Eldorado Gold Corp (EGO) 2020年年度報告「AMEX」.pdf

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1、 Consolidated Financial StatementsDecember 31,2020 and 2019(Expressed in thousands of U.S.dollars)Managements Responsibility for Financial ReportingThe management of Eldorado Gold Corporation is responsible for the integrity and fair presentation of the financial information contained in the Consoli

2、dated Financial Statements,which reflects amounts based on managements best estimates and judgements.The Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.Management is respons

3、ible for establishing and maintaining adequate internal control over financial reporting.Management has established and maintains a system of internal accounting control designed to provide reasonable assurance that assets are safeguarded from loss or unauthorized use,financial information is reliab

4、le and accurate and transactions are properly recorded and executed in accordance with managements authorization.This system includes established policies and procedures,the selection and training of qualified personnel and an organization providing for appropriate delegation of authority and segreg

5、ation of responsibilities.Any system of internal control over financial reporting,no matter how well designed,has inherent limitations.Therefore,even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.Manage

6、ment has a process in place to evaluate internal control over financial reporting based on the criteria established by the Committee of Sponsoring Organizations of the Treadway Commission(2013)in Internal Control-Integrated Framework.Based on this assessment,management determined that as of December

7、 31,2020,the Companys internal control over financial reporting was effective and provided reasonable assurance of the reliability of our financial reporting and preparation of the Consolidated Financial Statements.KPMG LLP,an independent registered public accounting firm,appointed by the shareholde

8、rs,has audited the Companys Consolidated Financial Statements as of and for the year ended December 31,2020 in accordance with the standards of the Public Company Accounting Oversight Board(United States)and has expressed their opinion in their report titled“Report of Independent Registered Public A

9、ccounting Firm”.The effectiveness of the Companys internal control over financial reporting as of December 31,2020 has also been audited by KPMG LLP,and their opinion is included in their report titled“Report of Independent Registered Public Accounting Firm”.(Signed)George Burns (Signed)Philip YeeGe

10、orge Burns Philip YeePresident&Chief Executive Officer Chief Financial OfficerFebruary 25,2021Vancouver,British Columbia,Canada KPMG LLPChartered Professional AccountantsPO Box 10426 777 Dunsmuir StreetVancouver BC V7Y 1K3Canada TelephoneFaxInternet(604)691-3000(604)691-3031www.kpmg.caReport of Inde

11、pendent Registered Public Accounting FirmTo the Shareholders and Board of Directors of Eldorado Gold CorporationOpinion on the Consolidated Financial Statements We have audited the accompanying consolidated statements of financial position of Eldorado Gold Corporation(the Company)as of December 31,2

12、020 and December 31,2019,the related consolidated statements of operations,comprehensive income(loss),cash flows,and changes in equity for each of the years in the two-year period ended December 31,2020,and the related notes(collectively,the consolidated financial statements).In our opinion,the cons

13、olidated financial statements present fairly,in all material respects,the financial position of the Company as of December 31,2020 and 2019,and its financial performance and its cash flows for each of the years in the twoyear period ended December 31,2020,in conformity with International Financial R

14、eporting Standards as issued by the International Accounting Standards Board.We also have audited,in accordance with the standards of the Public Company Accounting Oversight Board(United States)(PCAOB),the Companys internal control over financial reporting as of December 31,2020,based on criteria es

15、tablished in Internal Control Integrated Framework(2013)issued by the Committee of Sponsoring Organizations of the Treadway Commission,and our report dated February 25,2021 expressed an unqualified opinion on the effectiveness of the Companys internal control over financial reporting.Basis for Opini

16、onThese consolidated financial statements are the responsibility of the Companys management.Our responsibility is to express an opinion on these consolidated financial statements based on our audits.We are a public accounting firm registered with the PCAOB and are required to be independent with res

17、pect to the Company in accordance with the U.S.federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated wi

18、th KPMG International Cooperative(“KPMG International”),a Swiss entity.KPMG Canada provides services to KPMG LLP.Eldorado Gold CorporationPage 2We conducted our audits in accordance with the standards of the PCAOB.Those standards require that we plan and perform the audit to obtain reasonable assura

19、nce about whether the consolidated financial statements are free of material misstatement,whether due to error or fraud.Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements,whether due to error or fraud,and performing procedu

20、res that respond to those risks.Such procedures included examining,on a test basis,evidence regarding the amounts and disclosures in the consolidated financial statements.Our audits also included evaluating the accounting principles used and significant estimates made by management,as well as evalua

21、ting the overall presentation of the consolidated financial statements.We believe that our audits provide a reasonable basis for our opinion.Critical Audit MatterThe critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements th

22、at was communicated or required to be communicated to the Audit Committee and that:(1)relates to accounts or disclosures that are material to the consolidated financial statements and(2)involved our especially challenging,subjective,or complex judgments.The communication of the critical audit matter

23、 does not alter in any way our opinion on the consolidated financial statements,taken as a whole,and we are not,by communicating the critical audit matter below,providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.Assessment of the recoverab

24、le amount of the Olympias cash-generating unitAs discussed in Note 11 to the consolidated financial statements,the Company determined there were indicators of impairment associated with the Olympias cash-generating unit(CGU).As discussed in note 3.7 to the consolidated financial statements,when an i

25、ndicator of impairment exists,the Company is required to determine the recoverable amount of the CGU to determine whether an impairment should be recognized.Based on the outcome of the impairment testing performed,the Company determined that there was no impairment of the Olympias CGU as of December

26、 31,2020.We identified the assessment of the recoverable amount of the Olympias CGU to be a critical audit matter.A high degree of auditor judgment was required to evaluate the inputs used to estimate the recoverable amount.Significant assumptions used in the determination of the recoverable amount

27、included long-term metal prices,future production levels including the amount of reserves,resources and exploration potential,operating and capital costs,discount rates,and the fair value per ounce of mineral resources and exploration potential beyond those used in the discounted cash flow model.Cha

28、nges in any of these assumptions could have had a significant effect on the determination of the estimated recoverable amount.Eldorado Gold CorporationPage 3The following are the primary procedures we performed to address this critical audit matter.We evaluated the design and tested the operating ef

29、fectiveness of certain internal controls over the Companys process to determine the recoverable amount of the CGU.This included controls over the Companys development of the significant assumptions used to estimate the recoverable amount of the Olympias CGU.We evaluated the competence,experience and

30、 objectivity of the qualified persons responsible for the mineral reserves,resources and exploration potential estimates,and the updated mine plan.We compared the amount of reserves and resources in the valuation model to the mine plan and to the updated mineral reserves and resources estimates.We c

31、ompared the Companys historical estimates of mineral reserves and resources,mine plan and operating results to actual results to assess the accuracy of the Companys forecasting process.We compared estimated operating and capital costs in the valuation model to the mine plan and to historical expendi

32、tures.We involved valuations professionals with specialized skills and knowledge,who assisted in(1)assessing the long-term metal prices by comparing to third party data;and(2)evaluating the discount rates,and the fair value per ounce of mineral resources and exploration potential beyond those used i

33、n the discounted cash flow model by assessing the Companys approach to determining these assumptions and comparing them to independent sources and market data for comparable entities where available.KPMG LLP(Signed)Chartered Professional AccountantsWe have served as the Companys auditor since 2009.V

34、ancouver,Canada February 25,2021KPMG LLPChartered Professional AccountantsPO Box 10426 777 Dunsmuir StreetVancouver BC V7Y 1K3Canada TelephoneFaxInternet(604)691-3000(604)691-3031www.kpmg.caReport of Independent Registered Public Accounting FirmTo the Shareholders and Board of Directors of Eldorado

35、Gold CorporationOpinion on Internal Control over Financial Reporting We have audited Eldorado Gold Corporations(the Company)internal control over financial reporting as of December 31,2020,based on criteria established in Internal Control Integrated Framework(2013)issued by the Committee of Sponsori

36、ng Organizations of the Treadway Commission.In our opinion,the Company maintained,in all material respects,effective internal control over financial reporting as of December 31,2020,based on criteria established in Internal Control Integrated Framework(2013)issued by the Committee of Sponsoring Orga

37、nizations of the Treadway Commission.We also have audited,in accordance with the standards of the Public Company Accounting Oversight Board(United States)(PCAOB),the consolidated statements of financial position of the Company as of December 31,2020 and December 31,2019,the related consolidated stat

38、ements of operations,comprehensive income(loss),cash flows,and changes in equity for each of the years in the two-year period ended December 31,2020,and the related notes(collectively,the consolidated financial statements),and our report dated February 25,2021 expressed an unqualified opinion on tho

39、se consolidated financial statements.Basis for Opinion The Companys management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting,included in“Managements Discussion and Analysis I

40、nternal Controls over Financial Reporting”.Our responsibility is to express an opinion on the Companys internal control over financial reporting based on our audit.We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance w

41、ith the U.S.federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative(“

42、KPMG International”),a Swiss entity.KPMG Canada provides services to KPMG LLP.Eldorado Gold CorporationPage 2We conducted our audit in accordance with the standards of the PCAOB.Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal

43、 control over financial reporting was maintained in all material respects.Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting,assessing the risk that a material weakness exists,and testing and evaluating the design a

44、nd operating effectiveness of internal control based on the assessed risk.Our audit also included performing such other procedures as we considered necessary in the circumstances.We believe that our audit provides a reasonable basis for our opinion.Definition and Limitations of Internal Control over

45、 Financial Reporting A companys internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principl

