Consolidated Financial Statements
December 31, 2024 and 2023
(Expressed in U.S. dollars unless otherwise noted)
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,
2024, 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, 2024 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, 2024 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 20, 2025
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, 2024 and 2023, 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, 2024 and 2023, 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, 2024,
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 20, 2025 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.
Assessment of the recoverable amount of the Olympias cash-generating unit
As discussed in Note 3.7 to the consolidated financial statements, non-financial assets which include property,
plant and equipment are reviewed each reporting period for impairment or impairment reversal. When an
indicator of impairment or reversal of impairment exists, the Company determines the recoverable amount of
the cash-generating unit (CGU) to determine whether an impairment loss or reversal of impairment should be
recognized. As discussed in Note 12 to the consolidated financial statements, the Company identified an
indicator of impairment reversal for the Olympias mine and performed an impairment test of the Olympias CGU.
The Company determined the recoverable amount of the Olympias CGU as of December 31, 2024 and the
assessment indicated that no impairment reversal was required.
We identified the assessment of the recoverable amount of the Olympias CGU to be a critical audit matter. A
high degree of auditor judgment was required to evaluate the inputs used to estimate the recoverable amount.
Significant assumptions used in the determination of the recoverable amount included long-term metal prices,
future production levels including the amount of recoverable reserves, resources and exploration potential,
operating and capital costs, discount rates, and estimates of the fair value of mineral properties beyond proven
and probable reserves. Changes in any of these assumptions could have had a significant effect on the
determination of the estimated recoverable amount.
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 process to
determine the recoverable amount of the CGU. This included controls over the Company’s development of the
significant assumptions used to estimate the recoverable amount of the Olympias CGU. We evaluated the
competence, experience and objectivity of the qualified persons responsible for the recoverable reserves,
resources and exploration potential information. We compared the amount of reserves and resources in the
valuation model to the mine plan and to the updated mineral reserves and resources information. We compared
the Company’s mine plan and operating results to actual results to assess the accuracy of the Company’s
forecasting process. We evaluated the Company’s mineral reserves and resources by analyzing changes from
the prior year. We compared estimated operating and capital costs in the valuation model to the mine plan and
to historical expenditures. We involved valuation professionals with specialized skills and knowledge, who
assisted in (1) assessing the long-term metal prices by comparing to third party data; and (2) evaluating the
discount rates, and the estimates of the fair value of mineral properties beyond proven and probable reserves
by assessing the Company’s approach to determining these assumptions and comparing them to independent
sources and market data for comparable entities where available.
/s/ KPMG LLP
Chartered Professional Accountants
We have served as the Company’s auditor since 2009.
Vancouver, Canada
February 20, 2025
\
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, 2024, 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, 2024, 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,
2024 and 2023, 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 20, 2025, 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 20, 2025
Note
December 31, 2024
December 31, 2023
ASSETS
Current assets
Cash and cash equivalents
7
$
856,797
$
540,473
Accounts receivable and other
8
190,676
121,082
Inventories
9
278,995
235,890
Current other assets
10
138,932
2,832
Current derivative assets
28
52
2,502
Assets held for sale
6
16,686
27,627
1,482,138
930,406
Restricted cash
2,177
2,085
Deferred tax assets
19,487
14,748
Other assets
10
120,418
185,209
Non-current derivative assets
28
—
7,036
Property, plant and equipment
12
4,118,782
3,755,559
Goodwill
13
92,591
92,591
$
5,835,593
$
4,987,634
LIABILITIES & EQUITY
Current liabilities
Accounts payable and accrued liabilities
15
$
366,690
$
254,030
Current portion of lease liabilities
4,693
5,020
Current portion of asset retirement obligations
17
5,071
4,019
Current derivative liabilities
28
25,587
279
Liabilities associated with assets held for sale
6
10,133
10,867
412,174
274,215
Debt
16
915,425
636,059
Lease liabilities
10,030
12,092
Employee benefit plan obligations
10,910
10,261
Asset retirement obligations
17
127,925
125,090
Non-current derivative liabilities
28
35,743
18,843
Deferred income tax liabilities
434,939
399,109
1,947,146
1,475,669
Equity
Share capital
21
3,433,778
3,413,365
Treasury stock
(12,970)
(19,263)
Contributed surplus
2,612,762
2,617,216
Accumulated other comprehensive income (loss)
56,183
(4,751)
Deficit
(2,193,163)
(2,488,420)
Total equity attributable to shareholders of the Company
3,896,590
3,518,147
Attributable to non-controlling interests
(8,143)
(6,182)
3,888,447
3,511,965
$
5,835,593
$
4,987,634
Commitments and contractual obligations (Note 25)
Contingencies (Note 26)
Subsequent events (Note 10(i), Note 16(b))
Approved on behalf of the Board of Directors
(signed) Teresa Conway Director
(signed) George Burns Director
Date of approval: February 20, 2025
Eldorado Gold Corporation
Consolidated Statements of Financial Position
As at December 31, 2024 and December 31, 2023
(In thousands of U.S. dollars)
(1)
The accompanying notes are an integral part of these consolidated financial statements.
Note
Year ended
Year ended
December 31, 2024
December 31, 2023
Revenue
Metal sales
30
$
1,322,581
$
1,008,501
Cost of sales
Production costs
31
564,158
478,947
Depreciation and amortization
251,450
261,087
815,608
740,034
Earnings from mine operations
506,973
268,467
Exploration and evaluation expenses
23,788
22,422
Mine standby costs
32
11,269
16,106
General and administrative expenses
36,240
39,788
Employee benefit plan expense
3,584
4,228
Share-based payments expense
22
11,872
10,195
Write-down of assets
6,135
9,719
Foreign exchange gain
(5,308)
(16,000)
Earnings from operations
419,393
182,009
Other income
18
39,050
14,195
Finance costs
19
(23,049)
(32,839)
Earnings from continuing operations before income tax
435,394
163,365
Income tax expense
20
134,758
57,575
Net earnings from continuing operations
300,636
105,790
Net loss from discontinued operations, net of tax
6
(13,676)
(4,407)
Net earnings for the year
$
286,960
$
101,383
Net earnings (loss) attributable to:
Shareholders of the Company
289,121
104,630
Non-controlling interests
(2,161)
(3,247)
Net earnings for the year
$
286,960
$
101,383
Net earnings (loss) attributable to shareholders of the Company:
Continuing operations
300,909
106,183
Discontinued operations
(11,788)
(1,553)
$
289,121
$
104,630
Net loss attributable to non-controlling interests:
Continuing operations
(273)
(393)
Discontinued operations
(1,888)
(2,854)
$
(2,161)
$
(3,247)
Weighted average number of shares outstanding:
Basic
33
203,983,457
194,448,367
Diluted
33
205,541,542
195,328,506
Net earnings per share attributable to shareholders of the
Company:
Basic earnings per share
$
1.42
$
0.54
Diluted earnings per share
$
1.41
$
0.54
Net earnings per share attributable to shareholders of the
Company - Continuing operations:
Basic earnings per share
$
1.48
$
0.55
Diluted earnings per share
$
1.46
$
0.54
Eldorado Gold Corporation
Consolidated Statements of Operations
For the years ended December 31, 2024 and December 31, 2023
(In thousands of U.S. dollars except share and per share amounts)
(2)
The accompanying notes are an integral part of these consolidated financial statements.
Year ended
Year ended
December 31, 2024
December 31, 2023
Net earnings for the year
$
286,960
$
101,383
Other comprehensive income (loss):
Items that will not be reclassified to earnings or (loss):
Change in fair value of investments in marketable securities
77,695
44,437
Income tax expense on change in fair value of investments in
marketable securities
(10,463)
(3,449)
Actuarial losses on employee benefit plans
(206)
(4,476)
Income tax recovery on actuarial losses on employee benefit plans
44
1,021
Total other comprehensive income for the period
67,070
37,533
Total comprehensive income for the year
$
354,030
$
138,916
Attributable to:
Shareholders of the Company
356,191
142,163
Non-controlling interests
(2,161)
(3,247)
$
354,030
$
138,916
Eldorado Gold Corporation
Consolidated Statements of Comprehensive Income (Loss)
For the years ended December 31, 2024 and December 31, 2023
(In thousands of U.S. dollars)
(3)
The accompanying notes are an integral part of these consolidated financial statements.
Note
Year ended
Year ended
December 31, 2024
December 31, 2023
Cash flows generated from (used in):
Operating activities
Net earnings for the year from continuing operations
$
300,636
$
105,790
Adjustments for:
Depreciation and amortization
254,991
264,325
Finance costs
19
23,049
32,839
Interest income
18
(23,949)
(17,640)
Unrealized foreign exchange loss (gain)
174
(15,167)
Income tax expense
20
134,758
57,575
(Gain) loss on disposal of assets
(1,624)
605
Unrealized loss on derivative contracts
18
51,751
9,584
Realized gain on derivative contracts
18
(150)
(431)
Write-down of assets
6,135
9,719
Share-based payments expense
22
11,872
10,195
Non-cash gain on deferred consideration
8
(60,000)
—
Employee benefit plan expense
3,584
4,228
701,227
461,622
Property reclamation payments
(3,688)
(3,591)
Employee benefit plan payments
(3,003)
(5,084)
Settlement of derivative contracts
18
150
431
Income taxes paid
(83,162)
(59,839)
Interest received
23,949
17,640
Changes in non-cash operating working capital
23
10,189
(28,282)
Net cash generated from operating activities of continuing operations
645,662
382,897
Net cash (used in) generated from operating activities of discontinued
operations
(416)
414
Investing activities
Additions to property, plant and equipment
(594,142)
(401,870)
Capitalized interest paid
(30,461)
(10,782)
Proceeds from the sale of property, plant and equipment
562
1,647
Value added taxes related to mineral property expenditures
(9,756)
(17,906)
Proceeds from the sale of mining licenses
5,600
—
Purchase of marketable securities and investment in debt securities
(11,416)
(633)
Proceeds from the sale of investments in marketable and debt securities
10,277
—
Deposit on property, plant and equipment
(5,098)
—
Decrease in other investments
3,826
33,864
Net cash used in investing activities of continuing operations
(630,608)
(395,680)
Financing activities
Issuance of common shares for cash, net of share issuance costs
14,112
168,664
Contributions from non-controlling interests
201
265
Proceeds from Term Facility - commercial loans and RRF loans
16
310,918
166,738
Proceeds from Term Facility - VAT facility
16
56,022
14,588
Repayments of Term Facility - VAT facility
16
(47,304)
(11,328)
Term Facility loan financing costs
—
(22,084)
Term Facility commitment fees
(3,806)
(5,066)
Senior Secured Credit Facility refinancing costs
(2,210)
—
Interest paid
(19,905)
(29,490)
Principal portion of lease liabilities
(4,796)
(3,968)
Purchase of treasury stock
(1,962)
(4,442)
Net cash generated from financing activities of continuing operations
301,270
273,877
Net increase in cash and cash equivalents
315,908
261,508
Cash and cash equivalents - beginning of year
540,473
279,735
Change in cash in disposal group held for sale
416
(770)
Cash and cash equivalents - end of year
$
856,797
$
540,473
Eldorado Gold Corporation
Consolidated Statements of Cash Flows
For the years ended December 31, 2024 and December 31, 2023
(In thousands of U.S. dollars)
(4)
The accompanying notes are an integral part of these consolidated financial statements.
