Alex,......Eldorado Gold six-month results...they are SUPER
Eldorado Gold Corp -
Eldorado Gold six-month results
Eldorado Gold Corp
ELD
Shares issued 73,261,225
1999-07-22 close $0.55
Friday Jul 23 1999
Mr. Hugh Morris reports
All figures in U.S. dollars. Eldorado Gold had net earnings of $2.7-million or four
cents per common share for the six months ended June 30, 1999, compared with
a net loss of $6.9-million or 10 cents per common share in the comparable six
months ended June 30, 1998. In Canadian currency this equates to net earnings of
$4.0-million or five cents common share for the period.
Operating margins have continued to improve. The corporation produced 98,553
ounces of gold during the six months ended June 30, 1999, (1998 -- 94,172
ounces) at a cash cost of $190 per ounce (1998 -- $253) and realized a gold
price of $316 (1998 -- $350) compared with a spot price of $280 (1998 --
$297). The reduction in costs was due to further operating improvement at the
Sao Bento mine, the devaluation of the Brazilian currency, and to a period of
higher grade ore at the La Colorada mine.
The company has further reduced its bank debt by $5-million, to $30-million and
continued debt reduction remains a priority. The company's net debt (that is cash
minus total debt) has been reduced from $38,851-million in November, 1998, to
$26,226-million. At the same time, debt repayments have been rescheduled so
that the bank loan will be paid off by Dec. 31, 2003.
Eldorado unwound gold hedges to a value of $5-million in this quarter, and used
the proceeds to pay down debt. The company now has 510,000 ounces hedged,
representing 100 per cent of production for the next three years, at an average
price of $297 per ounce. The hedged ounces are all in instruments that enable
them to be rolled over, should spot prices exceed the strike price.
The company conducts an active currency hedging program for Brazilian currency
(Real). At present, all Real denominated operating costs are fully hedged for six
months, and the company has the capacity to extend this for a further six months if
appropriate.
The company believes that its restructuring and cost containment achievements in
1997 and 1998 will enable Eldorado to continue in a stable manner for the
medium term, even with possible continuing weakness or decline in the world's
gold markets, and that it can continue its debt reduction program. In addition, the
company is committed to increasing its reserves through judiciously selected
exploration and development on its key projects at Sao Bento and in Turkey.
CONSOLIDATED STATEMENT OF OPERATIONS
Three months ended June 30
1999
Revenue
Gold sales $ 16,319
Interest and
other income 1,476
---------
17,795
---------
Expenses
Operating costs 10,870
Depletion,
depreciation and
amortization 3,413
General and
administrative 783
Exploration
expense 100
Interest and
financing costs 737
Reclamation 233
---------
16,136
---------
Profit (loss)
before the
undernoted items 1,659
---------
La Trinidad
closure costs (207)
Investment losses -
Reorganization costs -
Taxes (269)
---------
Net income (loss)
for the period $ 1,183
=========
Income (loss)
per share 2 cents
CONSOLIDATED STATEMENT OF OPERATIONS
Six months ended June 30
1999
Revenue
Gold sales $ 31,166 $ 33,047
Interest and
other income 1,687 210
--------- ---------
32,853 33,257
--------- ---------
Expenses
Operating costs 19,377 24,418
Depletion,
depreciation and
amortization 6,565 6,714
General and
administrative 1,341 2,492
Exploration
expense 172 451
Interest and
financing costs 1,506 1,801
Reclamation 446 568
--------- ---------
29,407 36,444
--------- ---------
Profit (loss)
before the
undernoted items 3,446 (3,187)
--------- ---------
La Trinidad
closure costs (335) -
Investment losses - (1,373)
Reorganization costs - (2,048)
Taxes (458) (318)
--------- ---------
Net income (loss)
for the period $ 2,653 $ (6,926)
========= =========
Income (loss)
per share 4 cents (10 cents)
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com |
