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Press release from Marketwire

Eldorado Gold Corporation: 2012 Second Quarter Financial and Operating Results

Profits and Cash flows Impacted by Lower Gold Production Earnings per share $0.07; Cash Flow per share $0.12

Friday, July 27, 2012

Eldorado Gold Corporation: 2012 Second Quarter Financial and Operating Results07:45 EDT Friday, July 27, 2012VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 27, 2012) - (all figures in United States dollars unless otherwise noted)Eldorado (TSX:ELD)(NYSE:EGO)(ASX:EAU) reports profit attributable to shareholders of the Company of $46.6 million for the period, and generates $82.1 million in cash from operating activities before changes in non-cash working capital.Q2 2012 Key Performance Indicators and Subsequent EventsGold production of 140,694 ounces at an average cash operating cost of $480 per ounce (Q2 2011 gold production - 162,429 ounces at $397 per ounce). Gold sales of 141,717 ounces at $1,612 per ounce, including 8,798 ounces of Efemcukuru sales related to pre-commercial production (Q2 2011 gold sales - 162,164 ounces at $1,510 per ounce). Profit attributable to shareholders of the Company of $46.6 million or $0.07 per share (Q2 2011 - $74.9 million or $0.14 per share) was impacted by lower production from Jinfeng as well as higher corporate, exploration and tax expenses. Generated $82.1 million in cash from operating activities before changes in non-cash working capital - a decrease of 28% over the same quarter in 2011. Certej Project, Romania was granted the Environmental Permit on July 9, 2012. Declared a dividend of Cdn$0.06 per common share on July 26, 2012. OutlookThe Company has revised its 2012 production guidance to 660,000 ounces of gold at average cash operating costs of $465 per ounce, due to delayed treatment of Efemcukuru concentrate at the Kisladag mine and the delayed completion of construction of the Eastern Dragon project. The Company's Kisladag, Tanjianshan, White Mountain and Jinfeng mines are forecast to produce 595,000 ounces at a cash operating cost of $471 per ounce. This performance compares favourably with beginning of year mid-range guidance of 595,000 ounces at cash operating costs of $482 per ounce. This production forecast does not include any allowance for production from the recently commissioned Olympias processing plant.Financial ResultsNet income for the quarter was $46.6 million (or $0.07 per share), compared with $74.9 million (or $0.14 per share) in the second quarter of 2011, a decrease of 38%. The decrease in net income year over year was due to lower earnings before taxes from gold mining operations ($18.9 million lower), as well as higher general and administrative expense ($6.1 million higher), exploration expense ($5.5 million higher) and tax expense ($5.1 million higher).Revenues from gold sales for the quarter of $214.2 million were down $30.7 million or 13%, from the second quarter of 2011 due to lower sales volumes partially offset by higher prices. The Company sold 132,919 ounces in the second quarter of 2012 as compared with 162,164 in the second quarter of 2011. The table below details the sales volumes by mine as compared to the previous year.Sales volumes by mine3 months ended June 30,6 months ended June 30,2012201120122011Gold ounces sold*132,919162,164283,580310,694- Kisladag61,99166,392127,155117,224- Tanjianshan27,17231,97755,98860,470- Jinfeng25,66146,38160,85894,899- White Mountain18,09517,41439,57938,101Average price per oz.$1,612$1,510$1,662$1,456Gold revenue (millions)$214.2$244.9$471.4$452.4* Not including 8,798 ounces of gold (3 months ending June 30, 2012) and 12,381 ounces of gold (6 months ending June 30, 2012) of Efemcukuru precommercial production.Operating PerformanceKisladagKisladag produced 61,575 ounces of gold at a cash operating cost of $333 per ounce in the quarter as compared to 66,688 ounces at a cash operating cost of $389 per ounce during Q2 2011. Gold production at Kisladag during the second quarter of 2012 was lower than the same quarter of 2011 mainly due to the stacking and leaching schedule. The actual ounces placed on the leach pad were higher in the second quarter 2012 than in the second quarter 2011 and the mine will see the benefit of these ounces in the third and fourth quarter of 2012.Tanjianshan(TJS)Tanjianshan produced 27,172 ounces of gold at a cash operating cost of $432 per ounce in the quarter as