Note
Year ended
Year ended
December 31, 2024
December 31, 2023
Share capital
Balance beginning of year
$
3,413,365
$
3,241,644
Shares issued upon exercise of share options
14,112
7,390
Shares issued upon exercise of performance share units
499
—
Transfer of contributed surplus on exercise of options
5,802
3,112
Shares issued in private placements, net of share issuance costs
—
59,873
Shares issued to the public, net of share issuance costs
—
101,346
Balance end of year
21
$
3,433,778
$
3,413,365
Treasury stock
Balance beginning of year
$
(19,263)
$
(20,454)
Purchase of treasury stock
(1,962)
(4,442)
Shares redeemed upon exercise of restricted share units
8,255
5,633
Balance end of year
$
(12,970)
$
(19,263)
Contributed surplus
Balance beginning of year
$
2,617,216
$
2,618,212
Share-based payment arrangements
10,102
7,749
Shares redeemed upon exercise of restricted share units
(8,255)
(5,633)
Shares redeemed upon exercise of performance share units
(499)
—
Transfer to share capital on exercise of options
(5,802)
(3,112)
Balance end of year
$
2,612,762
$
2,617,216
Accumulated other comprehensive income (loss)
Balance beginning of year
$
(4,751)
$
(42,284)
Other comprehensive income for the year attributable to
shareholders of the Company
67,070
37,533
Reclassification of fair value gains on sale of equity investments,
net of tax
(6,136)
—
Balance end of year
$
56,183
$
(4,751)
Deficit
Balance beginning of year
$
(2,488,420)
$
(2,593,050)
Net earnings attributable to shareholders of the Company
289,121
104,630
Reclassification of fair value gains on sale of equity investments,
net of tax
6,136
—
Balance end of year
$
(2,193,163)
$
(2,488,420)
Total equity attributable to shareholders of the Company
$
3,896,590
$
3,518,147
Non-controlling interests
Balance beginning of year
$
(6,182)
$
(3,200)
Loss attributable to non-controlling interests
(2,161)
(3,247)
Contributions from non-controlling interests
200
265
Balance end of year
$
(8,143)
$
(6,182)
Total equity
$
3,888,447
$
3,511,965
Eldorado Gold Corporation
Consolidated Statements of Changes in Equity
For the years ended December 31, 2024 and December 31, 2023
(In thousands of U.S. dollars)
(5)
The accompanying notes are an integral part of these consolidated financial statements.
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 and principal address is located at 550 Burrard Street, Suite 1188, Vancouver,
British Columbia, Canada, V6C 2B5.
2. Basis of preparation
Statement of compliance
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 judgements, estimates and assumptions that affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. The
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.
Certain prior period balances were reclassified between financial statement line items in the consolidated
statement of financial position to conform with the presentation adopted in the current period.
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 20, 2025.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(6)
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, 2024 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
Stratoni Mine
Skouries Project
Eldorado Gold (Québec) Inc.
Canada
100%
Lamaque Complex
Thracean Mining Single Member SA
Greece
100%
Perama Hill Project
Thrace Minerals SA
Greece
100%
Sapes Project
Deva Gold SA ("Deva") (1)
Romania
80.5%
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.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(7)
3. Material accounting policies (continued)
3.1 Basis of presentation and principles of consolidation (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).
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(8)
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 higher
confidence 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.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(9)
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.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(10)
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.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(11)
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 or impairment reversal whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. When an indicator of impairment or reversal of impairment exists, the
Company determines the recoverable amount of the CGU to determine whether an impairment loss or reversal
of impairment should be recognized.
An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable
amount. For property, plant and equipment, a previously recognized impairment loss is reversed if there has
been a change in the estimates used to determine the CGU's recoverable amount since the last impairment
loss was recognized. The reversal is limited to the carrying value that would have been determined, net of any
applicable depreciation, had no impairment charge been recognized previously. 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.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(12)
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).
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(13)
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.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(14)
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 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 the 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 investments 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.
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.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(15)
3. Material accounting policies (continued)
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.
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.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(16)
3. Material accounting policies (continued)
3.17 Revenue recognition (continued)
(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.
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 is tested for potential impairment or reversal of impairment when there is an
indication of impairment or impairment reversal. Goodwill is tested at least annually or when there is an
indication of impairment.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(17)
4. Judgements and estimation uncertainty (continued)
(i) Valuation of property, plant and equipment and goodwill (continued)
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. Metal pricing assumptions were based on consensus forecast pricing and discount rates
were based on a weighted average cost of capital, adjusted for country and other risks specific to the CGU. For
the portion of incremental inferred resources and exploration potential beyond what is modeled in the
Company’s life of mine plans ("value beyond proven and probable" or "VBPP"), fair value was assigned on the
basis of an in-situ estimate of gold equivalent ounces, through accounting for reasonable confidence factors
such as conversion and operational risk considerations. The fair value per gold equivalent ounce assigned was
derived from the fair value of future production from the life of mine plan.
Changes in any of the assumptions or estimates used in determining the recoverable amount could result in
additional impairment or reversal of impairment recognized.
Judgement is applied in assessing whether certain facts and circumstances are indicators of impairment or
reversal 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 or may require a reversal of impairment. 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.
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.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(18)
4. Judgements and estimation uncertainty (continued)
(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 are required in assessing whether deferred tax assets are recoverable.
Recoverability is based on an assessment of the ability to use future tax deductions against future taxable
income, prior to expiration. Deferred tax liabilities arising from temporary differences on investments in
subsidiaries, joint ventures and associates are recognized unless the reversal of the temporary differences can
be controlled and is not expected to occur in the foreseeable future, 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.
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
(i) Current adoption of new accounting standards
The following amendments to existing standards have been adopted by the Company commencing January 1,
2024:
Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants
Eldorado has adopted 'Classification of Liabilities as Current or Non-current (Amendments to IAS 1) and Non-
current Liabilities with Covenants (Amendments to IAS 1)'. 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.
In October 2022, the IASB published an additional narrow scope amendment to IAS 1 Presentation of
Financial Statements and 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
Company has considered the amendments and concluded that there is no material impact on the consolidated
financial statements from the adoption of this amendment.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(19)
5. Adoption of new accounting standards (continued)
(ii) 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.
Amendments to the Classification and Measurement of Financial Instruments: Amendments to IFRS 9,
Financial Instruments and IFRS 7, Financial Instruments: Disclosures
In May 2024, the IASB issued 'Amendments to the Classification and Measurement of Financial Instruments
(Amendments to IFRS 9 and IFRS 7)'. The amendments clarify the date of recognition and derecognition of
some financial assets and financial liabilities, with a new exception that permits companies to elect to
derecognize certain financial liabilities settled via electronic payment systems earlier than the settlement date.
It also clarifies guidance on assessing whether a financial asset meets the solely payments of principal and
interest criterion, it adds new disclosures for certain instruments with contractual terms that can change cash
flows and updates the disclosures for equity instruments designated at fair value through other comprehensive
income. The amendments apply for annual reporting periods beginning on or after January 1, 2026, and are
applied retrospectively. The Company is currently evaluating the impact of the new standard on its
consolidated financial statements.
IFRS 18: Presentation and Disclosure in Financial Statements
In April 2024, the IASB published its new standard IFRS 18 ‘Presentation and Disclosures in Financial
Statements' that will replace IAS 1 'Presentation of Financial Statements' which sets out presentation and base
disclosure requirements for financial statements. The changes, which mostly affect the income statement,
include the introduction of categories and defined subtotals to allow better comparison between entities. Along
with the introduction of requirements to improve aggregation and disaggregation of line items presented on the
primary financial statements, that aim at additional relevant information and ensure that material information is
not obscured. Companies will also have to disclose information on Management-defined Performance
Measures in the notes to the financial statements. The amendments apply for annual reporting periods
beginning on or after January 1, 2027, and are applied retrospectively. The Company is currently evaluating
the impact of the new standard on its consolidated financial statements.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(20)
6. Disposal group held for sale and discontinued operations
Certej project
On October 7, 2024, the Company entered into a share purchase agreement ("SPA") to sell the Certej project,
a non-core gold asset in the Romania segment. The sale is subject to certain closing conditions.