46、es.A companys internal control over financial reporting includes those policies and procedures that(1)pertain to the maintenance of records that,in reasonable detail,accurately and fairly reflect the transactions and dispositions of the assets of the company;(2)provide reasonable assurance that tran

47、sactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles,and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;and(3)provid

48、e reasonable assurance regarding prevention or timely detection of unauthorized acquisition,use,or disposition of the companys assets that could have a material effect on the financial statements.Because of its inherent limitations,internal control over financial reporting may not prevent or detect

49、misstatements.Also,projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions,or that the degree of compliance with the policies or procedures may deteriorate.KPMG LLP(Signed)Chartered Professional Acc

50、ountantsVancouver,Canada February 25,2021NoteDecember 31,2020December 31,2019ASSETSCurrent assetsCash and cash equivalents6$451,962$177,742 Term deposits 59,034 3,275 Accounts receivable and other7 73,216 79,138 Inventories8 176,271 163,234 Current portion of employee benefit plan assets17 5,749 Ass

51、ets held for sale32 12,471 766,232 435,860 Restricted cash 2,097 3,080 Other assets9 39,562 22,943 Employee benefit plan assets17 6,244 Property,plant and equipment11 3,998,493 4,088,202 Goodwill12 92,591 92,591$4,898,975$4,648,920 LIABILITIES&EQUITYCurrent liabilitiesAccounts payable and accrued li

52、abilities14$179,372$139,104 Current portion of lease liabilities 11,297 9,913 Current portion of debt15 66,667 66,667 Current portion of asset retirement obligations16 4,701 1,782 Liabilities associated with assets held for sale32 4,257 262,037 221,723 Debt15 434,465 413,065 Lease liabilities 14,659

53、 15,143 Employee benefit plan obligations17 21,974 18,224 Asset retirement obligations16 106,677 94,235 Deferred income tax liabilities19 402,713 412,717 1,242,525 1,175,107 EquityShare capital20 3,144,644 3,054,563 Treasury stock(11,452)(8,662)Contributed surplus 2,638,008 2,627,441 Accumulated oth

54、er comprehensive loss(30,297)(28,966)Deficit(2,125,326)(2,229,867)Total equity attributable to shareholders of the Company 3,615,577 3,414,509 Attributable to non-controlling interests 40,873 59,304 3,656,450 3,473,813$4,898,975$4,648,920 Debt,Guarantees,Commitments and Contractual Obligations(Notes

55、 15,24)Contingencies(Note 25),Subsequent events(Note 15(b),34)Approved on behalf of the Board of Directors (signed)John Webster Director (signed)George Burns DirectorDate of approval:February 25,2021 Eldorado Gold CorporationConsolidated Statements of Financial Position As at December 31,2020 and De

56、cember 31,2019(In thousands of U.S.dollars)The accompanying notes are an integral part of these consolidated financial statements.NoteYear ended December 31,2020Year ended December 31,2019Revenue Metal sales28$1,026,685$617,823 Cost of sales Production costs29 445,183 334,839 Depreciation and amorti

57、zation 246,651 153,118 691,834 487,957 Earnings from mine operations 334,851 129,866 Exploration and evaluation expenses 12,693 14,643 Mine standby costs30 15,675 17,334 General and administrative expenses 28,561 29,180 Employee benefit plan expense17 2,849 2,717 Share-based payments expense21 10,69

58、2 10,396 Reversal of impairment11 (96,914)Write-down of assets11 38,660 6,298 Foreign exchange gain(2,994)(625)Earnings from operations 228,715 146,837 Other(expense)income18(1,277)11,885 Finance costs18(50,943)(45,266)Earnings before income tax 176,495 113,456 Income tax expense19 79,134 39,771 Net

59、 earnings for the year$97,361$73,685 Attributable to:Shareholders of the Company 104,541 80,586 Non-controlling interests10(7,180)(6,901)Net earnings for the year$97,361$73,685 Weighted average number of shares outstanding(thousands)31Basic 171,047 158,856 Diluted 175,231 161,539 Net earnings per sh

60、are attributable to shareholders of the Company:Basic earnings per share$0.61$0.51 Diluted earnings per share$0.60$0.50 Eldorado Gold CorporationConsolidated Statements of Operations For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars except share and per share amou

61、nts)The accompanying notes are an integral part of these consolidated financial statements.NoteYear ended December 31,2020Year ended December 31,2019Net earnings for the year$97,361$73,685 Other comprehensive income(loss):Items that will not be reclassified to net earnings(loss):Change in fair value

62、 of investments in equity securities,net of tax 1,546 1,256 Actuarial losses on employee benefit plans17(3,440)(6,361)Income tax recovery on actuarial losses on employee benefit plans 563 633 (1,331)(4,472)Total comprehensive income for the year$96,030$69,213 Attributable to:Shareholders of the Comp

63、any 103,210 76,114 Non-controlling interests(7,180)(6,901)$96,030$69,213 Eldorado Gold CorporationConsolidated Statements of Comprehensive Income(Loss)For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars)The accompanying notes are an integral part of these consolidat

64、ed financial statements.Cash flows generated from(used in):NoteYear ended December 31,2020Year ended December 31,2019Operating activitiesNet earnings for the year$97,361$73,685 Items not affecting cash:Depreciation and amortization 248,790 155,331 Finance costs 50,943 45,266 Interest income (2,056)(

65、2,760)Unrealized foreign exchange gain(2,999)(790)Income from royalty sale (8,075)Income tax expense 79,134 39,771 Net loss(gain)on disposal of assets 2,587 (656)Reversal of impairment11 (96,914)Write-down of assets11 38,660 6,298 Share based payments expense 10,692 10,396 Employment benefit plan ex

66、pense 2,849 2,717 525,961 224,269 Property reclamation payments(2,301)(2,807)Employee benefit plan payments(2,633)(2,587)Income taxes paid (87,872)(36,242)Interest paid (44,373)(35,479)Interest received 2,056 2,760 Changes in non-cash operating working capital22 34,769 15,912 Net cash generated from

67、 operating activities 425,607 165,826 Investing activitiesPurchase of property,plant and equipment(190,908)(214,505)Capitalized interest paid (3,848)Proceeds from the sale of property,plant and equipment 1,790 6,605 Proceeds on pre-commercial production sales,net11 12,159 Purchase of investment in a

68、ssociate (3,107)Proceeds from sale of mining interest 9,896 1,397 Value added taxes related to mineral property expenditures,net(15,468)(1,590)Proceeds from the sale of marketable securities 5,237 Decrease(increase)in term deposits(55,759)3,371 Decrease in restricted cash 983 10,644 Net cash used in

69、 investing activities (244,229)(188,874)Financing activitiesIssuance of common shares for cash,net of issuance costs 95,992 40,066 Acquisition of non-controlling interest,without change in control10(7,500)Contributions from non-controlling interests 421 2,791 Proceeds from borrowings 150,000 494,000

70、 Repayment of borrowings(132,714)(600,000)Loan financing costs (15,583)Principal portion of lease liabilities(9,807)(6,729)Purchase of treasury stock(3,550)Net cash generated from(used in)financing activities 92,842 (85,455)Net increase(decrease)in cash and cash equivalents 274,220 (108,503)Cash and

71、 cash equivalents-beginning of year 177,742 286,312 Cash in disposal group held for sale (67)Cash and cash equivalents-end of year$451,962$177,742 Eldorado Gold CorporationConsolidated Statements of Cash Flows For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars)The

72、accompanying notes are an integral part of these consolidated financial statements.NoteYear ended December 31,2020Year ended December 31,2019Share capitalBalance beginning of year$3,054,563$3,007,924 Shares issued upon exercise of share options,for cash 3,559 265 Transfer of contributed surplus on e

73、xercise of options 1,267 103 Shares issued to the public,net of share issuance costs 85,255 46,271 Balance end of year20$3,144,644$3,054,563 Treasury stockBalance beginning of year$(8,662)$(10,104)Purchase of treasury stock21(3,550)Shares redeemed upon exercise of restricted share units 760 1,442 Ba

74、lance end of year$(11,452)$(8,662)Contributed surplusBalance beginning of year$2,627,441$2,620,799 Share based payment arrangements 8,422 8,187 Shares redeemed upon exercise of restricted share units(760)(1,442)Acquisition of non-controlling interest,without change in control10 4,172 Transfer to sha

75、re capital on exercise of options(1,267)(103)Balance end of year$2,638,008$2,627,441 Accumulated other comprehensive lossBalance beginning of year$(28,966)$(24,494)Other comprehensive loss for the year attributable to shareholders of the Company(1,331)(4,472)Balance end of year$(30,297)$(28,966)Defi

76、citBalance beginning of year$(2,229,867)$(2,310,453)Earnings attributable to shareholders of the Company 104,541 80,586 Balance end of year$(2,125,326)$(2,229,867)Total equity attributable to shareholders of the Company$3,615,577$3,414,509 Non-controlling interestsBalance beginning of year$59,304$63

77、,414 Acquisition of non-controlling interest,without change in control10(11,672)Loss attributable to non-controlling interests(7,180)(6,901)Contributions from non-controlling interests 421 2,791 Balance end of year$40,873$59,304 Total equity$3,656,450$3,473,813 Eldorado Gold CorporationConsolidated

78、Statements of Changes in Equity For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars)The accompanying notes are an integral part of these consolidated financial statements.1.General Information Eldorado Gold Corporation(individually or collectively with its subsidiar