compared to 31,977 ounces at a cash operating cost of $343 per ounce in Q2 2011. Gold production at Tanjianshan during the second quarter of 2012 was slightly lower than the same quarter of 2011 as a result of lower head grades and mill throughput, partially offset by higher recovery rates.JinfengJinfeng produced 25,630 ounces of gold at a cash operating cost of $786 per ounce during the quarter compared to 46,381 ounces at a cash operating cost of $401 during Q2 2011. Gold production at Jinfeng in the second quarter 2012 was lower than the same quarter of 2011 due to lower head grades and mill throughput. The open pit is currently in a waste stripping phase and lower grade stockpile material is being treated to make up for the lack of open pit ore.White MountainWhite Mountain produced 18,095 ounces of gold at a cash operating cost of $622 per ounce during the quarter compared to 17,414 ounces at $518 per ounce during Q2 2011. This increase in production was largely as a result of improved recoveries due to the caustic pre-treatment plant placed into production in the second half of 2011.EfemcukuruDuring the quarter Efemcukuru recovered approximately 27,000 ounces in concentrate which was shipped to Kisladag for final treatment, and sold 8,798 ounces, which were considered sales from pre- commercial production for accounting purposes. At the end of the quarter there were approximately 42,000 ounces of in-situ gold contained in concentrate stored at Kisladag. Forecast 2012 production for Efemcukuru is now 65,000 ounces. Based on mine site production levels, year end inventory of concentrate remaining at Kisladag will total approximately 40,000 ounces. Work is ongoing to determine the most appropriate means to accelerate recovery of gold from the inventory.The mine and mill operated at expected levels during the quarter. At the Kisladag concentrate treatment plant an additional filter press unit arrived during the quarter and is expected to be operational early in the third quarter. Improvements are being made to the leaching circuit to improve recoveries to design levels.Vila NovaDuring the quarter Vila Nova processed 176,418 wet metric tonnes and sold 172,024 dry metric tonnes of iron ore at an average price of $85 per dry metric tonne compared to 153,013 wet metric tonnes produced and 43,418 dry metric tonnes sold in Q2 2011 at an average price of $130 per dry metric tonne. Iron ore production in the second quarter of 2012 increased at Vila Nova compared to the same quarter of 2011, mainly as a result of improved efficiencies in both the mine and treatment plant. Four shipments were made during the quarter, two of lump ore and two of sinter fines. Operating costs averaged $62 per dry metric tonne (Q2 2011 - $62 per dry metric tonne).StratoniDuring the second quarter, Stratoni mined 66,529 tonnes of run-of-mine ore and produced 17,278 tonnes of lead and zinc concentrate at an average cash cost of $593 per tonne of concentrate produced. During the same period, Stratoni sold 15,821 tonnes of concentrate at an average price of $843 per tonne (4,678 tonnes of lead concentrate at an average price of $1,423 per dry metric tonne and 11,143 tonnes of zinc concentrate at an average price of $682 per dry metric tonne, minus prior period finalised sales adjustments).DevelopmentEastern DragonActivity was limited during the quarter as we continued to focus on receiving the Project Permit Approval (PPA). Subsequent to the quarter end Eldorado was informed by the Heilongjiang Provincial Development and Reform Commission (PDRC) that it would require the formal approval of the PPA by the National Development and Reform Commission (NDRC) in Beijing. We are currently in the process of preparing the necessary paperwork to submit to NDRC, as well as determining the timeline for review and approval.TocantinzinhoAs part of the Environmental Impact Assessment (EIA), a Public Hearing was held on June 14, 2012 in Para State with participation by local and State government authorities and local stakeholders. There were no statements of opposition to the Tocantinzinho Project registered during the event.Assessment of the Tocantinzinho EIA application will continue under the guidance of the State environmental agency. Processing of the application is expected to be completed by the end of the year. Preparation of the feasibility study is ongoing with completion scheduled for late in the third quarter.Perama HillReceipt of the PEIA