Consideration includes:
•
$0.5 million cash deposit received upon signing of the SPA;
•
$3.5 million cash upon closing of the transaction;
•
$4.0 million of common shares of the purchasing company upon closing;
•
deferred consideration of $22.0 million in cash, with $2.0 million payable within 45 days after the
issuance of a zonal urbanization plan ("PUZ"), and $10.0 million payable on both the first and second
anniversary following the receipt of both the PUZ and the building permit; and
•
the Company will retain a 1.5% net smelter return royalty on the project.
During the third quarter of 2024, the Company recorded an impairment of $8.7 million on the Certej project to
recognize property, plant and equipment at its estimated fair value, based on a plan to sell the asset and
completion of the agreement.
The Romania reporting segment is presented as a disposal group held for sale. As at December 31, 2024, the
disposal group was stated at fair value less costs to sell and comprised the following assets and liabilities:
December 31, 2024
December 31, 2023
Cash
$
354
$
770
Accounts receivable and other
1,034
1,276
Inventories
1,694
1,586
Property, plant, and equipment
13,604
23,995
Assets held for sale
$
16,686
$
27,627
Accounts payable and accrued liabilities
$
(249)
$
(228)
Asset retirement obligations
(9,884)
(10,639)
Liabilities associated with assets held for sale
$
(10,133)
$
(10,867)
The fair value measurement for the disposal group has been categorized as a Level 3 fair value based on the
expected cash from a sale, less estimated costs of disposal.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(21)
6. Disposal group held for sale and discontinued operations (continued)
The results from operations of the Romanian reporting segment include:
Year ended December 31,
2024
2023
Expenses
$
(4,989)
$
(4,407)
Impairment of property and equipment
(8,687)
—
Loss from operations
(13,676)
(4,407)
Income tax recovery
—
—
Loss from discontinued operations, net of tax
$
(13,676)
$
(4,407)
Loss from discontinued operations attributable to
shareholders of the Company
$
(11,788)
$
(1,553)
Loss from discontinued operations attributable to non-
controlling interest
$
(1,888)
$
(2,854)
Basic and diluted loss per share attributable to shareholders
of the Company
$
(0.06)
$
(0.01)
Net cash used in operating activities of the Romanian reporting segment during the year ended December 31,
2024 was $0.4 million (2023 – net cash generated from operating activities was $0.4 million).
7. Cash and cash equivalents
December 31, 2024
December 31, 2023
Cash
$
830,788
$
539,536
Short-term deposits
26,009
937
$
856,797
$
540,473
As at December 31, 2024, €157.3 million ($163.4 million) (2023 - €86.8 million ($95.9 million)) of cash and
cash equivalents are designated for the use of constructing the Skouries Project and to fund reimbursable VAT
expenditures relating to the Skouries Project.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(22)
8. Accounts receivable and other
December 31, 2024
December 31, 2023
Trade receivables
$
57,832
$
49,387
Value added tax and other taxes recoverable
30,984
29,465
Other receivables and advances
21,128
22,233
Prepaid expenses and deposits
20,732
19,997
Deferred consideration (i)
60,000
—
$
190,676
$
121,082
(i) In October 27, 2021, the Company completed a sale of the Tocantinzinho Project ("TZ"), a non-core gold
asset, located in Brazil. The Company entered into a definitive agreement (the "GMIN Agreement") with G
Mining Ventures Corp. (“GMIN”) to divest TZ. Under the terms of the GMIN Agreement, Eldorado will receive a
deferred consideration of $60.0 million in cash to be paid following TZ commencing commercial production,
payable on or before the first anniversary of commercial production (“Deferred Consideration”). The
$60.0 million gain is recognized in other income (Note 18). GMIN declared commercial production on
September 3, 2024. Six to nine months after commercial production is achieved, GMIN has the option to notify
Eldorado and to defer payment of 50% of the Deferred Consideration at a cost of $5.0 million, in which case
$30.0 million is payable upon the first anniversary of the commencement of commercial production and
$35.0 million is payable upon the second anniversary of the commencement of commercial production.
9. Inventories
December 31, 2024
December 31, 2023
Ore stockpiles
$
10,910
$
9,856
In-process inventory and finished goods
141,975
102,884
Materials and supplies
126,110
123,150
$
278,995
$
235,890
In 2024, inventories of $464.7 million (2023 – $404.7 million) were recognized as an expense during the year
and included in cost of sales.
10. Other assets
December 31, 2024
December 31, 2023
Investment in marketable securities and debt securities
$
172,168
$
108,798
Value added tax and other taxes recoverable
77,610
74,495
Prepaid loan costs
3,489
3,175
Deposits and other
6,083
1,573
$
259,350
$
188,041
Less: Current marketable securities and debt securities (i)
(138,932)
(2,832)
Non-current other assets
$
120,418
$
185,209
(i) Included in the investment in marketable securities is an investment of $138.9 million in GMIN. The
Company sold part of its investment in GMIN during Q4 2024 for CDN $14.6 million ($10.3 million) while the
remaining GMIN investment held at December 31, 2024 was sold on January 15, 2025 for CDN $223.1 million
($155.1 million).
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(23)
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, 2024
December 31, 2023
NCI percentage
19.5 %
19.5 %
Current assets
$
2,620
$
2,721
Non-current assets
11,704
22,095
Current liabilities
(239)
(228)
Non-current liabilities
(169,248)
(170,070)
Net liabilities
$
(155,163)
$
(145,482)
Net liabilities allocated to NCI
$
(30,257)
$
(28,369)
Cash flows used in operating activities
$
(3,382)
$
(2,981)
Cash flows used in investing activities
9
—
Cash flows generated from financing activities
3,406
2,954
Net decrease in cash and cash equivalents
$
33
$
(27)
Net loss and comprehensive loss
$
(9,682)
$
(14,638)
Net loss allocated to NCI
$
(1,888)
$
(2,854)
Net loss attributable to NCI in the consolidated statements of operations includes $1.9 million related to Deva
(2023 – net loss of $2.9 million) and net loss of $0.3 million related to non-material subsidiaries (2023 – net
loss of $0.4 million).
The carrying value of the NCI related to Deva is $(10.3) million (2023 – $(8.4) million) and the carrying value of
non-material subsidiaries is $2.1 million (2023 – $2.2 million).
Deva is included in the Romanian reporting segment which is presented as a disposal group held for sale at
December 31, 2024. Net loss attributable to Deva is presented as discontinued operations for the years ended
December 31, 2024 and 2023 (Note 6).
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(24)
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, 2023
$ 243,332 $ 2,623,733 $ 123,605 $ 3,751,842 $
242,701 $ 6,985,213
Additions/transfers
2,034
43,352 158,430
225,664
25
429,505
Write-down of assets
—
—
—
(3,183)
—
(3,183)
Other movements/transfers
12,311
100,710 (168,761)
51,269
—
(4,471)
Assets reclassified as held for sale
—
—
—
—
217
217
Disposals
(197)
(3,382)
(731)
(126)
(118)
(4,554)
Capitalized interest
—
—
—
17,087
—
17,087
Balance at December 31, 2023
$ 257,480 $ 2,764,413 $ 112,543 $ 4,042,553 $
242,825 $ 7,419,814
Balance at January 1, 2024
$ 257,480 $ 2,764,413 $ 112,543 $ 4,042,553 $
242,825 $ 7,419,814
Additions/transfers
4,903
40,339 109,435
468,395
(952)
622,120
(Write-down) reversal of assets
(1,403)
523
(1,946)
(682)
—
(3,508)
Other movements/transfers
21,446
70,740 (100,867)
(2,782)
(12)
(11,475)
Assets reclassified as held for sale
—
—
—
—
1,217
1,217
Disposals
—
(2,389)
—
(87)
(296)
(2,772)
Capitalized interest
—
—
—
33,839
—
33,839
Balance at December 31, 2024
$ 282,426 $ 2,873,626 $ 119,165 $ 4,541,236 $
242,782 $ 8,059,235
Accumulated depreciation
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)
—
(109,740)
—
(274,288)
Other movements
(106)
(2,387)
—
(676)
(27)
(3,196)
Assets reclassified as held for sale
—
—
—
—
(39)
(39)
Disposals
144
2,035
—
1
39
2,219
Balance at December 31, 2023
$ (111,137) $ (1,539,487) $
— $ (2,009,881) $
(3,750) $ (3,664,255)
Balance at January 1, 2024
$ (111,137) $ (1,539,487) $
— $ (2,009,881) $
(3,750) $ (3,664,255)
Depreciation for the year
(17,968)
(160,641)
—
(98,247)
—
(276,856)
Write-down of assets
—
(654)
—
—
—
(654)
Other movements/transfers
(35)
(3,165)
—
3,310
(17)
93
Assets reclassified as held for sale
—
—
—
—
(7)
(7)
Disposals
—
1,145
—
—
81
1,226
Balance at December 31, 2024
$ (129,140) $ (1,702,802) $
— $ (2,104,818) $
(3,693) $ (3,940,453)
Carrying amounts
At January 1, 2023
$ 153,697 $ 1,227,606 $ 123,605 $ 1,852,376 $
238,978 $ 3,596,262
At December 31, 2023
$ 146,343 $ 1,224,926 $ 112,543 $ 2,032,672 $
239,075 $ 3,755,559
Balance at December 31, 2024
$ 153,286 $ 1,170,824 $ 119,165 $ 2,436,418 $
239,089 $ 4,118,782
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(25)
12. Property, plant and equipment (continued)
Indicators of impairment
In accordance with the Company’s accounting policies each CGU is assessed for indicators of impairment and
impairment reversal, from both external and internal sources, at the end of each reporting period. The
recoverable amounts of the Company’s CGUs are based primarily on the net present value of future cash flows
expected to be derived from the CGUs. The recoverable amount used by the Company represents each
CGU’s FVLCD, a Level 3 fair value measurement, as it was determined to be higher than value in use.
Olympias
At December 31, 2024, the Company identified an indicator of impairment reversal for the Olympias mine
("Olympias") due to continuing higher gold prices and mine production efficiencies and performed an
impairment test of the Olympias CGU.
