Vancouver – Strong bullion sales pushed Eldorado Gold (ELD-T, EGO-X) to a very successful quarter with record earnings of US$12.6 million (US4 per share) in the latest Q1 versus a loss of US$7.5 million (US2 per share) in the first three months of 2006.
The growing gold producer saw output rise to 88,780 oz. in the first quarter with total cash costs of US$233 per oz., a significant boost over the 19,111 oz. produced in Q1-2006 at total cash costs of US$429 per oz.
Eldorado realized an average gold sale price of US$647 per oz. over the quarter.
Production from the Kisladag heap leach operation in Turkey ramped up to 43,601 oz. gold for the quarter with total cash costs of US$194 per oz. The mine came on-stream in mid-2006 and is expected to output about 200,000 oz. in 2007 at a cash cost of US$215 per oz.
Eldorados new 90%-owned Tanjianshan mine in Qinghai Province, China began commercial production on February 1st and recorded gold output of 39,252 oz. over Q1 with total cash costs of US$291 per oz. The open pit operation is expected to produce about 125,000 oz. of gold in 2007 at a cash cost of US$240 per oz.
The companys Sao Bento mine in Brazil ceased ore production during the quarter but recorded output of 5,927 oz. gold at total cash costs of US$252 per oz.
Extensive drilling was underway on the companys Efemcukuru gold project in Turkey where it expects to complete a feasibility study by mid-year.
Additionally, Eldorado is working through the permitting stage on its Villa Nova iron ore project in Brazil and anticipates making a construction decision during the second quarter of 2007.
Shares of Eldorado got a modest boost on the positive production report, closing up 24 at $6.81 apiece on strong volume. With about 342-million shares outstanding the company posts a $2.2-billion market capitalization.
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