Costs at
Initial capital costs are now pegged at US$73.3 million, compared with US$54 million quoted in the March 2003 feasibility study. Cash operating costs have risen to US$188 from US$152 per oz. gold; total production costs have climbed to US$244 from US$203 per oz.; the after-tax net present value is now US$286 million, compared with US$255 million; and the after-tax internal rate of return is expected to be 29%, not 32.6%.
The project’s economics are being affected by the 18% VAT on capital costs and operating costs, and by the rise in price of diesel to US$1 from US75 per litre.
The company is in discussions with the Turkish government regarding mitigation of the effects of the VAT.
Plans call for the open-pit, heap-leach mine to produce 3.3 million oz. gold over a mine life of 15 years. Permitting is under way, and construction is slated to start in the third quarter of 2004.
Eldorado has $93.6 million in cash and no debt.
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