See Note 4 for discussion of judgement used in assumptions and estimates. The significant assumptions used
for determining the recoverable amount of the Olympias CGU at December 31, 2024 are reflected in the table
below.
2024 Assumptions
Gold price ($/oz)
$2,600 - $2,100
Silver price ($/oz)
$32 - $27
Lead price ($/t)
$2,072 - $2,116
Zinc price ($/t)
$2,646 - $2,778
Real discount rate
6.75% - 7.75%
VBPP value/oz
$40 - $60/oz
The assessment as at December 31, 2024 indicated that no impairment reversal is required to be recorded.
Changes in any of the assumptions or estimates used in determining the fair values could impact the
impairment test. In isolation, a $50/oz increase or decrease in the long-term gold price would approximately
result in a $28 million increase or decrease in the recoverable amount, respectively. A 25 basis point increase
or decrease in the discount rate would approximately result in a $19 million decrease or increase in the
recoverable amount.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(26)
13. Goodwill
As of December 31, 2024 all goodwill relates to the Lamaque Complex ("Lamaque") CGU. Goodwill is tested
for impairment annually on December 31 and when circumstances indicate that the carrying value may not be
recoverable. Impairment is determined for goodwill by assessing the recoverable amount of the CGU. The
recoverable amount of the Lamaque CGU is based on the net present value of future cash flows expected to
be derived from the CGU. The recoverable amount used by the Company represents the CGU’s FVLCD, a
Level 3 fair value measurement, as it was determined to be higher than value in use.
The significant assumptions used for determining the recoverable amount of goodwill in the Lamaque CGU are
reflected in the table below. Management used judgement in determining estimates and assumptions with
respect to discount rates, future production levels including amounts of recoverable reserves, resources and
exploration potential, operating and capital costs, long-term metal prices and estimates of the fair value of
mineral properties beyond proven and probable reserves. Metal pricing assumptions were based on
consensus forecast pricing, and the discount rates were based on a weighted average cost of capital, adjusted
for country risk and other risks specific to the CGU. Cash flows were projected through to 2041. Changes in
any of the assumptions or estimates used in determining the fair values could impact the recoverable amount
of goodwill analysis.
2024
2023
Gold price ($/oz)
$2,600 - $2,100
$1,900 - $1,700
Real discount rate
5.75% - 7.25%
6.25% - 7.25%
The estimated recoverable amount of the Lamaque CGU including goodwill exceeded its carrying amount as
at December 31, 2024 by approximately $628.0 million to $673.6 million. Impairment would result from a
decrease in the long-term gold price of $750 per ounce.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(27)
14. Leases and right-of-use assets
The Company is the lessee of various assets including mobile mine equipment, offices and properties. These
right-of-use assets presented below are included in property, plant and equipment (Note 12).
Right-of-use
Land and
buildings
Right-of-use
Plant and
equipment
Total
Cost
Opening balance at January 1, 2023
$
14,680
$
20,217
$
34,897
Additions
479
3,254
3,733
Disposals
(170)
(101)
(271)
Transfers and other movements
977
(593)
384
Balance at December 31, 2023
$
15,966
$
22,777
$
38,743
Additions
1,930
1,814
3,744
Disposals
—
(215)
(215)
Transfers and other movements
580
(87)
493
Balance at December 31, 2024
$
18,476
$
24,289
$
42,765
Accumulated depreciation
Opening balance at January 1, 2023
$
(4,392)
$
(8,662)
$
(13,054)
Depreciation for the year
(1,529)
(2,575)
(4,104)
Disposals
131
43
174
Transfers and other movements
(90)
944
854
Balance at December 31, 2023
$
(5,880)
$
(10,250)
$
(16,130)
Depreciation for the year
(1,879)
(3,286)
(5,165)
Disposals
—
104
104
Transfers and other movements
(35)
95
60
Balance at December 31, 2024
$
(7,794)
$
(13,337)
$
(21,131)
Right-of-use assets, net carrying amount at
December 31, 2023
$
10,086
$
12,527
$
22,613
Right-of-use assets, net carrying amount
at December 31, 2024
$
10,682
$
10,952
$
21,634
Interest expense on lease liabilities is disclosed in Note 19 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 25.
15. Accounts payable and accrued liabilities
December 31, 2024
December 31, 2023
Trade payables
$
112,584
$
93,325
Taxes payable
66,203
23,946
Accrued expenses
179,012
127,816
Deferred revenue
8,891
8,943
$
366,690
$
254,030
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(28)
16. Debt
December 31, 2024
December 31, 2023
Senior Notes, net of unamortized transaction fees of $4,525 (2023 –
$5,325) and initial redemption option of $3,103 (2023 – $3,652)
$
498,578
$
498,326
Redemption option derivative asset
(7,575)
(5,635)
Term Facility - Commercial loans, net of unamortized transaction
fees of $21,751 (2023 – $15,490)
293,550
100,890
Term Facility - RRF loans, net of unamortized transaction fees of
$5,445 (2023 – $6,037)
119,935
39,209
Term Facility - Revolving VAT facility net of unamortized transaction
fees of $559
10,937
3,269
$
915,425
$
636,059
2024
2023
Senior Notes
due 2029
Term
Facility
Senior Notes
due 2029
Term
Facility
Balance beginning of year
$
492,691 $
143,368
$
494,414 $
—
Financing cash flows related to debt:
Proceeds from Term Facility commercial loans
—
213,694
—
114,602
Proceeds from Term Facility RRF loans
—
97,224
—
52,136
Proceeds from Term Facility revolving VAT facility
—
56,022
—
14,588
Repayment of Term Facility revolving VAT facility
—
(47,304)
—
(11,328)
Interest paid
(31,250)
(15,924)
(31,250)
(3,655)
Transaction costs and commitment fees paid
—
(3,806)
—
(22,084)
Total financing cash flows related to debt
$
(31,250) $
299,906
$
(31,250) $
144,259
$
461,441 $
443,274
$
463,164 $
144,259
Non-cash changes recorded in debt:
Interest incurred
31,502
17,512
31,486
4,526
Other non-cash movements
—
(2,444)
—
—
Change in fair value of redemption option derivative
asset relating to Senior Notes due 2029
(1,940)
—
(1,959)
—
Change in fair value of interest rate benefit on Term
Facility RRF loans
—
(11,936)
—
(8,016)
Foreign exchange (gains) losses
—
(21,984)
—
2,599
Balance end of year
$
491,003 $
424,422
$
492,691 $
143,368
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(29)
16. Debt (continued)
(a) Senior Notes
On August 26, 2021, the Company completed an offering of $500.0 million senior unsecured notes with a
coupon rate of 6.25% due September 1, 2029 (the “Senior Notes”). The Senior Notes pay interest semi-
annually on March 1 and September 1, which began on March 1, 2022.
The Senior Notes are guaranteed by Eldorado Gold (Netherlands) B.V., SG Resources B.V., Tuprag Metal
Madencilik Sanayi ve Ticaret AS, and Eldorado Gold (Quebec) Inc., all wholly-owned subsidiaries of the
Company.
The Senior Notes are redeemable by the Company in whole or in part, for cash 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 Senior Notes contain certain redemption features that constitute an embedded derivative asset, which is
recognized separately at fair value and is classified as fair value through profit and loss. The increase in fair
value in the year ended December 31, 2024 is $1.9 million (December 31, 2023 – $2.0 million), which is
recognized in finance costs (Note 19).
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, 2024.
The fair market value of the Senior Notes as at December 31, 2024 is $491.4 million (December 31, 2023 –
$471.6 million).
(b) Skouries Project Financing Facility ("Term Facility")
On April 5, 2023, the Company completed the €680.4 million Term Facility for the development of the Skouries
Project in Northern Greece. The Term Facility includes €200.0 million of funds from the Greek Recovery and
Resilience Facility (the "RRF"). The Term Facility also provides an additional €30.0 million revolving credit
facility to fund reimbursable value added tax ("VAT") expenditures relating to the Skouries Project. The project
financing further includes a Contingent Overrun Facility for an additional €60.0 million. 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 €106.3
million ($110.5 million) as at December 31, 2024, issued under the Company's $350.0 million revolving senior
secured credit facility ("Credit Facility") (Note 16(c)). The letter of credit will be reduced Euro for Euro as the
Company invests further in the Skouries Project.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(30)
16. Debt (continued)
(b) Skouries Project Financing Facility ("Term Facility") (continued)
The Term Facility includes the following components:
i.
€480.4 million 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 28(e)).
ii.
€100.0 million initial RRF loans at a fixed interest rate of 3.04% for the term of the facility.
iii.
€100.0 million additional RRF loan at a fixed interest rate of 4.06% for the term of the facility.
iv.
€60.0 million contingent overrun facility for additional capital costs at a variable interest rate comprised
of six-months EURIBOR plus a fixed margin.
In the year ended December 31, 2024, the Company completed drawdowns on the Term Facility totalling
€288.3 million ($310.9 million), including €198.2 million ($213.7 million) of commercial loans and €90.2 million
($97.2 million) from the RRF loans. Additionally, during the year ended December 31, 2024, the Company
completed drawdowns on the VAT revolving credit facility totalling €51.9 million ($56.0 million) and made
repayments of €43.8 million ($47.3 million).
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 28(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. In January 2025, Eldorado exercised a deferral option,
which extends drawings from the Term Facility through the earlier of August 26, 2026, or three months
following completion of the Skouries Project.
Due to Eldorado exercising the deferral option in January 2025, repayment of the commercial loans, the RRF
loans, and the Contingent Overrun Facility 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, 2024.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(31)
16. Debt (continued)
(c) Senior Secured Credit Facility
On June 27, 2024, the Company entered into an agreement with a syndicate of lenders to increase the existing
Credit Facility from $250 million to $350 million, with an option to increase the available credit by $100 million
through an accordion feature, and to extend the facility to a maturity date of June 27, 2028.
