EX-99.1 2 newsrelease1029.htm NEWS RELEASE CC Filed by Filing Services Canada Inc. 403-717-3898

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NEWS RELEASE                                                                                                   

ELD No. 09-26

TSX: ELD   NYSE: EGO                                                                         

October 29, 2009


Q3, 2009 Financial and Operating Results

2009 Production Guidance Remains Intact

Earnings of $0.08 per share; Cash Operating Cost of $297/oz.

(all figures in United States dollars, unless otherwise noted)


VANCOUVER, BC – Paul N. Wright, President and Chief Executive Officer of Eldorado Gold Corporation, (“Eldorado” the “Company” or “we”) is pleased to report on the Company's financial and operational results for the third quarter ended September 30, 2009.   The Company reported net income of $30.2 million, or $0.08 per share, and cash flow from operations of $27.6 million or $0.07 per share for the third quarter ended September 30, 2009.


“This quarter, we took a major step forward in establishing Eldorado as the world’s premier intermediate global gold producer,” stated Paul N. Wright, President and Chief Executive Officer of Eldorado. “If accepted by Sino Gold’s shareholders, our proposal to acquire all of Sino Gold’s issued and outstanding shares will establish us as the leading international gold producer in China and reinforce our position as one the world’s lowest cost and highest growth global gold producers.”


Q3 2009 Highlights and Updates

?

Produced 88,918 ounces of gold at our Tanjianshan and Kisladag mines at an average cash operating cost of $297 per ounce;

?

Sold 85,246 ounces of gold at a realized average price of $957 per ounce;

?

Reported earnings of $0.08 per share;

?

Announced drilling results at Kisladag that extend ore grade gold mineralization at depth and increase measured and indicated resources to 10.4 million ounces;

?

Announced an agreement with Sino Gold Mining Limited (“Sino Gold”) to purchase all of Sino Gold’s issued and outstanding shares – a transaction that values Sino Gold at approximately CDN$2.0 billion;

?

Listed on the New York Stock Exchange (EGO) October 22, 2009.


Financial Results

Eldorado’s consolidated net income for the third quarter of 2009 was $30.2 million or $0.08 per share, compared with $17.0 million or $0.05 per share in the third quarter of 2008. Net income for the nine-month period ended September 30, 2009 was $69.1 million or $0.18 per share, compared to $62.9 million or $0.18 per share in the comparable period from 2008.


Over the quarter, we sold 85,246 ounces of gold at an average price of $957 per ounce, compared to 74,740 ounces at an average price of $870 per ounce in the third quarter of 2008.


Corporate Activities

Agreement to acquire Sino Gold shares

On July 27, 2009, we acquired 58.0 million shares of Sino Gold in a private transaction with Gold Fields in exchange for 27.8 million Eldorado shares. On August 26, 2009, we entered into an agreement to acquire all of the issued and outstanding shares of Sino Gold that we do not currently own. Under the terms of the agreement, Sino Gold shareholders will be offered 0.55 Eldorado shares for each Sino Gold share. The transaction values Sino Gold at approximately CDN $2.0 billion.




Operating Performance

Kisladag

During the quarter we produced 57,902 ounces of gold at a cash cost of $276 per ounce.  We placed 2,523,546 tonnes of ore on the leach pad at an average grade of 1.22 grams per tonne of gold.


The mine performed well during the quarter at rates consistently above budget targets.  Gold production was also above budget and we maintain our 2009 guidance of 230,000 – 240,000 ounces.


Tanjianshan
At Tanjianshan we produced 31,016 ounces of gold at a cash cost of $338 per ounce, up from 21,587 ounces in the second quarter.  The increase in gold production was directly related to the improved operating performance of the roaster as several design improvements were implemented.  We maintain our 2009 guidance of 95,000 – 100,000 ounces.


Development
Efemcukuru

The drilling program in the North Ore Shoot has been completed which will allow the drills to begin testing other targets on the property.  During the quarter major earthworks, including the plant site retaining wall, were completed and the focus has now shifted to pouring concrete foundations at the plant site and completion of the water treatment plant.  Spending in the quarter totalled $8.7 million.


Vila Nova Iron Ore

We acquired the remaining 25% interest in our Vila Nova Iron Ore Project. With strengthening demand and prices for iron ore, we are reviewing our options for the project, which include beginning production or selling the asset.


Perama Hill

The Preliminary Environmental Impact Assessment (“PEIA”) for the Perama Project was prepared during the quarter and has been submitted to the Greek authorities.  The PEIA incorporated changes in the site layout of the facilities and a switch to a de-watered tailings storage facility.


Tocantinzinho

At our Tocantinzinho project in Brazil, we completed the diamond drilling program during the quarter. Our focus will now shift to interpreting the drill results and starting exploration activities in the adjacent land package. In total, we spent $2.7 million at Tocantinzinho during the quarter.


Exploration
Turkey
During the quarter we completed the planned drilling program at Sayacik, the volcanic center adjacent to the Kisladag mine.  At our new MH project we conducted regional mapping and soil and rock sampling, outlining a broad gold anomaly that will be the target of follow-up work in 2010.


At Efemcukuru we finished drilling the North Ore Shoot and have moved the drill to test the Kokarpinar structure, which is a parallel structure to the main vein approximately 500 meters to the northeast.  At Kisladag we finished the planned drilling program, which was successful in extending the ore grade mineralization at depth to the south and east below the current pit limits.  New target areas generated by this program will be tested in early 2010.


China
At Tanjianshan, we discovered a new zone of high-grade gold mineralization south of the Qinlongtan deposit.  Initial results indicate a zone of mineralization showing geometric and lithologic similarities to the Qinlongtan deposit.  Four drill rigs are currently drilling this structure along strike and down dip.




United States (Nevada) AuEx JV

We completed fieldwork with our AuEx Joint Venture that included mapping, sampling and soil sampling to define potential drill targets at Buffalo Canyon and Green Monster, and we intend to drill at both locations in 2010. Through our Bronco Creek Joint Venture, we conducted bulk leach extractable gold sampling at Cathedral Well that outlined an area of anomalous gold values, and additional claims were staked accordingly. Permitting is ongoing at Cathedral Well to support a drilling program in 2010. At Richmond Mountain, we are preparing to drill test a target beneath the pediment cover and are planning a minimum of three RC drill holes in late 2010.


