Eldorado Gold cuts capital spending as gold price falls

Tue Jul 16, 2013 8:38am EDT
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TORONTO, July 16 (Reuters) - Eldorado Gold Corp said on Tuesday that it will cut capital spending in 2013 by more than 35 percent, deferring a full expansion at its Kisladag project in Turkey, in light of the recent drop in the gold price.

The Vancouver-based company also said it will bump back the start dates for three of its European development projects - Skouries and Perama in Greece and Certej in Romania - by at least a year, into 2016 or 2017.

Eldorado now plans to spend $430 million on capital projects in 2013, down from a previous estimate of $670 million. The company also revised down its exploration spending to $51 million from $98.5 million.

At Kisladag, the company said it is working on an amended environmental assessment and expects to have approval by year-end, but noted "the full Kisladag expansion as envisaged will be deferred pending improvement in metal prices."

Gold prices have fallen sharply in recent months, dipping under $1,300 an ounce, well below the open at the start of the year at $1,674.65 an ounce.

Separately, junior gold miner QMX Gold Corp said it is suspending development work at its Lac Herbin mine in the province of Quebec in light of the plunging gold price.