approval for Perama Hill in February marked a major milestone in the permitting process for the project. The EIA application was subsequently submitted to the Ministry of Environment and Forestry for approval. This application will be processed under the fast track program for capital investment projects. The application continues to be monitored closely and it appears that changes in Greece resulting from recent elections have not adversely impacted the operation of the bureaucracy or progress on the application.Field work on the Perama Hill site resumed after several years of inactivity. Geotechnical drilling and analysis is underway and we expect exploration drilling in the Perama South deposit to start in the third quarter.OlympiasRehabilitation of the Olympias underground mine and refurbishment of the processing plant continued during the quarter. In the mine, 532 meters (m) of underground access was rehabilitated or developed. Portal development was completed for the 8.5 km tunnel linking Stratoni and Olympias during the quarter and mining of the adit began. Metallurgical testwork to evaluate the proposed new processing facility at Stratoni continued during the second quarter.Commissioning of the Olympias processing plant started late in the second quarter and we expect concentrate production from the historic tailings to commence early in the third quarter.SkouriesDuring the second quarter the initial mobilization of support equipment, facilities and personnel was conducted. The site survey began and the layout of the main access road was finalized. Tree cutting began on forest land acquired from the forestry department.CertejOn July 9, 2012 the Environmental Permit for Certej was approved by the Regional Department of Environment. This was the final major milestone in the environmental permitting process for Certej. Land acquisition activities continue to progress satisfactorily as a precursor to our construction permit application.A drill program to provide metallurgical samples was completed during the quarter and exploration drilling is ongoing.Exploration UpdateThe Company completed 47,300 meters of exploration drilling during the quarter at our exploration projects and mine operations in Turkey, Greece, Romania, China, and Brazil.TurkeyExploration in Turkey during the quarter focused on drilling at our Efemçukuru mine site, identification of new exploration target areas at Kisladag and sampling and mapping activities at several reconnaissance projects.At Efemçukuru, 44 drillholes (7,500m) were completed during the quarter on the Kestane Beleni northwest extension and the Kokarpinar vein targets. The most significant result was the identification of a new high-grade zone in a previously untested portion of the Kokarpinar vein, with drillhole intercepts of 1.64m @ 298.35 g/t Au and 310.54 g/t Ag (KV-419); 1.91m @ 8.84 g/t Au and 55.66 g/t Ag (KV-417); and 0.75m @ 8.82 g/t Au and 13.10 g/t Ag (KV-420). These three drillholes pierce the vein at the same elevation over a 200m strike length, and the high grade shoot they define is open up-dip, down-dip, and to the north.At our reconnaissance projects, drilling commenced late in the quarter at the Sebin porphyry+epithermal prospect, and drill target definition, permitting and access road construction were completed at the Atalan, Dolek and Gaybular projects.GreeceDrilling continued during the quarter on the Piavitsa prospect, with twelve holes completed and approximately 3,000m drilled. Drilling is targeting polymetallic, Au+Ag rich, carbonate replacement sulphide mineralization along the Stratoni fault zone, similar to that typical of the Olympias deposit. All drillholes have intersected the fault zone at or near the projected depth and have cut intervals of massive sulphide, disseminated sulphide or oxide material within the fault zone. Assay results to date have demonstrated that high gold values can occur in any of these forms of mineralization. Notable results include intercepts of: 4.6m @ 4.06 g/t Au and 208.0 g/t Ag (PHG-060); 7.00m @ 4.94 g/t Au and 50.0 g/t Ag (PHG-061); 5.0m @ 4.07 g/t Au and 2.00 g/t Ag (PHG-062); and 12 m @ 1.86 g/t Au (PHG-068). Drilling in the second half of the year will continue to test the Stratoni fault zone with a drillhole spacing of approximately 200m x 200m, to provide drillhole density to support a year-end inferred resource estimate.At the Fisoka Cu+Au porphyry prospect, drilling commenced during the quarter