Costs below estimatesEldorado Gold sees Q3 costs below $300/oz
Tue Sep 15, 2009 1:13pm EDT
* Toronto-listed shares up 7 Canadian cents at C$12.52
TORONTO, Sept 15 (Reuters) - Eldorado Gold (ELD.TO) expects costs during the third quarter to come in below estimates and plans to be selective in future asset acquisitions, the company's chief executive said on Tuesday.
The Canadian company, which agreed last month to buy Australia-listed Sino Gold Mining (SGX.AX) for about $2 billion, is under no pressure to make more acquisitions and will only take on low-cost assets, CEO Paul Wright said in a presentation via webcast from the Denver Gold Forum.
"In terms of what you see us buying or developing, the simple guideline will be: Does it allow us to remain in the lower quartile of production costs," he said. "If it doesn't, frankly, you won't see us acquiring it and you won't see us developing it."
The company has forecast production of 330,000 ounces this year at cash costs per ounce of $300, and Wright said the company is on pace to beat that in the third quarter.
"We would expect to see operating costs perhaps improved (on) $300 an ounce," he said.
Eldorado's acquisition of Sino gold will sharply boost the company's presence in China.