Eldorado cuts production guidance at Turkey mine

Kisladag mine. Photo by Eldorado.

Eldorado Gold Corp. (TSX:ELD)(NYSE:EGO) announced today that it was cutting its guidance for gold production at Kisladag, its flagship gold mine in Turkey.

According to a press release, gold recovery from the leach pad at the operation has lagged internal expectations. Thus, the company believes that production this year would be 170,000 to 180,000 ounces at cash costs of $500 to $550 per ounce.

Eldorado also placed its guidance for 2018 and beyond under review. The revised guidance was down from an estimate of 180,000 to 210,000 ounces in June and the company’s original 2017 guidance for 230,000 to 245,000 ounces.

Following the news, the company’s shares fell more than 10 per cent. In late-morning trading on the Toronto Stock Exchange, the stock was down 49 cents or about 18 per cent at $2.24.

Despite the not so positive outlook, the Canadian miner ended the quarter with a cash and cash equivalent $752.113 million or roughly $0.77 per share.