
|
March
|
7.63
|
5.15
|
5.40
|
23,000,126
|
April
|
6.75
|
5.25
|
6.10
|
25,279,268
|
May
|
7.75
|
5.95
|
7.35
|
16,435,836
|
June
|
7.75
|
6.25
|
6.65
|
12,578,789
|
July
|
7.60
|
6.35
|
7.10
|
12,385,724
|
August
|
7.15
|
5.95
|
6.30
|
9,963,550
|
September
|
6.50
|
5.35
|
5.65
|
11,373,655
|
October
|
6.25
|
4.30
|
4.40
|
11,637,723
|
November
|
4.90
|
3.65
|
3.80
|
10,453,470
|
December
|
4.60
|
3.54
|
4.00
|
13,870,405
|
Type of security
|
Number of securities
|
Date
issued
|
Issue price/
Exercise price*
|
Stock options
|
1,492,000
1,186,711
2,667,200
48,076
|
April 9, 2018
April 8, 2018
April 9, 2018
August 20, 2018
|
$1.24
$1.24
$1.24
$1.23
|
Performance Share Units (PSUs)
|
1,270,003
37,616
|
April 9, 2018
August 20, 2018
|
n/a
n/a
|
Restricted Share Units (RSUs)
|
635,002
419,948
839,896
19,379
|
April 9, 2018
April 9, 2018 April 9, 2018 August 20, 2018 |
n/a
n/a n/a n/a |
Deferred Units (DUs)
|
595,840
152,468
47,931
|
April 9, 2018
April 9, 2018 June 29, 2018 |
n/a
n/a
n/a
|
Registrar and transfer agent
for our common shares
|
|
Computershare Trust Company of Canada
100 University Ave.
8th Floor, North Tower
Toronto, Ontario M5J 2Y1
|
Registered and records office
and address for service
|
|
Eldorado Gold Corporation
c/o Fasken Martineau DuMoulin LLP
Suite 2900 – 550 Burrard Street
Vancouver, BC V6C 0A3
|
Registrar and trustee for our Notes
|
|
Computershare Trust Company N.A.
8742 Lucent Boulevard, Suite 225
Highlands Ranch, CO 80129
|
•
|
acting in good faith in the best interests of Eldorado Gold;
|
•
|
exercising care, diligence and skill in carrying out its duties and responsibilities; and
|
•
|
meeting its obligations under the CBCA, the Eldorado Gold articles and bylaws, the Director Terms of Reference and any other relevant legislation and regulations governing our business.
|
Director
|
Board
committees
|
Principal occupation
|
Approximate
number of
common
shares held
|
George Albino,
Acc. Dir
Colorado, United
States
Independent Director
Non-Executive
Chair of the
Board
|
Corporate
governance
and nominating
Compensation
|
Chair of the Board since December 2017 and director since October 27, 2016
Equities analyst for precious metal stocks at a variety of investment firms, most recently with GMP Securities (1997 to 2006)
From 1979 through 1997 exploration and research geologist with a number of international mining companies focused on gold, diamond, and base metal exploration and mining
Currently a Director of Orla Mining
|
35,000
|
George Burns,
President, Chief
Executive
Officer and Director
British Columbia,
Canada
|
|
Director since April 27, 2017
Executive Vice President and Chief Operating Officer of Goldcorp Inc (2012 to 2017)
Senior Vice President, Mexican Operations (2011 to 2012)
Vice President, Canada and United States (2007 to 2011)
Senior Vice President of Centerra Gold (2003 to 2007)
|
186,360
|
Teresa Conway,
ICD.D British Columbia, Canada Independent Director |
Audit
Compensation |
Director since June 2018
Powerex President and CEO 2005 -2017 Powerex VP Finance/CFO 1998-2004
Controller/Director of Finance 1993-1998
PriceWaterhouseCoopers 1985-1992
|
6,000
|
Pamela Gibson,
Acc. Dir
Hampshire, United
Kingdom
Independent Director
|
Audit
Corporate
governance
and nominating (chair)
|
Director since September 2, 2014
Of Counsel at Shearman & Sterling LLP since 2005
Head of capital Markets Europe and Asia (2002 to 2004); Managing Partner London (1995 to 2002) and Toronto (1990 to 1995) offices; and associate lawyer (1984 to 1989) at Shearman & Sterling LLP
Currently a director of GasLog Partners LP
|
Nil
|
Geoffrey Handley,
Acc. Dir
New South Wales,
Australia
Independent Director
|
Compensation
Sustainability
|
Director since August 2006
Executive Vice President, Strategic
Development with Placer Dome
(2002 to 2006)
Currently Chair of Endeavour Silver Corp.
|
2,000
|
Michael Price,
Acc. Dir
London, United
Kingdom
Independent Director
|
Audit
Sustainability (chair)
|
Director since May 6, 2011
Mining Finance Consultant and Adviser and London Representative of Resource Capital Funds since 2006.
Managing Director, Joint Global Head of Mining and Metals of Barclays Capital (2003 to 2006), Managing Director, Global Head of Mining and Metals of Société General, London (2001 to 2003), Executive Director, Head of Resource Banking and Metals Trading, N.M. Rothschild & Sons Ltd. (1989 to 2001), Mining Engineer, Business & Financial Analyst, British Petroleum PLC (1981 to 1988)
Currently a director of Asanko Gold Corporation and Entrée Resources.
|
Nil
|
Steven Reid,
ICD.D
Alberta, Canada
Independent Director
|
Compensation
(chair)
Sustainability
|
Director since May 2, 2013
Executive Vice President and Chief Operating Officer of Goldcorp Inc. (2007 to September 2012)
Currently a director of SSR Mining Inc. and Gold Fields Limited
|
10,000
|
John Webster,
ICD.D
Acc. Dir
British Columbia,
Canada
Independent Director
|
Audit (chair)
Corporate governance and nominating
|
Director since January 1, 2015
PricewaterhouseCoopers Canada (1981 to 2011), Partner (1992 to 2011),
Mining Leader (1996 to 2000),
BC Region Managing Partner (2001 to 2009).
PricewaterhouseCoopers Romania Partner (2011 to 2014),
Assurance Leader for Romania and South Eastern Europe
|
2,400
|
•
|
Audit
|
•
|
Compensation
|
•
|
Corporate governance and nominating
|
•
|
Sustainability
|
•
|
Steve Reid appointed as Chair to replace Jonathan Rubenstein
|
•
|
Dr. George Albino to replace Robert Gilmore
|
•
|
Michael Price appointed as Chair to replace Steve Reid
|
•
|
Dr. George Albino to replace Robert Gilmore
|
•
|
John Webster (chair)
|
•
|
Teresa Conway
1
|
•
|
Pamela Gibson
|
•
|
Michael Price
|
1.
|
Ms. Conway joined the audit committee on June 21, 2018.
|
•
|
BA (Hons), University of Kent
|
•
|
FCPA (British Columbia)
|
•
|
ACA (Institute of Chartered Accountants in England and Wales)
|
•
|
BBA, Simon Fraser University
|
•
|
CPA (British Columbia)
|
•
|
LL.M, New York University
|
•
|
LL.B, Osgoode Hall
|
•
|
BA (with Distinction), York University
|
•
|
B.Sc, Eng. (Hons)
|
•
|
PhD, Mining Engineering, University College Cardiff
|
•
|
overseeing financial reporting, internal controls, the audit process, our public disclosure documents and overseeing our code of business conduct and ethics;
|
•
|
recommending the appointment of our external auditor and reviewing the annual audit plan and auditor compensation;
|
•
|
pre-approving audit, audit-related, tax and other services to be provided by the external auditor;
|
•
|
reviewing our hiring policies for present and former employees of the present and former auditor; and
|
•
|
reviewing the terms of engagement for the external auditor.
|
$
|
2018
|
2017
|
Notes:
|
Audit fees
|
1,194,457
|
946,068
|
Total fees for audit services
|
Audit related fees
|
64,362
|
57,755
|
Majority of fees relate to French translation
|
Tax fees
|
—
|
—
|
Total fees for tax advice, tax planning and tax compliance
|
All other fees
|
46,200
|
—
|
Evaluation of HR candidate in Greece
|
Total
|
1,305,019
|
1,003,823
|
|
•
|
Steven Reid (chair)
1
|
•
|
George Albino
2
|
•
|
Teresa Conway
3
|
•
|
Geoffrey Handley
|
1.
|
Mr. Reid was appointed chair of the compensation committee on January 14, 2018. Mr. Jonathan Rubenstein, the previous compensation committee chair, resigned on January 1, 2018.
|
2.
|
Dr. Albino joined the compensation committee effective January 14, 2018.
|
3.
|
Ms. Conway joined the compensation committee effective June 21, 2018.
|
•
|
assisting management in developing our compensation structure, including the compensation policies and compensation programs for our directors and executives;
|
•
|
reviewing the results of the annual say on pay advisory vote when considering future executive and director compensation programs;
|
•
|
determining where there is a need to engage with shareholders on compensation and related matters and conduct such engagement in coordination with Management, as appropriate; and
|
•
|
assessing the performance of our CEO every year and recommending the compensation of our CEO and our other executive officers to the Board of directors for review and approval.
|
•
|
the competitiveness of our cash and stock-based compensation for our directors and executives;
|
•
|
whether overall executive compensation continues to support our goals of attracting, motivating and retaining executives with exceptional leadership and management skills; and
|
•
|
the overall compensation packages for our senior executives and whether the components are applied appropriately.
|
•
|
Mr. Reid is chair of the compensation committee for SSR Mining Inc. and the Chair of the remuneration committee for Gold Fields Limited; and
|
•
|
Mr. Handley was the chair of the compensation committee for PanAust Limited until mid-2015 and sits on the compensation committee for Endeavour Silver Corp.
|
•
|
Pamela Gibson (chair)
|
•
|
George Albino
|
•
|
John Webster
|
•
|
regularly reviewing our corporate governance policies and practices;
|
•
|
monitoring our risk management program;
|
•
|
reviewing the size and composition of the board annually;
|
•
|
facilitating the succession and nomination of directors to the board;
|
•
|
identifying new directors and managing the board’s nomination process, board committee appointments and assessment process; and
|
•
|
evaluating the board’s competencies and defining the skills and experience necessary for an effective Board.
|
•
|
Michael Price (chair)
1
|
•
|
Geoffrey Handley
|
•
|
Steven Reid
|
1.
|
Mr. Price replaced Mr. Reid as chair of the committee effective January 14, 2018.
|
•
|
reviewing our annual sustainability report prior to its issuance;
|
•
|
establishing and periodically reviewing corporate environmental, health and safety and human rights policies;
|
•
|
reviewing and monitoring our environmental, health and safety programs and procedures;
|
•
|
monitoring management’s environmental, health and safety risk assessment, risk related to sustainability and impact evaluation procedure;
|
•
|
monitoring management’s performance regarding environmental health and safety, social and human rights initiatives with respect to employees, communities and other stakeholders; and
|
•
|
monitoring and reporting to the board on management’s procedures regarding environmental, health and safety matters, including the development, maintenance and testing of emergency preparedness plans to minimize, remediate and mitigate environmental damage in the event of unforeseen incidents.
|
Executive officer
|
Principal occupation
|
Approximate number of common shares held
|
George Burns
British Columbia, Canada
President, Chief Executive Officer and Director
|
Chief Executive Officer since April 27, 2017
Executive Vice President and Chief Operating Officer of Goldcorp Inc (2012 to 2017)
Senior Vice President, Mexican Operations (2011 to 2012)
Vice President, Canada and United States (2007 to 2011)
Senior Vice President of Centerra Gold (2003 to 2007)
|
186,360
|
Philip Yee
British Columbia, Canada
Executive Vice President
and Chief Financial Officer
|
Chief Financial Officer since September 24, 2018
Executive Vice President and Chief Financial Officer of Kirkland Lake Gold (October 2016 to September 2018)
Senior Vice President and Chief Financial Officer for Lake Shore Gold (April 2013 to March 2016)
Vice President and Chief Financial Officer for Patagonia Gold (May 2011 to April 2013)
Vice President Finance for Kumtor Gold Copmany (subsidiary of Centerra Gold) (May 2001 to April 2011)
|
50,000
|
Paul Skayman
British Columbia, Canada
Chief Operating Officer
|
Chief Operating Officer since July 1, 2012
Senior Vice President, Operations (December 2009 to July 2012)
Vice President, Operations (August 2008 to December 2009)
Project Coordinator for QDML (Tanjianshan Gold Mine) (September 2005 to August 2008)
|
57,192
|
•
|
any of our directors or executive officers, or those of our subsidiaries;
|
•
|
a person or company that beneficially owns, controls or directs, directly or indirectly, more than 10% of our voting securities; or
|
•
|
any associate or affiliate of the above.
|
I.
|
ROLE
|
(i)
|
Reviewing the integrity and effectiveness of the Company’s systems of internal financial controls for reporting on the Company’s financial condition;
|
(ii)
|
Monitoring the independence and performance of the Company’s external auditor (the “
Auditor
”);
|
(iii)
|
Overseeing the integrity of the Company’s internal audit processes and reviewing the Company’s financial disclosure and reporting;
|
(iv)
|
Monitoring management of the Company’s (“
Management
”) compliance with legal and regulatory requirements; and
|
(v)
|
Overseeing certain risk management systems and practices adopted by the Company.
|
II.
|
RESPONSIBILITIES
|
(i)
|
Review with the Auditor and with Management, prior to recommending to the Board for its approval the following:
|
a)
|
The audited annual and unaudited quarterly financial statements, including the notes thereto;
|
b)
|
Management's Discussion and Analysis (“
MD&A
”) of operations accompanying or contained in the annual or quarterly reports and the consistency of the MD&A with the financial statements;
|
c)
|
Any expert report or opinion obtained by the Company in connection with the financial statements;
|
d)
|
The accounting treatment with respect to any transactions which are material or not in the normal course of the Company’s business or with or involving an unconsolidated entity;
|
e)
|
The nature and substance of significant accruals, accounting reserves and other estimates having a material effect on the financial statements;
|
f)
|
Carrying values of financial assets and liabilities, including key assumptions and practices used to determine fair value accounting and related mark-to-market adjustments;
|
g)
|
Any off balance sheet financing arrangement;
|
h)
|
Use of derivatives and hedging transactions;
|
i)
|
Asset retirement and reclamation obligations;
|
j)
|
Pension obligations;
|
k)
|
Tax matters (including material tax planning initiatives) that could have a material effect upon the financial statements;
|
l)
|
The Company’s accounting and auditing principles, policies and practices including any changes thereto;
|
m)
|
The adequacy of the Company’s internal controls (including any significant deficiencies or material weaknesses in internal control over financial reporting) and the responsibilities of the Company’s internal audit function with respect to internal controls;
|
n)
|
All significant adjustments made or proposed to be made in the Company’s financial statements by Management or by the Auditor;
|
o)
|
Details regarding any unrecorded audit adjustments;
|
p)
|
Any impairment provisions based on ceiling tests or other calculation including the carrying value of goodwill;
|
q)
|
Use by the Company of any Non-GAAP financial measures or forward looking financial information contained in any disclosure document;
|
r)
|
The compliance by the Company’s Chief Executive Officer and Chief Financial Officer with the applicable certification requirements under applicable security legislation; and
|
s)
|
Such other matters as the Committee considers necessary in connection with the preparation of the Company’s financial reports.
|
(ii)
|
Review the adequacy of procedures put in place by the Board or Management for the review of public disclosure of financial information prior to the disclosure to the public thereof.
|
(iii)
|
Review and discuss with the Auditor any audit related problems or difficulties and Management’s response thereto, including any restrictions imposed on the scope of the Auditor’s activities, access to required information, disagreement with Management or the adequacy of internal controls.
|
(iv)
|
Review the Auditor’s Management Letter and the Auditor’s Report.
|
(v)
|
Review, discuss with Management (and with the Auditor, where required or appropriate) and approve or recommend that the Board approve the following, prior to disclosure to the public:
|
a)
|
Consolidated annual audited financial statements and related MD&A;
|
b)
|
Consolidated unaudited quarterly financial statements and related MD&A;
|
c)
|
Press releases announcing or containing financial information including those based on the annual or quarterly financial statements, and non-GAAP financial measures, revenue or earnings guidance or other forward-looking information; and
|
d)
|
Financial information contained within any prospectus, annual information form, information circular, take-over bid circular, issuer bid circular, rights offering circular or other form of prescribed disclosure document.
|
(i)
|
Recommend to the Board the appointment of the Auditor to be nominated at the annual shareholders’ meeting and who is ultimately accountable to the Board and the Committee as representatives of the shareholders.
|
(ii)
|
Recommend to the Board the remuneration to be paid to the Auditor.
|
(iii)
|
Require the Auditor to report to the Committee.
|
(iv)
|
Oversee the work of the Auditor including the mandate of the Auditor, the annual engagement letter, audit plan and audit scope.
|
(v)
|
Review and discuss the reports required to be made by the Auditor regarding: critical accounting policies and practices; material selections of accounting policies when there is a choice of policies available under IFRS that have been discussed with Management, including the ramifications of the use of such alternative treatment, and the treatment preferred by the Auditor.
|
(vi)
|
Review and discuss other material written communications between the Auditor and Management; and any other matters required to be communicated by the Auditor to the Committee by applicable rules and regulations.
|
(vii)
|
Assess the audit team.
|
(viii)
|
Assist in the resolution of disagreements, if any, between management and the Auditor regarding financial reporting.
|
(ix)
|
Review and pre-approve non-audit services proposed to be provided by the Auditor, to the extent required by law. The Committee may delegate, to the Chair of the Committee (the “
Chair
”), the authority to pre-approve non-audit services, and the Chair shall present any pre-approval to the Committee at the next scheduled meeting of the Committee.
|
(x)
|
Review and approve the fees and expenses of the Auditor.
|
(xi)
|
Establish guidelines for the retention of the Auditor for any non-audit services including a consideration of whether the provision of such services would impact the independence of the Auditor.
|
(xii)
|
At least annually, evaluate the Auditor’s qualifications, performance and independence, including that of the Auditor’s lead partner, and report the results of such review to the Board.
|
(xiii)
|
Where the Committee considers it appropriate, recommend a replacement for the Auditor and oversee any procedures required for the replacement thereof.
|
(xiv)
|
Review and approve the Company’s policies with respect to the employment of present and former partners and employees of the present and former Auditor.
|
(i)
|
Review and discuss with Management the effectiveness of, or any deficiencies in, the design or operation of the Company’s systems of internal controls and any allegation of fraud, whether or not material, involving Management or other employees who have a role in the Company’s internal controls.
|
(ii)
|
Review with Management and the Auditor, the Company’s internal accounting and financial systems and controls to assess the effectiveness of, or deficiency in the design or operation of those internal controls to get reasonable assurance that the Company has:
|
a)
|
The appropriate books, records and accounts in reasonable detail to accurately and fairly reflect the Company’s transactions;
|
b)
|
Effective internal control systems; and
|
c)
|
Adequate processes for assessing the risk of material misstatement of the financial statements and for detecting control weaknesses or fraud.
|
(iii)
|
Review with Management and advise the Board with respect to the Company’s policies and procedures regarding compliance with new developments in accounting principles, laws and regulations and their impact on the financial statements of the Company.
|
(iv)
|
Review Management’s report on and the Auditor’s assessment of the Company’s internal controls and report all deficiencies and remedial actions to the Board.
|
(i)
|
Review with Management the Company’s major financial risk exposures and the steps Management has taken to monitor and control such exposures.
|
(ii)
|
Review any related party transactions prior to such transactions being submitted to the Board for approval.
|
(iii)
|
Establish a complaint process and “whistle-blowing” procedures for the receipt, retention and treatment of any complaints regarding accounting, internal accounting controls or audit related matters.
|
(iv)
|
Establish procedures for employees’ confidential, anonymous submissions of concerns regarding questionable accounting or auditing matters in accordance with the Company’s Whistle Blower Policy or Code of Conduct.
|
(v)
|
Review, on a periodic basis, compliance with the Company’s investment policy governing investments of excess cash balances.
|
(vi)
|
Receive and review Management’s report and, if applicable, the report of the Auditor, with respect to: any material correspondence with, or other material action by, regulators or governmental agencies; any material legal proceeding involving the Company; or allegations concerning the Company’s non-compliance with applicable laws or listing standards.
|
(vii)
|
Review any matter brought to the attention of the Committee relating to the existence of any actual or potential conflict of interest disclosure provided pursuant to the Company’s Code of Conduct and determine appropriate action to be recommended to the Board.
|
(viii)
|
Monitor compliance with the Company’s Code of Conduct.
|
(ix)
|
Review on a regular basis, any reports of whistle-blowing.