79、ies,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

80、(“TSX”)and the New York Stock Exchange(“NYSE”)and is incorporated in the province of British Columbia,Canada.The Companys head office,principal address and records are located at 550 Burrard Street,Suite 1188,Vancouver,British Columbia,Canada,V6C 2B5.2.Basis of preparation These consolidated financi

81、al statements,including comparatives,have been prepared in compliance with International Financial Reporting Standards(“IFRS”)as issued by the International Accounting Standards Board(“IASB”).The significant accounting policies applied in these consolidated financial statements are presented in Note

82、 3 and,except as described in Note 5,have been applied consistently to all years presented,unless otherwise noted.The consolidated financial statements have been prepared on a historical cost basis except for certain financial assets and liabilities which are measured at fair value.The preparation o

83、f the consolidated financial statements in compliance with IFRS requires management to make certain critical accounting estimates.It also requires management to exercise judgement in the process of applying the Companys accounting policies.The areas involving a higher degree of judgement or complexi

84、ty,or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4.The consolidated financial statements were approved by the Companys Board of Directors on February 25,2021.3.Significant accounting policies 3.1 Basis of presentation and prin

85、ciples of consolidation(i)Subsidiaries and business combinationsSubsidiaries are those entities controlled by Eldorado.Control exists when Eldorado is exposed to,or has rights,to variable returns from the subsidiary and has the ability to affect those returns through its power over the subsidiary.Po

86、wer is defined as existing rights that give the Company the ability to direct the relevant activities of the subsidiary.In assessing control,potential voting rights that currently are exercisable are taken into account.The financial statements of subsidiaries are included in the consolidated financi

87、al statements from the date that control commences until the date that control ceases.All intercompany transactions,balances,income and expenses are eliminated in full upon consolidation.The acquisition method of accounting is used to account for business acquisitions.The cost of an acquisition is m

88、easured at the fair value of the assets acquired,equity instruments issued and liabilities incurred or assumed at the date of exchange.Eldorado Gold CorporationNotes to the Consolidated Financial Statements For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars,unless

89、otherwise stated except share and per share amounts)(1)3.Significant accounting policies(continued)Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date,irrespective of the extent

90、of any non-controlling interest.The excess of the cost of acquisition over the fair value of Eldorados share of the identifiable net assets acquired is recorded as goodwill.If the cost of acquisition is less than the fair value of the net assets acquired,the difference,or gain,is recognized directly

91、 in the consolidated statement of operations.Transaction costs,other than those associated with the issue of debt or equity securities,which the Company incurs in connection with a business combination,are expensed as incurred.The material subsidiaries of the Company as at December 31,2020 are descr

92、ibed below:SubsidiaryLocationOwnershipinterestOperations anddevelopment projectsownedTprag Metal Madencilik Sanayi ve Ticaret AS(Tprag)Turkey100%Kilada MineEfemukuru MineHellas Gold SA(Hellas)(1)Greece100%Olympias Mine Stratoni MineSkouries ProjectEldorado Gold(Qubec)Inc.(formerly Integra Gold Corpo

93、ration)Canada100%Lamaque MineThracean Gold Mining SAGreece100%Perama Hill ProjectThrace Minerals SAGreece100%Sapes ProjectBrazauro Recursos Minerais SA(Brazauro)Brazil100%Tocantinzinho ProjectDeva Gold SA(Deva)Romania80.5%Certej Project(1)On May 11,2020,the Company acquired the remaining 5%non-contr

94、olling interest in Hellas Gold SA(Note 10).(ii)Discontinued operationsA discontinued operation is a component of the Companys business that represents a separate major line of business or geographical area of operations that has been disposed of,has been abandoned or meets the criteria to be classif

95、ied as held for sale.Discontinued operations are presented in the consolidated statement of operations as a separate line.(iii)Assets held for saleAssets and businesses classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell.Impairment losses on ini

96、tial classification as held for sale and gains or losses on subsequent remeasurements are included in the consolidated statement of operations.No depreciation is charged on assets and businesses classified as held for sale.Assets and businesses are classified as held for sale if their carrying amoun

97、t will be recovered or settled principally through a sale transaction rather than through continuing use.The asset or business must be available for immediate sale and the sale must be highly probable within one year.Eldorado Gold CorporationNotes to the Consolidated Financial Statements For the yea

98、rs ended December 31,2020 and December 31,2019(In thousands of U.S.dollars,unless otherwise stated except share and per share amounts)(2)3.Significant accounting policies(continued)(iv)Investments in associates Associates are those entities where Eldorado has the ability to exercise significant infl

99、uence,but not control,over the financial and operating policies of those entities.Significant influence is presumed to exist when the Company holds between 20 and 50 percent of the voting power of another entity.Associates are accounted for using the equity method(equity accounted investees)and are

100、recognized initially at cost.The consolidated financial statements include Eldorados share of the income and expenses and equity movements of equity accounted investees,after adjustments to align the accounting policies with those of Eldorado,from the date that significant influence commences until

101、the date that significant influence ceases.When the Companys share of losses exceeds its interest in an equity accounted investee,the carrying amount of that interest(including any long-term investments)is reduced to nil and the recognition of further losses is discontinued except to the extent that

102、 the Company has an obligation to make,or has made,payments on behalf of the investee.At each statement of financial position date,each investment in associates is assessed for indicators of impairment.(v)Transactions with non-controlling interestsFor purchases from non-controlling interests,the dif

103、ference between any consideration paid and the relevant share of the carrying value of net assets of the subsidiary acquired is recorded in equity.Gains or losses on disposals to non-controlling interests are also recorded in equity.Eldorado treats transactions in the ordinary course of business wit

104、h non-controlling interests as transactions with third parties.(vi)Transactions eliminated on consolidationIntra-company and intercompany balances and transactions,and any unrealized income and expenses arising from all such transactions,are eliminated in preparing the consolidated financial stateme

105、nts.3.2 Foreign currency translation(i)Functional and presentation currencyItems included in the financial statements of each of Eldorados subsidiaries are measured using the currency of the primary economic environment in which the entity operates(the functional currency).The consolidated financial

106、 statements are presented in U.S.dollars,which is the Companys functional and presentation currency,as well as the functional currency of all significant subsidiaries.(ii)Transactions and balancesForeign currency transactions are translated into the functional currency using the exchange rates preva

107、iling at the dates of the transactions.Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency at the exchange rate at that date.Foreign exchange gains and losses resulting from the settlement of such transactions,and from the

108、 translation of monetary assets and liabilities denominated in foreign currencies,are recognized in the consolidated statement of operations.3.3 Property,plant and equipment(i)Cost and valuationProperty,plant and equipment are carried at cost less accumulated depreciation and any impairment in value

109、.When an asset is disposed of,it is derecognized and the difference between its carrying value and net sales proceeds is recognized as a gain or loss in the consolidated statement of operations.Eldorado Gold CorporationNotes to the Consolidated Financial Statements For the years ended December 31,20

110、20 and December 31,2019(In thousands of U.S.dollars,unless otherwise stated except share and per share amounts)(3)3.Significant accounting policies(continued)(ii)Property,plant and equipmentProperty,plant and equipment includes expenditures incurred on properties under development,significant paymen

111、ts related to the acquisition of land,mineral rights and property,plant and equipment which are recorded at cost on initial acquisition.Cost includes the purchase price and the directly attributable costs of acquisition or construction required to bring an asset to the location and condition necessa

112、ry for the asset to be capable of operating in the manner intended by management,including capitalized borrowing costs for qualifying assets.(iii)Deferred stripping costsStripping costs incurred during the production phase of a mine are considered production costs and included in the cost of invento

113、ry produced during the period in which the stripping costs are incurred,unless the stripping activity can be shown to provide access to additional mineral reserves,in which case the stripping costs are capitalized.Stripping costs incurred to prepare the ore body for extraction are capitalized as min

114、e development costs(pre-stripping).(iv)DepreciationMine development costs,property,plant and equipment and other mining assets whose estimated useful life is the same as the remaining life of the mine are depreciated,depleted and amortized over a mines estimated life using the units-of-production me

115、thod calculated based on proven and probable reserves.Capitalized development costs related to a multi-pit operation are amortized on a pit-by-pit basis over the pits estimated life using the units-of-production method calculated based on proven and probable reserves related to each pit.Capitalized

116、stripping costs are amortized on a unit-of-production basis over the proven and probable reserves to which they relate.Property,plant and equipment and other assets whose estimated useful lives are less than the remaining life of the mine are depreciated on a straight-line basis over the estimated u

117、seful lives of the assets.Where components of an asset have a different useful life and the cost of the component is significant to the total cost of the asset,depreciation is calculated on each separate component.Depreciation methods,useful lives and residual values are reviewed at the end of each

118、year and adjusted if appropriate.(v)Subsequent costsExpenditure on major maintenance or repairs includes the cost of replacement parts of assets and overhaul costs.Where an asset or part of an asset is replaced and it is probable that further future economic benefit will flow to the Company,the expe

119、nditure is capitalized and the carrying value of the replaced asset or part of an asset is derecognized.Similarly,overhaul costs associated with major maintenance are capitalized when it is probable that future economic benefit will flow to the Company and any remaining costs of previous overhauls r

120、elating to the same asset are derecognized.All other expenditures are expensed as incurred.(vi)Borrowing costsBorrowing costs are expensed as incurred except where they are attributable to the financing of construction or development of qualifying assets requiring a substantial period of time to pre

121、pare for their intended future use.Interest is capitalized up to the date when substantially all the activities necessary to prepare the asset for its intended use are complete.Interest is ceased to be capitalized during periods of prolonged suspension of construction or development.Borrowing costs

