Canada’s Eldorado yearly profit lower on higher costs

Canadian gold producer Eldorado Gold Corp. (TSX:ELD) (NYSE:EGO) reported Friday a boost in fourth-quarter profit as increased revenue from gold sales and lower income tax expenses were offset by higher operating costs at mines in China.

The Vancouver-based miner said earnings attributable to shareholders for the three months ended Dec. 31 were $115 million or 16 cents per diluted share on revenue of $350 million.

Full-year profit reached $305 million or 44 cents a share, about 5% lower than the almost $319 million or 58 cents a share logged in 2011. The miner blamed increased costs at its Chinese mines and lower sales for the decrease.

Gold output climbed 13% to 190,530 ounces, while total cash costs climbed 17% to $566 an ounce, the company said. The realized gold price rose slightly to $1,69 from $1,686.

The company, with operations in Turkey, China, Greece, Romania and Brazil, plans to produce close to 705,000 to 760,000 ounces in 2013, up from 656,324 ounces in 2012.

"In addition to the continued strong earnings and production achieved in 2012, the company completed its acquisition of European Goldfields Ltd. during the year, significantly increasing our gold reserves," president and CEO Paul Wright said in Eldorado's earnings release.

"As well, the company strengthened its cash position through the issuance of senior notes totalling $600 million, proceeds of which will be used to fund a strong set of development projects in the pipeline," he added.

El Dorado forecast capital expenditures for 2013 of some $410 million, with about $200 million allocated to the expansion of its Kisladag mine in Turkey.

Image courtesy of Eldorado