FG Filed by Filing Services Canada Inc. 403-717-3898

EX-99.1 2 fins.htm CONSOLIDATED FINANCIAL STATEMENTS FG Filed by Filing Services Canada Inc. 403-717-3898

June 30, 2014 Unaudited Condensed Consolidated Financial Statements

Suite 1188, 550 Burrard Street

Vancouver, British Columbia

V6C 2B5

Phone: (604) 687-4018

Fax: (604) 687-4026

Eldorado Gold Corporation

Unaudited Condensed Consolidated Balance Sheets

(Expressed in thousands of U.S. dollars)

	Note	June 30, 2014			December 31, 2013
		$			$
ASSETS
Current assets
Cash and cash equivalents			559,498			589,180
Term deposits			25,026			34,702
Restricted cash			262			262
Marketable securities			4,637			4,387
Accounts receivable and other			82,822			89,231
Inventories			233,531			244,042
			905,776			961,804
Investment in associate			-			10,949
Deferred income tax assets			1,601			997
Restricted assets and other			55,581			37,330
Defined benefit pension plan			15,398			13,484
Property, plant and equipment			5,806,914			5,684,382
Goodwill			526,296			526,296
			7,311,566			7,235,242
LIABILITIES & EQUITY
Current liabilities
Accounts payable and accrued liabilities			171,775			211,406
Current debt	5		16,253			16,402
			188,028			227,808
Debt	5		586,104			585,006
Other non-current liability	4(b)		47,711			-
Asset retirement obligations			86,423			85,259
Deferred income tax liabilities			852,575			842,305
			1,760,841			1,740,378
Equity
Share capital	6		5,314,813			5,314,589
Treasury stock			(14,845	)		(10,953	)
Contributed surplus			37,197			78,557
Accumulated other comprehensive loss			(16,450	)		(17,056	)
Deficit			(80,965	)		(143,401	)
Total equity attributable to shareholders of the Company			5,239,750			5,221,736
Attributable to non-controlling interests			310,975			273,128
			5,550,725			5,494,864
			7,311,566			7,235,242

Approved on behalf of the Board of Directors

(Signed) Robert R. Gilmore

Director

(Signed) Paul N. Wright

Director

The accompanying notes are an integral part of these consolidated financial statements.

Eldorado Gold Corporation

Unaudited Condensed Consolidated Income Statements

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

	Three months ended						Six months ended
	June 30,						June 30,

	2014			2013			2014			2013
	$			$			$			$
Revenue
Metal sales		265,497			266,929			545,367			604,997

Cost of sales
Production costs		122,524			116,133			257,309			246,501
Depreciation and amortization		44,095			35,234			89,667			72,348
		166,619			151,367			346,976			318,849
Gross profit		98,878			115,562			198,391			286,148

Exploration expenses		3,890			10,240			7,785			17,864
General and administrative expenses		19,099			18,239			34,943			34,725
Defined benefit pension plan expense		413			619			816			1,248
Share based payments		5,281			3,291			12,275			12,168
Foreign exchange loss (gain)		(1,553	)		5,920			(2,914	)		5,818
Operating profit		71,748			77,253			145,486			214,325

Loss (gain) on disposal of assets		1,819			(51	)		1,825			(15	)
Loss (gain) on marketable securities and other investments		550			-			1,322			(21	)
Loss on investments in associates		-			214			102			1,123
Other income		(3,631	)		(3,138	)		(2,847	)		(5,114	)
Asset retirement obligation accretion		581			386			1,163			725
Interest and financing costs		7,916			11,061			16,321			21,562

Profit before income tax		64,513			68,781			127,600			196,065
Income tax expense		24,999			24,550			57,443			195,802
Profit for the period		39,514			44,231			70,157			263

Attributable to:
Shareholders of the Company		37,632			43,274			68,900			(2,189	)
Non-controlling interests		1,882			957			1,257			2,452
Profit for the period		39,514			44,231			70,157			263

Weighted average number of shares outstanding
Basic		716,249			715,038			716,239			714,739
Diluted		716,249			715,426			716,239			715,256

Earnings per share attributable to shareholders of the Company:
Basic earnings per share		0.05			0.06			0.10			0.00
Diluted earnings per share		0.05			0.06			0.10			0.00

The accompanying notes are an integral part of these consolidated financial statements.

