EX-99.1 2 unauditedcondensedconsolid.htm EX-99.1 Document

Exhibit 99.1

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Condensed Consolidated Interim Financial Statements
September 30, 2022 and 2021
(Unaudited)
(Expressed in thousands of U.S. dollars)








Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Financial Position    
As at September 30, 2022 and December 31, 2021
(Unaudited – in thousands of U.S. dollars)
As at
Note
September 30, 2022December 31, 2021
ASSETS
Current assets
Cash and cash equivalents
$241,362 $481,327 
Term deposits
15
65,000 — 
Accounts receivable and other
570,567 68,745 
Inventories
6
191,683 178,163 
568,612 728,235 
Restricted cash
2,005 2,674 
Deferred tax assets15,900 — 
Other assets
109,704 104,023 
Property, plant and equipment
3,622,861 4,003,211 
Goodwill
92,591 92,591 
$4,411,673 $4,930,734 
LIABILITIES & EQUITY
Current liabilities
Accounts payable and accrued liabilities
$148,795 $195,334 
Current portion of lease liabilities4,542 7,228 
Current portion of asset retirement obligations
4,088 4,088 
157,425 206,650 
Debt
7497,315 489,763 
Lease liabilities
12,521 14,895 
Employee benefit plan obligations
9,941 8,942 
Asset retirement obligations
112,256 131,367 
Deferred income tax liabilities
461,797 439,195 
1,251,255 1,290,812 
Equity
Share capital
113,241,189 3,225,326 
Treasury stock
(20,454)(10,289)
Contributed surplus
2,615,382 2,615,459 
Accumulated other comprehensive loss
(45,999)(20,905)
Deficit
(2,629,252)(2,239,226)
Total equity attributable to shareholders of the Company
3,160,866 3,570,365 
Attributable to non-controlling interests
(448)69,557 
3,160,418 3,639,922 
$4,411,673 $4,930,734 
Subsequent events (Note 4)

Approved on behalf of the Board of Directors

    (signed)    John Webster Director         (signed)    George Burns     Director

Date of approval: October 27, 2022




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


Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Operations        
For the three and nine months ended September 30, 2022 and 2021
(Unaudited – in thousands of U.S. dollars except share and per share amounts)            
Three months endedNine months ended
September 30,September 30,
Note2022202120222021
Revenue
  Metal sales8$217,698 $238,441 $625,817 $696,283 
Cost of sales
  Production costs123,486 110,180 337,362 331,540 
  Depreciation and amortization61,294 50,720 164,846 154,229 
184,780 160,900 502,208 485,769 
Earnings from mine operations32,918 77,541 123,609 210,514 
Exploration and evaluation expenses5,001 4,663 15,104 16,552 
Mine standby costs97,982 9,139 30,352 12,842 
General and administrative expenses6,771 7,676 23,796 27,543 
Employee benefit plan expense854 839 3,504 2,204 
Share-based payments expense122,842 1,716 6,840 5,419 
Impairment of property, plant and equipment
4
29,297 — 394,723 — 
Write-down (recovery) of assets1,090 38 23,543 (392)
Foreign exchange loss (gain)458 (605)(8,677)(6,827)
(Loss) earnings from operations(21,377)54,075 (365,576)153,173 
Other income103,600 1,732 7,021 12,666 
Finance costs10(9,293)(41,019)(35,202)(66,851)
(Loss) earnings from continuing operations before income tax(27,070)14,788 (393,757)98,988 
Income tax expense27,427 5,627 66,481 45,170 
Net (loss) earnings from continuing operations(54,497)9,161 (460,238)53,818 
Net loss from discontinued operations, net of tax— (60,761)— (149,920)
Net loss for the period$(54,497)$(51,600)$(460,238)$(96,102)
Attributable to:
Shareholders of the Company(50,486)(52,220)(390,026)(96,018)
Non-controlling interests(4,011)620 (70,212)(84)
Net loss for the period$(54,497)$(51,600)$(460,238)$(96,102)
(Loss) earnings attributable to shareholders of the Company
Continuing operations(50,486)8,541 (390,026)53,902 
Discontinued operations— (60,761)— (149,920)
$(50,486)$(52,220)$(390,026)$(96,018)
Weighted average number of shares outstanding (thousands)
Basic11183,783 182,447 183,313 179,556 
Diluted11183,783 183,948 183,313 181,674 
Net loss per share attributable to shareholders of the Company:
Basic loss per share$(0.27)$(0.29)$(2.13)$(0.53)
Diluted loss per share$(0.27)$(0.29)$(2.13)$(0.53)
Net (loss) earnings per share attributable to shareholders of the Company - Continuing operations:
Basic (loss) earnings per share$(0.27)$0.05 $(2.13)$0.30 
Diluted (loss) earnings per share$(0.27)$0.05 $(2.13)$0.30 
The accompanying notes are an integral part of these condensed consolidated interim financial statements.