122、are classified as cash outflows from operating activities on the statement of cash flows except for borrowing costs capitalized which are classified as investing activities.Investment income arising on the temporary investment of proceeds from borrowings specific to qualifying assets is offset again

123、st borrowing costs being capitalized.Eldorado Gold CorporationNotes to the Consolidated Financial Statements For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars,unless otherwise stated except share and per share amounts)(4)3.Significant accounting policies(continued

124、)(vii)Mine standby costs and restructuring costsMine standby costs and costs related to restructuring a mining operation are charged directly to expense in the period incurred.Mine standby costs include labour,maintenance and mine support costs incurred during temporary shutdowns of a mine or a deve

125、lopment project.3.4 Leases A contract is or contains a lease when the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration.The Company recognizes a right-of-use asset and a lease liability at the lease commencement date.The right-of-us

126、e asset is initially measured at cost,and subsequently at cost less any accumulated depreciation and impairment losses,and is adjusted for certain remeasurements of the lease liability.The cost of the right-of-use asset includes the amount of the initial measurement of the lease liability,any lease

127、payments made at or before the commencement date,less any lease incentives received,any initial direct costs;and if applicable,an estimate of costs to be incurred by the Company in dismantling and removing the underlying asset,restoring the site on which it is located or restoring the underlying ass

128、et to the condition required by the terms and conditions of the lease.Right-of-use assets are presented in property,plant and equipment on the statement of financial position.The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement da

129、te,discounted using the interest rate implicit in the lease or,if that rate cannot be readily determined,the Companys incremental borrowing rate.The incremental borrowing rate reflects the rate of interest that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar

130、value in a similar economic environment with similar terms and conditions.The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made.It is remeasured when there is a change in future lease payments arising from a change in an index

131、or rate,a change in the estimate of the amount expected to be payable under a residual value guarantee,or as appropriate,changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised.The Com

132、pany applies judgement to determine the lease term for some lease contracts which contain renewal options.The Company does not recognize right-of-use assets and lease liabilities for leases of low-value assets,leases with lease terms that are less than 12 months at inception and arrangements for the

133、 use of land that grant the Company the right to explore,develop,produce or otherwise use the mineral resource contained in that land.Lease payments associated with these arrangements are instead recognized as an expense over the term on either a straight-line basis,or another systematic basis if mo

134、re representative of the pattern of benefit.The Company applies judgement in determining whether an arrangement grants the Company the right to explore,develop,produce or otherwise use the mineral resource contained in that land.3.5 Exploration,evaluation and development expenditures(i)ExplorationEx

135、ploration expenditures reflect the costs related to the initial search for mineral deposits with economic potential or obtaining more information about existing mineral deposits.Exploration expenditures typically include costs associated with the acquisition of mineral licences,prospecting,sampling,

136、mapping,diamond drilling and other work involved in searching for mineral deposits.All expenditures relating to exploration activities are expensed as incurred except for the costs associated with the acquisition of mineral licences which are capitalized in property,plant and equipment.Eldorado Gold

137、 CorporationNotes to the Consolidated Financial Statements For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars,unless otherwise stated except share and per share amounts)(5)3.Significant accounting policies(continued)(ii)EvaluationEvaluation expenditures reflect cos

138、ts incurred at projects related to establishing the technical and commercial viability of mineral deposits identified through exploration or acquired through a business combination or asset acquisition.Evaluation expenditures include the cost of:establishing the volume and grade of deposits through

139、drilling of core samples,trenching and sampling activities for an ore body that is classified as either a mineral resource or a proven and probable reserve;determining the optimal methods of extraction and metallurgical and treatment processes;studies related to surveying,transportation and infrastr

140、ucture requirements;permitting activities;andeconomic evaluations to determine whether development of the mineralized material is commercially viable,including scoping,pre-feasibility and final feasibility studies.Evaluation expenditures are capitalized if management determines that there is evidenc

141、e to support probability of generating positive economic returns in the future.A mineral resource is considered to have economic potential when it is expected that the technical feasibility and commercial viability of extraction of the mineral resource can be demonstrated considering long-term metal

142、 prices.Therefore,prior to capitalizing such costs,management determines that the following conditions have been met:There is a probable future benefit that will contribute to future cash inflows;The Company can obtain the benefit and control access to it;andThe transaction or event giving rise to t

143、he benefit has already occurred.The evaluation phase is complete once technical feasibility of the extraction of the mineral deposit has been determined through preparation of a reserve and resource statement,including a mining plan as well as receipt of required permits and approval of the Board of

144、 Directors to proceed with development of the mine.On such date,capitalized evaluation costs are assessed for impairment and reclassified to development costs.(iii)DevelopmentDevelopment expenditures are those that are incurred during the phase of preparing a mineral deposit for extraction and proce

145、ssing.These include pre-stripping costs and underground development costs to gain access to the ore that is suitable for sustaining commercial mining,preparing land,construction of plant,equipment and buildings and costs of commissioning the mine and processing facilities.It also includes proceeds r

146、eceived from pre-commercial production.Expenditures incurred on development projects continue to be capitalized until the mine and mill move into the production stage.The Company assesses each mine construction project to determine when a mine moves into the production stage.The criteria used to ass

147、ess the start date are determined based on the nature of each mine construction project,such as the complexity of a plant or its location.Various relevant criteria are considered to assess when the mine is substantially complete and ready for its intended use and moved into the production stage.The

148、criteria considered include,but are not limited to,the following:the level of capital expenditures compared to construction cost estimates;the completion of a reasonable period of testing of mine plant and equipment;the ability to produce minerals in saleable form(within specification);and the abili

149、ty to sustain ongoing production of minerals.Eldorado Gold CorporationNotes to the Consolidated Financial Statements For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars,unless otherwise stated except share and per share amounts)(6)3.Significant accounting policies(c

150、ontinued)If the factors that impact the technical feasibility and commercial viability of a project change and no longer support the probability of generating positive economic returns in the future,expenditures will no longer be capitalized and the capitalized development costs will be assessed for

151、 impairment.3.6 Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the Companys share of the net assets of the acquired business at the date of acquisition.When the excess is negative(negative goodwill),it is recognized immediately in income.Goodwill on acqu

152、isition of subsidiaries and businesses is shown separately as goodwill in the consolidated financial statements.Goodwill on acquisition of associates is included in investments in significantly influenced companies and tested for impairment as part of the overall investment.Goodwill is carried at co

153、st less accumulated impairment losses and tested annually for impairment.The impairment testing is performed annually or more frequently if events or changes in circumstances indicate that it may be impaired.Impairment losses on goodwill are not reversed.Goodwill is allocated to cash-generating unit

154、s(“CGUs)for the purpose of impairment testing.The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the business combination in which the goodwill arose.If the composition of one or more CGUs to which goodwill has been allocated changes due to a reorganization,the

155、goodwill is reallocated to the units affected.3.7 Impairment of non-financial assets Non-financial assets which include property,plant and equipment are reviewed each reporting period for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

156、If such indicators exist,the Company determines the recoverable amount,and if applicable,recognizes an impairment loss.An impairment loss is recognized for the amount by which the assets carrying amount exceeds its recoverable amount.The recoverable amount is the higher of an assets fair value less

157、cost of disposal(FVLCD)and value in use.For the purposes of assessing impairment,assets are grouped at the lowest levels for which there are separately identifiable cash flows or CGUs.Value in use is determined as the present value of the estimated future cash flows expected to arise from the contin

158、ued use of the asset in its present form and its eventual disposal.Value in use is determined by applying assumptions specific to the Companys continued use of the asset and does not take into account assumptions of significant future enhancements of an assets performance or capacity to which the Co

159、mpany is not committed.FVLCD is the amount obtainable from the sale of an asset or CGU in an arms length transaction between knowledgeable,willing parties,less the costs of disposal.For mining assets,FVLCD is often estimated using a discounted cash flow approach because a fair value is not readily a

160、vailable from an active market or binding sale agreement.Estimated future cash flows are calculated using estimated future prices,mineral reserves and resources,operating and capital costs.All assumptions used are those that an independent market participant would consider appropriate.The estimated

161、future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.Non-financial assets other than goodwill impaired in prior periods are reviewed for possible reversal of the i

162、mpairment when events or changes in circumstances indicate that an item of mineral property and equipment or CGU is no longer impaired.An impairment charge is reversed through the consolidated statement of operations only to the extent of the assets or CGUs carrying amount that would have been deter

163、mined net of applicable depreciation,had no impairment loss been recognized.Eldorado Gold CorporationNotes to the Consolidated Financial Statements For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars,unless otherwise stated except share and per share amounts)(7)3.Si

164、gnificant accounting policies(continued)3.8 Financial assets(i)Classification and measurement The Company classifies its financial assets in the following categories:at fair value through profit or loss(“FVTPL”),at fair value through other comprehensive income(“FVTOCI”)or at amortized cost.The class

165、ification depends on the purpose for which the financial assets were acquired.Management determines the classification of its financial assets at initial recognition.The classification of investments in debt instruments is driven by the business model for managing the financial assets and their cont

166、ractual cash flow characteristics.Investments in debt instruments are measured at amortized cost if the business model is to hold the instrument for collection of contractual cash flows and those cash flows are solely principal and interest.If the business model is not to hold the debt instrument,it

167、 is classified as FVTPL.Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payments of principal and interest.Equity instruments that are held for trading(including all equity derivative instruments)are classified as FVTPL

