Eldorado Announces Spending Cuts, Postpones Projects in Light of Gold Prices

Eldorado Gold (TSX:ELD, NYSE:EGO) announced that they are slashing capital spending in reaction to the sharp drop in gold prices.

As quoted in the press release:

In light of the recent significant decline in gold price the Company has and continues to critically review and make modifications to its operating plan to ensure the Company continues to remain a low cost,profitable, growing gold company.The Company has revised its operating plan in a manner that ensures the Company’s ability to further develop its business based on a gold price of $1,250/oz for the foreseeable future.

Eldorado’s President and CEO, Paul Wright, said:

The Company’s mines continue to deliver in accordance with plan in terms of both production and costs underpinning Eldorado’s ability to progress its development projects. The strong second quarter operating performance of our mines enables year end guidance of 745,000 ounces of gold with cash costs of $520/oz. This is in line with original guidance provided of 705,000 – 760,000 ounces at cash costs of $515-530/oz.

To view the whole press release, click here.