Eldorado Gold Corporation

Unaudited Condensed Consolidated Statements of Comprehensive Income

(Expressed in thousands of U.S. dollars)

	Three months ended					Six months ended
	June 30,					June 30,
	2014		2013			2014			2013
	$		$			$			$

Profit for the period		39,514		44,231			70,157			263
Other comprehensive gain (loss):
Change in fair value of available-for-sale financial assets		336		(918	)		(153	)		(1,400	)
Realized gains on disposal of available-for-sale financial assets		-		-			759			(17	)
Total other comprehensive gain (loss) for the period		336		(918	)		606			(1,417	)
Total comprehensive income (deficit) for the period		39,850		43,313			70,763			(1,154	)

Attributable to:
Shareholders of the Company		37,968		42,356			69,506			(3,606	)
Non-controlling interests		1,882		957			1,257			2,452
		39,850		43,313			70,763			(1,154	)

The accompanying notes are an integral part of these consolidated financial statements.

Eldorado Gold Corporation

Unaudited Condensed Consolidated Statements of Cash Flows

(Expressed in thousands of U.S. dollars)

		Three months ended						Six months ended
		June 30,						June 30,
	Note	2014			2013			2014			2013
		$			$			$			$
Cash flows generated from (used in):
Operating activities
Profit for the period			39,514			44,231			70,157			263
Items not affecting cash:
Asset retirement obligation accretion			581			386			1,163			725
Depreciation and amortization			44,095			35,234			89,667			72,348
Unrealized foreign exchange loss (gain)			(508	)		403			(124	)		524
Deferred income tax expense			471			560			9,667			136,448
Loss (gain) on disposal of assets			1,819			(51	)		1,825			(15	)
Loss on investments in associates			-			214			102			1,123
Loss (gain) on marketable securities and other investments			550			-			1,322			(21	)
Share based payments			5,281			3,291			12,275			12,168
Defined benefit pension plan expense			413			619			816			1,248
			92,216			84,887			186,870			224,811

Changes in non-cash working capital	9		(29,383	)		(63,433	)		(54,600	)		(36,265	)
			62,833			21,454			132,270			188,546
Investing activities
Net cash used on acquisition of subsidiary	4(a)		-			-			(30,318	)		-
Purchase of property, plant and equipment			(107,917	)		(116,549	)		(188,347	)		(217,763	)
Proceeds from the sale of property, plant and equipment			92			136			176			192
Proceeds on production from tailings retreatment			11,765			10,900			20,557			15,228
Purchase of marketable securities			(852	)		-			(852	)		-
Proceeds from the sale of marketable securities			243			-			865			332
Investments in associates			-			-			-			(6,357	)
Redemption of (investment in) term deposits			(20,000	)		(62,514	)		9,676			(221,441	)
Decrease in restricted cash			(24	)		15			2			5
			(116,693	)		(168,012	)		(188,241	)		(429,804	)
Financing activities
Issuance of common shares for cash			-			179			-			1,601
Investment by non-controlling interest	4(b)		-			-			40,000			-
Dividend paid to shareholders			-			-			(6,464	)		(50,241	)
Dividends paid to non-controlling interest			(815	)					(815	)
Purchase of treasury stock			(9	)		(168	)		(6,413	)		(6,462	)
Long-term and bank debt proceeds			-			-			16,363			12,412
Long-term and bank debt repayments			-			-			(16,382	)		(10,354	)
Loan financing costs			-			90			-			(383	)
			(824	)		101			26,289			(53,427	)
Net decrease in cash and cash equivalents			(54,684	)		(146,457	)		(29,682	)		(294,685	)
Cash and cash equivalents - beginning of period			614,182			668,615			589,180			816,843

Cash and cash equivalents - end of period			559,498			522,158			559,498			522,158

The accompanying notes are an integral part of these consolidated financial statements.

