Exhibit 99.1
Condensed Consolidated Interim Financial Statements
June 30, 2021 and 2020
(Unaudited)
(Expressed in thousands of U.S. dollars)
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Financial Position
As at June 30, 2021 and December 31, 2020
(Unaudited – in thousands of U.S. dollars)
As at | Note | June 30, 2021 | December 31, 2020 | ||||||||||||||
ASSETS | |||||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents | $ | 409,733 | $ | 451,962 | |||||||||||||
Term deposits | 1,001 | 59,034 | |||||||||||||||
Accounts receivable and other | 6 | 86,234 | 73,216 | ||||||||||||||
Inventories | 2(c),7 | 170,754 | 164,135 | ||||||||||||||
Current portion of employee benefit plan assets | 5,900 | 5,749 | |||||||||||||||
673,622 | 754,096 | ||||||||||||||||
Restricted cash | 2,662 | 2,097 | |||||||||||||||
Other assets | 17,853 | 39,562 | |||||||||||||||
Property, plant and equipment | 2(c) | 4,051,887 | 4,042,199 | ||||||||||||||
Goodwill | 92,591 | 92,591 | |||||||||||||||
$ | 4,838,615 | $ | 4,930,545 | ||||||||||||||
LIABILITIES & EQUITY | |||||||||||||||||
Current liabilities | |||||||||||||||||
Accounts payable and accrued liabilities | $ | 152,427 | $ | 179,372 | |||||||||||||
Current portion of lease liabilities | 10,274 | 11,297 | |||||||||||||||
Current portion of debt | 8 | 66,667 | 66,667 | ||||||||||||||
Current portion of asset retirement obligations | 4,701 | 4,701 | |||||||||||||||
234,069 | 262,037 | ||||||||||||||||
Debt | 8 | 359,640 | 434,465 | ||||||||||||||
Lease liabilities | 13,263 | 14,659 | |||||||||||||||
Employee benefit plan obligations | 21,654 | 21,974 | |||||||||||||||
Asset retirement obligations | 109,581 | 106,677 | |||||||||||||||
Deferred income tax liabilities | 2(c) | 383,308 | 412,162 | ||||||||||||||
1,121,515 | 1,251,974 | ||||||||||||||||
Equity | |||||||||||||||||
Share capital | 12 | 3,224,830 | 3,144,644 | ||||||||||||||
Treasury stock | (10,295) | (11,452) | |||||||||||||||
Contributed surplus | 2,639,288 | 2,638,008 | |||||||||||||||
Accumulated other comprehensive loss | (30,297) | (30,297) | |||||||||||||||
Deficit | 2(c) | (2,147,004) | (2,103,205) | ||||||||||||||
Total equity attributable to shareholders of the Company | 3,676,522 | 3,637,698 | |||||||||||||||
Attributable to non-controlling interests | 40,578 | 40,873 | |||||||||||||||
3,717,100 | 3,678,571 | ||||||||||||||||
$ | 4,838,615 | $ | 4,930,545 |
Subsequent events (Note 20)
Approved on behalf of the Board of Directors
(signed) John Webster Director (signed) George Burns Director
Date of approval: July 29, 2021
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Operations
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars except share and per share amounts)
Three months ended | Six months ended | ||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||
Note | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||
Metal sales | 9 | $ | 233,224 | $ | 255,917 | $ | 457,842 | $ | 460,572 | ||||||||||||||||||||
Cost of sales | |||||||||||||||||||||||||||||
Production costs | 112,800 | 109,477 | 221,360 | 210,839 | |||||||||||||||||||||||||
Depreciation and amortization | 2(c) | 51,034 | 53,285 | 103,531 | 102,500 | ||||||||||||||||||||||||
163,834 | 162,762 | 324,891 | 313,339 | ||||||||||||||||||||||||||
Earnings from mine operations | 69,390 | 93,155 | 132,951 | 147,233 | |||||||||||||||||||||||||
Exploration and evaluation expenses | 7,828 | 2,333 | 11,889 | 5,560 | |||||||||||||||||||||||||
Mine standby costs | 10 | 2,094 | 5,029 | 3,721 | 9,059 | ||||||||||||||||||||||||
General and administrative expenses | 9,779 | 6,157 | 19,924 | 14,444 | |||||||||||||||||||||||||
Employee benefit plan expense | 616 | 766 | 1,365 | 1,457 | |||||||||||||||||||||||||
Share-based payments expense | 13 | 1,922 | 2,863 | 3,703 | 4,658 | ||||||||||||||||||||||||
Impairment of property, plant and equipment | 5 | 99,497 | — | 99,497 | — | ||||||||||||||||||||||||
Write-down (recovery) of assets | 320 | (295) | (430) | (92) | |||||||||||||||||||||||||
Foreign exchange gain | (330) | (1,238) | (6,273) | (2,000) | |||||||||||||||||||||||||
(Loss) earnings from operations | (52,336) | 77,540 | (445) | 114,147 | |||||||||||||||||||||||||
Other income | 11 | 9,636 | 1,356 | 10,314 | 36 | ||||||||||||||||||||||||
Finance costs | 11 | (15,500) | (6,480) | (25,838) | (22,687) | ||||||||||||||||||||||||
(Loss) earnings from operations before income tax | (58,200) | 72,416 | (15,969) | 91,496 | |||||||||||||||||||||||||
Income tax expense | 2(c) | 146 | 25,243 | 28,533 | 47,822 | ||||||||||||||||||||||||
Net (loss) earnings for the period | $ | (58,346) | $ | 47,173 | $ | (44,502) | $ | 43,674 | |||||||||||||||||||||
Attributable to: | |||||||||||||||||||||||||||||
Shareholders of the Company | 2(c) | (55,737) | 49,089 | (43,798) | 46,183 | ||||||||||||||||||||||||
Non-controlling interests | (2,609) | (1,916) | (704) | (2,509) | |||||||||||||||||||||||||
Net (loss) earnings for the period | $ | (58,346) | $ | 47,173 | $ | (44,502) | $ | 43,674 | |||||||||||||||||||||
Weighted average number of shares outstanding (thousands) | |||||||||||||||||||||||||||||
Basic | 181,599 | 169,867 | 178,086 | 167,524 | |||||||||||||||||||||||||
Diluted | 181,599 | 173,787 | 178,086 | 171,342 | |||||||||||||||||||||||||
Net (loss) earnings per share attributable to shareholders of the Company: | |||||||||||||||||||||||||||||
Basic (loss) earnings per share | 2(c) | $ | (0.31) | $ | 0.29 | $ | (0.25) | $ | 0.28 | ||||||||||||||||||||
Diluted (loss) earnings per share | 2(c) | $ | (0.31) | $ | 0.28 | $ | (0.25) | $ | 0.27 | ||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Comprehensive (Loss) Income
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars)
Three months ended | Six months ended | ||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||
Note | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Net (loss) earnings for the period | 2(c) | $ | (58,346) | $ | 47,173 | $ | (44,502) | $ | 43,674 | ||||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||||||||
Items that will not be reclassified to earnings or loss: | |||||||||||||||||||||||||||||
Change in fair value of investments in equity securities, net of tax | 95 | 1,766 | (30) | 898 | |||||||||||||||||||||||||
Actuarial gains (losses) on employee benefit plans, net of tax | 64 | 30 | 30 | (198) | |||||||||||||||||||||||||
Total other comprehensive income for the period | 159 | 1,796 | — | 700 | |||||||||||||||||||||||||
Total comprehensive (loss) income for the period | $ | (58,187) | $ | 48,969 | $ | (44,502) | $ | 44,374 | |||||||||||||||||||||
Attributable to: | |||||||||||||||||||||||||||||
Shareholders of the Company | 2(c) | (55,578) | 50,885 | (43,798) | 46,883 | ||||||||||||||||||||||||
Non-controlling interests | (2,609) | (1,916) | (704) | (2,509) | |||||||||||||||||||||||||
$ | (58,187) | $ | 48,969 | $ | (44,502) | $ | 44,374 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Cash Flows
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars)
Three months ended | Six months ended | ||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||
Note | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Cash flows generated from (used in): | |||||||||||||||||||||||||||||
Operating activities | |||||||||||||||||||||||||||||
Net (loss) earnings for the period | 2(c) | $ | (58,346) | $ | 47,173 | $ | (44,502) | $ | 43,674 | ||||||||||||||||||||
Items not affecting cash: | |||||||||||||||||||||||||||||
Depreciation and amortization | 2(c) | 51,482 | 53,840 | 104,558 | 103,619 | ||||||||||||||||||||||||
Finance costs | 15,500 | 6,498 | 25,838 | 22,722 | |||||||||||||||||||||||||
Interest income | (1,173) | (894) | (1,475) | (1,283) | |||||||||||||||||||||||||
Unrealized foreign exchange loss (gain) | 675 | (512) | (1,689) | (3,050) | |||||||||||||||||||||||||
