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Brazil, China, Turkey & Greece - In situ: +15 million oz Gold
Message: Q1 2009 Financial and Operating Results / Conference Call
| May 7, 2009 |
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Eldorado Gold Corporation: Q1 2009 Financial and Operating Results
2009 Production and Cost Guidance Remains Intact |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 7, 2009) - Paul N. Wright, President and Chief Executive Officer of Eldorado Gold Corporation (TSX:ELD)(NYSE Amex:EGO), is pleased to report on the Company's financial and operational results for the first quarter ended March 31, 2009. "Our cash operating costs for the quarter averaged $296 per ounce and our total cash cost of $315 per ounce remains one of the lowest in the industry. Our balance sheet remains strong with $108 million in cash," said Paul Wright, President and CEO of Eldorado Gold. "Production this quarter, was, as expected influenced by the commissioning of the sulphide ore processing facility at Tanjianshan and the record high levels of precipitation at Kisladag. We remain confident in our previously stated plan to produce approximately 330,000 ounces in 2009." Q1 2009 Highlights - Produced 61,426 ounces of gold at our Tanjianshan and Kisladag mines at an average cash operating cost of $296 per ounce; - Sold 57,459 ounces of gold at a realized average price of $909 per ounce; - Reported earnings of $0.04 per share; and - Began commissioning of the sulphide ore processing facility at Tanjianshan Financial Results Our consolidated net income for the first quarter of 2009 was $13.1 million or $0.04 per share, compared with $20.7 million or $0.06 per share in the first quarter of 2008. Over the quarter, we sold 57,459 ounces of gold at an average price of $909 per ounce, compared to 73,604 ounces at an average price of $933 per ounce in the first quarter of 2008. Revenues decreased 24% compared to the same period in 2008 due to lower sales volumes and selling prices. Operating Performance Kisladag, Usak, Turkey During the quarter, we placed 2,084,714 tonnes of ore on the leach pad at an average grade of 1.34 grams of gold per tonne. We produced 46,192 ounces of gold at a cash cost of $274 per ounce, up from production of 27,228 ounces of gold in the first quarter of 2008. We produced fewer ounces of gold at Kisladag compared to the fourth quarter of 2008 as a result of higher than average precipitation, which affected screening and stacking and diluted process solutions. Following the exceptionally high rainfall in January and February, production in March and April increased to normal levels in excess of 20,000 ounces monthly. Tanjianshan, Qinghai China We produced 15,234 ounces of gold at a cash cost of $362 per ounce in the first quarter, compared to 40,006 ounces of gold in the first quarter of 2008. The decrease in gold production resulted from the commissioning of the sulphide ore processing facilities and lower head grade as lower grade transition ore from stockpiles is utilized during commissioning. During the quarter, we invested $3.8 million in capital expenditures, primarily relating to constructing and commissioning the sulphide ore processing facilities. Development Efemcukuru, Izmir Turkey We continued construction at Efemcukuru during the quarter, slowed somewhat due to the extremely wet weather. Drilling and blasting of the plant site was initiated, along with the construction of a major structure retaining wall. Engineering and procurement are on schedule including the semi-autogenous ball mills. We spent $5.5 million at Efemcukuru during the quarter. Vila Nova Iron Ore, Amapa Brazil We completed the construction and initial commissioning of our Vila Nova iron ore project. After we complete the plant commissioning in May 2009, we will put the project on care and maintenance status until global demand for iron ore increases and prices recover from current declines. Perama Hill, Thrace Greece At our Perama Hill project in Greece, we continued work on the Preliminary Environmental Impact Assessment, which we will submit to Greek authorities in the second quarter. We are also working on a National Instrument 43-101 report, which we will file in the third quarter of the year. Exploration Turkey We continued exploration at the Sayacik project, which included soil sampling, outcrop mapping and the initiation of a ground magnetic geophysical survey. We also received permits for drill sites and began drilling in April. At Efemcukuru, we drilled six holes totaling 1,210 meters in the north ore shoot to test along strike and down dip extents in the ore zone. Brazil Exploration in Brazil consisted of diamond drilling at the Tocantinzinho project. We drilled more than 4,200 meters in 16 diamond drill holes, including 1,500 meters for metallurgical samples. China At Tanjianshan, we started a rotary air blast program, consisting of 41 holes, to test the area covered by alluvium between the QLT and JLG deposits. Corporate Effective May 15, 2009 Dr. Peter Lewis, P.Geo. has been appointed as Vice-President, Exploration. Dr. Lewis obtained his undergraduate degree in Geological Sciences from Stanford University and his M.Sc. and Ph.D. from the University of British Columbia, and has worked as a consulting structural geologist on ore deposits throughout the world since 1993. Eldorado is a gold producing, exploration and development company actively growing businesses in Brazil China, Greece, and Turkey and surrounding regions. We are one of the lowest cost pure gold producers. With our international expertise in mining, finance and project development, together with highly skilled and dedicated staff, we believe that Eldorado is well positioned to grow in value as we create and pursue new opportunities. ON BEHALF OF ELDORADO GOLD CORPORATION Paul N. Wright, President and Chief Executive Officer Eldorado will host a conference call Friday, May 8, 2009 to discuss the 2009 First Quarter Financial Results at 11:30 a.m. EDT (8:30 a.m. PDT). You may participate in the conference call by dialing 416-340-2216 in Toronto or 1-866-226-1792 toll free in North America and asking for the Eldorado Conference Call with Chairperson: Paul Wright, President and CEO of Eldorado Gold. The call will be available on Eldorado's website, www.eldoradogold.com. A replay of the call will be available until May 15, 2009 by dialing 416-695-5800 in Toronto or 1-800-408-3053 free in North America and entering the Pass code: 7106314. |
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