Consolidated Financial Statements
December 31, 2023 and 2022
(Expressed in thousands of U.S. dollars)
Management’s Responsibility for Financial Reporting
The management of Eldorado Gold Corporation is responsible for the integrity and fair presentation of the
financial information contained in the Consolidated Financial Statements, which reflects amounts based on
management’s best estimates and judgements. The Consolidated Financial Statements have been prepared in
accordance with International Financial Reporting Standards as issued by the International Accounting
Standards Board.
Management is responsible for establishing and maintaining adequate internal control over financial reporting.
Management has established and maintains a system of internal accounting control designed to provide
reasonable assurance that assets are safeguarded from loss or unauthorized use, financial information is
reliable and accurate and transactions are properly recorded and executed in accordance with management’s
authorization. This system includes established policies and procedures, the selection and training of qualified
personnel and an organization providing for appropriate delegation of authority and segregation of
responsibilities. Any system of internal control over financial reporting, no matter how well designed, has
inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable
assurance with respect to financial statement preparation and presentation.
Management has a process in place to evaluate internal control over financial reporting based on the criteria
established by the Committee of Sponsoring Organizations of the Treadway Commission (2013) in Internal
Control - Integrated Framework. Based on this assessment, management determined that as of December 31,
2023, the Company’s internal control over financial reporting was effective and provided reasonable assurance
of the reliability of our financial reporting and preparation of the Consolidated Financial Statements.
KPMG LLP, an independent registered public accounting firm, appointed by the shareholders, has audited the
Company’s Consolidated Financial Statements as of and for the year ended December 31, 2023 in accordance
with the standards of the Public Company Accounting Oversight Board (United States) and has expressed their
opinion in their report titled “Report of Independent Registered Public Accounting Firm”. The effectiveness of the
Company’s internal control over financial reporting as of December 31, 2023 has also been audited by KPMG
LLP, and their opinion is included in their report titled “Report of Independent Registered Public Accounting
Firm”.
(Signed) George Burns
(Signed) Paul Ferneyhough
George Burns
Paul Ferneyhough
President & Chief Executive Officer
Executive Vice President & Chief Financial Officer
February 22, 2024
Vancouver, British Columbia, Canada
\
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of Eldorado Gold Corporation
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated statements of financial position of Eldorado Gold Corporation
and subsidiaries (the Company) as of December 31, 2023 and 2022, the related consolidated statements of
operations, comprehensive income (loss), cash flows, and changes in equity for each of the years then ended,
and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated
financial statements present fairly, in all material respects, the financial position of the Company as of
December 31, 2023 and 2022, and its financial performance and its cash flows for each of the years then
ended, in conformity with International Financial Reporting Standards as issued by the International Accounting
Standards Board.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board
(United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2023,
based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission, and our report dated February 22, 2024 expressed an
unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our
responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a
public accounting firm registered with the PCAOB and are required to be independent with respect to the
Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements
are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to
assess the risks of material misstatement of the consolidated financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test
basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also
included evaluating the accounting principles used and significant estimates made by management, as well as
evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a
reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the
consolidated financial statements that was communicated or required to be communicated to the Audit
Committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial
statements and (2) involved our especially challenging, subjective, or complex judgments. The communication
of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken
as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on
the critical audit matter or on the accounts or disclosures to which it relates.
Evaluation of indicators of impairment or impairment reversal of property, plant and equipment
As discussed in Note 12 to the consolidated financial statements, the carrying value of property, plant and
equipment as of December 31, 2023 was $3,755,559 thousand. As discussed in Notes 3.7 and 4(i), property,
plant and equipment are reviewed each reporting for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. Judgment is applied in assessing whether certain
facts and circumstances are indicators of impairment, and accordingly, require an impairment test to be
performed. The Company considers both external and internal sources of information in assessing whether
there are any indicators that its assets or Cash Generating Units (CGU) may be impaired. The primary external
factors considered are changes in estimated long-term metal prices, changes in laws and regulations and the
Company’s market capitalization relative to its net asset carrying amount. The primary internal factors
considered are the performance of its CGUs against expectations, changes in mineral reserves and resources,
life of mine plans and exploration results.
We identified the evaluation of indicators of impairment or impairment reversal of property, plant and equipment
as a critical audit matter. Significant auditor judgment was required to assess the Company’s determination of
whether various internal and external factors, individually and in aggregate, result in impairment indicators or
impairment reversal. Specifically, complex auditor judgment was required to assess the performance of certain
CGUs against expectations, changes in estimated metal prices and the difference between the Company’s
market capitalization and the carrying value of its net assets.
The following are the primary procedures we performed to address this critical audit matter. We evaluated the
design and tested the operating effectiveness of certain internal controls over the Company’s impairment
indicator assessment process. This included a control over the Company’s assessment of the difference
between its market capitalization and the carrying value of its net assets, performance of certain CGUs against
expectations and changes in estimated metal prices. We analyzed the components of the Company’s market
capitalization reconciliation to the carrying value of its net assets. We evaluated the reasonableness of
management's conclusion with respect to the Company’s assessment of the performance of certain CGUs
against expectations by considering the current and past performance of the CGUs. We involved valuation
professionals with specialized skills and knowledge, who assisted in assessing the long-term metal prices by
comparing to third party data, and by evaluating the difference between the Company’s market capitalization
and the carrying value of its net assets by reviewing market available information.
/s/ KPMG LLP
Chartered Professional Accountants
We have served as the Company’s auditor since 2009.
Vancouver, Canada
February 22, 2024
\
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of Eldorado Gold Corporation
Opinion on Internal Control over Financial Reporting
We have audited Eldorado Gold Corporation and subsidiaries' (the Company) internal control over financial
reporting as of December 31, 2023, based on criteria established in Internal Control – Integrated Framework
(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the
Company maintained, in all material respects, effective internal control over financial reporting as of December
31, 2023, based on criteria established in Internal Control – Integrated Framework (2013) issued by the
Committee of Sponsoring Organizations of the Treadway Commission.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board
(United States) (PCAOB), the consolidated statements of financial position of the Company as of December 31,
2023 and 2022, the related consolidated statements of operations, comprehensive income (loss), cash flows,
and changes in equity for each of the years then ended, and the related notes (collectively, the consolidated
financial statements), and our report dated February 22, 2024, expressed an unqualified opinion on those
consolidated financial statements.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and
for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying
“Management’s Discussion and Analysis – Internal Controls over Financial Reporting”. Our responsibility is to
express an opinion on the Company’s internal control over financial reporting based on our audit. We are a
public accounting firm registered with the PCAOB and are required to be independent with respect to the
Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether effective internal control over financial
reporting was maintained in all material respects. Our audit of internal control over financial reporting included
obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on
the assessed risk. Our audit also included performing such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A company’s internal control over financial reporting
includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements
in accordance with generally accepted accounting principles, and that receipts and expenditures of the
company are being made only in accordance with authorizations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use,
or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
/s/ KPMG LLP
Chartered Professional Accountants
Vancouver, Canada
February 22, 2024
Eldorado Gold Corporation
Consolidated Statements of Financial Position
As at December 31, 2023 and December 31, 2022
(In thousands of U.S. dollars)
Note
December 31, 2023
December 31, 2022
ASSETS
Current assets
Cash and cash equivalents
Term deposits
Accounts receivable and other
Inventories
Current derivative assets
Assets held for sale
Restricted cash
Deferred tax assets
Other assets
Non-current derivative assets
Property, plant and equipment
Goodwill
LIABILITIES & EQUITY
Current liabilities
Accounts payable and accrued liabilities
Current portion of lease liabilities
Current portion of asset retirement obligations
Current derivative liabilities
Liabilities associated with assets held for sale
Debt
Lease liabilities
Employee benefit plan obligations
Asset retirement obligations
Non-current derivative liabilities
Deferred income tax liabilities
Equity
Share capital
Treasury stock
Contributed surplus
Accumulated other comprehensive loss
Deficit
Total equity attributable to shareholders of the Company
Attributable to non-controlling interests
Commitments and contractual obligations (Note 24)
Contingencies (Note 25)
Subsequent events (Note 17)
Approved on behalf of the Board of Directors
7
8
9
27
6
10
27
12
13
15
17
27
6
16
17
27
20
$
$
$
$
$
$
$
540,473
1,136
122,778
235,890
2,502
27,627
930,406
2,085
14,748
185,209
7,036
3,755,559
92,591
4,987,634
254,030
5,020
4,019
279
10,867
274,215
636,059
12,092
10,261
125,090
18,843
399,109
1,475,669
3,413,365
(19,263)
2,617,216
(4,751)
(2,488,420)
3,518,147
(6,182)
3,511,965
4,987,634
$
279,735
35,000
91,113
198,872
—
27,738
632,458
2,033
14,507
120,065
—
3,596,262
92,591
4,457,916
191,705
4,777
3,980
—
10,479
210,941
494,414
12,164
8,910
105,893
—
424,726
1,257,048
3,241,644
(20,454)
2,618,212
(42,284)
(2,593,050)
3,204,068
(3,200)
3,200,868
4,457,916
(signed) John Webster Director
(signed) George Burns Director
Date of approval: February 22, 2024
The accompanying notes are an integral part of these consolidated financial statements.
Eldorado Gold Corporation
Consolidated Statements of Operations
For the years ended December 31, 2023 and December 31, 2022
(In thousands of U.S. dollars except share and per share amounts)
Revenue
Metal sales
Cost of sales
Production costs
Depreciation and amortization
Earnings from mine operations
Exploration and evaluation expenses
Mine standby costs
General and administrative expenses
Employee benefit plan expense
Share-based payments expense
Write-down of assets
Foreign exchange gain
Earnings from operations
Other income
Finance costs
Earnings from continuing operations before income tax
Income tax expense
Net earnings (loss) from continuing operations
Net loss from discontinued operations, net of tax
Net earnings (loss) for the year
Net earnings (loss) attributable to:
Shareholders of the Company
Non-controlling interests
Net earnings (loss) for the year
Net earnings (loss) attributable to shareholders of the Company:
Continuing operations
Discontinued operations
Net loss attributable to non-controlling interest:
Continuing operations
Discontinued operations
30
31
21
18
18
19
6
Weighted average number of shares outstanding (thousands):
Basic
Diluted
32
32
Net earnings (loss) per share attributable to shareholders of the
Company:
Basic earnings (loss) per share
Diluted earnings (loss) per share
Net earnings (loss) per share attributable to shareholders of the
Company - Continuing operations:
Basic earnings (loss) per share
Diluted earnings (loss) per share
Note
Year ended
December 31, 2023
Year ended
December 31, 2022
29
$
1,008,501
$
871,984
478,947
261,087
740,034
268,467
22,422
16,106
39,788
4,228
10,195
9,719
(16,000)
182,009
14,195
(32,839)
163,365
57,575
105,790
(4,407)
101,383
104,630
(3,247)
101,383
106,183
(1,553)
104,630
$
$
$
(393)
(2,854)
(3,247) $
194,448
195,329
0.54
0.54
$
$
0.55
0.54
$
$
459,586
240,185
699,771
172,213
19,635
34,367
37,015
5,982
10,744
32,499
(9,708)
41,679
11,802
(41,625)
11,856
61,224
(49,368)
(377,485)
(426,853)
(353,824)
(73,029)
(426,853)
(49,176)
(304,648)
(353,824)
(192)
(72,837)
(73,029)
183,446
183,446
(1.93)
(1.93)
(0.27)
(0.27)
$
$
$
$
$
$
$
$
The accompanying notes are an integral part of these consolidated financial statements.
Eldorado Gold Corporation
Consolidated Statements of Comprehensive Income (Loss)
For the years ended December 31, 2023 and December 31, 2022
(In thousands of U.S. dollars)
Year ended
December 31, 2023
Year ended
December 31, 2022
$
101,383
$
(426,853)
44,437
(3,449)
(4,476)
1,021
37,533
(19,753)
—
(2,163)
537
(21,379)
(448,232)
(375,203)
(73,029)
(448,232)
Net earnings (loss) for the year
Other comprehensive income (loss):
Items that will not be reclassified to earnings or (loss):
Change in fair value of investments in marketable securities
Income tax expense on change in fair value of investments in
marketable securities
Actuarial losses on employee benefit plans
Income tax recovery on actuarial losses on employee benefit
pension plans
Total other comprehensive income (loss) for the year
Total comprehensive income (loss) for the year
$
138,916
$
Attributable to:
Shareholders of the Company
Non-controlling interests
142,163
(3,247)
$
138,916
$
The accompanying notes are an integral part of these consolidated financial statements.
Note
Year ended
December 31, 2023
Year ended
December 31, 2022
$
105,790
$
(49,368)
Eldorado Gold Corporation
Consolidated Statements of Cash Flows
For the years ended December 31, 2023 and December 31, 2022
(In thousands of U.S. dollars)
Cash flows generated from (used in):
Operating activities
Net earnings (loss) for the year from continuing operations
Adjustments for:
Depreciation and amortization
Finance costs
Interest income
Unrealized foreign exchange gain
Income tax expense
Loss (gain) on disposal of assets
Unrealized loss on derivative contracts
Realized gain on derivative contracts
Write-down of assets
Share-based payments expense
Employee benefit plan expense
Property reclamation payments
Employee benefit plan payments
Settlement of derivative contracts
Income taxes paid
Interest received
Changes in non-cash operating working capital
Net cash generated from operating activities of continuing operations
Net cash generated from (used in) operating activities of discontinued
operations
Investing activities
Additions to property, plant and equipment
Capitalized interest paid
Proceeds from the sale of property, plant and equipment
Value added taxes related to mineral property expenditures
Purchase of marketable securities and investment in debt securities
Decrease (increase) in term deposits
Net cash used in investing activities of continuing operations
Net cash used in investing activities of discontinued operations
Financing activities
Issuance of common shares, net of issuance costs
Contributions from non-controlling interests
Proceeds from Term Facility - Commercial Loans and RRF Loans
Proceeds from Term Facility - VAT Facility
Repayments of Term Facility - VAT Facility
Term Facility loan financing costs
Term Facility commitment fees
Interest paid
Principal portion of lease liabilities
Purchase of treasury stock
Net cash generated from (used in) financing activities of continuing
operations
18
19
18
18
18
21
18
22
16
16
16
16
264,325
32,839
(17,640)
(15,167)
57,575
605
9,584
(431)
9,719
10,195
4,228
461,622
(3,591)
(5,084)
431
(59,839)
17,640
(28,282)
382,897
414
(401,870)
(10,782)
1,647
(17,906)
(633)
33,864
(395,680)
—
168,664
265
166,738
14,588
(11,328)
(22,084)
(5,066)
(29,490)
(3,968)
(4,442)
273,877
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - beginning of year
Cash in disposal group held for sale
Cash and cash equivalents - end of year
6
$
261,508
279,735
(770)
540,473
$
The accompanying notes are an integral part of these consolidated financial statements.
242,393
41,625
(6,763)
(2,413)
61,224
(2,959)
—
—
32,499
10,744
5,982
332,964
(3,202)
(6,180)
—
(90,871)
6,763
(28,314)
211,160
(164)
(289,853)
—
4,293
(30,134)
(20,163)
(35,000)
(370,857)
(33)
14,101
272
—
—
—
—
—
(34,862)
(6,884)
(13,969)
(41,342)
(201,236)
481,327
(356)
279,735
Eldorado Gold Corporation
Consolidated Statements of Changes in Equity
For the years ended December 31, 2023 and December 31, 2022
(In thousands of U.S. dollars)
Share capital
Balance beginning of year
Shares issued upon exercise of share options
Shares issued upon exercise of performance share units
Transfer of contributed surplus on exercise of options
Shares issued in private placements, net of share issuance
costs
Shares issued to the public, net of share issuance costs
Note
Year ended
December 31, 2023
Year ended
December 31, 2022
$
3,241,644
$
3,225,326
7,390
—
3,112
59,873
101,346
4,438
2,256
1,787
—
7,837
Balance end of year
20
$
3,413,365
$
3,241,644
Treasury stock
Balance beginning of year
Purchase of treasury stock
Shares redeemed upon exercise of restricted share units
Balance end of year
Contributed surplus
Balance beginning of year
Share-based payment arrangements
Shares redeemed upon exercise of restricted share units
Shares redeemed upon exercise of performance share units
Transfer to share capital on exercise of options
Balance end of year
Accumulated other comprehensive loss
Balance beginning of year
Other comprehensive earnings (loss) for the year attributable to
shareholders of the Company
Balance end of year
Deficit
Balance beginning of year
Net earnings (loss) attributable to shareholders of the Company
Balance end of year
Total equity attributable to shareholders of the Company
Non-controlling interests
Balance beginning of year
Loss attributable to non-controlling interests
Contributions from non-controlling interests
Balance end of year
Total equity
$
$
$
$
$
$
$
$
$
$
$
$
(20,454) $
(4,442)
5,633
(19,263) $
(10,289)
(13,969)
3,804
(20,454)
2,618,212
$
2,615,459
7,749
(5,633)
—
(3,112)
10,600
(3,804)
(2,256)
(1,787)
2,617,216
$
2,618,212
(42,284) $
(20,905)
37,533
(4,751) $
(21,379)
(42,284)
(2,593,050) $
104,630
(2,488,420) $
(2,239,226)
(353,824)
(2,593,050)
3,518,147
$
3,204,068
(3,200) $
(3,247)
265
(6,182) $
69,557
(73,029)
272
(3,200)
3,511,965
$
3,200,868
The accompanying notes are an integral part of these consolidated financial statements.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
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, and Greece.