Eldorado is a gold producing, exploration and development company actively growing businesses in Brazil China, Greece, and Turkey and surrounding regions.  We are one of the lowest cost pure gold producers. With our international expertise in mining, finance and project development, together with highly skilled and dedicated staff, we believe that Eldorado is well positioned to grow in value as we create and pursue new opportunities.


ON BEHALF OF

ELDORADO GOLD CORPORATION



“Paul N. Wright”


Paul N. Wright

President and Chief Executive Officer


Eldorado will host a conference call Friday October 30, 2009 to discuss the 2009 Third Quarter Financial and Operating Results at 11:30 a.m. ET (8:30 a.m. PT).  You may participate in the conference call by dialling 416-695-6622 in Toronto or 1-800-355-4959 toll free in North America and asking for the Eldorado Conference Call with Chairperson: Paul Wright, President and CEO of Eldorado Gold.  The call will be available on Eldorado’s website www.eldoradogold.com.   A replay of the call will be available until November 6, 2009 by dialling 416-695-5800 in Toronto or 1-800-408-3053 toll free in North America and entering the Pass code 3086410.


Cautionary Notes:  

Cautionary Note Regarding Forward-Looking Statements

Certain of the statements made herein may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws.  Such forward-looking statements or information include, but are not limited to statements or information with respect to the Transaction and the impact of the implementation of the Transaction on Eldorado, its operations, financial position and gold production.  

Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.  We have made certain assumptions about the forward-looking statements and information, including assumptions about the price of gold, anticipated costs and expenditures and the ability to achieve our goals.  Although our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statements or information will prove to be accurate.  Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information.  These risks, uncertainties and other factors include, among others, the following: the completion of the Transaction being subject to the satisfaction of certain conditions, including obtaining Sino Gold shareholder approval, court approval, and other regulatory approvals; the number of shares issued is subject to certain adjustments, including conversions of options and warrants; gold price volatility; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; mining operational and development risk; litigation risks; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment and operating in foreign countries; currency fluctuations; speculative nature of gold exploration; global economic climate; dilution; share price volatility; competition; ability to complete acquisitions; loss of key employees; additional funding requirements; and defective title to mineral claims or property, as well as those factors discussed in the sections entitled “Forward-Looking Statements” and "Risk Factors" in the Company's Annual Information Form & Form 40-F dated March 31, 2009.  

There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.  Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein.  Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada and the U.S.

Cautionary Note about Production Forecasts and Estimates

Readers are cautioned that the production forecasts are subject to a variety of factors that are likely to cause actual results to vary from the Company’s estimates, and such variations may be material.  Forward-looking information generally involves risks and uncertainties as described above which are, in many instances beyond Eldorado’s control, including: (i) global economic conditions; (ii) pricing and cost factors; (iii) unanticipated events or changes in current development plans, execution of development plans, future operating results, financial conditions or business over time; and (vi) unfavourable regulatory developments, that could cause actual events and results to vary significantly from those included in or contemplated by such statements.  The



production forecast reflects certain assumptions by the Company and Sino Gold, which assumptions may differ with respect to future events, economic, competitive and regulatory conditions, financial market conditions and future business decisions, including, without limitation, a continuation of existing business operations on substantially the same basis as currently exists all of which assumptions are difficult to predict and many of which are beyond the Company and Sino Gold’s control.  Accordingly, there can be no assurance that the forecast is indicative of the Company’s future performance or that actual results would not differ materially from those in the forecast.

Cautionary Note Regarding Mineral Reserves and Mineral Resources

The terms “Mineral Reserve”, “Proven Mineral Reserve” and “Probable Mineral Reserve” used in this document are Canadian mining terms as defined in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council on August 20, 2000 as may be amended from time to time by the CIM.  There can be no assurance that those portions of such mineral resources that are not mineral reserves will ultimately be converted into mineral reserves.  Mineral resources which are not mineral reserves do not have demonstrated economic viability.

For a detailed discussion of resource and reserve estimates and related matters see the Company’s reports, including the Annual Information Form and Form 40-F dated March 31, 2009 and technical reports filed under the Company’s name at www.sedar.com.

Eldorado’s disclosure of mineral reserve and mineral resource information is governed by NI 43-101.  Sino Gold’s disclosure of mineral reserve and mineral resource information is based on the reporting requirements of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2004 Edition (“JORC Code”).  CIM definitions of the terms “Mineral Reserve”, “Proven Mineral Reserve” and “Probable Mineral Reserve” are substantially similar to the JORC Code corresponding definitions of the terms “ore reserve,” proved ore reserve”, “probable ore reserve”, “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource”, respectively.

Estimates of mineral resources and mineral reserves prepared in accordance with the JORC Code would not be materially different if prepared in accordance with the CIM definitions applicable under NI 43-101.  

The information on Sino Gold’s reserve and resources has been provided by Sino Gold.  For further information, see Sino Gold’s public disclosure, which disclosure does not form part of this release.

Cautionary Note to US Investors Concerning Estimates of Measured, Indicated and Inferred Resources

Note to U.S. Investors.  The terms “Mineral Resource”, “Measured Mineral Resource”, “Indicated Mineral Resource”, “Inferred Mineral Resource” used in this release are Canadian mining terms as defined in accordance with NI 43-101 under the guidelines set out in the CIM Standards. These definitions differ from the definitions in the United States Securities & Exchange Commission (“SEC”) Guide 7.  In the United States, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or produced at the time the mineral reserve determination is made.

While the terms “mineral resource”, “measured mineral resource,” “indicated mineral resource”, and “inferred mineral resource” are recognized and required by Canadian regulations, they are not defined terms under standards in the United States and normally are not permitted to be used in reports and registration statements filed with the SEC.  As such, information contained in this release concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by U.S companies in SEC filings.  With respect to “indicated mineral resource” and “inferred mineral resource” there is a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility.  It can not be assumed that all or any part of an “indicated mineral resource” or “inferred mineral resource” will ever be upgraded to a higher category.  Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.