168、.For other equity instruments,on the day of acquisition the Company can make an irrevocable election(on an instrument-by-instrument basis)to designate them as FVTOCI.(a)Financial assets at FVTPL Financial assets carried as FVTPL are initially recorded at fair value with all transaction costs expense

169、d in the consolidated statement of operations.Realized and unrealized gains and losses arising from changes in the fair value of the financial asset held at FVTPL are included in the consolidated statement of operations in the period in which they arise.Derivatives are also categorized as FVTPL unle

170、ss they are designated as hedges.(b)Financial assets at FVTOCI Investments in equity instruments as FVTOCI are initially recognized at fair value plus transaction costs.Subsequently they are measured at fair value,with gains and losses arising from changes in fair value recognized in other comprehen

171、sive income(loss).There is no subsequent reclassification of fair value gains and losses to net earnings(loss)following the derecognition of the investment.(c)Financial assets at amortized cost Financial assets at amortized cost are initially recognized at fair value and subsequently carried at amor

172、tized cost less any provisions for credit losses.(ii)Impairment of financial assets The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost.At each reporting date,the loss allowance for the financial asset is measured at an amount eq

173、ual to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.If at the reporting date,the credit risk on the financial asset has not increased significantly since initial recognition,the loss allowance is measured for the

174、financial asset at an amount equal to 12-month expected credit losses.For trade receivables the Company applies the simplified approach to providing for expected credit losses,which allows the use of a lifetime expected loss provision.Impairment losses on financial assets carried at amortized cost a

175、re reversed in subsequent periods if the amount of the loss decreases and the decrease can be objectively related to an event occurring after the impairment was recognized.(iii)Derecognition of financial assets Financial assets are derecognized when they mature or are sold,and substantially all the

176、risks and rewards of ownership have been transferred.Gains and losses on derecognition of financial assets classified as FVTPL or amortized cost are recognized in the consolidated statement of operations.Gains or losses on financial assets classified as FVTOCI remain within accumulated other compreh

177、ensive income(loss).Eldorado Gold CorporationNotes to the Consolidated Financial Statements For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars,unless otherwise stated except share and per share amounts)(8)3.Significant accounting policies(continued)3.9 Derivative f

178、inancial instruments and hedging activities Derivatives are recognized initially at fair value on the date a derivative contract is entered into.Subsequent to initial recognition,derivatives are remeasured at their fair value.Derivatives embedded in financial liability contracts are recognized separ

179、ately if they are not closely related to the host contract.Derivatives,including embedded derivatives from financial liability contracts,are recorded on the statement of financial position at fair value and the unrealized gains and losses are recognized in the consolidated statement of operations.Th

180、e method of recognizing any resulting gain or loss depends on whether the derivative is designated as a hedging instrument and,if so,the nature of the item being hedged.Changes in the fair value of any derivative instruments that do not qualify for hedge accounting are recognized immediately in the

181、consolidated statement of operations.(i)Fair value hedge Changes in the fair values of derivatives that are designated and qualify as fair value hedges are recorded in the consolidated statement of operations,together with any changes in the fair values of the hedged assets or liabilities that are a

182、ttributable to the hedged risk.(ii)Cash flow hedge The effective portions of changes in the fair values of derivatives that are designated and qualify as cash flow hedges are recognized in equity.The gain or loss relating to any ineffective portion is recognized immediately in the consolidated state

183、ment of operations.Amounts accumulated in the hedge reserve are recycled in the consolidated statement of operations in the periods when the hedged items will affect net earnings(loss)(for instance when the forecast sale that is hedged takes place).If a forecast transaction that is hedged results in

184、 the recognition of a non-financial asset(for example,inventory)or a liability,the gains and losses previously deferred in the hedge reserve are included in the initial measurement of the cost of the asset or liability.When a hedging instrument expires or is sold,or when a hedge no longer meets the

185、criteria for hedge accounting,any cumulative gain or loss existing in the hedge reserve at that time remains in the reserve and is recognized when the forecast transaction is ultimately recognized in the consolidated statement of operations.When a forecast transaction is no longer expected to occur,

186、the cumulative gain or loss that was reported in other comprehensive income(loss)is immediately transferred to the consolidated statement of operations.The Company has not designated any derivative contracts as hedges and therefore has not applied hedge accounting in these consolidated financial sta

187、tements.3.10 Inventories Inventories are valued at the lower of cost and net realizable value.Costs incurred in bringing each product to its present location and condition are accounted for as follows:(i)Product inventory consists of stockpiled ore,ore on leach pads,crushed ore,in-circuit material a

188、t properties with milling or processing operations,gold concentrate,other metal concentrate,dor awaiting refinement and unsold bullion.Product inventory costs consist of direct production costs including mining,crushing and processing;site administration costs;and allocated indirect costs,including

189、depreciation and amortization of mineral property,plant and equipment.Inventory costs are charged to production costs on the basis of quantity of metal sold.At operations where the ore extracted contains significant amounts of metals other than gold,primarily silver,lead and zinc,cost is allocated b

190、etween the joint products.The Company regularly evaluates and refines estimates used in determining the costs charged to production costs and costs absorbed into inventory carrying values based upon actual gold recoveries and operating plans.Eldorado Gold CorporationNotes to the Consolidated Financi

191、al Statements For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars,unless otherwise stated except share and per share amounts)(9)3.Significant accounting policies(continued)Net realizable value is the estimated selling price,less the estimated costs of completion and

192、 selling expenses.A write-down is recorded when the carrying value of inventory is higher than its net realizable value.(ii)Materials and supplies inventory consists of consumables used in operations,such as fuel,chemicals,reagents and spare parts,which are valued at the lower of average cost and ne

193、t realizable value and,where appropriate,less a provision for obsolescence.Costs include acquisition,freight and other directly attributable costs.3.11 Trade receivables Trade receivables are amounts due from customers for the sale of bullion and metals in concentrate in the ordinary course of busin

194、ess.Trade receivables are recognized initially at fair value and subsequently at amortized cost using the effective interest rate method.Trade receivables are recorded net of lifetime expected credit losses.Settlement receivables arise from the sale of metals in concentrate where the amount receivab

195、le is finalized on settlement date based on the underlying commodity price.Settlement receivables are classified as fair value through profit and loss and are recorded at each reporting period at fair value based on forward metal prices.Changes in fair value of settlements receivable are recorded in

196、 revenue.3.12 Cash and cash equivalents Cash and cash equivalents include cash on hand,short term bank deposits and other short-term highly liquid investments with maturities at the date of acquisition of 90 days or less.Cash and cash equivalents are classified as financial assets which are initiall

197、y measured at fair value and subsequently measured at amortized cost.3.13 Trade payables Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.Trade payables are recognized initially at fair value and subsequently measur

198、ed at amortized cost.3.14 Debt and borrowings Borrowings are recognized initially at fair value,net of transaction costs incurred.Borrowings are subsequently carried at amortized cost,calculated using the effective interest method.Any difference between the proceeds(net of transaction costs)and the

199、redemption value is recognized in the consolidated statement of operations over the period of the borrowings using the effective interest method.Fees paid on the establishment of loan facilities and other borrowings are recognized as transaction costs of the loan to the extent that it is probable th

200、at some or all of the facility and other borrowings will be drawn down.In this case,the fee is deferred until the draw-down occurs at which time,these transaction costs are included in the carrying value of the amount drawn on the facility and amortized using the effective interest rate method.To th

201、e extent there is no evidence that it is probable that some or all of the facility and borrowings will be drawn down,the fee is capitalized as a prepayment for liquidity services and amortized over the period the loan facility to which it relates is available to the Company.Eldorado Gold Corporation

202、Notes to the Consolidated Financial Statements For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars,unless otherwise stated except share and per share amounts)(10)3.Significant accounting policies(continued)3.15 Current and deferred income tax Income tax expense comp

203、rises current and deferred tax.Income tax expense is recognized in the consolidated statement of operations except to the extent that it relates to items recognized either in other comprehensive income or directly in equity,in which case it is recognized in other comprehensive income or in equity,re

204、spectively.Current tax is the expected tax payable on the taxable income for the year,using tax rates enacted or substantively enacted at the reporting date,and any adjustment to tax payable in respect of previous years.Taxes on income in the interim periods are accrued using the tax rate that would

205、 be applicable to expected total annual earnings.The tax rate used is the rate that is substantively enacted.Deferred income tax is recognized on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements.Deferred

206、 income tax is not recorded if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss or on temporary differences relating to the investment in subsidiari

207、es to the extent that they will not reverse in the foreseeable future.Deferred income tax is determined using tax rates(and laws)that have been enacted or substantively enacted by the statement of financial position date and are expected to apply when the related deferred income tax asset is realize

208、d or the deferred income tax liability is settled.A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized.Deferred tax assets are reviewed at each reporting date and are reduced to the e

209、xtent that it is no longer probable that the related tax benefit will be realized.3.16 Employee benefits(i)Defined benefit plansThe Company has defined benefit plans,where the level of benefit provided is based on the length of service and earnings of the person entitled.The cost of the defined bene

210、fit plan is determined using the projected unit credit method.The related pension liability recognized in the consolidated statement of financial position is the present value of the defined benefit obligation at the statement of financial position date less the fair value of plan assets.The Company

211、 obtains actuarial valuations for defined benefit plans for each statement of financial position date.Actuarial assumptions used in the determination of defined benefit pension plan liabilities are based on best estimates,including rate of salary escalation and expected retirement dates of employees