Eldorado Gold Corporation

Unaudited Condensed Consolidated Statements of Changes in Equity

(Expressed in thousands of U.S. dollars)

		Three months ended						Six months ended
		June 30,						June 30,
	Note	2014			2013			2014			2013
		$			$			$			$
Share capital
Balance beginning of period			5,314,813			5,303,095			5,314,589			5,300,957
Shares issued upon exercise of share options, for cash			-			179			-			1,601
Transfer of contributed surplus on exercise of options			-			273			-			989
Transfer of contributed surplus on exercise of deferred
phantom units			-			3,400			224			3,400
Balance end of period			5,314,813			5,306,947			5,314,813			5,306,947

Treasury stock
Balance beginning of period			(17,357	)		(12,307	)		(10,953	)		(7,445	)
Purchase of treasury stock			(9	)		(168	)		(6,413	)		(6,462	)
Shares redeemed upon exercise of restricted share units			2,521			700			2,521			2,132
Balance end of period			(14,845	)		(11,775	)		(14,845	)		(11,775	)

Balance beginning of period			35,424			71,827			78,557			65,382
Share based payments			5,035			3,935			11,750			12,528
Shares redeemed upon exercise of restricted share units			(2,521	)		(700	)		(2,521	)		(2,132	)
Recognition of other non-current liability and related costs	4(b)		(741	)		-			(50,365	)		-
Transfer to share capital on exercise of options and deferred
phantom units			-			(3,673	)		(224	)		(4,389	)
Balance end of period			37,197			71,389			37,197			71,389

Accumulated other comprehensive loss
Balance beginning of period			(16,786	)		(25,034	)		(17,056	)		(24,535	)
Other comprehensive loss for the period			336			(918	)		606			(1,417	)
Balance end of period			(16,450	)		(25,952	)		(16,450	)		(25,952	)

Retained earnings (deficit)
Balance beginning of period			(118,597	)		499,172			(143,401	)		594,876
Dividends paid			-			-			(6,464	)		(50,241	)
Profit (loss) attributable to shareholders of the Company			37,632			43,274			68,900			(2,189	)
Balance end of period			(80,965	)		542,446			(80,965	)		542,446
Total equity attributable to shareholders of the Company			5,239,750			5,883,055			5,239,750			5,883,055
Non-controlling interests
Balance beginning of period			312,503			285,595			273,128			284,100
Profit attributable to non-controlling interests			1,882			957			1,257			2,452
Dividends declared to non-controlling interests			(3,410	)		-			(3,410	)		-
Increase during the period	4(b)		-			-			40,000			-
Balance end of period			310,975			286,552			310,975			286,552

Total equity			5,550,725			6,169,607			5,550,725			6,169,607

The accompanying notes are an integral part of these consolidated financial statements.

Eldorado Gold Corporation

Notes to the unaudited condensed consolidated financial statements

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

1.	General Information

Eldorado Gold Corporation (“Eldorado” or the “Company”) is a gold exploration, development, mining and production company. The Company has operations and ongoing exploration and development projects in Turkey, China, Greece, Brazil and Romania. The Company acquired Glory Resources Ltd (“Glory”) in March 2014. Glory has the Sapes project in Thrace, Greece.

Eldorado is a public company which is listed on the Toronto Stock Exchange and New York Stock Exchange and is incorporated and domiciled in Canada.

2.	Basis of preparation

a)	Statement of compliance

These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34 ‘Interim Financial Reporting’. They do not include all of the information and footnotes required by the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board for full annual financial statements and should be read in conjunction with the Company’s annual financial statements for the year ended December 31, 2013.

The same accounting policies are used in the preparation of these unaudited condensed consolidated interim financial statements as for the most recent audited annual financial statements and reflect all the adjustments necessary for fair presentation in accordance with IFRS for the interim periods presented.

b)	Judgement and estimates

The preparation of these unaudited condensed consolidated interim financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

The significant judgements made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2013.

3.	Adoption of new accounting standards

The following interpretation of a standard has been adopted by the Company commencing January 1, 2014:

IFRIC 21 ‘Levies’ – This interpretation of IAS 37, ‘Provisions, Contingent Liabilities and Contingent Assets’, applies to the accounting for levies imposed by governments. IAS 37 sets out criteria for the recognition of a liability, one of which is the requirement for the entity to have a present obligation as a result of a past event (“obligating event”). IFRIC 21 clarifies that the obligating event that gives rise to a liability to pay a levy is the activity described in the relevant legislation that triggers the payment of the levy. There was no impact on these unaudited condensed consolidated interim financial statements as a result of the adoption of this standard.

