Boston, MA 10/29/2013 (wallstreetpr) – Eldorado Gold Corp (USA) (NYSE:EGO) is a gold exploration, development, mining, and production company.
Price of gold is not supporting the company’s result as there was decline in profit of the company in the second quarter even though the company has increased its production capacity as the price of gold has fallen, owing to which the company has to revised its dividend policy. Production volume of the company has grown from 140,694 to 183,971 ounces in second quarter of the year. the company has a plan to cut down its capital expenditure by 35% in the year 2013 and is planning to get into other various projects as the company now plans to spend only $430 million on capital projects as compared to $670 million of last year.the company announces a termination agreement with Hunt Mining Corp as the agreement was for exploration for which both the companies entered on May 3, 2012.
The company, earlier this year, declared the issuance of senior notes offerings, as it is planning to raise a total of $600 million for 6.125 % which will be unsecured and getting due in the year 2020 as this note will not be registered under US securities act 1933 or the securities law of any other jurisdiction. The company has to withdraw its proposal of issuing the $500 million senior notes offering to a public. It decided to do this by looking at the market conditions and seeing that it is not the right time to issue the notes as it had announced on November 12, 2012.
Though the company has witnessed an increase in the volume growth, the benefit of the same is not being reflected in the earnings, as a majority of the gain is been negated by the decline in metal prices. It is anticipated that the company’s decision to lowered down its capital expenditure guidance and focus on other projects argues well for the company future growth plan.