Certain mineral resource and reserve numbers pertaining to Sino Gold have been prepared in accordance with the JORC Code. While the terms "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are required pursuant to the JORC Code, the SEC does not recognize such terms.  JORC standards differ significantly from the requirements of the SEC, and mineral resource information prepared in accordance with the JORC Code is not comparable to similar information regarding mineral reserves disclosed in accordance with the requirements of the SEC.


Eldorado Gold Corporation’s common shares trade on the Toronto Stock Exchange (TSX: ELD) and the NYSE (NYSE: EGO).


Contact:

Nancy Woo, VP Investor Relations

Eldorado Gold Corporation

 

Phone: 604.601-6650 or 1.888.353.8166

           

1188, 550 Burrard Street

Fax: 604.687.4026

 

                       

Vancouver, BC V6C 2B5

Email: nancyw@eldoradogold.com

Website www.eldoradogold.com

Request for information packages:laurelw@eldoradogold.com



                                             



PRODUCTION HIGHLIGHTS




 

First

Quarter

2009

Second

Quarter

2009

Third

Quarter

2009

Third

Quarter

2008

First

Nine Months

2009

First

Nine Months

2008


Gold Production

 

 

 

 

 

 

  Ounces Produced

61,426

84,572

88,918

72,343

234,916

226,957

  Cash Operating Cost ($/oz)1, 4

296

300

297

283

298

242

  Total Cash Cost ($/oz)2,4

315

322

326

313

321

279

  Total Production Cost ($/oz)3,4

375

387

430

402

400

357

  Realized Price ($/oz - sold)

909

927

957

870

934

902


Kisladag Mine, Turkey

 

 

 

 

 

 

  Ounces Produced

46,192

62,985

57,902

46,863

167,079

129,581

  Tonnes to Pad

2,084,714

2,428,611

2,523,546

2,562,343

7,036,871

5,184,780

  Grade (grams / tonne)

1.34

1.18

1.22

1.05

1.24

1.24

  Cash Operating Cost ($/oz)4

274

269

276

270

273

242

  Total Cash Cost ($/oz)2,4

276

271

278

273

275

244

  Total Production Cost ($/oz)3,4

315

309

336

310

320

281


Tanjianshan Mine, China5

 

 

 

 

 

 

  Ounces Produced

15,234

21,587

31,016

25,480

67,837

97,376

  Tonnes Milled

228,066

231,874

257,730

226,126

717,670

642,556

  Grade (grams / tonne)

3.97

5.63

5.73

4.16

5.14

5.65

  Cash Operating Cost ($/oz)4

362

390

338

306

360

242

  Total Cash Cost ($/oz)2,4

432

470

414

387

436

325

  Total Production Cost ($/oz)3,4

557

616

604

571

597

459


1

Cost figures calculated in accordance with the Gold Institute Standard.

2

Cash Operating Costs, plus royalties and the cost of off-site administration.

3

Total Cash Costs, plus foreign exchange gain or loss, depreciation, amortization and reclamation expenses.

4

Cash operating, total cash and total production costs are non-GAAP measures.  See the section "Non-GAAP Measures" of this MD&A.



 



Eldorado Gold Corporation

Unaudited Consolidated Balance Sheets


(Expressed in thousands of U.S. dollars)



 

 

September 30,

 

December 31,

2009

2008

$

$

Assets

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

  149,551 

 

  61,851 

Marketable securities

 

  10,854 

 

  43,610 

Accounts receivable and other

 

  20,567 

 

  36,109 

Inventories

 

  117,477 

 

  86,966 

Future income taxes

 

  634 

 

  175 

 

 

  299,083 

 

  228,711 

Investment in Sino Gold (note 8)

 

  345,415 

 

  - 

Restricted assets and other

 

  9,879 

 

  8,349 

Mining interests

 

  703,700 

 

  668,309 

 

 

  1,358,077 

 

  905,369 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable and accrued liabilities

 

  50,898 

 

  42,659 

Debt (note 5)

 

  147 

 

  139 

Future income taxes

 

  2,346 

 

  1,097 

 

 

  53,391 

 

  43,895 

Asset retirement obligations

 

  5,025 

 

  4,812 

Future income taxes

 

  63,240 

 

  60,043 

 

 

  121,656 

 

  108,750 

 

 

 

 

 

Non-controlling interest

 

  6,043 

 

  4,799 

 

 

 

 

 

Shareholders* Equity

 

 

 

 

 

 

 

 

 

Share capital (note 6(a))

 

  1,221,951 

 

  931,933 

Contributed surplus (note 6(b))

 

  18,731 

 

  19,378 

Accumulated other comprehensive income (loss) (note 6(c))

 

  74,101 

 

  (5,971)

Deficit

 

  (84,405)

 

  (153,520)

 

 

  1,230,378 

 

  791,820 

 

 

  1,358,077 

 

  905,369 

 

 

 

 

 

Commitment (note 8)

 

 

 

 

 

 

 

 

 


Approved on behalf of the Board of Directors



                (Signed) Robert Gilmore          Director               (Signed) Paul N. Wright              Director 



See accompanying notes to consolidated financial statements.


Eldorado Gold Corporation

Unaudited Consolidated Statements of Operations and Deficit

For the periods ended September 30,


(Expressed in thousands of U.S. dollars except per share amounts)



 

 

Three months ended

 

Nine months ended

 

 

2009

 

2008

 

2009

 

2008

$

$

$

$

Revenue

 

 

 

 

 

 

 

 

Gold sales

 

  81,608 

 

  65,013 

 

  213,961 

 

  213,747 

Interest and other income

 

  996 

 

  3,225 

 

  1,583 

 

  9,336 

 

 

  82,604 

 

  68,238 

 

  215,544 

 

  223,083 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

Operating costs

 

  28,109 

 

  23,265 

 

  75,053 

 

  66,061 

Depletion, depreciation and amortization

 

  9,017 

 

  6,772 

 

  20,015 

 

  19,108 

General and administrative

 

  7,442 

 

  6,224 

 

  24,101 

 

  25,956 

Exploration

 

  3,182 

 

  7,443 

 

  8,618 

 

  12,306 

Mine standby costs

 

