Make Kitco Your Homepage

Eldorado: 2Q Gold Output Dips But On Track to Meet Guidance

Kitco News

(Kitco News) - Eldorado Gold Corp. (NYSE: EGO; TSX: ELD) produced 91,803 ounces of gold in the second quarter, which the company said leaves it on track for full-year guidance although the total is down from 99,105 in the same quarter a year ago.

Year-to-date output through the end of the second quarter was 174,780 ounces, which officials said leaves Eldorado on track to meet annual guidance of 390,000 to 420,000 ounces.

The first quarter of commercial operations at the Lamaque mine resulted in 33,140 ounces. Commercial operations were declared at Lamaque on March 31.

Production at Olympias was lower than plan due to limited headings underground as a result of slower-than-anticipated capital development and a backlog of stopes to be filled, Eldorado said. This reduced the tonnage fed to the processing plant. However, a new underground contractor was mobilized during the quarter, and capital development rates are expected to increase in the second half. Also, process improvements are being implemented in the paste backfill plant, which will allow for an increased rate of stope filling, officials said.

“The mill continues to perform to plan and recoveries are in line with expectations,” Eldorado said.

Production is expected to increase at Kisladag in the second half of 2019, Eldorado said.  Mining and stacking of ore resumed at the mine as the second quarter began.

Meanwhile, Eldorado announced a new share buyback program. The company said the Toronto Stock Exchange has accepted the company’s notice for a normal course issuer bid in which Eldorado may purchase up to 1.45 million of its common shares, representing approximately 0.9% of the total of 1.59 million outstanding shares.

Purchases will be made at prevailing market prices starting Thursday and ending July 10, 2020. Eldorado already purchased 1.74 million shares for the period from mid-June 2018 to mid-June 2019.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.