|
(x)
|
Investigate any reported violations of the Code of Conduct and determine an appropriate response, including corrective action and preventative measures when required. All reports are to be treated confidentially to every extent possible.
|
(i)
|
Direct and supervise the investigation into any matter brought to the Committee’s attention within the scope of its duties.
|
(ii)
|
Perform such other duties as may be assigned to the Committee by the Board from time to time or as may be required by applicable law or regulatory authorities.
|
III.
|
COMPOSITION
|
(i)
|
On the recommendations of the Corporate Governance and Nominating Committee, the Board will annually appoint not fewer than three (3) directors to form the Committee, all of whom shall be “independent” and “financially literate” within the meaning of the applicable securities legislation and at least one member of the Committee shall meet the definition of a “financial expert” as defined under the Rules of the United States Securities and Exchange Commission.
|
(ii)
|
The Board may, at any time, remove or replace a member, or appoint additional members to fill any vacancy or to increase or decrease the size of the Committee. A member will serve on the Committee until the termination of the appointment or until a successor is appointed or the person ceases to be a director of the Company.
|
IV.
|
MEETINGS AND PROCEDURES
|
(i)
|
The Committee shall meet as often as it considers necessary and, subject to the terms hereof and applicable law, otherwise establish its procedures and govern itself as the members of the Committee may see fit in order to carry out and fulfill its duties and responsibilities hereunder.
|
(ii)
|
Meetings of the Committee may be called by a member of the Committee, the Chief Executive Officer, the Corporate Secretary, the Chief Financial Officer or the Auditor of the Company and held at such times and places as the person calling the meeting may determine. Not less than twenty-four (24) hours advance notice of any meeting shall be given orally or in writing personally delivered or by facsimile or electronic mail together with an agenda to each member of the Committee and the Auditor unless all members of the Committee are present at any meeting and agree to waive notice and any absent member of the Committee has waived notice or otherwise consented to the holding of such meetings in writing.
|
(iii)
|
A majority of members of the Committee will constitute a quorum (provided that a quorum shall not be less than 2 members). Decisions of the Committee will be by an affirmative vote of the majority of those members of the Committee voting at a meeting. In the event of an equality of votes, the Chair will not have a casting or deciding vote. The Committee may also act by resolution in writing signed by all the members of the Committee.
|
(iv)
|
The Board, or failing that, the Committee itself, shall select one of its members to act as the Chair (or in his or her absence, an alternate Chair).
|
(iv)
|
The Committee shall keep or cause to be kept minutes or other records of its meetings and proceedings and provide such records to the Company as the Committee may so determine.
|
(v)
|
Any member of the Committee may participate in a meeting by conference telephone or other communications equipment by means of which all persons participating in the meeting can adequately communicate with each other, and a member participating in a meeting pursuant to this section shall be deemed for purposes of the Canada Business Corporations Act to be present in person at the meeting.
|
(vi)
|
The Committee may invite Management, directors, employees or other persons as it sees fit from time to time to attend its meetings and assist thereat provided, however, that only members of the Committee may participate in the deliberation, and vote on any matter to be decided by the Committee.
|
(vii)
|
The Company shall provide the Committee with such resources, personnel and authority as the Committee may require in order to properly carry out and discharge its roles and responsibilities hereunder.
|
(viii)
|
The Committee has authority to communicate directly with the Auditor. The Committee will have access to the Auditor and Management, exclusive of each other, for purposes of performing its duties. The Committee will meet with the Auditor independent of Management after each review of the unaudited and audited financial statements and at such other times as the Committee may require.
|
(ix)
|
The Committee and its members shall have access to such documents or records of the Company and to such officers, employees or advisors of the Company or require their attendance at any meeting of the Committee, all as the Committee or the members thereof may consider necessary in order to fulfill and discharge their responsibilities hereunder.
|
(x)
|
Subject to any limitation under applicable law, these Terms of Reference or direction of the Board, the Committee may delegate to a subcommittee or individual member of the Committee any of its duties or responsibilities hereunder.
|
(xi)
|
The Committee may from time to time authorize any member or members or any other director or officer of the Company to certify or to execute and deliver, for or on behalf of the Committee any such report, statement, certificate or other document or to do such acts or things as the Committee may consider necessary or desirable in order to discharge its duties and responsibilities hereunder.
|
(xii)
|
The Auditor will be notified of results of and provided with copies of the minutes of each meeting of the Committee whether or not the Auditor attended.
|
V.
|
OTHER MATTERS
|
(i)
|
The Committee as whole or each member of the Committee individually may engage independent counsel and other outside advisors, at the Company’s expense, where the member or the Committee determine that it is necessary to do so in order to assist in fulfilling their respective responsibilities.
|
(ii)
|
The Committee may, in consultation with the Board Chair, set the compensation of independent counsel and other outside advisors. The engagement and payment by the Company for the services of such independent counsel and other outside advisors are subject to approval of the Chair of the Committee.
|
(ii)
|
In connection with their service on the Committee, the members shall be entitled to such remuneration, payment or reimbursement of such incidental expenses and indemnification, on such terms as the Board may so determine from time to time.
|
(iii)
|
The Corporate Governance and Nominating Committee of the Board and the Committee itself shall, not less frequently than annually, assess, based on such factors as they may consider appropriate, the effectiveness of the Committee and the members of the Committee, in accordance with these Terms of Reference and report such assessments to the Corporate Governance and Nominating Committee, or the Board, as appropriate.
|
(iv)
|
The Committee shall review and assess the adequacy of these Terms of Reference on a regular basis and consider whether these Terms of Reference appropriately address the matters that are or should be within its scope and, where appropriate, make recommendations to the Board or Corporate Governance and Nominating Committee for the alteration, modification or amendment hereof.
|
(v)
|
These Terms of Reference may, at any time, and from time to time, be altered, modified or amended in such manner as may be approved by the Board.
|
VI.
|
RESPONSIBILITIES AND DUTIES OF THE CHAIR
|
(i)
|
Chair meetings of the Committee.
|
(ii)
|
In consultation with the Board Chair and the Corporate Secretary, determine the frequency, dates and locations of meetings of the Committee.
|
(iii)
|
In consultation with the Company’s Chief Executive Officer, Chief Financial Officer, Corporate Secretary and others as required, review the annual work plan and the meeting agendas to ensure all required business is brought before the Committee.
|
(iv)
|
In consultation with the Board Chair, ensure that all items requiring the Committee’s approval are appropriately tabled.
|
(v)
|
Report to the Board on the matters reviewed by, and on any decisions or recommendations of, the Committee at the next meeting of the Board following any meeting of the Committee.
|
(vi)
|
Carry out any other or special assignments or any functions as may be requested by the Board.
|
VII.
|
LIMITATIONS ON THE COMMITTEE'S DUTIES
|
VIII.
|
APPROVAL
|
(Signed) George Burns
|
|
(Signed) Philip Yee
|
|
|
|
|
|
|
George Burns
|
|
Philip Yee
|
President & Chief Executive Officer
|
|
Chief Financial Officer
|
|
|
|
February 21, 2019
|
|
|
Vancouver, British Columbia, Canada
|
|
|
|
KPMG LLP
Chartered Professional Accountants
PO Box 10426 777 Dunsmuir Street
Vancouver BC V7Y 1K3
Canada
|
|
Telephone
Fax
Internet
|
(604) 691-3000
(604) 691-3031
www.kpmg.ca
|
|
KPMG LLP
Chartered Professional Accountants
PO Box 10426 777 Dunsmuir Street
Vancouver BC V7Y 1K3
Canada
|
|
Telephone
Fax
Internet
|
(604) 691-3000
(604) 691-3031
www.kpmg.ca
|
|
Note
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
||
ASSETS
|
|
|
|
|
|
||||
Current assets
|
|
|
|
|
|
||||
Cash and cash equivalents
|
7
|
|
$
|
286,312
|
|
|
$
|
479,501
|
|
Term deposits
|
|
|
6,646
|
|
|
5,508
|
|
||
Restricted cash
|
8
|
|
296
|
|
|
310
|
|
||
Marketable securities
|
|
|
2,572
|
|
|
5,010
|
|
||
Accounts receivable and other
|
9
|
|
80,987
|
|
|
78,344
|
|
||
Inventories
|
10
|
|
137,885
|
|
|
168,844
|
|
||
|
|
|
514,698
|
|
|
737,517
|
|
||
Restricted cash
|
8
|
|
13,449
|
|
|
12,617
|
|
||
Other assets
|
11
|
|
10,592
|
|
|
10,285
|
|
||
Defined benefit pension plan
|
18
|
|
9,120
|
|
|
9,919
|
|
||
Property, plant and equipment
|
13
|
|
3,988,476
|
|
|
4,227,397
|
|
||
Goodwill
|
14
|
|
92,591
|
|
|
92,591
|
|
||
|
|
|
$
|
4,628,926
|
|
|
$
|
5,090,326
|
|
LIABILITIES & EQUITY
|
|
|
|
|
|
||||
Current liabilities
|
|
|
|
|
|
||||
Accounts payable and accrued liabilities
|
15
|
|
$
|
140,878
|
|
|
$
|
110,541
|
|
Current portion of asset retirement obligations
|
17
|
|
824
|
|
|
3,489
|
|
||
|
|
|
141,702
|
|
|
114,030
|
|
||
Debt
|
16
|
|
595,977
|
|
|
593,783
|
|
||
Lease liability
|
|
|
6,538
|
|
|
110
|
|
||
Defined benefit pension plan
|
18
|
|
14,375
|
|
|
13,599
|
|
||
Asset retirement obligations
|
17
|
|
93,319
|
|
|
96,195
|
|
||
Deferred income tax liabilities
|
19
|
|
429,929
|
|
|
549,127
|
|
||
|
|
|
1,281,840
|
|
|
1,366,844
|
|
||
Equity
|
|
|
|
|
|
||||
Share capital
|
20
|
|
3,007,924
|
|
|
3,007,924
|
|
||
Treasury stock
|
|
|
(10,104
|
)
|
|
(11,056
|
)
|
||
Contributed surplus
|
|
|
2,620,799
|
|
|
2,616,593
|
|
||
Accumulated other comprehensive loss
|
|
|
(24,494
|
)
|
|
(21,350
|
)
|
||
Deficit
|
|
|
(2,310,453
|
)
|
|
(1,948,569
|
)
|
||
Total equity attributable to shareholders of the Company
|
|
|
3,283,672
|
|
|
3,643,542
|
|
||
Attributable to non-controlling interests
|
|
|
63,414
|
|
|
79,940
|
|
||
|
|
|
3,347,086
|
|
|
3,723,482
|
|
||
|
|
|
$
|
4,628,926
|
|
|
$
|
5,090,326
|
|
|
Note
|
|
Year ended December 31, 2018
|
|
|
Year ended December 31, 2017
|
|
||
Revenue
|
|
|
|
|
|
||||
Metal sales
|
28
|
|
$
|
459,016
|
|
|
$
|
391,406
|
|
|
|
|
|
|
|
||||
Cost of sales
|
|
|
|
|
|
||||
Production costs
|
29
|
|
267,980
|
|
|
192,740
|
|
||
Inventory write-down
|
10
|
|
1,465
|
|
|
444
|
|
||
Depreciation and amortization
|
|
|
105,732
|
|
|
72,130
|
|
||
|
|
|
375,177
|
|
|
265,314
|
|
||
|
|
|
|
|
|
||||
Earnings from mine operations
|
|
|
83,839
|
|
|
126,092
|
|
||
|
|
|
|
|
|
||||
Exploration and evaluation expenses
|
|
|
33,842
|
|
|
38,261
|
|
||
Mine standby costs
|
|
|
16,510
|
|
|
4,886
|
|
||
Other operating items
|
|
|
—
|
|
|
3,658
|
|
||
General and administrative expenses
|
|
|
46,806
|
|
|
54,574
|
|
||
Acquisition costs
|
6
|
|
—
|
|
|
4,270
|
|
||
Defined benefit pension plan expense
|
18
|
|
3,555
|
|
|
3,451
|
|
||
Share based payments
|
21
|
|
6,989
|
|
|
11,218
|
|
||
Impairment of property, plant, and equipment
|
13
|
|
447,808
|
|
|
—
|
|
||
Other write-down of assets
|
|
|
1,528
|
|
|
46,697
|
|
||
Foreign exchange loss (gain)
|
|
|
3,574
|
|
|
(2,382
|
)
|
||
Loss from operations
|
|
|
(476,773
|
)
|
|
(38,541
|
)
|
||
|
|
|
|
|
|
||||
Gain (loss) on disposal of assets
|
|
|
130
|
|
|
(462
|
)
|
||
Gain on derivatives and other investments
|
|
|
665
|
|
|
27,425
|
|
||
Other income
|
|
|
16,151
|
|
|
17,575
|
|
||
Asset retirement obligation accretion
|
17
|
|
(2,038
|
)
|
|
(2,006
|
)
|
||
Interest and financing costs
|
|
|
(4,264
|
)
|
|
(3,199
|
)
|
||
|
|
|
|
|
|
||||
Earnings (loss) from continuing operations before income tax
|
|
|
(466,129
|
)
|
|
792
|
|
||
Income tax expense (recovery)
|
19
|
|
(86,498
|
)
|
|
19,383
|
|
||
Loss from continuing operations
|
|
|
(379,631
|
)
|
|
(18,591
|
)
|
||
Loss from discontinued operations
|
|
|
—
|
|
|
(2,797
|
)
|
||
Net loss for the year
|
|
|
$
|
(379,631
|
)
|
|
$
|
(21,388
|
)
|
|
|
|
|
|
|
||||
Attributable to:
|
|
|
|
|
|
||||
Shareholders of the Company
|
|
|
(361,884
|
)
|
|
(9,935
|
)
|
||
Non-controlling interests
|
|
|
(17,747
|
)
|
|
(11,453
|
)
|
||
Net loss for the year
|
|
|
$
|
(379,631
|
)
|
|
$
|
(21,388
|
)
|
|
|
|
|
|
|
||||
Net loss attributable to shareholders of the Company:
|
|
|
|
|
|
||||
Continuing operations
|
|
|
(361,884
|
)
|
|
(7,138
|
)
|
||
Discontinued operations
|
|
|
—
|
|
|
(2,797
|
)
|
||
Shareholders of the Company
|
|
|
$
|
(361,884
|
)
|
|
$
|
(9,935
|
)
|
|
|
|
|
|
|
||||
Weighted average number of shares outstanding (thousands)
|
30
|
|
|
|
|
||||
Basic
|
|
|
158,509
|
|
|
150,531
|
|
||
Diluted
|
|
|
158,509
|
|
|
150,531
|
|
||
|
|
|
|
|
|
||||
Net loss per share attributable to shareholders of the Company:
|
|
|
|
|
|
||||
Basic loss per share
|
|
|
$
|
(2.28
|
)
|
|
$
|
(0.07
|
)
|
Diluted loss per share
|
|
|
$
|
(2.28
|
)
|
|
$
|
(0.07
|
)
|
|
|
|
|
|
|
||||
Net loss per share attributable to shareholders of the Company - continuing operations:
|
|
|
|
|
|
||||
Basic loss per share
|
|
|
$
|
(2.28
|
)
|
|
$
|
(0.05
|
)
|
Diluted loss per share
|
|
|
$
|
(2.28
|
)
|
|
$
|
(0.05
|
)
|
|
Note
|
|
Year ended December 31, 2018
|
|
|
Year ended December 31, 2017
|
|
||
|
|
|
|
|
|
||||
Loss for the year
|
|
|
$
|
(379,631
|
)
|
|
$
|
(21,388
|
)
|
Other comprehensive loss:
|
|
|
|
|
|
||||
Items that will not be reclassified to earnings or loss:
|
|
|
|
|
|
||||
Change in fair value of investments in equity securities
|
|
|
(2,306
|
)
|
|
(160
|
)
|
||
Actuarial losses on defined benefit pension plans
|
18
|
|
(1,197
|
)
|
|
(3,121
|
)
|
||
Income tax recovery on losses on defined benefit pension plans
|
|
|
359
|
|
|
—
|
|
||
|
|
|
(3,144
|
)
|
|
(3,281
|
)
|
||
Items that may be reclassified subsequently to earnings or loss:
|
|
|
|
|
|
||||
Change in fair value of investments in equity securities
|
|
|
—
|
|
|
16,038
|
|
||
Income tax on change in fair value of investments in equity securities
|
|
|
—
|
|
|
(2,595
|
)
|
||
Reclassification of the gain on equity securities on acquisition of Integra
|
6
|
|
—
|
|
|
(28,363
|
)
|
||
Income tax on the gain on equity securities on acquisition of Integra
|
6
|
|
—
|
|
|
4,023
|
|
||
|
|
|
—
|
|
|
(10,897
|
)
|
||
Total other comprehensive loss for the year
|
|
|
(3,144
|
)
|
|
(14,178
|
)
|
||
Total comprehensive loss for the year
|
|
|
$
|
(382,775
|
)
|
|
$
|
(35,566
|
)
|
|
|
|
|
|
|
||||
Attributable to:
|
|
|
|
|
|
||||
Shareholders of the Company
|
|
|
(365,028
|
)
|
|
(24,113
|
)
|
||
Non-controlling interests
|
|
|
(17,747
|
)
|
|
(11,453
|
)
|
||
|
|
|
$
|
(382,775
|
)
|
|
$
|
(35,566
|
)
|
|
Note
|
|
Year ended December 31, 2018
|
|
|
Year ended December 31, 2017
|
|
||
Cash flows generated from (used in):
|
|
|
|
|
|
||||
Operating activities
|
|
|
|
|
|
||||
Loss for the year from continuing operations
|
|
|
$
|
(379,631
|
)
|
|
$
|
(18,591
|
)
|
Items not affecting cash:
|
|
|
|
|
|
||||
Asset retirement obligation accretion
|
|
|
2,038
|
|
|
2,006
|
|
||
Depreciation and amortization
|
|
|
105,732
|
|
|
72,130
|
|
||
Unrealized foreign exchange gain
|
|
|
704
|
|
|
(471
|
)
|
||
Deferred income tax recovery
|
|
|
(118,839
|
)
|
|
(19,849
|
)
|
||
Loss (gain) on disposal of assets
|
|
|
(130
|
)
|
|
462
|
|
||
Gain on derivatives and other investments
|
|
|
(665
|
)
|
|
(27,425
|
)
|
||
Impairment of property, plant and equipment
|
13
|
|
447,808
|
|
|
—
|
|
||
Other write-down of assets
|
|
|
1,528
|
|
|
46,697
|
|
||
Share based payments
|
|
|
6,989
|
|
|
11,218
|
|
||
Defined benefit pension plan expense
|
|
|
3,555
|
|
|
3,451
|
|
||
|
|
|
69,089
|
|
|
69,628
|
|
||
Property reclamation payments
|
|
|
(5,536
|
)
|
|
(3,097
|
)
|
||
Severance payments
|
|
|
(2,299
|
)
|
|
—
|
|
||
Changes in non-cash working capital
|
22
|
|
5,062
|
|
|
(35,755
|
)
|
||
Net cash provided by operating activities of continuing operations
|
|
|
66,316
|
|
|
30,776
|
|
||
Net cash used by operating activities of discontinued operations
|
|
|
—
|
|
|
(2,797
|
)
|
||
|
|
|
|
|
|
||||
Investing activities
|
|
|
|
|
|
||||
Net cash paid on acquisition of subsidiary
|
6
|
|
—
|
|
|
(121,664
|
)
|
||
Purchase of property, plant and equipment
|
|
|
(274,070
|
)
|
|
(309,133
|
)
|
||
Capitalised interest
|
13
|
|
(36,750
|
)
|
|
(36,750
|
)
|
||
Proceeds from the sale of property, plant and equipment
|
|
|
7,882
|
|
|
252
|
|
||
Proceeds on pre-commercial production sales
|
13
|
|
48,868
|
|
|
38,200
|
|
||
Value added taxes related to mineral property expenditures, net
|
|
|
(1,261
|
)
|
|
22,804
|
|
||
Investment in term deposits
|
|
|
(1,138
|
)
|
|
(216
|
)
|
||
Increase in restricted cash
|
|
|
(928
|
)
|
|
(9,817
|
)
|
||
Net cash used by investing activities of continuing operations
|
|
|
(257,397
|
)
|
|
(416,324
|
)
|
||
|
|
|
|
|
|
||||
Financing activities
|
|
|
|
|
|
||||
Issuance of common shares for cash
|
|
|
—
|
|
|
586
|
|
||
Dividend paid to shareholders
|
|
|
—
|
|
|
(10,610
|
)
|
||
Purchase of treasury stock
|
|
|
(2,108
|
)
|
|
(5,301
|
)
|
||
Net cash used by financing activities of continuing operations
|
|
|
(2,108
|
)
|
|
(15,325
|
)
|
||
|
|
|
|
|
|
||||
Net decrease in cash and cash equivalents
|
|
|
(193,189
|
)
|
|
(403,670
|
)
|
||
Cash and cash equivalents - beginning of year
|
|
|
479,501
|
|
|
883,171
|
|
||
Cash and cash equivalents - end of year
|
|
|
$
|
286,312
|
|
|
$
|
479,501
|
|
|
Note
|
|
Year ended December 31, 2018
|
|
|
Year ended December 31, 2017
|
|
||
Share capital
|
|
|
|
|
|
||||
Balance beginning of year
|
|
|
$
|
3,007,924
|
|
|
$
|
2,819,101
|
|
Shares issued upon exercise of share options, for cash
|
|
|
—
|
|
|
586
|
|
||
Transfer of contributed surplus on exercise of options
|
|
|
—
|
|
|
176
|
|
||
Shares issued on acquisition of Integra Gold Corp.