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
These consolidated financial statements, including comparatives, have been prepared in compliance with
International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board
(“IASB”). The material accounting policies applied in these consolidated financial statements are presented in
Note 3 and, except as described in Note 5, have been applied consistently to all years presented, unless
otherwise noted.
The consolidated financial statements have been prepared on a historical cost basis except for certain financial
assets and liabilities which are measured at fair value.
The preparation of the consolidated financial statements in compliance with IFRS requires management to
make certain critical accounting estimates. It also requires management to exercise judgement in the process of
applying the Company's accounting policies. The areas involving a higher degree of judgement or complexity, or
areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in
Note 4.
All amounts are presented in U.S. dollars ("$") unless otherwise stated.
The consolidated financial statements were authorized for issue by the Company's Board of Directors on
February 22, 2024.
(1)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
3. Material accounting policies
3.1 Basis of presentation and principles of consolidation
(i) Subsidiaries and business combinations
Subsidiaries are those entities controlled by Eldorado. The financial statements of subsidiaries are included in
the consolidated financial statements from the date that control commences until the date that control ceases.
All intercompany transactions, balances, income and expenses are eliminated in full upon consolidation.
The acquisition method of accounting is used to account for business acquisitions. The cost of an acquisition is
measured at the fair value of the assets acquired, equity instruments issued and liabilities incurred or assumed
at the date of exchange.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are
measured initially at their fair values at the acquisition date, irrespective of the extent of any non-controlling
interest.
The excess of the cost of acquisition over the fair value of Eldorado’s share of the identifiable net assets
acquired is recorded as goodwill.
Transaction costs, other than those associated with the issue of debt or equity securities, which the Company
incurs in connection with a business combination, are expensed as incurred.
The material subsidiaries of the Company as at December 31, 2023 are described below:
Subsidiary
Location
Ownership
interest
Operations and
development projects
owned
Tüprag Metal Madencilik Sanayi ve Ticaret AS ("Tüprag")
Turkiye
100%
Kişladağ Mine
Efemçukuru Mine
Hellas Gold Single Member S.A. ("Hellas")
Greece
100%
Olympias Mine
Eldorado Gold (Québec) Inc.
Thracean Gold Mining SA
Thrace Minerals SA
Deva Gold SA ("Deva") (1)
Canada
Greece
Greece
100%
100%
100%
Romania
80.5%
Stratoni Mine
Skouries Project
Lamaque Complex
Perama Hill Project
Sapes Project
Certej Project
(1) In October 2022, the Certej project was reclassified to assets held for sale (Note 6).
(ii) Discontinued operations
Discontinued operations are presented in the consolidated statements of operations as a separate line.
(iii) Assets held for sale
Assets and businesses classified as held for sale are measured at the lower of carrying amount and fair value
less costs to sell. Impairment losses on initial classification as held for sale and gains or losses on subsequent
remeasurements are included in the consolidated statements of operations. No depreciation is charged on
assets and businesses classified as held for sale.
Assets and businesses are classified as held for sale if their carrying amount will be recovered or settled
principally through a sale transaction rather than through continuing use. The asset or business must be
available for immediate sale and the sale must be highly probable within one year.
(2)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
3. Material accounting policies (continued)
(iv) Transactions with non-controlling interests
For purchases from non-controlling interests, the difference between any consideration paid and the relevant
share of the carrying value of net assets of the subsidiary acquired is recorded in equity. Gains or losses on
disposals to non-controlling interests are also recorded in equity.
Eldorado treats transactions in the ordinary course of business with non-controlling interests as transactions
with third parties.
3.2 Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of Eldorado’s subsidiaries are measured using the currency
of the primary economic environment in which the entity operates (the functional currency). The consolidated
financial statements are presented in U.S. dollars, which is the Company’s functional and presentation
currency, as well as the functional currency of all significant subsidiaries.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at
the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting
date are translated to the functional currency at the exchange rate at that date. Foreign exchange gains and
losses resulting from the settlement of such transactions, and from the translation of monetary assets and
liabilities denominated in foreign currencies, are recognized in the consolidated statements of operations.
3.3 Property, plant and equipment
(i) Cost and valuation
Property, plant and equipment are carried at cost less accumulated depreciation and any impairment in value.
When an asset is disposed of, it is derecognized and the difference between its carrying value and net sales
proceeds is recognized as a gain or loss in the consolidated statements of operations.
(ii) Property, plant and equipment
Property, plant and equipment includes expenditures incurred on properties under development, significant
payments related to the acquisition of land, mineral rights and property, plant and equipment which are
recorded at cost on initial acquisition. Cost includes the purchase price and the directly attributable costs of
acquisition or construction required to bring an asset to the location and condition necessary for the asset to be
capable of operating in the manner intended by management, including capitalized borrowing costs for
qualifying assets. Proceeds from selling items before the related item of property, plant and equipment is
available for use is recognized in profit or loss, together with the costs of producing those items.
(iii) Deferred stripping costs
Stripping costs incurred during the production phase of a surface mine are considered production costs and
included in the cost of inventory produced during the period in which the stripping costs are incurred, unless
the stripping activity can be shown to provide access to additional mineral reserves, in which case the stripping
costs are capitalized. Stripping costs incurred to prepare the ore body for extraction are capitalized as mine
development costs (pre-stripping).
(3)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
3. Material accounting policies (continued)
3.3 Property, plant and equipment (continued)
(iv) Depreciation
Mine development costs, property, plant and equipment and other mining assets whose estimated useful life is
the same as the remaining life of the mine are depreciated, depleted and amortized over a mine’s estimated
life using the units-of-production method. Under this method, capitalized costs are multiplied by the number of
tonnes mined, and divided by the estimated recoverable tonnes contained in proven and probable reserves
and a portion of resources where it is considered highly probable that those resources will be economically
extracted over the life of the mine.
Management reviews the estimated total recoverable tonnes contained in reserves and resources annually,
and when events and circumstances indicate that such a review should be made. To reflect the pattern in
which each asset's future economic benefits are expected to be consumed based on current mine plans,
inferred resources are included in total estimated recoverable tonnes on a mine by mine basis if it is
considered highly probable that those resources will be economically extracted, and the amounts of highly
probable inferred resources are significant. Changes to estimated total recoverable tonnes contained in
reserves and resources are accounted for prospectively.
Capitalized stripping costs are amortized on a unit-of-production basis over the proven and probable reserves
to which they relate. Property, plant and equipment and other assets whose estimated useful lives are less
than the remaining life of the mine are depreciated on a straight-line basis over the estimated useful lives of the
assets. Where components of an asset have a different useful life and the cost of the component is significant
to the total cost of the asset, depreciation is calculated on each separate component. Depreciation methods,
useful lives and residual values are reviewed at the end of each year and adjusted if appropriate.
Assets under construction are capitalized as capital works in progress until the asset is available for use.
Capital works in progress are not depreciated. Depreciation commences once the asset is complete and
available for use. Certain mineral property, exploration and evaluation expenditures are capitalized and are not
subject to depreciation until the property is ready for its intended use.
(v) Subsequent costs
Expenditure on major maintenance or repairs includes the cost of replacement parts of assets and overhaul
costs. Where an asset or part of an asset is replaced and it is probable that further future economic benefit will
flow to the Company, the expenditure is capitalized and the carrying value of the replaced asset or part of an
asset is derecognized. Similarly, overhaul costs associated with major maintenance are capitalized when it is
probable that future economic benefit will flow to the Company and any remaining costs of previous overhauls
relating to the same asset are derecognized. All other expenditures are expensed as incurred.
(vi) Borrowing costs
Borrowing costs are expensed as incurred except where they are attributable to the financing of construction or
development of qualifying assets requiring a substantial period of time to prepare for their intended future use.
The Company has defined any period of 12 months and longer as a substantial period of time. Interest is
capitalized up to the date when substantially all the activities necessary to prepare the asset for its intended
use are complete. Interest is ceased to be capitalized during periods of prolonged suspension of construction
or development. Borrowing costs are classified as cash outflows from operating activities on the statements of
cash flows except for borrowing costs capitalized which are classified as investing activities.
Investment income arising on the temporary investment of proceeds from borrowings specific to qualifying
assets is offset against borrowing costs being capitalized.
(vii) Mine standby costs and restructuring costs
Mine standby costs and costs related to restructuring a mining operation are charged directly to expense in the
period incurred. Mine standby costs include labour, maintenance and mine support costs incurred during
temporary shutdowns of a mine or a development project.
(4)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
3. Material accounting policies (continued)
3.4 Leases
A contract is or contains a lease when the contract conveys a right to control the use of an identified asset for a
period of time in exchange for consideration.
The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-
of-use asset is initially measured at cost, and subsequently at cost less any accumulated depreciation and
impairment losses, and is adjusted for certain remeasurements of the lease liability. The cost of the right-of-use
asset includes the amount of the initial measurement of the lease liability, any lease payments made at or
before the commencement date, less any lease incentives received, any initial direct costs; and if applicable,
an estimate of costs to be incurred by the Company in dismantling and removing the underlying asset,
restoring the site on which it is located or restoring the underlying asset to the condition required by the terms
and conditions of the lease. Right-of-use assets are presented in property, plant and equipment on the
statements of financial position.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the Company’s incremental borrowing rate. The incremental borrowing rate reflects the rate of
interest that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a
similar economic environment with similar terms and conditions.
The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease
payments made. It is remeasured when there is a change in future lease payments arising from a change in an
index or rate, a change in the estimate of the amount expected to be payable under a residual value
guarantee, or as appropriate, changes in the assessment of whether a purchase or extension option is
reasonably certain to be exercised or a termination option is reasonably certain not to be exercised. The
Company applies judgement to determine the lease term for some lease contracts which contain renewal
options.
The Company does not recognize right-of-use assets and lease liabilities for leases of low-value assets, leases
with lease terms that are less than 12 months at inception and arrangements for the use of land that grant the
Company the right to explore, develop, produce or otherwise use the mineral resource contained in that land.
Lease payments associated with these arrangements are instead recognized as an expense over the term on
either a straight-line basis, or another systematic basis if more representative of the pattern of benefit. The
Company applies judgement in determining whether an arrangement grants the Company the right to explore,
develop, produce or otherwise use the mineral resource contained in that land.
3.5 Exploration, evaluation and development expenditures
(i) Exploration
Exploration expenditures reflect the costs related to the initial search for mineral deposits with economic
potential or obtaining more information about existing mineral deposits. Exploration expenditures typically
include costs associated with the acquisition of mineral licences, prospecting, sampling, mapping, diamond
drilling and other work involved in searching for mineral deposits. All expenditures relating to exploration
activities are expensed as incurred except for the costs associated with the acquisition of mineral licences
which are capitalized in property, plant and equipment.
(5)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
3. Material accounting policies (continued)
3.5 Exploration, evaluation and development expenditures (continued)
(ii) Evaluation
Evaluation expenditures reflect costs incurred at projects related to establishing the technical and commercial
viability of mineral deposits identified through exploration or acquired through a business combination or asset
acquisition.
Evaluation expenditures include the cost of:
▪ establishing the volume and grade of deposits through drilling of core samples, trenching and sampling
activities for an ore body that is classified as either a mineral resource or a proven and probable reserve;
▪ determining the optimal methods of extraction and metallurgical and treatment processes;
▪ studies related to surveying, transportation and infrastructure requirements;
▪ permitting activities; and
▪ economic evaluations to determine whether development of the mineralized material is commercially
viable, including scoping, pre-feasibility and final feasibility studies.
Evaluation expenditures are capitalized if management determines that there is evidence to support the
probability of generating positive economic returns in the future. A mineral resource is considered to have
economic potential when it is expected that the technical feasibility and commercial viability of extraction of the
mineral resource can be demonstrated considering long-term metal prices. Therefore, prior to capitalizing such
costs, management determines that the following conditions have been met:
▪ There is a probable future benefit that will contribute to future cash inflows;
▪ The Company can obtain the benefit and control access to it; and
▪ The transaction or event giving rise to the benefit has already occurred.
The evaluation phase is complete once technical feasibility of the extraction of the mineral deposit has been
determined through preparation of a reserve and resource statement, including a mining plan as well as receipt
of required permits and approval of the Board of Directors to proceed with development of the mine. On such
date, capitalized evaluation costs are assessed for impairment and reclassified to development costs.
(iii) Development
Development expenditures are those that are incurred during the phase of preparing a mineral deposit for
extraction and processing. These include pre-stripping costs and underground development costs to gain
access to the ore that is suitable for sustaining commercial mining, preparing land, construction of plant,
equipment and buildings and costs of commissioning the mine and processing facilities.
Expenditures incurred on development projects continue to be capitalized until the mine and mill move into the
production stage. The Company assesses each mine construction project to determine when a mine moves
into the production stage. The criteria used to assess the start date are determined based on the nature of
each mine construction project, such as the complexity of a plant or its location. Before such date, sales
proceeds and their related production costs from the mine construction project are recognized in profit or loss.
Various relevant criteria are considered to assess when the mine is substantially complete and ready for its
intended use and moved into the production stage. The criteria considered include, but are not limited to, the
following:
▪
▪
▪
▪
the level of capital expenditures compared to construction cost estimates;
the completion of a reasonable period of testing of mine plant and equipment;
the ability to produce minerals in saleable form (within specification); and
the ability to sustain ongoing production of minerals.
(6)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
3. Material accounting policies (continued)
3.6 Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Company’s share of the
net assets of the acquired business at the date of acquisition. When the excess is negative (negative goodwill),
it is recognized immediately in income. Goodwill on acquisition of subsidiaries and businesses is shown
separately as goodwill in the consolidated financial statements. Goodwill on acquisition of associates is
included in investments in significantly influenced companies and tested for impairment as part of the overall
investment.
Goodwill is carried at cost less accumulated impairment losses and tested annually for impairment or more
frequently if events or changes in circumstances indicate that it may be impaired. Impairment losses on
goodwill are not reversed.
Goodwill is allocated to cash-generating units (“CGUs") for the purpose of impairment testing. The allocation is
made to those CGUs or groups of CGUs that are expected to benefit from the business combination in which
the goodwill arose. If the composition of one or more CGUs to which goodwill has been allocated changes due
to a reorganization, the goodwill is reallocated to the units affected.
3.7 Impairment of non-financial assets
Non-financial assets which include property, plant and equipment are reviewed each reporting period for
impairment whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. If such indicators exist, the Company determines the recoverable amount, and if applicable,
recognizes an impairment loss.
An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset’s fair value less cost of disposal ("FVLCD") and
value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which
there are separately identifiable cash flows or CGUs.
Value in use is determined as the present value of the estimated future cash flows expected to arise from the
continued use of the asset in its present form and its eventual disposal. Value in use is determined by applying
assumptions specific to the Company’s continued use of the asset and does not take into account assumptions
of significant future enhancements of an asset’s performance or capacity to which the Company is not
committed.
FVLCD is the amount obtainable from the sale of an asset or CGU in an arm’s length transaction between
knowledgeable, willing parties, less the costs of disposal. For mining assets, FVLCD is often estimated using a
discounted cash flow approach because a fair value is not readily available from an active market or binding
sale agreement. Estimated future cash flows are calculated using estimated future prices, mineral reserves
and resources, operating and capital costs. All assumptions used are those that an independent market
participant would consider appropriate. The estimated future cash flows are discounted to their present value
using a discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset.
Non-financial assets other than goodwill impaired in prior periods are reviewed for possible reversal of the
impairment when events or changes in circumstances indicate that an item of mineral property and equipment
or CGU is no longer impaired. An impairment charge is reversed through the consolidated statements of
operations only to the extent of the asset’s or CGU’s carrying amount that would have been determined net of
applicable depreciation, had no impairment loss been recognized.
