Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Eldorado Gold (TSX:ELD)(NYSE:EGO) announced on Friday a Q2 2020 preliminary production of 137,782 ounces of gold, a 50% increase over Q2 2019.
Gold production at Kisladag mine in western Turkey increased by 130% over Q2 2019, and 19% over Q1 2020. Increased production was due to higher grade and tonnes of stacked ore and increased solution grades due to drier weather in June, the company said.
Midday Friday, Eldorado’s stock was up 3.3% on the NYSE
Production at Olympias gold-silver-lead-zinc mine in northern Greece increased by 159% over Q2 2019 and 18% over Q1 2020.
“This reflects the work completed at Olympias over the past year to increase underground development and backfilling, which has resulted in increased tonnes processed,” Eldorado said in a release.
Production at Efemcukuru underground mine in Turkey was slightly lower than Q1 2019 due to higher grades processed during the quarter.
Eldorado resumed its Lamaque gold mine on April 15, following a three-week mandated shutdown by the government of Quebec to address the covid-19 pandemic. Production increased in Q2 2020 (33,095 ounces) compared to Q1 2020 (27,353 ounces) due to higher grades and an increase in tonnes mined per day enabled by the recently received Certificate of Authorization from the Quebec Ministry of Environment.
Midday Friday, Eldorado’s stock was up 3.3% on the NYSE. The company has a $1.82 billion market capitalization.