|
6
|
|
—
|
|
|
188,061
|
|
||
Balance end of year
|
20
|
|
$
|
3,007,924
|
|
|
$
|
3,007,924
|
|
|
|
|
|
|
|
||||
Treasury stock
|
|
|
|
|
|
||||
Balance beginning of year
|
|
|
$
|
(11,056
|
)
|
|
$
|
(7,794
|
)
|
Purchase of treasury stock
|
|
|
(2,108
|
)
|
|
(5,301
|
)
|
||
Shares redeemed upon exercise of restricted share units
|
|
|
3,060
|
|
|
2,039
|
|
||
Balance end of year
|
|
|
$
|
(10,104
|
)
|
|
$
|
(11,056
|
)
|
|
|
|
|
|
|
||||
Contributed surplus
|
|
|
|
|
|
||||
Balance beginning of year
|
|
|
$
|
2,616,593
|
|
|
$
|
2,606,567
|
|
Share based payments
|
|
|
7,266
|
|
|
12,241
|
|
||
Shares redeemed upon exercise of restricted share units
|
|
|
(3,060
|
)
|
|
(2,039
|
)
|
||
Transfer to share capital on exercise of options
|
|
|
—
|
|
|
(176
|
)
|
||
Balance end of year
|
|
|
$
|
2,620,799
|
|
|
$
|
2,616,593
|
|
|
|
|
|
|
|
||||
Accumulated other comprehensive loss
|
|
|
|
|
|
||||
Balance beginning of year
|
|
|
$
|
(21,350
|
)
|
|
$
|
(7,172
|
)
|
Other comprehensive loss for the year
|
|
|
(3,144
|
)
|
|
(14,178
|
)
|
||
Balance end of year
|
|
|
$
|
(24,494
|
)
|
|
$
|
(21,350
|
)
|
|
|
|
|
|
|
||||
Deficit
|
|
|
|
|
|
||||
Balance beginning of year
|
|
|
$
|
(1,948,569
|
)
|
|
$
|
(1,928,024
|
)
|
Dividends paid
|
|
|
—
|
|
|
(10,610
|
)
|
||
Loss attributable to shareholders of the Company
|
|
|
(361,884
|
)
|
|
(9,935
|
)
|
||
Balance end of year
|
|
|
$
|
(2,310,453
|
)
|
|
$
|
(1,948,569
|
)
|
Total equity attributable to shareholders of the Company
|
|
|
$
|
3,283,672
|
|
|
$
|
3,643,542
|
|
|
|
|
|
|
|
||||
Non-controlling interests
|
|
|
|
|
|
||||
Balance beginning of year
|
|
|
$
|
79,940
|
|
|
$
|
88,786
|
|
Loss attributable to non-controlling interests
|
|
|
(17,747
|
)
|
|
(11,453
|
)
|
||
Contributions from non-controlling interests
|
|
|
1,221
|
|
|
2,607
|
|
||
Balance end of year
|
|
|
$
|
63,414
|
|
|
$
|
79,940
|
|
Total equity
|
|
|
$
|
3,347,086
|
|
|
$
|
3,723,482
|
|
(i)
|
Subsidiaries and business combinations
|
Subsidiary
|
Location
|
Ownership
interest |
Operations and
development projects owned |
|
|
|
|
Tüprag Metal Madencilik Sanayi ve Ticaret AS ("Tüprag")
|
Turkey
|
100%
|
Kişladağ Mine
Efemçukuru Mine |
Hellas Gold SA ("Hellas")
|
Greece
|
95%
|
Stratoni Mine
Olympias Mine Skouries Project |
Integra Gold Corporation
|
Canada
|
100%
|
Lamaque Project
|
Thracean Gold Mining SA
|
Greece
|
100%
|
Perama Hill Project
|
Thrace Minerals SA
|
Greece
|
100%
|
Sapes Project
|
Unamgen Mineração e Metalurgia SA
|
Brazil
|
100%
|
Vila Nova Iron Ore Mine
|
Brazauro Recursos Minerais SA ("Brazauro")
|
Brazil
|
100%
|
Tocantinzinho Project
|
Deva Gold SA ("Deva")
|
Romania
|
80.5%
|
Certej Project
|
(i)
|
Functional and presentation currency
|
(ii)
|
Transactions and balances
|
(iii)
|
Depreciation
|
(iv)
|
Subsequent costs
|
(v)
|
Deferred stripping costs
|
(vi)
|
Borrowing costs
|
(vii)
|
Mine standby costs and restructuring costs
|
(i)
|
Exploration
|
(ii)
|
Evaluation
|
a)
|
establishing the volume and grade of deposits through drilling of core samples, trenching and sampling activities for an ore body that is classified as either a mineral resource or a proven and probable reserve;
|
b)
|
determining the optimal methods of extraction and metallurgical and treatment processes;
|
c)
|
studies related to surveying, transportation and infrastructure requirements;
|
d)
|
permitting activities; and
|
e)
|
economic evaluations to determine whether development of the mineralized material is commercially viable, including scoping, prefeasibility and final feasibility studies.
|
▪
|
There is a probable future benefit that will contribute to future cash inflows;
|
▪
|
The Company can obtain the benefit and control access to it; and
|
▪
|
The transaction or event giving rise to the benefit has already occurred.
|
(iii)
|
Development
|
(1)
|
the level of capital expenditures compared to construction cost estimates;
|
(2)
|
the completion of a reasonable period of testing of mine plant and equipment;
|
(3)
|
the ability to produce minerals in saleable form (within specification); and
|
(4)
|
the ability to sustain ongoing production of minerals.
|
(i)
|
Classification and measurement
|
(ii)
|
Impairment of financial assets
|
i)
|
Product inventory consists of stockpiled ore, ore on leach pads, crushed ore, in-circuit material at properties with milling or processing operations, gold concentrate, other metal concentrate, iron ore stockpile awaiting shipment, doré awaiting refinement and unsold bullion. Product inventory costs consist of direct production costs including mining, crushing and processing; site administration costs; and allocated indirect costs, including depreciation and amortization of mineral property, plant and equipment.
|
ii)
|
Materials and supplies inventory consists of consumables used in operations, such as fuel, chemicals, reagents and spare parts, which are valued at the lower of average cost and net realisable value and, where appropriate, less a provision for obsolescence. Costs include acquisition, freight and other directly attributable costs.
|
(i)
|
Defined benefit plans
|
(ii)
|
Defined contribution plans
|
(iii)
|
Termination benefits
|
(iv)
|
Short-term benefits
|
•
|
the amount of gold and other metals estimated to be in the ore stacked on the leach pads;
|
•
|
the amount of gold and other metals expected to be recovered from the stacks;
|
•
|
the amount of gold and other metals in the mill circuits;
|
•
|
the amount of gold and other metals in concentrates; and
|
•
|
the gold and other metal prices expect to be realized when sold.
|
•
|
IFRS 9
‘Financial Instruments’
– This standard was published in July 2014 and replaces the existing guidance in IAS 39, ‘
Financial Instruments: Recognition and Measurement’
. IFRS 9 includes revised guidance on the classification and measurement of financial instruments, including a new expected credit loss model for calculating impairment on financial assets, and new general hedge accounting requirements. Most of the requirements in IAS 39 for classification and measurement of financial liabilities were carried forward in IFRS 9, so the Company's accounting policy with respect to financial liabilities is substantially unchanged. The Company has changed its accounting policy with respect to the clarification of financial assets that were recognized at the date of transition, January 1, 2018.
The new policy is included in
note 3
, section
3.7
.
The change did not impact the presentation or carrying value of any financial assets on the transition date.
|
|
Original classification New classification IAS 39
|
New classification IFRS 9
|
|
|
|
Financial assets
|
|
|
Cash and cash equivalents
|
Amortized cost
|
Amortized cost
|
Term deposit
|
Amortized cost
|
Amortized cost
|
Restricted cash
|
Amortized cost
|
Amortized cost
|
Trade receivables
|
Amortized cost
|
Amortized cost
|
Settlement receivables
|
Embedded derivative separately identified as FVTPL
|
FVTPL
|
Marketable securities
|
Available-for-sale
|
FVTOCI
|
Derivatives
|
FVTPL
|
FVTPL
|
|
|
|
Financial liabilities
|
|
|
Accounts payable and accrued liabilities
|
Amortized cost
|
Amortized cost
|
Debt
|
Amortized cost
|
Amortized cost
|
•
|
IFRS 15
‘Revenue from Contracts with Customers’
– This standard introduces a single model that applies to contracts with customers and two approaches to recognising revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognized. The Company's revenue recognition policy under the previous standard recognized revenue when persuasive evidence of an arrangement existed, the bullion, doré, metal concentrates and iron ore had been shipped, title had passed to the purchaser, the price was fixed or determinable, and collection was reasonably assured. The Company has adopted this standard with a modified retrospective approach and has changed its accounting policy for revenue recognition.
The new policy is included in
note 3
, section
3.19
.
There was no adjustment to prior periods as a result of the implementation of this standard.
The Company has provided additional disclosures required by this standard in
note 28
of these audited consolidated financial statements.
|
•
|
IFRS 2
‘Share-Based Payments’
–
In June 2016, the IASB issued final amendments to this standard and clarified the classification and measurement of share-based payment transactions. These amendments deal with variations in the final settlement arrangements including:
|
•
|
IFRS 16
‘Leases
’ – This standard was published in January 2016 and replaces the existing guidance in IAS 17, ‘Leases’. IFRS 16 introduces a single accounting model for lessees and for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee will be required to recognize a right-of-use asset, representing its right to use the underlying asset, and a lease liability, representing its obligation to make lease payments. The accounting treatment for lessors will remain largely the same as under IAS 17.
|
•
|
IFRIC 23
'Uncertainty over Income Tax Treatments'
– This interpretation sets out how to determine the accounting tax position when there is uncertainty over income tax treatments. The Interpretation requires an entity to determine whether uncertain tax positions are assessed separately or as a group; and assess whether it is probable that a tax authority will accept an uncertain tax treatment used, or proposed to be used, by an entity in its income tax filings. If yes, the entity should determine its accounting tax position consistently with the tax treatment used or planned to be used in its income tax filings. If no, the entity should reflect the effect of uncertainty in determining its accounting tax position. The Interpretation is effective January 1, 2019. Entities can apply the interpretation with either full retrospective application or modified retrospective application without restatement of comparatives retrospectively or prospectively. The Company does not expect the application of the Interpretation will have a significant impact on the Company’s consolidated financial statements.
|
15,436,179 common shares of shares of Eldorado at C$15.70/share (*)
|
|
$
|
188,061
|
|
Cash consideration including advances
|
|
126,869
|
|
|
Fair value of existing Integra investment by Eldorado
|
|
41,968
|
|
|
Total Consideration
|
|
$
|
356,898
|
|
|
|
|
||
Net assets acquired:
|
|
|
||
|
|
|
||
Cash and cash equivalents
|
|
$
|
5,205
|
|
Marketable securities
|
|
2,857
|
|
|
Accounts receivable and other
|
|
5,920
|
|
|
Inventories
|
|
2,471
|
|
|
Other assets
|
|
3,495
|
|
|
Property, plant and equipment
|
|
393,647
|
|
|
Goodwill
|
|
92,591
|
|
|
Accounts payable and accrued liabilities
|
|
(8,028
|
)
|
|
Flow-through share premium liability
|
|
(4,722
|
)
|
|
Other liabilities
|
|
(9,635
|
)
|
|
Deferred income taxes
|
|
(126,903
|
)
|
|
|
|
$
|
356,898
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
||
|
|
|
|
||||
Cash at bank and on hand
|
$
|
200,644
|
|
|
$
|
293,437
|
|
Short-term bank deposits
|
85,668
|
|
|
186,064
|
|
||
|
$
|
286,312
|
|
|
$
|
479,501
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
||
Current:
|
|
|
|
||||
Restricted cash deposits - Greece
|
$
|
296
|
|
|
$
|
310
|
|
|
296
|
|
|
310
|
|
||
Non-current:
|
|
|
|
||||
Restricted credit card deposits
|
58
|
|
|
43
|
|
||
Restricted cash related to Letter of Guarantee - Greece
|
10,670
|
|
|
9,743
|
|
||
Environmental guarantee deposits
|
2,721
|
|
|
2,831
|
|
||
|
$
|
13,449
|
|
|
$
|
12,617
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
||
|
|
|
|
||||
Trade receivables
|
$
|
22,072
|
|
|
$
|
7,746
|
|
Value added tax and other taxes recoverable
|
34,791
|
|
|
44,717
|
|
||
Other receivables and advances
|
8,378
|
|
|
7,134
|
|
||
Prepaid expenses and deposits
|
15,746
|
|
|
18,747
|
|
||
|
$
|
80,987
|
|
|
$
|
78,344
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
||
|
|
|
|
||||
Ore stockpiles
|
$
|
1,620
|
|
|
$
|
3,297
|
|
In-process inventory and finished goods
|
59,974
|
|
|
96,651
|
|
||
Materials and supplies
|
76,291
|
|
|
68,896
|
|
||
|
$
|
137,885
|
|
|
$
|
168,844
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
||
|
|
|
|
||||
Prepaid loan costs (note 16(a))
|
$
|
749
|
|
|
$
|
1,272
|
|
Prepaid forestry fees
|
3,175
|
|
|
3,628
|
|
||
Long-term value added tax and other taxes recoverable
|
6,668
|
|
|
5,385
|
|
||
|
$
|
10,592
|
|
|
$
|
10,285
|
|
December 31, 2018
|
Hellas
|
|
|
Deva
|
|
||
NCI percentage
|
5%
|
|
|
19.5%
|
|
||
|
|
|
|
||||
Current assets
|
$
|
78,308
|
|
|
$
|
2,177
|
|
Non-current assets
|
1,846,952
|
|
|
414,330
|
|
||
Current liabilities
|
(1,212,864
|
)
|
|
(246,089
|
)
|
||
Non-current liabilities
|
(160,765
|
)
|
|
(43,581
|
)
|
||
Net assets
|
551,631
|
|
|
126,837
|
|
||
Carrying amount of NCI
|
$
|
17,619
|
|
|
$
|
44,169
|
|
|
|
|
|
||||
Revenue
|
110,487
|
|
|
—
|
|
||
Net loss
|
(298,272
|
)
|
|
(14,100
|
)
|
||
Total comprehensive loss
|
(298,272
|
)
|
|
(14,100
|
)
|
||
Loss allocated to NCI
|
(14,913
|
)
|
|
(2,750
|
)
|
||
Dividends paid to NCI
|
—
|
|
|
—
|
|
||
|
|
|
|
||||
Cash flows from operating activities
|
(66,135
|
)
|
|
(16,695
|
)
|
||
Cash flows from investing activities
|
(80,306
|
)
|
|
(419
|
)
|
||
Cash flows from financing activities
|
133,520
|
|
|
15,218
|
|
||
Net decrease in cash and cash equivalents
|
$
|
(12,921
|
)
|
|
$
|
(1,896
|
)
|
|
|
|
|
||||
December 31, 2017
|
Hellas
|
|
|
Deva
|
|
||
NCI percentage
|
5%
|
|
|
19.5%
|
|
||
|
|
|
|
||||
Current assets
|
$
|
72,454
|
|
|
$
|
4,958
|
|
Non-current assets
|
2,143,089
|
|
|
413,989
|
|
||
Current liabilities
|
(1,113,471
|
)
|
|
(234,386
|
)
|
||
Non-current liabilities
|
(291,447
|
)
|
|
(43,623
|
)
|
||
Net assets
|
810,625
|
|
|
140,938
|
|
||
Carrying amount of NCI
|
$
|
31,732
|
|
|
$
|
46,919
|
|
|
|
|
|
||||
Revenue
|
51,152
|
|
|
—
|
|
||
Net loss
|
(62,365
|
)
|
|
(42,632
|
)
|
||
Total comprehensive loss
|
(62,365
|
)
|
|
(42,632
|
)
|
||
Loss allocated to NCI
|
(3,118
|
)
|
|
(8,314
|
)
|
||
Dividends paid to NCI
|
—
|
|
|
—
|
|
||
|
|
|
|
||||
Cash flows from operating activities
|
(9,253
|
)
|
|
(51,328
|
)
|
||
Cash flows from investing activities
|
(181,116
|
)
|
|
(2,007
|
)
|
||
Cash flows from financing activities
|
172,431
|
|
|
53,007
|
|
||
Net decrease in cash and cash equivalents
|
$
|
(17,938
|
)
|
|
$
|
(328
|
)
|
|
Land and buildings
|
|
Plant and equipment
|
|
Capital works in progress
|
|
Mineral properties and leases
|
|
Capitalized Evaluation
|
|
Total
|
|
||||||
Cost
|
|
|
|
|
|
|
||||||||||||
Balance at January 1, 2017
|
$
|
164,540
|
|
$
|
1,416,948
|
|
$
|
141,922
|
|
$
|
3,877,473
|
|
$
|
77,495
|
|
$
|
5,678,378
|
|
Additions/transfers
|
12,322
|
|
115,684
|
|
(42,933
|
)
|
254,481
|
|
9,536
|
|
349,090
|
|
||||||
Acquisition of Integra (note 6)
|
4,820
|
|
3,646
|
|
—
|
|
385,181
|
|
—
|
|
393,647
|
|
||||||
Proceeds on pre-commercial production sales
|
—
|
|
—
|
|
—
|
|
(38,200
|
)
|
—
|
|
(38,200
|
)
|
||||||
Other movements
|
4,251
|
|
(2,325
|
)
|
(12,336
|
)
|
7,832
|
|
—
|
|
(2,578
|
)
|
||||||
Disposals
|
(10
|
)
|
(2,313
|
)
|
(29,832
|
)
|
(1,168
|
)
|
—
|
|
(33,323
|
)
|
||||||
Balance at December 31, 2017
|
$
|
185,923
|
|
$
|
1,531,640
|
|
$
|
56,821
|
|
$
|
4,485,599
|
|
$
|
87,031
|
|
$
|
6,347,014
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at January 1, 2018