(7)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
3. Material accounting policies (continued)
3.8 Financial assets
(i) Classification and measurement
The Company classifies its financial assets in the following categories: at fair value through profit or loss
(“FVTPL”), at fair value through other comprehensive income (“FVTOCI”) or at amortized cost. The
classification depends on the purpose for which the financial assets were acquired. Management determines
the classification of its financial assets at initial recognition.
The classification of investments in debt instruments is driven by the business model for managing the financial
assets and their contractual cash flow characteristics. Investments in debt instruments are measured at
amortized cost if the business model is to hold the instrument for collection of contractual cash flows and those
cash flows are solely principal and interest. If the business model is not to hold the debt instrument, it is
classified as FVTPL. Financial assets with embedded derivatives are considered in their entirety when
determining whether their cash flows are solely payments of principal and interest.
Equity instruments that are held for trading (including all equity derivative instruments) are classified as FVTPL.
For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an
instrument-by-instrument basis) to designate them as FVTOCI.
(a) Financial assets at FVTPL
Financial assets carried as FVTPL are initially recorded at fair value with all transaction costs expensed in the
consolidated statements of operations. Realized and unrealized gains and losses arising from changes in the
fair value of the financial asset held at FVTPL are included in the consolidated statements of operations in the
period in which they arise. Derivatives are also categorized as FVTPL unless they are designated as hedges.
(b) Financial assets at FVTOCI
Investments in equity instruments as FVTOCI are initially recognized at fair value plus transaction costs.
Subsequently they are measured at fair value, with gains and losses arising from changes in fair value
recognized in other comprehensive income (loss). There is no subsequent reclassification of fair value gains
and losses to net earnings (loss) following the derecognition of the investment.
(c) Financial assets at amortized cost
Financial assets at amortized cost are initially recognized at fair value and subsequently carried at amortized
cost less any provisions for credit losses.
(ii)
Impairment of financial assets
The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at
amortized cost. At each reporting date, the loss allowance for the financial asset is measured at an amount
equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly
since initial recognition. If at the reporting date, the credit risk on the financial asset has not increased
significantly since initial recognition, the loss allowance is measured for the financial asset at an amount equal
to 12-month expected credit losses. For trade receivables the Company applies the simplified approach to
providing for expected credit losses, which allows the use of a lifetime expected loss provision.
Impairment losses on financial assets carried at amortized cost are reversed in subsequent periods if the
amount of the loss decreases and the decrease can be objectively related to an event occurring after the
impairment was recognized.
(iii) Derecognition of financial assets
Financial assets are derecognized when they mature or are sold, and substantially all the risks and rewards of
ownership have been transferred. Gains and losses on derecognition of financial assets classified as FVTPL or
amortized cost are recognized in the consolidated statements of operations. Gains or losses on financial
assets classified as FVTOCI remain within accumulated other comprehensive income (loss).
(8)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
3. Material accounting policies (continued)
3.9 Derivative financial instruments and hedging activities
Derivatives are recognized initially at fair value on the date a derivative contract is entered into. Subsequent to
initial recognition, derivatives are remeasured at their fair value. Derivatives embedded in financial liability
contracts are recognized separately if they are not closely related to the host contract. Derivatives, including
embedded derivatives from financial liability contracts, are recorded on the statements of financial position at
fair value and the unrealized gains and losses are recognized in the consolidated statements of operations.
The method of recognizing any resulting gain or loss depends on whether the derivative is designated as a
hedging instrument and, if so, the nature of the item being hedged.
Changes in the fair value of any derivative instruments that do not qualify for hedge accounting are recognized
immediately in the consolidated statements of operations.
3.10 Inventories
Inventories are valued at the lower of cost and net realizable value. Costs incurred in bringing each product to
its present location and condition are accounted for as follows:
(i) Product inventory consists of stockpiled ore, ore on leach pads, crushed ore, in-circuit material at
properties with milling or processing operations, gold concentrate, other metal concentrate, doré awaiting
refinement and unsold bullion. Product inventory costs consist of direct production costs including mining,
crushing and processing; site administration costs; and allocated indirect costs, including depreciation
and amortization of mineral property, plant and equipment.
Inventory costs are charged to production costs on the basis of quantity of metal sold. At operations
where the ore extracted contains significant amounts of metals other than gold, primarily silver, lead and
zinc, cost is allocated between the joint products. The Company regularly evaluates and refines estimates
used in determining the costs charged to production costs and costs absorbed into inventory carrying
values based upon actual gold recoveries and operating plans.
Net realizable value is the estimated selling price, less the estimated costs of completion and selling
expenses. A write-down is recorded when the carrying value of inventory is higher than its net realizable
value.
(ii) Materials and supplies inventory consists of consumables used in operations, such as fuel, chemicals,
reagents and spare parts, which are valued at the lower of average cost and net realizable value and,
where appropriate, less a provision for obsolescence. Costs include acquisition, freight and other directly
attributable costs.
3.11 Trade receivables
Trade receivables are amounts due from customers for the sale of bullion and metals in concentrate in the
ordinary course of business.
Trade receivables are recognized initially at fair value and subsequently at amortized cost using the effective
interest rate method. Trade receivables are recorded net of lifetime expected credit losses.
Settlement receivables arise from the sale of metals in concentrate where the amount receivable is finalized on
settlement date based on the underlying commodity price. Settlement receivables are classified as fair value
through profit and loss and are recorded at each reporting period at fair value based on forward metal prices.
Changes in fair value of settlements receivable are recorded in revenue.
(9)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
3. Material accounting policies (continued)
3.12 Debt and borrowings
Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently
carried at amortized cost, calculated using the effective interest method. Any difference between the proceeds
(net of transaction costs) and the redemption value is recognized in the consolidated statements of operations
over the period of the borrowings using the effective interest method.
Fees paid on the establishment of loan facilities and other borrowings are recognized as transaction costs of
the loan to the extent that it is probable that some or all of the facility and other borrowings will be drawn down.
In this case, the fee is deferred until the draw-down occurs at which time, these transaction costs are included
in the carrying value of the amount drawn on the facility and amortized using the effective interest rate method.
To the extent there is no evidence that it is probable that some or all of the facility and borrowings will be drawn
down, the fee is capitalized as a prepayment for liquidity services and amortized over the period the loan
facility to which it relates is available to the Company.
3.13 Current and deferred income tax
Income tax expense comprises current and deferred tax. Income tax expense is recognized in the consolidated
statements of operations except to the extent that it relates to items recognized either in other comprehensive
income or directly in equity, in which case it is recognized in other comprehensive income or in equity,
respectively.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected
total annual earnings. The tax rate used is the rate that is substantively enacted.
Deferred income tax is recognized on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is not
recorded if it arises from initial recognition of an asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither accounting nor taxable profit or loss or on
temporary differences relating to the investment in subsidiaries to the extent that they will not reverse in the
foreseeable future. Deferred income tax is determined using tax rates (and laws) that have been enacted or
substantively enacted by the statements of financial position date and are expected to apply when the related
deferred income tax asset is realized or the deferred income tax liability is settled.
A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available
against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
(10)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
3. Material accounting policies (continued)
3.14 Share-based payment arrangements
Share-based payment arrangements related to stock option awards, deferred share units, equity settled
restricted share units and performance share units are measured at fair value. Compensation expense for all
stock options awarded to employees is measured based on the fair value of the options on the date of grant
which is determined using the Black-Scholes option pricing model. For equity settled restricted share units,
compensation expense is measured based on the quoted market value of the shares. For equity settled
performance share units with market based vesting conditions, compensation expense is measured based on
the fair value of the share units on the date of grant which is based on the expected future forward price of the
Company's shares and an index consisting of global gold-based securities. Deferred share units are liability
awards settled in cash and measured at the quoted market price at the grant date and the corresponding
liability is adjusted for changes in fair value at each subsequent reporting date until the awards are settled.
The fair value of the options, restricted share units, performance share units and deferred units are expensed
over the vesting period of the awards with a corresponding increase in equity. No expense is recognized for
awards that do not ultimately vest.
3.15 Asset retirement obligations
A provision is made for mine restoration and rehabilitation when an obligation is incurred. The provision is
recognized as a liability with the corresponding cost included in the asset to which the obligation relates. At
each reporting date the asset retirement obligation is remeasured to reflect changes in discount rates, and the
timing or amount of the costs to be incurred.
The provision recognized represents management’s best estimate of the present value of the future costs
required. Significant estimates and assumptions are made in determining the amount of asset retirement
obligations. Those estimates and assumptions deal with uncertainties such as: requirements of the relevant
legal and regulatory frameworks, the magnitude of necessary remediation activities and the timing, extent and
costs of required restoration and rehabilitation activities.
These uncertainties may result in future actual expenditure differing from the amounts currently provided. The
provision recognized is periodically reviewed and updated based on the facts and circumstances available at
the time. Changes to the estimated future costs for operating sites are recognized in the consolidated
statements of financial position by adjusting both the asset retirement obligation and related assets. Such
changes result in changes in future depreciation and financial charges. Changes to the estimated future costs
for sites that are closed, inactive, or where the related asset no longer exists, are recognized in the
consolidated statements of operations.
3.16 Share capital
Common shares are classified as equity. Incremental costs directly attributable to the issue of common shares
and share options are recognized as a deduction from equity, net of any tax effects. Common shares held by
the Company are classified as treasury stock and recorded as a reduction of shareholders’ equity.
(11)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
3. Material accounting policies (continued)
3.17 Revenue recognition
Revenue is generated from the production and sale of doré, bullion and metals in concentrate. The Company’s
performance obligations relate primarily to the delivery of these products to customers, with each shipment
representing a separate performance obligation.
Revenue from the sale of doré, bullion and metals in concentrates is measured based on the consideration
specified in the contract with the customer. The Company recognizes revenue when it transfers control of the
product to the customer and has a present right to payment for the product.
(i) Metals in concentrate
Control over metals in concentrates is transferred to the customer and revenue is recognized when the product
is considered to be physically delivered to the customer under the terms of the customer contract. This is
typically when the concentrate has been placed on board a vessel for shipment or delivered to a location
specified by the customer.
Metals in concentrate are sold under pricing arrangements where final prices are determined by market prices
subsequent to the date of sale (the “quotational period”). Revenue from concentrate sales is recorded based
on the estimated amounts to be received, based on the respective metal's forward price at the expected
settlement date. Adjustments are made to settlements receivable in subsequent periods based on fluctuations
in the forward prices until the date of final metal pricing. These subsequent changes in the fair value of the
settlement receivable are recorded in revenue separate from revenue from contracts with customers.
Provisional invoices for metals in concentrate sales are typically issued shortly after or on the passage of
control of the product to the customer and the Company receives 90% - 95% of the provisional invoice at that
time. Additional invoices are issued as final product weights and assays are determined over the quotational
period. Provisionally invoiced amounts are generally collected promptly.
(ii) Metals in doré
The Company sells doré directly to refiners, or, refiners may receive doré from the Company to refine the
materials on the Company’s behalf and arrange for sale of the refined metal.
In the Turkiye operating segment, refined metals are sold at spot prices on the Precious Metal Market of the
Borsa Istanbul. Sales proceeds are collected within several days of the completion of the sale transaction.
Control over the refined gold or silver produced from doré is transferred to the customer and revenue
recognized upon delivery to the customer’s bullion account on the Precious Metal Market of the Borsa Istanbul.
In the Canada segment, doré and refined metals are sold at spot prices with sales proceeds collected within
several days of the sales transaction. Control is typically transferred to the customer and revenue recognized
upon delivery to a location specified by the customer.
3.18 Finance income and expenses
Finance income includes interest income on funds invested (including financial assets carried at FVTPL) and
changes in the fair value of financial assets at FVTPL. Interest income is recognized as it accrues in the
consolidated statements of operations, using the effective interest method.
Finance expenses include borrowing costs, unwinding of the discount on provisions, changes in the fair value
of financial assets at fair value through profit or loss and impairment losses recognized on financial assets. All
borrowing costs are recognized in the consolidated statements of operations using the effective interest
method, except for those amounts capitalized as part of the cost of qualifying property, plant and equipment.
(12)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
3. Material accounting policies (continued)
3.19 Earnings (loss) per share
The Company presents basic and diluted earnings per share (“EPS”) data for its common shares. Basic EPS is
calculated by dividing the earnings or loss attributable to common shareholders of the Company by the
weighted average number of common shares outstanding during the period. Diluted EPS is determined by
adjusting the earnings or loss attributable to common shareholders and the weighted average number of
common shares outstanding for the effects of all dilutive potential common shares, which comprise share
options, restricted share units and performance share units granted to employees.
4. Judgements and estimation uncertainty
The preparation of consolidated 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, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed at each period end. Revisions to accounting estimates
are recognized in the period in which the estimates are revised and in any future periods affected.
Significant areas requiring the use of management assumptions, estimates and judgements include the
valuation of property, plant and equipment and goodwill, estimated recoverable mineral reserves and mineral
resources, inventory, asset retirement obligations and current and deferred taxes. Actual results could differ
from these estimates.
Outlined below are some of the areas which require management to make significant judgements, estimates
and assumptions.
(i) Valuation of property, plant and equipment and goodwill
Property, plant and equipment and goodwill are tested for impairment when events or changes in
circumstances indicate that the carrying amount may not be fully recoverable. Goodwill is tested at least
annually.
Calculating the recoverable amount, including estimated FVLCD of CGUs for property, plant and equipment
and goodwill, requires management to make estimates and assumptions with respect to discount rates, future
production levels including amount of recoverable reserves, resources and exploration potential, operating and
capital costs, long-term metal prices, and estimates of the fair value of mineral properties beyond proven and
probable reserves.
Changes in any of the assumptions or estimates used in determining the recoverable amount could result in
additional impairment or reversal of impairment recognized.
Judgment is applied in assessing whether certain facts and circumstances are indicators of impairment, and
accordingly, require an impairment test to be performed. The Company considers both external and internal
sources of information in assessing whether there are any indications that its assets or CGUs may be
impaired. The primary external factors considered are changes in estimated long-term metal prices, changes
in laws and regulations and the Company’s market capitalization relative to its net asset carrying amount. The
primary internal factors considered are the performance of its CGUs against expectations, changes in mineral
reserves and resources, life of mine plans and exploration results.
(13)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
4. Judgements and estimation uncertainty (continued)
(i) Valuation of property, plant and equipment and goodwill (continued)
Mineral reserve and mineral resource estimates are based on various assumptions relating to operating
matters, including, with respect to production costs, mining and processing recoveries, cut-off grades, as well
as assumptions relating to long-term commodity prices and exchange rates and capital costs. Cost estimates
are based primarily on feasibility study estimates or operating history. Estimates are prepared under
supervision of appropriately qualified persons, but will be impacted by forecasted commodity prices, exchange
rates, capital and production costs and recoveries amongst other factors. Estimated recoverable mineral
reserves and mineral resources are used to determine the depreciation of property, plant and equipment at
operating mine sites, in accounting for deferred stripping costs, in performing impairment testing and for
forecasting the timing of the payment of decommissioning and restoration costs. Therefore, changes in the
assumptions used could impact the carrying value of assets, depreciation and impairment charges recorded in
the consolidated statements of operations and the carrying value of the asset retirement obligation.
(ii) Inventory
Inventories are measured at the lower of weighted average cost and net realizable value. The determination of
net realizable value involves the use of estimates. The net realizable value of inventories is calculated as the
estimated price at the time of eventual sale based on prevailing and forecast metal prices less estimated future
costs to convert the inventories into saleable form and associated selling costs. The net realizable value of
inventories is assessed at the end of each reporting period. Changes in the estimates of net realizable value
may result in a write-down of inventories or a reversal of a previous write-down.
In determining the valuation of heap leach ore inventories, the Company makes estimates of recoverable
ounces on the leach pads based on quantities of ore placed on the leach pads, the grade of ore placed on the
leach pads and an estimated recovery rate. Actual timing and ultimate recovery of gold contained on the leach
pads can differ significantly from these estimates. Changes in estimates of recoverable ounces on the leach
pads can impact the Company’s ability to recover the carrying amount of the inventories and may result in a
write-down of inventories.
(iii) Asset retirement obligation
The asset retirement obligation provision represents management's best estimate of the present value of future
cash outflows required to settle the liability which reflect estimates of future costs, inflation, requirements of the
relevant legal and regulatory frameworks and the timing of restoration and rehabilitation activities. Estimated
future cash outflows are discounted using a risk-free rate based on U.S. Treasury bond rates. Changes to
asset retirement obligation estimates are recorded with a corresponding change to the related item of property,
plant and equipment, or to the statements of operations if there is no related property, plant and equipment.