Eldorado Gold Corporation                        
Condensed Consolidated Interim Statements of Comprehensive (Loss) Income
For the three and nine months ended September 30, 2022 and 2021
(Unaudited – in thousands of U.S. dollars)                            
Three months endedNine months ended
September 30,September 30,
2022202120222021
Net loss for the period$(54,497)$(51,600)$(460,238)$(96,102)
Other comprehensive (loss) income:
Items that will not be reclassified to earnings or loss:
Change in fair value of investments in marketable securities, net of tax(15,279)3,048 (23,544)3,018 
Actuarial losses on employee benefit plans, net of tax(1,042)(277)(1,550)(247)
Total other comprehensive (loss) income for the period(16,321)2,771 (25,094)2,771 
Total comprehensive loss for the period$(70,818)$(48,829)$(485,332)$(93,331)
Attributable to:
Shareholders of the Company
(66,807)(49,449)(415,120)(93,247)
Non-controlling interests
(4,011)620 (70,212)(84)
$(70,818)$(48,829)$(485,332)$(93,331)





























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


Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Cash Flows        
For the three and nine months ended September 30, 2022 and 2021
(Unaudited – in thousands of U.S. dollars)
Three months endedNine months ended
September 30,September 30,
Note2022202120222021
Cash flows generated from (used in):
Operating activities
Net (loss) earnings for the period from continuing operations$(54,497)$9,161 $(460,238)$53,818 
Adjustments for:
Depreciation and amortization62,074 51,178 166,999 155,714 
Finance costs9,293 41,019 35,202 66,851 
Interest income(1,480)(413)(2,764)(1,888)
Unrealized foreign exchange loss (gain)3,785 (945)19 (2,634)
Income tax expense27,427 5,627 66,481 45,170 
(Gain) loss on disposal of assets(1,492)(180)(2,307)46 
Gain on disposal of mining licenses— — — (7,046)
Write-down (recovery) of assets1,090 38 23,543 (392)
Share-based payments expense
12
2,842 1,716 6,840 5,419 
Employee benefit plan expense854 839 3,504 2,204 
Impairment of property, plant and equipment
4
29,297 — 394,723 — 
79,193 108,040 232,002 317,262 
Property reclamation payments(1,282)(515)(2,075)(1,622)
Employee benefit plan (payments) receipt(315)5,639 (2,988)5,118 
Income taxes paid(24,038)(12,561)(76,605)(64,574)
Interest received1,480 413 2,764 1,888 
Changes in non-cash working capital
13
(2,524)4,094 (38,405)(4,819)
Net cash generated from operating activities of continuing operations52,514 105,110 114,693 253,253 
Net cash generated from (used in) operating activities of discontinued operations— 692 — (4,048)
Investing activities
Purchase of property, plant and equipment(73,980)(64,441)(209,159)(200,035)
Acquisition of subsidiary, net of $4,311 cash received— — — (19,336)
Proceeds from the sale of property, plant and equipment1,637 966 3,278 2,277 
Proceeds from sale of mining licenses— — — 5,000 
Purchase of marketable securities and investment in debt securities(20,163)(27,060)(20,163)(27,060)
Value added taxes related to mineral property expenditures, net(6,056)(11,971)(24,267)(16,170)
(Increase) decrease in term deposits(5,000)1,000 (65,000)59,034 
Increase in restricted cash— (432)— (536)
Net cash used in investing activities of continuing operations(103,562)(101,938)(315,311)(196,826)
Net cash used in investing activities of discontinued operations— (911)— (2,348)
Financing activities
Issuance of common shares, net of issuance costs84 240 13,743 14,374 
Contributions from non-controlling interests— — 207 409 
Proceeds from borrowings— 500,000 — 500,000 
Repayment of borrowings— (433,953)— (517,286)
Debt redemption premium paid — (21,400)— (21,400)
Interest paid(16,226)(7,634)(33,945)(23,117)
Loan financing costs— (7,535)— (7,535)
Principal portion of lease liabilities (1,406)(2,802)(5,383)(7,813)
Purchase of treasury stock— — (13,969)— 
Net cash (used in) generated from financing activities of continuing operations(17,548)26,916 (39,347)(62,368)
Net cash used in financing activities of discontinued operations— (12)— (36)
Net (decrease) increase in cash and cash equivalents(68,596)29,857 (239,965)(12,373)
Cash and cash equivalents - beginning of period309,958 409,732 481,327 451,962 
Cash in disposal group held for sale— (273)— (273)
Cash and cash equivalents - end of period $241,362 $439,316 $241,362 $439,316 
The accompanying notes are an integral part of these condensed consolidated interim financial statements.


Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Changes in Equity    
For the three and nine months ended September 30, 2022 and 2021
(Unaudited – in thousands of U.S. dollars)
Three months endedNine months ended
September 30,September 30,
Note2022202120222021
Share capital
Balance beginning of period$3,240,952 $3,224,830 $3,225,326 $3,144,644 
Shares issued upon exercise of share options174 219 4,117 1,617 
Shares issued upon exercise of performance share units (PSU's)— 30 2,256 1,202 
Transfer of contributed surplus on exercise of options73 87 1,665 635 
Shares issued on acquisition of subsidiary— — — 65,647 
Shares issued upon exercise of warrants— — 213 — 
Shares issued to the public, net of share issuance costs(10)7 7,612 11,428 
Balance end of period
11
$3,241,189 $3,225,173 $3,241,189 $3,225,173 
Treasury stock
Balance beginning of period$(20,454)$(10,295)$(10,289)$(11,452)
Purchase of treasury stock— — (13,969)— 
Shares redeemed upon exercise of restricted share units (RSU's)— 6 3,804 1,163 
Balance end of period$(20,454)$(10,289)$(20,454)$(10,289)
Contributed surplus
Balance beginning of period$2,612,463 $2,639,288 $2,615,459 $2,638,008 
Share-based payment arrangements2,992 2,422 7,648 6,579 
Shares redeemed upon exercise of restricted share units— (6)(3,804)(1,163)
Shares redeemed upon exercise of performance share units— (30)(2,256)(1,202)
Transfer to share capital on exercise of options(73)(87)(1,665)(635)
Balance end of period$2,615,382 $2,641,587 $2,615,382 $2,641,587 
Accumulated other comprehensive loss
Balance beginning of period$(29,678)$(30,297)$(20,905)$(30,297)
Other comprehensive (loss) income for the period attributable to shareholders of the Company(16,321)2,771 (25,094)2,771 
Balance end of period$(45,999)$(27,526)$(45,999)$(27,526)
Deficit
Balance beginning of period$(2,578,766)$(2,147,004)$(2,239,226)$(2,103,206)
Loss attributable to shareholders of the Company(50,486)(52,220)(390,026)(96,018)
Balance end of period$(2,629,252)$(2,199,224)$(2,629,252)$(2,199,224)
Total equity attributable to shareholders of the Company$3,160,866 $3,629,721 $3,160,866 $3,629,721 
Non-controlling interests
Balance beginning of period$3,563 $40,578 $69,557 $40,873 
(Loss) earnings attributable to non-controlling interests(4,011)620 (70,212)(84)
Contributions from non-controlling interests— — 207 409 
Balance end of period$(448)$41,198 $(448)$41,198 
Total equity$3,160,418 $3,670,919 $3,160,418 $3,670,919 
The accompanying notes are an integral part of these condensed consolidated interim financial statements.


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2022 and 2021
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
1. General Information
Eldorado Gold Corporation (individually or collectively with its subsidiaries, as applicable, “Eldorado” or the “Company”) is a gold and base metals mining, development, and exploration company. The Company has mining operations, ongoing development projects and exploration in Turkiye, Canada, Greece, and Romania.
Eldorado is a public company listed on the Toronto Stock Exchange (“TSX”) and the New York Stock Exchange (“NYSE”) and is incorporated under the Canada Business Corporations Act.
The Company's head office, principal address and records are located at 550 Burrard Street, Suite 1188, Vancouver, British Columbia, Canada, V6C 2B5.

2. Basis of preparation
(a)Statement of compliance
These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34 ‘Interim Financial Reporting’. They do not include all of the information and footnotes required by 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 audited annual consolidated financial statements as at and for the year ended December 31, 2021.
The same accounting policies were used in the preparation of these unaudited condensed consolidated interim financial statements as for the most recent audited annual consolidated financial statements and reflect all the adjustments necessary for fair presentation in accordance with IFRS for the interim periods presented.
These unaudited condensed consolidated interim financial statements were authorized for issue by the Company’s Board of Directors on October 27, 2022.
(b)Critical accounting estimates and judgements
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.
Significant judgements made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty are the same as those that applied to the audited annual consolidated financial statements as at and for the year ended December 31, 2021.

3. Significant accounting policies
Adoption of new accounting standards
A number of amendments to standards were effective for annual periods beginning on or after January 1, 2022, including amendments to IAS 16, IAS 37 and IFRS 3. There was no material impact on the Company's financial statements from the adoption of these amendments.