The following standards have been published and are mandatory for Eldorado’s annual accounting periods no earlier than January 1, 2017:

IFRS 9 ‘Financial Instruments: Classification and Measurement’ – This is the first part of a new standard on classification and measurement of financial assets that will replace IAS 39, ‘Financial Instruments: Recognition and Measurement’. IFRS 9 has two measurement categories: amortized cost and fair value. All equity instruments are measured at fair value. A debt instrument is recorded at amortized cost only if the entity is holding it to collect contractual cash flows and the cash flows represent principal and interest. Otherwise it is measured at fair value with changes in fair value through profit or loss. In addition, this new standard has been updated to include guidance on financial liabilities and derecognition of financial instruments. The Company is currently evaluating the extent of the impact of the adoption of this standard.

Eldorado Gold Corporation

Notes to the unaudited condensed consolidated financial statements

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

3.	Adoption of new accounting standards (continued)

IFRS 15 ‘Revenue from Contracts with Customers’ – This standard contains a single model that applies to contracts with customers and two approaches to recognising revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognized. New estimates and judgmental thresholds have been introduced, which may affect the amount and/or timing of revenue recognized. This standard is effective for fiscal years ending on or after December 31, 2017. The Company does not expect this standard to have a material impact on its financial statements.

4.	Acquisitions and other transactions

a)	Acquisition of Glory

Eldorado completed the acquisition of all of the issued and outstanding common shares of Glory that it did not already own on March 14, 2014. As a result, Eldorado acquired a 100% interest in the Sapes project in Thrace, Greece. Prior to the transaction, Eldorado owned 19.9% interest in Glory and the investment was accounted for as an investment in associate.

Total consideration of $39,219 included cash for 179,504,179 shares in the amount of $27,583, an option buy-out payment of $1,590 to holders of Glory options, and $10,046 related to the 44,595,920 shares of Glory that Eldorado had purchased prior to the off-market takeover bid. A total of $1,229 was incurred as transaction costs and was capitalized as property, plant and equipment.

This transaction has been accounted for as an acquisition of assets and liabilities as Glory did not constitute a business, as defined in IFRS 3. Other than a small working capital amount the remainder of the value for this transaction was assigned to property, plant and equipment.

Eldorado paid net cash of $30,318 as a result of the transaction. This net reduction of cash was a result of an acquired cash balance of $84 less cash consideration of $29,173 and transaction costs of $1,229.

b)	Eastern Dragon agreement

In March 2014, the Company, through one of its subsidiaries, entered into a Subscription and a Shareholders agreement (“Agreements”) with a third party (“Third Party”).

As a result of these Agreements, Third Party acquired 21.5% of the total ordinary shares of Sino Gold Tenya (HK) Limited (“Tenya”), a subsidiary of the Company, and indirectly a 20% interest in the Eastern Dragon Project.

Under the terms of the Agreements, Third Party has the right to require Eldorado to purchase or procure the purchase by another party of Third Party’s shares in Tenya at a fixed price (“Put Option”) for 90 days following the second anniversary of the Agreements.

The Agreements include other rights and obligations of the Company and Third Party associated with the advancement of the Eastern Dragon Project.

This transaction has been accounted as an equity transaction with the recognition of a non-controlling interest in the amount of $40,000 representing the consideration received. A liability in the amount of $46,970 has been recorded at the transaction date, representing the present value of the redemption amount of the Put Option and $2,654 of transaction costs were recorded against equity. Future changes in the present value of the redemption amount of the Put Option are being charged against equity. The present value of the liability representing the Put Option as of June 30, 2014 is $47,711.

Eldorado Gold Corporation

Notes to the unaudited condensed consolidated financial statements

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

Debt

	June 30, 2014 $		December 31, 2013 $
Current:
Jinfeng China Merchant Bank (“CMB”) working capital loan (a)		16,253		16,402

Non-current:
Senior notes (b)		586,104		585,006
Total debt		602,357		601,408

(a)	Jinfeng CMB working capital loan

On January 16, 2013, Jinfeng entered into a RMB 100.0 million ($16,253) working capital loan with CMB. Each drawdown bears fixed interest at the prevailing lending rate stipulated by the People’s Bank of China on the date of drawdown. The Facility had a term of up to one year, from January 16, 2013 to January 14, 2014. In January 2014, the term of the facility was extended to January 28, 2015. This facility is unsecured.

