Vancouver — Lower gold production and higher costs pushed Eldorado Gold (ELD-T) into the red during the first quarter of 2001.
Having managed to squeak out a small profit in 2000, the junior tabled a loss of US$900,000 (or 1 per share) on revenue of US$9.3 million in the recent quarter, compared with earnings of US$1 million (1 per share) on revenue of US$14.6 million in the first quarter of 1999.
Eldorado’s hedge position provided an average gold price of US$302 per oz. for the year, resulting in a contribution margin of US$74 per oz., or US$2.1 million. Cash flow from operations totalled US$3.4 million (4 per share), compared with a loss of US$1 million (1 per share) a year ago.
The company cranked out 28,086 oz. gold in the quarter at a total cash cost of US$228 per oz., compared with 43,338 oz. at US$207 per oz. a year earlier.
Having sold the La Colorada mine last November, Eldorado is left with the Sao Bento operation (in the Brazilian state of Minas Gerais) as its only producer.
Mine production fell to 28,086 oz. during the recent quarter, down from 31,143 oz. in the corresponding period of last year. Sao Bento averaged 9.25 grams gold per tonne, a significant increase from the 7.48 grams gold averaged in the first quarter of 2000.
Eldorado is shifting its focus to Turkey, where it is aiming to become a low-cost gold producer through its wholly owned Kisladag and Efemcukuru advanced gold projects.
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