Eldorado Gold Corporation
|
(Translation of registrant’s name into English)
|
1188-550 Burrard Street, Bentall 5
Vancouver, B.C. Canada V6C 2B5
|
(Address of principal executive offices)
|
Form 20-F
|
¨
|
|
Form 40-F
|
þ
|
|
ELDORADO GOLD CORPORATION
|
|
(Registrant)
|
Date: August 1, 2019
|
/s/ Karen Aram
Karen Aram
Corporate Secretary
|
As at
|
Note
|
|
June 30, 2019
|
|
|
December 31, 2018
|
|
||
ASSETS
|
|
|
|
|
|
||||
Current assets
|
|
|
|
|
|
||||
Cash and cash equivalents
|
|
|
$
|
115,109
|
|
|
$
|
286,312
|
|
Term deposits
|
|
|
4,775
|
|
|
6,646
|
|
||
Restricted cash
|
|
|
294
|
|
|
296
|
|
||
Marketable securities
|
|
|
3,735
|
|
|
2,572
|
|
||
Accounts receivable and other
|
|
|
82,458
|
|
|
80,987
|
|
||
Inventories
|
4
|
|
132,318
|
|
|
137,885
|
|
||
|
|
|
338,689
|
|
|
514,698
|
|
||
Assets held for sale
|
13
|
|
13,370
|
|
|
—
|
|
||
|
|
|
352,059
|
|
|
514,698
|
|
||
Restricted cash
|
|
|
3,261
|
|
|
13,449
|
|
||
Other assets
|
|
|
20,311
|
|
|
10,592
|
|
||
Defined benefit pension plan
|
|
|
9,556
|
|
|
9,120
|
|
||
Property, plant and equipment
|
|
|
3,999,345
|
|
|
3,988,476
|
|
||
Goodwill
|
|
|
92,591
|
|
|
92,591
|
|
||
|
|
|
$
|
4,477,123
|
|
|
$
|
4,628,926
|
|
LIABILITIES & EQUITY
|
|
|
|
|
|
||||
Current liabilities
|
|
|
|
|
|
||||
Accounts payable and accrued liabilities
|
|
|
$
|
113,005
|
|
|
$
|
137,900
|
|
Current portion of lease liabilities
|
|
|
8,802
|
|
|
2,978
|
|
||
Current portion of debt
|
5(a)
|
|
33,333
|
|
|
—
|
|
||
Current portion of asset retirement obligations
|
|
|
824
|
|
|
824
|
|
||
|
|
|
155,964
|
|
|
141,702
|
|
||
Liabilities associated with assets held for sale
|
13
|
|
4,370
|
|
|
—
|
|
||
|
|
|
160,334
|
|
|
141,702
|
|
||
Debt
|
5
|
|
449,128
|
|
|
595,977
|
|
||
Lease liabilities
|
|
|
16,759
|
|
|
6,538
|
|
||
Defined benefit pension plan
|
|
|
14,856
|
|
|
14,375
|
|
||
Asset retirement obligations
|
|
|
88,721
|
|
|
93,319
|
|
||
Deferred income tax liabilities
|
|
|
413,421
|
|
|
429,929
|
|
||
|
|
|
1,143,219
|
|
|
1,281,840
|
|
||
Equity
|
|
|
|
|
|
||||
Share capital
|
|
|
3,007,944
|
|
|
3,007,924
|
|
||
Treasury stock
|
|
|
(8,813
|
)
|
|
(10,104
|
)
|
||
Contributed surplus
|
|
|
2,623,523
|
|
|
2,620,799
|
|
||
Accumulated other comprehensive loss
|
|
|
(23,740
|
)
|
|
(24,494
|
)
|
||
Deficit
|
|
|
(2,325,267
|
)
|
|
(2,310,453
|
)
|
||
Total equity attributable to shareholders of the Company
|
|
|
3,273,647
|
|
|
3,283,672
|
|
||
Attributable to non-controlling interests
|
|
|
60,257
|
|
|
63,414
|
|
||
|
|
|
3,333,904
|
|
|
3,347,086
|
|
||
|
|
|
$
|
4,477,123
|
|
|
$
|
4,628,926
|
|
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
Note
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Revenue
|
|
|
|
|
|
|
|
|
|
||||||||
Metal sales
|
6
|
|
$
|
173,678
|
|
|
$
|
153,171
|
|
|
$
|
253,702
|
|
|
$
|
285,076
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of sales
|
|
|
|
|
|
|
|
|
|
||||||||
Production costs
|
|
|
100,896
|
|
|
85,844
|
|
|
152,817
|
|
|
153,079
|
|
||||
Depreciation and amortization
|
|
|
41,188
|
|
|
34,482
|
|
|
61,130
|
|
|
63,670
|
|
||||
|
|
|
142,084
|
|
|
120,326
|
|
|
213,947
|
|
|
216,749
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings from mine operations
|
|
|
31,594
|
|
|
32,845
|
|
|
39,755
|
|
|
68,327
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Exploration and evaluation expense
|
|
|
2,529
|
|
|
6,849
|
|
|
7,894
|
|
|
10,997
|
|
||||
Mine standby costs
|
|
|
3,450
|
|
|
4,304
|
|
|
11,443
|
|
|
7,010
|
|
||||
General and administrative expense
|
|
|
8,084
|
|
|
14,006
|
|
|
15,256
|
|
|
22,231
|
|
||||
Defined benefit pension plan expense
|
|
|
510
|
|
|
1,047
|
|
|
1,109
|
|
|
2,130
|
|
||||
Share based payments
|
9
|
|
2,498
|
|
|
2,844
|
|
|
5,400
|
|
|
4,162
|
|
||||
Reversal of impairment
|
13
|
|
(11,690
|
)
|
|
—
|
|
|
(11,690
|
)
|
|
—
|
|
||||
Write-down of assets
|
|
|
410
|
|
|
4,483
|
|
|
427
|
|
|
8,507
|
|
||||
Foreign exchange loss
|
|
|
480
|
|
|
2,266
|
|
|
235
|
|
|
3,408
|
|
||||
Earnings (loss) from operations
|
|
|
25,323
|
|
|
(2,954
|
)
|
|
9,681
|
|
|
9,882
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Other income
|
7(a)
|
|
8,655
|
|
|
3,623
|
|
|
10,288
|
|
|
7,594
|
|
||||
Finance costs
|
7(b)
|
|
(16,786
|
)
|
|
(3,200
|
)
|
|
(24,117
|
)
|
|
(7,274
|
)
|
||||
Earnings (loss) from operations before income tax
|
|
|
17,192
|
|
|
(2,531
|
)
|
|
(4,148
|
)
|
|
10,202
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense
|
|
|
8,010
|
|
|
21,579
|
|
|
14,042
|
|
|
28,663
|
|
||||
Net earnings (loss) for the period
|
|
|
$
|
9,182
|
|
|
$
|
(24,110
|
)
|
|
$
|
(18,190
|
)
|
|
$
|
(18,461
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Attributable to:
|
|
|
|
|
|
|
|
|
|
||||||||
Shareholders of the Company
|
|
|
12,151
|
|
|
(24,391
|
)
|
|
(14,814
|
)
|
|
(15,673
|
)
|
||||
Non-controlling interests
|
|
|
(2,969
|
)
|
|
281
|
|
|
(3,376
|
)
|
|
(2,788
|
)
|
||||
Net earnings (loss) for the period
|
|
|
$
|
9,182
|
|
|
$
|
(24,110
|
)
|
|
$
|
(18,190
|
)
|
|
$
|
(18,461
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of shares outstanding (thousands)
|
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
|
158,372
|
|
|
158,552
|
|
|
158,345
|
|
|
158,506
|
|
||||
Diluted
|
|
|
158,372
|
|
|
158,552
|
|
|
158,345
|
|
|
158,506
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) per share attributable to shareholders of the Company:
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share
|
|
|
$
|
0.08
|
|
|
$
|
(0.15
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
(0.10
|
)
|
Diluted earnings (loss) per share
|
|
|
$
|
0.08
|
|
|
$
|
(0.15
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
(0.10
|
)
|
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
Note
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) for the period
|
|
|
$
|
9,182
|
|
|
$
|
(24,110
|
)
|
|
$
|
(18,190
|
)
|
|
$
|
(18,461
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
||||||||
Items that will not be reclassified to earnings or loss:
|
|
|
|
|
|
|
|
|
|
||||||||
Change in fair value of investments in equity securities, net of tax
|
|
|
1,016
|
|
|
(420
|
)
|
|
1,163
|
|
|
(1,159
|
)
|
||||
Actuarial (loss) gain on defined benefit pension plan,
net of tax |
|
|
(63
|
)
|
|
641
|
|
|
(409
|
)
|
|
650
|
|
||||
Total other comprehensive income (loss) for the period
|
|
|
953
|
|
|
221
|
|
|
754
|
|
|
(509
|
)
|
||||
Total comprehensive income (loss) for the period
|
|
|
$
|
10,135
|
|
|
$
|
(23,889
|
)
|
|
$
|
(17,436
|
)
|
|
$
|
(18,970
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Attributable to:
|
|
|
|
|
|
|
|
|
|
||||||||
Shareholders of the Company
|
|
|
13,104
|
|
|
(24,170
|
)
|
|
(14,060
|
)
|
|
(16,182
|
)
|
||||
Non-controlling interests
|
|
|
(2,969
|
)
|
|
281
|
|
|
(3,376
|
)
|
|
(2,788
|
)
|
||||
|
|
|
$
|
10,135
|
|
|
$
|
(23,889
|
)
|
|
$
|
(17,436
|
)
|
|
$
|
(18,970
|
)
|
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
Note
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Cash flows generated from (used in):
|
|
|
|
|
|
|
|
|
|
||||||||
Operating activities
|
|
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) for the period
|
|
|
$
|
9,182
|
|
|
$
|
(24,110
|
)
|
|
$
|
(18,190
|
)
|
|
$
|
(18,461
|
)
|
Items not affecting cash:
|
|
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization
|
|
|
41,188
|
|
|
34,482
|
|
|
61,130
|
|
|
63,670
|
|
||||
Finance costs
|
7(b)
|
|
16,786
|
|
|
3,200
|
|
|
24,117
|
|
|
7,274
|
|
||||
Unrealized foreign exchange (gain) loss
|
|
|
(178
|
)
|
|
169
|
|
|
(351
|
)
|
|
418
|
|
||||
Income from royalty sale
|
7(a)
|
|
(8,075
|
)
|
|
—
|
|
|
(8,075
|
)
|
|
—
|
|
||||
Income tax expense
|
|
|
8,010
|
|
|
21,579
|
|
|
14,042
|
|
|
28,663
|
|
||||
Reversal of impairment
|
13
|
|
(11,690
|
)
|
|
—
|
|
|
(11,690
|
)
|
|
—
|
|
||||
Write-down of assets
|
|
|
410
|
|
|
4,483
|
|
|
427
|
|
|
8,507
|
|
||||
Gain on derivatives and other investments
|
7(a)
|
|
—
|
|
|
(1,406
|
)
|
|
—
|
|
|
(2,194
|
)
|
||||
Share based payments
|
9
|
|
2,498
|
|
|
2,844
|
|
|
5,400
|
|
|
4,162
|
|
||||
Defined benefit pension plan expense
|
|
|
510
|
|
|
1,047
|
|
|
1,109
|
|
|
2,130
|
|
||||
|
|
|
58,641
|
|
|
42,288
|
|
|
67,919
|
|
|
94,169
|
|
||||
Property reclamation payments
|
|
|
(896
|
)
|
|
(1,592
|
)
|
|
(1,796
|
)
|
|
(2,399
|
)
|
||||
Severance and pension payments
|
|
|
(1,349
|
)
|
|
(2,250
|
)
|
|
(1,349
|
)
|
|
(2,250
|
)
|
||||
Income taxes paid
|
|
|
(4,010
|
)
|
|
(7,984
|
)
|
|
(4,010
|
)
|
|
(15,601
|
)
|
||||
Interest paid
|
|
|
(14,886
|
)
|
|
(4,203
|
)
|
|
(15,136
|
)
|
|
(4,203
|
)
|
||||
Changes in non-cash working capital
|
10
|
|
13,523
|
|
|
17,170
|
|
|
4,767
|
|
|
(9,912
|
)
|
||||
Net cash generated from operating activities
|
|
|
51,023
|
|
|
43,429
|
|
|
50,395
|
|
|
59,804