(1)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2022 and 2021
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
4. Impairment of Certej Project
On October 26, 2022, the Company entered into a share purchase agreement to sell the Certej project, a non-core gold asset in the Romania segment. The sale is subject to certain closing conditions, including required regulatory approvals, and is expected to close in late 2022 or early 2023.
Consideration is expected to include:
•$18,000 cash upon closing of the transaction;
•Deferred consideration of $12,000 in cash, with $5,000 and $7,000 payable 24 months and 36 months, respectively, following the receipt of the building permit ("Deferred Consideration"); and
•The Company will retain a 1.5% net smelter return ("NSR") royalty on the project.
In March 2022, the Company recorded impairment of $365,426 ($345,386 net of deferred tax) on the Certej project to recognize the mineral properties and capitalized evaluation at their estimated fair value, based on a plan to sell the asset. The non-recurring fair value measurement of $52,000 was categorized as a Level 3 fair value based on the expected consideration of a sale, less estimated costs of disposal. At September 30, 2022, the fair value of the disposal group was reduced to $17,000, which reflects the cash consideration, less estimated costs of disposal. An impairment of $29,297 was recognized as a result of the agreement which was indicative of a reduction in fair value and changes in working capital.

5. Accounts receivable and other
September 30, 2022December 31, 2021
Trade receivables$26,760 $23,020 
Value added tax and other taxes recoverable13,610 17,782 
Other receivables and advances11,316 9,946 
Prepaid expenses and deposits18,742 17,834 
Investment in marketable securities139 163 
$70,567 $68,745 

6. Inventories
September 30, 2022December 31, 2021
Ore stockpiles$8,668 $10,097 
In-process inventory and finished goods63,805 63,513 
Materials and supplies119,210 104,553 
$191,683 $178,163 


(2)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2022 and 2021
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
7. Debt
September 30, 2022December 31, 2021
Senior notes due 2029, net of unamortized transaction fees of $6,258 (2021 - $6,783) and initial redemption option of $4,291
$498,033 $497,868 
Redemption option derivative asset(718)(8,105)
$497,315 $489,763 

On August 26, 2021, the Company completed an offering of $500 million senior unsecured notes with a coupon rate of 6.25% due September 1, 2029 (the “senior notes”). The senior notes pay interest semi-annually on March 1 and September 1, which began on March 1, 2022.
The senior notes are guaranteed by Eldorado Gold (Netherlands) B.V., SG Resources B.V., Tuprag Metal Madencilik Sanayi ve Ticaret AS, and Eldorado Gold (Quebec) Inc., all wholly-owned subsidiaries of the Company.
The senior notes contain certain redemption features that constitute an embedded derivative asset, which is recognized separately at fair value and is classified as fair value through profit and loss. The decreases in fair value in the three and nine months ended September 30, 2022, respectively, are $10 and $7,387, which are recognized in finance costs.
The senior notes contain covenants that restrict, among other things, distributions in certain circumstances and sales of certain material assets, in each case, subject to certain conditions. The Company is in compliance with these covenants at September 30, 2022.
The fair market value of the senior notes as at September 30, 2022 is $379,350.
In September 2022, the $250 million amended and restated fourth senior secured credit facility (“Fourth ARCA”) was amended to, replace LIBOR with a benchmark rate based on the Secured Overnight Financing Rate (“SOFR”); permit the revolving credit facility to be used to provide a bank-issued letter of credit in favour of the Greek banks under the Mandate Letter in respect of the expected development and construction of the Skouries project in Northern Greece (the "Project Letter of Credit"); and introduce Euro availability for the Project Letter of Credit.

(3)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2022 and 2021
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
8. Revenue
For the three months ended September 30, 2022, revenue from contracts with customers by product and segment was as follows:
TurkiyeCanadaGreeceTotal
Gold revenue - doré$65,073 $72,773 $— $137,846 
Gold revenue - concentrate34,972 — 24,545 59,517 
Silver revenue - doré636 320 — 956 
Silver revenue - concentrate586 — 3,997 4,583 
Lead concentrate— — 4,147 4,147 
Zinc concentrate— — 15,023 15,023 
Revenue from contracts with customers$101,267 $73,093 $47,712 $222,072 
Loss on revaluation of derivatives in trade receivables - gold(1,261)— (1,052)(2,313)
Loss on revaluation of derivatives in trade receivables - other metals— — (2,061)(2,061)
$100,006 $73,093 $44,599 $217,698 