Adjustments to the carrying amounts of related items of property, plant and equipment can result in a change
to future depreciation expense.
(iv) Current and deferred taxes
Judgements and estimates of recoverability are required in assessing whether deferred tax assets recognized
on the consolidated statements of financial position are recoverable which is based on an assessment of the
ability to use the underlying future tax deductions before they expire against future taxable income. Deferred
tax liabilities arising from temporary differences on investments in subsidiaries, joint ventures and associates
are recognized unless the reversal of the temporary differences is not expected to occur in the foreseeable
future and can be controlled, which requires judgement.
Assumptions about the generation of future taxable earnings and repatriation of retained earnings depend on
management’s estimates of future production and sales volumes, commodity prices, reserves, operating costs,
decommissioning and restoration costs, capital expenditures, dividends and other capital management
transactions.
(14)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
4. Judgements and estimation uncertainty (continued)
(iv) Current and deferred taxes (continued)
The Company operates in multiple tax jurisdictions and judgement is required in the application of income tax
legislation in these jurisdictions. These estimates and judgements are subject to risk and uncertainty and could
result in an adjustment to current and deferred tax provisions and a corresponding increase or decrease to
earnings or loss for the period.
5. Adoption of new accounting standards
(a) Current adoption of new accounting standards
The following amendments to existing standards have been adopted by the Company commencing January 1,
2023:
Amendments to IAS 1 and IFRS Practice Statement 2: Disclosure of Accounting Policies
In February 2021, the IASB published a narrow scope amendment to IAS 1 'Presentation of Financial
Statements' and IFRS Practice Statement 2. The amendments replace all instances of the term 'significant
accounting policies' with 'material accounting policy information', requiring companies to disclose their material
accounting policies rather than their significant accounting policies. The amendments define what is 'material
accounting information' (being information that, when considered together with other information included in an
entity's financial statements, can reasonably be expected to influence decisions that the primary users of
general-purpose financial statements make on the basis of those financial statements) and explain how to
identify when accounting policy information is material. The amendments apply for annual reporting periods
beginning on or after January 1, 2023, and applied prospectively. The Company adopted these amendments,
which did not result in any changes to the Company's accounting policies themselves, however they impacted
the accounting policy information disclosed in the Company's consolidated financial statements. The
Company's material accounting policies are disclosed in Note 3.
Amendments to IAS 12: Deferred Tax related to Assets and Liabilities arising from a single transaction
In May 2021, the IASB published a narrow scope amendment to IAS 12 Income Taxes. In September 2021,
IAS 12 was revised to reflect this amendment. The amendment narrowed the scope of the recognition
exemption so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and
deductible temporary differences such as deferred taxes on leases and decommissioning obligations. As a
result, companies need to recognize a deferred tax asset and a deferred tax liability for these temporary
differences arising on initial recognition. The amendment applies for annual reporting periods beginning on or
after January 1, 2023, and applied retrospectively. The Company previously accounted for deferred tax assets
and deferred tax liabilities on leases and asset retirement obligations resulting in the same outcome as under
the amendments. Therefore, there was no material impact on the consolidated financial statements from the
adoption of this amendment.
Amendments to IAS 12: International Tax Reform - Pillar Two Model Rules
In May 2023, the IASB issued 'International Tax Reform - Pillar Two Model Rules' which amends the scope of
IAS 12 to clarify that the standard applies to income taxes arising from tax law enacted or substantively
enacted to implement the Pillar Two model rules published by The Organization for Economic Cooperation and
Development (OECD), including tax law that implements qualified domestic minimum top up taxes described in
those rules. The Company has adopted the amendment to IAS 12 in the current year. There was no material
impact on the consolidated financial statements from the adoption of this amendment. Refer to Note 19 for
further information.
(15)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
5. Adoption of new accounting standards (continued)
(b) New standards issued and not yet effective
Below are new standards, amendments to existing standards and interpretations that have been issued and
are not yet effective. The Company plans to apply the new standards or interpretations in the annual period for
which they are effective.
Classification of liabilities as current or non-current
In January 2020, the IASB published narrow scope amendments to IAS 1 Presentation of Financial
Statements. The narrow scope amendment clarifies that liabilities are classified as either current or non-
current, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the
expectations of the entity or events after the reporting date. The amendments are effective for annual periods
beginning on or after January 1, 2024, and applied retrospectively. The Company is currently evaluating the
impact of the amendments on its consolidated financial statements.
Non-current liabilities with covenants
In October 2022, the IASB published a narrow scope amendment to IAS 1 Presentation of Financial
Statements. After reconsidering certain aspects of the 2020 amendments, noted above in 'Classification of
liabilities as current or non-current', the IASB reconfirmed that only covenants with which a company must
comply on or before the reporting date affect the classification of a liability as current or non-current.
Covenants with which the Company must comply after the reporting date do not affect a liability’s classification
at that date. The amendment is effective for annual periods beginning on or after January 1, 2024, and applied
retrospectively. The Company has considered the amendment and concluded that there is no material impact
on the consolidated financial statements from the adoption of this amendment.
(16)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
6. Disposal group held for sale and discontinued operations
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. While the agreement expired on March 24, 2023, the Company is
committed to a plan to sell the Certej project. The Company has initiated an active program to locate a buyer.
The Certej project has been actively marketed for sale at a price that is reasonable in relation to its current fair
value and the Company expects the sale to qualify for recognition as a completed sale within one year.
As at December 31, 2023, the disposal group was stated at fair value less costs to sell and comprised the
following assets and liabilities:
Cash
Accounts receivable and other
Inventories
Property, plant, and equipment
Assets held for sale
Accounts payable and accrued liabilities
Asset retirement obligations
Liabilities associated with assets held for sale
December 31, 2023
December 31, 2022
$
$
$
$
770
1,276
1,586
23,995
27,627
$
$
(228) $
(10,639)
(10,867) $
356
1,150
1,501
24,731
27,738
(168)
(10,311)
(10,479)
During the year ended December 31, 2022, the Company recorded an impairment of $394,723 ($374,684 net
of deferred tax) on the Certej project. The fair value measurement for the disposal group has been categorized
as a Level 3 fair value based on the expected cash consideration of a sale, less estimated costs of disposal.
The results from operations of the Romanian reporting segment include:
Expenses
Impairment of property and equipment
Loss from operations
Income tax recovery
Loss from discontinued operations, net of tax
Loss from discontinued operations attributable to
shareholders of the Company
Loss from discontinued operations attributable to non-
controlling interest
Basic loss per share attributable to shareholders of the
Company
Diluted loss per share attributable to shareholders of the
Company
$
$
$
$
$
$
Year ended December 31,
2022
2023
(4,407) $
—
(4,407)
—
(4,407) $
(2,801)
(394,723)
(397,524)
(20,039)
(377,485)
(1,553) $
(304,648)
(2,854) $
(72,837)
(0.01) $
(0.01) $
(1.66)
(1.66)
Net cash generated from operating activities of the Romanian reporting segment during the year ended
December 31, 2023 was $414 (2022 – net cash used in operating activities was $164). Net cash used in
investing activities of the Romanian reporting segment during the year end December 31, 2023 was nil (2022 –
$33).
(17)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
7. Cash and cash equivalents
Cash
Short-term bank deposits
December 31, 2023
December 31, 2022
$
$
539,536
$
937
540,473
$
276,734
3,001
279,735
As at December 31, 2023, €86,781 ($95,893) of cash and cash equivalents are proceeds from the Term
Facility (Note 16(a)) and are designated for the construction of the Skouries project and to fund reimbursable
value added tax expenditures relating to the Skouries project.
8. Accounts receivable and other
December 31, 2023
December 31, 2022
Trade receivables
$
49,387
$
Value added tax and other taxes recoverable
Other receivables and advances
Prepaid expenses and deposits
Investment in marketable securities and debt securities
29,465
21,097
19,997
2,832
$
122,778
$
33,746
19,679
13,610
23,940
138
91,113
9. Inventories
Ore stockpiles
In-process inventory and finished goods
Materials and supplies
December 31, 2023
December 31, 2022
$
$
9,856
$
102,884
123,150
235,890
$
10,521
67,261
121,090
198,872
In 2023, inventories of $404,734 (2022 – $389,710) were recognized as an expense during the year and
included in cost of sales.
10. Other assets
December 31, 2023
December 31, 2022
Long-term value added tax and other taxes recoverable
$
74,495
$
Prepaid forestry fees
Prepaid loan costs
Investment in marketable securities and debt securities
Other
1,403
3,175
105,966
170
55,394
1,403
1,487
61,611
170
$
185,209
$
120,065
(18)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
11. Non-controlling interests
The following table summarizes the information relating to Deva, a subsidiary of the Company with a material
non-controlling interest (“NCI”). The amounts disclosed are based on those included in the consolidated
financial statements before inter-company eliminations.
December 31, 2023
December 31, 2022
NCI percentage
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net liabilities
Net liabilities allocated to NCI
Cash flows used in operating activities
Cash flows used in investing activities
Cash flows generated from financing activities
Net decrease in cash and cash equivalents
Net loss and comprehensive loss
Net loss allocated to NCI
19.5%
2,721
$
22,095
(228)
(170,070)
(145,482) $
19.5%
2,537
22,831
(154)
(156,057)
(130,843)
(28,369) $
(25,514)
(2,981) $
—
2,954
(27) $
(3,095)
(33)
2,958
(170)
(14,638) $
(2,854) $
(373,522)
(72,837)
$
$
$
$
$
$
$
Net loss allocated to NCI in the consolidated statements of operations includes $2,854 related to Deva (2022 –
net loss of $72,837) and net loss of $393 related to non-material subsidiaries (2022 – net loss of $192).
The carrying value of the NCI related to Deva is $(8,397) (2022 – $(5,543)) and the carrying value of non-
material subsidiaries is $2,215 (2022 – $2,343).
Deva is included in the Romanian reporting segment which is presented as a disposal group held for sale at
December 31, 2023. Net loss attributable to Deva is presented as discontinued operations for the years ended
December 31, 2023 and 2022 (Note 6).
(19)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
12. Property, plant and equipment
Land and
buildings
Plant and
equipment
Capital
works in
progress
Mineral
properties
Pre-
development
properties
Total
Cost
Balance at January 1, 2022
$ 233,262 $ 2,568,179 $ 109,813 $ 3,580,743 $
672,605 $ 7,164,602
Additions/transfers
7,420
21,901 181,216
84,065
(3,139)
291,463
(Write-down) recovery of assets
(44)
(37,264)
(343)
225
(906)
(38,332)
Other movements/transfers
4,691
77,274 (167,081)
86,821
—
1,705
Assets reclassified as held for sale
—
—
Disposals
(1,997)
(6,357)
—
—
—
(12)
(425,587)
(425,587)
(272)
(8,638)
Balance at December 31, 2022
$ 243,332 $ 2,623,733 $ 123,605 $ 3,751,842 $
242,701 $ 6,985,213
Balance at January 1, 2023
$ 243,332 $ 2,623,733 $ 123,605 $ 3,751,842 $
242,701 $ 6,985,213
Additions/transfers
Write-down of assets
2,034
43,352 158,430
225,664
—
—
—
(3,183)
Other movements/transfers
Assets reclassified as held for sale
12,311
—
100,710 (168,761)
—
—
51,269
—
25
—
—
217
(118)
429,505
(3,183)
(4,471)
217
(4,554)
Disposals
Capitalized interest
(197)
(3,382)
(731)
(126)
—
—
—
17,087
—
17,087
Balance at December 31, 2023
$ 257,480 $ 2,764,413 $ 112,543 $ 4,042,553 $
242,825 $ 7,419,814
Accumulated depreciation
Balance at January 1, 2022
$ (77,084) $ (1,273,204) $
— $ (1,801,647) $
(9,456) $ (3,161,391)
Depreciation for the year
(14,303)
(139,188)
Recovery of assets
Impairment
Other movements
Assets reclassified as held for sale
Disposals
—
—
261
—
12,475
—
(1,752)
—
1,491
5,542
—
—
—
—
—
—
(96,999)
—
—
—
—
(250,490)
12,475
(394,723)
(394,723)
(820)
(654)
(2,965)
—
—
400,856
400,856
254
7,287
Balance at December 31, 2022
$ (89,635) $ (1,396,127) $
— $ (1,899,466) $
(3,723) $ (3,388,951)
Balance at January 1, 2023
$ (89,635) $ (1,396,127) $
— $ (1,899,466) $
(3,723) $ (3,388,951)
Depreciation for the year
(21,540)
(143,008)
Other movements
Assets reclassified as held for sale
Disposals
(106)
(2,387)
—
144
—
2,035
—
—
—
—
(109,740)
—
(274,288)
(676)
—
1
(27)
(39)
39
(3,196)
(39)
2,219
Balance at December 31, 2023
$ (111,137) $ (1,539,487) $
— $ (2,009,881) $
(3,750) $ (3,664,255)
Carrying amounts
At January 1, 2022
$ 156,178 $ 1,294,975 $ 109,813 $ 1,779,096 $
663,149 $ 4,003,211
At December 31, 2022
$ 153,697 $ 1,227,606 $ 123,605 $ 1,852,376 $
238,978 $ 3,596,262
Balance at December 31, 2023
$ 146,343 $ 1,224,926 $ 112,543 $ 2,032,672 $
239,075 $ 3,755,559
(20)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
13. Goodwill
As of December 31, 2023 all goodwill relates to the Lamaque Complex ("Lamaque") CGU. Goodwill is tested
for impairment annually on December 31 and when circumstances indicate that the carrying value may not be
recoverable. Impairment is determined for goodwill by assessing the recoverable amount of the CGU. The
recoverable amount of the Lamaque CGU is based on the net present value of future cash flows expected to
be derived from the CGU. The recoverable amount used by the Company represents the CGU’s FVLCD, a
Level 3 fair value measurement, as it was determined to be higher than value in use.
The significant assumptions used for determining the recoverable amount of goodwill in the Lamaque CGU are
reflected in the table below. Management used judgement in determining estimates and assumptions with
respect to discount rates, future production levels including amounts of recoverable reserves, resources and
exploration potential, operating and capital costs, long-term metal prices and estimates of the fair value of
mineral properties beyond proven and probable reserves. Metal pricing assumptions were based on
consensus forecast pricing, and the discount rates were based on a weighted average cost of capital, adjusted
for country risk and other risks specific to the CGU. Cash flows were projected through to 2038. Changes in
any of the assumptions or estimates used in determining the fair values could impact the recoverable amount
of goodwill analysis.
Gold price ($/oz)
Real discount rate
2023
2022
$1,900 - $1,700
$1,725 - $1,600
6.25% - 7.25%
6.00% - 7.00%
The estimated recoverable amount of the Lamaque CGU including goodwill exceeded its carrying amount as
at December 31, 2023 by approximately $164 million. Impairment would result from a decrease in the long-
term gold price of $150 per ounce, or an increase in operating expenditures by 16% with all other assumptions
being kept consistent.
(21)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
14. Leases and right-of-use assets
As a lessee, the Company leases various assets including mobile mine equipment, offices and properties.
These right-of-use assets are presented as property, plant and equipment.
Cost
Opening balance at January 1, 2022
$
14,616
$
35,237
$
Right-of-use
Land and
buildings
Right-of-use
Plant and
equipment
Additions
Disposals
Transfers and other movements
Balance at December 31, 2022
Additions
Disposals
Transfers and other movements
Balance at December 31, 2023
Accumulated depreciation
Opening balance at January 1, 2022
Depreciation for the year
Disposals
Transfers and other movements
Balance at December 31, 2022
Depreciation for the year
Disposals
Transfers and other movements
Balance at December 31, 2023
Right-of-use assets, net carrying amount at
December 31, 2022
Right-of-use assets, net carrying amount
at December 31, 2023
$
$
$
$
$
$
$
Total
49,853
2,807
(178)
(17,585)
34,897
3,733
(271)
384
—
—
64
14,680
479
$
(170)
977
2,807
(178)
(17,649)
20,217
3,254
(101)
(593)
$
15,966
$
22,777
$
38,743
(3,391) $
(16,389) $
(1,321)
—
320
(4,198)
155
11,770
(4,392) $
(8,662) $
(1,529)
131
(90)
(2,575)
43
944
(19,780)
(5,519)
155
12,090
(13,054)
(4,104)
174
854
(5,880) $
(10,250) $
(16,130)
10,288
10,086
$
$
11,555
12,527
$
$
21,843
22,613
Interest expense on lease liabilities is disclosed in Note 18(b) and the cash payments for the principal portion
of lease liabilities is presented within financing activities in the Consolidated Statements of Cash Flows. The
Company's future obligations related to lease liabilities are disclosed in Note 24.
15. Accounts payable and accrued liabilities
Trade payables
Taxes payable
Accrued expenses
Deferred revenue
December 31, 2023
December 31, 2022
$
$
93,325
23,946
127,816
8,943
254,030
$
$
74,907
4,123
112,675
—
191,705
(22)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
16. Debt
December 31, 2023
December 31, 2022
Senior notes due 2029, net of unamortized transaction fees of
$5,325 (2022 – $6,077) and initial redemption option of $3,652
$
498,326
$
Redemption option derivative asset
Term Facility commercial loans, net of unamortized transaction fees
of $15,490
Term Facility RRF loans, net of unamortized transaction fees of
$6,037
Term Facility revolving VAT facility
(5,635)
100,890
39,209
3,269
498,090
(3,676)
—
—
—
$
636,059
$
494,414
2023
2022
Senior notes
due 2029 Term Facility
Senior notes
due 2029
Balance beginning of year
$
494,414 $
—
$
489,763
Financing cash flows related to debt:
Proceeds from Term Facility commercial loans
Proceeds from Term Facility RRF loans
Proceeds from Term Facility revolving VAT facility
Repayment of Term Facility revolving VAT facility
Interest paid
Debt transaction costs
Total financing cash flows related to debt
—
—
—
—
(31,250)
—
114,602
52,136
14,588
(11,328)
(3,655)
(22,084)
$
$
(31,250) $
144,259
463,164 $
144,259
$
$
—
—
—
—
(31,250)
—
(31,250)
458,513
Non-cash changes recorded in debt:
Interest incurred
Change in fair value of redemption option derivative asset
relating to senior notes due 2029
Recording RRF loans at fair value on initial recognition
Foreign exchange losses
Balance end of year
31,486
4,526
31,472
(1,959)
—
—
—
(8,016)
2,599
4,429
—
—
$
492,691 $
143,368
$
494,414
(23)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
16. Debt (continued)
(a) Skouries Project Financing Facility ("Term Facility")
On April 5, 2023, the Company completed the €680,400 Term Facility for the development of the Skouries
project in Northern Greece. The Term Facility includes €200,000 of funds from the Greek Recovery and
Resilience Facility (the "RRF"). The Term Facility also provides a €30,000 revolving credit facility to fund
reimbursable value added tax ("VAT") expenditures relating to the Skouries project. The project financing
further includes, in addition to the Term Facility, a Contingent Overrun Facility for an additional 10% of capital
costs, funded by the lenders and Hellas Gold Single Member S.A. ("Hellas") in the same proportion as the
Term Facility. The Term Facility is non-recourse to Eldorado Gold Corporation and is secured by the Skouries
project and the Hellas operating assets.
The Company's equity commitment for the project is backstopped by a letter of credit in the amount of
€126,211 ($139,463) as at December 31, 2023, issued under the Company's $250,000 amended and restated
fourth senior secured credit facility (the "Fourth ARCA") (Note 16(c)). The letter of credit will be reduced Euro
for Euro as the Company invests further in the Skouries project.
The Term Facility includes the following components:
i.
€480,400 commercial loans at a variable interest rate comprised of six-months EURIBOR plus a fixed
margin, with 70% of the variable rate exposure economically hedged through an interest rate swap for
the term of the facility (Note 27(e)).
ii. €100,000 initial RRF loans at a fixed interest rate of 3.04% for the term of the facility.
iii. €100,000 additional RRF loan at a fixed interest rate of 4.06% for the term of the facility.
In the year ended December 31, 2023, the Company completed four drawdowns on the Term Facility totalling
€153,236 ($166,738), including €105,322 ($114,602) of commercial loans and €47,914 ($52,136) from the
RRF loans. Additionally, during the year ended December 31, 2023, the Company completed drawdowns on
the VAT revolving credit facility totalling €13,464 ($14,588) and repaid €10,505 ($11,328).
In April 2023, in accordance with the requirements of the Term Facility, the Company entered into a secured
hedging program including gold and copper commodity swaps, an interest rate swap and U.S. dollar to Euro
forward contracts (Note 27(d),(e),(f)).
Drawings from the Term Facility will continue on a periodic basis through the earlier of March 31, 2026, or three
months following completion of the Skouries project. There is a deferral option, which if exercised, will extend
drawings from the Term Facility through the earlier of August 26, 2026, or three months following completion of
the Skouries project.
Repayment of the commercial loans, the RRF loans, and the Contingent Overrun Facility will commence on
June 30, 2026, with 14 semi-annual installments, through to December 31, 2032. If the deferral option is
exercised, repayment will commence on December 31, 2026, with 13 semi-annual installments, through to
December 31, 2032.
Proceeds from the VAT Facility will be drawn and repaid on a revolving basis, with a maturity date of the earlier
of June 30, 2027, or 18 months following completion of the Skouries project.
The Term Facility contains a number of standard financial covenants, including debt service and leverage
ratios. The Company is in compliance with its covenants as at December 31, 2023.
As at December 31, 2023, €86,781 ($95,893) of cash and cash equivalents are proceeds from the Term
Facility and are designated for the use of constructing the Skouries project and to fund reimbursable VAT
expenditures relating to the Skouries project.
(24)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
16. Debt (continued)
(b) Senior Notes
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 (Québec) Inc., all wholly-owned subsidiaries of the
Company.
The senior notes are redeemable by the Company in whole or in part, for cash:
i. At any time prior to September 1, 2024, at a redemption price equal to 100% of the aggregate principal
amount of the senior notes, accrued and unpaid interest and a premium at the greater of 1% of the
principal value of the notes to be redeemed, or the present value of remaining interest to September 1,
2024, discounted at the treasury yield plus 50 basis points.
ii. At any time prior to September 1, 2024, up to 40% of the original aggregate principal amount of the
senior notes with the net cash proceeds of one or more equity offerings at a redemption price equal to
106.25% of the aggregate principal amount of the senior notes redeemed, plus accrued and unpaid
interest.
iii. On and after the dates provided below, at the redemption prices, expressed as a percentage of
principal amount of the notes to be redeemed, set forth below, plus accrued and unpaid interest on the
senior notes:
September 1, 2024 103.125%
September 1, 2025 101.563%
September 1, 2026 and thereafter 100.000%
The redemption features described above constitute an embedded derivative which was separately recognized
at its fair value of $4,806 on initial recognition of the senior notes and recorded in other assets. The embedded
derivative is classified as fair value through profit and loss. The increase in fair value in the year ended
December 31, 2023 is $1,959, which is recognized in finance costs (Note 18(b)).
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 December 31, 2023.
The fair market value of the senior notes as at December 31, 2023 is $471,600.
(25)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
16. Debt (continued)
(c) Senior Secured Credit Facility
On October 15, 2021, the Company executed a $250 million amended and restated fourth senior secured
credit facility (the "Fourth ARCA") with an option to increase the available credit by $100 million through the
accordion feature, and with a maturity date of October 15, 2025. The Fourth ARCA replaced a $450 million
amended and restated senior secured credit facility (the "third amended and restated credit agreement" or
"TARCA").
The Fourth ARCA contains covenants that restrict, among other things, the ability of the Company to incur
additional unsecured indebtedness except in compliance with certain conditions, incur certain lease
obligations, make distributions in certain circumstances, or sell material assets. Significant financial covenants
include a minimum Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) to interest ratio
and a maximum debt net of unrestricted cash ("net debt") to EBITDA ratio ("net leverage ratio"). The Company
is in compliance with its covenants as at December 31, 2023.
The Fourth ARCA is secured on a first lien basis by a general security agreement from the Company, including
the real property of the Company and Eldorado Gold (Québec) Inc. in Canada, as well as the shares of each of
SG Resources B.V., Tüprag, Eldorado Gold (Netherlands) BV and Eldorado Gold (Québec) Inc., all wholly
owned subsidiaries of the Company.
Under the Fourth ARCA, the revolving credit facility bears interest at the Secured Overnight Financing Rate
("SOFR") loan rate plus a SOFR adjustment of 0.10% for a one month’s duration, 0.15% for a three-months’
duration, and 0.25% for a six-months’ duration for amounts drawn, plus a margin of 2.125% - 3.25% for
amounts drawn. The undrawn portion of the facility incurs standby fees of 0.47813% - 0.73125% while the
letters of credit not secured under the revolving credit facility bear interest at 0.90% - 1.33%. In each case,
interest or fees are dependent on a net leverage ratio pricing grid.
In September 2022, the Fourth ARCA was amended to, replace the London Inter-Bank Offered Rate with a
benchmark rate based on the SOFR; permit the revolving credit facility to be used to provide a bank-issued
letter of credit ("Project Letter of Credit") in favour of the lenders under the Term Facility; and introduce Euro
availability for the Project Letter of Credit.
As at December 31, 2023 the Company’s current interest charges and fees are as follows: SOFR loan rate
plus a SOFR adjustment of 0.10% for a one month’s duration, 0.15% for a three-months’ duration, and 0.25%
for a six-months’ duration, plus a margin of 2.125% on any amounts drawn from the revolving credit facility and
standby fees of 0.47813% on the available and undrawn portion of the revolving credit facility. The fees on the
€126,211 and CDN $426 letters of credit secured by the revolving credit facility are 2.125% plus a fronting fee
of 0.25%. The fee on the €58,216 letter of credit secured by the revolving credit facility is 0.90%.
As at December 31, 2023, the Company has letters of credit outstanding in Greece and Canada of €126,211,
€58,216 and CDN $426, totaling $204,280 (December 31, 2022 – €58,216 and CDN $426, totaling $62,664).
The €58,216 and CDN $426 letters of credit were issued to secure certain obligations in connection with the
Company's operations.
(26)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
17. Asset retirement obligations
At January 1, 2023
Accretion during the year (1)
Revisions to estimate
Settlements
Reclassified to liabilities associated with
assets held for sale
At December 31, 2023
Less: Current liability portion
Non-current liability portion
Turkiye
Canada
Greece
Romania
Total
$
54,521 $
14,215 $
41,137 $
— $ 109,873
2,224
20,095
(483)
336
757
—
1,731
(2,316)
(3,108)
427
(99)
—
4,718
18,437
(3,591)
—
—
—
(328)
(328)
$
76,357 $
15,308 $
37,444 $
— $ 129,109
—
—
(4,019)
—
(4,019)
$
76,357 $
15,308 $
33,425 $
— $ 125,090
Estimated undiscounted amount
$ 127,181 $
20,757 $
64,771 $
— $ 212,709
At January 1, 2022
Accretion during the year (1)
Revisions to estimate
Settlements
Reclassified to liabilities associated with
assets held for sale
At December 31, 2022
Less: Current liability portion
Non-current liability portion
Estimated undiscounted amount
Turkiye
Canada
Greece
Romania
Total
$
54,594 $
15,838 $
51,535 $
13,488 $ 135,455
965
161
(1,199)
—
144
(1,767)
—
—
871
(9,266)
(2,003)
262
2,242
(3,439)
(14,311)
—
(3,202)
—
(10,311)
(10,311)
$
54,521 $
14,215 $
41,137 $
— $ 109,873
—
—
(3,980)
—
(3,980)
54,521 $
14,215 $
37,157 $
— $ 105,893
92,673 $
20,022 $
72,973 $
— $ 185,668
$
$
(1) Accretion expense for the Romanian reporting segment has been reclassified to loss from discontinued operations for the years
ended December 31, 2023 and 2022 (Note 6).
The Company’s asset retirement obligations relate to the restoration and rehabilitation of the Company’s
mining operations and projects under development. The expected timing of cash flows in respect of each
provision is based on the estimated life of the related mining operation.
(27)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
17. Asset retirement obligations (continued)
The provision is calculated as the present value of estimated future net cash outflows based on the following
key assumptions:
At December 31, 2023
Inflation rate
Discount rate
At December 31, 2022
Inflation rate
Discount rate
Turkiye
Canada
Greece
Romania
%
2.5 to 3.2
3.9
2.3 to 3.1
4.0 to 4.1
%
3.2
3.9
2.6
3.9
%
2.3 to 2.5
4.0 to 4.2
2.4 to 2.8
4.1 to 4.4
%
2.5
4.2
2.5
4.1
The discount rate is a risk-free rate based on U.S. Treasury bond rates with maturities commensurate with
mining operations and projects under development. U.S. Treasury bond rates have been used for all of the
mining operations and projects under development as the liabilities are denominated in U.S. dollars and the
majority of the expenditures are expected to be incurred in U.S. dollars. Similarly, the inflation rates used in
determining the present value of the future net cash outflows are based on estimated U.S. inflation rates.
In relation to the asset retirement obligations in Greece and Canada, the Company has the following:
(a) A €50,000 Letter of Guarantee to the Ministry of Environment and Energy and Climate Change ("MEECC")
as security for the due and proper performance of rehabilitation works committed in relation to the mining
and metallurgical facilities of the Kassandra Mines (Olympias, Stratoni and Skouries) and the removal,
cleaning and rehabilitation of the old Olympias tailings. Subsequent to year-end, this Letter of Guarantee
was amended for a 15-year term to May 27, 2038, and has an annual fee of 102 basis points.
(b) A €7,500 Letter of Guarantee to the MEECC for the due and proper performance of the Kokkinolakkas
Tailings Management Facility, committed in connection with the Environmental Impact Assessment
approved for the Kassandra Mines (Olympias, Stratoni and Skouries). Subsequent to year-end, this Letter
of Guarantee was amended for a 15-year term to May 27, 2038, and has an annual fee of 107 basis
points.
(c) Restricted cash of $2,027 (2022 – $1,979) relates to an environmental guarantee deposit posted as
security for rehabilitation works primarily in relation to Lamaque.
(28)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
18. Other income (expense) and finance costs (gains)
(a) Other income (expense)
December 31, 2023
December 31, 2022
Interest income and other
(Loss) gain on disposal of assets
Unrealized loss on derivative instruments
Realized gain on derivative instruments
Asset retirement obligation provision for closed facility
$
$
$
23,953
(605)
(9,584)
431
—
8,856
2,959
—
—
(13)
14,195
$
11,802
(b) Finance costs (gains)
December 31, 2023
December 31, 2022
Interest cost on senior notes due 2029 (Note 16)
$
31,486
$
31,385
Interest cost on Term Facility (Note 16)
Other interest and financing costs
(Gain) loss on redemption option derivative (Note 16)
Interest expense on lease liabilities
Asset retirement obligation accretion
Total finance costs
Less: capitalized interest
4,526
9,835
(1,959)
1,747
4,291
49,926
$
(17,087)
32,839
$
—
2,189
4,429
1,642
1,980
41,625
—
41,625
$
$
(29)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
19. Income taxes
Total income tax expense consists of:
Current tax expense
Deferred tax recovery
$
$
2023
85,804
$
(28,229)
57,575
$
Income tax expense attributable to each geographical jurisdiction for the Company is as follows:
Turkiye
Canada
Greece
$
$
The key factors affecting income tax expense for the years are as follows:
2023
42,471
$
30,491
(15,387)
57,575
$
2023
Earnings from continuing operations before income tax
$
163,365
$
Canadian statutory tax rate
27%
Tax expense on net earnings at Canadian statutory tax rate
$
44,109
$
Items that cause an increase (decrease) in income tax
expense:
Foreign income subject to different income tax rates than
Canada
Turkish fixed asset revaluation
Increase (decrease) in Turkish income tax rate
Turkish investment tax credits
Québec mineral tax
Non-tax effected temporary differences and operating
losses
Non-deductible expenses and non-taxable income
Flow-through share renouncement
Turkish earthquake relief tax
Turkish inflation benefit
Foreign exchange related to the weakening of the Turkish
Lira
Foreign exchange and other translation adjustments
Future and current withholding tax on foreign income
dividends
Other
Income tax expense
1,143
(4,528)
22,589
(17,473)
22,518
(4,383)
(96)
3,500
4,348
(59,361)
51,205
(9,608)
6,723
(3,111)
$
57,575
$
2022
69,701
(8,477)
61,224
2022
30,366
16,934
13,924
61,224
2022
11,856
27%
3,201
1,032
—
(4,755)
(9,958)
12,539
1,910
9,194
4,388
—
(18,048)
26,619
14,079
19,993
1,030
61,224
(30)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
19. Income taxes (continued)
On July 15, 2023, Turkiye enacted an income tax rate increase from 20% to 25% for general income, from 19%
to 24% for certain manufacturing activities (including mining), and from 19% to 20% for export income. The
rate increases were applicable retroactively to January 1, 2023. The rate change resulted in $8,200 current tax
expense and $22,589 deferred tax expense recognized in Q3 2023.