  881 

 

  - 

 

  1,817 

 

  2,432 

Asset retirement obligation costs

 

  65 

 

  2,609 

 

  196 

 

  2,875 

Foreign exchange (gain) loss

 

  (442)

 

  2,286 

 

  (1,569)

 

  1,453 

 

 

  48,254 

 

  48,599 

 

  128,231 

 

  130,191 

 

 

 

 

 

 

 

 

 

(Gain) loss on disposal of assets

 

  119 

 

  1,667 

 

  (1,344)

 

  1,667 

(Gain) loss on marketable securities and restricted asset

 

  (1,168)

 

  372 

 

  (1,287)

 

  146 

Interest and financing costs

 

  77 

 

  756 

 

  235 

 

  2,626 

Loss on derivative contract

 

  - 

 

  739 

 

  - 

 

  2,217 

 

 

  47,282 

 

  52,133 

 

  125,835 

 

  136,847 

Income before income taxes and non-controlling interest

 

  35,322 

 

  16,105 

 

  89,709 

 

  86,236 

 

 

 

 

 

 

 

 

 

Income tax (expense) recovery

 

 

 

 

 

 

 

 

Current

 

  (13,812)

 

  (8,076)

 

  (27,465)

 

  (22,155)

Future

 

  8,873 

 

  9,701 

 

  8,115 

 

  4,548 

 

 

  (4,939)

 

  1,625 

 

  (19,350)

 

  (17,607)

 

 

 

 

 

 

 

 

 

Non-controlling interest

 

  (229)

 

  (690)

 

  (1,244)

 

  (5,697)

 

 

 

 

 

 

 

 

 

Net income for the period

 

  30,154 

 

  17,040 

 

  69,115 

 

  62,932 

 

 

 

 

 

 

 

 

 

Deficit, beginning of period

 

  (114,559)

 

  (271,284)

 

  (153,520)

 

  (317,176)

 

 

 

 

 

 

 

 

 

Deficit, end of period

 

  (84,405)

 

  (254,244)

 

  (84,405)

 

  (254,244)

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding

 

 

 

 

 

 

 

 

Basic

 

  391,583 

 

  363,565 

 

  377,601 

 

  351,283 

Diluted

  392,328 

 

  365,297 

 

  378,821 

 

  352,771 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

Basic income per share - US$

 

  0.08 

 

  0.05 

 

  0.18 

 

  0.18 

Diluted income per share - US$

 

  0.08 

 

  0.05 

 

  0.18 

 

  0.18 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




See accompanying notes to the consolidated financial statements.


Eldorado Gold Corporation

Unaudited Consolidated Statements of Cash Flows

For the periods ended September 30,


(Expressed in thousands of U.S. dollars, unless otherwise stated)



 

 

Three months ended

 

Nine months ended

 

 

2009

 

2008

 

2009

 

2008

$

$

$

$

Cash flows generated from (used in):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

 

 

 

 

 

 

 

Net income for the period

 

  30,154 

 

  17,040 

 

  69,115 

 

  62,932 

Items not affecting cash

 

 

 

 

 

 

 

 

Asset retirement obligations costs

 

  65 

 

  2,609 

 

  196 

 

  2,875 

Depletion, depreciation and amortization

 

  9,017 

 

  6,772 

 

  20,015 

 

  19,108 

Unrealized foreign exchange (gain) loss

 

  2,050 

 

  - 

 

  1,624 

 

  418 

Future income taxes expense (recovery)

 

  (8,873)

 

  (9,701)

 

  (8,115)

 

  (4,548)

(Gain) loss on disposal of assets

 

  119 

 

  1,667 

 

  (1,344)

 

  1,667 

(Gain) loss on marketable securities and restricted asset

 

  (1,168)

 

  372 

 

  (1,287)

 

  146 

Imputed interest and financing costs

 

  - 

 

  11 

 

  - 

 

  30 

Stock-based compensation

 

  1,867 

 

  649 

 

  7,668 

 

  8,492 

Pension expense (note 4)

 

  442 

 

  - 

 

  1,245 

 

  - 

Non-controlling interest

 

  229 

 

  690 

 

  1,244 

 

  5,697 

Loss on derivative contract

 

  - 

 

  739 

 

  - 

 

  2,217 

 

 

  33,902 

 

  20,848 

 

  90,361 

 

  99,034 

   Bonus cash award units payments

 

  - 

 

  - 

 

  (2,543)

 

  - 

Property reclamation payments

 

  - 

 

  172 

 

  - 

 

  (1,225)

Contractual severance payments

 

  - 

 

  (544)

 

  - 

 

  (803)

Changes in non-cash working capital (note 9)

 

  (6,317)

 

  (18,773)

 

  2,341 

 

  (8,929)

 

 

  27,585 

 

  1,703 

 

  90,159 

 

  88,077 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

Mining interests

 

 

 

 

 

 

 

 

Acquisition of Frontier net of cash received

 

  - 

 

  7,479 

 

  - 

 

  7,479 

Capital expenditures

 

  (24,151)

 

  (39,923)

 

  (63,003)

 

  (79,689)

Sales and disposals

 

  - 

 

  5,689 

 

  35 

 

  6,129 

Marketable securities

 

 

 

 

 

 

 

 

Purchases

 

  (646)

 

  (21,220)

 

  (646)

 

  (23,663)

Proceeds on disposals

 

  5,766 

 

  - 

 

  42,154 

 

  263 

Pension plan contributions

 

  - 

 

  - 

 

  (1,856)

 

  - 

Restricted cash and other restricted assets

 

  4,893 

 

  25,000 

 

  1,888 

 

  30,710 

 

 

  (14,138)

 

  (22,975)

 

  (21,428)

 

  (58,771)

 

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

 

Capital stock

 

 

 

 

 

 

 

 

Issuance of common shares for cash

 

  5,366 

 

  1,463 

 

  18,969 

 

  6,726 

Long-term and bank debt

 

 

 

 

 

 

 

 

Proceeds

 

  - 

 

  - 

 

  4,982 

 

  5,000 

Repayments

 

  (4,982)

 

  (25,000)

 

  (4,982)

 

  (35,479)

 

 

  384 

 

  (23,537)

 

  18,969 

 

  (23,753)

Net increase (decrease) in cash and cash equivalents

 

  13,831 

 

  (44,809)

 

  87,700 

 

  5,553 

Cash and cash equivalents - beginning of period

 

  135,720 

 

  96,376 

 

  61,851 

 

  46,014 

Cash and cash equivalents - end of period

 

  149,551 

 

  51,567 

 

  149,551 

 

  51,567 

 

 

 

 

 

 

 

 

 

Supplementary cash flow information (note 7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



See accompanying notes to the consolidated financial statements.

