Gold production from El Dorado Gold Corp.'s Turkish mine jumped by a third last quarter, offsetting weaker output from China and boosting total third-quarter output by nearly 11 percent, El Dorado Gold said Wednesday.
The Vancouver-based miner produced 179,195 ounces in the third quarter, up from 162,429 ounces in the second quarter. The increase was due to the company's Kisladag operations in Turkey increasing its output to 86,788 ounces from 66,688 ounces in the previous quarter. Gold production was down at all the firm's Chinese gold mines.
The average cash cost of production decreased to $397 per ounce from $477 in the previous quarter. Year-to-date costs are $401 per ounce.
The company expects total 2011 gold production of 650,000 ounces, at an average cash cost of production of $400 per ounce.
Construction of a facility in Heilongjiang Province, China, was being held back by local permitting. Completion of the Eastern Dragon processing plant, which was expected by the end of this year, is being delayed until third quarter 2011.
Despite the disappointment associated with not being able to complete construction at Eastern Dragon this year, we are extremely pleased with both the strong performance of our mines, which are all operating in accordance with plan, Paul N. Wright, El Dorado's CEO, said in a statement.
Shares of NYSE-traded El Dorado Gold, after taking a tumble following the opening bell, recovered slightly to $17.38, down 0.57 percent from the previous day's close.