(MENAFN- ProactiveInvestors) (TSE:ELD) the Canadian producer with mines in China Greece Turkey Romania and Brazil swung to a fourth-quarter profit as higher production and sales overpowered a drop in gold price.
Net income $13.9 million or $0.02 per share in the October-to-December quarter compared with a loss of $687.5 million or $0.96 per share in the year-earlier period the Vancouver British Columbia-based company said in a statement late yesterday.
The company posted a large impairment charge related to two projects in China in the year-earlier quarter.
Adjusted earnings per share were $0.04 below consensus of $0.05.
Revenue increased to $259 million above the consensus estimate of $246 million.
Gold output climbed 18 percent to 199572 ounces from 168842 ounces in the prior year.
The realized gold price meanwhile fell to $1199 an ounce from $1264 an ounce in the fourth quarter of 2013.
"This past year was another milestone for the Company and our employees" chief executive officer Paul Wright said in the statement.
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 project has sparked protests from Greeks worried that the mine in lush forests of northern Greece will harm tourism.
Eldorado reiterated 2015 guidance for consolidated production of 640000 to 700000 ounces at cash operating costs of $570-615 per ounce.
Following the results Dundee Capital Markets which has a sell recommendation on the stock said its first impressions were “slightly negative”.
Dundee said that a 5-year production plan was issued at Kisladag in Turkey outlining average annual production of 289000 ounces consistent with management commentary but lower production than the average is guided near term in 2015-2017 and higher production in 2018-2019.
Following a decision to defer Kisladag's Phase IV expansion in January management expects to deliver the project in 2018.
“We estimate the impact of reserve changes and incremental Kisladag mine plan disclosure is 5% negative to our NAV estimate and 7% dilutive to CFPS estimates in 2016-2017” analyst Josh Wolfson wrote in a research note to investors today.
Shares gained 3.8 percent to C$6.50 at 1:55 p.m. in Toronto paring losses over the past six months to 26 percent.
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