Vancouver — Strong bullion sales made for a successful first quarter for Eldorado Gold (ELD-T, EGO-X), lifting earnings to a record US$12.6 million (US4 per share) versus a loss of US$7.5 million (US2 per share) in the first three months of 2006.
The growing gold producer saw output rise to 88,780 oz. in the first quarter with total cash costs of US$233 per oz., a significant boost over the 19,111 oz. produced in the same period last year at total cash costs of US$429 per oz.
Eldorado realized an average gold sale price of US$647 per oz. over the quarter.
Production from the company’s Kisladag heap-leach operation, in Turkey, ramped up to 43,601 oz. gold during the period, with total cash costs of US$194 per oz. The mine started production in mid-2006 and is expected to produce about 200,000 oz. gold in 2007 at a cash cost of US$215 per oz.
Eldorado’s new 90%-owned Tanjianshan mine, in Qinghai province, China, began commercial production on Feb. 1, pouring 39,252 oz. gold in the first quarter with total cash costs of US$291 per oz. The open-pit operation is expected to produce about 125,000 oz. gold in 2007 at a cash cost of US$240 per oz.
The company stopped mining ore at the Sao Bento mine, in Brazil, during the quarter, but recorded production of 5,927 oz. gold at total cash costs of US$252 per oz.
Extensive drilling was under way on the company’s Efemcukuru gold project, in Turkey, where it expects to complete a feasibility study by mid-year.
Elsewhere, Eldorado is working through the permitting stage on its Villa Nova iron ore project in Brazil and anticipates making a construction decision during the second quarter of 2007.
Shares of Eldorado got a modest boost on the positive production report, closing up 24 at $6.81 apiece on strong volume. With about 342 million shares outstanding, the company posts a $2.2-billion market capitalization.
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