Eldorado Gold swings to big Q4, yearly loss; cites massive impairment charge

VANCOUVER – Eldorado Gold Corp. (TSX:ELD) has swung to a big loss in the fourth quarter and for the year as a whole, citing huge impairment charges totalling more than $1.5 billion in 2015.

In the fourth-quarter, the Vancouver-based miner said the loss attributable to shareholders was $1.238 billion or $1.73 per share, as compared with a net profit of $13.9 million or two cents per share in the year-earlier quarter.

The adjusted loss was $19.3 million as compared with adjusted net earnings of $29.4 million in the 2014 period, the company said in a statement Wednesday after markets closed.

It said the main factors impacting earnings included an impairment charge net of taxes of almost $1.25 billion, along with lower gold sales volumes and prices.

For the year as a whole, the company recorded non-cash impairment charges totalling $1.049 billion in property, plant and equipment (net of deferred income tax recovery) along with $476 million in goodwill mainly related to Greece, where it has been in conflict with regulators.

The loss attributable to shareholders for the year was $1.541 billion or $2.15 per share, compared with a net profit $102.6 million or 14 cents per share for all of 2014.

Adjusted net earnings for the year were $13.2 million or two cents per share, down from $138.7 million or 19 cent per share in 2014.