ENP Newswire -
Release date- 21022014 -
Eldorado reported record gold production of 721,201 ounces at an average cash operating cost1 of
Adjusted net earnings1 for the year ended
'The Company achieved record production of 721,201 ounces of gold in 2013 at
Key Consolidated Financial Information
Loss attributable to shareholders of the Company was
Dividends paid were
Key Performance Measures
Gold production of 721,201 ounces, including pre-commercial production from Olympias (2012: 656,324 ounces) increased 10% year over year.
Total cash costs averaged
Gross profit from gold mining operations of
Adjusted net earnings of
Cash generated from operating activities before changes in non-cash working capital was
Year end 2013 Proven and Probable gold reserves of 27.7 million ounces and Measured and Indicated gold resources of 36.4 million ounces.
Throughout this release we use cash operating cost per ounce, total cash costs per ounce, gross profit from gold mining operations, adjusted net earnings, and cash flow from operating activities before changes in non-cash working capital as additional measures of Company performance. These are non-IFRS measures. Please see page 11 of our MD&A for an explanation and discussion of these non-IFRS measures.
As a result of the impairment testing we performed at the end of
The Company assumed gold metal prices of
Review of Annual Financial Results
Gold sales volumes increased 16%, while total cash costs per ounce remained steady year over year. Gross profit from gold mining operations of
The major items contributing to the loss attributable to shareholders of the Company were: 1) the
Other factors that adversely impacted earnings year over year were an increase in interest and financing costs of
Review of Quarterly Results
Loss attributable to shareholders of the Company for the quarter ended
Kisladag placed 5% more total tonnes on the leach pad compensating for a lower head grade than 2012. Cash operating costs were slightly higher year over year as a result of the increased volume of material placed on the pad, partly offset by lower Turkish lira denominated operating costs as a result of a decline in the value of the Turkish lira compared with the US dollar. Capital expenditures at Kisladag in 2013 included costs related to the deferred Phase IV Mine Expansion project, capitalised waste stripping and other construction projects.
Gold production at Efemcukuru increased over 2012 as the mine improved both the tailings processing and paste fill systems subsequent to the commencement of commercial production in
Gold production at Tanjianshan in 2013 was 8% lower than in 2012 mainly as a result of lower average treated head grade and lower additional flotation concentrate feed. Cash operating costs per ounce in 2013 were unchanged from the previous year mainly due to cost savings realised through process plant upgrades. Capital expenditures for the year included lining of tailings dam, process plant upgrades, and capitalized exploration costs as well as other sustaining capital.
Gold production at Jinfeng in 2013 was 14% higher than in 2012 mainly as a result of the resumption of ore mining in the open pit from
Cash operating costs per ounce were 10% lower in 2013 as compared to 2012 mainly due to an increase in the number of ounces produced. Capital expenditures for the year included capitalized underground development, process plant upgrades, tailings dam uplifts, and tailings thickening projects.
Gold production at
Cash operating costs per ounce were 13% higher in 2013 as a result of the decrease in head grade, and an increase in costs related to increased backfill and secondary development rates. Capital expenditures for the year included capitalized underground development, construction of a mobile maintenance workshop, acquisition of underground mobile equipment, upgrade of underground service facilities, capitalized exploration and construction of a tailing dam lift.
Lead/zinc concentrate production at
Annual Review - Development Projects
Kisladag Phase IV Mine Expansion
The full Kisladag expansion was deferred during 2013 pending improvement in metal prices. The capital programme required to replace the existing mining fleet with larger loading and haulage equipment and electrification of the mine continued during the year. By year end most of the upgraded fleet was delivered and placed into operation.
In 2013, the Olympias plant reprocessed 552,557 tonnes of tailings at a grade of 3.32 grams per tonne. Approximately 26,444 payable ounces of gold in concentrate were produced during the year and were treated as pre-commercial production for financial reporting purposes.
New development and underground refurbishment continued during 2013. Underground mining on Phase II is projected to begin in 2016. During 2013, approximately 1,076 metres of underground drifts were rehabilitated and 3,034 metres of new drifts were completed, including approximately 800 metres of advance on the main Stratoni-Olympias decline to the 1.4 kilometre mark, representing 18% completion of the planned 8.0 kilometre decline. Capital costs incurred in 2013 were
During 2013 a total of
The year-end updated mineral resource for Certej resulted in an overall increase in Measured and Indicated ounces of 10%. A prefeasibility study was initiated to redefine the scope of the operation as well as address results from ongoing metallurgical test work aimed at maximizing gold recoveries. During 2013 a total of
During 2013 a total of
Eastern Dragon was placed on care and maintenance during 2013 pending resolution of permitting issues. Site management worked with the local authorities to maintain local permits in good standing. Work continued on preparing the necessary paperwork to submit to the
During 2013 a total of
Annual Review - Exploration
A total of
Brownfields exploration programs were completed at each of our three operating mines in
At Jinfeng, underground resource drilling focused on step-outs along the known major mineralized fault zones, gaps in the existing resource model, and new conceptual targets. The exploration drilling was successful in identifying mineralized splays sub-parallel to existing resources.
Limited drilling was completed on adjacent exploration licenses. The Company divested its interests in the Jingdu and Jinluo Exploration joint ventures, and in the Gaolu exploration license.
In the Chalkidiki district, 12,000 metres of drilling was completed at the
Exploration activities in the Certej district focused on over 40,000 metres of infill and step-out drilling of the Certej deposit. Drilling programs were also completed on the Certej North prospect, and at the Muncel and Brad exploration license areas.
Reserves and Resources
Reserves at the end of 2013 totalled 27.7 million contained ounces of gold at an average grade of 1.17 g/t, compared with 25.8 million ounces of gold at an average grade of 1.14 g/t at the end of 2012.
Measured and Indicated resources at the end of 2013 totalled 36.4 million contained ounces of gold at an average grade of 1.04 g/t, compared with 36.3 million ounces of gold at an average grade of 1.02 g/t at the end of 2012.
A gold price of
Eldorado will host a conference call on
The call will be available on Eldorado's website www.eldoradogold.com. A replay of the call will be available until
Certain of the statements made herein may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as 'plans', 'expects', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates', or 'believes' or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved.
Forward-looking statements or information herein include, but are not limited, to statements or information with respect to the Company's 2013 Year-End and Fourth Quarter Financial and Operating Results.
Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.
We have made certain assumptions about the forward-looking statements and information, including assumptions about the legal restrictions regarding the payment of dividends by the Company; assumptions about the price of gold; anticipated costs and expenditures; estimated production, mineral reserves and metallurgical recoveries; financial position, reserves and resources and gold production and the ability to achieve our goals. Although our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statements or information will prove to be accurate.
Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information.
These risks, uncertainties and other factors include, among others, the following: gold price volatility; risks of not meeting production and cost targets; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; mining operational and development risk; litigation risks; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment and operating in foreign countries; currency fluctuations; speculative nature of gold exploration; global economic climate; dilution; share price volatility; competition; loss of key employees; additional funding requirements and defective title to mineral claims or property, as well as those factors discussed in the sections entitled 'Forward-Looking Statements' and 'Risk Factors' in the Company's Annual Information Form & Form 40-F dated
There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward- looking statements and information continually as conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in
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