On December 31, 2023, Turkiye announced application of hyperinflation accounting for the year ended
December 31, 2023. This resulted in a $59,361 reduction to the ending deferred tax liability and a
corresponding deferred tax recovery for Q4 2023.
On January 22, 2022 a decrease in the corporate income tax rate in Turkiye was enacted for certain qualifying
corporations on specified income. The corporate income tax rate reduced from 23% to 22% in 2022 and will
reduce from 20% to 19% in 2023 onwards. The reduction is effective retroactively from January 1, 2022 and
onwards. The opening deferred tax liability and the deferred tax expense for the year ended December 31,
2022 were reduced by $4,755 for the year ended December 31, 2022 due to the tax rate reduction.
The change in the Company’s net deferred tax position was as follows:
Net deferred income tax liability
Balance at January 1,
Deferred income tax recovery in the statements of
operations
Deferred tax recovery related to discontinued operations
Deferred tax expense (recovery) in the consolidated
statements of other comprehensive income
2023
2022
$
410,219
$
439,195
(28,229)
—
2,371
(8,477)
(20,039)
(460)
410,219
Balance at December 31,
$
384,361
$
The composition of the Company’s net deferred income tax assets and liabilities and deferred tax expense
(recovery) is as follows:
Type of temporary difference
Deferred tax assets
Deferred tax liabilities
Expense (Recovery)
2023
2022
2023
2022
2023
2022
Property, plant and equipment
$
— $
— $ 419,824 $ 446,695 $
(26,871) $
(44,173)
Loss carryforwards
Liabilities
Future withholding taxes
Other items
14,748
17,532
45,618
27,960
—
—
—
—
2,784
(17,658)
—
—
—
—
5,355
5,555
(200)
19,548
3,461
13,716
1,634
6,052
5,555
2,416
$
60,366 $
45,492 $ 444,727 $ 455,711 $
(28,229) $
(28,516)
Less: discontinued operations
—
—
—
—
—
20,039
Balance at December 31,
$
60,366 $
45,492 $ 444,727 $ 455,711 $
(28,229) $
(8,477)
Unrecognized deferred tax assets
Tax losses
Other deductible temporary differences
$
$
2023
218,615
$
86,864
305,479
$
2022
191,448
99,835
291,283
(31)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
19. Income taxes (continued)
Unrecognized tax losses
The Company recognizes the benefit of tax losses only to the extent of anticipated future taxable income that
can be reduced by the tax losses. Cumulative losses with a deferred tax benefit of $218,615 (2022 –
$191,448) have not been recognized. The gross amount of tax losses for which no deferred tax asset was
recognized expire as follows:
Canadian net operating loss carryforwards
$
464,761
2030-2043 $
448,935
2029-2042
Canadian capital losses
Greek net operating loss carryforwards
258,795
182,444
none
2024-2028
229,146
177,188
none
2023-2027
Romanian net operating loss carryforwards
6,811
2024-2030
1,837
2023-2029
2023
Expiry date
2022
Expiry date
Deductible temporary differences
At December 31, 2023, the Company had deductible temporary differences for which deferred tax assets of
$86,864 (2022 – $99,835) have not been recognized because it is not probable that future taxable profits will
be available against which the Company can utilize the benefits. The vast majority of these temporary benefits
have no expiry date.
Temporary differences associated with investments in subsidiaries
The Company has not recognized deferred tax liabilities in respect of historical unremitted earnings of foreign
subsidiaries for which we are able to control the timing of the remittance and are considered reinvested for the
foreseeable future. At December 31, 2023, these earnings amount to $958,595 (2022 – $895,198).
Substantially all of these earnings would be subject to withholding taxes if they were remitted by the foreign
subsidiaries.
Other factors affecting taxation
During 2023, deferred tax expense of $29,250 (2022 – $35,863) was recognized due to the net decrease in the
value of future tax deductions as a result of foreign exchange movements. Of this expense, $38,421 was due
to the weakening of the Turkish lira against the U.S. dollar. This expense was partially offset by a $9,160
recovery due to the strengthening of the Euro against the U.S. dollar. The Company expects that any future
significant foreign exchange movements in the Turkish Lira or Euro in relation to the U.S. dollar could cause
significant volatility in the deferred income tax expense or recovery.
Global minimum top-up tax
Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions in which the Company
operates. The legislation will be effective for the Company’s financial year beginning January 1, 2024. The
Company has performed an assessment of the Company’s potential exposure to Pillar Two income taxes. This
assessment is based on the most recent information available regarding the financial performance of the
constituent entities in the group. Based on the assessment performed, the transitional CbCR safe harbour
rules apply in all jurisdictions in which the Company operates and management is not currently aware of any
circumstances under which this might change. Therefore, based on the most recent information available, the
Company does not expect a potential material exposure to Pillar Two top-up taxes.
The Company has applied a temporary mandatory relief from deferred tax accounting for the impacts of the
top-up tax and would account for it as a current tax in the unlikely event that this would be incurred.
(32)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
20. Share capital
Eldorado’s authorized share capital consists of an unlimited number of voting common shares without par
value.
On June 14, 2023, the Company completed a private placement with EBRD consisting of 6,269,231 common
shares at a price of CDN $13.00 per common share for gross proceeds of CDN $81,500 ($61,292). These
proceeds (net of transaction costs of $1.4 million) are invested in the Skouries project, and have been credited
against the Company's 20% equity funding commitment per the terms of the project financing facility that
closed on April 5, 2023.
On June 7, 2023, the Company completed a bought deal prospectus offering of 10,400,000 common shares at
a price of CDN $13.00 per common share for gross proceeds of CDN $135,200 ($101,076).
On June 6, 2023, the Company completed a private placement of 390,900 common shares at a price of CDN
$19.18 per share for proceeds of CDN $7,498; and a private placement of 290,000 common shares at a price
of CDN $17.24 per share for proceeds of CDN $4,998. The shares qualify as flow-through shares for Canadian
tax purposes and were issued at premiums of CDN $6.02 per share and CDN $4.08 per share, respectively, to
the closing market price of the Company's common shares at the date of issue. The combined premium of
CDN $3,536 ($2,635) was recognized in accounts payable and accrued liabilities and will be recognized in
other income as required expenditures are incurred and related tax benefits renounced.
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 (Québec) 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 (Québec) Inc. expired during the first quarter of 2022.
Voting common shares
Balance at January 1,
Shares issued upon exercise of share options
Shares issued on redemption of performance
share units
Estimated fair value of share options exercised
transferred from contributed surplus
Shares issued upon exercise of warrants
Shares issued for private placement with
EBRD, net of issuance costs
Shares issued for bought deal offering, net of
issuance costs
Flow-through shares issued, net of issuance
costs and premium
2023
2022
Number of
Shares
Total
Number of
Shares
Total
184,800,571 $ 3,241,644
182,673,118 $ 3,225,326
987,649
7,390
885,750
4,438
—
—
—
—
528,166
2,256
3,112
—
—
19,037
1,787
213
6,269,231
59,873
10,400,000
94,718
—
—
—
—
680,900
6,628
694,500
7,624
Balance at December 31,
203,138,351 $ 3,413,365
184,800,571 $ 3,241,644
(33)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
21. Share-based payment arrangements
Share-based payments expense consists of:
December 31, 2023
December 31, 2022
Share options
$
2,717
$
Restricted share units with no performance criteria
Restricted share units with performance criteria
Deferred units
Performance share units
1,789
480
2,446
2,763
4,376
1,620
2,545
144
2,059
$
10,195
$
10,744
(i) Share option plans
The Company's incentive stock option plan (the "Plan") consists of options ("Options") which are subject to a 5-
year maximum term and payable in shares of the Company when vested and exercised. Options vest at the
discretion of the board of directors of the Company (the "Board") at the time an Option is granted. Options
generally vest in three equal and separate tranches with the first vesting commencing one year after the date
of grant and the second and third tranches vesting on the second and third anniversary of the grant date.
Movements in the number of share options outstanding and their related weighted average exercise prices are
as follows:
At January 1,
Granted
Exercised
Expired
Forfeited
2023
Weighted
average price
CDN$
Number of
options
2022
Weighted
average price
CDN$
$11.31
3,739,567
14.74
10.11
12.76
14.06
1,054,431
(987,649)
(127,132)
(326,474)
$11.31
13.92
6.42
21.98
13.67
Number of
options
4,250,763
1,265,672
(885,750)
(667,980)
(223,138)
At December 31,
$12.42
3,352,743
$11.31
3,739,567
As at December 31, 2023, a total of 3,451,734 options (December 31, 2022 – 4,043,166) were available to
grant under the Plan. As at December 31, 2023, 1,539,960 share purchase options (December 31, 2022 –
1,834,985) with a weighted average exercise price of CDN $10.26 (2022 – CDN $8.92) are vested and
exercisable.
The weighted average market share price at the date of exercise for share options exercised in 2023 was CDN
$15.73 (2022 – CDN $13.64).
During the year ended December 31, 2023, 1,054,431 (2022 – 1,265,672) share options were granted. The
weighted average fair value per stock option granted was CDN $5.36 (2022 – CDN $5.64).
(34)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
21. Share-based payment arrangements (continued)
Options outstanding are as follows:
December 31, 2023
Total options outstanding
December 31, 2023
Exercisable options
Range of
exercise
price
CDN$
$5.00 to $5.99
$11.00 to $11.99
$12.00 to $12.99
Shares
614,951
69,501
419,227
$13.00 to $13.99
1,432,507
$14.00 to $14.99
$15.00 to $15.99
16,766
799,791
3,352,743
Weighted
average
remaining
contractual
life (years)
Weighted
average
exercise
price
CDN$
Shares
0.16
4.63
1.84
2.79
2.23
4.34
2.59
$5.68
614,951
11.90
12.90
13.64
14.60
15.17
—
338,968
574,863
11,178
—
Weighted
average
exercise
price
CDN$
$5.68
—
12.90
13.52
14.60
—
$12.42
1,539,960
$10.26
The assumptions used to estimate the fair value of options granted during the years ended December 31,
2023 and December 31, 2022 are in the table below. Volatility was determined based on the historical volatility
over the estimated lives of the options.
Risk-free interest rate (range)
Expected volatility (range)
Expected life (range) (years)
Expected dividends (CDN $)
(ii) Restricted share units plan
2023
2022
3.2% – 4.8%
44% – 57%
1.94 – 3.96
—
1.4% – 1.6%
60% – 61%
1.96 – 3.96
—
The Company has a restricted share unit plan (“RSU Plan") whereby restricted share units ("RSUs") may be
granted to senior management of the Company. Such RSUs may be redeemed by the holder in shares or
cash, with cash redemptions subject to the approval of the Board. The current maximum number of common
shares authorized for issue under the RSU Plan is 5,000,000. As at December 31, 2023, 762,819 common
shares purchased by the Company remain held in trust in connection with this plan and have been included in
treasury stock within equity on the consolidated statements of financial position.
During the year ended December 31, 2023, 418,000 common shares were purchased on the open market for
CDN $6,059 under an approved normal course issuer bid (December 31, 2022 – 1,421,373 common shares
for CDN $17,623).
(35)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
21. Share-based payment arrangements (continued)
Currently, the Company has two types of RSUs:
(a) RSU with no performance criteria
These RSUs are exercisable into one common share once vested, for no additional consideration. They vest
as follows: one third on the first anniversary of the grant date, one third on the second anniversary of the grant
date and one third on the third anniversary of the grant date. RSUs with no performance criteria terminate on
the third anniversary of the grant date. All vested RSUs which have not been redeemed by the date of
termination are automatically redeemed. Such RSUs may be redeemed by the holder in shares or cash, with
cash redemptions subject to the approval of the Board.
During the year ended December 31, 2023, 383,427 (2022 - 176,414) RSUs with no performance criteria were
granted at an average grant-date fair value of CDN $14.74 (2022 - CDN $14.44) under the Company’s RSU
plan. The fair value of each RSU issued is determined based on the quoted market value of the Company's
shares on date of grant.
A summary of the status of the RSUs with no performance criteria and changes during the years ended
December 31, 2023 and December 31, 2022 is as follows:
At January 1,
Granted
Redeemed
Forfeited
At December 31,
2023
328,677
383,427
(145,598)
(85,681)
480,825
2022
471,762
176,414
(294,993)
(24,506)
328,677
As at December 31, 2023, no RSUs are vested and exercisable (2022 – 17,371).
(b) RSU with performance criteria
RSUs with performance criteria cliff vest on the third anniversary of the grant date, subject to achievement of
predetermined market-based performance criteria. When fully vested, the number of RSUs redeemed will
range from 0% to 200% of the target award, subject to the performance of the share price over the three-year
period.
There were no RSUs with performance criteria granted during the year ended December 31, 2023. There were
222,144 (2022 – 229,979) RSUs with performance criteria granted as a result of the performance criteria being
met during the year, which were then redeemed for common shares issued from treasury stock. The fair value
of each RSU with market-based performance criteria issued is determined based on fair value of the share
units on the date of grant which is based on a valuation model which uses the expected future forward price of
the Company's shares and an index consisting of global gold-based securities.
A summary of the status of the RSUs with performance criteria and changes during the years ended
December 31, 2023 and December 31, 2022 is as follows:
At January 1,
Granted
Redeemed
Forfeited
At December 31,
2023
566,740
222,144
(444,288)
(92,653)
251,943
2022
908,377
229,979
(459,958)
(111,658)
566,740
(36)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
21. Share-based payment arrangements (continued)
(iii) Deferred units plan
The Company has an independent directors deferred unit plan under which deferred units ("DU's") are granted
by the Board from time to time to independent directors (“the Participants”). DU's may be redeemed only on
retirement of the independent director from the Board (the “Termination Date”) by providing the redemption
notice to the Company specifying the redemption date which shall be no later than December 15 of the first
calendar year commencing after the calendar year in which the Termination Date occurred (the “DU
Redemption Date”). The participant receives a cash payment equal to the market value of such DU's as of the
DU Redemption Date.
At December 31, 2023, 405,051 DU's were outstanding (2022 – 335,829) with a fair value of $5,254 (2022 –
$2,803), which is included in accounts payable and accrued liabilities. The fair value was determined based on
the closing share price at December 31, 2023.
(iv) Performance share units plan
The Company has a Performance Share Unit plan (the “PSU Plan") whereby performance share units
("PSUs") may be granted to senior management of the Company at the discretion of the Board of Directors.
Under the PSU Plan, PSUs cliff vest on the third anniversary of the grant date (the “PSU Redemption Date”)
and are subject to terms and conditions including the achievement of predetermined performance criteria.
When fully vested the number of PSUs redeemed will range from 0% to 200% of the target award, subject to
the achievement of the performance criteria. Once vested, at the option of the Company, PSU’s are
redeemable as a cash payment equal to the market value of the vested PSUs as of the PSU Redemption Date,
common shares of the Company equal to the number of vested PSUs, or a combination of cash and shares
equal to the market value of the vested PSUs, for no additional consideration from the PSU holder and are
redeemed as soon as practicable after the PSU Redemption Date.
There were 421,502 PSUs granted during the year ended December 31, 2023 under the PSU Plan
(December 31, 2022 – 352,837) with a fair value of CDN $22.39 per unit (December 31, 2022 – $28.66). In
addition, no PSUs were granted as a result of the performance criteria being met during the year
(December 31, 2022 – 264,083), which would have been redeemed for common shares. The current maximum
number of common shares authorized for issuance from treasury under the PSU Plan is 3,126,000. The fair
value of each PSU issued is determined based on fair value of the share units on the date of grant which is
based on the expected future forward price of the Company's shares and an index consisting of global gold-
based securities.
Movements in the PSUs during the years ended December 31, 2023 and December 31, 2022 are as follows:
At January 1,
Granted
Redeemed
Forfeited
At December 31,
2023
342,670
421,502
—
(74,997)
689,175
2022
278,020
616,920
(528,166)
(24,104)
342,670
(37)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
22. Supplementary cash flow information
Changes in non-cash working capital:
December 31, 2023
December 31, 2022
Accounts receivable and other
Inventories
Accounts payable and accrued liabilities
$
$
(29,337) $
(33,566)
34,621
(28,282) $
(3,769)
(20,552)
(3,993)
(28,314)
23. Financial risk management
23.1 Financial risk factors
Eldorado’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk,
interest rate risk and metal price and global market risk), credit risk and liquidity risk. Eldorado’s overall risk
management program focuses on the unpredictability of financial markets and seeks to minimize potential
adverse effects on the Company’s financial performance.