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Investing activities
|
|
|
|
|
|
|
|
|
|
||||||||
Purchase of property, plant and equipment
|
|
|
(48,020
|
)
|
|
(63,619
|
)
|
|
(113,940
|
)
|
|
(115,471
|
)
|
||||
Capitalized interest paid
|
|
|
(3,848
|
)
|
|
(14,172
|
)
|
|
(3,848
|
)
|
|
(14,172
|
)
|
||||
Proceeds from the sale of property, plant and equipment
|
|
|
3,392
|
|
|
7,751
|
|
|
3,772
|
|
|
7,812
|
|
||||
Proceeds on pre-commercial production sales, net
|
|
|
7,606
|
|
|
332
|
|
|
12,159
|
|
|
5,202
|
|
||||
Value added taxes related to mineral property expenditures, net
|
|
|
(5,348
|
)
|
|
(1,412
|
)
|
|
(7,719
|
)
|
|
4,802
|
|
||||
Redemption of (investment in) term deposits
|
|
|
1,897
|
|
|
(1,102
|
)
|
|
1,871
|
|
|
(1,118
|
)
|
||||
Decrease (increase) in restricted cash
|
5(b)
|
|
10,640
|
|
|
(26
|
)
|
|
10,194
|
|
|
(868
|
)
|
||||
Net cash used in investing activities
|
|
|
(33,681
|
)
|
|
(72,248
|
)
|
|
(97,511
|
)
|
|
(113,813
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
||||||||
Issuance of common shares for cash
|
|
|
18
|
|
|
—
|
|
|
18
|
|
|
—
|
|
||||
Proceeds from borrowings
|
|
|
494,000
|
|
|
—
|
|
|
494,000
|
|
|
—
|
|
||||
Repayment of borrowings
|
5(c)
|
|
(600,000
|
)
|
|
—
|
|
|
(600,000
|
)
|
|
—
|
|
||||
Loan financing costs
|
|
|
(14,995
|
)
|
|
—
|
|
|
(14,995
|
)
|
|
—
|
|
||||
Principal elements of lease payments
|
|
|
(1,312
|
)
|
|
(103
|
)
|
|
(2,386
|
)
|
|
(214
|
)
|
||||
Purchase of treasury stock
|
|
|
—
|
|
|
(2,108
|
)
|
|
—
|
|
|
(2,108
|
)
|
||||
Net cash used in financing activities
|
|
|
(122,289
|
)
|
|
(2,211
|
)
|
|
(123,363
|
)
|
|
(2,322
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Net decrease in cash and cash equivalents
|
|
|
(104,947
|
)
|
|
(31,030
|
)
|
|
(170,479
|
)
|
|
(56,331
|
)
|
||||
Cash and cash equivalents - beginning of period
|
|
|
220,780
|
|
|
454,200
|
|
|
286,312
|
|
|
479,501
|
|
||||
|
|
|
115,833
|
|
|
423,170
|
|
|
115,833
|
|
|
423,170
|
|
||||
Cash in disposal group held for sale
|
13
|
|
(724
|
)
|
|
—
|
|
|
(724
|
)
|
|
—
|
|
||||
Cash and cash equivalents - end of period
|
|
|
$
|
115,109
|
|
|
$
|
423,170
|
|
|
$
|
115,109
|
|
|
$
|
423,170
|
|
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
Note
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Share capital
|
|
|
|
|
|
|
|
|
|
||||||||
Balance beginning of period
|
|
|
$
|
3,007,924
|
|
|
$
|
3,007,924
|
|
|
$
|
3,007,924
|
|
|
$
|
3,007,924
|
|
Shares issued upon exercise of share options, for cash
|
|
|
18
|
|
|
—
|
|
|
18
|
|
|
—
|
|
||||
Transfer of contributed surplus on exercise of options
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
Balance end of period
|
|
|
$
|
3,007,944
|
|
|
$
|
3,007,924
|
|
|
$
|
3,007,944
|
|
|
$
|
3,007,924
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Treasury stock
|
|
|
|
|
|
|
|
|
|
||||||||
Balance beginning of period
|
|
|
$
|
(9,269
|
)
|
|
$
|
(11,056
|
)
|
|
$
|
(10,104
|
)
|
|
$
|
(11,056
|
)
|
Purchase of treasury stock
|
|
|
—
|
|
|
(2,108
|
)
|
|
—
|
|
|
(2,108
|
)
|
||||
Shares redeemed upon exercise of restricted share units
|
|
|
456
|
|
|
3,060
|
|
|
1,291
|
|
|
3,060
|
|
||||
Balance end of period
|
|
|
$
|
(8,813
|
)
|
|
$
|
(10,104
|
)
|
|
$
|
(8,813
|
)
|
|
$
|
(10,104
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Contributed surplus
|
|
|
|
|
|
|
|
|
|
||||||||
Balance beginning of period
|
|
|
$
|
2,621,866
|
|
|
$
|
2,618,323
|
|
|
$
|
2,620,799
|
|
|
$
|
2,616,593
|
|
Share based payments
|
|
|
2,115
|
|
|
1,845
|
|
|
4,017
|
|
|
3,575
|
|
||||
Shares redeemed upon exercise of restricted share units
|
|
|
(456
|
)
|
|
(3,060
|
)
|
|
(1,291
|
)
|
|
(3,060
|
)
|
||||
Transfer to share capital on exercise of options
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
Balance end of period
|
|
|
$
|
2,623,523
|
|
|
$
|
2,617,108
|
|
|
$
|
2,623,523
|
|
|
$
|
2,617,108
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Accumulated other comprehensive loss
|
|
|
|
|
|
|
|
|
|
||||||||
Balance beginning of period
|
|
|
$
|
(24,693
|
)
|
|
$
|
(22,080
|
)
|
|
$
|
(24,494
|
)
|
|
$
|
(21,350
|
)
|
Other comprehensive income (loss) for the period
|
|
|
953
|
|
|
221
|
|
|
754
|
|
|
(509
|
)
|
||||
Balance end of period
|
|
|
$
|
(23,740
|
)
|
|
$
|
(21,859
|
)
|
|
$
|
(23,740
|
)
|
|
$
|
(21,859
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Deficit
|
|
|
|
|
|
|
|
|
|
||||||||
Balance beginning of period
|
|
|
$
|
(2,337,418
|
)
|
|
$
|
(1,939,851
|
)
|
|
$
|
(2,310,453
|
)
|
|
$
|
(1,948,569
|
)
|
Net earnings (loss) attributable to shareholders of the Company
|
|
|
12,151
|
|
|
(24,391
|
)
|
|
(14,814
|
)
|
|
(15,673
|
)
|
||||
Balance end of period
|
|
|
$
|
(2,325,267
|
)
|
|
$
|
(1,964,242
|
)
|
|
$
|
(2,325,267
|
)
|
|
$
|
(1,964,242
|
)
|
Total equity attributable to shareholders of the Company
|
|
|
$
|
3,273,647
|
|
|
$
|
3,628,827
|
|
|
$
|
3,273,647
|
|
|
$
|
3,628,827
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-controlling interests
|
|
|
|
|
|
|
|
|
|
||||||||
Balance beginning of period
|
|
|
$
|
63,007
|
|
|
$
|
77,872
|
|
|
$
|
63,414
|
|
|
$
|
79,940
|
|
Net (loss) earnings attributable to non-controlling interests
|
|
|
(2,969
|
)
|
|
281
|
|
|
(3,376
|
)
|
|
(2,788
|
)
|
||||
Contributions from non-controlling interests
|
|
|
219
|
|
|
—
|
|
|
219
|
|
|
1,001
|
|
||||
Balance end of period
|
|
|
$
|
60,257
|
|
|
$
|
78,153
|
|
|
$
|
60,257
|
|
|
$
|
78,153
|
|
Total equity
|
|
|
$
|
3,333,904
|
|
|
$
|
3,706,980
|
|
|
$
|
3,333,904
|
|
|
$
|
3,706,980
|
|
a)
|
Statement of compliance
|
b)
|
Judgment and estimates
|
•
|
Applied the exemption not to recognize right-of-use assets and liabilities for leases with low value.
|
•
|
Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term remaining.
|
•
|
Applied a single discount rate to a portfolio of leases with reasonably similar characteristics (such as leases with a similar remaining lease term for a similar class of underlying asset in a similar economic environment).
|
•
|
Excluded initial direct costs from measuring the right-of-use asset at the date of initial application.
|
•
|
Used hindsight, such as in determining the lease term if the contract contains options to extend or terminate the lease.
|
|
December 31, 2018
|
|
|
IFRS 16 Adjustment
|
|
|
January 1, 2019
|
|
|||
|
|
|
|
|
|
||||||
Lease assets presented in property, plant and equipment
|
$
|
11,345
|
|
|
$
|
9,379
|
|
|
$
|
20,724
|
|
Lease liabilities – current
|
2,978
|
|
|
2,658
|
|
|
5,456
|
|
|||
Lease liabilities – non-current
|
6,538
|
|
|
6,168
|
|
|
12,706
|
|
|||
Accounts receivable and other
|
80,987
|
|
|
(553
|
)
|
|
80,434
|
|
|
January 1, 2019
|
|
|
|
|
||
Operating lease commitments at December 31, 2018
|
$
|
64,690
|
|
Exclusion of arrangements to explore for or use minerals
|
(53,186
|
)
|
|
Leases with low value at January 1, 2019
|
(1,677
|
)
|
|
Leases with less than 12 months of remaining lease term at January 1, 2019
|
(866
|
)
|
|
Arrangements reassessed as leases
|
3,120
|
|
|
Effect of discounting using the incremental borrowing rate at January 1, 2019
|
(3,255
|
)
|
|
Lease liabilities recognized as IFRS 16 adjustment at January 1, 2019
|
$
|
8,826
|
|
b)
|
IFRIC 23
'Uncertainty over Income Tax Treatments'
|
|
June 30, 2019
|
|
|
December 31, 2018
|
|
||
|
|
|
|
||||
Ore stockpiles
|
$
|
4,887
|
|
|
$
|
5,615
|
|
In-process inventory and finished goods
|
51,136
|
|
|
55,978
|
|
||
Materials and supplies
|
76,295
|
|
|
76,292
|
|
||
|
$
|
132,318
|
|
|
$
|
137,885
|
|
|
June 30, 2019
|
|
|
December 31, 2018
|
|
||
Senior notes, net of unamortized discount and transaction costs of $14,997 (2018 - $4,023)
|
$
|
286,376
|
|
|
$
|
595,977
|
|
Term loan, net of unamortized transaction costs of $2,542
|
197,458
|
|
|
—
|
|
||
Derivative asset
|
(1,373
|
)
|
|
—
|
|
||
Total debt
|
$
|
482,461
|
|
|
$
|
595,977
|
|
Less current portion
|
33,333
|
|
|
—
|
|
||
|
$
|
449,128
|
|
|
$
|
595,977
|
|
i)
|
At any time prior to December 1, 2021 at a redemption price equal to 100% of the aggregate principal amount of the senior secured notes, accrued and unpaid interest and a premium at the greater of 1% of the principal value of the notes to be redeemed, or the present value of remaining interest to December 1, 2021 discounted at the treasury yield plus 50 basis points.
|
ii)
|
On and after the dates provided below, at the redemption prices, expressed as a percentage of principal amount of the notes to be redeemed, set forth below, plus accrued and unpaid interest on the senior secured notes:
|
i)
|
A $200 million non-revolving term loan with
six equal semi-annual payments commencing June 30, 2020
. The term loan was used to redeem in part the Company’s outstanding $600 million 6.125% senior notes due December 2020.
|
ii)
|
A $250 million revolving credit facility with
a maturity date of June 5, 2024
.