in an area where historical drilling by TVX and a Greek precursor company delineated a shallow, supergene enriched chalcocite zone. Initial holes are targeting areas of the enriched zone where previous programs suffered from poor core recovery, as well as deeper underlying areas that were not previously tested.At Perama Hill, geological mapping and prospecting were completed over Perama Hill and Perama South. Initial results from geochemical sampling included high Au values (5-10 g/t Au) from stratabound mineralization and crosscutting breccia bodies at Perama South. Additional sampling is planned prior to outlining a drilling program to test for extensions of these mineralized zones.RomaniaOur exploration activities in Romania are focused on projects in the Certej Mining District. At the Certej deposit, drill testing of two areas began during the quarter. The target areas are a mineralized zone along the western edge of the proposed open pit, plus a poorly-drilled zone of gold mineralization that links the lower parts of the West and Main Zones. This zone lies beneath the present pit design, and is largely classified as an Inferred Mineral Resource.ChinaExploration drilling in China during the quarter included programs in the Guizhou, Jilin, and Qinghai regions. In Guizhou, exploration drilling was conducted within the Jinfeng mining license and on surrounding exploration licenses.At the Jinfeng mine, 40 drillholes totaling over 10,400 metres of drilling were completed from surface and underground rigs. Much of the drill targeting was based on the revised structural model for the deposit. Positive results were obtained from all areas tested. Significant results during the quarter included intercepts of 29.0m @ 5.92 g/t Au (HDDS0253) and 19.0m @ 6.19 g/t Au (HDDS0258) from just below the design pit in the Rongban portion of the deposit; 55m @ 5.3 g/t Au (HDDU-0155), and 80 m @ 2.63 g/t Au (HDDU-0160) from the F3 mineralized zone; 4.0m @ 12.58 g/t Au (HDDU0141) and 6.0m @ 6.3 g/t Au (HDDU0139) along the down-dip projection of the F7 mineralized fault; and 11.0m @ 12.34 g/t Au (HDDU0130) and 11.0m @ 21.56 g/t Au (HDDU0129) from an interpreted fault linking the F3 and F7 mineralized faults.In Qinghai (Tanjianshan), exploration drilling commenced during the quarter at the Xijingou deposit and at the Qinlongtan North target area, with over 4,000m completed between the areas. Assay results are pending.BrazilExploration efforts at Tocantinzinho continue to focus on drill testing geochemical and geophysical targets peripheral to the Tocantinzinho deposit. Six drill holes were completed during the quarter. Diamond drilling at the Agua Branca project (35km south of Tocantinzinho) has focused on expanding known mineralization at Camarao Hill. Twelve drill holes were completed in the second quarter for over 3,000 m of drilling.Corporate DevelopmentsEldorado is pleased to announce the following senior management appointments:Dr. Tim Baker has joined the Vancouver office as Chief Geoscientist. Tim most recently held the post of Head of the Geological Survey of South Australia, and prior positions as Exploration Manager for Sovereign Metals Ltd. and Senior Lecturer at James Cook University. Tim will provide technical and scientific oversight to our exploration programs and he will contribute to the training and development of our geologic staff.Mr. Britt Reid will join our team in Greece as General Manager, Skouries Project. Britt has an extensive background in project development and mine management, including general manager roles at the Andacollo and Quebrada Blanca copper mines. His experience will be particularly useful as we develop the Skouries copper-gold deposit.About EldoradoEldorado is a gold producing, exploration and development company actively growing businesses in Turkey, China, Greece, Brazil and Romania. With our international expertise in mining, finance and project development, together with highly skilled and dedicated staff, we believe that our Company is well positioned to grow in value as we create and pursue new opportunities.Eldorado Gold Corporation's common shares trade on the Toronto Stock Exchange (TSX:ELD) and the New York Stock Exchange (NYSE:EGO). Our Chess Depositary Interests trade on the Australian Securities Exchange (ASX:EAU).ON BEHALF OF ELDORADO GOLD CORPORATIONPaul N. Wright, Chief Executive OfficerConference CallEldorado will host a conference call on Friday, July 27, 