Eldorado Gold Q2 Profit Falls - Quick Facts

(RTTNews) - Eldorado Gold Corp. (EGO, ELD.TO) reported that its second-quarter profit attributable to shareholders of the company declined to $43.3 million or $0.06 per share from $46.6 million or $0.07 per share for the same quarter in 2012. Analysts polled by Thomson Reuters expected the company to report earnings of $0.08 per share for the quarter. Analysts' estimates typically exclude special items.

Metal sales for the quarter increased to $266.93 million from $244.19 million in the prior year quarter. Three analysts had consensus revenue estimate of $277.46 million for the quarter.

Higher gold sales volumes offset lower gold prices resulting in higher revenues from gold mining operations year over year. The increase year over year in gold revenues was offset by higher production costs and depreciation, depletion and amortization from gold mining operations as a result of higher sales volumes.

On August 1, 2013, the Company declared that it will pay an eligible dividend of Cdn$0.05 per Common Share on August 26, 2013 to the holders of the Company's outstanding Common Shares as of the close of business on the record date of August 15, 2013.

The company reported Gold production of 183,971 ounces at an average cash operating cost of $478 per ounce, compared to 140,694 ounces at $480 per ounce last year. The company posted Gold sales of 176,260 ounces at an average gold price of $1,382 per ounce, compared to 132,919 ounces at an average gold price of $1,612 last year.

The company said,in light of the recent significant decline in gold price, it has modified its operating plan for 2013. Exploration spending for 2013 has been reduced from $98.5 million to $51.0 million with an emphasis on mine site and brownfields exploration. Capital spending has been revised down from $670.0 million to $430.0 million.

The full Kisladag expansion as envisaged will be deferred pending improvement in metal prices, while the initial production from Skouries, Perama Hill and Certej is projected to be delayed by one year. Gold production for 2013 is forecast to be 745,000 ounces of gold with cash costs of $520/oz. This is in line with original guidance provided of 705,000 - 760,000 ounces at cash costs of $515-530/oz.