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Gold/Mining/Energy : Eldorado -- Ignore unavailable to you. Want to Upgrade?

To: Famularo who wrote (352)	10/21/1998 6:48:00 PM
From: Flea	Read Replies (2) \| Respond to of 527

Third quarter results Eldorado Gold Corp ELD Shares issued 72,996,872 1998-10-21 close $0.46 Wednesday Oct 21 1998 Mr. Richard Barclay reports Third Quarter Gold Production & Cost Statistics The total cash cost in the third quarter ended Sept. 30, 1998 was $255 per ounce, 18 per cent or $56 per ounce lower than the total cash cost in the same quarter of 1997. The company's strong hedge position provided an average gold price of $356 per ounce in the third quarter resulting in a contribution margin, the difference between revenue and total cash cost, of $101 per ounce, or $5.0-million. At the end of the third quarter, all of the company's production for 1998 has been hedged at an average price of $352 per ounce. Future production (years 1999-2003) of 470,000 ounces has been hedged at an average price of $364 per ounce. The company's hedge book has a current pretax market value of approximately $15-million. In the third quarter, the company reduced its total cash cost to $255 per ounce, from $260 per ounce in the second quarter of the year. Over the same period the operating cash cost was reduced by $2 per ounce, from $251 to $249 per ounce. Production decreased during the period by 1,450 ounces from 50,647 to 49,197 ounces. In Brazil, at the Sao Bento mine, operating cash costs fell to $239 per ounce down from $294 in the third quarter of 1997 and $255 per ounce in the second quarter of 1998. Operating cash costs in September were a record $233 per ounce. As of Dec. 31, 1997, Sao Bento had gold resources of 5.2 million tonnes at 10.93 grams per tonne, or 1.8 million ounces, including reserves of 3.3 million tonnes at 9.02 grams per tonne, or 957,000 ounces. In Mexico, at La Colorada mine, operating cash costs were $237 per ounce down from $310 per ounce in the third quarter of 1997 and slightly higher than $235 per ounce in the second quarter of 1998. Open pit mining began on the Gran Central deposit which will result in higher grade ore being delivered to the leach pad. Exploration is under way at La Colorada to determine the feasibility of an underground operation to complement the current mining reserves. During the third quarter, La Trinidad mine in Sinaloa state, Mexico was placed on care and maintenance due to the exhaustion of gold reserves and extreme weather conditions. In light of the shutdown of La Trinidad and unscheduled autoclave maintenance at the Sao Bento mine, the company has revised downward its 1998 gold production forecast to 185,000 ounces from 200,000 ounces. In Turkey, at the WT/Efemcukuru gold deposit, the company has embarked on a development plan, which envisages an underground mining and associated processing facility producing gold in the form of a flotation and gravity concentrate. A prefeasibility study scheduled for completion by year end 1998 is under way based on this concept. In addition, the permitting process has commenced with the initiation of an environmental impact assessment study and application for a site selection permit. As of Dec. 31, 1997, the WT/Efemcukuru deposit consists of a resource of 2.85 million tonnes grading 14.1 g/t containing approximately 1.29 million ounces of gold. PRODUCTION HIGHLIGHTS Third Third Quarter Quarter 1998 1997 Gold Production Ounces 49,197 46,085 Cash operating cost ($/oz) 249 290 Total cash cost ($/oz) 255 311 Total production cost ($/oz) 322 376 Realized price ($/oz) 356 348 PRODUCTION HIGHLIGHTS First Nine Months 1998 1997 Gold Production Ounces 143,369 142,879 Cash operating cost ($/oz) 251 280 Total cash cost ($/oz) 259 304 Total production cost ($/oz) 326 371 Realized price ($/oz) 353 358 (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com