2012 to discuss the 2012 Second Quarter Financial and Operating Results at 11:30 a.m. EDT (8:30 a.m. PDT). You may participate in the conference call by dialing 416-340-9432 in Toronto or 1-877-440-9795 toll free in North America and asking for the Eldorado Conference Call with Chairperson: Paul Wright, CEO of Eldorado Gold.The call will be available on Eldorado's website. www.eldoradogold.com. A replay of the call will be available until August 3, 2012 by dialling 905-694-9451 in Toronto or 1-800-408-3053 toll free in North America and entering the Pass code: 3971093.Qualified Person(s)Dr. Peter Lewis, P.Geo., V.P. Exploration for Eldorado Gold Corporation, is the Qualified Person for the technical disclosure of exploration results in this news release. Dr. Lewis is the Qualified Person as defined in the National Instrument 43-101 (Standards of Disclosure for Mineral Projects) of the Canadian Securities Regulators, responsible for preparing or supervising the preparation of the scientific or technical information contained in this document and verifying the technical data disclosed in the document relating to exploration results. Dr. Lewis has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr. Lewis consents to the inclusion in this news release of the matters based on his information in the form and context in which it appears.Assay results reported in this release for the Chalkidiki district were diamond drill core samples prepared at Eldorado's sample preparation facilities at Stratoni and Cannakale, and assayed at ACME laboratories in Vancouver. Assay results for the Efemçukuru project were diamond drill core samples prepared at Eldorado's sample preparation facility at Cannakale and assayed at the ALS laboratory in Vancouver, Canada. Assay results for the Jinfeng project were diamond drill core samples prepared at our sample preparation facility at Jinfeng and assayed at the ALS facility in Guangzhou, China. All samples are sawn half core. Certified standard reference materials, field duplicate, and blank samples were inserted prior to shipment from the preparation site at Jinfeng, Stratoni, or Cannakale.Certain of the statements made herein may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Often, but not always, forward- looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements or information herein include, but are not limited, to the Company's Q2, 2012 Financial and Operating Results.Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. We have made certain assumptions about the forward-looking statements and information and even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: gold price volatility; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; mining operational and development risk; litigation risks; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment; currency fluctuations; speculative nature of gold exploration; global economic climate; dilution; share price volatility; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property, as well as those factors discussed in the sections entitled "Forward-Looking Statements" and "Risk Factors" in the Company's Annual Information Form & Form 40-F dated March 31, 2012.There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward looking statements and information continually as conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada and the U.S.Cautionary Note to US Investors Concerning Estimates of Measured, Indicated and Inferred ResourcesNote to U.S. Investors. While the terms "mineral resource", "measured mineral resource," "indicated mineral resource", and "inferred mineral resource" are recognized and required by Canadian regulations, they are not defined terms under standards in the United States and normally are not permitted to be used in reports and registration statements filed with the SEC. As such, information contained in this report concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by U.S companies in SEC filings. With respect to "indicated mineral resource" and "inferred mineral resource" there is a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward- looking statements and information continually as conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada and the U.S.Information packages: reception@eldoradogold.comEldorado Gold CorporationUnaudited Condensed Consolidated Balance Sheets(Expressed in thousands of U.S. dollars)NoteJune 30, 2012December 31, 2011$$ASSETSCurrent