Eldorado restates earnings (April 19, 2002)

Vancouver – The finding 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 2000 and 2001 financial statements.

Following a review by the Eldorado’s auditors, PricewaterhouseCoopers, the debt and equity portions of the debenture have been adjusted pushing the company’s net loss to US$4.6 million, or US$0.05 per share in 2001 from the previously released figures of US$3.9 million, or US$0.04 per share.

For 2000, the adjustment decreases Elodrado’s profit to US$433,000 from the US$1.1 million last stated.

Some US$9.15 million remain owing on the debenture.

“While this restatement is unfortunate we, at Eldorado, are committed to accurate and correct financial reporting,” says the company’s President, Paul Wright. “To our stakeholders this change has no impact on our cash position, revenue generation capacity or our relationship with our secured creditor.”

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