The Company's equity commitment for the Skouries Project is backstopped by a letter of credit issued under
the Credit Facility. As at December 31, 2024, after giving effect to investments in the project to date, the
amount outstanding under the letter of credit for Skouries was €106.3 million ($110.5 million) and the
Company's available balance under the Credit Facility was $239.2 million. The letter of credit will continue to
be reduced Euro for Euro as the Company invests further in the Skouries Project.
The Credit Facility is subject to standard conditions and covenants. At December 31, 2024, the Company was
in compliance with the applicable covenants. The Company is required to comply with covenants which include
an interest coverage ratio (maintain an interest coverage ratio with respect to each rolling four quarter period of
not less than 3.00:1.00) and a net leverage ratio (maintain an net leverage ratio with respect to each rolling
four quarter period of not more than 3.50:1.00).
The Credit Facility 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.
The amount drawn on the Credit Facility bears interest at the Secured Overnight Financing Rate ("SOFR") 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% - 3.25% based on a net leverage ratio pricing grid (2024
average fee was 2.125%). The available and undrawn portion of the revolving credit facility incurs standby fees
of 0.47813% - 0.73125% based on a net leverage ratio pricing grid (2024 average fee was 0.47813%).
As at December 31, 2024, the Company has letters of credit outstanding in Greece and Canada of €106.3
million, €64.0 million and CDN $0.4 million, totaling $177.3 million (December 31, 2023 – €126.2 million, €58.2
million and CDN $0.4 million, totaling $204.3 million).
The letters of credit secured by the revolving credit facility of €106.3 million and CDN $0.4 million incur a fee of
2.125% - 3.25% based on a net leverage ratio pricing grid (2024 average fee was 2.125%), plus a fronting fee
of 0.25%.
The €64.0 million letters of credit are secured under the revolving credit facility and were issued to provide
financial security on certain obligations in connection with the Company's Greece operations. These letters of
credit incurred an average fee of 1.49% in 2024.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(32)
17. Asset retirement obligations
Turkiye
Canada
Greece
Romania
Total
At January 1, 2024
$
76,357 $
15,308 $
37,444 $
— $
129,109
Accretion during the year (1)
2,963
355
1,551
447
5,316
Revisions to estimate
6,589
(3,856)
(27)
(1,202)
1,504
Settlements
(635)
—
(3,053)
—
(3,688)
Reclassified to liabilities associated with
assets held for sale
—
—
—
755
755
At December 31, 2024
$
85,274 $
11,807 $
35,915 $
— $
132,996
Less: Current liability portion
—
—
(5,071)
—
(5,071)
Non-current liability portion
$
85,274 $
11,807 $
30,844 $
— $
127,925
Estimated undiscounted amount
$
157,040 $
27,740 $
67,837 $
— $
252,617
Turkiye
Canada
Greece
Romania
Total
At January 1, 2023
$
54,521 $
14,215 $
41,137 $
— $
109,873
Accretion during the year (1)
2,224
336
1,731
427
4,718
Revisions to estimate
20,095
757
(2,316)
(99)
18,437
Settlements
(483)
—
(3,108)
—
(3,591)
Reclassified to liabilities associated with
assets held for sale
—
—
—
(328)
(328)
At December 31, 2023
$
76,357 $
15,308 $
37,444 $
— $
129,109
Less: Current liability portion
—
—
(4,019)
—
(4,019)
Non-current liability portion
$
76,357 $
15,308 $
33,425 $
— $
125,090
Estimated undiscounted amount
$
127,181 $
20,757 $
64,771 $
— $
212,709
(1) Accretion expense for the Romanian reporting segment has been reclassified to loss from discontinued operations for the years
ended December 31, 2024 and 2023 (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.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(33)
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:
Turkiye
Canada
Greece
Romania
%
%
%
%
At December 31, 2024
Inflation rate
2.6 to 2.9
2.5
2.5 to 4.2
2.4
Discount rate
4.6
4.9
4.4 to 4.9
4.9
At December 31, 2023
Inflation rate
2.5 to 3.2
3.2
2.3 to 2.5
2.5
Discount rate
3.9
3.9
4.0 to 4.2
4.2
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. 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 €55.0 million ($57.1 million) 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. This Letter of Guarantee was
amended for a 15-year term to May 27, 2038, and has an annual fee of 197 basis points.
(b) A €8.3 million ($8.6 million) 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). This Letter of
Guarantee was amended for a 15-year term to May 27, 2038, and has an annual fee of 192 basis points.
(c) Restricted cash of $1.7 million (2023 – $2.0 million) relates to an environmental guarantee deposit posted
as security for rehabilitation works primarily in relation to Lamaque.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(34)
18. Other income
December 31, 2024
December 31, 2023
Unrealized loss on derivative instruments (Note 28)
$
(51,751)
$
(9,584)
Interest income
23,949
17,640
Realized gain on derivative instruments
150
431
Gain on sale of the Tocantinzinho project (Note 8)
60,000
—
Other
6,702
5,708
$
39,050
$
14,195
19. Finance costs (gains)
December 31, 2024
December 31, 2023
Interest cost on Senior Notes (Note 16)
$
31,502
$
31,486
Interest cost on Term Facility (Note 16)
17,512
4,526
Other interest and financing costs
3,288
9,835
Change in fair value of redemption option derivative
(Note 16)
(1,940)
(1,959)
Asset retirement obligation accretion
4,869
4,291
Interest expense on lease liabilities
1,657
1,747
Total finance costs
$
56,888
$
49,926
Less: capitalized interest
(33,839)
(17,087)
$
23,049
$
32,839
20. Income taxes
Total income tax expense consists of:
2024
2023
Current tax expense
$
114,087
$
85,804
Deferred tax expense (recovery)
20,671
(28,229)
$
134,758
$
57,575
Income tax expense (recovery) attributable to each geographical jurisdiction for the Company is as follows:
2024
2023
Turkiye
$
44,224
$
42,471
Canada
67,099
30,491
Greece
7,626
(15,387)
Other Jurisdictions
15,809
—
$
134,758
$
57,575
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(35)
20. Income taxes (continued)
The key factors affecting income tax expense for the years are as follows:
2024
2023
Earnings from continuing operations before income tax
$
435,394
$
163,365
Canadian statutory tax rate
27%
27%
Tax expense on net earnings at Canadian statutory tax rate
$
117,556
$
44,109
Items that cause an increase (decrease) in income tax
expense:
Foreign income subject to different income tax rates than
Canada
(4,627)
1,143
Increase in Turkish income tax rate
—
22,589
Turkish investment tax credits and other benefits
(28,496)
(22,001)
Québec mineral tax
42,701
22,518
Non-tax effected temporary differences and operating
losses
(19,118)
(4,383)
Non-deductible expenses and non-taxable income
(10,107)
(96)
Flow-through share renouncement
3,539
3,500
Turkish earthquake relief tax
—
4,348
Turkish inflation benefit
(40,492)
(59,361)
Foreign exchange related to the weakening of the Turkish
lira
33,004
51,205
Foreign exchange and other translation adjustments
18,819
(9,608)
Future and current withholding tax on foreign income
dividends
20,329
6,723
Other
1,650
(3,111)
Income tax expense
$
134,758
$
57,575
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(36)
20. 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 $8.2 million
current tax expense and $22.6 million deferred tax expense recognized in Q3 2023.
On December 31, 2023, Turkiye announced application of inflation accounting for the year ended December
31, 2023. This resulted in a $59.4 million reduction to the ending deferred tax liability and a corresponding
deferred tax recovery for Q4 2023.
The change in the Company’s net deferred tax position was as follows:
2024
2023
Net deferred income tax liability
Balance at January 1,
$
384,361
$
410,219
Deferred income tax expense (recovery) in the statements of
operations
20,672
(28,229)
Deferred tax expense in the consolidated statements of
other comprehensive income
10,419
2,371
Balance at December 31,
$
415,452
$
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)
2024
2023
2024
2023
2024
2023
Property, plant and equipment
$
— $
— $ 452,950 $ 419,824 $
33,126 $
(26,871)
Loss carryforwards
19,487
14,748
—
—
(4,738)
2,784
Liabilities
61,632
45,618
—
—
(16,013)
(17,658)
Future withholding taxes
—
—
9,650
5,355
4,295
(200)
Other items
—
—
33,971
19,548
4,002
13,716
Balance at December 31,
$
81,119 $
60,366 $ 496,571 $ 444,727 $
20,672 $
(28,229)
Unrecognized deferred tax assets
2024
2023
Tax losses
$
197,138
$
218,615
Other deductible temporary differences
88,388
86,864
$
285,526
$
305,479
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 $197.1 million (2023 –
$218.6 million) have not been recognized. The gross amount of tax losses for which no deferred tax asset was
recognized expire as follows:
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(37)
20. Income taxes (continued)
2024
Expiry date
2023
Expiry date
Canadian net operating loss carryforwards
$
432,863
2031-2043 $
464,761
2030-2043
Canadian capital losses
386,707
none
258,795
none
Greek net operating loss carryforwards
127,541
2025-2029
182,444
2024-2028
Romanian net operating loss carryforwards
6,952
2025-2031
6,811
2024-2030
Deductible temporary differences
At December 31, 2024, the Company had deductible temporary differences for which deferred tax assets of
$88.4 million (2023 – $86.9 million) 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, 2024, these earnings amount to $972.1 million (2023 – $958.6 million).
Substantially all of these earnings would be subject to withholding taxes if they were remitted by the foreign
subsidiaries.
Other factors affecting taxation
During 2024, deferred tax expense of $45.9 million (2023 – $29.3 million) was recognized due to the net
decrease in the value of future tax deductions as a result of foreign exchange movements. Of this expense,
$26.5 million was due to the weakening of the Turkish lira and $19.4 million due to the weakening of the Euro,
both 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.
