By Robb M. Stewart
Eldorado Gold rose strongly Friday after the Canadian miner narrowed its loss in the latest quarter thanks to increased revenue with increased sales volumes and a higher gold price.
In morning trading, the shares were 11% higher at C$15.16 on the Toronto Stock Exchange, widening the advance so far this year to 34%. In New York, the stock was ahead 11% at $11.01.
Eldorado, which has operations in Turkey, Canada, Greece and Romania, narrowed its third-quarter loss to $8 million, or 4 cents a share, from a year-earlier loss of $54.6 million, or 30 cents.
On an adjusted basis, the per-share earnings came in at 17 cents, beating the 4 cents mean estimate of analysts polled by FactSet.
Revenue was up 13% at $245.3 million. The averaged realized price for gold was 11% higher than a year earlier at $1,879 an ounce.
Production for the three months rose to 121,030 ounces of gold from 118,791 ounces in the same period last year, with production costs down for the quarter thanks largely to lower transport and refining charges and a reduction in the cost of key consumables such as electricity and diesel in Turkey.
For the full year, the company cut the top end of its production target to between as much as 495,000 ounces from between 475,000 and 515,000 ounces previously and lowered the forecast range for total operating costs to $830 to $880 an ounce sold from $860 to $960.
Write to Robb M. Stewart at [email protected]
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