Eldorado Gold Corporation

Notes to the Unaudited Interim Consolidated Financial Statements

September 30, 2009


(Expressed in thousands of U.S. dollars, unless otherwise stated)



1.

Nature of operations


Eldorado Gold Corporation (“Eldorado” or “the Company”) is a gold exploration, development, mining and production company. The Company has ongoing exploration and development projects in Brazil, China, Turkey and Greece. On July 1, 2006, the Company began production in Turkey, and on February 1, 2007, the Company began production in China. Production at the Kişladağ mine in Turkey was suspended in August 2007 as a result of a court injunction and the mine remained shut down throughout the rest of that year. The court injunction was removed in February 2008 and the mine restarted production on June 6, 2008. Production operations in Brazil ceased in the second quarter of 2007 and the São Bento mine (“São Bento”) was sold to AngloGold Ashanti on December 15, 2008.

With the exception of changes in accounting policies as outlined in note 2 below, these unaudited interim consolidated financial statements were prepared by Eldorado in accordance with Canadian generally accepted accounting principles (“Canadian GAAP”) consistent with those used to prepare Eldorado’s audited consolidated financial statements for the year ended December 31, 2008. As these unaudited interim consolidated financial statements do not contain all of the disclosures required by Canadian GAAP for annual financial statements, they should be read in conjunction with the notes to the Company’s audited consolidated financial statements for the year ended December 31, 2008.

In the opinion of management, Eldorado has made all adjustments necessary to present fairly the Company’s consolidated financial position as at September 30, 2009 and the consolidated results of operations, cash flows and comprehensive income for the three- and nine-month periods then ended.

Certain comparative figures have been reclassified to conform to the current period’s presentation.


2.

Changes in accounting policies and new accounting developments


Goodwill and intangible assets (Section 3064)

In February 2008, the Canadian Institute of Chartered Accountants (“CICA”) issued Section 3064, “Goodwill and Intangible Assets”, which replaces Section 3062, “Goodwill and Other Intangible Assets”. This new standard provides guidance on recognizing, measuring, presenting and disclosing goodwill and intangible assets and is effective for the Company beginning January 1, 2009 and applies retrospectively.


The adoption of this new accounting policy did not have a material impact on Eldorado’s consolidated financial statements.


Credit Risk and the Fair Value of Financial Assets and Financial Liabilities (EIC Abstract 173)


In January 2009, the CICA issued EIC Abstract 173, “Credit Risk and the Fair Value of Financial Assets and Financial Liabilities”. The EIC requires the Company to take into account the Company’s own credit risk and the credit risk of the counterparty in determining the fair value of financial assets and financial liabilities, including derivative instruments. This abstract applies to interim and annual financial statements relating to fiscal years beginning on or after January 1, 2009. The adoption of this new accounting policy did not have any material impact on Eldorado’s consolidated financial statements.





Eldorado Gold Corporation

Notes to the Unaudited Interim Consolidated Financial Statements

September 30, 2009


(Expressed in thousands of U.S. dollars, unless otherwise stated)



2.    Changes in accounting policies and new accounting developments (continued)


Mining Exploration Costs (EIC Abstract 174)


In March 2009, the CICA issued EIC Abstract 174, “Mining Exploration Costs”. The EIC provides guidance on the accounting and the impairment review of exploration costs. This abstract applies to interim and annual financial statements relating to fiscal years beginning on or after January 1, 2009. The adoption of this new accounting policy did not have any material impact on Eldorado’s consolidated financial statements.


Financial Instruments – Recognition and Measurement (Section 3855) and Impaired Loans (Section 3025)


In July 2009, the Accounting Standards Board (“AcSB”) amended Section 3855, Financial Instruments – Recognition and Measurement, and Section 3025, Impaired Loans, to converge with IFRS for impairment of debt instruments by enabling debt securities to be included in the loans and receivables category. The main features of the amendments are: i) to eliminate the distinction between debt securities and other debt instruments and adopt the definition of loans and receivables from IAS 39, Financial Instruments – Recognition and Measurement, ii) to permit reclassification of financial assets from the held-for-trading and available-for-sale categories into the loans and receivables category and specifying the circumstances in which such transfers can be made and the accounting for those transfers, iii) to reclassify to net income, foreign exchange gains and losses associated with assets transferred out of the available-for-sale category, that were previously recognized in other comprehensive income, immediately upon transfer, iv) to change the impairment model for held-to-maturity investments to the incurred credit loss model in accordance with Section 3025, and v) to require the reversal of an impairment loss relating to an available-for-sale debt instrument when, in a subsequent period, the fair value of the instrument increases and the increase can be objectively related to an event occurring after the loss was recognized.

The new changes are effective for annual financial statements for fiscal years beginning on or after November 1, 2009. Application to interim financial statements in year of adoption is permitted if statements are issued on or after August 20, 2009. The Company is currently assessing the impact of the new standard on its consolidated financial statements.



3.

Vila Nova Iron Ore Project


On August 5, 2009, the Company announced the acquisition of the remaining 25% interest in its Vila Nova Iron Ore Project (the "Project") from Mineração Amapari SA (“Amapari”), a Brazilian private company, in exchange for a Net Profits Interest royalty of 10% plus a sliding scale royalty based on the operating margin of the Project. The transaction took place between Amapari and Unamgen Mineração - a wholly owned subsidiary of Eldorado in Brazil.


Under the terms of the agreement, Eldorado has to pay $750 on start of commercial production plus variable payments tied to total production or sales of assets.