|
$
|
185,923
|
|
$
|
1,531,640
|
|
$
|
56,821
|
|
$
|
4,485,599
|
|
$
|
87,031
|
|
$
|
6,347,014
|
|
Additions/transfers
|
6,203
|
|
119,712
|
|
1,646
|
|
229,673
|
|
6,202
|
|
363,436
|
|
||||||
Proceeds on pre-commercial production sales
|
—
|
|
(9,179
|
)
|
—
|
|
(39,689
|
)
|
—
|
|
(48,868
|
)
|
||||||
Olympias commercial production transfers (*)
|
387
|
|
465,249
|
|
53,858
|
|
(506,206
|
)
|
—
|
|
13,288
|
|
||||||
Other movements
|
(240
|
)
|
13,011
|
|
1,769
|
|
(200
|
)
|
226
|
|
14,566
|
|
||||||
Disposals
|
(29
|
)
|
(8,400
|
)
|
—
|
|
(20
|
)
|
—
|
|
(8,449
|
)
|
||||||
Balance at December 31, 2018
|
$
|
192,244
|
|
$
|
2,112,033
|
|
$
|
114,094
|
|
$
|
4,169,157
|
|
$
|
93,459
|
|
$
|
6,680,987
|
|
|
|
|
|
|
|
|
||||||||||||
Depreciation and impairment
|
|
|
|
|
|
|
||||||||||||
Balance at January 1, 2017
|
$
|
(38,635
|
)
|
$
|
(706,641
|
)
|
$
|
(4,733
|
)
|
$
|
(1,282,542
|
)
|
$
|
—
|
|
$
|
(2,032,551
|
)
|
Depreciation for the year
|
(4,245
|
)
|
(79,044
|
)
|
—
|
|
(2,948
|
)
|
—
|
|
(86,237
|
)
|
||||||
Other movements
|
(546
|
)
|
(2,048
|
)
|
—
|
|
80
|
|
—
|
|
(2,514
|
)
|
||||||
Disposals
|
—
|
|
1,683
|
|
—
|
|
2
|
|
—
|
|
1,685
|
|
||||||
Balance at December 31, 2017
|
$
|
(43,426
|
)
|
$
|
(786,050
|
)
|
$
|
(4,733
|
)
|
$
|
(1,285,408
|
)
|
$
|
—
|
|
$
|
(2,119,617
|
)
|
|
|
|
|
|
|
|
||||||||||||
Balance at January 1, 2018
|
$
|
(43,426
|
)
|
$
|
(786,050
|
)
|
$
|
(4,733
|
)
|
$
|
(1,285,408
|
)
|
$
|
—
|
|
$
|
(2,119,617
|
)
|
Depreciation for the year
|
(3,125
|
)
|
(88,649
|
)
|
—
|
|
(3,774
|
)
|
—
|
|
(95,548
|
)
|
||||||
Olympias commercial production transfers (*)
|
—
|
|
(13,288
|
)
|
—
|
|
—
|
|
—
|
|
(13,288
|
)
|
||||||
Other movements
|
(1,060
|
)
|
(15,485
|
)
|
—
|
|
(346
|
)
|
—
|
|
(16,891
|
)
|
||||||
Impairment
|
(363
|
)
|
(105,932
|
)
|
—
|
|
(341,513
|
)
|
—
|
|
(447,808
|
)
|
||||||
Disposals
|
—
|
|
641
|
|
—
|
|
—
|
|
—
|
|
641
|
|
||||||
Balance at December 31, 2018
|
$
|
(47,974
|
)
|
$
|
(1,008,763
|
)
|
$
|
(4,733
|
)
|
$
|
(1,631,041
|
)
|
$
|
—
|
|
$
|
(2,692,511
|
)
|
|
|
|
|
|
|
|
||||||||||||
Carrying amounts
|
|
|
|
|
|
|
||||||||||||
At January 1, 2017
|
$
|
125,905
|
|
$
|
710,307
|
|
$
|
137,189
|
|
$
|
2,594,931
|
|
$
|
77,495
|
|
$
|
3,645,827
|
|
At December 31, 2017
|
142,497
|
|
745,590
|
|
52,088
|
|
3,200,191
|
|
87,031
|
|
4,227,397
|
|
||||||
Balance at December 31, 2018
|
$
|
144,270
|
|
$
|
1,103,270
|
|
$
|
109,361
|
|
$
|
2,538,116
|
|
$
|
93,459
|
|
$
|
3,988,476
|
|
Gold price ($/oz)
|
|
$1,250
|
|
Silver price ($/oz)
|
|
$17
|
|
Discount rate
|
6.5
|
%
|
Gold price ($/oz)
|
$1,275 - $1,300
|
|
Silver price ($/oz)
|
$17 - $18
|
|
Lead price ($/t)
|
$2,200 - $2,300
|
|
Zinc price ($/t)
|
$2,800 - $2,900
|
|
Discount rate
|
7
|
%
|
|
|
2018
|
||
|
|
|
||
Gold price ($/oz)
|
|
$1,275 - $1,300
|
|
|
Discount rate
|
|
5
|
%
|
|
Conversion factor of resources and exploration potential to proven and probable reserves
|
|
21
|
%
|
|
Fair value per ounce of resources and exploration potential beyond proven and probable reserves
|
|
|
$140
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
||
|
|
|
|
||||
Trade payables
|
$
|
38,969
|
|
|
$
|
60,081
|
|
Taxes payable
|
201
|
|
|
213
|
|
||
Accrued expenses
|
101,708
|
|
|
50,247
|
|
||
|
$
|
140,878
|
|
|
$
|
110,541
|
|
|
Turkey
|
|
Canada
|
|
Greece
|
|
Romania
|
|
Brazil
|
|
Total
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
At January 1, 2018
|
$
|
37,321
|
|
$
|
9,453
|
|
$
|
47,461
|
|
$
|
1,405
|
|
$
|
4,044
|
|
$
|
99,684
|
|
Accretion during the year
|
896
|
|
—
|
|
1,035
|
|
36
|
|
71
|
|
2,038
|
|
||||||
Revisions to estimate
|
(1,117
|
)
|
2,762
|
|
(3,512
|
)
|
(77
|
)
|
(99
|
)
|
(2,043
|
)
|
||||||
Settlements
|
(621
|
)
|
—
|
|
(4,915
|
)
|
—
|
|
—
|
|
(5,536
|
)
|
||||||
At December 31, 2018
|
36,479
|
|
12,215
|
|
40,069
|
|
1,364
|
|
4,016
|
|
94,143
|
|
||||||
Less: Current portion
|
—
|
|
—
|
|
(824
|
)
|
—
|
|
—
|
|
(824
|
)
|
||||||
Long term portion
|
36,479
|
|
12,215
|
|
39,245
|
|
1,364
|
|
4,016
|
|
93,319
|
|
||||||
Estimated undiscounted amount
|
$
|
48,454
|
|
$
|
14,989
|
|
$
|
65,274
|
|
$
|
2,335
|
|
$
|
4,121
|
|
$
|
135,173
|
|
|
Turkey
|
|
Canada
|
|
Greece
|
|
Romania
|
|
Brazil
|
|
Total
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
At January 1, 2017
|
$
|
36,196
|
|
$
|
—
|
|
$
|
48,131
|
|
$
|
1,359
|
|
$
|
4,092
|
|
$
|
89,778
|
|
Acquired during the year
|
—
|
|
9,453
|
|
—
|
|
—
|
|
—
|
|
9,453
|
|
||||||
Accretion during the year
|
913
|
|
—
|
|
1,025
|
|
36
|
|
32
|
|
2,006
|
|
||||||
Revisions to estimate
|
502
|
|
—
|
|
1,112
|
|
10
|
|
(80
|
)
|
1,544
|
|
||||||
Settlements
|
(290
|
)
|
—
|
|
(2,807
|
)
|
—
|
|
—
|
|
(3,097
|
)
|
||||||
At December 31, 2017
|
37,321
|
|
9,453
|
|
47,461
|
|
1,405
|
|
4,044
|
|
99,684
|
|
||||||
Less: Current portion
|
—
|
|
—
|
|
(3,489
|
)
|
—
|
|
—
|
|
(3,489
|
)
|
||||||
Long term portion
|
37,321
|
|
9,453
|
|
43,972
|
|
1,405
|
|
4,044
|
|
96,195
|
|
||||||
Estimated undiscounted amount
|
$
|
49,257
|
|
$
|
12,286
|
|
$
|
71,591
|
|
$
|
2,340
|
|
$
|
4,117
|
|
$
|
139,591
|
|
|
Turkey
|
Canada
|
Greece
|
Romania
|
Brazil
|
|
|
%
|
%
|
%
|
%
|
%
|
|
At December 31, 2017
|
|
|
|
|
|
|
Inflation rate
|
2.0 to 2.2
|
2.0 to 2.2
|
2.0 to 2.2
|
2.0 to 2.2
|
2.0 to 2.2
|
|
Discount rate
|
2.3 to 2.5
|
2.3 to 2.5
|
1.5 to 3.0
|
2.7
|
1.8
|
|
|
|
|
|
|
|
|
At December 31, 2018
|
|
|
|
|
|
|
Inflation rate
|
2.2 to 2.3
|
2.2 to 2.3
|
2.2 to 2.3
|
2.2 to 2.3
|
2.2 to 2.3
|
|
Discount rate
|
2.7
|
2.7
|
2.5 to 2.9
|
2.9
|
2.6
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
||
Income statement charge for:
|
|
|
|
||||
Pension plan
|
$
|
3,463
|
|
|
$
|
2,841
|
|
Supplemental Pension Plan
|
92
|
|
|
610
|
|
||
|
$
|
3,555
|
|
|
$
|
3,451
|
|
|
|
|
|
||||
Actuarial losses recognised in the statement of other
|
|
|
|
||||
comprehensive income in the period (before tax)
|
$
|
(1,197
|
)
|
|
$
|
(3,121
|
)
|
|
|
|
|
||||
Cumulative actuarial losses recognised in the statement of
|
|
|
|
||||
other comprehensive income (before tax)
|
$
|
(19,838
|
)
|
|
$
|
(18,641
|
)
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||
|
Pension Plan
|
|
SERP
|
|
Total
|
|
|
Pension Plan
|
|
SERP
|
|
Total
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Present value of obligations
|
$
|
(16,239
|
)
|
$
|
(37,075
|
)
|
$
|
(53,314
|
)
|
|
$
|
(16,028
|
)
|
$
|
(43,956
|
)
|
$
|
(59,984
|
)
|
Fair value of plan assets
|
1,864
|
|
46,195
|
|
48,059
|
|
|
2,429
|
|
53,875
|
|
56,304
|
|
||||||
Asset (liability) on balance sheet
|
$
|
(14,375
|
)
|
$
|
9,120
|
|
$
|
(5,255
|
)
|
|
$
|
(13,599
|
)
|
$
|
9,919
|
|
$
|
(3,680
|
)
|
|
2018
|
|
2017
|
||||||||||||||||
|
Pension Plan
|
|
SERP
|
|
Total
|
|
|
Pension Plan
|
|
SERP
|
|
Total
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Balance at January 1,
|
$
|
(16,028
|
)
|
$
|
(43,956
|
)
|
$
|
(59,984
|
)
|
|
$
|
(12,936
|
)
|
$
|
(37,686
|
)
|
$
|
(50,622
|
)
|
Current service cost
|
(2,935
|
)
|
(269
|
)
|
(3,204
|
)
|
|
(2,102
|
)
|
(877
|
)
|
(2,979
|
)
|
||||||
Past service cost
|
—
|
|
(146
|
)
|
(146
|
)
|
|
(206
|
)
|
(208
|
)
|
(414
|
)
|
||||||
Interest cost
|
(601
|
)
|
(1,403
|
)
|
(2,004
|
)
|
|
(620
|
)
|
(1,508
|
)
|
(2,128
|
)
|
||||||
Actuarial gain (loss)
|
(1,209
|
)
|
2,512
|
|
1,303
|
|
|
(292
|
)
|
(2,390
|
)
|
(2,682
|
)
|
||||||
Benefit payments
|
1,066
|
|
2,829
|
|
3,895
|
|
|
1,060
|
|
1,485
|
|
2,545
|
|
||||||
Exchange gain (loss)
|
3,468
|
|
3,358
|
|
6,826
|
|
|
(932
|
)
|
(2,772
|
)
|
(3,704
|
)
|
||||||
Balance at December 31,
|
$
|
(16,239
|
)
|
$
|
(37,075
|
)
|
$
|
(53,314
|
)
|
|
$
|
(16,028
|
)
|
$
|
(43,956
|
)
|
$
|
(59,984
|
)
|
|
2018
|
|
2017
|
||||||||||||||||
|
Pension Plan
|
|
SERP
|
|
Total
|
|
|
Pension Plan
|
|
SERP
|
|
Total
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
At January 1,
|
$
|
2,429
|
|
$
|
53,875
|
|
$
|
56,304
|
|
|
$
|
2,054
|
|
$
|
49,306
|
|
$
|
51,360
|
|
Interest income on plan assets
|
73
|
|
1,726
|
|
1,799
|
|
|
86
|
|
1,983
|
|
2,069
|
|
||||||
Actuarial gain (loss)
|
(64
|
)
|
(2,436
|
)
|
(2,500
|
)
|
|
(55
|
)
|
(384
|
)
|
(439
|
)
|
||||||
Contributions by employer
|
—
|
|
—
|
|
—
|
|
|
219
|
|
1,196
|
|
1,415
|
|
||||||
Benefit payments
|
(399
|
)
|
(2,828
|
)
|
(3,227
|
)
|
|
(57
|
)
|
(1,485
|
)
|
(1,542
|
)
|
||||||
Exchange gain (loss)
|
(175
|
)
|
(4,142
|
)
|
(4,317
|
)
|
|
182
|
|
3,259
|
|
3,441
|
|
||||||
At December 31,
|
$
|
1,864
|
|
$
|
46,195
|
|
$
|
48,059
|
|
|
$
|
2,429
|
|
$
|
53,875
|
|
$
|
56,304
|
|
|
2018
|
|
2017
|
||||||||||||||||
|
Pension Plan
|
|
SERP
|
|
Total
|
|
|
Pension Plan
|
|
SERP
|
|
Total
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Current service cost
|
$
|
2,935
|
|
$
|
269
|
|
$
|
3,204
|
|
|
$
|
2,102
|
|
$
|
877
|
|
$
|
2,979
|
|
Interest cost
|
601
|
|
1,404
|
|
2,005
|
|
|
620
|
|
1,508
|
|
2,128
|
|
||||||
Past Service Cost
|
—
|
|
146
|
|
146
|
|
|
206
|
|
208
|
|
414
|
|
||||||
Expected return on plan assets
|
(73
|
)
|
(1,727
|
)
|
(1,800
|
)
|
|
(87
|
)
|
(1,983
|
)
|
(2,070
|
)
|
||||||
Defined benefit plans expense
|
$
|
3,463
|
|
$
|
92
|
|
$
|
3,555
|
|
|
$
|
2,841
|
|
$
|
610
|
|
$
|
3,451
|
|
|
2018
|
|
2017
|
||||||||||||
|
Pension Plan
|
|
SERP
|
|
Pension Plan
|
|
SERP
|
||||||||
|
Greece
|
|
Turkey
|
|
Canada
|
|
Canada
|
|
Greece
|
|
Turkey
|
|
Canada
|
|
Canada
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expected return on plan assets
|
—
|
|
—
|
|
3.4
|
|
3.4
|
|
—
|
|
—
|
|
3.9
|
|
3.9
|
Discount rate - beginning of year
|
1.7
|
|
11.0
|
|
3.4
|
|
3.4
|
|
1.6
|
|
10.5
|
|
3.9
|
|
3.9
|
Discount rate - end of year
|
1.7
|
|
15.0
|
|
3.9
|
|
3.9
|
|
1.7
|
|
11.0
|
|
3.4
|
|
3.4
|
Rate of salary escalation
|
2.8
|
|
9.0
|
|
2.0
|
|
2.0
|
|
2.8
|
|
6.5
|
|
2.0
|
|
2.0
|
Average remaining service period of active employees expected to receive benefits
|
—
|
|
—
|
|
1.6 years
|
|
1.6 years
|
|
—
|
|
—
|
|
8.2 years
|
|
8.2 years
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||
|
Pension Plan
|
SERP
|
|
Pension Plan
|
SERP
|
||||
Investment funds
|
|
|
|
|
|
||||
Money market
|
2
|
%
|
1
|
%
|
|
—
|
|
6
|
%
|
Canadian fixed income
|
98
|
%
|
6
|
%
|
|
100
|
%
|
2
|
%
|
Canadian equities
|
—
|
|
22
|
%
|
|
—
|
|
20
|
%
|
US equities
|
—
|
|
10
|
%
|
|
—
|
|
19
|
%
|
International equities
|
—
|
|
12
|
%
|
|
—
|
|
7
|
%
|
Other
(1)
|
—
|
|
49
|
%
|
|
—
|
|
46
|
%
|
Total
|
100
|
%
|
100
|
%
|
|
100
|
%
|
100
|
%
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
||
|
|
|
|
||||
Current tax expense
|
$
|
32,341
|
|
|
$
|
39,232
|
|
Deferred tax recovery
|
(118,839
|
)
|
|
(19,849
|
)
|
||
|
$
|
(86,498
|
)
|
|
$
|
19,383
|
|
|
2018
|
|
|
2017
|
|
||
|
|
|
|
||||
Turkey
|
$
|
45,238
|
|
|
$
|
30,139
|
|
Greece
|
(129,213
|
)
|
|
(4,598
|
)
|
||
Brazil
|
3,608
|
|
|
(1,087
|
)
|
||
Canada
|
(3,415
|
)
|
|
2,960
|
|
||
Romania
|
(2,716
|
)
|
|
(8,026
|
)
|
||
Other jurisdictions
|
—
|
|
|
(5
|
)
|
||
|
$
|
(86,498
|
)
|
|
$
|
19,383
|
|
|
2018
|
|
|
2017
|
|
||
|
|
|
|
||||
Earnings (loss) from continuing operations before income tax
|
$
|
(466,129
|
)
|
|
$
|
792
|
|
Canadian statutory tax rate
|
27
|
%
|
|
26
|
%
|
||
Tax expense (recovery) on net income at Canadian statutory tax rate
|
$
|
(125,855
|
)
|
|
$
|
206
|
|
|
|
|
|
||||
Items that cause an increase (decrease) in income tax expense:
|
|
|
|
||||
Foreign income subject to different income tax rates than Canada
|
(17,498
|
)
|
|
(11,792
|
)
|
||
Reduction in Greek income tax rate
|
(24,968
|
)
|
|
—
|
|
||
Non-tax effected operating losses
|
12,716
|
|
|
9,691
|
|
||
Non-deductible expenses and other items
|
14,923
|
|
|
10,002
|
|
||
Foreign exchange and other translation adjustments
|
36,837
|
|
|
6,289
|
|
||
Future and current withholding tax on foreign income dividends
|
20,000
|
|
|
5,297
|
|
||
Other
|
(2,653
|
)
|
|
(310
|
)
|
||
Income tax expense (recovery)
|
$
|
(86,498
|
)
|
|
$
|
19,383
|
|
|
2018
|
|
|
2017
|
|
||
Net deferred tax asset (liability)
|
|
|
|
||||
Balance at January 1,
|
$
|
(549,127
|
)
|
|
$
|
(443,501
|
)
|
Deferred income tax liability related to Integra acquisition
|
—
|
|
|
(126,903
|
)
|
||
Deferred income tax recovery in the income statement
|
118,839
|
|
|
19,849
|
|
||
Deferred tax recovery in other comprehensive loss
|
359
|
|
|
1,428
|
|
||
Net balance at December 31,
|
$
|
(429,929
|
)
|
|
$
|
(549,127
|
)
|
Type of temporary difference
|
Deferred tax assets
|
Deferred tax liabilities
|
Expense (recovery)
|
|||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Property, plant and equipment
|
$
|
—
|
|
$
|
—
|
|
$
|
483,561
|
|
$
|
592,062
|
|
$
|
(108,501
|
)
|
$
|
(33,466
|
)
|
Loss carryforwards
|
37,245
|
|
31,457
|
|
—
|
|
—
|
|
(5,788
|
)
|
(4,641
|
)
|
||||||
Liabilities
|
27,321
|
|
24,690
|
|
—
|
|
—
|
|
(2,631
|
)
|
(80
|
)
|
||||||
Future withholding taxes
|
—
|
|
—
|
|
20,000
|
|
—
|
|
20,000
|
|
—
|
|
||||||
Other items
|
19,477
|
|
1,997
|
|
10,411
|
|
15,208
|
|
(21,919
|
)
|
18,338
|
|
||||||
Balance at December 31,
|
$
|
84,043
|
|
$
|
58,144
|
|
$
|
513,972
|
|
$
|
607,270
|
|
$
|
(118,839
|
)
|
$
|
(19,849
|
)
|
Unrecognized deferred tax assets
|
2018
|
|
|
2017
|
|
||
|
|
|
|
||||
Tax losses
|
$
|
160,052
|
|
|
$
|
167,030
|
|
Other deductible temporary differences
|
11,967
|
|
|
11,253
|
|
||
Total unrecognized deferred tax assets
|
$
|
172,019
|
|
|
$
|
178,283
|
|
Expiry date
|
Canada
|
Brazil
|
Greece
|
Total
|
||||||||
|
|
|
|
|
||||||||
2019
|
$
|
—
|
|
$
|
—
|
|
$
|
14,964
|
|
$
|
14,964
|
|
2020
|
—
|
|
—
|
|
25,221
|
|
25,221
|
|
||||
2021
|
—
|
|
—
|
|
10,451
|
|
10,451
|
|
||||
2022
|
—
|
|
—
|
|
8,007
|
|
8,007
|
|
||||
2023
|
—
|
|
—
|
|
10,337
|
|
10,337
|
|
||||
2025
|
7,894
|
|
—
|
|
—
|
|
7,894
|
|
||||
2026
|
14,966
|
|
—
|
|
—
|
|
14,966
|
|
||||
2027
|
10,638
|
|
—
|
|
—
|
|
10,638
|
|
||||
2028
|
25,971
|
|
—
|
|
—
|
|
25,971
|
|
||||
2029
|
23,444
|
|
—
|
|
—
|
|
23,444
|
|
||||
2030
|
7,282
|
|
—
|
|
—
|
|
7,282
|
|
||||
2031
|
45,351
|
|
—
|
|
—
|
|
45,351
|
|
||||
2032
|
74,855
|
|
—
|
|
—
|
|
74,855
|
|
||||
2033
|
64,883
|
|
—
|
|
—
|
|
64,883
|
|
||||
2034
|
58,689
|
|
—
|
|
—
|
|
58,689
|
|
||||
2035
|
55,266
|
|
—
|
|
—
|
|
55,266
|
|
||||
2036
|
50,503
|
|
—
|
|
—
|
|
50,503
|
|
||||
2037
|
27,333
|
|
—
|
|
—
|
|
27,333
|
|
||||
2038
|
9,025
|
|
—
|
|
—
|
|
9,025
|
|
||||
No Expiry
|
—
|
|
32,407
|
|
—
|
|
32,407
|
|
||||
|
$
|
476,100
|
|
$
|
32,407
|
|
$
|
68,980
|
|
$
|
577,487
|
|
Capital losses with no expiry
|
64,837
|
|
—
|
|
—
|
|
64,837
|
|
||||
Tax effect of total losses not recognized
|
$
|
137,268
|
|
$
|
5,538
|
|
$
|
17,246
|
|
$
|
160,052
|
|
Voting common shares
|
Number of Shares
|
|
Total
|
|
|
At January 1, 2017
|
143,317,014
|
|
$
|
2,819,101
|
|
Shares issued upon exercise of share options, for cash
|
48,529
|
|
586
|
|
|
Estimated fair value of share options exercised
|
—
|
|
176
|
|
|
Shares issued for acquisition of Integra
|
15,436,179
|
|
188,061
|
|
|
At December 31, 2017
|
158,801,722
|
|
$
|
3,007,924
|
|
At December 31, 2018
|
158,801,722
|
|
$
|
3,007,924
|
|
|
December 31, 2018
|
|
December 31, 2017
|
|
||
|
|
|
||||
Share options
|
$
|
3,392
|
|
$
|
6,736
|
|
Restricted shares with no performance criteria
|
1,425
|
|
2,716
|
|
||
Restricted shares with performance criteria
|
175
|
|
—
|
|
||
Deferred units
|
(277
|
)
|
(1,023
|
)
|
||
Performance shares
|