As at June 30, 2014, Jinfeng has drawn down the full amount under this facility and has used the proceeds to fund working capital obligations. All tranches of the loan have a term of six months and a fixed interest rate of 5.6%.

Subsequent to June 30, 2014, Jinfeng repaid RMB 13.0 million ($2,113) on this loan.

(b)	Senior notes

On December 10, 2012, the Company completed an offering of $600.0 million senior notes (“the notes”) at par value, with a coupon rate of 6.125% due December 15, 2020. The notes pay interest semi-annually on June 15 and December 15. Net deferred financing costs of $13,896 have been included as an offset in the balance of the notes in the financial statements and are being amortized over the term of the notes.

The fair market value of the notes as at June 30, 2014 was $609.0 million.

(c)	Entrusted loan

In November 2010, Eastern Dragon, HSBC Bank (China) and Qinghai Dachaidan Mining Ltd (“QDML”), our 90% owned subsidiary, entered into a RMB 12.0 million ($1,950) entrusted loan agreement, which has been increased to RMB 720.0 million ($117,020) through a series of amendments.

Under the terms of the entrusted loan, QDML with its own funds entrusts HSBC Bank (China) to provide a loan facility in the name of QDML to Eastern Dragon. The loan can be drawn down in tranches. Each drawdown bears interest fixed at the prevailing lending rate stipulated by the People’s Bank of China on the date of drawdown. Each draw down has a term of three months and can be rolled forward at the discretion of QDML. The interest rate on this loan as at June 30, 2014 was 4.59%.

As at June 30, 2014, RMB 643.2 million ($104,530) had been drawn under the entrusted loan.

The entrusted loan has been recorded on a net settlement basis.

Eldorado Gold Corporation

Notes to the unaudited condensed consolidated financial statements

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

6.	Share capital

Eldorado’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 June 30, 2014 there were no non-voting common shares outstanding (December 31, 2013 – none).

Voting common shares	Number of Shares		Total $

At January 1, 2014		716,216,690		5,314,589
Common shares issued for deferred phantom units		31,920		224
At June 30, 2014		716,248,610		5,314,813

7.	Share-based payments

(a)	Share option plans

Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:

	2014
	Weighted average exercise price Cdn$		Number of options
At January 1,		13.20		16,753,421
Granted		7.82		6,210,824
Exercised		-		-
Forfeited		12.25		(845,322	)
At June 30,		11.72		22,118,923

At June 30, 2014, 16,040,895 share options (June 30, 2013 – 12,914,273) with a weighted average exercise price of Cdn$12.89 (June 30, 2013 – Cdn$13.17) had vested and were exercisable.

Share based compensation expense related to share options for the quarter ended June 30, 2014 was $2,096 (YTD – $7,077).

(b)	Restricted share unit plan

A total of 877,753 restricted share units (“RSUs”) at a grant-date fair value of Cdn$7.84 per unit were granted during the period ended June 30, 2014 under the Company’s RSU plan and 292,137 RSUs were exercisable as at June 30, 2014.

The fair value of each RSU issued is determined as the closing share price at grant date. The current maximum number of common shares authorized for issue under the RSU plan is 5,000,000.

Eldorado Gold Corporation

Notes to the unaudited condensed consolidated financial statements

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

7.	Share-based payments (continued)

A summary of the status of the restricted share unit plan and changes during the quarter ended June 30, 2014 is as follows:

	Total RSUs
Balance at December 31, 2013		774,845
RSUs Granted		877,753
Redeemed		(364,140	)
Forfeited		-
Balance at June 30, 2014		1,288,458

As at June 30, 2014, 1,288,458 common shares purchased by the Company remain held in trust in connection with this plan. At the end of the period, 460,885 restricted share units are fully vested and exercisable. These shares purchased and held in trust have been included in treasury stock in the balance sheet.