|
|
Turkey
|
|
|
Canada
|
|
|
Greece
|
|
|
Total
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Gold revenue - dore
|
$
|
34,265
|
|
|
$
|
32,368
|
|
|
$
|
—
|
|
|
$
|
66,633
|
|
Gold revenue - concentrate
|
64,420
|
|
|
—
|
|
|
18,212
|
|
|
82,632
|
|
||||
Silver revenue - dore
|
264
|
|
|
150
|
|
|
—
|
|
|
414
|
|
||||
Silver revenue - concentrate
|
1,056
|
|
|
—
|
|
|
3,588
|
|
|
4,644
|
|
||||
Lead concentrate
|
—
|
|
|
—
|
|
|
7,853
|
|
|
7,853
|
|
||||
Zinc concentrate
|
—
|
|
|
—
|
|
|
13,017
|
|
|
13,017
|
|
||||
Revenue from contracts with customers
|
$
|
100,005
|
|
|
$
|
32,518
|
|
|
$
|
42,670
|
|
|
$
|
175,193
|
|
Gain (loss) on revaluation of derivatives in trade receivables
|
695
|
|
|
—
|
|
|
(2,210
|
)
|
|
(1,515
|
)
|
||||
|
$
|
100,700
|
|
|
$
|
32,518
|
|
|
$
|
40,460
|
|
|
$
|
173,678
|
|
|
Turkey
|
|
|
Greece
|
|
|
Total
|
|
|||
|
|
|
|
|
|
||||||
Gold revenue - dore
|
$
|
72,597
|
|
|
$
|
—
|
|
|
$
|
72,597
|
|
Gold revenue - concentrate
|
30,578
|
|
|
19,199
|
|
|
49,777
|
|
|||
Silver revenue - dore
|
375
|
|
|
—
|
|
|
375
|
|
|||
Silver revenue - concentrate
|
950
|
|
|
3,480
|
|
|
4,430
|
|
|||
Lead concentrate
|
—
|
|
|
9,720
|
|
|
9,720
|
|
|||
Zinc concentrate
|
—
|
|
|
16,835
|
|
|
16,835
|
|
|||
Revenue from contracts with customers
|
$
|
104,500
|
|
|
$
|
49,234
|
|
|
$
|
153,734
|
|
Loss on revaluation of derivatives in trade receivables
|
—
|
|
|
(563
|
)
|
|
(563
|
)
|
|||
|
$
|
104,500
|
|
|
$
|
48,671
|
|
|
$
|
153,171
|
|
|
Turkey
|
|
|
Canada
|
|
|
Greece
|
|
|
Total
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Gold revenue - dore
|
$
|
69,888
|
|
|
$
|
32,368
|
|
|
$
|
—
|
|
|
$
|
102,256
|
|
Gold revenue - concentrate
|
71,897
|
|
|
—
|
|
|
29,857
|
|
|
101,754
|
|
||||
Silver revenue - dore
|
535
|
|
|
150
|
|
|
—
|
|
|
685
|
|
||||
Silver revenue - concentrate
|
1,154
|
|
|
—
|
|
|
8,054
|
|
|
9,208
|
|
||||
Lead concentrate
|
—
|
|
|
—
|
|
|
15,042
|
|
|
15,042
|
|
||||
Zinc concentrate
|
—
|
|
|
—
|
|
|
24,661
|
|
|
24,661
|
|
||||
Revenue from contracts with customers
|
$
|
143,474
|
|
|
$
|
32,518
|
|
|
$
|
77,614
|
|
|
$
|
253,606
|
|
Gain (loss) on revaluation of derivatives in trade receivables
|
695
|
|
|
—
|
|
|
(599
|
)
|
|
96
|
|
||||
|
$
|
144,169
|
|
|
$
|
32,518
|
|
|
$
|
77,015
|
|
|
$
|
253,702
|
|
|
Turkey
|
|
|
Greece
|
|
|
Total
|
|
|||
|
|
|
|
|
|
||||||
Gold revenue - dore
|
$
|
144,334
|
|
|
$
|
—
|
|
|
$
|
144,334
|
|
Gold revenue - concentrate
|
66,651
|
|
|
26,797
|
|
|
93,448
|
|
|||
Silver revenue - dore
|
697
|
|
|
—
|
|
|
697
|
|
|||
Silver revenue - concentrate
|
1,828
|
|
|
5,281
|
|
|
7,109
|
|
|||
Lead concentrate
|
—
|
|
|
15,695
|
|
|
15,695
|
|
|||
Zinc concentrate
|
—
|
|
|
24,662
|
|
|
24,662
|
|
|||
Revenue from contracts with customers
|
$
|
213,510
|
|
|
$
|
72,435
|
|
|
$
|
285,945
|
|
Loss on revaluation of derivatives in trade receivables
|
—
|
|
|
(869
|
)
|
|
(869
|
)
|
|||
|
$
|
213,510
|
|
|
$
|
71,566
|
|
|
$
|
285,076
|
|
|
Three months ended June 30,
|
|
|
Six months ended June 30,
|
|
||||||||
(a) Other income
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||
|
|
|
|
|
|
||||||||
(Loss) gain on disposal of assets
|
$
|
(951
|
)
|
$
|
42
|
|
|
$
|
(1,013
|
)
|
$
|
128
|
|
Gain on derivatives and other investments
|
—
|
|
1,406
|
|
|
—
|
|
2,194
|
|
||||
Interest and other income
|
1,531
|
|
2,175
|
|
|
3,226
|
|
5,272
|
|
||||
Income from royalty sale
|
8,075
|
|
—
|
|
|
8,075
|
|
—
|
|
||||
|
$
|
8,655
|
|
$
|
3,623
|
|
|
$
|
10,288
|
|
$
|
7,594
|
|
|
Three months ended June 30,
|
|
|
Six months ended June 30,
|
|
||||||||
(b) Finance costs
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||
|
|
|
|
|
|
||||||||
Asset retirement obligation accretion
|
$
|
633
|
|
$
|
509
|
|
|
$
|
1,266
|
|
$
|
1,019
|
|
Interest on the senior secured notes
|
2,278
|
|
—
|
|
|
2,278
|
|
—
|
|
||||
Interest on the term loan
|
902
|
|
—
|
|
|
902
|
|
—
|
|
||||
Interest on the 2012 notes
|
7,790
|
|
9,736
|
|
|
17,526
|
|
19,472
|
|
||||
Write-off of unamortized transaction costs
of 2012 notes and ARCA (note 5(b)(c))
|
3,559
|
|
—
|
|
|
3,559
|
|
—
|
|
||||
Other interest and financing costs
|
1,624
|
|
505
|
|
|
2,434
|
|
955
|
|
||||
Total finance costs
|
$
|
16,786
|
|
$
|
10,750
|
|
|
$
|
27,965
|
|
$
|
21,446
|
|
Less: Capitalized interest
|
—
|
|
7,550
|
|
|
3,848
|
|
14,172
|
|
||||
|
$
|
16,786
|
|
$
|
3,200
|
|
|
$
|
24,117
|
|
$
|
7,274
|
|
|
Three months ended June 30,
|
|
|
Six months ended June 30,
|
|
||||||||||
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Share options
|
$
|
786
|
|
|
$
|
848
|
|
|
$
|
1,569
|
|
|
$
|
1,651
|
|
Restricted shares with no performance criteria
|
395
|
|
|
383
|
|
|
835
|
|
|
686
|
|
||||
Restricted shares with performance criteria
|
347
|
|
|
62
|
|
|
508
|
|
|
62
|
|
||||
Deferred units
|
384
|
|
|
999
|
|
|
1,384
|
|
|
587
|
|
||||
Performance shares
|
586
|
|
|
552
|
|
|
1,104
|
|
|
1,176
|
|
||||
|
$
|
2,498
|
|
|
$
|
2,844
|
|
|
$
|
5,400
|
|
|
$
|
4,162
|
|
|
2019
|
|||
|
Weighted
average exercise price Cdn$ |
|
Number of
options |
|
At January 1,
|
22.56
|
|
5,591,228
|
|
Granted
|
5.68
|
|
2,234,315
|
|
Exercised
|
6.20
|
|
(3,859
|
)
|
Expired
|
39.20
|
|
(677,322
|
)
|
Forfeited
|
23.09
|
|
(1,086,085
|
)
|
At June 30,
|
14.38
|
|
6,058,277
|
|
|
2019
|
|
2018
|
|
At January 1,
|
333,119
|
|
341,198
|
|
Granted
|
391,092
|
|
210,990
|
|
Redeemed
|
(119,893
|
)
|
(181,491
|
)
|
Forfeited
|
(17,766
|
)
|
(30,543
|
)
|
At June 30,
|
586,552
|
|
340,154
|
|
|
2019
|
|
2018
|
|
At January 1,
|
152,927
|
|
—
|
|
Granted
|
412,473
|
|
167,976
|
|
Redeemed
|
—
|
|
—
|
|
Forfeited
|
(38,695
|
)
|
—
|
|
At June 30,
|
526,705
|
|
167,976
|
|
|
2019
|
|
2018
|
|
At January 1,
|
484,899
|
|
381,293
|
|
Granted
|
264,083
|
|
254,000
|
|
Expired
|
(133,043
|
)
|
(118,605
|
)
|
Forfeited
|
—
|
|
(39,311
|
)
|
At June 30,
|
615,939
|
|
477,377
|
|
|
Three months ended June 30,
|
|
|
Six months ended June 30,
|
|
||||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||
Changes in non-cash working capital
|
|
|
|
|
|
||||||||
Accounts receivable and other
|
$
|
(10,394
|
)
|
$
|
(3,763
|
)
|
|
$
|
4,787
|
|
$
|
(5,891
|
)
|
Inventories
|
9,629
|
|
25,664
|
|
|
5,378
|
|
14,709
|
|
||||
Accounts payable and accrued liabilities
|
14,288
|
|
(4,731
|
)
|
|
(5,398
|
)
|
(18,730
|
)
|
||||
Total
|
$
|
13,523
|
|
$
|
17,170
|
|
|
$
|
4,767
|
|
$
|
(9,912
|
)
|
|
Within 1 year
|
|
2 to 3 years
|
|
4 to 5 years
|
|
Over 5 years
|
|
Total
|
|
|||||
|
|
|
|
|
|
||||||||||
Debt
|
$
|
33,333
|
|
$
|
133,333
|
|
$
|
333,334
|
|
$
|
—
|
|
$
|
500,000
|
|
Purchase obligations
|
32,936
|
|
1,318
|
|
273
|
|
—
|
|
34,527
|
|
|||||
Leases
|
10,304
|
|
16,939
|
|
3,402
|
|
1,039
|
|
31,684
|
|
|||||
Mineral properties
|
5,879
|
|
11,971
|
|
11,948
|
|
20,546
|
|
50,344
|
|
|||||
Totals
|
$
|
82,452
|
|
$
|
163,561
|
|
$
|
348,957
|
|
$
|
21,585
|
|
$
|
616,555
|
|
•
|
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).
