This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Eldorado 2Q Profit Down On Sales Drop, Rising Cost

NEW YORK (AP) â¿¿ Shares of Eldorado Gold Corp. rose Friday after the Canadian mining company said its second-quarter net income fell 38 percent as production and sales declined while average cash operating costs rose.

For the April-through-June quarter, Eldorado on Friday reported net income of $46.6 million, or 7 cents per share. That compared with net income of $74.9 million, or 14 cents per share, a year ago.

Overall revenue fell about 3 percent to $244.2 million from $252.6 million. Gold sales also dropped, although the average price rose to $1,612 per ounce from $1,510 per ounce.

Gold production fell 13 percent, while average cash operating costs rose to $480 per ounce from $397 per ounce.

Eldorado, which is based in Vancouver, British Columbia, also attributed the decline in net income to lower earnings before taxes from gold mining operations, and higher general, administrative, exploration and tax expenses.

Eldorado reduced its 2012 forecast to 660,000 ounces of gold at average cash operating costs of $465 per ounce because of a treatment plant delay at a mine in Turkey and a delay in permitting for a mine under construction in China.

That compares with the previous full-year guidance of 730,000 ounces to 775,000 ounces and cash operating costs in a range between $430 per ounce and $450 per ounce.

Shares of Eldorado rose 46 cents, or 4.4 percent, to $10.85 in early trading. In the past 52 weeks, the price has ranged from $9.78 to $22.12 per share.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs