Eldorado Gold (TSX:ELD, Stock Forum) management were all smiles today when the company announced positive financial and operational results for its Q2 2014 period and raised their 2014 guidance.
According to the news release, the company generated a net profit attributable to shareholders of $37.6 million of $0.05 per share during the quarter as well as bringing in gold revenues of $247.6 million for the same period.
The company also announced receiving a positive Environmental Impact Assessment (“EIA”) decision from the Ministry of Environment and Urbanization of Turkey concerning the Kisladag Mine expansion project as well as a 9% increase in gold production, including Olympias production from tailings treatment, of 200,551 ounces.
The quarter also saw major concrete placements beginning at Skouries along with the completion of the semi-autogenous grinding mill foundation.
Company CEO, Paul Wright, commented, “The Company has finished the second quarter ahead of our expectations and the operations are now on track to deliver production at the high end of the initial full year range our teams had established.”
He went on to illustrate, “Total gold production for the period was 200,551 ounces, and cash operating costs continue to remain in the bottom quartile of the gold industry at $489 per ounce.”
Then added, “We are especially pleased to report that the Kisladag EIA was approved during the quarter by the Turkish authorities and we plan on completing the expansion to 20 million tonnes per year by mid-2016.”
And finally concluded, “Reflecting the strong results year-to-date and our outlook for the balance of 2014, we are confidently revising our guidance for the year to production of 790,000 ounces of gold with average cash costs for commercial production of $495 per ounce and all-in sustaining cash costs of $850 per ounce.”
Eldorado Gold was in the news recently when the Vancouver-based company was highlighted in a Scotiabank Capital report as a gold sector stock set to outperform.
Shares rose 5.93% on the news to $8.57 per share.
Currently there are 716.2m outstanding shares with a market cap of $6.1 billion.