assetsCash and cash equivalents314,590393,763Restricted cash657,05955,390Marketable securities5,4182,640Accounts receivable and other60,97942,309Inventories218,406164,057656,452658,159Non-current inventories22,27326,911Investments in significantly influenced companies21,05218,808Deferred income tax assets3,4494,259Restricted assets and other32,38838,430Defined benefit pension plan84,634-Property, plant and equipment5,914,9782,847,910Goodwill640,479365,9287,295,7053,960,405LIABILITIES & EQUITYCurrent liabilitiesAccounts payable and accrued liabilities161,823168,367Current debt770,00581,031231,828249,398Debt750,000-Asset retirement obligations50,64043,213Defined benefit pension plan8-19,969Deferred income tax liabilities871,371336,5791,203,839649,159EquityShare capital95,282,3682,855,689Treasury stock(7,355)(4,018)Contributed surplus70,44430,441Accumulated other comprehensive loss(16,931)(10,069)Retained earnings447,311382,716Total equity attributable to shareholders of the Company5,775,8373,254,759Attributable to non-controlling interests316,02956,4876,091,8663,311,2467,295,7053,960,405Approved on behalf of the Board of Directors(Signed) Robert R. GilmoreDirector (Signed) Paul N. WrightDirector The accomanying notes are an integral part of these consolidated financial statements.Eldorado Gold CorporationUnaudited Condensed Consolidated Income Statements(Expressed in thousands of U.S. dollars except per share amounts)Three months ended June 30,Six months ended June 30,2012201120122011$$$$RevenueMetal sales244,191252,556515,740471,724Cost of salesProduction costs94,48681,431185,725155,742Depreciation and amortization25,14529,84352,55361,060119,631111,274238,278216,802Gross profit124,560141,282277,462254,922Exploration expenses10,0734,60518,7698,446General and administrative expenses19,66513,57435,82734,608Defined benefit pension plan expense6264331,261856Share based payments3,7914,45212,81411,804Transaction costs1,649-19,453-Foreign exchange loss (gain)8061,381(301)2,028Operating profit87,950116,837189,639197,180Loss (gain) on disposal of assets659(3,092)446(3,092)Gain on marketable securities and other investments-(654)(1,032)(1,289)Loss on investments in significantly influenced companies4635981,7441,794Other income(1,431)(518)(2,377)(2,016)Asset retirement obligation accretion503407871773Interest and financing costs1,4461,5252,1343,114Profit before income tax86,310118,571187,853197,896Income tax expense36,80536,81864,53057,443Profit for the period49,50581,753123,323140,453Attributable to:Shareholders of the Company46,62474,865114,475127,338Non-controlling interests2,8816,8888,84813,11549,50581,753123,323140,453Weighted average number of shares outstandingBasic711,449548,976662,949548,654Diluted713,050551,696664,634551,469Earnings per share attributable to shareholdersof the Company:Basic earnings per share0.070.140.170.23Diluted earnings per share0.070.140.170.23The accomanying notes are an integral part of these consolidated financial statements.Eldorado Gold CorporationUnaudited Condensed Consolidated Statements of Comprehensive Income(Expressed in thousands of U.S. dollars)Three months ended June 30,Six months ended June 30,2012201120122011$$$$Profit for the period49,50581,753123,323140,453Other comprehensive income loss:Change in fair value of available-for-sale financial assets (netof income taxes of nil and $12; and nil and $12)(1,024)(570)(1,137)(984)Realized gains on disposal of available-for-sale financialassets transferred to net income-(272)(24)(434)Actuarial losses on defined benefit pension plans(5,701)-(5,701)-Total other comprehensive loss for the period(6,725)(842)(6,862)(1,418)Total comprehensive income for the period42,78080,911116,461139,035Attributable to:Shareholders of the Company39,89974,023107,613125,920Non-controlling interests2,8816,8888,84813,11542,78080,911116,461139,035The accomanying notes are an integral part of these consolidated financial statements.Eldorado Gold CorporationUnaudited Condensed Consolidated Statements of Cash Flows(Expressed in thousands of U.S. dollars)Three months ended June 30,Six months ended June 30,Note2012201120122011$$$$Cash flows generated from (used in):Operating activitiesProfit for the period49,50581,753123,323140,453Items not affecting cashAsset retirement obligation accretion503407871773Depreciation and amortization25,14529,84352,55361,060Unrealized foreign exchange (gain) loss(877)3,028(363)4,761Deferred income tax expense (recovery)2,298(2,211)(6,688)(9,705)Loss (gain) on disposal of assets659(3,092)446(3,092)Loss on investments in significantly influenced companies4635981,7441,794Gain on marketable securities and other investments-(654)(1,032)(1,289)Share based payments3,7914,45212,81411,804Defined benefit pension plan expense6264331,26185682,113114,557184,929207,415Changes in non-cash working capital11(123,116)(30,594)(142,657)(16,322)(41,003)83,96342,272191,093Investing activitiesNet cash received on acquisition of subsidiary5--18,789-Purchase of property, plant and equipment(114,598)(47,264)(167,112)(125,602)Proceeds from the sale of property, plant and equipment132-79117Net proceeds on pre-production sales13,958-20,022-Purchase of marketable securities(2,152)(214)(2,152)(214)Proceeds from the sale of marketable securities-5,4072306,345Funding of non-registered supplemental retirement planinvestments, net20,509(4,980)14,486(4,980)Investments in significantly influenced companies(2,716)-(3,412)(1,318)Increase in restricted cash(382)2(1,669)(2,998)(85,249)(47,049)(120,027)(128,750)Financing activitiesIssuance of common shares for cash10,7415,23916,8317,985Dividend paid to non-controlling interests(1,271)-(1,271)(3,622)Dividend paid to shareholders--(49,880)(27,741)Purchase of treasury stock-(288)(6,011)(6,158)Long-term and bank debt proceeds50,0001,44650,0003,203Long-term and bank debt repayments(5,524)(31,789)(11,087)(44,716)53,946(25,392)(1,418)(71,049)Net (decrease) increase in cash and cash equivalents(72,306)11,522(79,173)(8,706)Cash and cash equivalents - beginning of period386,896294,116393,763314,344Cash and cash equivalents - end of period314,590305,638314,590305,638The accomanying notes are an integral part of these consolidated financial statements.Eldorado Gold CorporationUnaudited Condensed Consolidated Statements of Changes in Equity(Expressed in thousands of U.S. dollars)Three months ended June 30,Six months ended June 30,2012201120122011$$$$Share capitalBalance beginning of period5,258,9492,818,2382,855,6892,814,679Shares issued upon exercise of share options, for cash10,7414,42016,8316,500Transfer of contributed surplus on exercise of options11,6481,54718,1562,360Shares issued on acquisition of European Goldfields Ltd.5--2,380,140-Shares issued for deferred phantom units1,030-11,552-Shares issued upon exercise of warrants, for cash-819-1,485Balance end of period5,282,3682,825,0245,282,3682,825,024Treasury stockBalance beginning of period(8,457)(5,870)(4,018)-Purchase of treasury stock-(288)(6,011)(6,158)Shares redeemed upon exercise of restricted share units1,1021,7262,6741,726Balance end of period(7,355)(4,432)(7,355)(4,432)Contributed surplusBalance beginning of period80,28928,32630,44122,967Share based payments3,9355,77512,15011,947Shares redeemed upon exercise of restricted share units(1,102)(1,726)(2,674)(1,726)Options issued on acquisition of European Goldfields Ltd.5--31,130-Deferred phanton units granted on acquisition of European Goldfields Ltd. - - 29,105 -Transfer to share capital on exercise of options and deferred phantom units (12,678) (1,547) (29,708) (2,360)Balance end of period70,44430,82870,44430,828Accumulated other comprehensive lossBalance beginning of period(10,206)(2,213)(10,069)(1,637)Other comprehensive loss for the period(6,725)(842)(6,862)(1,418)Balance end of period(16,931)(3,055)(16,931)(3,055)Retained earningsBalance beginning of period400,687149,953382,716125,221Dividends paid--(49,880)(27,741)Profit attributable to shareholders of the Company46,62474,865114,475127,338Balance end of period447,311224,818447,311224,818Total equity attributable to shareholders of the Company5,775,8373,073,1835,775,8373,073,183Non-controlling interestsBalance beginning of period322,54738,62656,48736,021Profit attributable to non-controlling interests2,8816,8888,84813,115Dividends declared to non-controlling interests(9,399)(4,473)(9,399)(8,095)Acquired non-controlling interest5--260,093-Balance end of period316,02941,041316,02941,041Total equity6,091,8663,114,2246,091,8663,114,224The accomanying notes are an integral part of these consolidated financial statements.Click here for the Unaudited Consolidated Financial Statements for the quarter ended June 30, 2012 in PDF: http://media3.marketwire.com/docs/e726fs.pdfFOR FURTHER INFORMATION PLEASE CONTACT: Nancy WooEldorado Gold CorporationVice President Investor Relations604-601-6650 or 1-888-353-8166604-687-4026 (FAX)nancyw@eldoradogold.comwww.eldoradogold.com