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CORRECTED-UPDATE 1-Eldorado sees up to $1.6 bln charge from Greece writedown

Published 2016-01-25, 06:51 p/m
© Reuters. CORRECTED-UPDATE 1-Eldorado sees up to $1.6 bln charge from Greece writedown
ELD
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(Corrects paragraph five to say the company has won the appeal,
and is not awaiting an official decision)
Jan 25 (Reuters) - Eldorado Gold Corp ELD.TO said it
expects to write down the value of its assets in Greece by $1.2
billion-$1.6 billion, after the Canadian miner suspended
majority of mine construction and development in the European
country.
The company also forecast 2016 gold production of
565,000-630,000 ounces on Monday, much lower than the estimated
723,532 ounces it produced last year.
Eldorado Gold EGO.N said earlier this month it would
suspend construction at its Skouries project and warned that it
would do the same at its Olympias project if it did not receive
a permit by the end of March. It has halted development work its
Perama Hill and Sapes projects but could restart at a later
date.
The Vancouver-based miner had appealed to Greece's top
administrative court to annul a government decision that revoked
a mining permit in northern Greece on environmental concerns.
A majority of judges of Greece's top administrative court
ruled in favor of Eldorado in November and the court annulled
the government's decision earlier this month.
Eldorado remained committed to its portfolio of Greek
assets, Chief Executive Paul Wright said in a statement on
Monday.
The company said it expects all-in sustaining costs to be
between $940 and $980 per ounce this year, compared with an
average $841 per ounce in 2015.
Average cash cost is expected to be between $585 and $620
per ounce in 2016, compared with $552 per ounce last year.
Up to Monday's close of C$3.23, the Toronto-listed shares
had fallen 47 percent since the Greece government first voiced
opposition to Eldorado's operations in January 2015.

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