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Eldorado Gold Reports Loss For Fourth Quarter

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Eldorado Gold Corp. reports a fourth-quarter net loss of $20.7 million, or 3 cents per share, which was narrower than a loss of $32.5 million, or a nickel, in a year-ago period. The adjusted loss came in at $0.4 million, compared to fourth-quarter 2016 adjusted earnings of $2.9 million, the company says. “The main factors that impacted adjusted earnings for the fourth quarter year-over-year were lower sales volumes partly offset by higher gold prices,” Eldorado said. Output in the October-December period was 83,886 ounces, up slightly from 82,804 in the same period a year ago. However, the ounces sold fell to 67,367 from 84,682. For full-year 2017, the company lists a net loss of $9.9 million, or a penny per share, compared to $344.2 million, or 48 cents, in 2016. Adjusted net earnings were $15.2 million, or 2 cents, compared to adjusted earnings of $47.4 million, or 7 cents, in 2016. Full-year gold production of 292,971 ounces, including Olympias pre-commercial production and 7,061 ounces from a bulk sample at the newly acquired Lamaque project in Quebec, was down from 312,299 ounces from continuing operations in 2016. “Pending the results of the technical reports and potential subsequent capital requirements, the company suspended cash payment of its semiannual dividend payment effective the first quarter of 2018,” Eldorado says. In 2018, Eldorado expects to produce 290,000 to 330,000 ounces of gold, including pre-commercial output from Lamaque. The company says it ended 2017 with proven and probable gold reserves of 392 million tonnes at 1.37 grams per tonne gold containing 17.3 million ounces. “The 10% overall reduction in reserve ounces was primarily attributable to the planned conversion of Kisladag from a heap-leach asset to a mill-processing option, with resulting higher processing costs and higher recoveries,” Eldorado says. “While mineable reserves at Kisladag declined by 1.7 million ounces, incorporating expected higher mill recoveries, the forecast recoverable ounces dropped by only 400,000 ounces.”

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