Eldorado Gold Corporation

Notes to the Unaudited Interim Consolidated Financial Statements

September 30, 2009


(Expressed in thousands of U.S. dollars, unless otherwise stated)



4.

Defined benefit plans expense

 

 

Three months ended

 

Nine months ended

 

 

September 30,

 

September 30,

 

 

2009

$

 

2008

$

 

2009

$

 

2008

$

         

 

 

 

 

 

 

 

 

Pension plan expense

 

31

 

-

 

87

 

-

SERP expense *

 

411

 

-

 

1,158

 

-

 

 


 


 


 


Total

 

442

 

-

 

1,245


-


* Non-registered Supplemental Retirement Plan



5.

Debt


In November 2007, Qinghai Dachaidan Mining Limited (“QDML”), our 90% owned subsidiary, entered into a $15,000 revolving facility (“the Facility) with HSBC Bank (China). The Facility can be drawn down in minimum tranches of $100 or in integral multiples of $10. Each drawdown bears interest fixed at the prevailing lending rate stipulated by the People’s Bank of China with a 10% markdown. The Facility had a term of one year and is subject to annual review and renewal. In November 2008, the Facility was renewed for a second year and the interest rate was fixed at 1.2 times the prevailing lending rate stipulated by the People’s Bank of China.


In January 2009, QDML drew down $5,000 under the Facility and the total amount was paid off in September, 2009. A restricted cash account was set up as collateral for the bank loan at the beginning of the year in the amount of $5,500 and it was released by the Bank when the loan was paid off at the end of September, 2009.



6.

Shareholders’ equity


(a)

Authorized and issued share capital

The Company’s authorized share capital consists of an unlimited number of voting common shares without par value and an unlimited number of non-voting common shares without par value. At September 30, 2009 there were no non-voting common shares outstanding.


Voting common shares

 

Number of shares

 

Amount

$

Balance, December 31, 2008

 

368,278,029

 

931,933

 

 


 


Shares issued upon exercise of share options, for cash

 

4,062,992

 

18,969

Shares issued in consideration for investment in Sino Gold (note 8)

 

27,824,654

 

263,293

Estimated fair value of share options exercised

 

-

 

7,756

 

 


 


Balance, September 30, 2009

 

400,165,675

 

1,221,951




Eldorado Gold Corporation

Notes to the Unaudited Interim Consolidated Financial Statements

September 30, 2009


(Expressed in thousands of U.S. dollars, unless otherwise stated)





6.    Shareholders’ equity (continued)


(b)

Contributed surplus


The continuity of contributed surplus on the Consolidated Balance Sheet is as follows:

 

 

 Contributed surplus attributable to:

 

 

 Stock-based

 compensation

 $

 

 Other

 $

 

Total

$

 

 

 

 

 

 

 

Balance, December 31, 2008

 

18,284

 

1,094

 

19,378

 

 

 

 

 

 

 

Non-cash stock-based compensation

 

7,109

 

-

 

7,109

Options exercised, credited to share capital

 

(7,756)

 

-

 

(7,756)

 

 


 


 


Balance, September 30, 2009

 

17,637

 

1,094

 

18,731



(c)

Accumulated other comprehensive income (loss)

Accumulated other comprehensive income includes the following:

 

September 30,

2009

$

 

December 31, 2008

$

 

 

 

 

Balance, beginning of period

(5,971)


214

 




Unrealized gains (losses) on available-for-sale investment

88,608


(6,431)

Other than temporary impairment charges

-


460

Realized gains (losses) on sale of available-for-sale investment transferred to net income

1,717


(61)

FIT on unrealized gains on available-for-sale investment

(10,253)



Reversal on acquisition of Frontier

-


(153)

 




Balance, end of period

74,101


(5,971)








Eldorado Gold Corporation

Notes to the Unaudited Interim Consolidated Financial Statements

September 30, 2009


(Expressed in thousands of U.S. dollars, unless otherwise stated)



7.

Stock-based compensation

(a)

Share option plans

The continuity of share purchase options outstanding is as follows:


 

 

Weighted average exercise price

Cdn$

 

Number of options

 

Contractual weighted average remaining life

(years)

 

 

 

 

 

 

 

Balance, December 31, 2008

 

5.71

 

13,438,914

 

3.9

Granted

 

 9.60

 

688,000

 


Exercised

 

 5.53

 

(4,062,992)

 


Cancelled

 

 6.46

 

(55,000)

 


 

 


 


 


Balance, September 30, 2009

 

 6.04

 

10,008,922

 

 3.5



At September 30, 2009, 4,726,577 share purchase options (December 31, 2008 – 6,119,729) with a weighted average exercise price of Cdn$6.56 (December 31, 2008 – Cdn$5.69) had vested and were exercisable.

Options outstanding at September 30, 2009 are as follows:

 

 

 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$

 

 

 

 

 

 

 

 

 

 

 

$3.00 to $3.99

 

75,333

 

0.4

 

3.50

 

75,333

 

3.50

$4.00 to $4.99

 

4,558,741

 

4.1

 

4.88

 

758,074

 

4.88

$5.00 to $5.99

 

431,879

 

2.7

 

5.27

 

405,211

 

5.27

$6.00 to $6.99

 

1,962,800

 

3.4

 

6.44

 

1,013,458

 

6.44

$7.00 to $7.99

 

2,317,169

 

2.6

 

7.18

 

2,203,502

 

7.15

$9.00 to $9.99

 

633,000

 

4.5

 

9.53

 

260,999

 

9.62

$11.00 to $11.99

 

30,000

 

4.5

 

11.40

 

10,000

 

11.40

 

 


 


 


 


 


 

 

10,008,922

 

3.5

 

6.04

 

4,726,577

 

6.56







Eldorado Gold Corporation

Notes to the Unaudited Interim Consolidated Financial Statements

September 30, 2009


(Expressed in thousands of U.S. dollars, unless otherwise stated)



7.    Stock-based compensation (continued)


(b)

Stock-based compensation expense

Stock-based compensation expense incurred to September 30, 2009 has been included in the undernoted expenses in the Consolidated Statements of Operations and Deficit as follows:

 

 

Three months ended

 

Nine months ended

 

 

September 30,

 

September 30,

 

 

2009

$

 

2008

$

 

2009

$

 

2008

$

         

 

 

 

 

 

 

 

 

Operating costs

 

367

 

189

 

1,545

 

837

Exploration

 

220

 

189

 

795

 

942

General and administrative

 

1,280

 

1,217

 

4,769

 

4,796

 

 


 


 


 


 

 

1,867

 

1,595

 

7,109


6,575



(c)

Bonus Cash Award Units plan

As of September 30, 2009, all Bonus Cash Award Units (“BCAUs”) awarded by the Company were exercised. The Company paid $2,543 in bonus cash award units in the nine months ended September 30, 2009. The related expense for the nine months ended as at September 30, 2009 in the amount of $559 is included in general and administrative expense in the Consolidated Statements of Operations and Deficit.


