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Eldorado Gold profit falls on costs

Photos of Eldorado Gold's Säo Bento Mine in Brazil.

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Eldorado Gold Corp. is reporting a second-quarter net income attributable to shareholders of $46.6-million, or 7 cents per share, compared to $74.9-million or 14 cents per share in the same period last year.

Revenue from metal sales was $244-million for the quarter, down from $252.5-million year over year.

Revenues from gold sales was $214.2-million, down $30.7-million or 13 per cent from the second quarter of 2011 "due to lower sales volumes partially offset by higher prices."

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The company says profit was impacted by lower earnings before taxes from gold mining operations as well as higher general and administrative expense, exploration expense and tax expense.

Eldorado also cut its dividend to six cents per common share from nine cents.

The Vancouver-based miner revised its production guidance for this year to 660,000 ounces of gold at average cash operating costs of $465 per ounce.

The revision is due to delayed treatment of Efemcukuru concentrate at the Kisladag mine and the delayed completion of construction of the Eastern Dragon project.

In June, Eldorado announced several changes in its executive offices, including naming chief operating officer Norm Pitcher as company president.

Mr. Pitcher's role as chief operating officer is being taken over by Paul Skayman, senior vice-president, operations.

In February, the company closed a $2.5-billion takeover of European Goldfields Ltd., which owned 95 per cent of a lead, zinc and silver mine in Greece, and also has interests in Romania.

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Eldorado is a gold producing, exploration and development company with operations in Turkey, China, Brazil, Greece and Romania.

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