18.9 C
Belgrade
Supported byspot_img
spot_img

Eldorado Gold risks missing 2017 guidance over issues with Turkish mine

Member of Europium Groupspot_img
Supported byspot_img

Canada’s Eldorado Gold may miss its 2017 guidance by as much as 25% due to leaching problems at its Kışladağ mine in Turkey, one of its largest operations.

The Vancouver-based company said late Tuesday that Kışladağ is now expected to produce 180,000-210,000 ounces of gold this year. Incorporating that revised guidance, the miner’s group expected output would be 315,000-365,000 ounces, down from the original 365,000-400,000 ounces forecast.

Shares in the company were hit hard by the news. They fell 4.9% Wednesday to Cdn$3.53 in mid-morning trading in Toronto and were last trading 3.9% lower in New York to $2.71. Other larger gold miners were also falling today.

Supported by

“While Kisladag’s decrease in production for the year is disappointing, our team has implemented a strategy to return our cornerstone asset to normalized production levels,” the company’s President and CEO, George Burns, said in a statement.

He noted that the ounces the company may miss in 2017 are expected to be produced in the first half of 2018.

As a result, Eldorado Gold upped its outlook for next year and now expects to generate about 320,000 to 335,000 ounces at cash costs of $425 to 475 per ounce, compared to previous guidance of 285,000 ounces.

The potential miss in the current fiscal year could have consequences on the company’s ongoing acquisition of Integra Gold, as the fellow Canadian miner’s shareholders are set to vote next week whether they approve the takeover.

Eldorado has gone through major shifts in the past year, including the sale of all its Chinese assets in 2016 and a change of leadership with the appointment of one of Goldcorp’s top executives as CEO.

Early this year, the company announced it had indefinitely shelved expansion plans for its Kışladağ mine, Turkey’s largest gold operation.

It also deferred a decision on developing a project in Brazil, citing low gold prices.

Eldorado is set to release results for the second quarter at the end of July.

Source: mining

Supported byElevatePR Digital

Related News

Progress at Plymouth’s tungsten mine: Final permit secured for production restart

Plymouth’s potential tungsten mine is on track to achieve significant production levels following the approval to commence operations. Tungsten West Plc has secured a...

Elementos pursues acquisition of stake in Iberian smelting for European tin market expansion

Elementos, a tin exploration and development firm, has initiated a non-binding term sheet to potentially acquire up to a 50% interest in Iberian Smelting...

EU corporate sustainability directive: Implications for global supply chains and Africa’s mining communities

On 24 May, the European Union enacted the Corporate Sustainability Due Diligence Directive (CSDDD), a landmark legislation requiring large businesses to identify and mitigate...

Rio Tinto defends environmental safety of Serbia’s Jadar lithium project

Rio Tinto announced on Thursday that it had published new environmental studies indicating the safety of its Jadar lithium project in Serbia, which was...
Supported by
Supported by
Supported by
error: Content is protected !!