8.

Agreements to acquire Sino Gold Mining Limited


On July 27, 2009, Eldorado acquired 57,968,029 shares (19.8%) of Sino Gold Mining Limited (“Sino Gold”) from Gold Fields Limited (“Gold Fields”). On that date, Eldorado issued 27,824,654 common shares from Treasury as consideration for the 57,968,029 common shares of Sino Gold (the “Sino Gold shares”).


The Sino Gold shares were initially valued and recorded at $263,293 and are classified as a long term investment available for sale. As such, the investment in Sino Gold is carried at fair value at September 30, 2009, being $345,415, based on the closing price of the shares and foreign exchange rate at September 30, 2009. The increase in fair value during the period is recorded as an unrealized gain of $82,122 in other comprehensive income with a related future income tax charge of $9,946. In accordance with EIC-172, the tax benefit from the recognition of previously unrecognised tax losses carried forward consequent to the recording of unrealized gains on the Sino Gold investment has been recognized in net income as an income tax recovery of $9,946.


For a period of 18 months, Gold Fields has a top-up right which will apply should Eldorado purchase an additional 5% or more of the outstanding shares of Sino Gold and the sellers receive consideration equivalent to a share consideration ratio in excess of the 0.48 share exchange ratio received by Gold Fields.




Eldorado Gold Corporation

Notes to the Unaudited Interim Consolidated Financial Statements

September 30, 2009


(Expressed in thousands of U.S. dollars, unless otherwise stated)



8.    Agreements to acquire Sino Gold Mining Limited (continued)


On August 26, 2009, Eldorado and Sino Gold announced that they had signed a Scheme Implementation Deed under which Eldorado proposed to acquire all of the issued and outstanding shares in Sino Gold that it does not currently own via a Scheme of Arrangement ("Scheme") under Australian law.


Consideration for the transaction will be Eldorado shares, with Sino Gold shareholders offered 0.55 Eldorado shares for each Sino Gold share they own. The transaction values Sino Gold at approximately A$2.2 billion (US$1.8 billion) as at the announcement date.


On completion of the transaction, Eldorado expects to issue 4.1 million shares to Gold Fields pursuant to the top-up right.


The transaction is subject to satisfaction of a number of customary conditions precedent, including the receipt of required regulatory and Australian court approvals, as well as the approval of Sino Gold shareholders. Regulatory approvals from the Australian Foreign Investment Review Board have been obtained, and subject to meeting customary conditions, approval from the TSX and NYSE have been obtained. The transaction is expected to close by mid December. On September 14, 2009, Eldorado announced that the due diligence conditions had been satisfied.


A reimbursement fee of A$21 million applies to both parties should the Scheme Implementation Deed be terminated under certain circumstances and the transaction does not complete.


9.

Supplementary cash flow information


 

 

Three months ended

 

Nine months ended

 

 

September 30,

 

September 30,

 

 

2009

$

2008

$

 

2009

$

2008

$

 

 

 

 

 

 

 

Changes in non-cash working capital

 

 

 

 



Accounts receivable and other

 

(2,526)

(670)

 

16,002

1,337

Inventories

 

(10,595)

(8,266)


(22,672)

(10,687)

Accounts payable and accrued liabilities

 

6,804

(9,837)

 

9,011

421

 

 



 



 

 

(6,317)

(18,773)

 

2,341

(8,929)

 

 



 



Supplementary cash flow information

 



 



Income taxes paid

 

12,667

12,701

 

25,529

21,379

Interest paid

 

89

1,595

 

211

1,854

 

 



 



Non-cash investing and financing activities

 



 



Increase in mineral interest financed by accounts payable

 

750

-

 

750

-




Eldorado Gold Corporation

Notes to the Unaudited Interim Consolidated Financial Statements

September 30, 2009


(Expressed in thousands of U.S. dollars, unless otherwise stated)





10.

Segmented information

During the periods ended September 30, 2009, Eldorado had five reporting segments. The Brazil reporting segment includes the development activities of Vila Nova and exploration activities in Brazil. The Turkey reporting segment includes the operations of the Kişladağ mine, development activities of the Efemçukuru project and exploration activities in Turkey. The China reporting segment includes the operations of the Tanjianshan mine and exploration activities in China. The Greece reporting segment includes development activities on the Perama Hill project. The other reporting segment includes the operations of the Company’s corporate office and exploration activities in other countries.

 

 

 September 30, 2009

 

 

 


 

 

 

 

 

 

 

 

 

 

 Turkey

 $

 

 China

 $

 

 Brazil

 $

 

 Greece

 $

 

 Other

 $

 Total

 $

Net mining interests

 

 

 

 

 

 

 

 

 

 

 

Producing properties

 

 195,573

 

 152,751

 

 -

 

 -

 

 -

 348,324

Properties under development

 

 76,157

 

 -

 

 -

 

 208,930

 

 -

 285,087

Iron ore property

 

 -

 

 -

 

 46,871

 

 -

 

 -

 46,871

Other mining interests

 

 7,149

 

 -

 

 13,990

 

 -

 

 2,279

 23,418

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 278,879

 

 152,751

 

 60,861

 

 208,930

 

 2,279

 703,700


 

 

 December 31, 2008

 

 

 


 

 

 

 

 

 

 

 

 

 

 Turkey

 $

 

 China

 $

 

 Brazil

 $

 

 Greece

 $

 

 Other

 $

 Total

 $

Net mining interests

 