2,274
|
|
2,789
|
|
||
|
$
|
6,989
|
|
$
|
11,218
|
|
(a)
|
Share option plans
|
|
2018
|
2017
|
||||||
|
Weighted
average price Cdn$ |
|
Number of
options |
|
Weighted
average price Cdn$ |
|
Number of
options |
|
At January 1,
|
30.18
|
|
5,944,510
|
|
37.75
|
|
5,779,205
|
|
Regular options granted
|
6.20
|
|
1,078,797
|
|
22.15
|
|
1,160,905
|
|
Exercised
|
—
|
|
—
|
|
16.10
|
|
(48,529
|
)
|
Expired
|
51.46
|
|
(870,904
|
)
|
73.89
|
|
(788,672
|
)
|
Forfeited
|
26.99
|
|
(561,175
|
)
|
33.78
|
|
(158,399
|
)
|
At December 31,
|
22.56
|
|
5,591,228
|
|
30.18
|
|
5,944,510
|
|
|
|
December 31, 2018
|
|||||||||||||
|
|
Total options outstanding
|
|
Exercisable options
|
|||||||||||
Range of
exercise price Cdn$ |
|
Shares
|
|
|
Weighted
average remaining contractual life (years) |
|
|
Weighted
average exercise price Cdn$ |
|
|
Shares
|
|
|
Weighted
average exercise price Cdn$ |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
$6.00 to $6.99
|
|
1,070,517
|
|
|
4.3
|
|
|
6.20
|
|
|
—
|
|
|
—
|
|
$16.00 to $16.99
|
|
1,350,527
|
|
|
2.1
|
|
|
16.10
|
|
|
1,011,048
|
|
|
16.10
|
|
$18.00 to $18.99
|
|
2,591
|
|
|
2.1
|
|
|
18.55
|
|
|
1,727
|
|
|
18.55
|
|
$19.00 to $19.99
|
|
20,000
|
|
|
1.8
|
|
|
19.80
|
|
|
20,000
|
|
|
19.80
|
|
$21.00 to $21.99
|
|
20,000
|
|
|
2.8
|
|
|
21.15
|
|
|
13,333
|
|
|
21.15
|
|
$22.00 to $22.99
|
|
932,971
|
|
|
3.1
|
|
|
22.00
|
|
|
437,527
|
|
|
22.00
|
|
$23.00 to $23.99
|
|
151,933
|
|
|
3.2
|
|
|
23.18
|
|
|
50,643
|
|
|
23.18
|
|
$29.00 to $29.99
|
|
2,449
|
|
|
2.4
|
|
|
29.55
|
|
|
1,632
|
|
|
29.55
|
|
$30.00 to $30.99
|
|
27,800
|
|
|
0.8
|
|
|
30.75
|
|
|
27,800
|
|
|
30.75
|
|
$31.00 to $31.99
|
|
4,828
|
|
|
0.3
|
|
|
31.90
|
|
|
4,828
|
|
|
31.90
|
|
$33.00 to $33.99
|
|
1,159,157
|
|
|
1.1
|
|
|
33.35
|
|
|
1,159,157
|
|
|
33.35
|
|
$34.00 to $34.99
|
|
20,000
|
|
|
0.3
|
|
|
34.15
|
|
|
20,000
|
|
|
34.15
|
|
$35.00 to $35.99
|
|
20,000
|
|
|
1.0
|
|
|
35.40
|
|
|
20,000
|
|
|
35.40
|
|
$39.00 to $39.99
|
|
808,455
|
|
|
0.2
|
|
|
39.20
|
|
|
808,455
|
|
|
39.20
|
|
|
|
5,591,228
|
|
|
2.2
|
|
|
22.56
|
|
|
3,576,150
|
|
|
28.13
|
|
(b)
|
Restricted share unit plan
|
|
2018
|
|
2017
|
|
At January 1,
|
341,198
|
|
248,013
|
|
Granted
|
214,859
|
|
187,366
|
|
Redeemed
|
(181,491
|
)
|
(69,968
|
)
|
Forfeited
|
(41,447
|
)
|
(24,213
|
)
|
At December 31,
|
333,119
|
|
341,198
|
|
|
2018
|
|
At January 1,
|
—
|
|
Granted
|
167,976
|
|
Forfeited
|
(15,049
|
)
|
At December 31,
|
152,927
|
|
(d)
|
Performance share units plan
|
|
2018
|
|
2017
|
|
At January 1,
|
381,293
|
|
286,188
|
|
Granted
|
261,522
|
|
113,938
|
|
Expired
|
(118,605
|
)
|
—
|
|
Forfeited
|
(39,311
|
)
|
(18,833
|
)
|
At December 31,
|
484,899
|
|
381,293
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
||
Changes in non-cash working capital
|
|
|
|
||||
Accounts receivable and other
|
$
|
(1,471
|
)
|
|
$
|
(2,456
|
)
|
Inventories
|
20,775
|
|
|
(31,437
|
)
|
||
Accounts payable and accrued liabilities
|
(14,242
|
)
|
|
(1,862
|
)
|
||
Total
|
$
|
5,062
|
|
|
$
|
(35,755
|
)
|
Supplementary cash flow information
|
|
|
|
||||
Income taxes paid
|
$
|
36,879
|
|
|
$
|
42,293
|
|
Interest paid
|
$
|
36,750
|
|
|
$
|
36,750
|
|
(a)
|
Market risk
|
(i)
|
Foreign exchange risk
|
2018
|
Canadian dollar
|
Australian dollar
|
Euro
|
Turkish lira
|
Chinese renminbi
|
Serbian dinar
|
Romanian lei
|
British pound
|
Brazilian real
|
||||||||||||||||||
(Amounts in thousands)
|
$
|
$
|
€
|
TRY
|
¥
|
din
|
lei
|
£
|
R$
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Cash and cash equivalents
|
19,030
|
|
433
|
|
6,861
|
|
2,664
|
|
72
|
|
8,848
|
|
1,904
|
|
923
|
|
4,539
|
|
|||||||||
Marketable securities
|
3,509
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Accounts receivable and other
|
23,672
|
|
3
|
|
15,552
|
|
54,772
|
|
—
|
|
8,386
|
|
4,487
|
|
—
|
|
9,970
|
|
|||||||||
Accounts payable and accrued liabilities
|
(102,027
|
)
|
(7
|
)
|
(34,488
|
)
|
(44,516
|
)
|
—
|
|
(1,004
|
)
|
(2,286
|
)
|
—
|
|
(2,941
|
)
|
|||||||||
Other non-current liability
|
(10,064
|
)
|
—
|
|
(9,191
|
)
|
(15,877
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Net balance
|
(65,880
|
)
|
429
|
|
(21,266
|
)
|
(2,957
|
)
|
72
|
|
16,230
|
|
4,105
|
|
923
|
|
11,568
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Equivalent in U.S. dollars
|
$
|
(48,292
|
)
|
$
|
302
|
|
$
|
(24,334
|
)
|
$
|
(562
|
)
|
$
|
11
|
|
$
|
157
|
|
$
|
1,010
|
|
$
|
1,180
|
|
$
|
2,982
|
|
2017
|
Canadian dollar
|
Australian dollar
|
Euro
|
Turkish lira
|
Chinese renminbi
|
Serbian Dinar
|
Romanian lei
|
British pound
|
Brazilian real
|
||||||||||||||||||
(Amounts in thousands)
|
$
|
$
|
€
|
TRY
|
¥
|
din
|
lei
|
£
|
R$
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Cash and cash equivalents
|
18,280
|
|
482
|
|
13,030
|
|
4,965
|
|
77
|
|
4,845
|
|
9,730
|
|
366
|
|
15,991
|
|
|||||||||
Marketable securities
|
6,286
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Accounts receivable and other
|
13,706
|
|
4
|
|
24,508
|
|
60,111
|
|
—
|
|
43,157
|
|
7,542
|
|
—
|
|
12,547
|
|
|||||||||
Accounts payable and accrued liabilities
|
(30,900
|
)
|
(42
|
)
|
(45,751
|
)
|
(50,099
|
)
|
—
|
|
(9,000
|
)
|
(6,174
|
)
|
—
|
|
(5,559
|
)
|
|||||||||
Other non-current liability
|
(1,269
|
)
|
—
|
|
(6,516
|
)
|
(17,999
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Net balance
|
6,103
|
|
444
|
|
(14,729
|
)
|
(3,022
|
)
|
77
|
|
39,002
|
|
11,098
|
|
366
|
|
22,979
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Equivalent in U.S. dollars
|
$
|
4,865
|
|
$
|
347
|
|
$
|
(17,664
|
)
|
$
|
(802
|
)
|
$
|
12
|
|
$
|
394
|
|
$
|
2,874
|
|
$
|
495
|
|
$
|
6,946
|
|
(iii)
|
Interest rate risk
|
(b)
|
Credit risk
|
(c)
|
Liquidity risk
|
|
2019
|
|
2020
|
|
2021
|
|
2022 and later
|
|
||||
|
|
|
|
|
||||||||
Operating leases
|
$
|
9,305
|
|
$
|
8,145
|
|
$
|
7,794
|
|
$
|
39,446
|
|
Purchase obligations
|
30,883
|
|
234
|
|
148
|
|
278
|
|
||||
Totals
|
$
|
40,188
|
|
$
|
8,379
|
|
$
|
7,942
|
|
$
|
39,724
|
|
|
2018
|
|
|
2017
|
|
||
|
|
|
|
||||
Salaries and other short-term employee benefits
|
$
|
6,191
|
|
|
$
|
8,908
|
|
Defined benefit pension plan
|
268
|
|
|
754
|
|
||
Share based payments
|
2,632
|
|
|
5,920
|
|
||
Termination benefits
|
1,762
|
|
|
607
|
|
||
|
$
|
10,853
|
|
|
$
|
16,189
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||
|
Carrying amount
|
|
Fair value
|
|
|
Carrying amount
|
|
Fair value
|
|
||||
Financial Assets
|
|
|
|
|
|
||||||||
Fair value through OCI
|
|
|
|
|
|
||||||||
Marketable securities
|
$
|
2,572
|
|
$
|
2,572
|
|
|
$
|
5,010
|
|
$
|
5,010
|
|
Amortized cost
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
286,312
|
|
286,312
|
|
|
479,501
|
|
479,501
|
|
||||
Term deposit
|
6,646
|
|
6,646
|
|
|
5,508
|
|
5,508
|
|
||||
Restricted cash
|
13,745
|
|
13,745
|
|
|
12,927
|
|
12,927
|
|
||||
Accounts receivable and other
|
46,196
|
|
46,196
|
|
|
33,627
|
|
33,627
|
|
||||
Other assets
|
3,924
|
|
3,924
|
|
|
4,900
|
|
4,900
|
|
||||
Financial Liabilities at amortized cost
|
|
|
|
|
|
||||||||
Accounts payable and accrued liabilities
|
140,878
|
|
140,878
|
|
|
110,541
|
|
110,541
|
|
||||
Debt
|
$
|
595,977
|
|
$
|
549,606
|
|
|
$
|
593,783
|
|
$
|
595,698
|
|
•
|
Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
|
•
|
Level 2 – Inputs that are observable, either directly or indirectly, but do not qualify as Level 1 inputs (i.e., quoted prices for similar assets or liabilities).
|
•
|
Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
||
|
|
|
|
||||
Gold revenue
|
$
|
385,953
|
|
|
$
|
333,342
|
|
Zinc revenue
|
39,564
|
|
|
30,575
|
|
||
Lead revenue
|
21,625
|
|
|
18,272
|
|
||
Silver revenue
|
11,482
|
|
|
6,987
|
|
||
Iron revenue
|
—
|
|
|
2,347
|
|
||
Revenue from contracts with customers
|
$
|
458,624
|
|
|
$
|
391,523
|
|
Gain (loss) on revaluation of derivatives in trade receivables
|
392
|
|
|
(117
|
)
|
||
|
$
|
459,016
|
|
|
$
|
391,406
|
|
|
Turkey
|
|
Greece
|
|
Brazil
|
|
Total
|
|
||||
|
|
|
|
|
||||||||
Gold revenue - dore
|
$
|
220,382
|
|
$
|
—
|
|
$
|
—
|
|
$
|
220,382
|
|
Gold revenue - concentrate
|
123,960
|
|
41,611
|
|
—
|
|
165,571
|
|
||||
Silver revenue - dore
|
1,245
|
|
—
|
|
—
|
|
1,245
|
|
||||
Silver revenue - concentrate
|
2,941
|
|
7,296
|
|
—
|
|
10,237
|
|
||||
Lead concentrate
|
—
|
|
21,625
|
|
—
|
|
21,625
|
|
||||
Zinc concentrate
|
—
|
|
39,564
|
|
—
|
|
39,564
|
|
||||
|
$
|
348,528
|
|
$
|
110,096
|
|
$
|
—
|
|
$
|
458,624
|
|
|
Turkey
|
|
Greece
|
|
Brazil
|
|
Total
|
|
||||
|
|
|
|
|
||||||||
Gold revenue - dore
|
$
|
215,739
|
|
$
|
—
|
|
$
|
—
|
|
$
|
215,739
|
|
Gold revenue - concentrate
|
117,603
|
|
—
|
|
—
|
|
117,603
|
|
||||
Silver revenue - dore
|
1,400
|
|
—
|
|
—
|
|
1,400
|
|
||||
Silver revenue - concentrate
|
3,165
|
|
2,422
|
|
—
|
|
5,587
|
|
||||
Lead concentrate
|
—
|
|
18,272
|
|
—
|
|
18,272
|
|
||||
Zinc concentrate
|
—
|
|
30,575
|
|
—
|
|
30,575
|
|
||||
Iron ore concentrate
|
—
|
|
—
|
|
2,347
|
|
2,347
|
|
||||
|
$
|
337,907
|
|
$
|
51,269
|
|
$
|
2,347
|
|
$
|
391,523
|
|
|
2018
|
|
|
2017
|
|
||
|
|
|
|
||||
Labour
|
$
|
74,023
|
|
|
$
|
52,670
|
|
Fuel
|
14,910
|
|
|
23,241
|
|
||
Reagents
|
40,587
|
|
|
40,839
|
|
||
Electricity
|
14,288
|
|
|
12,132
|
|
||
Mining contractors
|
17,107
|
|
|
12,575
|
|
||
Operating and maintenance supplies and services
|
31,772
|
|
|
56,342
|
|
||
Site general and administrative costs
|
33,667
|
|
|
23,621
|
|
||
Inventory change
|
33,459
|
|
|
(36,501
|
)
|
||
Royalties, production taxes and selling expenses
|
8,167
|
|
|
7,821
|
|
||
|
$
|
267,980
|
|
|
$
|
192,740
|
|
|
2018
|
|
2017
|
|
|
|
|
||
Weighted average number of ordinary shares used in the calculation
|
|
|
||
of basic earnings per share
|
158,509
|
|
150,531
|
|
Diluted impact of stock options
|
—
|
|
—
|
|
|
|
|
||
Weighted average number of ordinary shares used in the calculation
|
|
|
||
of diluted earnings per share
|
158,509
|
|
150,531
|
|
2018
|
Turkey
|
|
Canada
|
|
Greece
|
|
Romania
|
|
Brazil
|
|
Other
|
|
Total
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
Information about profit and loss
|
|
|
|
|
|
|
|
||||||||||||||
Revenues
|
$
|
348,528
|
|
$
|
—
|
|
$
|
110,488
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
459,016
|
|
Production costs
|
174,081
|
|
—
|
|
93,899
|
|
—
|
|
—
|
|
—
|
|
267,980
|
|
|||||||
Inventory write-down
|
—
|
|
—
|
|
1,465
|
|
—
|
|
—
|
|
—
|
|
1,465
|
|
|||||||
Depreciation
|
75,854
|
|
—
|
|
29,424
|
|
—
|
|
—
|
|
454
|
|
105,732
|
|
|||||||
Earnings (loss) from mine operations
|
$
|
98,593
|
|
$
|
—
|
|
$
|
(14,300
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
(454
|
)
|
$
|
83,839
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other material items of income and expense
|
|
|
|
|
|
|
|
||||||||||||||
Impairment of property, plant and equipment
|
$
|
117,570
|
|
$
|
—
|
|
$
|
330,238
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
447,808
|
|
Exploration and evaluation expenses
|
840
|
|
103
|
|
15,947
|
|
13,499
|
|
1,728
|
|
1,725
|
|
33,842
|
|
|||||||
Income tax expense (recovery)
|
45,238
|
|
(3,415
|
)
|
(129,213
|
)
|
(2,716
|
)
|
3,608
|
|
—
|
|
(86,498
|
)
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
Additions to property, plant and equipment during the period
|
$
|
68,737
|
|
$
|
189,867
|
|
$
|
61,716
|
|
$
|
419
|
|
$
|
6,612
|
|
$
|
802
|
|
$
|
328,153
|
|
Capitalised interest
|
$
|
—
|
|
$
|
13,160
|
|
$
|
23,590
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
36,750
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Information about assets and liabilities
|
|
|
|
|
|
|
|
||||||||||||||
Property, plant and equipment
(*)
|
$
|
721,449
|
|
$
|
582,895
|
|
$
|
2,063,798
|
|
$
|
416,197
|
|
$
|
203,075
|
|
$
|
1,062
|
|
$
|
3,988,476
|
|
Goodwill
|
—
|
|
92,591
|
|
—
|
|
—
|
|
—
|
|
—
|
|
92,591
|
|
|||||||
|
$
|
721,449
|
|
$
|
675,486
|
|
$
|
2,063,798
|
|
$
|
416,197
|
|
$
|
203,075
|
|
$
|
1,062
|
|
$
|
4,081,067
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Debt
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
595,977
|
|
$
|
595,977
|
|
2017
|
Turkey
|
|
Canada
|
|
Greece
|
|
Romania
|
|
Brazil
|
|
Other
|
|
Total
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
Information about profit and loss
|
|
|
|
|
|
|
|
||||||||||||||
Revenues
|
$
|
337,907
|
|
$
|
—
|
|
$
|
51,152
|
|
$
|
—
|
|
$
|
2,347
|
|
$
|
—
|
|
$
|
391,406
|
|
Production costs
|
145,573
|
|
—
|
|
45,343
|
|
—
|
|
1,824
|
|
—
|
|
192,740
|
|
|||||||
Inventory write-down
|
—
|
|
—
|
|
444
|
|
—
|
|
—
|
|
—
|
|
444
|
|
|||||||
Depreciation
|
71,389
|
|
6
|
|
466
|
|
—
|
|
—
|
|
269
|
|
72,130
|
|
|||||||
Earnings (loss) from mine operations
|
$
|
120,945
|
|
$
|
(6
|
)
|
$
|
4,899
|
|
$
|
—
|
|
$
|
523
|
|
$
|
(269
|
)
|
$
|
126,092
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other material items of income and expense
|
|
|
|
|
|
|
|
||||||||||||||
Other write-down (write-up) of assets
|
$
|
29,619
|
|
$
|
—
|
|
$
|
6,661
|
|
$
|
10,454
|
|
$
|
(79
|
)
|
$
|
42
|
|
$
|
46,697
|
|
Exploration and evaluation expenses
|
3,203
|
|
6,616
|
|
7,512
|
|
10,168
|
|
4,733
|
|
6,029
|
|
38,261
|
|
|||||||
Income tax expense (recovery)
|
30,139
|
|
1,532
|
|
(4,603
|
)
|
(8,026
|
)
|
(1,087
|
)
|
1,428
|
|
19,383
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
Additions to property, plant and equipment during the period
|
$
|
65,013
|
|
$
|
34,575
|
|
$
|
197,788
|
|
$
|
2,006
|
|
$
|
10,029
|
|
$
|
827
|
|
$
|
310,238
|
|
Capitalised interest
|
$
|
—
|
|
$
|
1,245
|
|
$
|
35,505
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
36,750
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Information about assets and liabilities
|
|
|
|
|
|
|
|
||||||||||||||
Property, plant and equipment (*)
|
$
|
835,422
|
|
$
|
416,795
|
|
$
|
2,362,107
|
|
$
|
415,856
|
|
$
|
196,467
|
|
$
|
750
|
|
$
|
4,227,397
|
|
Goodwill
|
—
|
|
92,591
|
|
—
|
|
—
|
|
—
|
|
—
|
|
92,591
|
|
|||||||
|
$
|
835,422
|
|
$
|
509,386
|
|
$
|
2,362,107
|
|
$
|
415,856
|
|
$
|
196,467
|
|
$
|
750
|
|
$
|
4,319,988
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Debt
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
593,783
|
|
$
|
593,783
|
|
Management’s Discussion and Analysis
|
|
For the years ended December 31, 2018 and 2017
|
|
|
|
|
|
Suite 1188, 550 Burrard Street
|
|
|
Vancouver, British Columbia
|
|
|
V6C 2B5
|
|
|
|
|
|
Phone: (604) 687-4018
|
|
|
Fax: (604) 687-4026
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
Section
|
Page
|
|
|
|
|
4
|
|
|
|
|
|
8
|
|
|
|
|
|
10
|
|
|
|
|
|
Review of Financial Results
|
12
|
|
|
|
|
2019 - 2020 Outlook
|
15
|
|
|
|
|
Operations Update
|
16
|
|
|
|
|
Development Projects
|
20
|
|
|
|
|
Exploration
|
22
|
|
|
|
|
Non-IFRS Measures
|
23
|
|
|
|
|
Quarterly Results
|
29
|
|
|
|
|
Financial Condition & Liquidity
|
30
|
|
|
|
|
Capital Resources
|
30
|
|
|
|
|
Debt
|
31
|
|
|
|
|
Equity
|
32
|
|
|
|
|
Managing Risk
|
33
|
|
|
|
|
Accounting Matters
|
45
|
|
|
|
|
Accounting Policies
|
47
|
|
|
|
|
Internal Controls over Financial Reporting
|
50
|
|
|
|
|
Qualified Person
|
51
|
|
|
|
|
Forward-looking Information and Risks
|
51
|
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
•
|
Perama Hill (100%), gold-silver, Greece;
|
•
|
Certej (80.5%), gold, Romania; and
|
•
|
Tocantinzinho (100%), gold, Brazil.
