Eldorado Gold takes writedown of up to $1.6B on Greek assets
Gold miner has licence suspended at Greek mine and is fighting in court
Eldorado Gold is taking a writedown of $1.2 to $1.6 billion in 2015 on its Greek assets, after being forced to slow production and development at mines in that country.
A government decision revoked a mining permit on environmental concerns prompting a political standoff between local miners who want to work and environmentalists who are concerned about the project.
- Eldorado Gold suspends all mining work in northern Greece
Eldorado Gold CEO Paul Wright said the company would like to continue development on the site.
"Looking at Eldorado's long-term plan, the company remains committed to its portfolio of Greek assets and the realizable benefits to all of the stakeholders involved," he said in a statement.
Its Hellas Gold unit is fighting in court to get the go-ahead on projects.
Construction and development activities at the Skouries Project which includes a processing plant have been suspended and the company says it will suspend its Olympias mining project unless it receives approvals by March.
In a news release Monday, Eldorado estimated 2015 gold production at 723,532 ounces, more than expected, at an average cash cost of $841 per ounce. The company said it is "remaining financially prudent" on new development as gold prices remain low.
Eldorado's year-end financial statements are to be released on March 23.