For the three months ended September 30, 2021, revenue from contracts with customers by product and segment were as follows:
TurkiyeCanadaGreeceTotal
Gold revenue - doré$91,600 $66,449 $— $158,049 
Gold revenue - concentrate41,987 — 21,993 63,980 
Silver revenue - doré887 334 — 1,221 
Silver revenue - concentrate839 — 5,845 6,684 
Lead concentrate— — 7,078 7,078 
Zinc concentrate— — 2,355 2,355 
Revenue from contracts with customers$135,313 $66,783 $37,271 $239,367 
(Loss) gain on revaluation of derivatives in trade receivables - gold(961)— 408 (553)
Loss on revaluation of derivatives in trade receivables - other metals— — (373)(373)
$134,352 $66,783 $37,306 $238,441 
(4)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2022 and 2021
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
8. Revenue (continued)
For the nine months ended September 30, 2022, revenue from contracts with customers by product and segment were as follows:
TurkiyeCanadaGreeceTotal
Gold revenue - doré$171,214 $221,949 $— $393,163 
Gold revenue - concentrate116,907 — 59,474 176,381 
Silver revenue - doré2,112 1,036 — 3,148 
Silver revenue - concentrate2,301 — 17,047 19,348 
Lead concentrate— — 13,871 13,871 
Zinc concentrate— — 25,668 25,668 
Revenue from contracts with customers$292,534 $222,985 $116,060 $631,579 
Loss on revaluation of derivatives in trade receivables - gold(2,225)— (2,303)(4,528)
Loss on revaluation of derivatives in trade receivables - other metals— — (1,234)(1,234)
$290,309 $222,985 $112,523 $625,817 

For the nine months ended September 30, 2021, revenue from contracts with customers by product and segment were as follows:
TurkiyeCanadaGreeceTotal
Gold revenue - doré$256,496 $181,156 $— $437,652 
Gold revenue - concentrate123,836 — 64,814 188,650 
Silver revenue - doré2,445 1,120 — 3,565 
Silver revenue - concentrate3,274 — 20,082 23,356 
Lead concentrate— — 20,748 20,748 
Zinc concentrate— — 23,529 23,529 
Revenue from contracts with customers$386,051 $182,276 $129,173 $697,500 
(Loss) gain on revaluation of derivatives in trade receivables - gold(411)— 713 302 
Loss on revaluation of derivatives in trade receivables - other metals— — (1,519)(1,519)
$385,640 $182,276 $128,367 $696,283 

(5)

Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2022 and 2021
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

9. Mine standby costs
Three months ended September 30,Nine months ended September 30,
2022 2021 2022 2021 
Stratoni$4,841 $7,168 $21,676 $7,168 
Skouries2,248 1,387 6,292 4,082 
Other mine standby costs893 584 2,384 1,592 
$7,982 $9,139 $30,352 $12,842 

10. Other income and finance costs
Three months ended September 30,Nine months ended September 30,
(a) Other income2022202120222021
Gain (loss) on disposal of assets$1,492 $180 $2,307 $(46)
Gain on disposal of mining licenses— — — 7,046 
Interest and other income2,108 1,552 4,714 5,666 
$3,600 $1,732 $7,021 $12,666 

Three months ended September 30,Nine months ended September 30,
(b) Finance costs2022202120222021
Interest cost on senior notes due 2029$7,869 $3,143 $23,516 $3,143 
Interest cost on senior secured notes due 2024— 4,625 — 17,015 
Interest cost on term loan— 569 — 2,456 
Other interest and financing costs496 916 1,465 3,893 
Senior secured notes redemption premium— 21,400 — 21,400 
Amortization of discount and transaction costs of senior notes and TARCA due to early redemption— 9,701 — 9,701 
Loss (gain) on redemption option derivative (Note 7)
10 (180)7,387 6,677 
Interest expense on lease liabilities358 494 1,153 1,504 
Asset retirement obligation accretion560 351 1,681 1,062 
$9,293 $41,019 $35,202 $66,851 


(6)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2022 and 2021
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
11. Share capital and (loss) earnings per share
(a) Share capital     
2022
2021
Voting common sharesNumber of SharesTotalNumber of SharesTotal
Balance at January 1,182,673,118 $3,225,326 174,931,381 $3,144,644 
Shares issued upon exercise of share options815,312 4,117 313,671 1,617 
Shares issued on redemption of performance share units528,166 2,256 514,010 1,202 
Estimated fair value of share options exercised transferred from contributed surplus— 1,665 — 635 
Shares issued on acquisition of QMX— — 5,788,187 65,647 
Shares issued upon exercise of warrants19,037 213 — — 
Flow-through and other shares issued, net of issuance costs and premium694,500 7,612 1,100,000 11,428 
Balance at September 30,
184,730,133 $3,241,189 182,647,249 $3,225,173 

On March 14, 2022, the Company completed a private placement of 442,700 common shares at a price of CDN $18.07 per share for proceeds of CDN $8,000 ($6,378), which will be used to fund continued exploration. On the same date, the Company also completed a private placement of 251,800 common shares at a price of CDN $15.88 per share for proceeds of CDN $4,000 ($3,189), which will be used to fund the Triangle deposit ramp development. The shares will qualify as flow-through shares for Canadian tax purposes and were issued at a premium of CDN $4.19 and CDN $2.00 per share, respectively, to the closing market price of the Company’s common shares at the date of issue. The premium of $1,880 was recognized in accounts payable and accrued liabilities and will be recognized in other income once required expenditures are incurred and related tax benefits are renounced.
In March 2022, the warrant holders of Eldorado Gold (Quebec) Inc. (formerly QMX Gold Corporation) exercised 1,250,000 warrants that were issued and outstanding prior to the closing of the arrangement between the Company and QMX Gold Corporation on April 7, 2021, which resulted in the Company issuing 19,037 common shares in April 2022 in relation to this exercise. The remaining 500,000 warrants outstanding of Eldorado Gold (Quebec) Inc. expired during the first quarter of 2022.