Dutch Tax Audits
The Company is subject to an ongoing Dutch tax audit for the fiscal years 2020 and 2021. As of December 31,
2024, a tax accrual of $5.8 million has been recognized, reflecting management’s best estimate of the potential
liability based on the latest discussions with tax authorities and professional advice. The final outcome of the
audit may differ from the amount accrued, and any adjustments will be recognized in the period in which they
are determined.
Global minimum top-up tax
Pillar Two legislation has been enacted in all jurisdictions in which the Company operates. The legislation is
effective for the Company’s financial year beginning January 1, 2024. The Company assesses its potential
exposure to Pillar Two income taxes on an ongoing basis. Assessments are based on the most recent
information available regarding the financial performance of the constituent entities in the group.
The assessment performed for the December 31, 2024 period indicates the transitional Country-by-Country
Reporting safe harbour rules are expected to apply in all jurisdictions in which the Company operates, except
for Turkiye. With respect to Turkiye, the Pillar Two effective tax rate is expected to exceed 15% for 2024.
Based on this assessment, the Company does not expect to be subject to Pillar Two top-up tax in any
jurisdiction, including Turkiye.
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.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(38)
20. Income taxes (continued)
EIFEL
On June 20, 2024, the Canadian government enacted the Excessive Interest and Financing Expenses
Limitation (EIFEL) rules under the Income Tax Act Canada to limit the deductibility of excessive interest and
financing expenses. The EIFEL rules restrict the net interest and financing expenses of certain corporations
and corporate groups based on a percentage of adjusted taxable income. The legislation applies to tax years
beginning on or after October 1, 2023, making it effective for the Company’s financial year ending December
31, 2024.
The Company has performed an assessment of the Company’s potential exposure to the EIFEL rules. Based
on the assessment, the Company’s total net interest and financing expenses remain fully deductible, and no
restrictions apply under EIFEL.
21. 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 the European Bank for Reconstruction
and Development (EBRD) consisting of 6,269,231 common shares at a price of CDN $13.00 per common
share for gross proceeds of CDN $81.5 million ($61.3 million). 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 $135.2 million ($101.1 million).
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 $7.5 million; and a private placement of 290,000 common shares at a
price of CDN $17.24 per share for proceeds of CDN $5.0 million. 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 $3.5 million ($2.6 million) was recognized in accounts payable and accrued liabilities and has
been recognized in other income as required expenditures are incurred and related tax benefits renounced.
2024
2023
Voting common shares
Number of
Shares
Total
Number of
Shares
Total
Balance at January 1,
203,138,351 $ 3,413,365
184,800,571 $ 3,241,644
Shares issued upon exercise of share options
1,779,799
14,112
987,649
7,390
Shares issued on redemption of performance
share units
27,874
499
—
—
Estimated fair value of share options exercised
transferred from contributed surplus
—
5,802
—
3,112
Shares issued for private placement with
EBRD, net of issuance costs
—
—
6,269,231
59,873
Shares issued for bought deal offering, net of
issuance costs
—
—
10,400,000
94,718
Flow-through shares issued, net of issuance
costs and premium
—
—
680,900
6,628
Balance at December 31,
204,946,024 $ 3,433,778 203,138,351 $ 3,413,365
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(39)
22. Share-based payment arrangements
Share-based payments expense consists of:
December 31, 2024
December 31, 2023
Share options
$
3,811
$
2,717
Restricted share units with no performance criteria
3,528
1,789
Restricted share units with performance criteria
(630)
480
Deferred units
1,770
2,446
Performance share units
3,393
2,763
$
11,872
$
10,195
(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:
2024
2023
Weighted
average price
CDN$
Number of
options
Weighted
average price
CDN$
Number of
options
At January 1,
$12.42
3,352,743
$11.31
3,739,567
Granted
14.79
1,288,263
14.74
1,054,431
Exercised
10.80
(1,779,799)
10.11
(987,649)
Expired
10.08
(15,109)
12.76
(127,132)
Forfeited
14.50
(217,289)
14.06
(326,474)
At December 31,
$14.52
2,628,809
$12.42
3,352,743
As at December 31, 2024, a total of 2,395,869 options (December 31, 2023 – 3,451,734) were available to
grant under the Plan. As at December 31, 2024, 529,425 share purchase options (December 31, 2023 –
1,539,960) with a weighted average exercise price of CDN $14.01 (2023 – CDN $10.26) are vested and
exercisable.
The weighted average market share price at the date of exercise for share options exercised in 2024 was CDN
$18.36 (2023 – CDN $15.73).
During the year ended December 31, 2024, 1,288,263 (2023 – 1,054,431) share options were granted. The
weighted average fair value per stock option granted was CDN $5.11 (2023 – CDN $5.36).
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(40)
22. Share-based payment arrangements (continued)
Options outstanding are as follows:
December 31, 2024
December 31, 2024
Total options outstanding
Exercisable options
Range of
exercise
price
CDN$
Shares
Weighted
average
remaining
contractual
life (years)
Weighted
average
exercise
price
CDN$
Shares
Weighted
average
exercise
price
CDN$
$11.00 to $11.99
46,335
3.63
11.90
—
—
$12.00 to $12.99
117,451
1.91
12.91
63,943
12.90
$13.00 to $13.99
601,245
2.07
13.79
321,404
13.71
$14.00 to $14.99
1,213,992
4.16
14.52
—
—
$15.00 to $15.99
608,871
3.34
15.17
144,078
15.17
$22.00 to $22.99
24,697
4.85
22.89
—
—
$23.00 to $23.99
16,218
4.67
23.27
—
—
2,628,809
3.39
$14.52
529,425
$14.01
The assumptions used to estimate the fair value of options granted during the years ended December 31,
2024 and December 31, 2023 are in the table below. Volatility was determined based on the historical volatility
over the estimated lives of the options.
2024
2023
Risk-free interest rate (range)
3.0% – 4.3%
3.2% – 4.8%
Expected volatility (range)
37% – 53%
44% – 57%
Expected life (range) (years)
1.25 – 3.94
1.94 – 3.96
Expected dividends (CDN $)
—
—
(ii) Restricted share units plan
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, 2024, 344,839 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, 2024, 144,000 common shares were purchased on the open market for
CDN $2.7 million under an approved normal course issuer bid (December 31, 2023 – 418,000 common shares
for CDN $6.1 million).
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(41)
22. 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
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, 2024, 447,136 (2023 - 383,427) RSUs with no performance criteria were
granted at an average grant-date fair value of CDN $14.73 (2023 - CDN $14.74) 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, 2024 and December 31, 2023 is as follows:
2024
2023
At January 1,
480,825
328,677
Granted
447,136
383,427
Redeemed
(175,670)
(145,598)
Forfeited
(72,042)
(85,681)
At December 31,
680,249
480,825
As at December 31, 2024, there are no RSUs vested and redeemable (2023 – nil).
(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, 2024. There were
186,117 (2023 – 222,144) 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, 2024 and December 31, 2023 is as follows:
2024
2023
At January 1,
251,943
566,740
Granted
186,117
222,144
Redeemed
(386,310)
(444,288)
Forfeited
(51,750)
(92,653)
At December 31,
—
251,943
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(42)
22. 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. 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
independent director receives a cash payment equal to the market value of such DU's as of the DU
Redemption Date.
At December 31, 2024, 388,571 DU's were outstanding (2023 – 405,051) with a fair value of $5.8 million (2023
– $5.3 million), which is included in accounts payable and accrued liabilities. The fair value was determined
based on the closing share price at December 31, 2024.
(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 397,933 PSUs granted during the year ended December 31, 2024 under the PSU Plan
(December 31, 2023 – 421,502) with a fair value of CDN $9.86 per unit (December 31, 2023 – $22.39). In
addition, 13,937 PSUs were granted as a result of the performance criteria being met during the year
(December 31, 2023 – nil), 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, 2024 and December 31, 2023 are as follows:
2024
2023
At January 1,
689,175
342,670
Granted
411,870
421,502
Redeemed
(27,874)
—
Forfeited
(98,869)
(74,997)
At December 31,
974,302
689,175
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(43)
23. Supplementary cash flow information
Changes in non-cash working capital:
December 31, 2024
December 31, 2023
Accounts receivable and other
$
(12,032)
$
(29,337)
Inventories
(29,380)
(33,566)
Accounts payable and accrued liabilities
51,601
34,621
$
10,189
$
(28,282)
24. Financial risk management
24.1 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 28(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 28(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 28(a)) at Olympias and Lamaque, respectively.
The tables below summarize Eldorado’s exposure to various currencies denominated in the foreign currency at
December 31, 2024 and 2023. The tables do not include amounts denominated in U.S. dollars as at
December 31, 2024.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(44)
24. Financial risk management (continued)
December 31, 2024
Canadian dollar
Euro
Turkish lira
$
€
TRY
Cash and cash equivalents
48,243
195,111
184,164
Accounts receivable and other
9,861
43,946
188,558
Current derivative assets
74
—
—
Other non-current assets
2,681
75,094
—
Investments in marketable securities
239,883
—
—
Accounts payable and other
(160,206)
(133,103)
(3,255,407)
Current derivative liabilities
—
(2,483)
—
Non-current derivative liabilities
—
(9,245)
—
Non-current debt - Term Facility
—
(452,638)
—
Other non-current liabilities
(2,693)
(6,390)
(229,315)
Net balance
137,843
(289,708)
(3,112,000)
Equivalent in U.S. dollars
$
95,584 $
(301,175) $
(88,573)
Other foreign currency net liability exposure is equivalent to $0.8 million U.S. dollars.