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
2018
|
|
2017
|
|
||
Revenue
|
|
$459.0
|
|
|
$391.4
|
|
Gold revenue
|
|
$386.0
|
|
|
$333.3
|
|
Gold produced
|
349,147
|
|
292,971
|
|
||
Gold sold (oz)
6
|
304,256
|
|
264,080
|
|
||
Average realized gold price ($/oz)
|
|
$1,269
|
|
|
$1,262
|
|
Cash operating costs ($/oz)
5
|
625
|
|
509
|
|
||
Total cash costs ($/oz)
5
|
650
|
|
534
|
|
||
All-in sustaining cost ($/oz)
5
|
994
|
|
922
|
|
||
Net earnings from gold mining operations
|
83.5
|
|
121.2
|
|
||
Net loss
1, 2
|
(361.9
|
)
|
(9.9
|
)
|
||
Net loss per share – basic ($/share)
1, 2
|
(2.28
|
)
|
(0.07
|
)
|
||
Adjusted net earnings (loss)
1, 2, 7
|
(28.6
|
)
|
15.2
|
|
||
Adjusted net earnings (loss) per share ($/share)
1, 2
|
(0.17
|
)
|
0.10
|
|
||
Cash flow from operating activities
3
|
61.3
|
|
66.5
|
|
||
Dividends paid
|
—
|
|
(10.6
|
)
|
||
Cash, cash equivalents and term deposits
|
293.0
|
|
485.0
|
|
||
Total assets
|
4,628.9
|
|
5,090.3
|
|
||
Total long-term financial liabilities
4
|
|
$710.2
|
|
|
$703.7
|
|
(1)
|
Includes discontinued operations - China in 2017.
|
(2)
|
Attributable to shareholders of the Company.
|
(3)
|
Before changes in non-cash working capital.
|
(4)
|
Includes all long-term liabilities except deferred income tax liabilities.
|
(5)
|
By-product revenues are off-set against costs.
|
(6)
|
Excludes pre-commercial sales from Lamaque and Olympias.
|
(7)
|
See reconciliation of net earnings to adjusted net earnings on pg. 28.
|
1
Throughout this MD&A we use cash operating cost per ounce sold, all-in sustaining cost per ounce sold, earnings from gold mining operations, adjusted net earnings (loss), average realized price per ounce sold, earnings before interest, taxes and depreciation and amortization from continuing operations, adjusted earnings before interest, taxes and depreciation and amortization from continuing operations, working capital, non-cash operating costs, non-cash operating costs per ounce sold and cash flow from operations before changes in non-cash working capital as additional measures of Company performance. These are non-IFRS measures. Please see pages 22 to 28 for explanations and discussion of these non-IFRS measures.
|
8
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
2018
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
2018
|
|
|||||
Revenue
|
|
$131.9
|
|
|
$153.2
|
|
|
$81.1
|
|
|
$92.8
|
|
|
$459.0
|
|
Gold revenue
|
|
$115.4
|
|
|
$121.3
|
|
|
$76.0
|
|
|
$73.3
|
|
|
$386.0
|
|
Gold produced (oz)
|
86,634
|
|
99,105
|
|
84,783
|
|
75,887
|
|
349,147
|
|
|||||
Gold sold (oz)
5
|
86,587
|
|
94,224
|
|
64,589
|
|
58,856
|
|
304,256
|
|
|||||
Average realized gold price ($/oz)
|
|
$1,333
|
|
|
$1,287
|
|
|
$1,177
|
|
|
$1,245
|
|
|
$1,269
|
|
Cash operating cost ($/oz)
4
|
571
|
|
587
|
|
754
|
|
626
|
|
625
|
|
|||||
Total cash cost ($/oz)
4
|
598
|
|
610
|
|
762
|
|
666
|
|
650
|
|
|||||
All-in sustaining cost ($/oz)
4
|
878
|
|
934
|
|
1,112
|
|
1,200
|
|
994
|
|
|||||
Net earnings from gold mining operations
|
34.7
|
|
30.1
|
|
4.7
|
|
14.0
|
|
83.5
|
|
|||||
Net earnings (loss)
1, 2
|
8.7
|
|
(24.4
|
)
|
(128.0
|
)
|
(218.2
|
)
|
(361.9
|
)
|
|||||
Net earnings (loss) per share – basic ($/share)
1, 2
|
0.06
|
|
(0.15
|
)
|
(0.81
|
)
|
(1.38
|
)
|
(2.28
|
)
|
|||||
Adjusted net earnings (loss)
1, 2, 6
|
14.0
|
|
(1.8
|
)
|
(21.9
|
)
|
(18.9
|
)
|
(28.6
|
)
|
|||||
Adjusted net earnings (loss) per share ($/share)
1, 2
|
0.09
|
|
(0.01
|
)
|
(0.14
|
)
|
(0.11
|
)
|
(0.17
|
)
|
|||||
Cash flow from operating activities
3
|
37.9
|
|
23.5
|
|
23.2
|
|
(23.3
|
)
|
61.3
|
|
|||||
Cash, cash equivalents and term deposits
|
|
$459.7
|
|
|
$429.8
|
|
|
$385.0
|
|
|
$293.0
|
|
|
$293.0
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
||||||||||
2017
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
2017
|
|
|||||
Revenue
|
|
$111.9
|
|
|
$82.7
|
|
|
$95.4
|
|
|
$101.4
|
|
|
$391.4
|
|
Gold revenue
|
|
$90.5
|
|
|
$72.2
|
|
|
$84.4
|
|
|
$86.2
|
|
|
$333.3
|
|
Gold produced (oz)
|
75,172
|
|
63,692
|
|
70,053
|
|
83,887
|
|
292,971
|
|
|||||
Gold sold (oz)
5
|
74,068
|
|
57,206
|
|
65,439
|
|
67,367
|
|
264,080
|
|
|||||
Average realized gold price ($/oz)
|
|
$1,222
|
|
|
$1,262
|
|
|
$1,290
|
|
|
$1,280
|
|
|
$1,262
|
|
Cash operating cost ($/oz)
4
|
466
|
|
484
|
|
508
|
|
577
|
|
509
|
|
|||||
Total cash cost ($/oz)
4
|
483
|
|
502
|
|
547
|
|
602
|
|
534
|
|
|||||
All-in sustaining cost ($/oz)
4
|
791
|
|
846
|
|
925
|
|
1,104
|
|
922
|
|
|||||
Net earnings from gold mining operations
|
37.0
|
|
28.1
|
|
30.1
|
|
26.0
|
|
121.2
|
|
|||||
Net earnings (loss)
1, 2
|
3.8
|
|
11.2
|
|
(4.2
|
)
|
(20.7
|
)
|
(9.9
|
)
|
|||||
Net earnings (loss) per share – basic ($/share)
1, 2
|
0.03
|
|
0.08
|
|
(0.03
|
)
|
(0.15
|
)
|
(0.07
|
)
|
|||||
Adjusted net earnings (loss)
1, 2
|
8.0
|
|
6.3
|
|
1.3
|
|
(0.4
|
)
|
15.2
|
|
|||||
Adjusted net earnings (loss) per share ($/share)
1, 2
|
0.06
|
|
0.04
|
|
0.01
|
|
(0.02
|
)
|
0.10
|
|
|||||
Cash flow from operating activities
3
|
28.2
|
|
16.9
|
|
16.3
|
|
5.1
|
|
66.5
|
|
|||||
Cash, cash equivalents and term deposits
|
|
$873.9
|
|
|
$752.1
|
|
|
$546.1
|
|
|
$485.0
|
|
|
$485.0
|
|
(1)
|
Includes discontinued operations - China in 2017.
|
(2)
|
Attributable to shareholders of the Company.
|
(3)
|
Before changes in non-cash working capital.
|
(4)
|
By-product revenues are off-set against costs.
|
(5)
|
Excludes pre-commercial sales from Lamaque and Olympias.
|
(6)
|
See reconciliation of net earnings to adjusted net earnings on pg. 28.
|
1
Throughout this MD&A we use cash operating cost per ounce sold, all-in sustaining cost per ounce sold, earnings from gold mining operations, adjusted net earnings (loss), average realized price per ounce sold, earnings before interest, taxes and depreciation and amortization from continuing operations, adjusted earnings before interest, taxes and depreciation and amortization from continuing operations, working capital, non-cash operating costs, non-cash operating costs per ounce sold and cash flow from operations before changes in non-cash working capital as additional measures of Company performance. These are non-IFRS measures. Please see pages 22 to 28 for explanations and discussion of these non-IFRS measures.
|
9
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
•
|
Solid year for gold production
:
349,147
ounces of gold produced in 2018 (2017:
292,971
ounces) including pre-commercial production of
35,350
ounces from Lamaque; exceeded original 2018 production guidance of 290,000-333,000 ounces of gold, and was at the upper threshold of revised guidance of 345,000 - 350,000 ounces of gold.
|
•
|
Revenue growth:
Total revenue from continuing operations during the year was $
459.0
million (2017: $
391.4
million). Gold revenue from continuing operations was $
386.0
million (2017: $
333.3
million) on sales of
304,256
ounces of gold at an average realized gold price of $
1,269
per ounce (2017:
264,080
ounces at $
1,262
per ounce).
|
•
|
Cash operating costs consistent with guidance
: Cash operating costs were $
625
per ounce sold for 2018 (2017: $
509
per ounce) and were in-line with expectations of $600-650 per ounce.
|
•
|
Continued solid financial liquidity
: The Company closed the year with total liquidity of approximately $543 million, including $293 million in cash, cash equivalents and term deposits, and $250 million in an undrawn line of credit.
|
•
|
Increased cash flow provided by continuing operations
: Net cash provided by operating activities of continuing operations was $
66.3
million in 2018 (2017: $
30.8
million).
|
•
|
Net loss attributable to shareholders:
2018 Net loss attributable to shareholders of the Company from continuing operations was $
361.9
million or $
2.28
per share, mainly attributable to impairment adjustments of
$328.4
million, net of deferred tax,
for Olympias and Kisladag. Net loss attributable to shareholders of the Company from continuing operations in 2017 was $
7.1
million or $
0.07
per share. Adjusted net loss attributable to shareholders of the Company in 2018 was
$28.6
million, or $
0.17
per share (2017: Adjusted net earnings attributed to shareholders of the Company of $
15.2
million, or $
0.10
per share)
.
|
•
|
Startup of Olympias:
Olympias declared commercial production on December 31, 2017. In 2018 a total of
322,659
tonnes of ore were processed with an average grade of
7.75
g/t Au, resulting in
46,750
payable
ounces of gold produced, at operating cash costs of
$764
per ounce sold. Due to continued jurisdictional challenges in Greece and changes in the global markets for sale of concentrates, an impairment was recorded in Q4 2018 for the Olympias cash generating unit ("CGU") of
$330.2
million (
$247.7
million net of deferred tax).
|
•
|
Kisladag Heap Leach:
Production from the heap leach pad continued to beat expectations during the year. After the decision was announced to suspend placement of ore on the pad in Q2 2018, recoveries continued to improve, resulting in production of
172,009
ounces for the year. In Q3 2018, as a result of the completion of the feasibility study and the Board approval to advance the Kisladag mill project, a review of the useful lives of the Kisladag heap leach assets resulted in an impairment charge of
$117.6
million (
$94.1
million net of deferred income tax) recognized during the third quarter. In January 2019, the decision was announced to suspend the mill project and resume mining and stacking material on the heap leach pad.
|
•
|
Progress at Lamaque:
A total of
35,350
pre-commercial ounces were produced during the year, including the first gold pour from ore processed in the Sigma Mill in December 2018. $189.9 million in capital, including capitalized exploration was spent at Lamaque in 2018, offset by $39.7 million in pre-commercial revenues. The Company expects to be in commercial operation at Lamaque in Q1 2019.
|
•
|
Updated Reserves and Resources
:
As of September 30, 2018 total Proven and Probable Reserves of 389 million tonnes at 1.35 grams per tonne gold containing 16.9 million ounces of gold were reported.
|
1
Throughout this MD&A we use cash operating cost per ounce sold, all-in sustaining cost per ounce sold, earnings from gold mining operations, adjusted net earnings (loss), average realized price per ounce sold, earnings before interest, taxes and depreciation and amortization from continuing operations, adjusted earnings before interest, taxes and depreciation and amortization from continuing operations, working capital, non-cash operating costs, non-cash operating costs per ounce sold and cash flow from operations before changes in non-cash working capital as additional measures of Company performance. These are non-IFRS measures. Please see pages 22 to 28 for explanations and discussion of these non-IFRS measures.
|
10
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
•
|
Share consolidation:
In December 2018, the Company completed a 5:1 consolidation of the common shares of the Company.
|
•
|
Increased gold production and lower cost guidance for 2019:
The Company expects to resume Kisladag heap leach operations and be in commercial production at Lamaque in Q1 2019. Consequently, Eldorado has increased consolidated production guidance for 2019 to
390,000 – 420,000
ounces.
|
•
|
Cash operating costs are forecast to decline to $
550 – 600
per ounce sold.
|
•
|
AISC are forecasted in the range of $900 - 1000 per ounce sold.
|
•
|
Steady cash operating costs:
Q4 cash operating costs of $
626
per ounce and all-in sustaining costs of $
1,200
per ounce were in line with Q4 2017 including an increase of $21 per ounce in non-cash operating costs from inventory change ($
577
per ounce and $
1,104
per ounce, respectively, for 2017).
|
•
|
Updated Reserves and Resources:
As of September 30, 2018, total Proven and Probable Reserves of 389 million tonnes at 1.35 grams per tonne gold containing 16.9 million ounces were reported.
|
•
|
Added new reserves of 60,000 ounces of gold at Lamaque
|
•
|
Replaced depletion of 80,000 ounces of gold at Efemcukuru
|
•
|
Added 572,000 ounces of gold to the Lamaque Inferred Resources which now total 1.8 million ounces of gold.
|
•
|
Maiden Inferred Resource at Bolcana in Romania of 381 million tonnes at 0.53 grams per tonne gold and 0.18% copper containing 6.5 million ounces of gold and 686,000 tonnes of copper.
|
•
|
Lamaque gold pour:
A total of
16,046
ounces of gold were produced during the quarter, including the first gold pour from ore processed in the Sigma Mill in December 2018.
|
•
|
Olympias impairment
: Due to continued jurisdictional challenges in Greece and changes in the global markets for sale of concentrates, an impairment was recorded in Q4 for the Olympias CGU of
$330.2
million (
$247.7
million net of deferred tax).
|
1
Throughout this MD&A we use cash operating cost per ounce sold, all-in sustaining cost per ounce sold, earnings from gold mining operations, adjusted net earnings (loss), average realized price per ounce sold, earnings before interest, taxes and depreciation and amortization from continuing operations, adjusted earnings before interest, taxes and depreciation and amortization from continuing operations, working capital, non-cash operating costs, non-cash operating costs per ounce sold and cash flow from operations before changes in non-cash working capital as additional measures of Company performance. These are non-IFRS measures. Please see pages 22 to 28 for explanations and discussion of these non-IFRS measures.
|
11
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
|
12
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
|
13
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
|
14
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
Production (oz)
|
2018A
1
|
2019E
|
2020E
|
2021E
|
Kisladag
|
172,009
|
145,000 – 165,000
|
240,000 – 260,000
|
75,000 – 95,000
|
Lamaque
|
35,350
|
100,000 – 110,000
2
|
125,000 – 135,000
|
125,000 – 135,000
|
Efemcukuru
|
95,038
|
90,000 – 100,000
|
90,000 – 100,000
|
90,000 – 100,000
|
Olympias
|
46,750
|
50,000 – 55,000
|
55,000 – 65,000
|
55,000 – 65,000
|
Total
|
349,147
|
390,000
–
420,000
|
520,000
–
550,000
|
350,000
–
380,000
|
|
|
|
|
|
Consolidated Costs ($/oz sold)
|
2018A
|
2019E
|
2020E
|
2021E
|
Cash Operating Cost - C1 ($/oz sold)
|
$625
|
$550 – 600
|
$500 – 600
|
$600 – 700
|
Total Operating Cost - C2 ($/oz sold)
|
650
|
600 – 650
|
550 – 650
|
650 – 750
|
AISC ($/oz sold)
|
$994
|
$900 – 1,000
|
$800 – 900
|
$900 – 1,000
|
(1)
|
Included pre-commercial production from Lamaque and Olympias.
|
(2)
|
Includes ~10,000 ounces of pre-commercial production.
