There are many ways to create shareholder value - Eldorado Gold’s George Burns
Image courtesy of Eldorado Gold
(Kitco News) - Because of higher gold prices and new growth prospects, gold producers are now in a position to create shareholder value and attract new investment interest, according to one mining executive.
George Burns, CEO of Eldorado Gold
Gold companies have to prioritize delivering on their promises made to shareholders, Eldorado Gold CEO George Burns told Kitco News in an exclusive interview on the sidelines of the Xplor mining convention in Montreal, Canada. And when it comes to creating value companies can deliver in a number of ways, Burns said.
“As an industry we are have to be cautious but we also have to take advantage of the current opportunity to create value,” he said. “If you are a company that doesn’t have growth in front you then the focus should be delivering cash flow back to shareholders. If you are a company that has strong assets to grow and that is the position Eldorado is in, then I think there is an obligation to develop and sell that value.”
Burns was the keynote speaker during Xplor’s evening gala event and he spoke with a message of thanks and optimism as he saw strong potential in developing the company’s Lamaque project in Quebec’s history Val D’Or gold belt.
Burns noted that the Lamaque mine is the company’s first project in Canada. He added that he is pleased with the progress they have made this past year.
“Canada and Quebec is a very competitive market so it can be a challenge to find an undervalued asset,” he said. “We have been very successful in seeing the value in Lamaque and delivering on it.”
The mine announced commercial production in the second quarter and year-to-date has produced nearly 85,000 ounces of gold. Burns said that the company expects mine production to hit the top end of its guidance between 110,000 and 130,000 ounces this year.
When the expansion ramp up is complete, the company looks to increase annual gold production to 170,000 ounce of gold at Lamaque.
“We are just scratching the surface when it comes to Lamaque’s potential,” he said. “We think this has the potential to be a legacy mine. We are just on the top part of the deposit, but we see thickness and grade at depth that gives us the confidence that this will be a long-term asset.”
While Eldorado’s focus remains on its Lamaque project, Burns said that they want to continue to grow their presence in Quebec and Canada. He added that the company is looking at other Val D’Or projects that are within trucking distance of the company’s mill. Burns added that they also see growth potential in the Northern Ontario, B.C. and Yukon.
“We are actively looking and it’s about find the hidden value in a project,” he said.