December 31, 2023
Canadian dollar
Euro
Turkish lira
$
€
TRY
Cash and cash equivalents
12,898
98,566
125,697
Accounts receivable and other
14,759
17,392
350,649
Current derivative assets
—
414
—
Other non-current assets
2,681
67,453
—
Investments in marketable securities
133,305
—
—
Accounts payable and other
(97,211)
(92,650)
(1,817,969)
Non-current derivative liabilities
—
(10,917)
—
Non-current debt - Term Facility
—
(156,194)
—
Other non-current liabilities
(13,707)
(4,652)
(201,567)
Net balance
52,725
(80,588)
(1,543,190)
Equivalent in U.S. dollars
$
40,014 $
(89,056) $
(52,421)
Other foreign currency net liability exposure is equivalent to $0.2 million U.S. dollars.
Based on the balances as at December 31, 2024, 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 $4.3 million (2023 – $0.9 million) in earnings before income tax.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(45)
24. Financial risk management (continued)
Based on the outstanding foreign exchange forward contracts (Note 28(f)) as at December 31, 2024, 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 $17.1 million (2023 – $16.9 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.
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
28(d)).
Based on the outstanding gold commodity swap contracts (Note 28(d)) as at December 31, 2024, a $200 per
ounce increase (decrease) in the gold forward curve would result in a decrease (increase) to earnings before
income tax of approximately $5.8 million (2023 – $5.8 million)
Based on the outstanding copper commodity swap contracts (Note 28(d)) as at December 31, 2024, 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 $6.0 million (2023 – $5.6 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 28(c)).
Based on the outstanding gold collars (Note 28(c)) as at December 31, 2024, a $200 per ounce increase
(decrease) in the gold forward curve would result in a decrease (increase) to earnings before income tax of
approximately $27.9 million ($12.6 million) (2023 – decrease (increase) $15.3 million ($19.4 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 six-month EURIBOR. To reduce interest
rate risk, the Company has entered into interest rate swaps covering 70% of the variable interest rate exposure
related to the Term Facility (Note 28(e)).
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(46)
24. Financial risk management (continued)
Based on the outstanding interest rate swaps (Note 28(e)) as at December 31, 2024, 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 $6.2 million (2023 – $7.1 million).
(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.
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, 2024, 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, 2024, 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 €106.3 million ($110.5 million) (2023 - €126.2 million ($139.5 million)) and the
Company's available balance on the revolving credit facility was $239.2 million (2023 - $110.2 million). 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 25. All other financial liabilities
are due within one year.
24.2 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.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(47)
25. Commitments and contractual obligations
The Company’s commitments and contractual obligations at December 31, 2024 include:
2025
2026
2027
2028
2029 and later
Total
Debt - Senior Notes (1)
$
— $
— $
— $
— $
500,000 $
500,000
Debt - Term Facility (1)
—
82,183
70,687
70,687
246,690
470,247
Purchase obligations
960
1,225
227
1
—
2,413
Leases
5,585
4,905
3,382
1,511
6,503
21,886
Asset retirement
obligations
5,071
4,612
5,107
1,900
235,927
252,617
$
11,616 $
92,925 $
79,403 $
74,099 $
989,120 $
1,247,163
(1)
Does not include interest on debt.
Debt obligations represent required repayments of principal for the Senior Notes and the Term Facility.
Purchase obligations relate primarily to operating costs at Olympias.
As at December 31, 2024, Hellas Gold had entered into off-take agreements pursuant to which Hellas agreed
to sell a total of 48,000 dry metric tonnes of zinc concentrate, 24,000 dry metric tonnes of lead/silver
concentrate, and 380,000 dry metric tonnes of gold concentrate. As at December 31, 2024, Tüprag had
entered into off-take agreements pursuant to which Tüprag agreed to sell a total of 59,400 dry metric tonnes of
gold concentrate.
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.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(48)
26. 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, 2024, 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, 2024.
27. 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 2024, the salaries and other short-term employee benefits
paid or payable to key management are $11.2 million (2023 – $8.6 million), which is included in total employee
benefits of $39.9 million (2023 – $37.5 million) recognized in general and administrative expenses, employee
benefit plan expenses and share-based compensation expenses in the statements of operations.
2024
2023
Salaries and other short-term employee benefits
$
11,205
$
8,586
Employee benefit plan
536
494
Share-based payments
8,014
4,995
Termination benefits
1,728
3,536
$
21,483
$
17,611
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(49)
28. Derivative financial instruments
December 31, 2024
December 31, 2023
Assets
Foreign currency collars
$
—
$
1,338
Euro forward contracts
—
1,513
Interest rate swaps
—
458
Foreign currency forward contracts
—
6,229
Share purchase warrants
52
—
Total assets
$
52
$
9,538
Classified as:
December 31, 2024
December 31, 2023
Current
$
52
$
2,502
Non-current
—
7,036
$
52
$
9,538
December 31, 2024
December 31, 2023
Liabilities
Foreign currency collars
$
194
$
—
Euro forward contracts
2,353
35
Gold collars
20,465
3,026
Gold commodity swaps
18,149
2,966
Copper commodity swaps
3,165
1,032
Interest rate swaps
12,167
12,063
Foreign currency forward contracts
4,837
—
Total liabilities
$
61,330
$
19,122
Classified as:
December 31, 2024
December 31, 2023
Current
$
25,587
$
279
Non-current
35,743
18,843
$
61,330
$
19,122
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(50)
28. Derivative financial instruments (continued)
(a) Foreign Currency Collars
The Company enters 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 expected to be able to protect against currency
movements, either above or below specific strike prices.
In the year ended December 31, 2024, Canadian dollar collars totalling US$106.0 million (2023: US$96.0
million) and Euro collars totalling €78.0 million (2023: €75.4 million) expired without financial settlement.
In December 2024, the Company entered into new zero-cost collars that mature monthly from January to
December 2025 (Canadian dollar collars - US$7.5 million monthly; Euro collars $6.0 million monthly).
These derivatives are not designated as hedging instruments. Changes in the fair value of the foreign currency
collars are recorded in other income (expense).
As at December 31, 2024, the Company's outstanding foreign currency collars were as follows:
2025
Canadian dollar collars
Canadian dollar contracts
US$90,000
Weighted average put strike price (USD:CDN)
1.33
Weighted average call strike price (USD:CDN)
1.56
Euro collars
Euro contracts
US$72,000
Weighted average put strike price (EUR:USD)
1.10
Weighted average call strike price (EUR:USD)
0.99
Year ended December 31,
2024
2023
Opening derivative asset
$
1,338
$
—
Change in fair value
(1,537)
1,346
Settlements
5
(8)
Closing derivative (liability) asset
$
(194)
$
1,338
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(51)
28. 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 January 2025
to May 2025, €5.0 million 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 January 2025 to May 2025, €2.5 million 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 are recorded in other income (expense). Changes in the fair
value of foreign currency forward contracts outstanding during the year ended December 31, 2024 were as
follows:
Year ended December 31,
2024
2023
Opening derivative asset
$
1,478
$
—
Change in fair value
(5,088)
1,478
Settlements
1,257
—
Closing derivative (liability) asset
$
(2,353)
$
1,478
During the year ended December 31, 2024, €52.5 million was delivered to the Company, on which a US$1.3
million realized loss was recognized.
(c) Gold Collars
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. 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, 2024, the Company's outstanding gold collars were as follows:
2025
Gold ounces
200,004
Weighted average put strike price per ounce
US$1,900
Weighted average call strike price per ounce
US$2,667
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(52)
28. Derivative financial instruments (continued)
(c) Gold Collars (continued)
Changes in the fair value of gold collars outstanding during the year ended December 31, 2024 were as
follows:
Year ended December 31,
2024
2023
Opening derivative liability
$
(3,026)
$
—
Change in fair value
(17,439)
(3,026)
Closing derivative liability
$
(20,465)
$
(3,026)
Gold collars totalling 200,004 ounces expired during the year ended December 31, 2024 without financial
settlement.
(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, 2024
were as follows:
Year ended December 31,
Gold commodity swaps
2024
2023
Opening derivative liability
$
(2,966)
$
—
Change in fair value
(15,183)
(2,966)
Closing derivative liability
$
(18,149)
$
(2,966)
Changes in the fair value of copper commodity swaps outstanding during the year ended December 31, 2024
were as follows:
Year ended December 31,
Copper commodity swaps
2024
2023
Opening derivative liability
$
(1,032)
$
—
Change in fair value
(2,133)
(1,032)
Closing derivative liability
$
(3,165)
$
(1,032)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(53)
28. 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 (expense).
In June 2024, the Company entered into interest rate swaps with an effective date of December 31, 2025,
under a six-months EURIBOR index. The interest rate swaps have a fixed rate of 2.748% and mature on
December 31, 2032. The interest payment frequency is every six months.
