A 75% reduction in exploration spending, combined with higher operating efficiencies at its two producing mines, helped
The turnaround is largely due to the combination of higher output and lower costs at its two producing mines: Sao Bento in Brazil and La Colorada in Mexico.
The company cranked out a total of 192,133 oz. gold last year, compared with 183,301 oz. in 1998. Total cash production costs improved 23% to US$199 from US$259 per oz.
The Sao Bento mine produced 126,581 oz. in 1999, compared with 108,572 oz. in the previous year, while operating cash costs fell to US$184 from US$250 per oz. The mine sent 540,014 tonnes of ore to the mill in 1999, with a head grade of 8.18 grams gold. Production costs totalled US$251 per oz.
Meanwhile, La Colorada produced 65,552 oz. in 1999, compared with 59,774 oz. in 1998. Between the two periods, operating cash costs dropped to US$214 from US$246 per oz. The mine sent 2.49 million tonnes of ore to the leach pad last year, the average grade being 1.05 grams gold. Total production costs were US$300 per oz.
Eldorado increased its cash position by US$3.3 million during 1999 while reducing its debt by US$5.2 million. This year, the company plans to reduce its outstanding debt by an additional US$6.7 million.
Overall, the company intends to produce 185,000 oz. gold in 2000 at an average cash cost of US$200 per oz.
Eldorado will now turn its attention to advancing its wholly owned gold projects in Turkey: Efemcukuru and Kisladag. Efemcukuru contains a total resource of 2.5 million tonnes averaging 13.71 grams gold. Drilling at Kisladag has outlined a 3.4-million-oz. resource in a gold porphyry deposit containing 73.9 million tonnes of 1.43 grams gold.
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