TORONTO (miningweekly.com) – TSX- and NYSE-listed Eldorado Gold this week reported a 45% decline in third-quarter net profit, as it booked an inventory write-down at the Vila Nova iron-ore mine, in northern Brazil.
The Vancouver-based company, which has operations in Brazil, China, Greece, Turkey and Romania, noted a net profit of $19.8-million, or $0.03 a share, for the three months ended September 30, down 46% from $36.4-million, or $0.05 a share, in the comparable quarter last year.
Eldorado booked a noncash $7.6-million iron-ore inventory write-down owing to low iron-ore prices. The company had decided to place the mine on care and maintenance pending a review of options to return it to profitability.
On an adjusted basis, the company recorded earnings of $36.1-million, or 0.05 a share, down from 54.4-million, or $0.08 a share, in the third quarter of 2013.
Wall Street analysts had, on average, expected adjusted earnings of $0.06 a share.
Revenues fell 8% to $263.5-million, down from $287.3-million a year earlier, as gold sales were down 9% year-on-year. The company sold 189 321 oz of the yellow metal in the third quarter, down 5% from 199 117 oz in the comparable period.
Its average realised gold price was $1 274/oz, down from $1 338/oz. All-in sustaining cash costs came in at $735/oz, down 3% in the 2013 third quarter.