NEW YORK (AP) 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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV