Eldorado restates earnings (April 29, 2002)

Vancouver — The discovery that a 1994 US$10-million convertible debenture should have been treated as a debt instrument has forced Eldorado Gold (ELD-T) to restate its financial statements for 2000 and 2001.

Following a review by the Eldorado’s auditor, PricewaterhouseCoopers, the debt and equity portions of the debenture were adjusted, pushing the net loss to US$4.6 million (or US5 per share) in 2001 from the previously released figures of US$3.9 million (US4 per share).

The adjustment decreases Eldorado’s 2000 profit to US$433,000 from the US$1.1 million previously stated.

Some US$9.1 million remains owing on the debenture.

Says Eldorado President Paul Wright: “To our stakeholders, this change has no impact on our cash position, revenue generation capacity, or relationship with our secured creditor.”

Last year, the company produced 102,841 oz. gold from its sole operation, the Sao Bento mine in Brazil.