Income tax expense | 2(c) | 146 | 25,243 | 28,533 | 47,822 | ||||||||||||||||||||||||
Impairment of property, plant and equipment | 5 | 99,497 | — | 99,497 | — | ||||||||||||||||||||||||
(Gain) loss on disposal of assets | 11 | (98) | 96 | 847 | 2,550 | ||||||||||||||||||||||||
Gain on disposal of mining licences | 11 | (7,046) | — | (7,046) | — | ||||||||||||||||||||||||
Write-down (recovery) of assets | 320 | (295) | (430) | (92) | |||||||||||||||||||||||||
Share-based payments expense | 13 | 1,922 | 2,863 | 3,703 | 4,658 | ||||||||||||||||||||||||
Employee benefit plan expense | 616 | 766 | 1,365 | 1,457 | |||||||||||||||||||||||||
103,495 | 134,778 | 209,199 | 222,077 | ||||||||||||||||||||||||||
Property reclamation payments | (772) | (474) | (1,107) | (1,000) | |||||||||||||||||||||||||
Employee benefit plan payments | (289) | (435) | (521) | (671) | |||||||||||||||||||||||||
Income taxes paid | (27,517) | (18,128) | (52,013) | (32,847) | |||||||||||||||||||||||||
Interest paid | (13,278) | (17,588) | (15,483) | (20,358) | |||||||||||||||||||||||||
Interest received | 1,173 | 894 | 1,475 | 1,283 | |||||||||||||||||||||||||
Changes in non-cash working capital | 14 | (25,761) | 583 | (13,629) | (15,587) | ||||||||||||||||||||||||
Net cash generated from operating activities | 37,051 | 99,630 | 127,921 | 152,897 | |||||||||||||||||||||||||
Investing activities | |||||||||||||||||||||||||||||
Purchase of property, plant and equipment | (72,533) | (37,126) | (137,389) | (77,608) | |||||||||||||||||||||||||
Acquisition of subsidiary, net of $4,311 cash received | 4 | (19,336) | — | (19,336) | — | ||||||||||||||||||||||||
Proceeds from the sale of property, plant and equipment | 519 | 683 | 1,669 | 705 | |||||||||||||||||||||||||
Proceeds from sale of mining licences | 11 | 5,000 | — | 5,000 | — | ||||||||||||||||||||||||
Value added taxes related to mineral property expenditures, net | (1,631) | 168 | (4,199) | (5,483) | |||||||||||||||||||||||||
Decrease (increase) in term deposits | 1,904 | 49,964 | 58,034 | (1,561) | |||||||||||||||||||||||||
(Increase) decrease in restricted cash | (31) | (77) | (104) | 1,097 | |||||||||||||||||||||||||
Net cash (used in) generated from investing activities | (86,108) | 13,612 | (96,325) | (82,850) | |||||||||||||||||||||||||
Financing activities | |||||||||||||||||||||||||||||
Issuance of common shares, net of issuance costs | 2,300 | 60,243 | 14,134 | 87,079 | |||||||||||||||||||||||||
Acquisition of non-controlling interest | — | (7,500) | — | (7,500) | |||||||||||||||||||||||||
Contributions from non-controlling interests | 85 | 301 | 409 | 301 | |||||||||||||||||||||||||
Proceeds from (repayment of) revolving credit facility | 8 | (50,000) | — | (50,000) | 150,000 | ||||||||||||||||||||||||
Repayment of term loan | 8 | (22,233) | (33,333) | (33,333) | (33,333) | ||||||||||||||||||||||||
Principal portion of lease liabilities | (2,265) | (2,499) | (5,035) | (5,033) | |||||||||||||||||||||||||
Purchase of treasury stock | — | (3,679) | — | (3,679) | |||||||||||||||||||||||||
Net cash (used in) generated from financing activities | (72,113) | 13,533 | (73,825) | 187,835 | |||||||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (121,170) | 126,775 | (42,229) | 257,882 | |||||||||||||||||||||||||
Cash and cash equivalents - beginning of period | 530,903 | 308,780 | 451,962 | 177,742 | |||||||||||||||||||||||||
Cash in disposal group held for sale | — | (86) | — | (155) | |||||||||||||||||||||||||
Cash and cash equivalents - end of period | $ | 409,733 | $ | 435,469 | $ | 409,733 | $ | 435,469 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Changes in Equity
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars)
Three months ended | Six months ended | |||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Share capital | ||||||||||||||||||||||||||
Balance beginning of period | $ | 3,157,117 | $ | 3,075,100 | $ | 3,144,644 | $ | 3,054,563 | ||||||||||||||||||
Shares issued upon exercise of share options, for cash | 681 | 1,392 | 1,398 | 1,816 | ||||||||||||||||||||||
Shares issued upon exercise of performance share units | 1,172 | — | 1,172 | — | ||||||||||||||||||||||
Transfer of contributed surplus on exercise of options | 263 | 560 | 548 | 730 | ||||||||||||||||||||||
Shares issued on acquisition of subsidiary (Note 4) | 65,647 | — | 65,647 | — | ||||||||||||||||||||||
Shares issued to the public, net of share issuance costs | (50) | 58,903 | 11,421 | 78,846 | ||||||||||||||||||||||
Balance end of period | $ | 3,224,830 | $ | 3,135,955 | $ | 3,224,830 | $ | 3,135,955 | ||||||||||||||||||
Treasury stock | ||||||||||||||||||||||||||
Balance beginning of period | $ | (10,879) | $ | (8,314) | $ | (11,452) | $ | (8,662) | ||||||||||||||||||
Purchase of treasury stock | — | (3,679) | — | (3,679) | ||||||||||||||||||||||
Shares redeemed upon exercise of restricted share units | 584 | 406 | 1,157 | 754 | ||||||||||||||||||||||
Balance end of period | $ | (10,295) | $ | (11,587) | $ | (10,295) | $ | (11,587) | ||||||||||||||||||
Contributed surplus | ||||||||||||||||||||||||||
Balance beginning of period | $ | 2,639,067 | $ | 2,628,820 | $ | 2,638,008 | $ | 2,627,441 | ||||||||||||||||||
Share-based payments | 2,240 | 2,221 | 4,157 | 4,118 | ||||||||||||||||||||||
Acquisition of non-controlling interest | — | 4,171 | — | 4,171 | ||||||||||||||||||||||
Shares redeemed upon exercise of restricted share units | (584) | (406) | (1,157) | (754) | ||||||||||||||||||||||
Shares redeemed upon exercise of performance share units | (1,172) | — | (1,172) | — | ||||||||||||||||||||||
Transfer to share capital on exercise of options | (263) | (560) | (548) | (730) | ||||||||||||||||||||||
Balance end of period | $ | 2,639,288 | $ | 2,634,246 | $ | 2,639,288 | $ | 2,634,246 | ||||||||||||||||||
Accumulated other comprehensive loss | ||||||||||||||||||||||||||
Balance beginning of period | $ | (30,456) | $ | (30,062) | $ | (30,297) | $ | (28,966) | ||||||||||||||||||
Other comprehensive income for the period | 159 | 1,796 | — | 700 | ||||||||||||||||||||||
Balance end of period | $ | (30,297) | $ | (28,266) | $ | (30,297) | $ | (28,266) | ||||||||||||||||||
Deficit | ||||||||||||||||||||||||||
Balance beginning of period | $ | (2,091,267) | $ | (2,230,904) | $ | (2,103,206) | $ | (2,227,998) | ||||||||||||||||||
(Loss) earnings attributable to shareholders of the Company (Note 2(c)) | (55,737) | 49,089 | (43,798) | 46,183 | ||||||||||||||||||||||
Balance end of period | $ | (2,147,004) | $ | (2,181,815) | $ | (2,147,004) | $ | (2,181,815) | ||||||||||||||||||
Total equity attributable to shareholders of the Company | $ | 3,676,522 | $ | 3,548,533 | $ | 3,676,522 | $ | 3,548,533 | ||||||||||||||||||
Non-controlling interests | ||||||||||||||||||||||||||
Balance beginning of period | $ | 43,102 | $ | 58,711 | $ | 40,873 | $ | 59,304 | ||||||||||||||||||
Loss attributable to non-controlling interests | (2,609) | (1,916) | (704) | (2,509) | ||||||||||||||||||||||
Acquisition of non-controlling interest | — | (11,672) | — | (11,672) | ||||||||||||||||||||||
Contributions from non-controlling interests | 85 | 301 | 409 | 301 | ||||||||||||||||||||||
Balance end of period | $ | 40,578 | $ | 45,424 | $ | 40,578 | $ | 45,424 | ||||||||||||||||||
Total equity | $ | 3,717,100 | $ | 3,593,957 | $ | 3,717,100 | $ | 3,593,957 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
1. General Information
Eldorado Gold Corporation (individually or collectively with its subsidiaries, as applicable, “Eldorado” or the “Company”) is a gold and base metals mining, development, and exploration company. The Company has mining operations, ongoing development projects and exploration in Turkey, Canada, Greece, Romania, and Brazil.