(i) Market risk
a. Foreign exchange risk
The Company operates principally in Turkiye, Canada and Greece, 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
Company's functional currency.
Eldorado’s cash and cash equivalents, accounts receivable, marketable securities, non-current assets,
accounts payable and accrued liabilities and other current and non-current liabilities are denominated in
several currencies, and are therefore subject to fluctuation against the U.S. dollar.
In April 2023, in conjunction with the Term Facility, the Company entered into foreign exchange contracts to fix
the U.S. Dollar to Euro exchange rate for a portion of the Term Facility repayments (Note 27(f)), reducing its
exposure to foreign exchange risk.
In August 2023, the Company entered into foreign exchange forward contracts to fix the U.S. Dollar to Euro
exchange rate for a portion of the Company’s equity commitment for the Skouries project (Note 27(b)),
reducing its exposure to foreign exchange risk.
The Company continues to use zero-cost collars to reduce the risk associated with fluctuations of the Euro and
Canadian dollar (Note 27(a)) at Olympias and Lamaque, respectively.
The tables below summarize Eldorado’s exposure to various currencies denominated in the foreign currency at
December 31, 2023 and 2022. The tables do not include amounts denominated in U.S. dollars as at
December 31, 2023.
(38)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
23. Financial risk management (continued)
Cash and cash equivalents
Accounts receivable and other
Current derivative assets
Other non-current assets
Investments in marketable securities
Accounts payable and other
Non-current derivative liabilities
Non-current debt - Term Facility
Other non-current liabilities
Net balance
December 31, 2023
Canadian dollar
$
Euro
€
Turkish lira
TRY
12,898
14,759
—
2,681
133,305
(97,211)
—
—
(13,707)
52,725
98,566
17,392
414
67,453
—
125,697
350,649
—
—
—
(92,650)
(1,817,969)
(10,917)
(156,194)
(4,652)
(80,588)
—
—
(201,567)
(1,543,190)
Equivalent in U.S. dollars
$
40,014 $
(89,056) $
(52,421)
Other foreign currency net liability exposure is equivalent to $160 U.S. dollars.
Cash and cash equivalents
Accounts receivable and other
Other non-current assets
Investments in marketable securities
Accounts payable and other
Other non-current liabilities
Net balance
December 31, 2022
Canadian dollar
$
Euro
€
Turkish lira
TRY
19,895
10,939
2,680
74,085
(72,690)
(13,468)
21,441
10,567
10,728
51,986
—
(73,345)
(3,870)
(3,934)
33,598
225,605
—
—
(731,913)
(118,793)
(591,503)
Equivalent in U.S. dollars
$
16,180 $
(4,271) $
(31,633)
Other foreign currency net liability exposure is equivalent to $150 U.S. dollars.
Based on the balances as at December 31, 2023, a 1% increase or decrease in the U.S. dollar exchange rate
against all of the other currencies on that date would have resulted in an increase or decrease of
approximately $942 (2022 – $61) in earnings before income tax.
Based on the outstanding foreign exchange forward contracts (Note 27(f)) as at December 31, 2023, a 10%
strengthening (weakening) of the Euro against the U.S. Dollar across the forward curve would result in an
increase (decrease) to earnings before income tax of approximately $17 million.
Cash flows from operations are exposed to foreign exchange risk, as commodity sales are set in U.S. dollars
and a certain amount of operating expenses are in the currency of the country in which mining operations take
place.
(39)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
23. Financial risk management (continued)
b. Metal price and global market risk
The Company is subject to price risk for fluctuations in the market price of gold and the global concentrate
market. Gold and other metals prices are affected by numerous factors beyond the Company’s control,
including central bank sales, demand for concentrate, producer hedging activities, the relative exchange rate of
the U.S. dollar with other major currencies, global and regional demand, changes to import taxes and political
and economic conditions. The commodity price risk associated with financial instruments relates primarily with
the fair value changes caused by final settlement pricing adjustments to trade receivables.
Worldwide gold and other metals production levels also affect their prices, and the price of these metals is
occasionally subject to rapid short-term changes due to speculative activities. From time to time, the Company
may use commodity price contracts to manage its exposure to fluctuations in the price of gold and other
metals.
Other price risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market
prices. This includes equity price risk, whereby the Company’s investments in marketable securities are
subject to market price fluctuation.
In April 2023, in conjunction with the Term Facility, the Company entered into gold and copper commodity swap
contracts, reducing its exposure to fluctuations in future metal prices. The contracts settle on July 7, 2026,
based on the average applicable commodity price over the period of June 1, 2026, to June 30, 2026 (Note
27(d)).
Based on the outstanding gold commodity swap contracts (Note 27(d)) as at December 31, 2023, a $200 per
ounce increase (decrease) in the gold forward curve would result in a decrease (increase) to earnings before
income tax of approximately $6 million.
Based on the outstanding copper commodity swap contracts (Note 27(d)) as at December 31, 2023, a $1,000
per tonne increase (decrease) in the copper forward curve would result in a decrease (increase) to earnings
before income tax of approximately $6 million.
In May 2023, the Company entered into zero-cost gold collars to reduce the risk associated with fluctuations of
the price of gold and to manage cash flow variability during the construction period of Skouries. Under the gold
collars, 16,667 ounces settle monthly during the period from June 2023 through December 2025 (Note 27(c)).
Based on the outstanding gold collars (Note 27(c)) as at December 31, 2023, a $200 per ounce increase
(decrease) in the gold forward curve would result in a decrease (increase) to earnings before income tax of
approximately $15 million ($19 million).
c.
Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to
changes in market interest rates. Current financial assets and financial liabilities are generally not exposed to
interest rate risk because of their short-term nature. Borrowings under the Company's senior notes are at a
fixed interest rate of 6.25%. Borrowings under the Company's revolving credit facility, if drawn, are at variable
rates of interest based on SOFR and expose the Company to interest rate risk. Borrowings under the
Company's Term Facility include amounts at variable rates based on 6 month EURIBOR. To reduce interest
rate risk, the Company has entered into an interest rate swaps covering 70% of the variable interest rate
exposure related to the Term Facility (Note 27(e)).
Based on the outstanding interest rate swaps (Note 27(e)) as at December 31, 2023, a 50 basis point increase
(decrease) in the 6 month EURIBOR forward curve would result in an increase (decrease) to earnings before
income tax of approximately $7 million.
(40)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
23. Financial risk management (continued)
(ii) Credit risk
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the
other party to incur a financial loss. Financial instruments that potentially subject the Company to credit risk
consist of cash and cash equivalents, restricted cash, term deposits, derivative assets and accounts
receivable.
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. In accordance with the Company's short-term investment policy, term deposits and short-term
investments are principally held with high credit quality financial institutions as determined by rating agencies.
The Company invests its cash and cash equivalents in major financial institutions and in government
issuances, according to the Company's short-term investment policy. The Company monitors the credit ratings
of all financial institutions in which it holds cash and investments.
Turkish Lira deposits held at a Turkish banking institution equivalent to $35,000 matured in February 2023,
reducing the Company's exposure to credit risk.
Payment for metal sales is normally in advance or within fifteen days of shipment depending on the buyer.
While the historical level of customer defaults is negligible, which has reduced the credit risk associated with
trade receivables at December 31, 2023, there is no guarantee that buyers, including under exclusive sales
arrangements, will not default on their commitments, which may have an adverse impact on the Company's
financial performance.
(iii) Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in raising funds to meet commitments associated
with financial instruments. The Company manages liquidity by spreading the maturity dates of investments
over time, managing its capital expenditures and operational cash flows, and by maintaining adequate lines of
credit. Management uses a rigorous planning, budgeting and forecasting process to help determine the funds
the Company will need to support ongoing operations and development plans.
The Company's equity commitment for the Skouries project is backstopped by a letter of credit issued under
the Company's revolving credit facility. As at December 31, 2023, after giving effect to investments in the
project to date and including proceeds from the EBRD investment, the amount outstanding under the letter of
credit for Skouries was €126,211 ($139,463) and the Company's available balance on the revolving credit
facility was $110,215. The letter of credit will continue to be reduced Euro for Euro as the Company invests
further in the Skouries project.
Management continues to monitor the Company’s capabilities to meet ongoing debt and other commitments,
including reviewing its operating costs and capital budget to reduce expenditures if required.
Contractual maturities relating to debt and other obligations are included in Note 24. All other financial liabilities
are due within one year.
23.2 Capital risk management
Eldorado’s objective is to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the Company's mining projects. Capital consists of all of the
components of equity which includes share capital from common shares, contributed surplus, accumulated
other comprehensive income (loss), deficit and non-controlling interests.
Eldorado monitors capital on the basis of the debt to capital ratio and net debt to EBITDA. The debt to capital
ratio is calculated as debt, including current and non-current debt, divided by capital plus debt. The net debt to
EBITDA ratio is calculated as debt, including current and non-current debt, less cash, cash equivalents and
term deposits, divided by earnings before interest costs, taxes, depreciation and amortization.
(41)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
24. Commitments and contractual obligations
The Company’s commitments and contractual obligations at December 31, 2023 include:
Debt - senior notes(1)
Debt - Term Facility(1)
Purchase obligations
Leases
Mineral properties
Asset retirement
obligations
2024
2025
2026
2027
2028 and later
Total
$
— $
—
— $
— $
— $
500,000 $
500,000
—
78,453
75,184
18,958
172,595
23,651
7,016
8,003
1,284
4,077
8,063
—
2,845
8,087
—
2,199
3,356
—
6,980
479
24,935
23,117
27,988
4,019
1,917
958
—
205,815
212,709
$
42,689 $
15,341 $
90,343 $
80,739 $
732,232 $
961,344
(1) Does not include interest on debt.
Debt obligations represent required repayments of principal for the senior notes.
Purchase obligations relate primarily to operating costs at mines and capital projects at Kişladağ and Skouries.
Mineral properties refer to arrangements for the use of land that grant the Company the right to explore,
develop, produce or otherwise use the mineral resources contained in that land.
As at December 31, 2023, Hellas Gold had entered into off-take agreements pursuant to which Hellas agreed
to sell a total of 10,250 dry metric tonnes of zinc concentrate, 14,500 dry metric tonnes of lead/silver
concentrate, and 349,000 dry metric tonnes of gold concentrate. As at December 31, 2023, Tüprag had
entered into off-take agreements pursuant to which Tüprag agreed to sell a total of 96,000 dry metric tonnes of
gold concentrate.
In April 2007, Hellas agreed to sell to Silver Wheaton (Caymans) Ltd., a subsidiary of Wheaton Precious
Metals Corp. (“Wheaton Precious Metals”) all of the payable silver contained in lead concentrate produced
within an area of approximately seven square kilometres around Stratoni. The sale was made in consideration
of a prepayment to Hellas of $57,500 in cash, plus a fixed price per ounce of payable silver to be delivered
based on the lesser of $3.83 and the prevailing market price per ounce, adjusted higher by 1% every year. The
agreement was amended in October 2015, to provide for increases in the fixed price paid by Wheaton
Precious Metals upon completion of certain expansion drilling milestones. 30,000 metres of expansion drilling
was reached during the second quarter of 2020 and in accordance with the terms of the agreement, the fixed
price has been adjusted by an additional $2.00 per ounce. Accordingly, the fixed price from April 1, 2022 is
equal to $11.66 per ounce.
Based on current Turkish legislation, the Company pays annual royalties to the Government of Turkiye on
revenue less certain costs associated with ore haulage, mineral processing and related depreciation. Royalties
are calculated on the basis of a sliding scale according to the average London Metal Exchange gold price
during the calendar year. Based on current Greek legislation, the Company pays royalties on revenue that are
calculated on a sliding scale tied to international gold and base metal prices and the EUR:USD exchange rate.
(42)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
25. Contingencies
Due to the size, complexity and nature of the Company’s operations, various legal, tax, environmental and
regulatory matters are outstanding from time to time. By their nature, contingencies will only be resolved when
one or more future events occur or fail to occur. While the outcomes of these matters are uncertain, based
upon the information currently available, the Company does not believe that these matters in aggregate will
have a material adverse effect on its consolidated financial position, cash flows or results of operations. In the
event that management’s estimate of the future resolution of these matters changes, the Company will
recognize the effects of these changes in its consolidated financial statements in the appropriate period relative
to when such changes occur. As at December 31, 2023, the amount of ultimate liability with respect to these
actions will not, in the opinion of management, materially affect Eldorado’s consolidated financial position,
results of operations or cash flows. Accordingly, no amounts have been accrued as at December 31, 2023.
26. Related party transactions
Key management includes directors (executive and non-executive), officers and senior management. The
compensation paid or payable to key management for employee services, including amortization of share-
based payments, is shown in the table below. In 2023, the salaries and other short-term employee benefits
paid or payable to key management are $8,586 (2022 – $9,008), which is included in total employee benefits
of $37,483 (2022 – $34,973) recognized in general and administrative expenses, employee benefit plan
expenses and share-based compensation expenses in the statements of operations.
Salaries and other short-term employee benefits
Employee benefit plan
Share-based payments
Termination benefits
$
$
2023
8,586
$
494
5,886
3,536
2022
9,008
472
7,450
1,413
18,502
$
18,343
(43)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
27. Derivative financial instruments
Foreign currency collars
Euro forward contracts
Interest rate swaps
Foreign currency forward contracts
Total derivative assets
Classified as:
Current
Non-current
Euro forward contracts
Gold collars
Gold commodity swaps
Copper commodity swaps
Interest rate swaps
Total derivative liabilities
Classified as:
Current
Non-current
December 31, 2023
December 31, 2022
$
$
1,338
$
1,513
458
6,229
9,538
$
—
—
—
—
—
December 31, 2023
December 31, 2022
$
$
2,502
$
7,036
9,538
$
—
—
—
December 31, 2023
December 31, 2022
$
35
$
3,026
2,966
1,032
12,063
$
19,122
$
—
—
—
—
—
—
December 31, 2023
December 31, 2022
$
$
279
$
18,843
19,122
$
—
—
—
(44)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
27. Derivative financial instruments (continued)
(a) Foreign Currency Collars
During 2023, the Company entered into zero-cost collars (purchase of a put option and sale of a call option) to
reduce the risk associated with fluctuations of the Euro and Canadian dollar at Olympias and Lamaque,
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. These derivatives are not designated as
hedging instruments. Changes in the fair value of the foreign currency collars are recorded in other income and
expense.
As at December 31, 2023, the Company's outstanding foreign currency collars were as follows:
Canadian dollar collars
Canadian dollar contracts
Weighted average put strike price (USD:CDN)
Weighted average call strike price (USD:CDN)
Euro collars
Euro contracts
Weighted average put strike price (EUR:USD)
Weighted average call strike price (EUR:USD)
2024
US$108,000
1.30
1.44
€78,000
1.14
1.03
Canadian dollar collars totalling US$96,000 and Euro collars totalling €75,400 expired in the year ended
December 31, 2023 without financial settlement.
Opening derivative asset (liability)
Change in fair value
Settlements
Closing derivative asset (liability)
Year ended December 31,
$
$
2023
—
$
1,346
(8)
1,338
$
2022
—
—
—
—
(45)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
27. Derivative financial instruments (continued)
(b) Euro Forward Contracts
In August 2023, the Company entered into foreign exchange forward contracts to fix the U.S. Dollar to Euro
exchange rate for a portion of the Company’s equity commitment for the Skouries project. From June 30, 2024
to May 31, 2025, €5,000 will be delivered to the Company every month at a forward rate of EUR/USD 1.1160.
In October 2023, the Company entered into additional foreign exchange forward contracts to fix the U.S. Dollar
to Euro exchange rate. From June 2024 to May 2025, €2,500 will be delivered to the Company every month at
a forward rate of EUR/USD 1.0785.
The foreign currency forward contracts have not been designated as hedging instruments. Changes in the fair
value of the foreign currency forward contracts will be recorded in other income (expense). Changes in the fair
value of foreign currency forward contracts outstanding during the year ended December 31, 2023 were as
follows:
Opening derivative asset (liability)
Change in fair value
Closing derivative asset (liability)
(c) Gold Collars
Year ended December 31,
$
$
2023
—
$
1,478
1,478
$
2022
—
—
—
In May 2023, the Company entered into zero-cost collars (purchase of a put option and sale of a call option) to
reduce the risk associated with fluctuations of the price of gold and to manage cash flow variability during the
construction period of Skouries. These derivatives set a band within which the Company expects to be able to
protect against gold price movements, either above or below specific strike prices. Under the gold collars,
16,667 ounces settle monthly during the period from June 2023 through December 2025.