|
|
|
June 30, 2019
|
|
|
Cash
|
|
$
|
724
|
|
Accounts receivable and other
|
|
956
|
|
|
Property, plant and equipment and iron ore inventory
|
|
11,690
|
|
|
Assets held for sale
|
|
$
|
13,370
|
|
|
|
|
||
Accounts payable and accrued liabilities
|
|
$
|
302
|
|
Asset retirement obligations
|
|
4,068
|
|
|
Liabilities associated with assets held for sale
|
|
$
|
4,370
|
|
For the three months ended June 30, 2019
|
Turkey
|
|
Canada
|
|
Greece
|
|
Romania
|
|
Brazil
|
|
Other
|
|
Total
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
Earnings and loss information
|
|
|
|
|
|
|
|
||||||||||||||
Revenue
|
$
|
100,701
|
|
$
|
32,518
|
|
$
|
40,459
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
173,678
|
|
Production costs
|
43,150
|
|
13,548
|
|
44,198
|
|
—
|
|
—
|
|
—
|
|
100,896
|
|
|||||||
Depreciation
|
21,036
|
|
10,427
|
|
9,424
|
|
—
|
|
—
|
|
301
|
|
41,188
|
|
|||||||
Earnings (loss) from mine operations
|
$
|
36,515
|
|
$
|
8,543
|
|
$
|
(13,163
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
(301
|
)
|
$
|
31,594
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other significant items of income and expense
|
|
|
|
|
|
|
|
||||||||||||||
Reversal of impairment (note 13)
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
11,690
|
|
$
|
—
|
|
$
|
11,690
|
|
Write-down of assets
|
410
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
410
|
|
|||||||
Exploration and evaluation expense
|
608
|
|
579
|
|
—
|
|
1,060
|
|
117
|
|
165
|
|
2,529
|
|
|||||||
Income tax expense (recovery)
|
10,244
|
|
1,136
|
|
(1,487
|
)
|
(1,555
|
)
|
(328
|
)
|
—
|
|
8,010
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
Capital expenditure information
|
|
|
|
|
|
|
|
||||||||||||||
Additions to property, plant and equipment during the period (*)
|
$
|
8,890
|
|
$
|
24,728
|
|
$
|
8,291
|
|
$
|
6
|
|
$
|
827
|
|
$
|
2
|
|
$
|
42,744
|
|
For the three months ended June 30, 2018
|
Turkey
|
|
Canada
|
|
Greece
|
|
Romania
|
|
Brazil
|
|
Other
|
|
Total
|
|
|||||||
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||
Earnings and loss information
|
|
|
|
|
|
|
|
||||||||||||||
Revenue
|
$
|
104,500
|
|
$
|
—
|
|
$
|
48,671
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
153,171
|
|
Production costs
|
52,191
|
|
—
|
|
33,653
|
|
—
|
|
—
|
|
—
|
|
85,844
|
|
|||||||
Depreciation
|
23,368
|
|
—
|
|
10,992
|
|
—
|
|
—
|
|
122
|
|
34,482
|
|
|||||||
Earnings (loss) from mine operations
|
$
|
28,941
|
|
$
|
—
|
|
$
|
4,026
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(122
|
)
|
$
|
32,845
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other significant items of income and expense
|
|
|
|
|
|
|
|
||||||||||||||
Write-down of assets
|
$
|
390
|
|
$
|
—
|
|
$
|
2,999
|
|
$
|
1,094
|
|
$
|
—
|
|
$
|
—
|
|
$
|
4,483
|
|
Exploration and evaluation expense
|
329
|
|
1,007
|
|
1,465
|
|
3,219
|
|
378
|
|
451
|
|
6,849
|
|
|||||||
Income tax expense (recovery)
|
19,982
|
|
(1,718
|
)
|
(1,601
|
)
|
1,079
|
|
3,837
|
|
—
|
|
21,579
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
Capital expenditure information
|
|
|
|
|
|
|
|
||||||||||||||
Additions to property, plant and equipment during the period (*)
|
$
|
14,166
|
|
$
|
28,721
|
|
$
|
26,268
|
|
$
|
2,034
|
|
$
|
2,046
|
|
$
|
377
|
|
$
|
73,612
|
|
Capitalized interest (note 7(b))
|
—
|
|
1,465
|
|
6,085
|
|
—
|
|
—
|
|
—
|
|
7,550
|
|
For the six months ended June 30, 2019
|
Turkey
|
|
Canada
|
|
Greece
|
|
Romania
|
|
Brazil
|
|
Other
|
|
Total
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
Earnings and loss information
|
|
|
|
|
|
|
|
||||||||||||||
Revenue
|
$
|
144,170
|
|
$
|
32,518
|
|
$
|
77,014
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
253,702
|
|
Production costs
|
63,152
|
|
13,548
|
|
76,117
|
|
—
|
|
—
|
|
—
|
|
152,817
|
|
|||||||
Depreciation (note 4)
|
27,291
|
|
10,427
|
|
22,778
|
|
—
|
|
—
|
|
634
|
|
61,130
|
|
|||||||
Earnings (loss) from mine operations
|
$
|
53,727
|
|
$
|
8,543
|
|
$
|
(21,881
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
(634
|
)
|
$
|
39,755
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other significant items of income and expense
|
|
|
|
|
|
|
|
||||||||||||||
Reversal of impairment (note 13)
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
11,690
|
|
$
|
—
|
|
$
|
11,690
|
|
Write-down of assets
|
427
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
427
|
|
|||||||
Exploration and evaluation expense
|
905
|
|
583
|
|
2,852
|
|
2,471
|
|
228
|
|
855
|
|
7,894
|
|
|||||||
Income tax expense (recovery)
|
18,505
|
|
(364
|
)
|
(3,119
|
)
|
(698
|
)
|
(282
|
)
|
—
|
|
14,042
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
Capital expenditure information
|
|
|
|
|
|
|
|
||||||||||||||
Additions to property, plant and equipment during the period
(*)
|
$
|
20,605
|
|
$
|
42,580
|
|
$
|
14,382
|
|
$
|
8
|
|
$
|
1,631
|
|
$
|
7
|
|
$
|
79,213
|
|
Capitalized interest (note 7(b))
|
—
|
|
3,848
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,848
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
Information about assets and liabilities
|
|
|
|
|
|
|
|
||||||||||||||
Property, plant and equipment
|
$
|
711,365
|
|
$
|
599,843
|
|
$
|
2,064,692
|
|
$
|
415,613
|
|
$
|
203,027
|
|
$
|
4,805
|
|
$
|
3,999,345
|
|
Goodwill
|
—
|
|
92,591
|
|
—
|
|
—
|
|
—
|
|
—
|
|
92,591
|
|
|||||||
|
$
|
711,365
|
|
$
|
692,434
|
|
$
|
2,064,692
|
|
$
|
415,613
|
|
$
|
203,027
|
|
$
|
4,805
|
|
$
|
4,091,936
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Debt
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
482,461
|
|
$
|
482,461
|
|
For the six months ended June 30, 2018
|
Turkey
|
|
Canada
|
|
Greece
|
|
Romania
|
|
Brazil
|
|
Other
|
|
Total
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
Earnings and loss information
|
|
|
|
|
|
|
|
||||||||||||||
Revenue
|
$
|
213,510
|
|
$
|
—
|
|
$
|
71,566
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
285,076
|
|
Production costs
|
100,932
|
|
—
|
|
52,147
|
|
—
|
|
—
|
|
—
|
|
153,079
|
|
|||||||
Depreciation
|
47,103
|
|
—
|
|
16,362
|
|
—
|
|
—
|
|
205
|
|
63,670
|
|
|||||||
Earnings (loss) from mine operations
|
$
|
65,475
|
|
$
|
—
|
|
$
|
3,057
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(205
|
)
|
$
|
68,327
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other significant items of income and expense
|
|
|
|
|
|
|
|
||||||||||||||
Write-down of assets
|
$
|
849
|
|
$
|
—
|
|
$
|
4,875
|
|
$
|
2,783
|
|
$
|
—
|
|
$
|
—
|
|
$
|
8,507
|
|
Exploration and evaluation expense
|
619
|
|
1,007
|
|
3,196
|
|
4,108
|
|
1,137
|
|
930
|
|
10,997
|
|
|||||||
Income tax expense (recovery)
|
32,413
|
|
(3,479
|
)
|
(2,964
|
)
|
(1,036
|
)
|
3,729
|
|
—
|
|
28,663
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
Capital expenditure information
|
|
|
|
|
|
|
|
||||||||||||||
Additions to property, plant and equipment during the period (*)
|
$
|
26,749
|
|
$
|
50,863
|
|
$
|
54,982
|
|
$
|
4,521
|
|
$
|
3,719
|
|
$
|
772
|
|
$
|
141,606
|
|
Capitalized interest (note 7(b))
|
—
|
|
2,245
|
|
11,927
|
|
—
|
|
—
|
|
—
|
|
14,172
|
|
For the year ended December 31, 2018
|
Turkey
|
|
Canada
|
|
Greece
|
|
Romania
|
|
Brazil
|
|
Other
|
|
Total
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
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
|
|
Management’s Discussion and Analysis
|
|
For the three and six months ended June 30, 2019 and 2018
|
|
|
|
|
|
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 six months ended June 30, 2019 and 2018
|
|
|
|
|
2
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
Section
|
Page
|
|
|
|
|
Second Quarter and Subsequent Period 2019 Highlights
|
|
|
|
Review of Financial Results
|
|
|
|
Operations Update
|
|
|
|
Development Projects
|
|
|
|
Exploration and Evaluation
|
|
|
|
Non-IFRS Measures
|
|
|
|
Quarterly Results
|
|
|
|
Financial Condition and Liquidity
|
|
|
|
Outstanding Share Information
|
|
|
|
Managing Risk
|
|
|
|
Accounting Matters
|
|
|
|
Internal Controls over Financial Reporting
|
|
|
|
Qualified Person
|
|
|
|
Forward-Looking Statements and Information
|
|
|
|
Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated and Inferred Resources
|
|
|
|
Corporate Information
|
|
|
|
|
|
3
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
•
|
Perama Hill (100%), gold-silver, Greece;
|
•
|
Certej (80.5%), gold, Romania; and
|
•
|
Tocantinzinho (100%), gold, Brazil.
|
|
|
4
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
•
|
Steady Q2 gold production and reiterating 2019 annual guidance:
Gold production for the quarter totalled
91,803
ounces with
174,780
ounces produced year-to-date. Gold production included
33,140
ounces from Lamaque in its first quarter of commercial operations, of which
5,057
ounces were produced from stockpiles mined during the pre-commercial production period.
|
•
|
Higher sales volumes in the quarter resulted in revenue of $173.7 million:
Total gold sales for the second quarter were
113,685
ounces with
156,759
ounces sold year-to-date. Second quarter sales do not include sales of the remaining 11,705 ounces that were mined at Lamaque during the pre-commercial production period. Net proceeds of $7.6 million were realized in the quarter from these pre-commercial production sales.
|
•
|
Net earnings per share:
Net earnings to shareholders in the quarter totalled
$12.2
million, or
$0.08
per share. Adjusted net loss was
$1.2
million, or
$0.01
loss per share, after removing, among other things, the impact of one-time asset sales.
|
•
|
EBITDA
:
Higher sales volumes in the quarter resulted in earnings before interest, taxes and depreciation and amortization ("EBITDA") of $
74.5
million. Adjusted EBITDA of $
66.8
million excludes the impact of one-time asset sales but includes net proceeds from pre-commercial production at Lamaque.
|
•
|
Refinancing completed:
The Company completed its offering of $300 million aggregate principal amount of 9.5% senior second lien notes due 2024 (the "Notes") and its $450 million amended and restated senior secured credit facility (the "Facility"). Eldorado used the net proceeds from the sale of the Notes and $200 million in term loan proceeds drawn under the Facility, together with $100 million cash on hand, to redeem its outstanding $600 million 6.125% senior notes due December 2020.
|
•
|
Liquidity remains solid:
The Company finished the quarter with approximately $300 million of available cash including
$119.9
million in cash, cash equivalents and term deposits and approximately $179 million available under its $250 million line of credit, with $71 million of capacity on the line of credit allocated to secure certain obligations in connection with its operations.
|
•
|
All-in sustaining costs lower due to increased sales volumes:
All-in sustaining costs were
$917
per ounce of gold sold in the quarter compared to
$934
per ounce sold during the second quarter of 2018.
|
•
|
Divestiture of non-core assets:
The Company completed a sale of a net smelter royalty interest held on a property in Turkey for consideration of $8.1 million, of which $5.0 million will be settled through the transfer of an exploration license and the balance to be paid in cash. Subsequent to the quarter, the Company also executed a share purchase agreement for the sale of its Vila Nova iron ore mine for consideration of $9 million in cash, subject to the purchaser securing financing and other standard closing conditions.
|
•
|
Net earnings per share:
Net earnings to shareholders in the quarter totalled
$12.2
million, or
$0.08
per share. Adjusted net loss was
$1.2
million, or
$0.01
loss per share, after removing, among other things, a gain on the sale of the net smelter royalty interest and the reversal of impairment relating to Vila Nova.