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 ("CBCA").
The Company's head office, principal address and records are located at 550 Burrard Street, Suite 1188, Vancouver, British Columbia, Canada, V6C 2B5.
2. Basis of preparation
(a)Statement of compliance
These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34 ‘Interim Financial Reporting’. They do not include all of the information and footnotes required by International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) for full annual financial statements and should be read in conjunction with the Company’s audited annual consolidated financial statements as at and for the year ended December 31, 2020.
Except as described in Note 3, the same accounting policies were used in the preparation of these unaudited condensed consolidated interim financial statements as for the most recent audited annual consolidated financial statements and reflect all the adjustments necessary for fair presentation in accordance with IFRS for the interim periods presented.
These unaudited condensed consolidated interim financial statements were authorized for issue by the Company’s Board of Directors on July 29, 2021.
(b)Critical accounting estimates and judgements
The preparation of these unaudited condensed consolidated interim financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
Significant judgements made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty are the same as those that applied to the audited annual consolidated financial statements as at and for the year ended December 31, 2020.
(c)Immaterial error correction
During the second quarter of 2021, the Company determined that the net book value of certain of its property, plant and equipment was understated as a result of errors in the amounts recorded for depreciation. Management evaluated the materiality of the errors, both quantitatively and qualitatively, and concluded that the changes were not material to the consolidated financials statements taken as a whole for any prior period. The Company has revised opening deficit and corrected the error by recasting the prior period information in these unaudited condensed consolidated interim financial statements.
(1)
Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
2. Basis of preparation (continued)
The following tables set forth the effect of this immaterial error correction on the Company's unaudited condensed consolidated statements of operations for the three months ended March 31, 2021 and for the three and six month periods ended June 30, 2020.
Three months ended March 31, 2021 | |||||||||||
Previously Reported | Correction | As recast | |||||||||
Depreciation | $ | 56,309 | (3,812) | $ | 52,497 | ||||||
Income tax expense | 28,249 | 138 | 28,387 | ||||||||
Net earnings for the period | 10,171 | 3,673 | 13,844 | ||||||||
Net earnings attributable to shareholders | 8,266 | 3,673 | 11,939 | ||||||||
Net earnings per share attributable to shareholders - basic and diluted | $ | 0.05 | $ | 0.02 | $ | 0.07 |
Three months ended June 30, 2020 | Six months ended June 30, 2020 | ||||||||||||||||||||||
Previously Reported | Correction | As recast | Previously Reported | Correction | As recast | ||||||||||||||||||
Depreciation | $ | 58,328 | (5,043) | $ | 53,285 | $ | 110,691 | (8,191) | $ | 102,500 | |||||||||||||
Income tax expense | 23,671 | 1,572 | 25,243 | 45,076 | 2,746 | 47,822 | |||||||||||||||||
Net earnings for the period | 43,702 | 3,471 | 47,173 | 38,229 | 5,445 | 43,674 | |||||||||||||||||
Net earnings attributable to shareholders | 45,618 | 3,471 | 49,089 | 40,738 | 5,445 | 46,183 | |||||||||||||||||
Comprehensive income attributable to shareholders | 47,414 | 3,471 | 50,885 | 41,438 | 5,445 | 46,883 | |||||||||||||||||
Net earnings per share attributable to shareholders - basic | 0.27 | 0.02 | 0.29 | 0.24 | 0.04 | 0.28 | |||||||||||||||||
Net earnings per share attributable to shareholders - diluted | $ | 0.26 | 0.02 | $ | 0.28 | $ | 0.24 | 0.03 | $ | 0.27 | |||||||||||||
The following table sets forth the effect of this immaterial error correction on the Company's unaudited condensed consolidated balance sheet as at December 31, 2020:
As at December 31, 2020 | |||||||||||||||||||||||
Previously Reported | Correction | As recast | |||||||||||||||||||||
Inventories | $ | 176,271 | (12,136) | $ | 164,135 | ||||||||||||||||||
Property, plant and equipment | 3,998,493 | 43,706 | 4,042,199 | ||||||||||||||||||||
Deferred income tax liabilities | 402,713 | 9,449 | 412,162 | ||||||||||||||||||||
Deficit | $ | (2,125,326) | 22,121 | $ | (2,103,205) |
There was no impact on the consolidated cash flow statements in the corresponding periods as a result of the recast, other than the amounts reported for depreciation, income tax expense and net earnings for the period changed by the amounts shown in the tables above.
(2)
Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
3. Significant accounting policies
(a)Adoption of new accounting standards
The Company adopted the new IASB standard, Interest Rate Benchmark Reform - Phase 2 which amends IFRS 9 Financial Instruments, IAS 39 Financial Instruments: Recognition and Measurement, IFRS 7 Financial Instruments: Disclosure, IFRS 4 Insurance Contracts, and IFRS 16 Leases. The amendment became effective January 1, 2021 and there was no material effect from the adoption of this amendment on the Company’s condensed consolidated interim financial statements.
A number of new standards and amendments to standards are effective for annual periods beginning after January 1, 2021 and earlier application is permitted; however, the Company has not early adopted and continues to evaluate the impact of the forthcoming or amended standards in preparing these condensed consolidated interim financial statements.
Property, plant and equipment - proceeds before intended use
On May 14, 2020, the IASB published a narrow scope amendment to IAS 16 Property, Plant and Equipment - Proceeds before Intended Use. The amendment prohibits deducting from the cost of property, plant and equipment amounts received from selling items produced while preparing the asset for its intended use. Instead, amounts received will be recognized as sales proceeds and related cost in profit or loss. The effective date is for annual periods beginning on or after January 1, 2022. The amendment must be applied retrospectively, but only to items of property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after the beginning of the earliest period presented in the financial statements in which the amendments are first applied. The Company will adopt this narrow scope amendment on the date it becomes effective and does not expect a revision to comparative financial information in its consolidated interim financial statements as a result of adoption.
Classification of liabilities as current or non-current
In January 2020, the IASB published narrow scope amendments to IAS 1 Presentation of financial statements. The narrow scope amendment clarifies that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the entity or events after the reporting date. The amendments are effective for annual periods beginning on or after January 1, 2023, and applied retrospectively. The Company will adopt the narrow scope amendments on the date they become effective and is currently evaluating the impact of the amendments on its consolidated interim financial statements.