(7)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2022 and 2021
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
11. Share capital and (loss) earnings per share (continued)
(b) (Loss) earnings per share
The weighted average number of common shares for the purposes of diluted (loss) earnings per share reconciles to the weighted average number of common shares used in the calculation of basic (loss) earnings per share as follows:
Three months ended September 30,Nine months ended September 30,
2022202120222021
Weighted average number of common shares used in the calculation of basic (loss) earnings per share
183,783,392 182,446,967 183,312,983 179,555,500 
Dilutive impact of share options— 899,910 — 1,141,278 
Dilutive impact of restricted share units and restricted share units with performance criteria— 159,336 — 288,667 
Dilutive impact of performance share units— 441,474 — 688,388 
Weighted average number of common shares used in the calculation of diluted (loss) earnings per share
183,783,392 183,947,687 183,312,983 181,673,833 

As at September 30, 2022, 2,800,673 options (September 30, 2021 – 2,449,043) were excluded from the dilutive weighted-average number of common shares calculation because their effect would have been anti-dilutive.
For the three months ended September 30, 2022, 266,526 share options (three months ended September 30, 2021 – 899,910), 176,683 RSU's and RSU's with performance criteria (three months ended September 30, 2021 – 159,336), and no PSU's (three months ended September 30, 2021 – 441,474) were anti-dilutive. For the nine months ended September 30, 2022, 578,655 share options (nine months ended September 30, 2021 – 1,141,278 share options), 286,680 RSU's and RSU's with performance criteria (nine months ended September 30, 2021 – 288,667), and 49,809 PSU's (nine months ended September 30, 2021 – 688,388) were anti-dilutive.

12. Share-based payment arrangements
Share-based payments expense consists of:
Three months ended September 30,Nine months ended September 30,
2022202120222021
Share options$1,145 $808 $3,272 $2,203 
Restricted shares with no performance criteria425 372 1,194 974 
Restricted shares with performance criteria842 1,040 1,701 2,710 
Performance shares580 204 1,480 693 
Deferred units(150)(708)(807)(1,161)
$2,842 $1,716 $6,840 $5,419 

(8)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2022 and 2021
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
13. Supplementary cash flow information
Three months ended September 30,Nine months ended September 30,
2022202120222021
Changes in non-cash working capital:
Accounts receivable and other$6,043 $(5,471)$7,576 $(540)
Inventories4,145 (349)(17,371)(7,272)
Accounts payable and accrued liabilities(12,712)9,914 (28,610)2,993 
$(2,524)$4,094 $(38,405)$(4,819)

14. Commitments and Contractual Obligations
Significant changes to the Company's commitments and contractual obligations as at September 30, 2022 compared to December 31, 2021 include:
Within 1 Year2 Years3 Years4 Years5 YearsOver 5 yearsTotal
Purchase obligations and other commitments$28,715 $7,086 $2,155 $— $— $— $37,956 

Purchase obligations relate primarily to operating costs at all mines and capital projects at Kisladag and Skouries.

15. Fair value measurements
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 – 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).


(9)


Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2022 and 2021
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
15. Fair value measurements (continued)
Assets measured at fair value as at September 30, 2022 include marketable securities of $50,933 (December 31, 2021 – $53,352), comprised of publicly-traded equity investments classified as fair value through other comprehensive income, and investments in debt securities of $6,543 (December 31, 2021 – $6,660), comprised of publicly-traded debt securities classified as fair value through other comprehensive income. At September 30, 2022, assets measured at fair value also include settlement receivables of $26,694 (December 31, 2021 – $28,523) arising from provisional pricing in contracts for the sale of metals in concentrate classified as fair value through profit and loss and a derivative asset of $718 (December 31, 2021 – $8,105), related to the redemption options associated with the senior notes classified as fair value through profit and loss, and Turkish Lira deposits, included in term deposits, of $65,000 (December 31, 2021 – nil), which are protected from the weakening of the Turkish Lira against the U.S. dollar and measured at fair value through profit and loss. In September 2022 the Company entered into zero-cost collars to reduce the risk associated with fluctuations of the Euro and Canadian dollar at the Olympias mine and Lamaque operations, respectively. These derivatives set a band within which the Company expects to be able to protect against currency movements, either above or below specific strike prices. Based on the observable forward foreign exchange rates being within the strike price bands, the zero-cost collars are valued at nil as at September 30, 2022 (December 31, 2021 – nil). Changes in the fair value of settlement receivables are recorded in revenue, changes in the fair value of the redemption option derivative asset and the currency derivative instruments are recorded in finance costs and there were no changes in the fair value of the Turkish Lira deposits in the nine months ended September 30, 2022. Valuation of the contingent consideration on the May 2020 acquisition of interest in Hellas Gold is measured at fair value, with any changes in fair value recorded in profit or loss. No other liabilities are measured at fair value on a recurring basis as at September 30, 2022.
The fair value of financial instruments traded in active markets is based on quoted market prices at the date of the statement of financial position. 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. The Company’s marketable securities and investments in debt securities are included in Level 1. Instruments included in Level 2 comprise settlement receivables, the redemption option derivative asset, the Turkish Lira deposits, the fair market value of the Company’s senior notes (Note 7), and the currency derivative instruments. The fair value of settlement receivables is determined based on forward metal prices for the quotational period; the fair value of the Company’s redemption option derivative asset is based on models using observable interest rate inputs; the fair value of the Turkish Lira deposits is based on an observable foreign exchange rate; and the fair value of the Company’s senior notes is based on observable prices in inactive markets. The fair value of the currency derivative instruments is based on observable forward foreign exchange rates. The fair value measurement of contingent consideration related to the acquisition of the minority interest in Hellas Gold is categorized as a Level 3 fair value. For all other financial instruments, carrying amounts approximate fair value.











(10)

Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2022 and 2021
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

16. Financial risk management
Eldorado’s activities expose it to a variety of financial risks. Significant changes to the Company’s financial risks and overall risk management program as at September 30, 2022 are outlined below.
Credit risk
The Company manages credit risk by entering into business arrangements with high credit-quality counterparties, limiting the amount of exposure to each counterparty and monitoring the financial condition of counterparties. The Company also monitors the credit ratings of all financial institutions in which it holds cash and investments. At September 30, 2022, the Turkish Lira deposits equivalent to $65,000 of U.S. dollars are held in a banking institution operating in Turkiye with lower credit ratings as compared to other financial institutions at which the Company holds cash and investments. This, combined with recent downgrades in Turkiye’s sovereign credit rating, expose the Company to greater credit risk.
Foreign Exchange Risk
The Company operates principally in Turkiye, Canada, Greece, and Romania, and is therefore exposed to foreign exchange risk arising from transactions denominated in foreign currencies. Foreign exchange risk arises when future commercial transactions or recognized assets or liabilities are denominated in a currency that is not the entity’s functional currency.
In September 2022 the Company entered into zero-cost collars to reduce the risk associated with fluctuations of the Euro and Canadian dollar at the Olympias mine and Lamaque operations, respectively. These derivatives set a band within which the Company expects to be able to protect against currency movements, either above or below specific strike prices.


(11)

Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2022 and 2021
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

17. 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 consider the business from both a geographic and product perspective and assess the performance of the operating segments based on measures of profit and loss as well as assets and liabilities. These measures include earnings (loss) from mine operations, expenditures on exploration, property, plant and equipment and non-current assets, as well as total debt. As at September 30, 2022, Eldorado had five reportable segments based on the geographical location of mining and exploration and development activities.
Geographical segments
Geographically, the operating segments are identified by country and by operating mine. The Turkiye reporting segment includes the Kisladag and the Efemcukuru mines and exploration activities in Turkiye. The Canada reporting segment includes the Lamaque Triangle mine and exploration activities in Canada. The Greece reporting segment includes the Olympias mine, the Skouries and Perama Hill projects and exploration activities in Greece. The Greece segment also includes the Stratoni mine and mill, which transitioned to care and maintenance during 2022. The Romania reporting segment includes the Certej project and exploration activities in Romania. Other reporting segment includes operations of Eldorado’s corporate offices.
Financial information about each of these operating segments is reported to the CODM on a monthly basis. The mines in the Turkiye reporting segment share similar economic characteristics and have been aggregated accordingly.

As at and for the three months ended September 30, 2022
TurkiyeCanadaGreeceRomaniaOtherTotal
Earnings and loss information
Revenue$100,006 $73,093 $44,599 $— $— $217,698 
Production costs50,385 28,835 44,266 — — 123,486 
Depreciation and amortization27,677 16,752 16,865 — — 61,294 
Earnings (loss) from mine operations$21,944 $27,506 $(16,532)$— $— $32,918 
Other significant items of income and expense
Impairment (Note 4)
$— $— $— $29,297 $— $29,297 
Write-down of assets355 — 54 — 681 1,090 
Exploration and evaluation expenses1,000 2,551 159 552 739 5,001 
Mine standby costs— — 7,965 17 — 7,982 
Income tax expense12,737 3,277 11,413 — — 27,427 
Capital expenditure information
Additions to property, plant and equipment during the period*$29,995 $22,160 $19,918 $— $1,031 $73,104 
* Presented on an accrual basis; excludes asset retirement adjustments.

