Eldorado Gold, a Canadian mining company, reported a narrower loss in the third quarter due to increased revenue from higher sales volumes and a higher gold price. The company’s shares rose by 11% on the Toronto Stock Exchange and by 11% on the New York Stock Exchange.
Eldorado Gold decreased its loss from $54.6 million, or 30 cents per share, in the same period last year to $8 million, or 4 cents per share, in the third quarter. Adjusted earnings per share were 17 cents, surpassing the analysts’ estimate of 4 cents per share.
The company’s revenue increased by 13% to $245.3 million. The average realized price for gold was $1,879 per ounce, up by 11% compared to the previous year.
Increased Production and Lower Costs
Eldorado Gold saw a rise in gold production for the quarter, with 121,030 ounces produced compared to 118,791 ounces in the same period last year. The company attributed this increase in production to lower transport and refining charges, as well as reduced costs for electricity and diesel in Turkey.
Revised Targets for Full Year
The company revised its production target for the full year to a maximum of 495,000 ounces, down from the previous range of 475,000 to 515,000 ounces. Eldorado Gold also lowered the forecast range for total operating costs to $830 to $880 per ounce sold, as compared to the previous range of $860 to $960.