Eldorado Gold (EGO) Reports In-Line Q2 EPS

Eldorado Gold (NYSE: EGO) reported Q2 EPS of $0.01, in-line with the analyst estimate of $0.01. Revenue for the quarter came in at $107 million versus the consensus estimate of $190.99 million.

Outlook

Gold production for 2016, including discontinued operations is forecast to be 570,000 ounces of gold with average cash costs for commercial production of $595 per ounce and all-in sustaining cash costs of $930 per ounce. Previous guidance was production of 565,000 - 630,000 ounces at average cash costs of $585 to $620 per ounce and all-in sustaining cash costs of $960 to $995 per ounce. Capital spending is forecast to be $95.0 million in sustaining capital and $250.0 million in new project development capital compared with previous guidance of $105.0 million and $235.0 million respectively. The forecast for new project development capital is higher than original guidance mainly due to projected higher capital spending at Skouries following the approval of the updated technical study during the quarter and the restart of construction activities at site.

In Turkey, the Company's two operating mines continue with no disruptions and all employees are accounted for and safe. The Company is confident the country will continue to provide conditions suitable for ongoing operations and further investment.

Dividend

The Company suspended the cash payment of its semi-annual dividend payment effective the first quarter of 2016. The decision of the Board of Directors was made in view of the low gold price and the terms and conditions of the Dividend Policy. The Company continues to believe that a portion of funds from operations should be shared with investors and looks forward to resuming dividend payments in a stronger gold price environment.

For earnings history and earnings-related data on Eldorado Gold (EGO) click here.

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