212、.The discount rate is based on high quality bond yields.The assumption used to determine the interest income on plan assets is equal to the discount rate.Actuarial gains and losses are recognized in full in the period in which they occur in other comprehensive income without recycling to the consoli

213、dated statement of operations in subsequent periods.Current service cost,the vested element of any past service cost,the interest income on plan assets and the interest arising on the pension liability are included in the consolidated statement of operations.Past service costs are recognized immedia

214、tely to the extent the benefits are vested,and otherwise are amortized on a straight-line basis over the average period until the benefits become vested.(ii)Defined contribution plansThe Companys contributions to defined contribution plans are charged to the consolidated statement of operations in t

215、he period to which the contributions relate.Eldorado Gold CorporationNotes to the Consolidated Financial Statements For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars,unless otherwise stated except share and per share amounts)(11)3.Significant accounting policies(c

216、ontinued)(iii)Termination benefitsTermination benefits are recognized when there is a demonstrable commitment to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal,or providing benefits as a result of an offer made to encourag

217、e voluntary termination.Benefits falling due more than twelve months after the end of the reporting period are discounted to their present value.(iv)Short-term benefitsShort-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.A

218、liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.3.17 Share

219、-based payment arrangements Share-based payment arrangements related to stock option awards,deferred share units,equity settled restricted share units and performance share units are measured at fair value.Compensation expense for all stock options awarded to employees is measured based on the fair

220、value of the options on the date of grant which is determined using the Black-Scholes option pricing model.For equity settled restricted share units,compensation expense is measured based on the quoted market value of the shares.For equity settled performance share units with market based vesting co

221、nditions,compensation expense is measured based on the fair value of the share units on the date of grant which is based on the expected future forward price of the Companys shares and an index consisting of global gold-based securities.Deferred share units are liability awards settled in cash and m

222、easured at the quoted market price at the grant date and the corresponding liability is adjusted for changes in fair value at each subsequent reporting date until the awards are settled.The fair value of the options,restricted share units,performance share units and deferred units are expensed over

223、the vesting period of the awards with a corresponding increase in equity.No expense is recognized for awards that do not ultimately vest.3.18 Provisions Asset retirement obligationsA provision is made for mine restoration and rehabilitation when an obligation is incurred.The provision is recognized

224、as a liability with the corresponding cost included in the asset to which the obligation relates.At each reporting date the asset retirement obligation is remeasured to reflect changes in discount rates,and the timing or amount of the costs to be incurred.The provision recognized represents manageme

225、nts best estimate of the present value of the future costs required.Significant estimates and assumptions are made in determining the amount of asset retirement obligations.Those estimates and assumptions deal with uncertainties such as:requirements of the relevant legal and regulatory frameworks,th

226、e magnitude of necessary remediation activities and the timing,extent and costs of required restoration and rehabilitation activities.These uncertainties may result in future actual expenditure differing from the amounts currently provided.The provision recognized is periodically reviewed and update

227、d based on the facts and circumstances available at the time.Changes to the estimated future costs for operating sites are recognized in the consolidated statement of financial position by adjusting both the asset retirement obligation and related assets.Such changes result in changes in future depr

228、eciation and financial charges.Eldorado Gold CorporationNotes to the Consolidated Financial Statements For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars,unless otherwise stated except share and per share amounts)(12)3.Significant accounting policies(continued)Othe

229、r provisionsA provision is recognized if,as a result of a past event,the Company has a present legal or constructive obligation that can be estimated reliably,and it is probable that an outflow of economic benefits will be required to settle the obligation.They are determined by discounting the expe

230、cted future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.3.19 Share capital Common shares are classified as equity.Incremental costs directly attributable to the issue of common shares and share options are r

231、ecognized as a deduction from equity,net of any tax effects.Common shares held by the Company are classified as treasury stock and recorded as a reduction of shareholders equity.3.20 Revenue recognition Revenue is generated from the production and sale of dor,bullion and metals in concentrate.The Co

232、mpanys performance obligations relate primarily to the delivery of these products to customers,with each shipment representing a separate performance obligation.Revenue from the sale of dor,bullion and metals in concentrates is measured based on the consideration specified in the contract with the c

233、ustomer.The Company recognizes revenue when it transfers control of the product to the customer and has a present right to payment for the product.(i)Metals in concentrate Control over metals in concentrates is transferred to the customer and revenue is recognized when the product is considered to b

234、e physically delivered to the customer under the terms of the customer contract.This is typically when the concentrate has been placed on board a vessel for shipment or delivered to a location specified by the customer.Metals in concentrate are sold under pricing arrangements where final prices are

235、determined by market prices subsequent to the date of sale(the“quotational period”).Revenue from concentrate sales is recorded based on the estimated amounts to be received,based on the respective metals forward price at the expected settlement date.Adjustments are made to settlements receivable in

236、subsequent periods based on fluctuations in the forward prices until the date of final metal pricing.These subsequent changes in the fair value of the settlement receivable are recorded in revenue separate from revenue from contracts with customers.Provisional invoices for metals in concentrate sale

237、s are typically issued shortly after or on the passage of control of the product to the customer and the Company receives 90-95%of the provisional invoice at that time.Additional invoices are issued as final product weights and assays are determined over the quotational period.Provisionally invoiced

238、 amounts are generally collected promptly.(ii)Metals in dor The Company sells dor directly to refiners,or,refiners may receive dor from the Company to refine the materials on the Companys behalf and arrange for sale of the refined metal.In the Turkey operating segment,refined metals are sold at spot

239、 prices on the Precious Metal Market of the Borsa Istanbul.Sales proceeds are collected within several days of the completion of the sale transaction.Control over the refined gold or silver produced from dor is transferred to the customer and revenue recognized upon delivery to the customers bullion

240、 account on the Precious Metal Market of the Borsa Istanbul.In the Canada segment,dor and refined metals are sold at spot prices with sales proceeds collected within several days of the sales transaction.Control is typically transferred to the customer and revenue recognized upon delivery to a locat

241、ion specified by the customer.Eldorado Gold CorporationNotes to the Consolidated Financial Statements For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars,unless otherwise stated except share and per share amounts)(13)3.Significant accounting policies(continued)3.21

242、Finance income and expenses Finance income includes interest income on funds invested(including financial assets carried at FVTPL)and changes in the fair value of financial assets at FVTPL.Interest income is recognized as it accrues in the consolidated statement of operations,using the effective int

243、erest method.Finance expenses include borrowing costs,unwinding of the discount on provisions,changes in the fair value of financial assets at fair value through profit or loss and impairment losses recognized on financial assets.All borrowing costs are recognized in the consolidated statement of op

244、erations using the effective interest method,except for those amounts capitalized as part of the cost of qualifying property,plant and equipment.3.22 Earnings(loss)per share The Company presents basic and diluted earnings per share(“EPS”)data for its common shares.Basic EPS is calculated by dividing

245、 the earnings or loss attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period.Diluted EPS is determined by adjusting the earnings or loss attributable to common shareholders and the weighted average number of common shares outs

246、tanding for the effects of all dilutive potential common shares,which comprise share options,restricted share units and performance share units granted to employees.4.Judgements and estimation uncertainty The preparation of consolidated financial statements in conformity with IFRS requires managemen

247、t to make judgements,estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,liabilities,income and expenses.Actual results may differ from these estimates.Estimates and underlying assumptions are reviewed at each period end.Revisions to accoun

248、ting estimates are recognized in the period in which the estimates are revised and in any future periods affected.Significant areas requiring the use of management assumptions,estimates and judgements include the valuation of property,plant and equipment and goodwill,estimated recoverable reserves a

249、nd resources,inventory,current and deferred taxes,asset retirement obligations,commencement of commercial production and functional currency.Actual results could differ from these estimates.Outlined below are some of the areas which require management to make significant judgements,estimates and ass

250、umptions.(i)Valuation of property,plant and equipment and goodwill Property,plant and equipment and goodwill are tested for impairment when events or changes in circumstances suggest that the carrying amount may not be fully recoverable.Goodwill is tested at least annually.Calculating the recoverabl

251、e amount,including estimated FVLCD of CGUs for property,plant and equipment and goodwill,requires management to make estimates and assumptions with respect to discount rates,future production levels including amount of recoverable reserves,resources and exploration potential,operating and capital co

252、sts,long-term metal prices,and estimates of the fair value of mineral properties beyond proven and probable reserves.Changes in any of the assumptions or estimates used in determining the recoverable amount could result in additional impairment or reversal of impairment recognized.Eldorado Gold Corp

253、orationNotes to the Consolidated Financial Statements For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars,unless otherwise stated except share and per share amounts)(14)4.Judgements and estimation uncertainty(continued)(ii)Estimated recoverable reserves and resource

254、s Mineral reserve and resource estimates are based on various assumptions relating to operating matters,including,with respect to production costs,mining and processing recoveries,cut-off grades,as well as assumptions relating to long-term commodity prices and,in some cases,exchange rates and capita

255、l costs.Cost estimates are based on feasibility study estimates or operating history.Estimates are prepared by appropriately qualified persons,but will be impacted by forecasted commodity prices,exchange rates,capital and production costs and recoveries amongst other factors.Estimated recoverable re

256、serves and resources are used to determine the depreciation of property,plant and equipment at operating mine sites,in accounting for deferred stripping costs,in performing impairment testing and for forecasting the timing of the payment of decommissioning and restoration costs.Therefore,changes in