|
|
|
15
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
Gold Operations
|
3 months ended December 31,
|
|
12 months ended December 31,
|
|
|
||||||||
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2019 Outlook
|
|||||
Total
|
|
|
|
|
|
||||||||
Ounces produced
1
|
75,887
|
|
83,887
|
|
349,147
|
|
292,971
|
|
390,000 – 420,000
|
||||
Cash operating costs ($/oz)
|
|
$626
|
|
|
$577
|
|
|
$625
|
|
|
$509
|
|
$550 – 600
|
All in sustaining costs ($/oz)
3
|
1,200
|
|
1,104
|
|
994
|
|
922
|
|
900 – 1,000
|
||||
Sustaining capex
|
|
$17.2
|
|
|
$24.5
|
|
|
$54.4
|
|
|
$56.8
|
|
$80 – 105
|
Kisladag
|
|
|
|
|
|
||||||||
Ounces produced
|
28,196
|
|
44,357
|
|
172,009
|
|
171,358
|
|
145,000 – 165,000
|
||||
Cash operating costs ($/oz)
|
|
$547
|
|
|
$604
|
|
|
$662
|
|
|
$500
|
|
$570 – 620
|
All in sustaining costs ($/oz)
3
|
770
|
|
n/a
|
|
812
|
|
n/a
|
|
n/a
|
||||
Sustaining capex
|
|
$4.2
|
|
|
$11.4
|
|
|
$17.8
|
|
|
$27.9
|
|
$10 – 15
|
Efemcukuru
|
|
|
|
|
|
||||||||
Ounces produced
|
23,544
|
|
25,295
|
|
95,038
|
|
96,080
|
|
90,000 – 100,000
|
||||
Cash operating costs ($/oz)
|
|
$535
|
|
|
$525
|
|
|
$511
|
|
|
$524
|
|
$550 – 600
|
All in sustaining costs ($/oz)
3
|
1,041
|
|
n/a
|
|
834
|
|
n/a
|
|
n/a
|
||||
Sustaining capex
|
|
$9.1
|
|
|
$13.1
|
|
|
$24.4
|
|
|
$28.9
|
|
$15 – 20
|
Olympias
|
|
|
|
|
|
||||||||
Ounces produced
1
|
8,101
|
|
7,174
|
|
46,750
|
|
18,472
|
|
50,000 – 55,000
|
||||
Cash operating costs ($/oz)
|
|
$1,237
|
|
n/a
|
|
|
$764
|
|
n/a
|
|
$550 – 650
|
||
All in sustaining costs ($/oz)
3
|
2,038
|
|
n/a
|
|
1,297
|
|
n/a
|
|
n/a
|
||||
Sustaining capex
|
|
$3.9
|
|
n/a
|
|
|
$12.2
|
|
n/a
|
|
$20 – 25
|
||
Lamaque
|
|
|
|
|
|
||||||||
Ounces produced
2
|
16,046
|
|
7,061
|
|
35,350
|
|
7,061
|
|
100,000 – 110,000
|
||||
Cash operating costs ($/oz)
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
$550 – 600
|
||||
All in sustaining costs ($/oz)
3
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
||||
Sustaining capex
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
$35 – 45
|
(1)
|
Includes pre-commercial production in 2017 and 2018
|
(2)
|
Includes pre-commercial production at Lamaque.
|
(3)
|
The Company commenced reporting AISC by site in 2018.
|
|
|
16
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
Operating Data
|
3 months ended December 31,
|
|
12 months ended December 31,
|
|
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
||||
Tonnes placed on pad
|
(1)
|
|
3,332,990
|
|
3,206,494
|
|
13,061,861
|
|
||||
Average treated head grade (g/t Au)
|
(1)
|
|
1.02
|
|
1.13
|
|
1.03
|
|
||||
Gold (oz)
|
|
|
|
|
||||||||
- Produced
|
28,196
|
|
44,357
|
|
172,009
|
|
171,358
|
|
||||
- Sold
|
28,202
|
|
44,318
|
|
171,741
|
|
171,505
|
|
||||
Cash operating costs ($/oz)
|
|
$547
|
|
|
$604
|
|
|
$662
|
|
|
$500
|
|
All in sustaining costs ($/oz)
|
|
$770
|
|
n/a
|
|
|
$812
|
|
n/a
|
|
||
Financial Data
|
|
|
|
|
||||||||
Gold revenue
|
|
$34.8
|
|
|
$56.6
|
|
|
$220.4
|
|
|
$215.7
|
|
Depreciation and depletion
|
6.2
|
|
11.1
|
|
41.2
|
|
35.7
|
|
||||
Earnings from mining operations
|
12.0
|
|
17.8
|
|
61.9
|
|
90.5
|
|
||||
Sustaining capital expenditures
|
|
$4.2
|
|
|
$11.4
|
|
|
$17.8
|
|
|
$27.9
|
|
(1)
|
Suspension of adding ore to the pad in Q2 2018.
|
|
|
17
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
Operating Data
|
3 months ended December 31,
|
|
12 months ended December 31,
|
|
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
||||
Tonnes milled
|
127,991
|
|
119,135
|
|
499,121
|
|
481,649
|
|
||||
Average treated head grade (g/t Au)
|
6.55
|
|
7.45
|
|
6.76
|
|
7.01
|
|
||||
Average recovery rate (to concentrate)
|
93.3
|
%
|
95.8
|
%
|
94.2
|
%
|
94.8
|
%
|
||||
Gold (oz)
|
|
|
|
|
||||||||
- Produced
|
23,544
|
|
25,295
|
|
95,038
|
|
96,080
|
|
||||
- Sold
|
23,528
|
|
23,050
|
|
97,485
|
|
92,575
|
|
||||
Cash operating costs ($/oz)
|
|
$535
|
|
|
$525
|
|
|
$511
|
|
|
$524
|
|
All in sustaining costs ($/oz)
|
|
$1,041
|
|
n/a
|
|
|
$834
|
|
n/a
|
|
||
Financial Data
|
|
|
|
|
||||||||
Gold revenue
|
|
$30.0
|
|
|
$29.6
|
|
|
$124.0
|
|
|
$117.6
|
|
Depreciation and depletion
|
8.2
|
|
8.5
|
|
34.4
|
|
35.5
|
|
||||
Earnings from mining operations
|
8.2
|
|
8.2
|
|
36.9
|
|
30.7
|
|
||||
Sustaining capital expenditures
|
|
$9.1
|
|
|
$13.1
|
|
|
$24.4
|
|
|
$28.9
|
|
|
|
18
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
Operating Data
|
3 months ended December 31,
|
|
12 months ended December 31,
|
|
||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
||
Tonnes milled
|
61,838
|
|
n/a
|
|
322,659
|
|
n/a
|
|
||
Average treated head grade (g/t Au)
|
6.98
|
|
n/a
|
|
7.75
|
|
n/a
|
|
||
Average recovery rate (to concentrate)
|
78.1
|
%
|
n/a
|
|
82.0
|
%
|
n/a
|
|
||
Gold (oz)
(1)
|
|
|
|
|
||||||
- Produced
|
8,101
|
|
7,174
|
|
46,750
|
|
18,472
|
|
||
- Sold
|
7,126
|
|
n/a
|
|
35,030
|
|
n/a
|
|
||
Silver (oz)
(2)
|
126,504
|
|
119,774
|
|
563,267
|
|
351,606
|
|
||
Lead (t)
(2)
|
1,249
|
|
1,163
|
|
5,545
|
|
3,327
|
|
||
Zinc (t)
(2)
|
1,554
|
|
1,452
|
|
7,810
|
|
4,504
|
|
||
Cash operating costs ($/oz)
|
|
$1,237
|
|
n/a
|
|
|
$764
|
|
n/a
|
|
All in sustaining costs ($/oz)
|
|
$2,038
|
|
n/a
|
|
|
$1,297
|
|
n/a
|
|
Financial Data
|
|
|
|
|
||||||
Gold revenue
|
|
$7.7
|
|
n/a
|
|
|
$41.5
|
|
n/a
|
|
Silver and base metal revenue
|
6.3
|
|
n/a
|
|
27.1
|
|
n/a
|
|
||
Depreciation and depletion
|
7.4
|
|
n/a
|
|
29.1
|
|
n/a
|
|
||
Earnings (loss) from mining operations
|
(8.7
|
)
|
n/a
|
|
(15.3
|
)
|
n/a
|
|
||
Sustaining capital expenditures
|
|
$3.9
|
|
n/a
|
|
|
$12.2
|
|
n/a
|
|
(1)
|
Includes pre-commercial production in 2017 and payable ounces in Pb-Ag concentrate.
|
(2)
|
Payable metal produced.
|
|
|
19
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
Operating Data
|
3 months ended December 31,
|
|
12 months ended December 31,
|
|
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
||||
Tonnes ore processed (dry)
|
35,420
|
|
35,636
|
|
146,726
|
|
150,734
|
|
||||
Pb grade
|
6.5
|
%
|
5.1
|
%
|
6.7
|
%
|
5.8
|
%
|
||||
Zn grade
|
9.1
|
%
|
8.9
|
%
|
9.3
|
%
|
9.4
|
%
|
||||
Tonnes of concentrate produced
|
8,630
|
|
8,091
|
|
37,091
|
|
36,699
|
|
||||
Tonnes of concentrate sold
|
12,184
|
|
11,107
|
|
34,764
|
|
41,693
|
|
||||
Average realized concentrate price ($/t)
(1)
|
|
$1,090
|
|
|
$1,272
|
|
|
$1,204
|
|
|
$1,227
|
|
Cash operating costs ($/t of concentrate sold)
|
|
$1,113
|
|
|
$1,361
|
|
|
$1,135
|
|
|
$1,062
|
|
Financial Data
|
|
|
|
|
||||||||
Concentrate revenues
|
|
$13.3
|
|
|
$14.1
|
|
|
$41.9
|
|
|
$51.2
|
|
Depreciation and depletion
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
||||
Earnings from mining operations
|
(0.3
|
)
|
(1.2
|
)
|
1.4
|
|
5.4
|
|
||||
Sustaining capital expenditures
|
|
$0.0
|
|
|
$0.1
|
|
|
$0.0
|
|
|
$0.6
|
|
(1)
|
Average realized price includes mark to market adjustments.
|
|
|
20
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
|
21
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
|
22
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
Q4 2018
|
|
Q4 2017
|
|
2018
|
|
2017
|
|
||||
Production costs
|
|
$58.8
|
|
|
$56.8
|
|
|
$268.0
|
|
|
$192.7
|
|
Vila Nova and Stratoni production costs
|
13.7
|
|
15.1
|
|
40.2
|
|
47.1
|
|
||||
Production costs – excluding Vila Nova and Stratoni
|
45.1
|
|
41.7
|
|
227.8
|
|
145.6
|
|
||||
By-product credits and other adjustments
|
(5.9
|
)
|
(1.0
|
)
|
(30.1
|
)
|
(4.6
|
)
|
||||
Royalty expense and production taxes
|
(2.4
|
)
|
(1.8
|
)
|
(7.4
|
)
|
(6.7
|
)
|
||||
Cash operating cost
|
|
$36.8
|
|
|
$38.9
|
|
|
$190.3
|
|
|
$134.3
|
|
Gold ounces sold
|
58,856
|
|
67,367
|
|
304,256
|
|
264,080
|
|
||||
Cash operating cost per ounce sold
|
|
$626
|
|
|
$577
|
|
|
$625
|
|
|
$509
|
|
|
|
23
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
Direct mining costs
|
|
|
By-product credits
|
|
|
Refining and selling costs
|
|
|
Other
(1)
|
|
|
Cash operating costs
|
|
|
Cash operating cost / oz sold
|
|
|
Gold oz sold
|
|
||||||
Kisladag
|
|
$10.3
|
|
|
|
($0.3
|
)
|
|
|
$0.1
|
|
|
|
$5.3
|
|
|
|
$15.4
|
|
|
|
$547
|
|
|
28,202
|
|
Efemcukuru
|
12.0
|
|
|
(0.6
|
)
|
|
1.5
|
|
|
(0.3
|
)
|
|
12.6
|
|
|
535
|
|
|
23,528
|
|
||||||
Olympias
|
17.2
|
|
|
(6.3
|
)
|
|
1.7
|
|
|
(3.7
|
)
|
|
8.8
|
|
|
1,237
|
|
|
7,126
|
|
||||||
Total Consolidated
|
|
$39.5
|
|
|
|
($7.1
|
)
|
|
|
$3.2
|
|
|
|
$1.2
|
|
|
|
$36.8
|
|
|
|
$626
|
|
|
58,856
|
|
(1)
|
Other costs indicated are primarily inventory change costs.
|
|
Direct mining costs
|
|
|
By-product credits
|
|
|
Refining and selling costs
|
|
|
Other
(1)
|
|
|
Cash operating costs
|
|
|
Cash operating cost / oz sold
|
|
|
Gold oz sold
|
|
||||||
Kisladag
|
|
$61.4
|
|
|
|
($1.2
|
)
|
|
|
$0.6
|
|
|
|
$53.0
|
|
|
|
$113.7
|
|
|
|
$662
|
|
|
171,741
|
|
Efemcukuru
|
45.6
|
|
|
(2.9
|
)
|
|
6.2
|
|
|
0.9
|
|
|
49.8
|
|
|
511
|
|
|
97,485
|
|
||||||
Olympias
|
63.4
|
|
|
(27.1
|
)
|
|
7.7
|
|
|
(17.3
|
)
|
|
26.8
|
|
|
764
|
|
|
35,030
|
|
||||||
Total Consolidated
|
|
$170.4
|
|
|
|
($31.3
|
)
|
|
|
$14.5
|
|
|
|
$36.6
|
|
|
|
$190.2
|
|
|
|
$625
|
|
|
304,256
|
|
(1)
|
Other costs indicated are primarily inventory change costs.
|
|
Cash operating costs
|
Gold oz sold
|
|
Cash operating costs / oz sold
|
Non-cash operating costs
|
Non-cash operating costs /oz sold
|
Kisladag
|
$113.7
|
171,741
|
|
$662
|
$53.0
|
$309
|
|
|
24
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
Q4 2018
|
|
Q4 2017
|
|
2018
|
|
2017
|
|
||||
Cash operating costs
|
|
$36.8
|
|
|
$38.9
|
|
|
$190.3
|
|
|
$134.3
|
|
Royalties and production taxes
|
2.4
|
|
1.8
|
|
7.4
|
|
6.7
|
|
||||
Corporate and allocated G&A
|
12.3
|
|
8.6
|
|
44.3
|
|
44.5
|
|
||||
Exploration costs
|
1.3
|
|
0.5
|
|
2.8
|
|
1.1
|
|
||||
Reclamation costs and amortization
(1)
|
0.6
|
|
—
|
|
3.1
|
|
—
|
|
||||
Sustaining capital expenditure
|
17.2
|
|
24.5
|
|
54.4
|
|
56.8
|
|
||||
AISC
|
|
$70.6
|
|
|
$74.4
|
|
|
$302.3
|
|
|
$243.4
|
|
Gold ounces sold
|
58,856
|
|
67,367
|
|
304,256
|
|
264,080
|
|
||||
AISC per ounce sold
|
|
$1,200
|
|
|
$1,104
|
|
|
$994
|
|
|
$922
|
|
(1)
|
In 2017 reclamation costs and amortization were included in Corporate and allocated G&A.
|
|
Cash operating costs
|
|
Royalties & production taxes
|
|
Corporate & allocated G&A
|
|
Exploration costs
|
|
Reclamation costs and amortization
|
|
Sustaining capex
|
|
Total
AISC
|
|
Gold oz sold
|
|
Total
AISC
/ oz sold
|
|
||||||||
Kisladag
|
|
$15.4
|
|
|
$1.1
|
|
|
$0.8
|
|
|
$—
|
|
|
$0.2
|
|
|
$4.2
|
|
|
$21.7
|
|
28,202
|
|
|
$770
|
|
Efemcukuru
|
12.6
|
|
1.1
|
|
0.6
|
|
0.9
|
|
0.2
|
|
9.1
|
|
24.5
|
|
23,528
|
|
1,041
|
|
||||||||
Olympias
|
8.8
|
|
0.2
|
|
1.0
|
|
0.4
|
|
0.2
|
|
3.9
|
|
14.5
|
|
7,126
|
|
2,038
|
|
||||||||
Corporate
(1)
|
—
|
|
—
|
|
9.9
|
|
—
|
|
—
|
|
—
|
|
9.9
|
|
58,856
|
|
168
|
|
||||||||
Total consolidated
|
|
$36.8
|
|
|
$2.4
|
|
|
$12.3
|
|
|
$1.3
|
|
|
$0.6
|
|
|
$17.2
|
|
|
$70.6
|
|
58,856
|
|
|
$1,200
|
|
(1)
|
Excludes G&A expenses related to business development activities and projects. Includes share based payments expense and defined benefit pension plan expense.
|
|
|
25
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
Cash operating costs
|
|
Royalties & production taxes
|
|
Corporate & allocated G&A
|
|
Exploration costs
|
|
Reclamation costs and amortization
|
|
Sustaining capex
|
|
Total
AISC
|
|
Gold oz sold
|
|
Total
AISC
/ oz sold
|
|
||||||||
Kisladag
|
|
$113.7
|
|
|
$3.5
|
|
|
$3.2
|
|
|
$—
|
|
|
$1.3
|
|
|
$17.8
|
|
|
$139.5
|
|
171,741
|
|
|
$812
|
|
Efemcukuru
|
49.8
|
|
2.9
|
|
1.8
|
|
1.6
|
|
0.8
|
|
24.4
|
|
81.3
|
|
97,485
|
|
834
|
|
||||||||
Olympias
|
26.8
|
|
1.0
|
|
3.3
|
|
1.2
|
|
1.0
|
|
12.2
|
|
45.4
|
|
35,030
|
|
1,297
|
|
||||||||
Corporate
(1)
|
—
|
|
—
|
|
36.0
|
|
—
|
|
—
|
|
—
|
|
36.0
|
|
304,256
|
|
118
|
|
||||||||
Total consolidated
|
|
$190.2
|
|
|
$7.4
|
|
|
$44.3
|
|
|
$2.8
|
|
|
$3.1
|
|
|
$54.4
|
|
|
$302.3
|
|
304,256
|
|
|
$994
|
|
(1)
|
Excludes G&A expenses related to business development activities and projects. Includes share based payments expense and defined benefit pension plan expense.
|
|
2018
|
|
2017
|
|
||
General and administrative expenses
(from consolidated statement of operations)
|
|
$13.7
|
|
|
$18.7
|
|
Add:
|
|
|
||||
Share based payments
|
1.2
|
|
2.0
|
|
||
Defined benefit pension plan expense from corporate and operating gold mines
|
1.2
|
|
1.0
|
|
||
Accretion from operating gold mines
(1)
|
—
|
|
0.2
|
|
||
Less:
|
|
|
||||
General and administrative expenses from non gold mines
|
(4.8
|
)
|
(6.0
|
)
|
||
Business development
|
(0.8
|
)
|
(2.7
|
)
|
||
Development projects
|
(0.7
|
)
|
(0.5
|
)
|
||
Adjusted general and administrative expenses
|
|
$9.8
|
|
|
$12.7
|
|
(1)
|
For 2018 Accretion from operating gold mines is included in the individual mine site AISC calculation.
|
|
2018
|
|
2017
|
|
||
General and administrative expenses
(from consolidated statement of operations)
|
|
$46.8
|
|
|
$54.6
|
|
Add:
|
|
|
||||
Share based payments
|
7.0
|
|
11.2
|
|
||
Defined benefit pension plan expense from corporate and operating gold mines
|
3.6
|
|
1.5
|
|
||
Accretion from operating gold mines
(1)
|
—
|
|
0.9
|
|
||
Less:
|
|
|
||||
General and administrative expenses from non gold mines
|
(17.0
|
)
|
(18.3
|
)
|
||
Business development
|
(1.9
|
)
|
(3.5
|
)
|
||
Development projects
|
(2.4
|
)
|
(1.9
|
)
|
||
Adjusted general and administrative expenses
|
|
$36.0
|
|
|
$44.5
|
|
(1)
|
For 2018, Accretion from operating gold mines is included in the individual mine site AISC calculation.
