Eldorado Gold Corp. (EGO, ELD.TO), Thursday said its second quarter profit more than doubled from a year ago on significantly higher sales volume and increased realized prices. Earnings and revenues for the quarter also came in above Street estimates.
Net income of the Canada-based gold producer jumped to $60.51 million or $0.11 per share from $25.90 million or $0.07 per share in the same quarter a year ago. When compared sequentially, the increase was 14.6%.
On average, eleven analysts' polled by Thomson Reuters expected earnings of $0.08 per share for the quarter. Analysts' estimate typically excludes one-time items.
Eldorado's second quarter revenue rose sharply to $206.44 million from $80.54 million recorded in the year-earlier quarter. Sequential increase in revenue was 13.3%.
Analysts' expected revenues of $175.61 million for the quarter.
Revenues were benefited by a 99% increase in gold sales over the second quarter of 2009. During the current quarter, Eldorado sold around 172,826 ounces of gold at an average price of $1,195 per ounce, up from the prior year's 86,453 ounces of gold sold at an average price of $927 per ounce.
The production facilities at Kisladag-Turkey, and Chinese facilities including Tanjianshan, Jinfeng and White Mountain, provided Eldorado with 167,940 ounces of Gold at a cash operating cost of $357 per ounce during the quarter, compared to 84,572 ounces in the year-earlier quarter, which resulted in a 158% increase in revenue.
"The company continues to have a very successful year, with our mines delivering in accordance with our stated plan and contributing to six consecutive quarters of increased production," commented Paul Wright President and CEO.
Eldorado also said it plans to produce 625,000 ounces of gold at cash operating costs of $375 per ounce in 2010.
On July 20, 2010, Eldorado acquired all the shares of Brazauro Resources Corp., thereby obtaining 100% ownership of the Tocantinzinho Gold Project and options agreements to earn 100% of the Aqua Branca and Piranhas properties.
Eldorado is a gold producing, exploration and development company actively growing businesses in Brazil, China, Greece, and Turkey and surrounding regions.
EGO is currently trading at $15.97, up $0.20 or 1.27%, on a volume of 1.16 million shares. In the last 52-week period, the stock traded in a range of $9.12 - $19.07, with a three-month average volume of 5.99 million shares.
On the Toronto Stock Exchange, ELD.TO is currently trading at C$16.49, up C$0.09 or 0.55%, on a volume of 1.01 million shares.
For comments and feedback: editorial@rttnews.com