257、the assumptions used could impact the carrying value of assets,depreciation and impairment charges recorded in the consolidated statement of operations and the carrying value of the asset retirement obligation.(iii)Inventory The Company considers ore stacked on its leach pads and in process at its m

258、ines as work-in-process inventory and includes them in production costs based on ounces of gold or tonnes of concentrate sold,using the following assumptions in its estimates:the amount of gold and other metals estimated to be in the ore stacked on the leach pads;the amount of gold expected to be re

259、covered from the leach pads;the amount of gold and other metals in the processing circuits;the amount of gold and other metals in concentrates;and the gold and other metal prices expected to be realized when sold.If these estimates or assumptions are inaccurate,the Company could be required to write

260、 down the value it has recorded on its work-in-process inventories,which would reduce earnings and working capital.(iv)Asset retirement obligation The asset retirement obligation provision represents managements best estimate of the present value of future cash outflows required to settle the liabil

261、ity which reflect estimates of future costs,inflation,requirements of the relevant legal and regulatory frameworks and the timing of restoration and rehabilitation activities.Estimated future cash outflows are discounted using a risk-free rate based on U.S.Treasury bond rates.Changes to asset retire

262、ment obligation estimates are recorded with a corresponding change to the related item of property,plant and equipment.Adjustments to the carrying amounts of related items of property,plant and equipment can result in a change to future depreciation expense.(v)Current and deferred taxes Judgements a

263、nd estimates of recoverability are required in assessing whether deferred tax assets recognized on the consolidated statement of financial position are recoverable which is based on an assessment of the ability to use the underlying future tax deductions before they expire against future taxable inc

264、ome.Deferred tax liabilities arising from temporary differences on investments in subsidiaries,joint ventures and associates are recognized unless the reversal of the temporary differences is not expected to occur in the foreseeable future and can be controlled,which requires judgement.Assumptions a

265、bout the generation of future taxable earnings and repatriation of retained earnings depend on managements estimates of future production and sales volumes,commodity prices,reserves,operating costs,decommissioning and restoration costs,capital expenditures,dividends and other capital management tran

266、sactions.Eldorado Gold CorporationNotes to the Consolidated Financial Statements For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars,unless otherwise stated except share and per share amounts)(15)4.Judgements and estimation uncertainty(continued)The Company operates

267、 in multiple tax jurisdictions and judgement is required in the application of income tax legislation in these jurisdictions.These estimates and judgements are subject to risk and uncertainty and could result in an adjustment to current and deferred tax provisions and a corresponding increase or dec

268、rease to earnings or loss for the period.(vi)Commencement of commercial production Until a mining property is declared as being in the commercial production stage,all costs related to its development are capitalized.The determination of the date on which a mine enters the commercial production stage

269、 is a matter of judgement that impacts when capitalization of development costs ceases and recognition of revenues and depreciation of the mining property commences and is charged to the consolidated statement of operations.On March 31,2019,the Company declared commercial production at the Lamaque m

270、ine,having reached certain milestones.Commercial production represents the point at which the group of assets were able to operate as intended by management.Upon declaring commercial production,Lamaque recognizes all revenue and costs in the consolidated statement of operations.Prior to March 31,201

271、9,costs incurred for construction,development and commissioning of the mine,net of pre-commercial sales,were recognized within mineral property in property,plant and equipment.(vii)Functional currency The functional currency for each of the Companys subsidiaries is the currency of the primary econom

272、ic environment in which the entity operates.The Company has determined the functional currency of each entity is the U.S.dollar.Determination of functional currency involves judgements to determine the primary economic environment and the Company reconsiders the functional currency of its entities i

273、f there is a change in events and conditions which determined the primary economic environment.5.Adoption of new accounting standardsThe following standards and amendments to existing standards have been adopted by the Company commencing January 1,2020:(a)Interest rate benchmark reform-Phase 1 In Se

274、ptember 2019,the IASB issued first phase amendments IFRS 9 Financial Instruments,IAS 39 Financial Instruments:Recognition and Hedging and IFRS 7 Financial Instrument Disclosures to address the financial reporting impact of the reform on interest rate benchmarks,such as the discontinuance of the inte

275、rbank offered rates.The first phase amendment is focused on the impact to hedge accounting requirements.Adoption of the first phase amendment had no material impact on the consolidated financial statements.(b)Conceptual framework for financial reporting In March 2018,the IASB revised the Conceptual

276、Framework for financial reporting.The Conceptual Framework sets out fundamental concepts for financial reporting and guides companies in developing accounting policies when no IFRS standard exists.The Conceptual Framework sets out the objective of general purpose financial reporting;the qualitative

277、characteristics of useful financial information;a description of the reporting entity;definitions of an asset,a liability,equity,income and expenses and guidance on recognition and de-recognition criteria;measurement bases and guidance on when to use them;concepts and guidance on presentation and di

278、sclosure;and concepts relating to capital and capital maintenance.Adoption of this standard had no material impact on the consolidated financial statements.Eldorado Gold CorporationNotes to the Consolidated Financial Statements For the years ended December 31,2020 and December 31,2019(In thousands o

279、f U.S.dollars,unless otherwise stated except share and per share amounts)(16)5.Adoption of new accounting standards(continued)(c)Definition of a businessIn October 2018,the IASB amended IFRS 3 Business Combinations to clarify the definition of a business,which is effective January 1,2020.The amendme

280、nt provides additional guidance on the definition of a business in determining whether a transaction results in an asset or business acquisition.The amendment includes an optional concentration test to permit a simplified assessment of whether an acquired set of activities and assets is not a busine

281、ss.If the concentration test is not met,or if an entity elects not to apply the test,then an assessment of the elements of a business is performed to determine whether the transaction results in an asset or business acquisition.Adoption of this standard had no material impact on the consolidated fin

282、ancial statements.Below are new standards,amendments to standards and interpretations that have been issued and are not yet effective.The Company plans to apply the new standards or interpretations in the annual period for which they are effective.(a)Property,plant and equipment-proceeds before inte

283、nded 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 inten

284、ded 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 t

285、he 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

286、 it becomes effective and does not expect a revision to comparative financial information in its consolidated financial statements as a result of adoption.(b)Interest rate benchmark reform-Phase 2In August 2020,the IASB published the Interest Rate Benchmark Reform-Phase 2,which amends IFRS 9 Financi

287、al Instruments,IAS 39 Financial Instruments:Recognition and Measurement,IFRS 7 Financial Instruments:Disclosure,IFRS 4 Insurance Contracts,and IFRS 16 Leases.The Phase 2 amendments address issues that may affect financial reporting related to financial instruments and hedge accounting resulting from

288、 the reform of an interest rate benchmark.The amendments are effective for annual periods beginning on or after January 1,2021.The Company is assessing the effect of amendments related to the interest rate benchmark reform on its consolidated financial statements including the impact,if any,on amoun

289、ts drawn on the Companys third amended and restated credit agreement(as defined below)which bear interest based on London Inter-Bank Offered Rate(LIBOR).The Company does not expect a material impact on its consolidated financial statements from the adoption of this amendment.(c)Classification of lia

290、bilities as current or non-currentIn 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 report

291、ing 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 it becomes effe

292、ctive and is currently evaluating the impact of the amendments on its consolidated financial statements.Eldorado Gold CorporationNotes to the Consolidated Financial Statements For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars,unless otherwise stated except share a

293、nd per share amounts)(17)6.Cash and cash equivalents December 31,2020December 31,2019Cash$371,057$173,801 Short-term bank deposits 80,905 3,941$451,962$177,742 7.Accounts receivable and other December 31,2020December 31,2019Trade receivables$35,649$35,107 Value added tax and other taxes recoverable

294、12,171 17,658 Other receivables and advances 5,843 10,756 Prepaid expenses and deposits 19,359 11,789 Marketable securities 194 3,828$73,216$79,138 8.Inventories December 31,2020December 31,2019Ore stockpiles$6,327$3,859 In-process inventory and finished goods 81,120 81,282 Materials and supplies 88

295、,824 78,093$176,271$163,234 In 2020,inventories of$367,310(2019$296,218)were recognized as an expense during the year and included in cost of sales.During the year ended December 31,2020,charges of$2,122 and$206 were recognized in production costs and depreciation,respectively,to reduce the cost of

296、lead and zinc concentrate inventory at Stratoni to net realizable value.During the year ended December 31,2019,charges of$632 and$1,894 were recognized in production costs and depreciation,respectively,to reduce the cost of lead,zinc and gold concentrate inventory at Olympias and Stratoni to net rea

297、lizable value.9.Other assets December 31,2020December 31,2019Long-term value added tax and other taxes recoverable$32,148$13,749 Prepaid forestry fees 2,655 3,222 Prepaid loan costs(Note 15(b)2,191 2,865 Other assets 2,568 3,107$39,562$22,943 Eldorado Gold CorporationNotes to the Consolidated Financ

298、ial Statements For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars,unless otherwise stated except share and per share amounts)(18)10.Non-controlling interests On May 11,2020,the Company purchased the remaining 5%interest in Hellas,a subsidiary of the Company,for cas

299、h consideration of$7,500.Hellas operates the Olympias and Stratoni mines and holds the Skouries project.Additional consideration may become payable under certain circumstances but is not expected to be material.As Hellas was controlled by the Company prior to the acquisition,$4,172 was recorded in c

300、ontributed surplus representing the difference between the cash consideration and the carrying value of the non-controlling interest at the date of purchase.The following table summarizes the information relating to each of the Companys subsidiaries that has material non-controlling interests(“NCI”)

