Eldorado Gold posts profit on higher gold output

Thu Feb 19, 2015 6:48pm EST
 
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Feb 19 (Reuters) - Canadian gold miner Eldorado Gold Corp reported a fourth quarter profit on Thursday, as higher production and sales outweighed a drop in gold price.

The miner's net profit attributable to shareholders was $13.9 million, or 2 cents a share, in the quarter ended Dec. 31. That compared with a loss of $687.5 million, or 96 cents a share, in the year-ago period, when it posted a large impairment charge related to two projects in China.

Revenue in the quarter rose to $259 million, as gold output climbed 18 percent to 199,572 ounces, from 168,842 ounces in the prior year. The realized gold price, meanwhile, fell to $1,199 an ounce, from $1,264 an ounce in the fourth quarter of 2013.

The company said it continues to work on advancing its controversial new Skouries mine in Greece and is proceeding with plans to spend some $200 million on the project this year.

The Vancouver-based company's stock tumbled to a six-year low after Greece's energy minister told Reuters last month that "we are absolutely against it and we will examine our next moves on it."

The project has sparked protests from Greeks worried that the mine, in lush forests of northern Greece, will harm tourism. (Reporting by Susan Taylor in Toronto and Julie Gordon in Vancouver; Editing by Cynthia Osterman)