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The Globe and Mail

Eldorado Gold profit jumps on higher prices

Gold bars are seen in this file photo.

Petr David Josek/AP

Eldorado Gold Corp. said Friday that profits nearly doubled in the fourth quarter as the company benefited from higher prices.

The Vancouver-based firm posted earnings attributable to shareholders of $88.8-million, or 16 cents per share, an increase from $45.2-million, or eight cents per share, a year earlier.

Revenues grew to $303.3-million from $213-million.

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Production costs rose 30 per cent to $22-million as it booked a full quarter of expenses at its Vila Nova operation, as well as higher gold sales volumes and production taxes at other locations.

Eldorado has operations in Brazil, China, Greece, and Turkey and surrounding regions.

On Tuesday, shareholders of both Eldorado and European Goldfields Ltd. approved a friendly $2.5-billion takeover offer made by Eldorado.

Nearly 98 per cent of European Goldfields shares were voted in approval of the deal, while 96 per cent of Eldorado shares were voted in favour.

Under the takeover deal, European Goldfields shareholders will receive 0.85 of an Eldorado share and a tiny cash amount — one hundredth of a cent per share — for each share.

European Goldfields owns 95 per cent of a lead, zinc and silver mine in Greece, and also has interests in Romania.

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