|
|
|
26
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
Q4 2018
|
|
Q4 2017
|
|
2018
|
|
2017
|
|
||||
Realized gold revenue
|
|
$73.3
|
|
|
$86.2
|
|
|
$386.0
|
|
|
$333.3
|
|
Gold oz sold
|
58,856
|
|
67,367
|
|
304,256
|
|
264,080
|
|
||||
Average realized price per ounce sold
|
|
$1,245
|
|
|
$1,280
|
|
|
$1,269
|
|
|
$1,262
|
|
|
|
27
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
Q4 2018
|
|
Q4 2017
|
|
2018
|
|
2017
|
|
||||
Net earnings/(loss)
|
|
($218.2
|
)
|
|
($20.7
|
)
|
|
($361.9
|
)
|
|
($9.9
|
)
|
Gain (loss) on disposition of subsidiary
|
—
|
|
0.1
|
|
—
|
|
2.9
|
|
||||
Gain (loss) on available-for-sale securities
|
—
|
|
0.1
|
|
0.2
|
|
(28.3
|
)
|
||||
Unrealized gain (loss) on foreign exchange translation of deferred tax balances
|
(7.9
|
)
|
12.2
|
|
30.9
|
|
2.3
|
|
||||
Other write-down of assets, net of tax
|
0.1
|
|
2.7
|
|
1.2
|
|
37.5
|
|
||||
Impairment of property, plant and equipment, net of tax
|
234.4
|
|
—
|
|
328.4
|
|
—
|
|
||||
Transaction costs
|
—
|
|
0.5
|
|
—
|
|
6.2
|
|
||||
Changes in Greek tax rate
|
(25.0
|
)
|
—
|
|
(25.0
|
)
|
—
|
|
||||
Other non-recurring items
|
(2.3
|
)
|
4.7
|
|
(2.4
|
)
|
4.6
|
|
||||
Total adjusted net earnings/(loss)
|
|
($18.9
|
)
|
|
($0.4
|
)
|
|
($28.6
|
)
|
|
$15.2
|
|
Weighted average shares outstanding
|
158,404
|
|
150,531
|
|
158,509
|
|
150,531
|
|
||||
Adjusted net earnings/(loss) per share ($/share)
|
|
($0.11
|
)
|
|
($0.02
|
)
|
|
($0.17
|
)
|
|
$0.10
|
|
|
Q4 2018
|
|
Q4 2017
|
|
2018
|
|
2017
|
|
||||
Net earnings (loss) from mine operations
|
|
$10.8
|
|
|
$24.8
|
|
|
$83.8
|
|
|
$126.1
|
|
Net earnings from Stratoni mine
|
(0.3
|
)
|
(1.2
|
)
|
1.4
|
|
5.4
|
|
||||
Net earnings (loss) from Vila Nova mine
|
—
|
|
(0.2
|
)
|
—
|
|
0.5
|
|
||||
Other
1
|
(2.9
|
)
|
0.2
|
|
(1.1
|
)
|
(1.0
|
)
|
||||
Net earnings (loss) from gold mining operations
|
|
$14.0
|
|
|
$26.0
|
|
|
$83.5
|
|
|
$121.2
|
|
(1)
|
Includes Corporate office depreciation.
|
|
|
28
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
Q4 2018
|
|
Q4 2017
|
|
2018
|
|
2017
|
|
||||
Earnings (loss) from continuing operations before income tax
|
|
($346.3
|
)
|
|
($20.4
|
)
|
|
($466.1
|
)
|
|
$0.8
|
|
Depreciation, depletion and amortization
|
22.2
|
|
19.9
|
|
105.7
|
|
72.1
|
|
||||
Interest income
|
(2.1
|
)
|
(1.3
|
)
|
(7.7
|
)
|
(6.8
|
)
|
||||
Interest and financing costs
|
(2.3
|
)
|
1.1
|
|
4.3
|
|
3.2
|
|
||||
Accretion expense
|
0.5
|
|
0.5
|
|
2.0
|
|
2.0
|
|
||||
EBITDA
|
|
($327.9
|
)
|
|
($0.2
|
)
|
|
($361.8
|
)
|
|
$71.4
|
|
Other write-down of assets
|
0.1
|
|
12.4
|
|
1.5
|
|
46.7
|
|
||||
Inventory write-down
|
1.0
|
|
—
|
|
1.5
|
|
0.4
|
|
||||
Non-cash adjustments
(1)
|
1.2
|
|
(5.8
|
)
|
36.6
|
|
(35.8
|
)
|
||||
Share-based compensation
|
1.2
|
|
2.0
|
|
7.0
|
|
11.2
|
|
||||
Impairment (reversal of impairment) of mining interests
|
330.2
|
|
—
|
|
447.8
|
|
—
|
|
||||
(Gain) loss on disposal of assets
|
—
|
|
0.1
|
|
(0.1
|
)
|
0.5
|
|
||||
Adjusted EBITDA
|
|
$6.0
|
|
|
$8.4
|
|
|
$132.4
|
|
|
$94.3
|
|
(1)
|
Includes inventory change.
|
|
2018
|
2017
|
||||||||||||||||||||||
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
||||||||
Total Revenue
|
|
$92.8
|
|
|
$81.1
|
|
|
$153.2
|
|
|
$131.9
|
|
|
$101.4
|
|
|
$95.4
|
|
|
$82.7
|
|
|
$111.9
|
|
Impairment charge on property, plant and equipment, net of tax
|
234.4
|
|
94.1
|
|
–
|
|
–
|
|
37.5
|
|
–
|
|
–
|
|
–
|
|
||||||||
Net earnings/(loss)
|
|
($218.2
|
)
|
|
($128.0
|
)
|
|
($24.4
|
)
|
|
$8.7
|
|
|
($20.7
|
)
|
|
($4.2
|
)
|
|
$11.2
|
|
|
$3.8
|
|
Net earnings (loss) per share
|
|
|
|
|
|
|
|
|
||||||||||||||||
- basic
|
(1.38
|
)
|
(0.81
|
)
|
(0.15
|
)
|
0.06
|
|
(0.15
|
)
|
(0.03
|
)
|
0.08
|
|
0.03
|
|
||||||||
- diluted
|
(1.38
|
)
|
(0.81
|
)
|
(0.15
|
)
|
0.06
|
|
(0.15
|
)
|
(0.03
|
)
|
0.08
|
|
0.03
|
|
|
|
29
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
2018
|
|
2017
|
|
||
Cash, cash equivalents and term deposits
|
|
$293.0
|
|
|
$485.0
|
|
Working capital
|
373.0
|
|
623.5
|
|
||
Restricted collateralized accounts
|
0.3
|
|
0.3
|
|
||
Debt – long-term
|
|
$596.0
|
|
|
$593.8
|
|
|
Within 1 year
|
|
2 to 3 years
|
|
4 to 5 years
|
|
Over 5 years
|
|
Total
|
|
|||||
Debt
|
—
|
|
|
$600.0
|
|
—
|
|
—
|
|
|
$600.0
|
|
|||
Purchase obligations
|
30.9
|
|
0.3
|
|
0.2
|
|
—
|
|
31.4
|
|
|||||
Capital leases
|
4.3
|
|
6.8
|
|
0.6
|
|
—
|
|
11.7
|
|
|||||
Operating leases
|
9.3
|
|
15.9
|
|
14.8
|
|
24.6
|
|
64.6
|
|
|||||
Totals
|
|
$44.5
|
|
|
$623.0
|
|
|
$15.6
|
|
|
$24.6
|
|
|
$707.7
|
|
|
|
30
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
|
31
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
Common Shares Outstanding
|
|
|
- as of February 21, 2019
|
158,801,722
|
|
- as of December 31, 2018
|
158,801,722
|
|
Share purchase options - as of February 21, 2019
(Weighted average exercise price per share: Cdn$22.16)
|
5,052,516
|
|
|
|
32
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
|
33
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
2018
|
Canadian dollar
|
Australian dollar
|
Euro
|
Turkish lira
|
Chinese renminbi
|
Serbian dinar
|
Romanian lei
|
British pound
|
Brazilian real
|
|||||||||
(Amounts in thousands)
|
$
|
$
|
€
|
TRY
|
¥
|
din
|
lei
|
£
|
R$
|
|||||||||
Cash and cash equivalents
|
19,030
|
|
433
|
|
6,861
|
|
2,664
|
|
72
|
|
8,848
|
|
1,904
|
|
923
|
|
4,539
|
|
Marketable securities
|
3,509
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Accounts receivable and other
|
23,672
|
|
3
|
|
15,552
|
|
54,772
|
|
—
|
|
8,386
|
|
4,487
|
|
—
|
|
9,970
|
|
Accounts payable and accrued liabilities
|
(102,027
|
)
|
(7
|
)
|
(34,488
|
)
|
(44,516
|
)
|
—
|
|
(1,004
|
)
|
(2,286
|
)
|
—
|
|
(2,941
|
)
|
Other non-current liabilities
|
(10,064
|
)
|
—
|
|
(9,191
|
)
|
(15,877
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Net balance
|
(65,880
|
)
|
429
|
|
(21,266
|
)
|
(2,957
|
)
|
72
|
|
16,230
|
|
4,105
|
|
923
|
|
11,568
|
|
Equivalent in U.S. dollars
|
(48,292
|
)
|
302
|
|
(24,334
|
)
|
(562
|
)
|
11
|
|
157
|
|
1,010
|
|
1,180
|
|
2,982
|
|
|
|
34
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
2017
|
Canadian dollar
|
Australian dollar
|
Euro
|
Turkish lira
|
Chinese renminbi
|
Serbian Dinar
|
Romanian lei
|
British pound
|
Brazilian real
|
|||||||||
(Amounts in thousands)
|
$
|
$
|
€
|
TRY
|
¥
|
din
|
lei
|
£
|
R$
|
|||||||||
Cash and cash equivalents
|
18,280
|
|
482
|
|
13,030
|
|
4,965
|
|
77
|
|
4,845
|
|
9,730
|
|
366
|
|
15,991
|
|
Marketable securities
|
6,286
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Accounts receivable and other
|
13,706
|
|
4
|
|
24,508
|
|
60,111
|
|
—
|
|
43,157
|
|
7,542
|
|
—
|
|
12,547
|
|
Accounts payable and accrued liabilities
|
(30,900
|
)
|
(42
|
)
|
(45,751
|
)
|
(50,099
|
)
|
—
|
|
(9,000
|
)
|
(6,174
|
)
|
—
|
|
(5,559
|
)
|
Other non-current liability
|
(1,269
|
)
|
—
|
|
(6,516
|
)
|
(17,999
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Net balance
|
6,103
|
|
444
|
|
(14,729
|
)
|
(3,022
|
)
|
77
|
|
39,002
|
|
11,098
|
|
366
|
|
22,979
|
|
Equivalent in U.S. dollars
|
4,865
|
|
347
|
|
(17,664
|
)
|
(802
|
)
|
12
|
|
394
|
|
2,874
|
|
495
|
|
6,946
|
|
|
|
35
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
|
36
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
|
37
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
|
38
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
•
|
uncertain political and economic environments;
|
•
|
risks of war, regime changes and civil disturbances or other risks;
|
•
|
risk of adverse changes in laws or policies of particular countries, including government royalties and taxation;
|
•
|
delays in or the inability to obtain necessary government permits, approvals and consents;
|
•
|
limitations on ownership and repatriation of earnings;
|
•
|
foreign exchange controls and currency devaluations;
|
•
|
import and export regulations, including restrictions on exporting gold; and
|
•
|
exposure to occupation of our project sites for political or other purposes.
|
|
|
39
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
|
40
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
|
41
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
|
42
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
•
|
the amount of gold and other metals estimated to be in the ore stacked on the leach pads;
|
•
|
the amount of gold and other metals expected to be recovered from the stacks;
|
•
|
the amount of gold and other metals in the mill circuits;
|
•
|
the amount of gold and other metals in concentrates; and
|
•
|
the gold and other metal prices expect to be realized when sold.
|
|
|
43
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
•
|
the mineral reserves defined in this report qualify as reserves under SEC standards
|
•
|
the measured and indicated mineral resources in this report will ever be converted to reserves
|
•
|
the inferred mineral resources in this report are economically mineable, or will ever be upgraded to a higher category.
|
|
|
44
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
•
|
IFRS 9
‘Financial Instruments’
– This standard was published in July 2014 and replaces the existing guidance in IAS 39, ‘
Financial Instruments: Recognition and Measurement’
. IFRS 9 includes revised guidance on the classification and measurement of financial instruments, including a new expected credit loss model for calculating impairment on financial assets, and new general hedge accounting requirements. Most of the requirements in IAS 39 for classification and measurement of financial liabilities were carried forward in IFRS 9, so the Company's accounting policy with respect to financial liabilities is substantially unchanged. The Company has changed its accounting policy with respect to the clarification of financial assets that were recognized at the date of transition, January 1, 2018.
The change did not impact the presentation or carrying value of any financial assets on the transition date.
|
|
|
45
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
Original classification New classification IAS 39
|
New classification IFRS 9
|
|
|
|
Financial assets
|
|
|
Cash and cash equivalents
|
Amortized cost
|
Amortized cost
|
Term deposit
|
Amortized cost
|
Amortized cost
|
Restricted cash
|
Amortized cost
|
Amortized cost
|
Trade receivables
|
Amortized cost
|
Amortized cost
|
Settlement receivables
|
Embedded derivative separately identified as FVTPL
|
FVTPL
|
Marketable securities
|
Available-for-sale
|
FVTOCI
|
Derivatives
|
FVTPL
|
FVTPL
|
|
|
|
Financial liabilities
|
|
|
Accounts payable and accrued liabilities
|
Amortized cost
|
Amortized cost
|
Debt
|
Amortized cost
|
Amortized cost
|
•
|
IFRS 15
‘Revenue from Contracts with Customers’
– This standard introduces a single model that applies to contracts with customers and two approaches to recognising revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognized. The Company's revenue recognition policy under the previous standard recognized revenue when persuasive evidence of an arrangement existed, the bullion, doré, metal concentrates and iron ore had been shipped, title had passed to the purchaser, the price was fixed or determinable, and collection was reasonably assured. The Company has adopted this standard with a modified retrospective approach and has changed its accounting policy for revenue recognition.
There was no adjustment to prior periods as a result of the implementation of this standard. The Company has provided additional disclosures required by this standard in note 28 of these audited consolidated financial statements.
There was no adjustment to prior periods as a result of the implementation of this standard.
|
•
|
IFRS 2
‘Share-Based Payments’
–
In June 2016, the IASB issued final amendments to this standard and clarified the classification and measurement of share-based payment transactions. These amendments deal with variations in the final settlement arrangements including:
|
•
|
IFRS 16
‘Leases
’ – This standard was published in January 2016 and replaces the existing guidance in IAS 17, ‘Leases’. IFRS 16 introduces a single accounting model for lessees and for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee will be required to recognize a right-of-use asset, representing its right to use the underlying asset, and a lease liability, representing its obligation to make lease payments. The accounting treatment for lessors will remain largely the same as under IAS 17.
|
|
|
46
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
•
|
IFRIC 23
'Uncertainty over Income Tax Treatments'
– This interpretation sets out how to determine the accounting tax position when there is uncertainty over income tax treatments. The Interpretation requires an entity to determine whether uncertain tax positions are assessed separately or as a group; and assess whether it is probable that a tax authority will accept an uncertain tax treatment used, or proposed to be used, by an entity in its income tax filings. If yes, the entity should determine its accounting tax position consistently with the tax treatment used or planned to be used in its income tax filings. If no, the entity should reflect the effect of uncertainty in determining its accounting tax position. The Interpretation is effective January 1, 2019. Entities can apply the interpretation with either full retrospective application or modified retrospective application without restatement of comparatives retrospectively or prospectively. The Company does not expect the application of the Interpretation will have a significant impact on the Company’s consolidated financial statements.
|
|
|
47
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
|
48
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
|
49
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
|
50
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
|
51
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
|
52
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
|
|
53
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and twelve months ended December 31, 2018 and 2017
|
|
|
George Albino
2, 3
|
Chairman of the Board
|
George Burns
|
President and Chief Executive Officer
|
Teresa Conway
1, 2
|
Independent Director
|
Pamela Gibson
1, 3
|
Independent Director
|
Geoffrey Handley
2, 4
|
Independent Director
|
Geoffrey Handley
2, 4
|
Independent Director
|
Michael Price
1, 4
|
Independent Director
|
Steven Reid
2, 4
|
Independent Director
|
John Webster
1, 3
|
Independent Director
|
1.
|
Audit Committee
|
2.
|
Compensation Committee
|
3.
|
Corporate Governance & Nominating Committee
|
4.
|
Sustainability Committee
|
George Burns
|
President and Chief Executive Officer
|
Philip Yee
|
Executive VP and Chief Financial Officer
|
Paul Skayman
|
Executive VP and Chief Operating Officer
|
Jason Cho
|
Executive VP Strategy & Corporate Development
|
Tim Garvin
|
Executive VP and General Counsel
|
Krista Muhr
|
Senior VP External Affairs & Sustainability
|
Shane Williams
|
Senior VP Engineering & Capital Projects
|
Christos Balaskas
|
VP and General Manager, Greece
|
David Bickford
|
VP and General Manager, Turkey
|
Peter Lewis
|
VP Exploration
|
Andor Lips
|
VP Government Relations, Europe
|
Lisa Ower
|
VP Human Resources
|
Lincoln Silva
|
VP and General Manager, Brazil
|
|
|
54
|
1.
|
I have reviewed this annual report on Form 40-F of Eldorado Gold Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;
|
4.
|
The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and
|
5.
|
The issuer’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditor and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.
|
|
|
|
|
|
Date: March 29, 2019
|
|
By:
|
/s/ George Burns
|
|
|
|
|
George Burns
|
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
(Principal Executive Officer)
|
|
1.
|
I have reviewed this annual report on Form 40-F of Eldorado Gold Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;
|
4.
|
The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and
|
5.
|
The issuer’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditor and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.
|
|
|
|
|
|
Date: March 29, 2019
|
|
By:
|
/s/ Philip Yee
|
|
|
|
|
Philip Yee
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
(Principal Financial and Accounting Officer)
|
|
|
|
|
|
|
March 29, 2019
|
|
|
/s/ George Burns
|
|
|
|
|
George Burns
|
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
March 29, 2019
|
|
|
/s/ Philip Yee
|
|
|
|
|
Philip Yee
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
(Principal Financial and Accounting Officer)
|
|
|
|
KPMG LLP
Chartered Professional Accountants
PO Box 10426 777 Dunsmuir Street
Vancouver BC V7Y 1K3
Canada
|
|
Telephone (604) 691-3000
Fax (604) 691-3031
Internet www.kpmg.ca
|
|
By:
|
/s/Antony Francis
|
|
|
Antony Francis, FIMMM
|
|
By:
|
/s/Colm Keogh
|
|
|
Colm Keogh, P.Eng.
|
|
|
Eldorado Gold Corporation
|
|
|
Manager, Mine Engineering (Underground)
|
|
By:
|
/s/Ertan Uludag
|
|
|
Ertan Uludag, P.Geo.
|
|
|
Eldorado Gold Corporation
|
|
|
Resource Geologist
|
|
By:
|
/s/Francois Chabot
|
|
|
Francois Chabot, Eng
|
|
By:
|
/s/Jacques Simoneau
|
|
|
Jacques Simoneau, P.Geo
|
|
|
Eldorado Gold Lamaque
|
|
|
Exploration Manager Eastern Canada
|
|
By:
|
/s/John Nilsson
|
|
|
John Nilsson, P.Eng
|
|
|
Nilsson Mine Services Ltd.
|
|
By:
|
/s/Mathieu Belisle
|
|
|
Mathieu Belisle, P.Eng
|
|
|
Director – Metallurgy and Mineral Processing
|
|
By:
|
/s/Patrick Forward
|
|
|
Patrick Forward, FIMMM
|
1.
|
the written disclosure regarding the technical reports entitled “Technical Report Skouries Project Greece”, effective January 1, 2018 and the “Technical Report, Kişladağ Milling Project, Turkey” effective March 16, 2018, in the Annual Information Form (the “AIF”) of Eldorado Gold Corporation (the “Company”) being filed with the United States Securities and Exchange Commission as part of the Company’s Annual Report on Form 40-F for the year ended December 31, 2018 (the “Form 40-F”);
|
2.
|
except as otherwise noted in the AIF, the scientific or technical information contained in the AIF for all the properties described in the AIF and the technical data disclosed in the AIF relating to Kişladağ, Efemçukuru, Olympias, Skouries and Lamaque; and
|
3.
|
except as otherwise noted, all scientific and technical information contained in the Company’s Management Discussion and Analysis of Financial Condition and Results of Operation for the year ended December 31, 2018 (the “MD&A”),
|
|
By:
|
/s/Paul Skayman
|
|
|
Paul Skayman, FAusIMM
|
|
|
Eldorado Gold Corporation
|
|
|
Chief Operating Officer
|
|
By:
|
/s/Peter Lewis
|
|
|
Peter Lewis, P.Geo.
|
|
|
Eldorado Gold Corporation
|
|
|
Vice President, Exploration
|
|
By:
|
/s/Richard Miller
|
|
|
Richard Miller, P.Eng
|
|
|
Eldorado Gold Corporation
|
|
|
Director, Mine Engineering (Open Pit)
|
|
By:
|
/s/Rick Alexander
|
|
|
Rick Alexander, P. Eng.
|
|
By:
|
/s/Stephen Juras
|
|
|
Stephen Juras, P.Geo
|
|
|
Eldorado Gold Corporation
|
|
|
Director, Technical Services
|
|
By:
|
/s/David Sutherland
|
|
|
David Sutherland, P.Eng
|
|
|
Eldorado Gold Corporation
|
|
|
Project Manager
|