Vancouver — With $15.4 million in bank debt and output continuing to slide at its Sao Bento mine in Brazil,
The comparative loss in the third quarter of 2000 was US$300,000 (nil per share).
Sao Bento produced 25,101 oz. during the recent period, compared with 28,665 oz. a year earlier.
Last year, Eldorado’s La Colorada mine in Mexico contributed 11,198 oz. during the quarter, though it has since closed.
Situated in Minas Gerais state, Sao Bento averaged 9.16 grams gold per tonne in the third quarter, a significant increase from the 8.31 grams reported for the year-ago period. Total cash costs rose to US$211 from US$201 per oz., owing to an adjustment in Eldorado’s hedge position and to a 15% reduction in gold production following government-imposed energy rationing.
In early June, Sao Bento’s electrical power was reduced by 20%. This, combined with scheduled repairs to the autoclave, has forced the junior to lower projected gold production for 2001 to 94,000 from 117,000 oz. Operating costs are now expected to rise to US$225 from US$209 per oz.
Based on the revised forecast, Eldorado closed out its gold hedging contracts maturing after 2001, as well as all Brazilian currency hedging contracts. The proceeds, totalling US$1.2 million, will be used to reduce debt.
Meanwhile, Eldorado continues to shift its focus to Turkey, where it intends to become a low-cost gold producer through its wholly owned Kisladag and Efemcukuru projects.
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