(b) Change in estimate
The Company changed its estimate relating to total recoverable tonnes used to determine the depreciation, depletion and amortization of mineral properties and certain capitalized mine development costs, capitalized stripping costs, plant and mining assets whose estimated useful life is the same as the remaining life of the mine. Until December 31, 2020, the carrying amounts of these assets were depreciated, depleted or amortized over estimated recoverable tonnes of proven and probable mineral reserves. Effective January 1, 2021, total estimated recoverable tonnes for applicable mines also include a portion of inferred mineral resources considered to be highly probable to be economically extracted over the life of the mine. This change in estimate better reflects the pattern in which the asset's future economic benefits are expected to be consumed based on the current mine plans and was made as a result of increased experience in the conversion of inferred resources into proven and probable reserves for the applicable mines. 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.
This change in accounting estimate will reduce the Company's depreciation expense in the future. However, because the depreciation recorded in future periods depends on the volume of tonnes mined during those periods, the Company is not able to accurately estimate the impact of this change in estimate on future periods.
(3)
Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
4. Acquisition of QMX Gold Corporation
On April 7, 2021, the Company completed the acquisition of all of the outstanding common shares of QMX Gold Corporation ("QMX") not already owned by the Company by way of a plan of arrangement ("Arrangement"). Under the terms of the Arrangement, each shareholder other than Eldorado received, for each QMX share held, (i) CDN $0.075 in cash and (ii) 0.01523 of an Eldorado common share. QMX has interests in mineral properties in the Canadian province of Québec in proximity to the Company’s Lamaque operations and the Company owned 68,125,000 shares of QMX, or approximately 16% of QMX shares outstanding, prior to completion of the Arrangement.
On closing of the acquisition, QMX’s assets consisted primarily of mineral properties that do not yet contain proven and probable reserves. As QMX did not have processes capable of generating outputs and did not include an organized workforce, the Company determined that QMX did not meet the definition of a business in accordance with IFRS 3, Business Combinations, and as a result the acquisition has been accounted for as an asset acquisition.
The cost of the acquisition was allocated to the assets and liabilities acquired. The fair value of the mineral properties acquired was measured using a market comparison approach considering observable comparable transactions in a similar jurisdiction and stage of exploration. The deferred income tax assets primarily relate to loss carry-forwards for which fair value was determined based on the extent of anticipated future taxable income that can be reduced by the tax losses.
The purchase price is allocated to the identifiable assets acquired and liabilities assumed, based upon their estimated fair values at the date of acquisition. The Company's previously-held 16% interest in QMX was accounted for at its carrying amount of $2,323 and not remeasured to fair value, in accordance with the Company's accounting policy where previously-held interests are measured at cost.
The allocation of the consideration paid to the assets and liabilities of QMX is as follows:
Consideration paid: | |||||
Share consideration | $ | 63,806 | |||
Cash consideration | 21,988 | ||||
Cost of shares previously acquired | 2,323 | ||||
Transaction costs | 1,659 | ||||
QMX warrants outstanding | 1,130 | ||||
Total purchase price | $ | 90,906 |
Net cash paid of $19,336 included cash consideration of $21,988, transaction costs of $1,659 and is net of $4,311 cash acquired. QMX warrants include unexpired warrants for which, upon exercise, warrant holders will receive similar consideration as for QMX common shares. Shares of the Company totalling $1,841 were issued in June 2021 upon the exercise of the majority of these warrants.
Fair value of net assets acquired: | |||||
Cash | $ | 4,311 | |||
Property, plant and equipment and other assets | 8,995 | ||||
Mineral property | 75,636 | ||||
Deferred income tax asset | 14,122 | ||||
Asset retirement obligation | (3,252) | ||||
Accounts payable and accrued liabilities | (8,906) | ||||
Total purchase price | $ | 90,906 |
(4)
Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
5. Impairment of Tocantinzinho Project
As a result of a plan to consider selling Tocantinzinho, a non-core gold asset, the Company recorded impairment of $99,497 in June 2021 to recognize the mineral properties and capitalized development at their estimated fair value. The non-recurring fair value measurement of $108,000 has been categorized as a Level 3 fair value based on the expected consideration of a sale, less estimated costs of disposal.
6. Accounts receivable and other
June 30, 2021 | December 31, 2020 | ||||||||||
Trade receivables | $ | 24,264 | $ | 35,649 | |||||||
Value added tax and other taxes recoverable | 35,562 | 12,171 | |||||||||
Other receivables and advances | 9,379 | 6,037 | |||||||||
Prepaid expenses and deposits | 17,029 | 19,359 | |||||||||
$ | 86,234 | $ | 73,216 |
7. Inventories
June 30, 2021 | December 31, 2020 | ||||||||||
Ore stockpiles | $ | 5,603 | $ | 6,327 | |||||||
In-process inventory and finished goods (Note 2(c)) | 66,755 | 68,984 | |||||||||
Materials and supplies | 98,396 | 88,824 | |||||||||
$ | 170,754 | $ | 164,135 |
As at June 30, 2021, the Company recognized $182 and $16 in production costs and depreciation, respectively, to reduce the cost of lead and zinc concentrate inventory at Stratoni to net realizable value (as at June 30, 2020 – $740 and $72).
8. Debt
June 30, 2021 | December 31, 2020 | ||||||||||
Senior notes due June 2024, net of unamortized discount and transaction costs of $7,402 (December 31, 2020 - $8,680) (Note 8 (a)) | $ | 227,925 | $ | 226,647 | |||||||
Term loan, net of unamortized transaction costs of $1,118 (December 31, 2020 - $1,491) (Note 8 (b)) | 98,882 | 131,842 | |||||||||
Revolving credit facility (Note 8 (b)) | 100,000 | 150,000 | |||||||||
Redemption option derivative asset (Note 8 (a)) | (500) | (7,357) | |||||||||
$ | 426,307 | $ | 501,132 | ||||||||
Less: Current portion | 66,667 | 66,667 | |||||||||
Long-term portion | $ | 359,640 | $ | 434,465 |
(5)
Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
8. Debt (continued)
(a) Senior Secured Second Lien Notes due 2024
On June 5, 2019, the Company completed an offering of $300 million senior secured second lien notes (the "senior secured notes") at 98% of par value, with a coupon rate of 9.5% due June 1, 2024. The senior secured notes pay interest semi-annually on June 1 and December 1, beginning December 1, 2019.
The senior secured notes contain certain redemption features that constitute an embedded derivative asset, which is recognized separately at fair value and is classified as fair value through profit and loss. The decreases in fair value for the three and six months ended June 30, 2021, respectively, are $6,182 and $6,857, which are recognized in finance costs.
The senior secured notes contain covenants that restrict, among other things, the ability of the Company to incur certain capital expenditures, distributions in certain circumstances and sales of material assets, in each case, subject to certain conditions. The Company is in compliance with these covenants as at June 30, 2021.
The fair market value of the senior secured notes as at June 30, 2021 is $254,000 (December 31, 2020 – $260,500).
(b) Senior Secured Credit Facility
In May 2019, the Company executed a $450 million amended and restated senior secured credit facility (the "third amended and restated credit agreement" or "TARCA") which consists of the following:
i) A $200 million non-revolving term loan ("term loan") with six equal semi-annual payments commencing June 30, 2020.
ii) A $250 million revolving credit facility with a maturity date of June 5, 2023.
On March 30, 2020, the Company drew $150,000 under the revolving credit facility as a proactive measure in light of the uncertainty surrounding the novel coronavirus ("COVID-19") pandemic. The Company repaid $50,000 of the credit facility draw in June 2021 and as at June 30, 2021, $100,000 of the credit facility draw remains outstanding (December 31, 2020 - $150,000). The outstanding amount is classified as non-current according to its contractual maturity.
As at June 30, 2021, the Company has outstanding non-financial (Greece) and financial (Canada) letters of credit of EUR 58,216 and CDN $426, totaling $69,399 (December 31, 2020 - EUR 57,600 and CDN $400, totaling $70,800). The non-financial letters of credit were issued to secure certain obligations in connection with the Company's operations. In February 2021, the TARCA was amended such that the non-financial letters of credit no longer reduce credit availability under the revolving credit facility, thereby increasing the availability under the facility. An early repayment of $11,100 of principal as part of the scheduled semi-annual payment on the term loan was made in February 2021 in conjunction with this amendment, and in June 2021, the Company completed the remaining scheduled $22,233 semi-annual payment on the term loan. At June 30, 2021, the current availability under the credit facility is $150 million.