(12)

Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2022 and 2021
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

17. Segment information (continued)
As at and for the three months ended September 30, 2021TurkiyeCanadaGreeceRomaniaBrazil**OtherTotal
Earnings and loss information
Revenue$134,352 $66,783 $37,306 $— $— $— $238,441 
Production costs55,465 25,298 29,417 — — — 110,180 
Depreciation and amortization25,781 15,127 9,812 — — — 50,720 
Earnings (loss) from mine operations$53,106 $26,358 $(1,923)$— $— $— $77,541 
Other significant items of income and expense
Write-down of assets$38 $— $— $— $— $— $38 
Exploration and evaluation expenses967 2,262 121 858 — 455 4,663 
Mine standby costs— — 9,119 20 — — 9,139 
Income tax (recovery) expense(670)7,492 (1,857)662 — — 5,627 
Loss from discontinued operations, net of tax attributable to shareholders of the Company— — — — (60,761)— (60,761)
Capital expenditure information
Additions to property, plant and equipment during the period*$33,216 $25,531 $15,290 $— $— $3,188 $77,225 
* Presented on an accrual basis; excludes asset retirement adjustments. Excludes capital expenditure at discontinued operations.
** The Brazil reporting segment included the Tocantinzinho project and exploration activities up until the sale of Tocantinzinho in October 2021.


















(13)

Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2022 and 2021
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

17. Segment information (continued)
As at and for the nine months ended September 30, 2022TurkiyeCanadaGreeceRomaniaOtherTotal
Earnings and loss information
Revenue$290,309 $222,985 $112,523 $— $— $625,817 
Production costs143,107 87,487 106,768 — — 337,362 
Depreciation and amortization74,455 51,765 38,626 — — 164,846 
Earnings (loss) from mine operations$72,747 $83,733 $(32,871)$— $— $123,609 
Other significant items of income and expense
Impairment (Note 4)
$— $— $— $394,723 $— $394,723 
Write-down (recovery) of assets24,361 — (1,499)— 681 23,543 
Exploration and evaluation expenses2,438 8,114 540 2,282 1,730 15,104 
Mine standby costs— — 30,298 54 — 30,352 
Income tax expense (recovery)49,787 22,214 30,419 (20,039)(15,900)66,481 
Capital expenditure information
Additions to property, plant and equipment during the period*$96,800 $59,882 $54,573 $33 $9,670 $220,958 
Information about assets and liabilities
Property, plant and equipment$837,064 $712,204 $2,029,784 $28,337 $15,472 $3,622,861 
Goodwill— 92,591 — — — 92,591 
Debt$— $— $— $— $497,315 $497,315 
* Presented on an accrual basis; excludes asset retirement adjustments.
(14)

Eldorado Gold Corporation                                
Notes to the Condensed Consolidated Interim Financial Statements    
For the three and nine months ended September 30, 2022 and 2021
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)

17. Segment information (continued)
As at and for the nine months ended September 30, 2021TurkiyeCanadaGreeceRomaniaBrazil**OtherTotal
Earnings and loss information
Revenue$385,640 $182,276 $128,367 $— $— $— $696,283 
Production costs142,880 72,321 116,339 — — — 331,540 
Depreciation and amortization70,399 46,406 37,424 — — — 154,229 
Earnings (loss) from mine operations$172,361 $63,549 $(25,396)$— $— $— $210,514 
Other significant items of income and expense
Recovery of assets$(392)$— $— $— $— $— $(392)
Exploration and evaluation expenses6,888 4,922 419 2,781 — 1,542 16,552 
Mine standby costs— — 12,782 60 — 12,842 
Income tax expense (recovery)42,074 20,190 (18,311)1,217 — — 45,170 
Loss from discontinued operations, net of tax attributable to shareholders of the Company— — — — (149,920)— (149,920)
Capital expenditure information
Additions to property, plant and equipment during the period*$103,207 $64,785 $39,626 $— $— $5,092 $212,710 
* Presented on an accrual basis, excludes asset retirement adjustments. Excludes capital expenditure at discontinued operations.
** The Brazil reporting segment included the Tocantinzinho project and exploration activities up until the sale of Tocantinzinho in October 2021.

For the year ended December 31, 2021TurkiyeCanadaGreeceRomaniaBrazilOtherTotal
Information about assets and liabilities
Property, plant and equipment$841,000 $704,663 $2,018,440 $423,503 $— $15,605 $4,003,211 
Goodwill— 92,591 — — — — 92,591 
Debt$— $— $— $— $— $489,763 $489,763 

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