|
(1)
Throughout this MD&A we use cash operating costs, cash operating costs per ounce sold, total cash costs, total cash costs per ounce sold, adjusted net earnings/(loss), adjusted net earnings (loss) per share, average realized gold price per ounce sold, earnings before interest, taxes and depreciation and amortization, adjusted earnings before interest, taxes and depreciation and amortization, working capital, cash flow from operations before changes in non-cash working capital and sustaining capital as additional measures of Company performance. These are non-IFRS measures. Please see the section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS measures.
|
5
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
|
3 months ended June 30,
|
|
|
6 months ended June 30,
|
|
||||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||
Revenue
(1,3)
|
|
$173.7
|
|
|
$153.2
|
|
|
|
$253.7
|
|
|
$285.1
|
|
Gold revenue
(1,3)
|
|
$150.1
|
|
|
$121.3
|
|
|
|
$203.9
|
|
|
$236.8
|
|
Gold produced (oz)
(2)
|
91,803
|
|
99,105
|
|
|
174,780
|
|
188,479
|
|
||||
Gold sold (oz)
(1,3)
|
113,685
|
|
94,224
|
|
|
156,759
|
|
180,811
|
|
||||
Average realized gold price ($/oz sold)
(7)
|
|
$1,321
|
|
|
$1,287
|
|
|
|
$1,301
|
|
|
$1,310
|
|
Cash operating costs ($/oz sold)
(4,7)
|
631
|
|
587
|
|
|
629
|
|
579
|
|
||||
Total cash costs ($/oz sold)
(4,7)
|
670
|
|
610
|
|
|
665
|
|
604
|
|
||||
All-in sustaining costs ($/oz sold)
(4,7)
|
917
|
|
934
|
|
|
977
|
|
887
|
|
||||
Net earnings (loss) for the period
(5,6)
|
12.2
|
|
(24.4
|
)
|
|
(14.8
|
)
|
(15.7
|
)
|
||||
Net earnings (loss) per share – basic ($/share)
(5)
|
0.08
|
|
(0.15
|
)
|
|
(0.09
|
)
|
(0.10
|
)
|
||||
Adjusted net earnings (loss)
(5,6,7)
|
(1.2
|
)
|
(1.8
|
)
|
|
(19.2
|
)
|
12.4
|
|
||||
Adjusted net earnings (loss) per share ($/share)
(5,6,7)
|
(0.01
|
)
|
(0.01
|
)
|
|
(0.12
|
)
|
0.08
|
|
||||
Cash flow from operating activities before changes in working capital
(7,8)
|
37.5
|
|
26.3
|
|
|
45.6
|
|
69.7
|
|
||||
Cash, cash equivalents and term deposits
|
|
$119.9
|
|
|
$429.8
|
|
|
|
$119.9
|
|
|
$429.8
|
|
(1)
|
Revenue and ounces sold were impacted by delayed shipments at Efemcukuru in Q1 2019 that were completed in Q2 2019. This timing issue resulted in lower ounces sold in Q1 2019 and higher ounces sold in Q2 2019. Q2 2019 sales also included approximately 8,000 ounces sold from Olympias that were produced in 2018.
|
(2)
|
Includes pre-commercial production at Lamaque and Olympias (Q1 2018).
|
(3)
|
Excludes sales of inventory mined at Lamaque and Olympias (Q1 2018) during the pre-commercial production period.
|
(4)
|
By-product revenues are off-set against cash operating costs.
|
(5)
|
Attributable to shareholders of the Company.
|
(6)
|
See reconciliation of net earnings (loss) to adjusted net earnings (loss) on p. 23.
|
(7)
|
These measures are non-IFRS measures. See the section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS measures.
|
(8)
|
2018 amounts have been adjusted to reflect reclassifications in cash flow from operating activities in the current periods.
|
|
|
6
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
•
|
Kisladag produced
26,072
ounces during the quarter, a decrease of
53%
from Q2 2018 production of
55,930
ounces, due to the suspension of new ore placement on the leach pad from April 2018 through March 2019.
|
•
|
Efemcukuru produced
25,667
ounces during the quarter, an increase of
6%
from Q2 2018 production of
24,146
ounces, primarily a result of higher grades.
|
•
|
Olympias produced
6,924
ounces during the quarter, a decrease of
56%
from Q2 2018 production of
15,895
ounces, as a result of reduced tonnage fed to the processing plant. This was a result of limited headings underground due to slower than anticipated capital development and a backlog of stopes to be filled.
|
•
|
Lamaque had a strong first quarter of commercial operations with production of
33,140
ounces, including 5,057 ounces from inventory mined during the pre-commercial production period.
|
|
|
7
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
|
|
8
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
|
|
9
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
|
3 months ended June 30,
|
|
6 months ended June 30,
|
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||
Total
|
|
|
|
|
||||||||
Ounces produced
(1)
|
91,803
|
|
99,105
|
|
174,780
|
|
188,479
|
|
||||
Ounces sold
(2, 4)
|
113,685
|
|
94,224
|
|
156,759
|
|
180,811
|
|
||||
Cash operating costs ($/oz sold)
(5)
|
|
$631
|
|
|
$587
|
|
|
$629
|
|
|
$579
|
|
All-in sustaining costs ($/oz sold)
(5)
|
|
$917
|
|
|
$934
|
|
|
$977
|
|
|
$887
|
|
Sustaining capex
(5)
|
|
$15.6
|
|
|
$13.8
|
|
|
$26.4
|
|
|
$24.9
|
|
Kisladag
|
|
|
|
|
||||||||
Ounces produced
(3)
|
26,072
|
|
55,930
|
|
53,319
|
|
109,744
|
|
||||
Ounces sold
|
26,072
|
|
55,631
|
|
53,327
|
|
109,470
|
|
||||
Cash operating costs ($/oz sold)
(5)
|
|
$381
|
|
|
$664
|
|
|
$471
|
|
|
$621
|
|
All-in sustaining costs ($/oz sold)
(5)
|
|
$471
|
|
|
$808
|
|
|
$590
|
|
|
$762
|
|
Sustaining capex
(5)
|
|
$1.1
|
|
|
$5.5
|
|
|
$4.2
|
|
|
$10.3
|
|
Efemcukuru
|
|
|
|
|
||||||||
Ounces produced
|
25,667
|
|
24,146
|
|
51,791
|
|
47,001
|
|
||||
Ounces sold
(4)
|
48,821
|
|
23,853
|
|
54,639
|
|
50,853
|
|
||||
Cash operating costs ($/oz sold)
(5)
|
|
$593
|
|
|
$515
|
|
|
$598
|
|
|
$524
|
|
All-in sustaining costs ($/oz sold)
(5)
|
|
$774
|
|
|
$832
|
|
|
$840
|
|
|
$781
|
|
Sustaining capex
(5)
|
|
$5.4
|
|
|
$5.8
|
|
|
$9.0
|
|
|
$9.5
|
|
Olympias
|
|
|
|
|
||||||||
Ounces produced
(1)
|
6,924
|
|
15,895
|
|
16,852
|
|
25,860
|
|
||||
Ounces sold
(2)
|
14,462
|
|
14,740
|
|
24,463
|
|
20,488
|
|
||||
Cash operating costs ($/oz sold)
(5)
|
|
$1,402
|
|
|
$412
|
|
|
$1,156
|
|
|
$493
|
|
All-in sustaining costs ($/oz sold)
(5)
|
|
$1,731
|
|
|
$715
|
|
|
$1,553
|
|
|
$897
|
|
Sustaining capex
(5)
|
|
$3.8
|
|
|
$2.5
|
|
|
$7.9
|
|
|
$5.1
|
|
Lamaque
|
|
|
|
|
||||||||
Ounces produced
(1)
|
33,140
|
|
3,134
|
|
52,818
|
|
5,874
|
|
||||
Ounces sold
(2)
|
24,330
|
|
n/a
|
|
24,330
|
|
n/a
|
|
||||
Cash operating costs ($/oz sold)
(5)
|
|
$517
|
|
n/a
|
|
|
$517
|
|
n/a
|
|
||
All-in sustaining costs ($/oz sold)
(5)
|
|
$814
|
|
n/a
|
|
|
$814
|
|
n/a
|
|
||
Sustaining capex
(5)
|
|
$5.3
|
|
n/a
|
|
|
$5.3
|
|
n/a
|
|
(1)
|
Includes pre-commercial production at Lamaque and at Olympias (Q1 2018).
|
(2)
|
Excludes sales of inventory produced at Lamaque and Olympias (Q1 2018) during the pre-commercial production period. In the three and six months ended June 30, 2019, 11,705 ounces and 27,627 ounces, respectively, were sold from inventory produced during the pre-commercial production period.
|
(3)
|
Kisladag resumed mining, crushing and placing ore on the heap leach pad on April 1, 2019. This activity had been suspended since April 2018.
|
(4)
|
Efemcukuru ounces sold were impacted by delayed shipments in Q1 2019 that were completed in Q2 2019. This timing issue resulted in lower ounces sold in Q1 2019 and higher ounces sold in Q2 2019.
|
(5)
|
These measures are non-IFRS measures. See the section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS measures.
|
|
|
10
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
Operating Data
(1)
|
3 months ended June 30,
|
|
6 months ended June 30,
|
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||
Tonnes placed on pad
|
2,680,469
|
|
358,827
|
|
2,680,469
|
|
3,206,494
|
|
||||
Head grade (g/t Au)
|
1.11
|
|
1.01
|
|
1.11
|
|
1.13
|
|
||||
Gold (oz)
|
|
|
|
|
||||||||
- Produced
|
26,072
|
|
55,930
|
|
53,319
|
|
109,744
|
|
||||
- Sold
|
26,072
|
|
55,631
|
|
53,327
|
|
109,470
|
|
||||
Cash operating costs ($/oz sold)
|
|
$381
|
|
|
$664
|
|
|
$471
|
|
|
$621
|
|
All-in sustaining costs ($/oz sold)
|
|
$471
|
|
|
$808
|
|
|
$590
|
|
|
$762
|
|
Financial Data
|
|
|
|
|
||||||||
Gold revenue
|
|
$34.3
|
|
|
$72.6
|
|
|
$69.9
|
|
|
$144.3
|
|
Depreciation and depletion
|
6.0
|
|
15.1
|
|
9.8
|
|
28.6
|
|
||||
Earnings from mining operations
|
17.8
|
|
19.5
|
|
33.8
|
|
45.4
|
|
||||
Sustaining capital expenditures
|
|
$1.1
|
|
|
$5.5
|
|
|
$4.2
|
|
|
$10.3
|
|
(1)
|
Suspension of ore placement on the heap leach pad from April 2018 through March 2019.
|
|
|
11
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
Operating Data
|
3 months ended June 30,
|
|
6 months ended June 30,
|
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||
Tonnes milled
|
125,368
|
|
126,304
|
|
252,184
|
|
250,639
|
|
||||
Head grade (g/t Au)
|
7.19
|
|
6.78
|
|
7.27
|
|
6.63
|
|
||||
Average recovery rate (to concentrate)
|
93.9
|
%
|
94.4
|
%
|
93.9
|
%
|
94.4
|
%
|
||||
Gold (oz)
|
|
|
|
|
||||||||
- Produced
|
25,667
|
|
24,146
|
|
51,791
|
|
47,001
|
|
||||
- Sold
(1)
|
48,821
|
|
23,853
|
|
54,639
|
|
50,853
|
|
||||
Cash operating costs ($/oz sold)
|
|
$593
|
|
|
$515
|
|
|
$598
|
|
|
$524
|
|
All-in sustaining costs ($/oz sold)
|
|
$774
|
|
|
$832
|
|
|
$840
|
|
|
$781
|
|
Financial Data
|
|
|
|
|
||||||||
Gold revenue
(1)
|
|
$65.2
|
|
|
$30.6
|
|
|
$72.6
|
|
|
$66.7
|
|
Depreciation and depletion
(1)
|
15.2
|
|
8.3
|
|
17.5
|
|
18.4
|
|
||||
Earnings from mining operations
(1)
|
18.5
|
|
9.5
|
|
19.9
|
|
20.2
|
|
||||
Sustaining capital expenditures
|
|
$5.4
|
|
|
$5.8
|
|
|
$9.0
|
|
|
$9.5
|
|
(1)
|
Efemcukuru ounces sold, revenue and earnings were impacted by delayed shipments in Q1 2019 that were completed in Q2 2019. This timing issue resulted in lower ounces sold in Q1 2019 and higher ounces sold in Q2 2019.
|
|
|
12
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
Operating Data
|
3 months ended June 30,
|
|
6 months ended June 30,
|
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||
Tonnes milled
|
65,814
|
|
93,430
|
|
143,962
|
|
170,395
|
|
||||
Head grade (g/t Au)
|
6.41
|
|
8.76
|
|
6.96
|
|
8.16
|
|
||||
Average gold recovery rate (to concentrate)
|
81.7
|
%
|
83.5
|
%
|
83.2
|
%
|
83.4
|
%
|
||||
Gold (oz)
(1,2)
|
|
|
|
|
||||||||
- Produced
|
6,924
|
|
15,895
|
|
16,852
|
|
25,860
|
|
||||
- Sold
|
14,462
|
|
14,740
|
|
24,463
|
|
20,488
|
|
||||
Silver (oz)
(2)
|
118,188
|
|
126,193
|
|
248,292
|
|
303,209
|
|
||||
Lead (t)
(2)
|
1,126
|
|
1,362
|
|
2,537
|
|
3,085
|
|
||||
Zinc (t)
(2)
|
1,442
|
|
2,178
|
|
3,659
|
|
4,285
|
|
||||
Cash operating costs ($/oz sold)
|
|
$1,402
|
|
|
$412
|
|
|
$1,156
|
|
|
$493
|
|
All-in sustaining costs ($/oz sold)
|
|
$1,731
|
|
|
$715
|
|
|
$1,553
|
|
|
$897
|
|
Financial Data
|
|
|
|
|
||||||||
Gold revenue
|
|
$18.2
|
|
|
$17.7
|
|
|
$29.0
|
|
|
$24.9
|
|
Silver and base metal revenue
|
7.7
|
|
14.4
|
|
21.5
|
|
20.4
|
|
||||
Depreciation and depletion
|
9.1
|
|
10.9
|
|
22.2
|
|
16.3
|
|
||||
(Loss) earnings from mining operations
|
(11.0
|
)
|
1.1
|
|
(21.1
|
)
|
(0.8
|
)
|
||||
Sustaining capital expenditures
|
|
$3.8
|
|
|
$2.5
|
|
|
$7.9
|
|
|
$5.1
|
|
(1)
|
Includes pre-commercial production in Q1 2018 and payable ounces in Pb-Ag concentrate.
|
(2)
|
Payable metal produced.
|
|
|
13
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
Operating Data
|
3 months ended June 30,
|
|
|||
|
2019
|
|
2018
|
|
|
Tonnes milled
|
147,380
|
|
n/a
|
|
|
Head grade (g/t Au)
|
7.31
|
|
n/a
|
|
|
Average recovery rate
|
95.7
|
%
|
n/a
|
|
|
Gold (oz)
|
|
|
|||
- Produced
(1)
|
33,140
|
|
3,134
|
|
|
- Sold
(2)
|
24,330
|
|
n/a
|
|
|
Cash operating costs ($/oz sold)
|
|
$517
|
|
n/a
|
|
All-in sustaining costs ($/oz sold)
|
|
$814
|
|
n/a
|
|
Financial Data
|
|
|
|||
Gold revenue
|
|
$32.4
|
|
n/a
|
|
Silver and base metal revenue
|
0.1
|
|
n/a
|
|
|
Depreciation and depletion
|
10.4
|
|
n/a
|
|
|
Earnings from mining operations
|
8.5
|
|
n/a
|
|
|
Sustaining capital expenditures
|
|
$5.3
|
|
n/a
|
|
(1)
|
Includes 5,057 ounces produced from ore mined during the pre-commercial production period.
|
(2)
|
Does not include 11,705 ounces sold from ore mined during the pre-commercial production period.
|
|
|
14
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
Operating Data
|
3 months ended June 30,
|
|
6 months ended June 30,
|
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||
Tonnes ore processed (dry)
|
47,729
|
|
35,855
|
|
84,987
|
|
73,847
|
|
||||
Pb feed grade
|
5.2
|
%
|
8.5
|
%
|
5.5
|
%
|
6.9
|
%
|
||||
Zn feed grade
|
8.3
|
%
|
10.3
|
%
|
9.0
|
%
|
9.5
|
%
|
||||
Tonnes of concentrate produced
|
10,344
|
|
10,475
|
|
19,598
|
|
19,041
|
|
||||
Tonnes of concentrate sold
|
13,464
|
|
12,978
|
|
21,304
|
|
19,748
|
|
||||
Average realized concentrate price ($/t sold)
(1)
|
$1,131
|
|
$1,276
|
|
|
$1,242
|
|
|
$1,326
|
|
||
Cash operating costs ($/t of concentrate sold)
|
|
$1,241
|
|
|
$1,024
|
|
|
$1,227
|
|
|
$1,099
|
|
Financial Data
|
|
|
|
|
||||||||
Concentrate revenues
|
|
$15.2
|
|
|
$16.6
|
|
|
$26.5
|
|
|
$26.2
|
|
Earnings (loss) from mining operations
|
(2.4
|
)
|
3.0
|
|
(0.8
|
)
|
4.0
|
|
||||
Sustaining capital expenditures
|
|
$2.6
|
|
|
$—
|
|
|
$2.6
|
|
|
$—
|
|
(1)
|
Average realized price includes mark to market adjustments.
|
|
|
15
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
|
|
16
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
|
Q2 2019
|
|
Q2 2018
|
|
YTD 2019
|
|
YTD 2018
|
|
||||
Production costs
|
|
$100.9
|
|
|
$85.8
|
|
|
$152.8
|
|
|
$153.1
|
|
Stratoni production costs
|
(17.1
|
)
|
(13.5
|
)
|
(26.7
|
)
|
(22.3
|
)
|
||||
Production costs – excluding Stratoni
|
83.8
|
|
72.3
|
|
126.2
|
|
130.9
|
|
||||
By-product credits and other adjustments
|
(7.7
|
)
|
(14.8
|
)
|
(21.9
|
)
|
(21.6
|
)
|
||||
Royalty expense and production taxes
|
(4.4
|
)
|
(2.2
|
)
|
(5.7
|
)
|
(4.5
|
)
|
||||
Cash operating costs
|
|
$71.7
|
|
|
$55.3
|
|
|
$98.6
|
|
|
$104.7
|
|
Gold ounces sold
|
113,685
|
|
94,224
|
|
156,759
|
|
180,811
|
|
||||
Cash operating costs per ounce sold
|
|
$631
|
|
|
$587
|
|
|
$629
|
|
|
$579
|
|
|
|
17
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
|
Direct mining costs
|
|
|
By-product credits
|
|
|
Refining and selling costs
|
|
|
Other
(1)
|
|
|
Cash operating costs
|
|
|
Gold oz sold
|
|
|
Cash operating costs/oz sold
|
|
||||||
Kisladag
|
|
$25.8
|
|
|
|
($0.2
|
)
|
|
|
$0.1
|
|
|
|
($15.7
|
)
|
|
|
$9.9
|
|
|
26,072
|
|
|
|
$381
|
|
Efemcukuru
|
12.4
|
|
|
(1.1
|
)
|
|
7.1
|
|
|
10.5
|
|
|
28.9
|
|
|
48,821
|
|
|
593
|
|
||||||
Olympias
|
17.8
|
|
|
(6.2
|
)
|
|
3.3
|
|
|
5.4
|
|
|
20.3
|
|
|
14,462
|
|
|
1,402
|
|
||||||
Lamaque
(2)
|
16.2
|
|
|
(0.1
|
)
|
|
—
|
|
|
(3.5
|
)
|
|
12.6
|
|
|
24,330
|
|
|
517
|
|
||||||
Total consolidated
|
|
$72.2
|
|
|
|
($7.7
|
)
|
|
|
$10.5
|
|
|
|
($3.3
|
)
|
|
|
$71.7
|
|
|
113,685
|
|
|
|
$631
|
|
|
Direct mining costs
|
|
|
By-product credits
|
|
|
Refining and selling costs
|
|
|
Other
(1)
|
|
|
Cash operating costs
|
|
|
Gold oz sold
|
|
|
Cash operating costs/oz sold
|
|
||||||
Kisladag
|
|
$37.6
|
|
|
|
($0.5
|
)
|
|
|
$0.2
|
|
|
|
($12.1
|
)
|
|
|
$25.1
|
|
|
53,327
|
|
|
|
$471
|
|
Efemcukuru
|
24.2
|
|
|
(1.2
|
)
|
|
8.0
|
|
|
1.6
|
|
|
32.6
|
|
|
54,639
|
|
|
598
|
|
||||||
Olympias
|
33.0
|
|
|
(20.0
|
)
|
|
5.5
|
|
|
9.8
|
|
|
28.3
|
|
|
24,463
|
|
|
1,156
|
|
||||||
Lamaque
(2)
|
16.2
|
|
|
(0.1
|
)
|
|
—
|
|
|
(3.5
|
)
|
|
12.6
|
|
|
24,330
|
|
|
517
|
|
||||||
Total consolidated
|
|
$111.0
|
|
|
|
($21.9
|
)
|
|
|
$13.7
|
|
|
|
($4.2
|
)
|
|
|
$98.6
|
|
|
156,759
|
|
|
|
$629
|
|
|
Direct mining costs
|
|
|
By-product credits
|
|
|
Refining and selling costs
|
|
|
Other
(1)
|
|
|
Cash operating costs
|
|
|
Gold oz sold
|
|
|
Cash operating costs/oz sold
|
|
||||||
Kisladag
|
|
$14.4
|
|
|
|
($0.4
|
)
|
|
|
$0.2
|
|
|
|
$22.7
|
|
|
|
$37.0
|
|
|
55,631
|
|
|
|
$664
|
|
Efemcukuru
|
11.4
|
|
|
(1.0
|
)
|
|
1.7
|
|
|
0.1
|
|
|
|
$12.3
|
|
|
23,853
|
|
|
|
$515
|
|
||||
Olympias
|
15.5
|
|
|
(13.5
|
)
|
|
2.8
|
|
|
1.3
|
|
|
|
$6.1
|
|
|
14,740
|
|
|
|
$412
|
|
||||
Total consolidated
|
|
$41.3
|
|
|
|
($14.8
|
)
|
|
|
$4.7
|
|
|
|
$24.1
|
|
|
|
$55.3
|
|
|
94,224
|
|
|
|
$587
|
|
|
|
18
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
|
Direct mining costs
|
|
|
By-product credits
|
|
|
Refining and selling costs
|
|
|
Other
(1)
|
|
|
Cash operating costs
|
|
|
Gold oz sold
|
|
|
Cash operating costs/oz sold
|
|
||||||
Kisladag
|
|
$41.8
|
|
|
|
($0.7
|
)
|
|
|
$0.4
|
|
|
|
$26.5
|
|
|
|
$68.0
|
|
|
109,470
|
|
|
|
$621
|
|
Efemcukuru
|
23.3
|
|
|
(1.8
|
)
|
|
3.4
|
|
|
1.8
|
|
|
|
$26.6
|
|
|
50,853
|
|
|
|
$524
|
|
||||
Olympias
|
30.0
|
|
|
(19.1
|
)
|
|
4.2
|
|
|
(5.0
|
)
|
|
|
$10.1
|
|
|
20,488
|
|
|
|
$493
|
|
||||
Total consolidated
|
|
$95.0
|
|
|
|
($21.6
|
)
|
|
|
$8.0
|
|
|
|
$23.3
|
|
|
|
$104.7
|
|
|
180,811
|
|
|
|
$579
|
|
|
Q2 2019
|
|
Q2 2018
|
|
YTD 2019
|
|
YTD 2018
|
|
||||
Cash operating costs
|
|
$71.7
|
|
|
$55.3
|
|
|
$98.6
|
|
|
$104.7
|
|
Royalties and production taxes
|
4.4
|
|
2.2
|
|
5.7
|
|
4.5
|
|
||||
Total cash costs
|
|
$76.1
|
|
|
$57.5
|
|
|
$104.3
|
|
|
$109.2
|
|
Gold ounces sold
|
113,685
|
|
94,224
|
|
156,759
|
|
180,811
|
|
||||
Total cash costs per ounce sold
|
|
$670
|
|
|
$610
|
|
|
$665
|
|
|
$604
|
|
|
|
19
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
|
Q2 2019
(1)
|
|
Q2 2018
|
|
YTD 2019
(1)
|
|
YTD 2018
|
|
||||
Cash operating costs
|
|
$71.7
|
|
|
$55.3
|
|
|
$98.6
|
|
|
$104.7
|
|
Royalties and production taxes
|
4.4
|
|
2.2
|
|
5.7
|
|
4.5
|
|
||||
Corporate and allocated G&A
|
9.4
|
|
15.5
|
|
18.2
|
|
23.8
|
|
||||
Exploration and evaluation costs
|
1.9
|
|
0.4
|
|
2.4
|
|
0.6
|
|
||||
Reclamation costs and amortization
|
1.2
|
|
0.8
|
|
