Eldorado stays in black

Vancouver — With production back to normal at the Sao Bento mine in Brazil, Eldorado Gold (ELD-T) managed to turn a solid profit in the third quarter.

Earnings for the period totalled US$2 million (or US1 per share) on revenue of US$9.7 million, compared with a loss of US$1 million (US$1 per share) on revenue of US$8 million in the third quarter of 2002.

For the first nine months of the year, Eldorado posted a profit of US$4.2 million (3 per share) on revenue of US$24.9 million, compared with a year-earlier loss of US$3.3 million (3 per share) on revenue of US$26.1 million.

Sao Bento produced 28,469 oz. in the recent 3-month period, compared with 27,702 oz. a year earlier. The mine should crank out 105,000 oz. for the year at a cash cost of US$185 per oz. Underground drilling is under way in an attempt to upgrade and extend the mine’s resource base.

Cash flow from all the company’s operations amounted to US$4.4 million in the third quarter and US$6.1 million over the nine months, down from US$4.5 million and US$9 million, respectively, a year earlier.

Eldorado realized a gold price of US$307 per oz. in the quarter, compared with US$296 in the corresponding three months of 2001.

Principal payments of US$600,000 during the quarter reduced the company’s outstanding bank debt to US$2.2 million. Eldorado is currently delivering into the remaining hedge book, which, at the end of the quarter, was 10,972 oz. The company intends to liquidate its gold hedge position before year-end.

At Eldorado’s Kisladag project in Turkey, a feasibility study is under way and should be completed early next year. Results from 4,600 metres of infill reverse-circulation drilling are being assessed to update the resource and reserve figures, and metallurgical tests and an environmental impact assessment are in progress.

Meanwhile, the company says it intends to apply for a listing on the American Stock Exchange.