The TARCA contains covenants that restrict, among other things, the ability of the Company to incur additional unsecured indebtedness except in compliance with certain conditions, incur certain lease obligations, make distributions in certain circumstances, sell material assets or carry on a business other than one related to mining. Significant financial covenants include a minimum Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) to interest ratio and a maximum debt net of unrestricted cash ("net debt") to EBITDA ratio ("net leverage ratio"). The Company is in full compliance with its covenants at June 30, 2021.
Both the term loan and revolving credit facility bear interest at LIBOR plus a margin of 2.25% – 3.25%, dependent on a net leverage ratio pricing grid. As at June 30, 2021, the Company’s current interest charges and fees are as follows: LIBOR plus margin of 2.25% on the term loan and any amounts drawn from the revolving credit facility, 0.90% plus 0.13% on Greek non-financial letters of credit, the margin (2.25%) on the financial letters of credit secured by the revolving credit facility and 0.5625% standby fees on the available and undrawn portion of the revolving credit facility.
(6)
Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
9. Revenue
For the three months ended June 30, 2021, revenue from contracts with customers by product and segment were as follows:
Turkey | Canada | Greece | Total | ||||||||||||||||||||
Gold revenue - doré | $ | 79,944 | $ | 63,125 | $ | — | $ | 143,069 | |||||||||||||||
Gold revenue - concentrate | 41,218 | — | 21,366 | 62,584 | |||||||||||||||||||
Silver revenue - doré | 800 | 411 | — | 1,211 | |||||||||||||||||||
Silver revenue - concentrate | 1,300 | — | 4,357 | 5,657 | |||||||||||||||||||
Lead concentrate | — | — | 4,418 | 4,418 | |||||||||||||||||||
Zinc concentrate | — | — | 12,800 | 12,800 | |||||||||||||||||||
Revenue from contracts with customers | $ | 123,262 | $ | 63,536 | $ | 42,941 | $ | 229,739 | |||||||||||||||
Gain on revaluation of derivatives in trade receivables | 2,466 | — | 1,019 | 3,485 | |||||||||||||||||||
$ | 125,728 | $ | 63,536 | $ | 43,960 | $ | 233,224 |
For the three months ended June 30, 2020, revenue from contracts with customers by product and segment were as follows:
Turkey | Canada | Greece | Total | ||||||||||||||||||||
Gold revenue - doré | $ | 103,364 | $ | 55,595 | $ | — | $ | 158,959 | |||||||||||||||
Gold revenue - concentrate | 46,446 | — | 28,885 | 75,331 | |||||||||||||||||||
Silver revenue - doré | 489 | 168 | — | 657 | |||||||||||||||||||
Silver revenue - concentrate | 747 | — | 6,569 | 7,316 | |||||||||||||||||||
Lead concentrate | — | — | 3,007 | 3,007 | |||||||||||||||||||
Zinc concentrate | — | — | 6,175 | 6,175 | |||||||||||||||||||
Revenue from contracts with customers | $ | 151,046 | $ | 55,763 | $ | 44,636 | $ | 251,445 | |||||||||||||||
Gain on revaluation of derivatives in trade receivables | 324 | — | 4,148 | 4,472 | |||||||||||||||||||
$ | 151,370 | $ | 55,763 | $ | 48,784 | $ | 255,917 |
(7)
Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
9. Revenue (continued)
For the six months ended June 30, 2021, revenue from contracts with customers by product and segment were as follows:
Turkey | Canada | Greece | Total | ||||||||||||||||||||
Gold revenue - doré | $ | 164,896 | $ | 114,707 | $ | — | $ | 279,603 | |||||||||||||||
Gold revenue - concentrate | 81,849 | — | 42,821 | 124,670 | |||||||||||||||||||
Silver revenue - doré | 1,558 | 787 | — | 2,345 | |||||||||||||||||||
Silver revenue - concentrate | 2,433 | — | 14,237 | 16,670 | |||||||||||||||||||
Lead concentrate | — | — | 13,670 | 13,670 | |||||||||||||||||||
Zinc concentrate | — | — | 21,175 | 21,175 | |||||||||||||||||||
Revenue from contracts with customers | $ | 250,736 | $ | 115,494 | $ | 91,903 | $ | 458,133 | |||||||||||||||
Gain (loss) on revaluation of derivatives in trade receivables | 550 | — | (841) | (291) | |||||||||||||||||||
$ | 251,286 | $ | 115,494 | $ | 91,062 | $ | 457,842 |
For the six months ended June 30, 2020, revenue from contracts with customers by product and segment were as follows:
Turkey | Canada | Greece | Total | ||||||||||||||||||||
Gold revenue - doré | $ | 185,091 | $ | 98,177 | $ | — | $ | 283,268 | |||||||||||||||
Gold revenue - concentrate | 86,432 | — | 50,837 | 137,269 | |||||||||||||||||||
Silver revenue - doré | 889 | 353 | — | 1,242 | |||||||||||||||||||
Silver revenue - concentrate | 1,231 | — | 11,040 | 12,271 | |||||||||||||||||||
Lead concentrate | — | — | 8,474 | 8,474 | |||||||||||||||||||
Zinc concentrate | — | — | 17,011 | 17,011 | |||||||||||||||||||
Revenue from contracts with customers | $ | 273,643 | $ | 98,530 | $ | 87,362 | $ | 459,535 | |||||||||||||||
Gain (loss) on revaluation of derivatives in trade receivables | (779) | — | 1,816 | 1,037 | |||||||||||||||||||
$ | 272,864 | $ | 98,530 | $ | 89,178 | $ | 460,572 |
(8)
Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
10. Mine standby costs
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Skouries | $ | 1,417 | $ | 2,171 | $ | 2,695 | $ | 4,224 | |||||||||||||||
Lamaque | — | 2,031 | — | 3,086 | |||||||||||||||||||
Other mine standby costs | 677 | 827 | 1,026 | 1,749 | |||||||||||||||||||
$ | 2,094 | $ | 5,029 | $ | 3,721 | $ | 9,059 |
11. Other income and finance costs
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(a) Other income (loss) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Gain (loss) on disposal of assets | $ | 98 | $ | (96) | $ | (847) | $ | (2,550) | |||||||||||||||
Gain on disposal of mining licences | 7,046 | — | 7,046 | — | |||||||||||||||||||
Interest and other income | 2,492 | 1,452 | 4,115 | 2,586 | |||||||||||||||||||
$ | 9,636 | $ | 1,356 | $ | 10,314 | $ | 36 |
In May 2021, the Company recognized other income of $7,046 from the sale of mining licences in Turkey, which had a carrying value of nil. Consideration for the sale was $7,046 of which $5,000 was received in cash as at June 30, 2021. The remaining cash consideration is expected to be received in January 2022.
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(b) Finance costs | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Interest on senior secured notes | $ | 6,195 | $ | 7,909 | $ | 12,390 | 15,811 | ||||||||||||||||
Interest on term loan | 927 | 1,632 | 1,887 | 3,930 | |||||||||||||||||||
Other interest and financing costs | 1,835 | 2,113 | 3,993 | 3,201 | |||||||||||||||||||
Loss (gain) on redemption option derivative (Note 8(a)) | 6,182 | (5,665) | 6,857 | (1,236) | |||||||||||||||||||
Asset retirement obligation accretion | 361 | 491 | 711 | 981 | |||||||||||||||||||
$ | 15,500 | $ | 6,480 | $ | 25,838 | $ | 22,687 |
(9)
Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
12. Share capital and (loss) earnings per share
(a) Share capital
2021 | 2020 | ||||||||||||||||||||||
Voting common shares | Number of Shares | Total | Number of Shares | Total | |||||||||||||||||||
Balance at January 1, | 174,931,381 | $ | 3,144,644 | 164,963,324 | $ | 3,054,563 | |||||||||||||||||
Shares issued upon exercise of share options, for cash | 266,520 | 1,398 | 427,232 | 1,816 | |||||||||||||||||||
Shares issued on redemption of PSU's (Note 13) | 507,998 | 1,172 | — | — | |||||||||||||||||||
Estimated fair value of share options exercised transferred from contributed surplus | — | 548 | — | 730 | |||||||||||||||||||
Shares issued on acquisition of QMX (Note 4) | 5,788,187 | 65,647 | — | — | |||||||||||||||||||
Shares issued to the public | — | — | 8,353,042 | 76,956 | |||||||||||||||||||
Share issuance costs | — | — | — | (1,605) | |||||||||||||||||||
Flow-through shares issued, net of costs and premium | 1,100,000 | 11,421 | 384,616 | 3,495 | |||||||||||||||||||
Balance at June 30, | 182,594,086 | $ | 3,224,830 | 174,128,214 | $ | 3,135,955 |
On March 30, 2021 the Company completed a private placement of 1,100,000 common shares at a price of CDN $16.00 per share for proceeds of CDN $17,600 ($13,930). The proceeds will be used to continue to fund the Lamaque decline project. The shares will qualify as flow-through shares for Canadian tax purposes and were issued at a premium of CDN $2.82 per share to the closing market price of the Company's common shares at the date of issue. The premium of $2,456 was recognized in accounts payable and accrued liabilities and will be recognized in other income when the related tax benefits are renounced.