2.0
|
|
1.8
|
|
||||
Sustaining capital expenditure
|
15.6
|
|
13.8
|
|
26.4
|
|
24.9
|
|
||||
AISC
|
|
$104.2
|
|
|
$88.0
|
|
|
$153.2
|
|
|
$160.4
|
|
Gold ounces sold
|
113,685
|
|
94,224
|
|
156,759
|
|
180,811
|
|
||||
AISC per ounce sold
|
|
$917
|
|
|
$934
|
|
|
$977
|
|
|
$887
|
|
|
Cash operating costs
|
|
Royalties & production taxes
|
|
Corporate & allocated G&A
|
|
Exploration costs
|
|
Reclamation costs and amortization
|
|
Sustaining capital
|
|
Total
AISC
|
|
Gold oz sold
|
|
Total AISC/
oz sold
|
|
||||||||
Kisladag
|
|
$9.9
|
|
|
$0.6
|
|
|
$—
|
|
|
$—
|
|
|
$0.7
|
|
|
$1.1
|
|
|
$12.3
|
|
26,072
|
|
|
$471
|
|
Efemcukuru
|
28.9
|
|
2.3
|
|
0.1
|
|
0.9
|
|
0.2
|
|
5.4
|
|
37.8
|
|
48,821
|
|
774
|
|
||||||||
Olympias
|
20.3
|
|
0.7
|
|
—
|
|
—
|
|
0.3
|
|
3.8
|
|
25.0
|
|
14,462
|
|
1,731
|
|
||||||||
Lamaque
(1)
|
12.6
|
|
0.8
|
|
—
|
|
1.0
|
|
—
|
|
5.3
|
|
19.8
|
|
24,330
|
|
814
|
|
||||||||
Corporate
(2)
|
—
|
|
—
|
|
9.4
|
|
—
|
|
—
|
|
—
|
|
9.4
|
|
—
|
|
82
|
|
||||||||
Total consolidated
|
|
$71.7
|
|
|
$4.4
|
|
|
$9.4
|
|
|
$1.9
|
|
|
$1.2
|
|
|
$15.6
|
|
|
$104.2
|
|
113,685
|
|
|
$917
|
|
|
|
20
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
|
Cash operating costs
|
|
Royalties & production taxes
|
|
Corporate & allocated G&A
|
|
Exploration costs
|
|
Reclamation costs and amortization
|
|
Sustaining capital
|
|
Total
AISC
|
|
Gold oz sold
|
|
Total
AISC/
oz sold
|
|
||||||||
Kisladag
|
|
$25.1
|
|
|
$1.2
|
|
|
$0.1
|
|
|
$—
|
|
|
$0.9
|
|
|
$4.2
|
|
|
$31.5
|
|
53,327
|
|
|
$590
|
|
Efemcukuru
|
32.6
|
|
2.5
|
|
0.1
|
|
1.3
|
|
0.4
|
|
9.0
|
|
45.9
|
|
54,639
|
|
840
|
|
||||||||
Olympias
|
28.3
|
|
1.1
|
|
—
|
|
—
|
|
0.6
|
|
7.9
|
|
38.0
|
|
24,463
|
|
1,553
|
|
||||||||
Lamaque
(1)
|
12.6
|
|
0.8
|
|
—
|
|
1.0
|
|
—
|
|
5.3
|
|
19.8
|
|
24,330
|
|
814
|
|
||||||||
Corporate
(2)
|
—
|
|
—
|
|
18.1
|
|
—
|
|
—
|
|
—
|
|
18.1
|
|
—
|
|
115
|
|
||||||||
Total consolidated
|
|
$98.6
|
|
|
$5.7
|
|
|
$18.2
|
|
|
$2.4
|
|
|
$2.0
|
|
|
$26.4
|
|
|
$153.2
|
|
156,759
|
|
|
$977
|
|
|
Cash operating costs
|
|
Royalties & production taxes
|
|
Corporate & allocated G&A
|
|
Exploration costs
|
|
Reclamation costs and amortization
|
|
Sustaining capital
|
|
Total
AISC
|
|
Gold oz sold
|
|
Total
AISC/
oz sold
|
|
||||||||
Kisladag
|
|
$37.0
|
|
|
$1.1
|
|
|
$1.1
|
|
|
$—
|
|
|
$0.3
|
|
|
$5.5
|
|
|
$44.9
|
|
55,631
|
|
|
$808
|
|
Efemcukuru
|
12.3
|
|
0.5
|
|
0.8
|
|
0.2
|
|
0.2
|
|
5.8
|
|
19.8
|
|
23,853
|
|
832
|
|
||||||||
Olympias
|
6.1
|
|
0.6
|
|
0.9
|
|
0.2
|
|
0.3
|
|
2.5
|
|
10.6
|
|
14,740
|
|
715
|
|
||||||||
Corporate
(1)
|
—
|
|
—
|
|
12.7
|
|
—
|
|
—
|
|
—
|
|
12.7
|
|
—
|
|
134
|
|
||||||||
Total consolidated
|
|
$55.3
|
|
|
$2.2
|
|
|
$15.5
|
|
|
$0.4
|
|
|
$0.8
|
|
|
$13.8
|
|
|
$88.0
|
|
94,224
|
|
|
$934
|
|
|
|
21
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
|
Cash operating costs
|
|
Royalties & production taxes
|
|
Corporate & allocated G&A
|
|
Exploration costs
|
|
Reclamation costs and amortization
|
|
Sustaining capital
|
|
Total
AISC
|
|
Gold oz sold
|
|
Total
AISC/
oz sold
|
|
||||||||
Kisladag
|
|
$68.0
|
|
|
$2.3
|
|
|
$1.9
|
|
|
$—
|
|
|
$0.9
|
|
|
$10.3
|
|
|
$83.4
|
|
109,470
|
|
|
$762
|
|
Efemcukuru
|
26.7
|
|
1.4
|
|
1.4
|
|
0.3
|
|
0.4
|
|
9.5
|
|
39.7
|
|
50,853
|
|
781
|
|
||||||||
Olympias
|
10.1
|
|
0.8
|
|
1.6
|
|
0.3
|
|
0.5
|
|
5.1
|
|
18.4
|
|
20,488
|
|
897
|
|
||||||||
Corporate
(1)
|
—
|
|
—
|
|
18.9
|
|
—
|
|
—
|
|
—
|
|
18.9
|
|
—
|
|
105
|
|
||||||||
Total consolidated
|
|
$104.7
|
|
|
$4.5
|
|
|
$23.8
|
|
|
$0.6
|
|
|
$1.8
|
|
|
$24.9
|
|
|
$160.4
|
|
180,811
|
|
|
$887
|
|
|
Q2 2019
|
|
Q2 2018
|
|
YTD 2019
|
|
YTD 2018
|
|
||||
General and administrative expenses
(from consolidated statement of operations)
|
|
$8.1
|
|
|
$14.0
|
|
|
$15.3
|
|
|
$22.2
|
|
Add:
|
|
|
|
|
||||||||
Share based payments
|
2.5
|
|
2.8
|
|
5.4
|
|
4.2
|
|
||||
Defined benefit pension plan expense from corporate and
operating gold mines
|
0.5
|
|
1.0
|
|
1.1
|
|
2.1
|
|
||||
Less:
|
|
|
|
|
||||||||
General and administrative expenses related to non-gold mines
|
(0.3
|
)
|
(4.3
|
)
|
(0.9
|
)
|
(7.8
|
)
|
||||
Business development
|
(0.5
|
)
|
(0.4
|
)
|
(1.0
|
)
|
(0.7
|
)
|
||||
Development projects
|
(0.9
|
)
|
(0.5
|
)
|
(1.8
|
)
|
(1.1
|
)
|
||||
Corporate and allocated general and administrative expenses
|
|
$9.4
|
|
|
$12.6
|
|
|
$18.1
|
|
|
$18.9
|
|
|
|
22
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
|
Q2 2019
|
|
Q2 2018
|
|
YTD 2019
|
|
YTD 2018
|
|
||||
Gold revenue
|
|
$150.1
|
|
|
$121.3
|
|
|
$203.9
|
|
|
$236.8
|
|
Gold oz sold
|
113,685
|
|
94,224
|
|
156,759
|
|
180,811
|
|
||||
Average realized price per ounce sold
|
|
$1,321
|
|
|
$1,287
|
|
|
$1,301
|
|
|
$1,310
|
|
|
Q2 2019
|
|
Q2 2018
|
|
YTD 2019
|
|
YTD 2018
|
|
||||
Net earnings (loss) attributable to shareholders of the Company
|
|
$12.2
|
|
|
($24.4
|
)
|
|
($14.8
|
)
|
|
($15.7
|
)
|
Loss (gain) on disposal of assets
|
(7.4
|
)
|
—
|
|
(7.4
|
)
|
(0.1
|
)
|
||||
Loss (gain) on available-for-sale securities
|
—
|
|
—
|
|
—
|
|
0.2
|
|
||||
Loss (gain) on foreign exchange translation of deferred tax balances
|
(0.4
|
)
|
19.1
|
|
5.5
|
|
21.5
|
|
||||
Other write-down of assets, net of tax
|
—
|
|
3.5
|
|
—
|
|
6.5
|
|
||||
Write-down of inventory
|
1.6
|
|
—
|
|
4.6
|
|
—
|
|
||||
Severance
|
1.1
|
|
—
|
|
1.1
|
|
—
|
|
||||
Transaction costs
(1)
|
3.6
|
|
—
|
|
3.6
|
|
—
|
|
||||
Impairment reversal
|
(11.7
|
)
|
—
|
|
(11.7
|
)
|
—
|
|
||||
Total adjusted net earnings (loss)
|
|
($1.2
|
)
|
|
($1.8
|
)
|
|
($19.2
|
)
|
|
$12.4
|
|
Weighted average shares outstanding
|
158,372
|
|
158,552
|
|
158,345
|
|
158,506
|
|
||||
Adjusted net earnings (loss) per share ($/share)
|
|
($0.01
|
)
|
|
($0.01
|
)
|
|
($0.12
|
)
|
|
$0.08
|
|
|
|
23
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
|
Q2 2019
|
|
Q2 2018
|
|
YTD 2019
|
|
YTD 2018
|
|
||||
Earnings (loss) before income tax
|
|
$17.2
|
|
|
($2.5
|
)
|
|
($4.1
|
)
|
|
$10.2
|
|
Depreciation, depletion and amortization
(1)
|
41.5
|
|
34.5
|
|
61.6
|
|
63.7
|
|
||||
Interest income
|
(1.0
|
)
|
(2.0
|
)
|
(2.2
|
)
|
(3.4
|
)
|
||||
Finance costs
|
16.8
|
|
3.2
|
|
24.1
|
|
7.3
|
|
||||
EBITDA
|
|
$74.5
|
|
|
$33.2
|
|
|
$79.4
|
|
|
$77.7
|
|
Share-based payments
|
2.5
|
|
2.8
|
|
5.4
|
|
4.2
|
|
||||
(Gain) loss on disposal of assets
|
(7.1
|
)
|
—
|
|
(7.1
|
)
|
(0.1
|
)
|
||||
Severance costs
|
1.1
|
|
1.3
|
|
1.1
|
|
1.3
|
|
||||
Proceeds on pre-commercial production sales, net
|
7.6
|
|
0.3
|
|
12.2
|
|
5.2
|
|
||||
Reversal of impairment
|
(11.7
|
)
|
—
|
|
(11.7
|
)
|
—
|
|
||||
Adjusted EBITDA
|
|
$66.8
|
|
|
$37.6
|
|
|
$79.3
|
|
|
$88.3
|
|
|
As at June 30, 2019
|
|
|
As at December 31, 2018
|
|
||
Current assets
|
|
$338.7
|
|
|
|
$514.7
|
|
Current liabilities
|
156.0
|
|
|
141.7
|
|
||
Working capital
|
|
$182.7
|
|
|
|
$373.0
|
|
|
|
24
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
||||||||
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
||||||||
Total revenue
|
|
$173.7
|
|
|
$80.0
|
|
|
$92.8
|
|
|
$81.1
|
|
|
$153.2
|
|
|
$131.9
|
|
|
$101.4
|
|
|
$95.4
|
|
Impairment charges (reversals), net of tax
|
(11.7
|
)
|
—
|
|
234.4
|
|
94.1
|
|
—
|
|
—
|
|
37.5
|
|
—
|
|
||||||||
Net earnings/(loss)
(1)
|
|
$12.2
|
|
|
($27.0
|
)
|
|
($218.2
|
)
|
|
($128.0
|
)
|
|
($24.4
|
)
|
|
$8.7
|
|
|
($20.7
|
)
|
|
($4.2
|
)
|
Net earnings (loss) per share
(1)
|
|
|
|
|
|
|
|
|
||||||||||||||||
- basic
|
0.08
|
|
(0.17
|
)
|
(1.38
|
)
|
(0.81
|
)
|
(0.15
|
)
|
0.05
|
|
(0.15
|
)
|
(0.03
|
)
|
||||||||
- diluted
|
0.08
|
|
(0.17
|
)
|
(1.38
|
)
|
(0.81
|
)
|
(0.15
|
)
|
0.05
|
|
(0.15
|
)
|
(0.03
|
)
|
|
|
25
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
•
|
a $200 million non-revolving term loan repayable in
six equal semi-annual payments commencing June 30, 2020
(the "term loan"); and
|
•
|
a $250 million revolving credit facility with
a maturity date of June 5, 2024
.