Changes in the fair value of interest rate swaps outstanding during the year ended December 31, 2024 were
as follows:
Year ended December 31,
2024
2023
Opening derivative liability
$
(11,605)
$
—
Change in fair value
850
(11,182)
Settlements
(1,412)
(423)
Closing derivative liability
$
(12,167)
$
(11,605)
During the year ended December 31, 2024, interest rate swap settlements resulted in realized derivative cash
gains of $1.4 million 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, €17.0 million 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, €11.4 million 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, 2024 were as follows:
Year ended December 31,
2024
2023
Opening derivative asset
$
6,229
$
—
Change in fair value
(11,066)
6,229
Closing derivative (liability) asset
$
(4,837)
$
6,229
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(54)
29. 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, 2024
and December 31, 2023:
December 31, 2024
December 31, 2023
Carrying amount
Fair value
Carrying amount
Fair value
Level 1(17)
Level 2
Level 1(17)
Level 2
Cash and cash equivalents (1)
$ 856,797 $
— $ 856,797
$ 540,473 $
— $ 540,473
Term deposits (1)
—
—
—
1,136
—
1,136
Restricted cash (1)
2,177
—
2,177
2,085
—
2,085
Other receivables and deposits (1)
22,626
—
22,626
21,670
—
21,670
Other assets (1)
—
—
—
170
—
170
Marketable securities (2)
166,723
— 166,723
100,794
— 100,794
Investments in debt securities (3)
5,445
—
5,445
8,004
—
8,004
Settlement receivables (4)
—
57,832
57,832
—
49,387
49,387
Redemption option derivative asset (5)
—
7,575
7,575
—
5,635
5,635
Deferred consideration (6)
—
60,000
60,000
—
—
—
Accounts payable and accrued liabilities (1) (240,912)
— (240,912) (202,933)
— (202,933)
Deferred units liability (7)
(5,778)
—
(5,778)
(5,254)
—
(5,254)
Senior Notes, excluding derivative asset
(8)
— (498,578) (491,350)
— (498,326) (471,600)
Term Facility - commercial loans (9)
— (293,550) (293,550)
— (100,890) (100,890)
Term Facility - RRF loans (9)
— (119,935) (119,935)
—
(39,209)
(39,209)
Term Facility - revolving VAT facility (9)
—
(10,937)
(10,937)
—
(3,269)
(3,269)
Foreign currency collars - assets (10)
—
—
—
—
1,338
1,338
Foreign currency collars - liabilities (10)
—
(194)
(194)
—
—
—
Euro forward contracts - assets (11)
—
—
—
—
1,513
1,513
Euro forward contracts - liabilities (11)
—
(2,353)
(2,353)
—
(35)
(35)
Gold collars - liabilities (12)
—
(20,465)
(20,465)
—
(3,026)
(3,026)
Gold commodity swaps - liabilities (13)
—
(18,149)
(18,149)
—
(2,966)
(2,966)
Copper commodity swaps - liabilities (13)
—
(3,165)
(3,165)
—
(1,032)
(1,032)
Interest rate swaps - assets (14)
—
—
—
—
458
458
Interest rate swaps - liabilities (14)
—
(12,167)
(12,167)
—
(12,063)
(12,063)
Foreign currency forward contracts -
assets (15)
—
—
—
—
6,229
6,229
Foreign currency forward contracts -
liabilities (15)
—
(4,837)
(4,837)
—
—
—
Warrants (16)
—
52
52
—
—
—
Net financial assets (liabilities)
$ 807,078 $ (858,871) $ (44,565) $ 466,145 $ (596,256) $ (103,385)
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(55)
29. 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 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)
The deferred consideration is carried at amortized cost and approximates fair value (Note 8).
(7)
Deferred units liability classified as fair value through profit and loss with fair value based on observable prices in active markets.
(8)
Senior Notes, excluding the redemption option derivative asset (Note 16), is carried at amortized cost. The fair value of the Senior
Notes is based on observable prices in active markets.
(9)
The Term Facility (Note 16) is carried at amortized cost. The fair value of the Term Facility approximates the carrying amount.
(10) Canadian dollar and Euro zero-cost collars classified as fair value through profit and loss (Note 28(a)) with fair value based on
observable forward foreign exchange rates.
(11) Euro forward contracts classified as fair value through profit and loss (Note 28(b)) with fair value based on observable forward foreign
exchange rates.
(12) Gold zero-cost collars classified as fair value through profit and loss (Note 28(c)) with fair value based on observable forward metal
prices.
(13) Gold and copper commodity swaps classified as fair value through profit and loss (Note 28(d)) with fair value based on observable
forward metal prices.
(14) Interest rate swaps classified as fair value through profit and loss (Note 28(e)) with fair value based on observable forward interest
rates.
(15) U.S. dollar to Euro forward contracts classified as fair value through profit and loss (Note 28(f)) with fair value based on observable
forward foreign exchange rates.
(16) Warrants classified as fair value through profit and loss with fair value based on observable prices in active markets.
(17) 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, 2024 and 2023. For all other financial instruments, carrying amounts approximate fair value.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(56)
30. Revenue
For the year ended December 31, 2024, revenue from contracts with customers by product and segment was
as follows:
Turkiye
Canada
Greece
Total
Gold revenue - doré
$
419,707
$
471,106
$
—
$
890,813
Gold revenue - concentrate
194,344
—
148,178
342,522
Silver revenue - doré
3,808
1,931
—
5,739
Silver revenue - concentrate
6,429
—
33,462
39,891
Lead concentrate
—
—
19,574
19,574
Zinc concentrate
—
—
24,998
24,998
Revenue from contracts with customers
$
624,288
$
473,037
$
226,212
$ 1,323,537
Loss on revaluation of derivatives in trade
receivables - gold
(899)
—
(2,027)
(2,926)
Gain on revaluation of derivatives in trade
receivables - other metals
—
—
1,970
1,970
$
623,389
$
473,037
$
226,155
$ 1,322,581
For the year ended December 31, 2023, revenue from contracts with customers by product and segment was
as follows:
Turkiye
Canada
Greece
Total
Gold revenue - doré
$
301,692
$
344,614
$
—
$
646,306
Gold revenue - concentrate
165,087
—
112,290
277,377
Silver revenue - doré
3,115
1,701
—
4,816
Silver revenue - concentrate
4,428
—
32,608
37,036
Lead concentrate
—
—
25,456
25,456
Zinc concentrate
—
—
19,108
19,108
Revenue from contracts with customers
$
474,322
$
346,315
$
189,462
$ 1,010,099
Gain on revaluation of derivatives in trade
receivables - gold
1,027
—
436
1,463
Loss on revaluation of derivatives in trade
receivables - other metals
—
—
(3,061)
(3,061)
$
475,349
$
346,315
$
186,837
$ 1,008,501
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(57)
31. Production costs
December 31, 2024
December 31, 2023
Labour
$
123,798
$
99,680
Fuel
20,719
17,306
Reagents
47,134
48,669
Electricity
22,237
23,201
Mining contractors
58,700
45,364
Operating and maintenance supplies and services
135,733
129,565
Support costs
56,348
40,949
Royalties
79,402
51,813
Selling expenses
20,087
22,400
$
564,158
$
478,947
32. Mine standby costs
December 31, 2024
December 31, 2023
Stratoni
$
6,836
$
11,507
Other mine standby costs
4,433
4,599
$
11,269
$
16,106
33. Earnings per share
The weighted average number of common shares for the purposes of diluted earnings per share reconciles to
the weighted average number of common shares used in the calculation of basic earnings per share as
follows:
December 31, 2024
December 31, 2023
Weighted average number of common shares used in the
calculation of basic earnings per share
203,983,457
194,448,367
Dilutive impact of share options
682,803
503,751
Dilutive impact of restricted share units and restricted share
units with performance criteria
397,436
369,969
Dilutive impact of performance share units
477,846
6,419
Weighted average number of common shares used in the
calculation of diluted earnings per share
205,541,542
195,328,506
As at December 31, 2024, 40,915 options (2023 – 1,873,502) were excluded from the dilutive weighted-
average number of common shares calculation because their effect would have been anti-dilutive.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(58)
34. 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, 2024, 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, 2024. 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.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(59)
34. Segment information (continued)
As at and for the year ended December 31,
2024
Turkiye
Canada
Greece Romania*
Other
Total
Earnings and loss information
Revenue
$ 623,389 $ 473,037 $ 226,155 $
— $
— $ 1,322,581
Production costs
262,573 140,288
161,297
—
—
564,158
Depreciation and amortization
125,581
71,799
54,070
—
—
251,450
Earnings from mine operations
$ 235,235 $ 260,950 $
10,788 $
— $
— $ 506,973
Other significant items of income and
expense
Write-down of assets
$
3,938 $
1,857 $
340 $
— $
— $
6,135
Exploration and evaluation expenses
9,637
10,062
495
—
3,594
23,788
Mine standby costs
—
1,583
9,686
—
—
11,269
Income tax expense
44,224
82,300
7,626
—
608
134,758
Loss from discontinued operations, net of tax
attributable to shareholders of the Company
—
—
—
(11,788)
—
(11,788)
Capital expenditure information
Additions to property, plant and equipment
during the year (**)
$ 141,444 $ 104,616 $ 362,457 $
— $ 11,748 $ 620,265
Capitalized interest
—
—
33,839
—
—
33,839
Information about assets and liabilities
Property, plant and equipment
$ 839,030 $ 754,566 $ 2,511,051 $
— $ 14,135 $ 4,118,782
Goodwill
—
92,591
—
—
—
92,591
$ 839,030 $ 847,157 $ 2,511,051 $
— $ 14,135 $ 4,211,373
Debt
$
— $
— $ 424,422 $
— $ 491,003 $ 915,425
* Discontinued Operations (Note 6).
** Presented on an accrual basis; excludes asset retirement adjustments. Excludes capital expenditure from discontinued operations.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(60)
34. Segment information (continued)
As at and for the year ended December 31,
2023
Turkiye
Canada
Greece Romania*
Other
Total
Earnings and loss information
Revenue
$ 475,349 $ 346,315 $ 186,837 $
— $
— $ 1,008,501
Production costs
202,927 119,485
156,535
—
—
478,947
Depreciation and amortization
121,640
78,861
60,586
—
—
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
—
2,016
22,422
Mine standby costs
—
3,117
12,989
—
—
16,106
Income tax expense (recovery)
42,471
34,181
(15,387)
—
(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
—
92,591
—
—
—
92,591
$ 831,756 $ 822,276 $ 2,179,782 $
— $ 14,336 $ 3,848,150
Debt
$
— $
— $ 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.
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, 2024, revenue from one customer of the Company’s
Turkiye segment represents approximately $419.6 million (2023 – $301.7 million) of the Company’s total
revenue. For the Company's Canadian segment, one customer accounted for revenue of $468.2 million (2023
– $338.2 million) of the Company’s total revenue.
Eldorado Gold Corporation
Notes to the Consolidated Financial Statements
For the years ended December 31, 2024 and December 31, 2023
(Tables expressed in thousands of U.S. dollars, except number of shares, unless otherwise stated)
(61)