(b) (Loss) earnings per share
The weighted average number of ordinary shares for the purposes of diluted (loss) earnings per share reconciles to the weighted average number of ordinary shares used in the calculation of basic (loss) earnings per share as follows:
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Weighted average number of ordinary shares used in the calculation of basic (loss) earnings per share | 181,598,939 | 169,866,635 | 178,085,804 | 167,524,192 | |||||||||||||||||||
Dilutive impact of share options | — | 1,113,860 | — | 1,068,456 | |||||||||||||||||||
Dilutive impact of restricted share units and restricted share units with performance criteria | — | 1,755,293 | — | 1,637,679 | |||||||||||||||||||
Dilutive impact of performance share units | — | 1,051,210 | — | 1,111,188 | |||||||||||||||||||
Weighted average number of ordinary shares used in the calculation of diluted (loss) earnings per share | 181,598,939 | 173,786,998 | 178,085,804 | 171,341,515 |
(10)
Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
12. Share capital and (loss) earnings per share (continued)
As at June 30, 2021, 2,498,594 options (June 30, 2020 - 3,008,224) were excluded from the dilutive weighted-average number of ordinary shares calculation because their effect would have been anti-dilutive. For the three months ended June 30, 2021, 1,160,500 share options, 234,984 RSU's and RSU's with performance criteria, and 751,552 PSU's were anti-dilutive. For the six months ended June 30, 2021, 1,255,926 share options, 335,587 RSU's and RSU's with performance criteria, and 822,403 PSU's were anti-dilutive.
13. Share-based payment arrangements
Share-based payments expense consists of:
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Share options | $ | 642 | $ | 814 | $ | 1,395 | $ | 1,576 | |||||||||||||||
Restricted shares with no performance criteria | 367 | 357 | 602 | 664 | |||||||||||||||||||
Restricted shares with performance criteria | 1,025 | 778 | 1,670 | 1,237 | |||||||||||||||||||
Performance shares | 206 | 272 | 489 | 540 | |||||||||||||||||||
Deferred units | (318) | 642 | (453) | 641 | |||||||||||||||||||
$ | 1,922 | $ | 2,863 | $ | 3,703 | $ | 4,658 |
(a) Share option plans
The Company’s Incentive Stock Option Plan (the “Plan”) consists of 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 at the time an Option is granted. Options 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:
2021 | 2020 | |||||||||||||
Weighted average exercise price Cdn$ | Number of options | Weighted average exercise price Cdn$ | Number of options | |||||||||||
At January 1, | $ | 11.56 | 5,092,388 | $ | 14.08 | 5,714,491 | ||||||||
Options granted | 13.27 | 1,091,891 | 12.72 | 1,156,744 | ||||||||||
Exercised | 6.49 | (266,520) | 5.94 | (427,232) | ||||||||||
Expired | 16.14 | (783,771) | 33.40 | (813,933) | ||||||||||
Forfeited | 12.08 | (535,134) | 14.02 | (206,597) | ||||||||||
At June 30, | $ | 11.42 | 4,598,854 | $ | 11.53 | 5,423,473 |
As at June 30, 2021, a total of 4,152,312 options (December 31, 2020 – 3,898,038) were available to grant under the Plan. As at June 30, 2021, 2,391,937 share purchase options (December 31, 2020 – 2,416,611) with a weighted average exercise price of CDN $11.80 (December 31, 2020 – CDN $14.45) had vested and were exercisable.
(11)
Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
13. Share-based payment arrangements (continued)
The weighted average market share price at the date of exercise for share options exercised for the six months ended June 30, 2021 was CDN $13.90 (June 30, 2020 – CDN $12.96).
During the first six months of 2021, 1,091,891 (June 30, 2020 – 1,156,744) share options were granted. The weighted average fair value per stock option granted was CDN $13.27 (June 30, 2020 – CDN $12.72). The assumptions used to estimate the fair value of options granted during the six months ended June 30, 2021 and 2020 are in the table below. Volatility was determined based on the historical volatility over the estimated lives of the share options.
2021 | 2020 | ||||||||||
Risk-free interest rate (range) | 0.3% - 0.8% | 0.25% - 1.51% | |||||||||
Expected volatility (range) | 64% - 68% | 59% - 70% | |||||||||
Expected life | 3 years | 3 years | |||||||||
Expected dividends (CDN$) | — | — |
(b) Restricted share unit 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 June 30, 2021, 269,574 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 statement of financial position.
Currently, the Company has two types of RSUs:
i.RSU with no performance criteria
These RSUs are exercisable into one common share once vested for no additional consideration. They vest as follows: one third on the first anniversary of the grant date, one third on the second anniversary of the grant date and one third on the third anniversary of the grant date. RSUs with no performance criteria terminate on the third anniversary of the grant date. All vested RSUs which have not been redeemed by the date of termination are automatically redeemed. Such RSU's may be redeemed by the holder in shares or cash, with cash redemptions subject to the approval of the Board.
A total of 180,132 RSUs with no performance criteria with an average grant-date fair value of CDN $13.79 per unit were granted during the six months ended June 30, 2021 under this plan (June 30, 2020 - 149,552). The fair value of each RSU issued is determined as the closing share price at grant date.
A summary of the status of the RSUs with no performance criteria and changes is as follows:
2021 | 2020 | ||||||||||
At January 1, | 478,067 | 536,330 | |||||||||
Granted | 180,132 | 149,552 | |||||||||
Redeemed | (134,542) | (189,671) | |||||||||
Forfeited | (40,898) | (16,852) | |||||||||
At June 30, | 482,759 | 479,359 |
As at June 30, 2021, 109,649 restricted share units are fully vested and exercisable (June 30, 2020 – 70,939).
(12)
Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
13. Share-based payment arrangements (continued)
ii. RSU with performance criteria
RSUs with performance criteria vest on the third anniversary of the grant date, subject to achievement of pre-determined 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.
A total of 360,273 RSUs with performance criteria were granted under this plan during the six months ended June 30, 2021 (June 30, 2020 - 299,112) with a fair value of CDN $22.46 per unit (June 30, 2020 - CDN $24.94). In addition, 80,235 RSUs with performance criteria were 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 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 is as follows:
2021 | 2020 | ||||||||||
At January 1, | 689,967 | 457,498 | |||||||||
Granted | 440,508 | 299,112 | |||||||||
Redeemed | (160,470) | — | |||||||||
Forfeited | (26,671) | (66,643) | |||||||||
At June 30, | 943,334 | 689,967 |
(c) Deferred unit plan
The Company has an independent directors deferred unit plan (“DU Plan”) under which deferred units ("DU’s") are granted by the Board from time to time to independent directors (“the Participants”). DUs may be redeemed only on retirement of the independent director from the Board (the “Termination Date”) by providing the redemption notice (“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 “Redemption Date”). The participant receives a cash payment equal to the market value of such DUs as of the Redemption Date.
