Vancouver-based Eldorado Gold still expects to produce its forecast 330,000 oz of gold this year, despite a weaker first quarter, the company said on Friday.
As expected, output during the first three months of the year was negatively affected by the commissioning of the sulphide ore processing facility at the company's Tanjianshan mine, in China, as well as exceptionally high rainfall at the Kisladag operation, in Turkey.
Eldorado produced 61,426 oz of gold from the two mines, compared with 67,234 oz in the first quarter of 2008.
Although cash operating costs increased to $296/oz, from $213/oz a year earlier, the company is still one of the lowest cost gold producers, said CEO Paul Wright.
Eldorado posted net income of $13.06-million for the first quarter, compared with $20.74-million in the same period of 2008.
Revenue decreased 24%, to 52.2-million, due to lower sales volumes and selling prices.
The company has completed construction at its new Vila Nova iron ore mine, in Brazil, and will complete plant commissioning this month.
However, the project will then be put on care and maintenance, “until global demand for iron ore increases and prices recover from current declines”, Eldorado said.
Engineering and procurement at the Efemcukuru gold project, in Turkey, remains on schedule, although construction slowed somewhat during the first quarter, due to the extremely wet weather.
Source: Mining Weekly
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