301、.The amounts disclosed for each subsidiary are based on those included in the consolidated financial statements before inter-company eliminations.As the Company purchased the remaining 5%interest in Hellas,the carrying value is nil at December 31,2020.The non-controlling interest portion of the inco

302、me statement and statement of cash flow amounts for Hellas prior to the acquisition in 2020 are presented in the table below.December 31,2020December 31,2019HellasDevaHellasDevaNCI percentage0%(1)19.5%5%19.5%Current assets$3,178$67,902$1,867 Non-current assets 412,251 1,858,544 415,149 Current liabi

303、lities (235)(1,050,952)(312)Non-current liabilities (322,454)(405,318)(294,493)Net assets$92,740$470,176$122,211 Carrying amount of NCI$37,520$13,362$42,903 Cash flows used in operating activities$(6,535)$(3,750)$(215)$(4,856)Cash flows generated from(used in)investing activities(16,708)10 (45,216)(

304、15)Cash flows generated from financing activities 18,927 4,754 50,026 4,803 Net increase(decrease)in cash and cash equivalents$(4,316)$1,014$4,595$(68)Revenue$65,781$140,156$Net loss and comprehensive loss (33,824)(27,604)(107,758)(6,494)Net loss allocated to NCI(1,691)(5,383)(5,388)(1,266)Dividends

305、 paid to NCI (1)The Company purchased the remaining 5%non-controlling interest in Hellas on May 11,2020.Net loss allocated to NCI in the consolidated statement of operations includes$106 related to non-material subsidiaries(2019$247).The carrying value of the NCI related to non-material subsidiaries

306、 is$3,353(2019$3,039).Eldorado Gold CorporationNotes to the Consolidated Financial Statements For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars,unless otherwise stated except share and per share amounts)(19)11.Property,plant and equipmentLand and buildingsPlant an

307、d equipmentCapital works in progressMineral propertiesCapitalized EvaluationTotalCostBalance at January 1,2019$192,244$2,112,033$109,361$4,169,157$93,459$6,676,254 Additions/transfers(1)17,379 85,929 19,735 68,794 3,393 195,230 IFRS 16 transition adjustment 7,555 1,734 90 9,379 Proceeds on pre-comme

308、rcial production sales,net (12,159)(12,159)Commercial production transfers 27,070 92,791 (119,861)(Impairment)reversal 11,690 (15,268)(3,578)Write-down of assets (1,979)(16)(1,995)Other movements/transfers(1,715)33,335 (30,103)(505)(129)883 Transfer to assets held for sale (Note 32)(11,690)(11,690)D

309、isposals(22)(4,455)(737)(2,421)(7,635)Balance at December 31,2019$242,511$2,319,388$83,078$4,103,005$96,707$6,844,689 Additions/transfers(1)$14,737$82,285$61,135$55,971$2,115$216,243 Write-down of assets (40,030)(40,030)Other movements/transfers 1,841 22,371 (20,594)(2,217)(28)1,373 Disposals(402)(1

310、0,297)(76)(102)(10,877)Balance at December 31,2020$258,687$2,413,747$83,513$4,156,759$98,692$7,011,398 Accumulated depreciationBalance at January 1,2019$(47,974)$(1,008,763)$(1,631,041)$(2,687,778)Depreciation for the year(10,605)(107,654)(51,965)(170,224)Impairment reversal 90,825 9,667 100,492 Oth

311、er movements(206)(1,049)213 (1,042)Disposals 7 2,058 2,065 Balance at December 31,2019$(58,778)$(1,024,583)$(1,673,126)$(2,756,487)Depreciation for the year$(13,898)$(159,759)$(84,947)$(258,604)Other movements(125)(1,985)247 (1,863)Disposals 54 3,880 115 4,049 Balance at December 31,2020$(72,747)$(1

312、,182,447)$(1,757,711)$(3,012,905)Carrying amountsAt January 1,2019$144,270$1,103,270$109,361$2,538,116$93,459$3,988,476 At December 31,2019$183,733$1,294,805$83,078$2,429,879$96,707$4,088,202 Balance at December 31,2020$185,940$1,231,300$83,513$2,399,048$98,692$3,998,493(1)There were no amounts incl

313、uded in property,plant and equipment that relate to capitalized interest during the year ended December 31,2020(2019-$3,848 capitalized).Eldorado Gold CorporationNotes to the Consolidated Financial Statements For the years ended December 31,2020 and December 31,2019(In thousands of U.S.dollars,unles

314、s otherwise stated except share and per share amounts)(20)11.Property,plant and equipment(continued)In accordance with the Companys accounting policies each CGU is assessed for indicators of impairment,from both external and internal sources,at the end of each reporting period.If such indicators of

315、impairment exist for any CGUs,those CGUs are tested for impairment.The recoverable amounts of the Companys CGUs are based primarily on the net present value of future cash flows expected to be derived from the CGUs.The recoverable amount used by the Company represents each CGUs FVLCD,a Level 3 fair

316、value measurement,as it was determined to be higher than value in use.(i)OlympiasAs at December 31,2019,Management determined that weaker-than-expected production at Olympias during 2019 and rising market rates for concentrate treatment charges indicated a potential impairment for Olympias.Using a F

317、VLCD approach,the Company assessed the recoverable amount of the Olympias CGU at December 31,2019.Based on its assessment,the Company determined that no impairment loss or reversal of impairment for the Olympias CGU was required.In December 2020,as a result of more stable production volumes at the O

318、lympias mine which provided a more reliable basis to estimate future results,the Company updated its unit cost estimates and mining assumptions used for estimating reserves,including increased mining dilution and decreased mining recovery.These factors resulted in an increase in cut-off values and l

319、ed to a 23%decrease in proven and probable reserves,which the Company considered to indicate a potential impairment for Olympias.Using a FVLCD approach,the Company assessed the recoverable amount of the Olympias CGU as at December 31,2020.Based on its assessment,the Company determined that no impair

320、ment loss or reversal of impairment for the Olympias CGU was required.The significant assumptions used for determining the recoverable amount of the Olympias CGU are reflected in the table below.Management used judgement in determining estimates and assumptions with respect to discount rates,future

321、production levels including amount of recoverable reserves,resources and exploration potential,operating and capital costs,long-term metal prices and estimates of the fair value of mineral properties beyond proven and probable reserves.Metal pricing assumptions were based on consensus forecast prici

322、ng and discount rates were based on a weighted average cost of capital,adjusted for country and other risks specific to the CGU.Changes in any of the assumptions or estimates used in determining the fair values could impact the impairment analysis.20202019Gold price($/oz)$1,850-$1,550$1,400 Silver p

323、rice($/oz)$25-$21$18 Lead price($/t)$2,000-$1,975$2,100 Zinc price($/t)$2,575-$2,400$2,400 Discount rate6.0%-6.5%6.0%In advance of signing an amended investment agreement with the Hellenic Republic in early 2021,the Company determined that certain of its capital works in progress at Olympias would n

324、o longer be required and will not be completed.Accordingly,capitalized costs of$40,030 were recorded as a write-down of assets as at December 31,2020.Eldorado Gold CorporationNotes to the Consolidated Financial Statements For the years ended December 31,2020 and December 31,2019(In thousands of U.S.

325、dollars,unless otherwise stated except share and per share amounts)(21)11.Property,plant and equipment(continued)(ii)KiladaDuring the quarter ended December 31,2019,the Company completed testwork assessing metallurgical recoveries of deeper material from the pit over an extended leach cycle.A new pr

326、oduction plan was developed utilizing the leach pad for the life of the Kilada mine and no longer required the construction of a mill.As a result,the Company recorded an impairment reversal to the Kilada leach pad costs and related plant and equipment of$100,492($80,143,net of deferred tax)as at Dec

327、ember 31,2019.The resulting carrying value of the Kilada leach pad costs and related plant and equipment represents the carrying value of these assets,net of depreciation,that would have been determined had the original September 30,2018 impairment not been recognized.There was an additional impairm

328、ent loss recorded of$15,269($11,910,net of deferred tax)to write-off capitalized costs relating to the mill construction project.12.Goodwill As of December 31,2020 all goodwill relates to the Lamaque CGU.Goodwill is tested for impairment annually on December 31 and when circumstances indicate that t

329、he carrying value may not be recoverable.Impairment is determined for goodwill by assessing the recoverable amount of the CGU.The recoverable amount of the Lamaque CGU is based on the net present value of future cash flows expected to be derived from the CGU.The recoverable amount used by the Compan

330、y represents the CGUs FVLCD,a Level 3 fair value measurement,as it was determined to be higher than value in use.The significant assumptions used for determining the recoverable amount of goodwill in the Lamaque CGU are reflected in the table below.Management used judgement in determining estimates

331、and assumptions with respect to discount rates,future production levels including amounts of recoverable reserves,resources and exploration potential,operating and capital costs,long-term metal prices and estimates of the fair value of mineral properties beyond proven and probable reserves.Metal pri

332、cing assumptions were based on consensus forecast pricing,and the discount rates were based on a weighted average cost of capital,adjusted for country risk and other risks specific to the CGU.Cash flows were projected through to 2030.Changes in any of the assumptions or estimates used in determining

333、 the fair values could impact the recoverable amount of goodwill analysis.20202019Gold price($/oz)$1,850-$1,550$1,400Discount rate5%5%The estimated recoverable amount of the Lamaque CGU including goodwill exceeded its carrying amount as at December 31,2020 by approximately$269,000.Impairment would result from a decrease in the long-term gold price of$325 per ounce,or an increase in operating expen