Vancouver — Despite lower production and higher costs,
Earnings amounted to US$1.1 million (or US1 per share) on revenue of US$53.4 million, compared with US$5.4 million (US7 per share) on revenue of US$63.5 million in 1999.
The company cranked out 152,436 oz. gold last year at a total cash cost of US$223 per oz., compared with 192,133 oz. in 1999 at US$199 per oz.
Gold production in the recent fourth quarter was 30,444 oz., compared with 43,931 oz. in the year-ago period. The decrease is blamed on the sale of the La Colorada mine in Mexico and on lower grades at the Sao Bento mine in Brazil.
Fourth-quarter cash costs were US$244 per oz., or 21.4% higher than year-ago costs.
The company’s hedge position provided an average realized gold price of US$303 per oz. in 2000, which resulted in a contribution margin (the difference between revenue and total cash cost) of US$80 per oz., or US$12.2 million.
Cash flow between 1999 and 2000 fell to US$4.6 million (US6 per share) from US$18.9 million (US26 per share).
Net earnings in the fourth quarter of 2000 totalled US$300,000 (nil per share), compared with a profit of US$2 million (US2 per share) in the last three months of 1999. Cash flow between the two periods slipped to US$1.7 million (US2 per share) from US$1.9 million (US3 per share).
Last year, Eldorado completed the sale of its wholly owned Mexican subsidiaries for US$500,000 and debt forgiveness of US$1.5 million. The loss on this sale amounted to US$300,000.
The company’s total cash costs for 2000 were US$233 per oz., or US$24 per oz. higher than in 1999. The increase is due to lower grade at both the Sao Bento and La Colorada mines.
Sao Bento produced 112,950 oz. gold in 2000, compared with 126,581 oz. in 1999, while cash costs at the operation increased to US$201 from US$189 per oz.
The production shortfall is attributed to increased sulphur content and reduced mill throughput. In addition, the mine experienced excessive dilution in a localized area of the mine which resulted in lower grades. The grade has since been returned to the anticipated 9.27 grams gold per tonne.
Eldorado boosted its cash position by US$2.8 million in 2000, while reducing total debt by US$6.5 million. In 2001, it plans to reduce its debt by an additional US$6.5 million.
In Turkey, the company is aiming to become a low-cost gold producer through its wholly owned Kisladag and Efemcukuru projects.
A prefeasibility study for Kisladag is expected before the second quarter, with a bankable feasibility slated for early 2002. At last report, the deposit hosted a resource of 181.4 million tonnes grading 1.14 grams. The estimate is based on 16,000 metres of percussion, core and reverse-circulation drilling. The measured and indicated portion accounts for 126 million tonnes grading 1.2 grams, equivalent to 4.8 million oz. The deposit remains open at depth.
The Efemcukuru project, 200 km to the west, hosts a proven and probable reserve of 1.9 million tonnes grading 13.14 grams, equivalent to 784,000 oz. The total resource stands at 2.5 million tonnes grading 13.71 grams, or 1.1 million contained ounces.
In 2001, Eldorado plans to produce 117,500 oz. gold at an average cash cost of US$209 per oz.
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