ELDORADO Gold expects to close the two transactions relating to the sale of its Chinese mining assets by the end of the year. The company says the sale of the Jinfeng, White Mountain and Tanjianshan mines as well as the Eastern Dragon development project for a total of US$900 million will result in an even stronger balance sheet.
|The processing plant at Eldorado Gold’s Tanjianshan Gold Project in Qinghai Province of northwest China.|
President and CEO Paul Wright said the sales would enable Eldorado to re-invest in its high quality internal project pipeline and provide long-term growth. The company also has mining, development and exploration operations in Turkey, Greece, Romania and Brazil.
During the June quarter Eldorado produced 124,110 ounces of gold at all operations and had revenue of US$162.7 million on sales of 128,090 ounces.
“Quarterly production was in-line with internal plans and we are expecting to produce a total of 570,000 ounces of gold at all in sustaining cash costs of $930 per ounce and cash costs of $595 per ounce for the full year 2016,” Paul Wright said.
Tanjianshan’s production of 13,900 ounces during the quarter was 45% lower year over year due to a decrease in head grade and lower recovery rate. Cash operating costs of $830 per ounce for the quarter were 85% higher year over year due to lower gold produced.
Subsequent to the end of the quarter a crack was reported in the mill shell which was expected to take 3-4 weeks to repair by welding. During this period other shutdown works requiring downtime were also completed.
At Jinfeng quarterly production of 22,353 ounces was 42% lower than the same period of 2015 mainly as a result of less ore milled and lower head grade, largely due to the end of open pit mining in the second quarter of 2015. Cash costs of $821 per ounce were higher year over year due to lower gold produced.
The 14,527 ounces produced at White Mountain was 22% lower due to slightly reduced milled tonnage and lower feed grade. Cash operating costs of $824 per ounce were 9% higher, as a result of lower gold produced.
During the quarter, Eastern Dragon remained on care and maintenance as Eldorado continued to advance the permitting process. The Mining Licence application has been submitted while work continued on amendments to the feasibility report for forest usage.
Drilling was completed during the quarter at White Mountain and Tanjianshan with good results obtained.