 

 

 

 

 

 

 

 

 

 

Producing properties

 

 190,881

 

 163,157

 

 -

 

 -

 

 -

 354,038

Properties under development

 

 54,378

 

 -

 

 -

 

 207,407

 

 -

 261,785

Iron ore property

 

 -

 

 -

 

 38,986

 

 -

 

 -

 38,986

Other mining interests

 

 4,151

 

 -

 

 7,359

 

 -

 

 1,990

 13,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 249,410

 

 163,157

 

 46,345

 

 207,407

 

 1,990

 668,309


Operations

 

 

 For the three months ended September 30, 2009

 

 

 

 

 

 

 

 


 

 

 

 

 

 Turkey

 $

 

 China

 $

 

 Brazil

 $

 

 Greece

 $

 

 Other

 $

 Total

 $

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

Gold sales

 

53,606

 

28,002

 

-

 

-

 

 -

81,608

Interest and other income

 

208

 

46

 

-

 

-

 

742

996

 

 

53,814

 

28,048

 

-

 

-

 

742

82,604

Expenses except the undernoted

 

17,265

 

13,012

 

79

 

1,649

 

2,078

34,083

Depletion, depreciation and amortization

 

2,738

 

6,041

 

14

 

-

 

224

9,017

Exploration

 

1,488

 

230

 

597

 

-

 

867

3,182

Mine standby costs – Iron ore property

 

-

 

-

 

881

 

-

 

-

881

Gain on disposal of assets

 

11

 

-

 

-

 

-

 

108

119

 

 


 


 


 


 



Income (loss) before tax

 

32,312

 

8,765

 

(1,571)

 

(1,649)

 

(2,535)

35,322

Income tax (expense) recovery

 

(6,182)

 

(8,744)

 

-

 

-

 

9,987

(4,939)

Non-controlling interest

 

-

 

(229)

 

-

 

-

 

-

(229)

 

 


 


 


 


 



Net income (loss)

 

26,130

 

(208)

 

(1,571)

 

(1,649)

 

7,452

30,154





Eldorado Gold Corporation

Notes to the Unaudited Interim Consolidated Financial Statements

September 30, 2009


(Expressed in thousands of U.S. dollars, unless otherwise stated)





10.    Segmented information (continued)


 

 

 For the nine months ended September 30, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Turkey

 $

 

 China

 $

 

 Brazil

 $

 

 Greece

 $

 

 Other

 $

 Total

 $

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

Gold sales

 

155,212


58,749


-


-


-

213,961

Interest and other income

 

565


99


2


-


917

1,583

 

 

155,777


58,848


2


-


917

215,544

Expenses except the undernoted

 

49,528


29,199


170


1,411


16,421

96,729

Depletion, depreciation and amortization

 

8,022


11,323


58


-


612

20,015

Exploration

 

4,337


837


1,396


-


2,048

8,618

Mine standby costs – Iron ore property

 

-


-


1,817


-


-

1,817

Gain on disposal of asset

 

11


-


-


-


(1,355)

(1,344)

 

 











Income (loss) before tax

 

93,879


17,489


(3,439)


(1,411)


(16,809)

89,709

Income tax (expense) recovery

 

(19,808)


(9,764)


-


-


10,222

(19,350)

Non-controlling interest

 

-


(1,244)


-


-


-

(1,244)

 

 











Net income (loss)

 

74,071


6,481


(3,439)


(1,411)


(6,587)

69,115



 

 

 For the three months ended September 30, 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Turkey

 $

 

 China

 $

 

 Brazil

 $

 

 Greece

 $

 

 Other

 $

 Total

 $

 

 

 

 

 

 

 

 


 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

    Gold sales

 

41,048


23,965


-


-


-

65,013

    Interest and other income

 

280


82


2,298


-


565

3,225

 

 

41,328


  24,047


2,298


-


565

68,238

    Expenses except the undernoted

 

13,782


12,861


7,187


(334)


4,422

37,918

    Depletion, depreciation and amortization

 

2,234


4,384


63


-


91

6,772

    Exploration

 

5,847


47


852


-


697

7,443

 

 











    Income (loss) before tax and other items

 

19,465


6,755


(5,804)


334


(4,645)

16,105

    Income tax (expense) recovery

 

(2,696)


(1,366)


5,708


-


(21)

1,625

    Non-controlling interest

 

-


(690)


-


-


-

(690)

 

 











    Net income (loss)

 

16,769


4,699


(96)


334


(4,666)

17,040









Eldorado Gold Corporation

Notes to the Unaudited Interim Consolidated Financial Statements

September 30, 2009


(Expressed in thousands of U.S. dollars, unless otherwise stated)



10.    Segmented information (continued)


 

 

 For the nine months ended September 30, 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Turkey

 $

 

 China

 $

 

 Brazil

 $

 

 Greece

 $

 

 Other

 $

 Total

 $

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

    Gold sales

 

 114,292

 

 99,455

 

 -

 

 -

 

 -

 213,747

    Interest and other income

 

 648

 

 308

 

 6,605

 

 -

 

 1,775

 9,336

 

 

 114,940

 

   99,763

 

 6,605

 

 -

 

 1,775

 223,083

    Expenses except the undernoted

 

 39,257

 

 39,222

 

 8,759

 

 (334)

 

 18,529

 105,433

    Depletion, depreciation and amortization

 

 5,333

 

 13,452

 

 63

 

 -

 

 260

 19,108

    Exploration

 

 9,016

 

 234

 

 1,646

 

 -

 

 1,410

 12,306

 

 

 

 

 

 

 

 

 

 

 

 

    Income (loss) before tax and other items

 

 61,334

 

 46,855

 

 (3,863)

 

 334

 

 (18,424)

 86,236

    Income tax (expense) recovery

 

 (11,167)

 

 (8,928)

 

 2,557

 

 -

 

 (69)

 (17,607)

    Non-controlling interest

 

 -

 

 (5,697)

 

 -

 

 -

 

 -

 (5,697)

 

 

 

 

 

 

 

 

 

 

 

 

    Net income (loss)

 

 50,167

 

 32,230

 

 (1,306)

 

 334

 

 (18,493)

 62,932