Glamis bid pushes Eldorado into red

Legal costs associated with defending the failed takeover attempt by Glamis Gold helped push Eldorado Gold (TSE) into the red for 1995.

The company recorded a loss of US$2.4 million for the year after including a US$1.8-million charge related to the takeover defence. In 1994, Elorado reported net earnings of US$1.06 million.

Gold production in 1995 totalled 31,128 oz. gold at an average cash cost of US$209 per oz., compared with the 19,900 oz. produced in 1994 at a cash cost of US$193 per oz.

Higher production from the Colorada open-pit, heap-leach mine in Mexico, combined with the recent acquisition of mining assets from Gencor Group of South Africa, is expected to boost gold production even higher. Output is projected at 165,000 oz. for this year, 185,000 oz. for 1997 and 250,000 oz.

for 1998. Cash costs are expected to remain in the US$231-per-oz. range.