Restricted share units expense for the period ended June 30, 2014 was $2,939 (YTD – $4,673).

(c)	Deferred share units plan

At June 30, 2014, 246,655 deferred share units (“DSUs”) were outstanding with a value of $1,886, which is included in accounts payable and accrued liabilities.

Compensation expense related to the DSUs was $246 for the period ended June 30, 2014 (YTD – $525).

8.	Fair value of financial instruments

Fair values are determined directly by reference to published price quotations in an active market, when available, or by using a valuation technique that uses inputs observed from relevant markets.

The three levels of the fair value hierarchy are described below:

·	Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

·	Level 2 – Inpts 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).

The only assets measured at fair value as at June 30, 2014 are marketable securities. No liabilities are measured at fair value on a recurring basis as at June 30, 2014.

The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in Level 1. Instruments included in Level 1 comprise primarily publicly-traded equity investments classified as held-for-trading securities or available-for-sale securities.

With the exception of the fair market value of our senior notes (note 5b), all carrying amounts of financial instruments approximate their fair value.

Eldorado Gold Corporation

Notes to the unaudited condensed consolidated financial statements

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

9.	Supplementary cash flow information

	Three months ended June 30,						Six months ended June 30,
	2014 $			2013 $			2014 $			2013 $

Changes in non-cash working capital
Accounts receivable and other		(4,449	)		(20,586	)		(11,055	)		(5,691	)
Inventories		(4,975	)		(12,693	)		4,365			(1,906	)
Accounts payable and accrued liabilities		(19,959	)		(30,154	)		(47,910	)		(28,668	)
Total		(29,383	)		(63,433	)		(54,600	)		(36,265	)

Supplementary cash flow information
Income taxes paid		28,981			29,951			40,333			57,269
Interest paid		17,156			16,923			17,360			17,356

10.	Segment information

Identification of reportable segments

The Company has identified its operating segments based on the internal reports that are reviewed and used by the chief executive officer and the executive management (the chief operating decision makers or CODM) in assessing performance and in determining the allocation of resources.

The CODM considers the business from both a geographic and product perspective and assesses the performance of the operating segments based on measures of profit and loss as well as assets and liabilities. These measures include gross profit (loss), expenditures on exploration, property, plant and equipment and non-current assets, as well as total debt. As at June 30, 2014, Eldorado had six reportable segments based on the geographical location of mining and exploration and development activities.

10.1 Geographical segments

Geographically, the operating segments are identified by country and by operating mine or mine under construction as follows:

·	The Turkey reporting segment includes the Kişladağ and the Efemçukuru mines and exploration activities in Turkey.

·	The China reporting segment includes the Tanjianshan (“TJS”), Jinfeng and White Mountain mines, the Eastern Dragon project and exploration activities in China.

·	The Brazil reporting segment includes the Vila Nova mine, Tocantinzinho project and exploration activities in Brazil.

·	The Greece reporting segment includes the Stratoni mine, the Olympias, Skouries, Perama Hill and Sapes projects and exploration activities in Greece.

·	The Romania reporting segment includes the Certej project and exploration activities in Romania.

·	Other reporting segment includes operations of Eldorado’s corporate office and exploration activities in other countries.

Financial information about each of these operating segments is reported to the CODM on at least a monthly basis.

Eldorado Gold Corporation

Notes to the unaudited condensed consolidated financial statements

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

10.	Segment information (continued)

For the three months ended June 30, 2014

	Turkey		China		Brazil			Greece		Romania		Other			Total
	$		$		$			$		$		$			$
Information about profit and loss
Metal sales from external customers		127,946		120,963		3,851			12,737		-		-			265,497
Production costs		49,704		56,356		5,943			10,521		-		-			122,524
Depreciation		13,179		27,783		928			2,030		-		175			44,095
Gross profit (loss)		65,063		36,824		(3,020	)		186		-		(175	)		98,878

Other material items of income and expense
Exploration costs		566		654		1,526			255		68		821			3,890
Income tax expense (recovery)		13,655		9,517		(406	)		2,855		-		(622	)		24,999

Additions to property, plant and
equipment during the period		23,160		12,995		517			69,944		2,317		52			108,985