As at June 30, 2021, 348,872 DUs were outstanding (December 31, 2020 – 289,360) with a fair value of $3,468, which is included in accounts payable and accrued liabilities (December 31, 2020 – $3,834). The fair value was determined based on the closing share price at June 30, 2021.
(d) Performance share units plan
The Company has a Performance Share Unit plan (the “PSU” Plan) whereby PSUs may be granted to senior management of the Company at the discretion of the Board of Directors. Under the plan, PSUs cliff vest on the third anniversary of the grant date (the “Redemption Date”) and are subject to terms and conditions including the achievement of predetermined performance criteria (the “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 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 to be redeemed as soon as practicable after the Redemption Date.
(13)
Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
13. Share-based payment arrangements (continued)
There were 13,937 PSUs granted during the six months ended June 30, 2021 under the PSU Plan (June 30, 2020 – nil) with a fair value of CDN $24.40 per unit (June 30, 2020 - nil). In addition, 253,999 PSUs were granted as a result of the performance criteria being met during the year, which were then 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 securities.
Movements in the PSUs during the six months ended June 30, 2021 and June 30, 2020 are as follows:
2021 | 2020 | ||||||||||
At January 1, | 525,605 | 610,885 | |||||||||
Granted | 267,936 | — | |||||||||
Redeemed | (507,998) | — | |||||||||
Expired | — | (85,280) | |||||||||
At June 30, | 285,543 | 525,605 |
14. Supplementary cash flow information
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Changes in non-cash working capital: | |||||||||||||||||||||||
Accounts receivable and other | $ | (9,912) | $ | (16,133) | $ | 6,366 | $ | (19,458) | |||||||||||||||
Inventories | (8,656) | 4,706 | (6,923) | 3,875 | |||||||||||||||||||
Accounts payable and accrued liabilities | (7,193) | 12,010 | (13,072) | (4) | |||||||||||||||||||
$ | (25,761) | $ | 583 | $ | (13,629) | $ | (15,587) |
15. Income tax rate changes
On May 18, 2021, the Greek government enacted new tax law provisions to reduce the corporate income tax rate from 24% to 22%. The Greek corporate tax rate reduction will be effective retroactively from January 1, 2021 and onwards. The opening deferred tax liability and current year's deferred tax expense were reduced by $11,434 due to the tax rate reduction.
On April 16, 2021, an increase in the corporate income tax rate in Turkey was enacted. The corporate income tax rate was 20% at the beginning of 2021, and upon enactment increased to 25% for 2021, 23% for 2022 and will return to 20% for 2023 onwards. The increase was effective on July 1, 2021 with retroactive application to January 1, 2021. The opening deferred tax liability and current year’s deferred tax expense were increased by $6,101 due to the tax rate increase.
(14)
Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
16. Commitments
Significant changes to the Company's commitments and contractual obligations as at June 30, 2021:
Within 1 Year | 2 Years | 3 Years | 4 Years | 5 Years | Total | |||||||||||||||
Debt | $ | 66,667 | $ | 133,333 | $ | 233,953 | $ | — | $ | — | $ | 433,953 | ||||||||
Purchase obligations and other commitments | 79,778 | 4,156 | 242 | 238 | 237 | 84,651 | ||||||||||||||
$ | 146,445 | $ | 137,489 | $ | 234,195 | $ | 238 | $ | 237 | $ | 518,604 |
Debt obligations represent required repayments of principal for the senior secured notes and term loan and do not include interest on debt. Debt obligations also include the revolving credit facility, of which the current amount drawn at June 30, 2021 is $100,000 and is presented in the table above as repayable on June 5, 2023, based on the contractual maturity date of the revolving credit facility.
Purchase obligations and other commitments relate primarily to operating costs at all mines and capital projects at Kişladağ.
17. Fair value measurements
Fair values are determined directly by reference to published price quotations in an active market, when available, or by using a valuation technique that uses inputs observed from relevant markets.
The three levels of the fair value hierarchy are described below:
•Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
•Level 2 – Inputs that are observable, either directly or indirectly, but do not qualify as Level 1 inputs (i.e., quoted prices for similar assets or liabilities).
•Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
Assets measured at fair value as at June 30, 2021 include marketable securities of $164 (December 31, 2020 – $194), comprised of publicly-traded equity investments classified as fair value through other comprehensive income, settlement receivables of $23,682 (December 31, 2020 – $31,898) arising from provisional pricing in contracts for the sale of metals in concentrate classified as fair value through profit and loss and a derivative asset of $500 (December 31, 2020 – $7,357), related to the redemption options associated with the senior secured notes classified as fair value through profit and loss. Changes in the fair value of settlement receivables are recorded in revenue and changes in the fair value of the redemption option derivative asset are recorded in finance costs. Valuation of the contingent consideration on the May 2020 acquisition of interest in Hellas Gold SA is measured at fair value, with any changes in fair value recorded in profit or loss. No other liabilities are measured at fair value on a recurring basis as at June 30, 2021.
(15)
Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
17. Fair value measurements (continued)
The fair value of financial instruments traded in active markets is based on quoted market prices at the date of the statement of financial position. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by the group is the current bid price. The Company's marketable securities are included in Level 1. Instruments included in Level 2 comprise settlement receivables, the redemption option derivative asset and the fair market value of the Company's senior secured notes (Note 8). The fair value of settlement receivables is determined based on forward metal prices for the quotational period, the fair value of the Company's redemption option derivative asset is based on models using observable interest rate inputs and the fair value of the Company's senior secured notes is based on observable prices in inactive markets. The fair value of the term loan is $100,000 and the fair value of the revolving credit facility approximates the carrying value both based on current market rates of interest and the Company's credit risk premium, and represent Level 2 fair value measurements. The fair value measurement of contingent consideration related to the May 2020 acquisition of the minority interest in Hellas Gold SA is categorized as a Level 3 fair value. For all other financial instruments, carrying amounts approximate fair value.
18. Financial risk management
Eldorado’s activities expose it to a variety of financial risks. Significant changes to the Company’s financial risks and overall risk management program as at June 30, 2021 are outlined below.
(a)Interest rate risk
The Company's outstanding debt is in the form of senior secured notes with a fixed interest rate of 9.5% and a term loan with a variable rate based on LIBOR. In March 2020, the Company additionally drew $150,000 under the revolving credit facility as a proactive measure in light of the uncertainty surrounding the COVID-19 pandemic. Borrowings under the revolving credit facility are also at variable rates of interest based on LIBOR. Borrowings at variable rates of interest expose the Company to interest rate risk. At June 30, 2021, $100,000 is outstanding under the term loan and $100,000 is outstanding under the revolving credit facility. A 1% increase in the variable interest rate would result in a $1,357 decrease in net earnings on an annualized basis.
(b)Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in raising funds to meet commitments associated with financial instruments. In March 2020, the Company drew $150,000 under the revolving credit facility, of which $50,000 was repaid in June 2021. Management cannot accurately predict the impact COVID-19 will have on the Company’s operations, the fair value of the Company's assets, its ability to obtain financing, third parties’ ability to meet their obligations with the Company and the length of travel and quarantine restrictions imposed by governments of the countries in which the Company operates.
In February 2021, the TARCA was amended such that the non-financial letters of credit no longer reduce credit availability under the revolving credit facility, thereby increasing the availability under the facility. An early repayment of $11,100 of principal as part of the scheduled semi-annual payment on the term loan was made in February 2021 in conjunction with this amendment, and in June 2021, the Company completed the remaining scheduled $22,233 semi-annual payment on the term loan. At June 30, 2021, the current availability under the credit facility is $150 million.
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.
(16)
Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
19. 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 June 30, 2021, Eldorado had six 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 Turkey reporting segment includes the Kişladağ and the Efemçukuru mines and exploration activities in Turkey. The Canada reporting segment includes the Lamaque operations and exploration activities in Canada, including those related to QMX from the date of acquisition. The Greece reporting segment includes the Stratoni and Olympias mines, the Skouries, Perama Hill and Sapes projects and exploration activities in Greece. The Romania reporting segment includes the Certej project and exploration activities in Romania. The Brazil reporting segment includes the Tocantinzinho project and exploration activities. The Brazil segment also includes Vila Nova up until the sale of Vila Nova iron ore mine in September 2020. 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 different reporting segments share similar economic characteristics and have been aggregated accordingly.