|
i)
|
At any time prior to December 1, 2021 at a redemption price equal to 100% of the aggregate principal amount of the senior secured notes, accrued and unpaid interest and a premium at the greater of 1% of the principal value of the notes to be redeemed, or the present value of remaining interest to December 1, 2021 discounted at the treasury yield plus 50 basis points.
|
ii)
|
On and after the dates provided below, at the redemption prices, expressed as a percentage of principal amount of the notes to be redeemed, set forth below, plus accrued and unpaid interest on the senior secured notes:
|
|
|
26
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
|
||
Cash, cash equivalents and term deposits
|
|
$119.9
|
|
|
$293.0
|
|
Working capital
|
182.7
|
|
373.0
|
|
||
Restricted collateralized accounts
|
0.3
|
|
0.3
|
|
||
Debt – long-term
|
|
$449.1
|
|
|
$596.0
|
|
|
|
27
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
Common Shares Outstanding
(1)
|
|
|
- as of June 30, 2019
|
158,805,581
|
|
- as of July 31, 2019
|
158,805,581
|
|
Share purchase options - as of July 30, 2019
(Weighted average exercise price per share: Cdn$14.38)
|
6,058,277
|
|
|
|
28
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
•
|
Following the refinancing of the Company's debt in June 2019, management believes that the working capital at
June 30, 2019
, together with expected cash flows from operations and access to the undrawn credit facility, if required, is sufficient to support the Company's planned and foreseeable commitments for the next twelve months. However, if planning and budgeting is materially different to that forecasted, or financing, if required, is not available to the Company on terms satisfactory to meet these material changes to planning or budgeting, then this may adversely affect the ability of the Company to meet its financial obligations and operational and development plans.
|
•
|
The Company invests its cash and cash equivalents in major financial institutions and in government issuances, according to the Company's short-term investment policy. As at
June 30, 2019
, the Company holds a significant amount of cash and cash equivalents with various financial institutions in North America, the United Kingdom and Turkey. The Company monitors the credit ratings of all financial institutions in which it holds cash and investments. In recent months, Turkey's sovereign credit ratings have been downgraded, followed by the downgrade of the credit ratings of numerous Turkish banking institutions, including one at which the Company holds cash. As at June 30, 2019, the Company holds approximately 13% of its cash in financial institutions in Turkey. The credit risk associated with financial institutions in other jurisdictions continues to be considered as low. There can be no assurance that certain financial institutions in foreign countries in which the Company operates will not default on their commitments.
|
•
|
The Company sells gold in U.S. dollars, but incurs costs mainly in U.S. dollars, Canadian dollars, Turkish Lira, Brazilian Real, Euros, and Romanian Lei. Any change in the value of any of these currencies against the U.S. dollar can impact production costs and capital expenditures, which can affect future cash flow, business, results of operations, financial condition and the Eldorado Gold share price and lead to higher operation, construction, development and other costs than anticipated. As of
June 30, 2019
, approximately 72% of cash and cash equivalents is held in U.S. dollars. The amount of cash and cash equivalents held in Canadian dollars has increased in 2019 to support operations at Lamaque following the commencement of commercial production in April 2019. The Company has a risk management policy that contemplates potential hedging of its foreign exchange exposure to reduce the risk associated with currency fluctuations. The Company currently does not have any currency hedges, but may hedge in the future. There is no assurance that any hedges that may be put in place will mitigate these risks or that they will not cause the Company to experience less favourable economic outcomes than it would have experienced if it had no hedges in place.
|
|
|
29
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
•
|
Interest rates determine how much interest the Company pays on its debt, and how much is earned on cash and cash equivalent balances, which can affect future cash flows. Subsequent to refinancing the Company's debt in June 2019, outstanding debt is in the form of senior notes with a fixed interest rate of 9.5% and a term loan with a variable rate based on LIBOR. Borrowings under the Company’s senior credit facility, if drawn, are also at variable rates of interest. Borrowings at variable rates of interest expose the Company to interest rate cost and interest rate risk. The Company currently does not have any interest rate swaps (that involve the exchange of floating for fixed rate interest payments in order to reduce interest rate volatility), but may enter into such swaps in the future. There is no assurance that any interest rate swaps that may be put in place will mitigate these risks or that they will not cause the Company to experience less favourable economic outcomes than would have been experienced if the Company had no such swaps in place.
|
|
|
30
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
•
|
Applied the exemption not to recognize right-of-use assets and liabilities for leases with low value.
|
•
|
Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term remaining.
|
•
|
Applied a single discount rate to a portfolio of leases with reasonably similar characteristics (such as leases with a similar remaining lease term for a similar class of underlying asset in a similar economic environment).
|
•
|
Excluded initial direct costs from measuring the right-of-use asset at the date of initial application.
|
•
|
Used hindsight, such as in determining the lease term if the contract contains options to extend or terminate the lease.
|
|
December 31, 2018
|
|
|
IFRS 16 Adjustment
|
|
|
January 1, 2019
|
|
|||
|
|
|
|
|
|
||||||
Lease assets presented in property, plant and equipment
|
$
|
11.3
|
|
|
$
|
9.4
|
|
|
$
|
20.7
|
|
Lease liabilities – current
|
3.0
|
|
|
2.7
|
|
|
5.5
|
|
|||
Lease liabilities – non-current
|
6.5
|
|
|
6.2
|
|
|
12.7
|
|
|||
Accounts receivable and other
|
81.0
|
|
|
(0.6
|
)
|
|
80.4
|
|
|
January 1, 2019
|
|
|
|
|
||
Operating lease commitments at December 31, 2018
|
$
|
64.7
|
|
Exclusion of arrangements to explore for or use minerals
|
(53.2
|
)
|
|
Leases with low value at January 1, 2019
|
(1.7
|
)
|
|
Leases with less than 12 months of remaining lease term at January 1, 2019
|
(0.9
|
)
|
|
Arrangements reassessed as leases
|
3.1
|
|
|
Effect of discounting using the incremental borrowing rate at January 1, 2019
|
(3.2
|
)
|
|
Lease liabilities recognized as IFRS 16 adjustment at January 1, 2019
|
$
|
8.8
|
|
|
|
31
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
b)
|
IFRIC 23
'Uncertainty over Income Tax Treatments'
|
|
|
32
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
|
|
33
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
|
|
34
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
|
|
35
|
MANAGEMENT’S DISCUSSION and ANALYSIS
For the three and six months ended June 30, 2019 and 2018
|
|
|
George Albino
2, 3
|
Chair 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
|
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 and Chief Strategy Officer
|
Tim Garvin
|
Executive VP and General Counsel
|
Shane Williams
|
Senior VP Capital Projects and Greece & Quebec Operations
|
Christos Balaskas
|
VP and General Manager, Greece
|
David Bickford
|
VP and General Manager, Turkey
|
Nicolae Stanca
|
VP and General Manager, Romania
|
Lincoln Silva
|
VP and General Manager, Brazil
|
Cara Allaway
|
VP Finance
|
Peter Lewis
|
VP Exploration
|
Andor Lips
|
VP European Strategy & Corporate Sustainability
|
Lisa Ower
|
VP Human Resources
|
|
|
36
|
1.
|
Review:
I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Eldorado Gold Corporation (the “issuer”) for the interim period ended
June 30, 2019
.
|
2.
|
No misrepresentations:
Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
|
3.
|
Fair presentation:
Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
|
4.
|
Responsibility:
The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109
Certification of Disclosure in Issuers’ Annual and Interim Filings,
for the issuer.
|
5.
|
Design:
Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings
|
(a)
|
designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
|
(i)
|
material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
|
(ii)
|
information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
|
(b)
|
designed ICFR, or caused it 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 the issuer’s GAAP.
|
5.1
|
Control framework:
The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013) (COSO).
|
5.2
|
ICFR - material weakness relating to design:
The issuer has disclosed in its interim MD&A for each material weakness relating to design existing at the end of the interim period
|
(a)
|
a description of the material weakness;
|
(b)
|
the impact of the material weakness on the issuer’s financial reporting and its ICFR; and
|
(c)
|
the issuer’s current plans, if any, or any actions already undertaken, for remediating the material weakness.
|
5.3
|
Limitation on scope of design:
N/A
|
6.
|
Reporting changes in ICFR:
The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2019
and ended on
June 30, 2019
that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
|
1.
|
Review:
I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Eldorado Gold Corporation (the “issuer”) for the interim period ended
June 30, 2019
.
|
2.
|
No misrepresentations:
Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
|
3.
|
Fair presentation:
Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
|
4.
|
Responsibility:
The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109
Certification of Disclosure in Issuers’ Annual and Interim Filings,
for the issuer.
|
5.
|
Design:
Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings
|
(a)
|
designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
|
(i)
|
material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
|
(ii)
|
information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
|
(b)
|
designed ICFR, or caused it 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 the issuer’s GAAP.
|
5.1
|
Control framework:
The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013) (COSO).
|
5.2
|
ICFR - material weakness relating to design:
The issuer has disclosed in its interim MD&A for each material weakness relating to design existing at the end of the interim period
|
(a)
|
a description of the material weakness;
|
(b)
|
the impact of the material weakness on the issuer’s financial reporting and its ICFR; and
|
(c)
|
the issuer’s current plans, if any, or any actions already undertaken, for remediating the material weakness.
|
5.3
|
Limitation on scope of design:
N/A
|
6.
|
Reporting changes in ICFR:
The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2019
and ended on
June 30, 2019
that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
|