https://www.engineeringnews.co.za

Eldorado falls to new 52-week low as Q4 results, technical studies fail to impress

23rd March 2018

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

Font size: - +

VANCOUVER (miningweekly.com) – Canadian gold producer Eldorado Gold has slipped to a fresh 52-week low on both the TSX and NYSE on Thursday after it reported disappointing fourth-quarter financial results and a 10% fall in overall gold reserves.

Vancouver-based Eldorado reported a net loss of $20.7-million, or $0.03 a share, which came in below analyst forecasts calling for break-even results.

Excluding special items related to asset writedowns, the company reported an adjusted loss of $400 000 during the quarter, a sharp decline from the $2.9-million it earned in the comparable period a year earlier. This was mainly owing to a 20% year-on-year decline in gold sales and 25% higher costs, which came in above the company's guidance range.

Gold output was up marginally during the quarter at 83 886 oz.

Revenue for the period fell 12% year-on-year to $101.4-million.

Eldorado reported a 10% drop in its global gold reserves, which is mainly attributable to a decision to change the struggling Kisladag operation, in Turkey, from a heap leach asset to a mill processing option, with resulting higher processing costs and higher recoveries translating to improved cash flow and returns.

The company advised that while mineable reserves at Kisladag declined by 1.7-million ounces, incorporating expected higher mill recoveries, the forecast recoverable ounces dropped by only 400 000 oz. Further, lower reserves at Olympias, in Greece, are the result of increases in forecast operating costs and mining dilution, based on data seen since start-up.

Eldorado ended 2017 with proven and probable gold reserves of 392-million tonnes grading 1.37 g/t gold, containing 17.3-million ounces, based on an assumed gold price of $1 200/oz.

Eldorado has been in a tailspin for the past 12 months, losing more than 70% of its share value as it struggles with an underperforming Kisladag operation, assimilating the C$590-million acquisition of project development junior Integra Resources and an ongoing dispute with the Greek government, where it has one operating mine and two advanced development projects in progress.

Eldorado closed down 12% on the NYSE on Thursday at a new one-year low of $0.92 a share.

Edited by Creamer Media Reporter

Comments

Showroom

Flameblock
Flameblock

FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:1.362 1.463s - 156pq - 2rq
Subscribe Now