These derivatives are not designated as hedging instruments. Changes in the fair value of the gold collars are
recorded in other income (expense).
As at December 31, 2023, the Company's outstanding gold collars were as follows:
Gold ounces
Weighted average put strike price per ounce
Weighted average call strike price per ounce
2024
2025
200,004
US$1,800
US$2,765
200,004
US$1,900
US$2,667
Changes in the fair value of gold collars outstanding during the year ended December 31, 2023 were as follows:
Opening derivative asset (liability)
Change in fair value
Closing derivative asset (liability)
Year ended December 31,
$
$
2023
—
$
(3,026)
(3,026) $
2022
—
—
—
Gold collars totalling 116,669 ounces expired during the year ended December 31, 2023 without financial
settlement.
(46)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
27. Derivative financial instruments (continued)
(d) Gold and Copper Commodity Swaps
In April 2023, in conjunction with the Term Facility, the Company entered into gold and copper commodity swap
contracts for settlement on July 7, 2026 based on the average applicable commodity price over the period of
June 1, 2026 to June 30, 2026. The gold commodity swap contracts total 32,000 ounces at a forward price of
US$2,160 per ounce and will be financially settled. The copper commodity swap contracts total 6,160 tonnes of
copper at a forward price of US$8,525 per tonne and will be financially settled.
These derivatives have not been designated as hedging instruments. Changes in the fair value of the gold and
copper forward sales contracts are recorded in other income (expense).
Changes in the fair value of gold commodity swaps outstanding during the year ended December 31, 2023
were as follows:
Gold commodity swaps
Opening derivative asset (liability)
Change in fair value
Closing derivative asset (liability)
Year ended December 31,
$
$
2023
—
$
(2,966)
(2,966) $
2022
—
—
—
Changes in the fair value of copper commodity swaps outstanding during the year ended December 31, 2023
were as follows:
Copper commodity swaps
Opening derivative asset (liability)
Change in fair value
Closing derivative asset (liability)
Year ended December 31,
$
$
2023
—
$
(1,032)
(1,032) $
2022
—
—
—
(47)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
27. Derivative financial instruments (continued)
(e) Interest Rate Swaps
In April 2023, in conjunction with the Term Facility, the Company entered into interest rate swaps covering 70%
of the variable interest rate exposure under the six-months EURIBOR index. The interest rate swaps have a
fixed rate of 3.11% and mature on December 31, 2032. The interest payment frequency is every six months.
The interest rate swaps have not been designated as hedging instruments. Changes in the fair value of the
interest rate swaps are recorded in other income and expense.
Changes in the fair value of interest rate swaps outstanding during the year ended December 31, 2023 were
as follows:
Opening derivative asset (liability)
Change in fair value
Settlements
Closing derivative asset (liability)
Year ended December 31,
$
$
2023
—
$
(11,182)
(423)
(11,605) $
2022
—
—
—
—
During the year ended December 31, 2023, interest rate swap settlements resulted in realized derivative cash
gains of $423 for the Company.
(f) Foreign Currency Forward Contracts
In April 2023, in conjunction with the Term Facility, the Company entered into foreign exchange forward
contracts to fix the U.S. Dollar to Euro exchange rate for a portion of the Term Facility repayments. From June
30, 2026 to December 31, 2029, €17,000 will be delivered to the Company every six months at an average
forward rate of EUR/USD 1.1473. From June 28, 2030 to December 30, 2032, €11,350 will be delivered to the
Company every six months at an average forward rate of EUR/USD 1.1704.
The foreign currency forward contracts have not been designated as hedging instruments. Changes in the fair
value of the foreign currency forward contracts will be recorded in other income (expense).
Changes in the fair value of foreign currency forward contracts outstanding during the year ended December
31, 2023 were as follows:
Year ended December 31,
Opening derivative asset (liability)
Change in fair value
Closing derivative asset (liability)
$
$
2023
—
$
6,229
6,229
$
2022
—
—
—
(48)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
28. Financial instruments by category
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).
The following table provides the carrying value and fair value of financial instruments at December 31, 2023
and December 31, 2022:
Cash and cash equivalents (1)
Term deposits (1)
Restricted cash (1)
Other receivables and deposits (1)
Other assets (1)
Marketable securities (2)
Investments in debt securities (3)
Settlement receivables (4)
Redemption option derivative asset (5)
Turkish Lira deposits (6)
Accounts payable and accrued
liabilities (1)
Senior notes, excluding derivative
asset (7)
Term facility - commercial loans (8)
Term facility - RRF loans (8)
Term facility - revolving VAT facility (8)
Foreign currency collars - assets (9)
Euro forward contracts - assets (10)
Euro forward contracts - liabilities (10)
Gold collars - liabilities (11)
Gold commodity swaps - liabilities (12)
Copper commodity swaps - liabilities
(12)
Interest rate swaps - assets (13)
Interest rate swaps - liabilities (13)
Foreign currency forward contracts -
assets (14)
Net financial assets (liabilities)
December 31, 2023
December 31, 2022
Carrying amount
Level 1(15)
Level 2
Fair
value
Carrying amount
Level 1(15)
Level 2
Fair
value
$ 540,473 $
1,136
2,085
21,670
170
100,794
8,004
—
—
—
— $ 540,473
1,136
—
2,085
—
21,670
—
—
170
— 100,794
8,004
—
49,387
49,387
5,635
5,635
—
—
$ 279,735 $
—
2,052
14,999
170
54,706
7,043
—
—
—
— $ 279,735
—
—
2,052
—
14,999
—
170
—
54,706
—
7,043
—
33,393
33,393
3,676
3,676
35,000
35,000
(202,933)
— (202,933)
(162,799)
— (162,799)
— (498,326) (471,600)
— (100,890) (100,890)
(39,209)
—
(3,269)
—
1,338
—
1,513
—
(35)
—
(3,026)
—
(2,966)
—
(39,209)
(3,269)
1,338
1,513
(35)
(3,026)
(2,966)
—
—
—
(1,032)
458
(12,063)
(1,032)
458
(12,063)
—
6,229
6,229
— (498,090) (437,400)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
$ 471,399 $ (596,256) $ (98,131) $ 195,906 $ (426,021) $ (169,425)
(49)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
28. Financial instruments by category (continued)
(1) These assets and liabilities are carried at amortized cost and approximate fair values due to their short-term maturities.
(2) Marketable securities include publicly-traded equity investments classified as fair value through other comprehensive income.
(3)
Investments in debt securities include publicly-traded debt securities classified as fair value through other comprehensive income.
(4) Settlement receivables arise from provisional pricing in contracts for the sale of metals in concentrate classified as fair value through
profit and loss with fair value determined based on forward metal prices for the quotational period. Changes in fair value are recorded
in revenue.
(5) The redemption option derivative asset associated with the senior secured notes is an embedded derivative separately recognized to
reflect the redemption features of the senior notes and is classified as fair value through profit and loss (Note 16) with fair value based
on models using observable interest rate inputs. Changes in fair value are recorded in finance costs.
(6) Turkish Lira deposits, included in term deposits, were protected from the weakening of the Turkish Lira against the U.S. dollar are
measured at fair value through profit and loss using an observable foreign exchange rate. There were no changes in the fair value in
the year ended December 31, 2022. The deposits matured in February 2023.
(7) Senior notes, excluding the redemption option derivative asset (Note 16), is carried at amortized cost. The fair value of the senior
secured notes is based on observable prices in inactive markets.
(8) The term facility (Note 16) is carried at amortized cost. The fair value of the term facility approximates the carrying amount.
(9) Canadian dollar and Euro zero-cost collars classified as fair value through profit and loss (Note 27(a)) with fair value based on
observable forward foreign exchange rates.
(10) Euro forward contracts classified as fair value through profit and loss (Note 27(b)) with fair value based on observable forward foreign
exchange rates.
(11) Gold zero-cost collars classified as fair value through profit and loss (Note 27(c)) with fair value based on observable forward metal
prices.
(12) Gold and copper commodity swaps classified as fair value through profit and loss (Note 27(d)) with fair value based on observable
forward metal prices.
(13) Interest rate swaps classified as fair value through profit and loss (Note 27(e)) with fair value based on observable forward interest
rates.
(14) U.S. dollar to Euro forward contracts classified as fair value through profit and loss (Note 27(f)) with fair value based on observable
forward foreign exchange rates.
(15) The fair value of financial instruments traded in active markets are based on quoted market prices at the date of the statements 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.
There were no amounts transferred between levels of the fair value hierarchy for the years ended
December 31, 2023 and 2022. For all other financial instruments, carrying amounts approximate fair value.
(50)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
29. Revenue
For the year ended December 31, 2023, revenue from contracts with customers by product and segment was
as follows:
Gold revenue - doré
Gold revenue - concentrate
Silver revenue - doré
Silver revenue - concentrate
Lead concentrate
Zinc concentrate
Revenue from contracts with customers
Gain on revaluation of derivatives in trade
receivables - gold
Loss on revaluation of derivatives in trade
receivables - other metals
Turkiye
Canada
Greece
Total
$
301,692
$
344,614
$
—
$
646,306
165,087
3,115
4,428
—
—
—
1,701
—
—
—
112,290
277,377
—
32,608
25,456
19,108
4,816
37,036
25,456
19,108
$
474,322
$
346,315
$
189,462
$ 1,010,099
1,027
—
—
—
436
1,463
(3,061)
(3,061)
$
475,349
$
346,315
$
186,837
$ 1,008,501
For the year ended December 31, 2022, revenue from contracts with customers by product and segment was
as follows:
Gold revenue - doré
Gold revenue - concentrate
Silver revenue - doré
Silver revenue - concentrate
Lead concentrate
Zinc concentrate
Revenue from contracts with customers
Gain (loss) on revaluation of derivatives in
trade receivables - gold
Gain on revaluation of derivatives in trade
receivables - other metals
Turkiye
Canada
Greece
Total
$
240,452
$
311,547
$
—
$
551,999
151,614
2,804
3,257
—
—
—
1,415
—
—
—
91,145
242,759
—
20,200
18,659
30,368
4,219
23,457
18,659
30,368
$
398,127
$
312,962
$
160,372
$
871,461
475
—
—
—
(1,085)
(610)
1,133
1,133
$
398,602
$
312,962
$
160,420
$
871,984
(51)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
30. Production costs
Labour
Fuel
Reagents
Electricity
Mining contractors
Operating and maintenance supplies and services
Support costs
Royalties and selling expenses
31. Mine standby costs
Stratoni (1)
Skouries (2)
Other mine standby costs
December 31, 2023
December 31, 2022
$
99,680
$
17,306
48,669
23,201
45,364
129,565
40,949
74,213
$
478,947
$
90,460
24,430
45,442
31,729
39,708
104,272
53,669
69,876
459,586
December 31, 2023
December 31, 2022
$
$
11,507
—
4,599
16,106
$
$
24,245
7,782
2,340
34,367
(1) Operations were suspended at Stratoni at the end of 2021 and the mine and plant were placed on care and maintenance during 2022.
(2) A decision was made in December 2022 to re-start the construction of Skouries, conditional upon the initial drawdown of the Term
Facility (Note 16 (a)); Skouries is no longer considered to be on care and maintenance as at December 31, 2023.
32. Earnings (loss) earnings per share
The weighted average number of common shares for the purposes of diluted earnings (loss) per share
reconciles to the weighted average number of common shares used in the calculation of basic earnings (loss)
per share as follows:
Weighted average number of common shares used in the
calculation of basic earnings (loss) per share
Dilutive impact of share options
Dilutive impact of restricted share units and restricted share
units with performance criteria
Dilutive impact of performance share units
Weighted average number of common shares used in the
calculation of diluted earnings (loss) per share
December 31, 2023
December 31, 2022
194,448,367
503,751
369,969
6,419
183,445,861
—
—
—
195,328,506
183,445,861
As at December 31, 2023, 1,873,502 options (2022 – 2,765,436) were excluded from the dilutive weighted-
average number of common shares calculation because their effect would have been anti-dilutive.
As the year ended December 31, 2022 was in a net loss position, 533,971 share options, 264,835 RSU's and
RSU's with performance criteria, and 35,232 PSU's were anti-dilutive.
(52)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
33. 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 December 31, 2023, 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 Kişladağ and the Efemçukuru mines and exploration activities in Turkiye. The Canada
reporting segment includes Lamaque 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, and is
classified as a disposal group held for sale at December 31, 2023. 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 each of the reporting segments share similar economic characteristics and have been
aggregated accordingly.
(53)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
33. Segment information (continued)
As at and for the year ended December 31,
2023
Turkiye
Canada
Greece Romania*
Other
Total
Earnings and loss information
Revenue
Production costs
$ 475,349 $ 346,315 $ 186,837 $
— $
— $ 1,008,501
Depreciation and amortization
121,640
78,861
60,586
202,927 119,485
156,535
—
—
—
478,947
—
261,087
Earnings (loss) from mine operations
$ 150,782 $ 147,969 $
(30,284) $
— $
— $ 268,467
Other significant items of income and
expense
Write-down of assets
$
1,768 $
— $
7,951 $
— $
— $
9,719
Exploration and evaluation expenses
8,625
11,076
705
Mine standby costs
—
3,117
12,989
Income tax expense (recovery)
42,471
34,181
(15,387)
—
—
—
2,016
22,422
—
16,106
(3,690)
57,575
Loss from discontinued operations, net of tax
attributable to shareholders of the Company
—
—
—
(1,553)
—
(1,553)
Capital expenditure information
Additions to property, plant and equipment
during the year (**)
$ 120,113 $ 96,918 $ 180,881 $
— $ 13,251 $ 411,163
Capitalized interest
—
—
17,087
—
—
17,087
Information about assets and liabilities
Property, plant and equipment
$ 831,756 $ 729,685 $ 2,179,782 $
— $ 14,336 $ 3,755,559
Goodwill
Debt
—
92,591
—
—
—
92,591
$ 831,756 $ 822,276 $ 2,179,782 $
— $ 14,336 $ 3,848,150
$
— $
— $ 143,368 $
— $ 492,691 $ 636,059
* Discontinued Operations (Note 6).
** Presented on an accrual basis; excludes asset retirement adjustments. Excludes capital expenditure from discontinued operations.
(54)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and December 31, 2022
(Currency amounts in thousands, unless otherwise stated except share and per share amounts)
33. Segment information (continued)
As at and for the year ended December 31,
2022
Turkiye
Canada
Greece Romania*
Other
Total
Earnings and loss information
Revenue
Production costs
$ 398,602 $ 312,962 $ 160,420 $
— $
— $ 871,984
Depreciation and amortization
116,076
71,974
52,135
193,214 116,723
149,649
—
—
—
459,586
—
240,185
Earnings (loss) from mine operations
$ 89,312 $ 124,265 $
(41,364) $
— $
— $ 172,213
Other significant items of income and
expense
Write-down (reversal) of assets
$ 33,143 $
— $
(1,325) $
— $
681 $
32,499
Exploration and evaluation expenses
4,180
12,363
749
—
—
34,367
—
—
2,343
19,635
—
34,367
30,366
31,441
13,924
—
(14,507)
61,224
Mine standby costs
Income tax expense
Loss from discontinued operations, net of tax
attributable to shareholders of the Company
—
—
— (304,648)
—
(304,648)
Capital expenditure information
Additions to property, plant and equipment
during the year (**)
Information about assets and liabilities
$ 128,797 $ 80,839 $
82,989 $
— $ 13,185 $ 305,810
Property, plant and equipment
$ 823,125 $ 711,178 $ 2,046,759 $
— $ 15,200 $ 3,596,262
Goodwill
Debt
—
92,591
—
—
—
92,591
$ 823,125 $ 803,769 $ 2,046,759 $
— $ 15,200 $ 3,688,853
$
— $
— $
— $
— $ 494,414 $ 494,414
* Discontinued Operations (Note 6).
** Presented on an accrual basis; excludes asset retirement adjustments. Excludes capital expenditure from discontinued operations.
The Turkiye segment derives its revenues from sales of gold and silver. The Greece segment derives its
revenue from sales of gold, zinc and lead-silver concentrates. The Canadian segment derives its revenue from
sales of gold and silver. For the year ended December 31, 2023, revenue from one customer of the Company’s
Turkiye segment represents approximately $301,692 (2022 – $243,257) of the Company’s total revenue. For
the Company's Canadian segment, one customer accounted for revenue of $338,189 (2022 – $311,056) of the
Company’s total revenue. Additionally, $82,558 of revenue (2022 – $90,650) from the Company's Turkiye and
Greece segments was derived from a third customer.
(55)