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.
Canada’s Eldorado Gold (TSX:ELD)(NYSE:EGO) said on Thursday that output in the first three months of the year climbed 40% to 115,949 ounces when compared to the same quarter last year, as output from its Olympias mine in Greece reached its highest levels in 18 months.
Production rose at three of its four mines, with the biggest jump being an 84% increase at Kışladağ in Turkey, to 50,176 ounces. The figure, however, was below the company’s expectations for the mine due to elevated rainfall, which led to increased solution volumes.
The Vancouver-based miner said the gold contained in excess solution will be recovered over the spring and summer months.
Production rose at three of its four mines, with the biggest jump being an 84% increase at Kışladağ, in Turkey, to 50,176 ounces
Production at Efemcukuru, also in Turkey, dropped 11% from a year ago to 23,239 ounces, but the miner said this was consistent with expectations due to lower grades.
Eldorado highlighted the performance of its Olympias mine in Greece, which produced the highest amount of gold in six quarters, rising 53% year-over-year.
Output at Lamaque mine in Quebec, which has been suspended since March 23 to comply with the province’s mandated covid-19 restrictions, rose 39% from a year ago to 27,353 ounces.
Despite the modest impact on first-quarter production at Lamaque, which began commercial operations last year, Eldorado remains optimistic, as Quebec recently granted the company an environmental permit for the expansion of underground production from the mine’s Triangle deposit.
The project would allow the miner to churn out 2,650 tonnes per day once operations resume, up from 1,800 tonnes per day.