For the three months ended June 30, 2013

	Turkey		China		Brazil		Greece			Romania		Other			Total
	$		$		$		$			$		$			$
Information about profit and loss
Metal sales from external customers		141,454		103,653		8,680		13,142			-		-			266,929
Production costs		41,467		54,696		6,060		13,910			-		-			116,133
Depreciation		8,967		21,436		871		3,447			-		513			35,234
Gross profit (loss)		91,020		27,521		1,749		(4,215	)		-		(513	)		115,562

Other material items of income and expense
Exploration costs		2,791		1,602		3,208		26			97		2,516			10,240
Income tax expense		20,345		5,608		859		- 2,370			108		-			24,550

Additions to property, plant and
equipment during the period		50,815		26,580		1,935		36,465			7,338		36			123,169

Eldorado Gold Corporation

Notes to the unaudited condensed consolidated financial statements

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

10.	Segment information (continued)

For the six months ended June 30, 2014

	Turkey		China		Brazil			Greece		Romania		Other			Total
	$		$		$			$		$		$			$
Information about profit and loss
Metal sales from external customers		251,972		245,792		22,496			25,107		-		-			545,367
Production costs		97,521		119,841		19,028			20,919		-		-			257,309
Depreciation		26,017		56,004		3,071			4,160		-		415			89,667
Gross profit (loss)		128,434		69,947		397			28		-		(415	)		198,391

Other material items of income and expense
Exploration costs		1,114		1,119		2,170			646		1,121		1,615			7,785
Income tax expense (recovery)		33,695		19,553		(805	)		5,000		-		-			57,443

Additions to property, plant and
equipment during the period		41,039		20,478		1,879			120,036		5,673		270			189,375

Information about assets and liabilities
Property, plant and equipment (*)		869,346		1,433,258		200,308			2,679,303		622,578		2,121			5,806,914
Goodwill		-		52,514		-			473,782		-		-			526,296
		869,346		1,485,772		200,308			3,153,085		622,578		2,121			6,333,210

Debt		-		16,253		-			-		-		586,104			602,357

For the six months ended June 30, 2013

	Turkey		China		Brazil		Greece			Romania		Other			Total
	$		$		$		$			$		$			$
Information about profit and loss
Metal sales from external customers		339,596		215,468		23,840		26,093			-		-			604,997
Production costs		100,367		106,083		14,561		25,490			-		-			246,501
Depreciation		22,080		41,585		2,107		5,577			-		999			72,348
Gross profit (loss)		217,149		67,800		7,172		(4,974	)		-		(999	)		286,148

Other material items of income and expense
Exploration costs		4,965		2,974		4,481		914			483		4,047			17,864
Income tax expense		52,797		15,436		1,704		125,701			108		56			195,802

Additions to property, plant and
equipment during the period		95,491		49,634		7,524		57,415			11,843		877			222,784

For the year ended December 31, 2013

	Turkey		China		Brazil		Greece		Romania		Other		Total
	$		$		$		$		$		$		$

Information about assets and liabilities
Property, plant and equipment (*)		854,893		1,461,592		201,791		2,546,935		616,906		2,265		5,684,382
Goodwill		-		52,514		-		473,782		-		-		526,296
		854,893		1,514,106		201,791		3,020,717		616,906		2,265		6,210,678

Debt		-		16,402		-		-		-		585,006		601,408

* Net of revenues from sale of production from tailings retreatment

Eldorado Gold Corporation

Notes to the unaudited condensed consolidated financial statements

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

10.	Segment information (continued)

The Turkey and China segments derive their revenues from sales of gold. The Brazil segment derives its revenue from sales of iron ore. The Greece segment derives its revenue from sales of zinc, lead and silver concentrates.

The measure of total debt represents the current and long-term portions of debt.

10.2	Economic dependence

At June 30, 2014, each of our Chinese mines had one major customer, to whom each sells its entire production, as follows:

TJS Mine	Henan Zhongyuan Gold Smelter Factory Co. Ltd.of Zhongjin Gold Holding Co. Ltd.
Jinfeng Mine	China National Gold Group
White Mountain Mine	Refinery of Shandong Humon Smelting Co. Ltd.

10.3	Seasonality/cyclicality of operations

Management does not consider operations to be of a significant seasonal or cyclical nature.