As at and for the three months ended June 30, 2021 | Turkey | Canada | Greece | Romania | Brazil | Other | Total | ||||||||||||||||
Earnings and loss information | |||||||||||||||||||||||
Revenue | $ | 125,728 | $ | 63,536 | $ | 43,960 | $ | — | $ | — | $ | — | $ | 233,224 | |||||||||
Production costs | 46,503 | 24,040 | 42,257 | — | — | — | 112,800 | ||||||||||||||||
Depreciation and amortization | 22,205 | 14,715 | 14,114 | — | — | — | 51,034 | ||||||||||||||||
Earnings (loss) from mine operations | $ | 57,020 | $ | 24,781 | $ | (12,411) | $ | — | $ | — | $ | — | $ | 69,390 | |||||||||
Other significant items of income and expense | |||||||||||||||||||||||
Impairment (Note 5) | $ | — | $ | — | $ | — | $ | — | $ | 99,497 | $ | — | $ | 99,497 | |||||||||
Exploration and evaluation expenses | 5,100 | 1,177 | 161 | 927 | (53) | 516 | 7,828 | ||||||||||||||||
Income tax expense (recovery) | 18,881 | 7,986 | (8,301) | (5,861) | (12,559) | — | 146 | ||||||||||||||||
Capital expenditure information | |||||||||||||||||||||||
Additions to property, plant and equipment during the period (*) | $ | 38,970 | $ | 21,810 | $ | 13,725 | $ | — | $ | 930 | $ | 1,571 | $ | 77,006 | |||||||||
* Presented on an accrual basis; excludes asset retirement adjustments.
(17)
Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
19. Segment information (continued)
As at and for the three months ended June 30, 2020 | Turkey | Canada | Greece | Romania | Brazil | Other | Total | ||||||||||||||||
Earnings and loss information | |||||||||||||||||||||||
Revenue | $ | 151,370 | $ | 55,763 | $ | 48,784 | $ | — | $ | — | $ | — | $ | 255,917 | |||||||||
Production costs | 49,537 | 16,203 | 43,737 | — | — | — | 109,477 | ||||||||||||||||
Depreciation and amortization (Note 2(c)) | 24,851 | 15,845 | 12,589 | — | — | — | 53,285 | ||||||||||||||||
Earnings (loss) from mine operations | $ | 76,982 | $ | 23,715 | $ | (7,542) | $ | — | $ | — | $ | — | $ | 93,155 | |||||||||
Other significant items of income and expense | |||||||||||||||||||||||
Exploration and evaluation expenses | $ | 518 | $ | 601 | $ | 186 | $ | 720 | $ | 41 | $ | 267 | $ | 2,333 | |||||||||
Income tax expense (recovery) (Note 2(c)) | 21,102 | 5,784 | (726) | (1,761) | 844 | — | 25,243 | ||||||||||||||||
Capital expenditure information | |||||||||||||||||||||||
Additions to property, plant and equipment during the period (*) | $ | 17,876 | $ | 10,342 | $ | 10,837 | $ | 3 | $ | 397 | $ | 21 | $ | 39,476 |
* Presented on an accrual basis; excludes asset retirement adjustments.
As at and for the six months ended June 30, 2021 | Turkey | Canada | Greece | Romania | Brazil | Other | Total | ||||||||||||||||
Earnings and loss information | |||||||||||||||||||||||
Revenue | $ | 251,286 | $ | 115,494 | $ | 91,062 | $ | — | $ | — | $ | — | $ | 457,842 | |||||||||
Production costs | 87,415 | 47,023 | 86,922 | — | — | — | 221,360 | ||||||||||||||||
Depreciation and amortization (Note 2(c)) | 44,618 | 31,279 | 27,634 | — | — | — | 103,531 | ||||||||||||||||
Earnings (loss) from mine operations | $ | 119,253 | $ | 37,192 | $ | (23,494) | $ | — | $ | — | $ | — | $ | 132,951 | |||||||||
Other significant items of income and expense | |||||||||||||||||||||||
Impairment (Note 5) | $ | — | $ | — | $ | — | $ | — | $ | 99,497 | $ | — | $ | 99,497 | |||||||||
Exploration and evaluation expenses | 5,921 | 2,660 | 298 | 1,923 | — | 1,087 | 11,889 | ||||||||||||||||
Income tax expense (recovery) (Note 2(c)) | 42,744 | 12,698 | (16,454) | 556 | (11,011) | — | 28,533 | ||||||||||||||||
Capital expenditure information | |||||||||||||||||||||||
Additions to property, plant and equipment during the period (*) | $ | 69,991 | $ | 39,254 | $ | 24,336 | $ | — | $ | 1,795 | $ | 1,904 | $ | 137,280 | |||||||||
Information about assets and liabilities | |||||||||||||||||||||||
Property, plant and equipment (Note 2(c)) | $ | 808,330 | $ | 688,344 | $ | 2,023,717 | $ | 413,595 | $ | 106,728 | $ | 11,173 | $ | 4,051,887 | |||||||||
Goodwill | — | 92,591 | — | — | — | — | 92,591 | ||||||||||||||||
$ | 808,330 | $ | 780,935 | $ | 2,023,717 | $ | 413,595 | $ | 106,728 | $ | 11,173 | $ | 4,144,478 | ||||||||||
Debt, including current portion | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 426,307 | $ | 426,307 |
* Presented on an accrual basis; excludes asset retirement adjustments.
(18)
Eldorado Gold Corporation
Notes to the Condensed Consolidated Interim Financial Statements
For the three and six months ended June 30, 2021 and 2020
(Unaudited – in thousands of U.S. dollars, unless otherwise stated)
19. Segment information (continued)
As at and for the six months ended June 30, 2020 | Turkey | Canada | Greece | Romania | Brazil | Other | Total | ||||||||||||||||
Earnings and loss information | |||||||||||||||||||||||
Revenue | $ | 272,864 | $ | 98,530 | $ | 89,178 | $ | — | $ | — | $ | — | $ | 460,572 | |||||||||
Production costs | 93,114 | 34,049 | 83,676 | — | — | — | 210,839 | ||||||||||||||||
Depreciation and amortization (Note 2(c)) | 47,411 | 30,320 | 24,769 | — | — | — | 102,500 | ||||||||||||||||
Earnings (loss) from mine operations | $ | 132,339 | $ | 34,161 | $ | (19,267) | $ | — | $ | — | $ | — | $ | 147,233 | |||||||||
Other significant items of income and expense | |||||||||||||||||||||||
Exploration and evaluation expenses | $ | 976 | $ | 1,448 | $ | 316 | $ | 1,823 | $ | 108 | $ | 889 | $ | 5,560 | |||||||||
Income tax expense (recovery) (Note 2(c)) | 40,342 | 6,863 | (4,557) | (1,183) | 6,357 | — | 47,822 | ||||||||||||||||
Capital expenditure information | |||||||||||||||||||||||
Additions to property, plant and equipment during the period (*) | $ | 31,858 | $ | 22,186 | $ | 20,208 | $ | 6 | $ | 895 | $ | 26 | $ | 75,179 | |||||||||
* Presented on an accrual basis, excludes asset retirement adjustments.
As at December 31, 2020 | Turkey | Canada | Greece | Romania | Brazil | Other | Total | ||||||||||||||||
Information about assets and liabilities | |||||||||||||||||||||||
Property, plant and equipment (Note 2(c)) | $ | 789,186 | $ | 596,082 | $ | 2,027,612 | $ | 414,118 | $ | 205,432 | $ | 9,769 | $ | 4,042,199 | |||||||||
Goodwill | — | 92,591 | — | — | — | — | 92,591 | ||||||||||||||||
$ | 789,186 | $ | 688,673 | $ | 2,027,612 | $ | 414,118 | $ | 205,432 | $ | 9,769 | $ | 4,134,790 | ||||||||||
Debt, including current portion | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 501,132 | $ | 501,132 |
20. Events occurring after the reporting date
In July 2021, the Company completed the acquisition of 11.5% of the outstanding common shares of Probe Metals Inc. for cash consideration of CDN $23,691 ($18,654).
(19)