TORONTO (miningweekly.com) – Midtier miner Eldorado Gold on Friday reported full-year profit of $305.3-million or 44c a share, which was nearly 5% lower when compared with $318.7-million or 58c a share in 2011, mainly as a result of increased costs at its Chinese mines and lower sales.

The company reported revenue of $1.14-million, which was 3.6% lower than a year earlier, mainly as a result of selling 625 394 oz of gold, which was 5% less than the 658 919 oz sold in 2011. Gold sold at an average price of $1 674/oz in the year.

Eldorado reported profit attributable to shareholders for the quarter ended December 31, was $115-million or 16c a share, compared with $88.8-million or 16c a share for the same period in 2011. The main factors that impacted the company’s profit were increased gold revenues from Efemcukuru (in Turkey) concentrate sales and lower income-tax expense owing to the recognition of $14.6-million of investment incentive tax credits in Turkey.

The effective tax rate decreased from 32% to 20% quarter over quarter.

Total cash costs per ounce rose from $405/oz in 2011 to $554/oz, mainly as a result of higher operating expenses at the company’s Chinese mines.

"In addition to the continued strong earnings and production achieved in 2012, the company completed its acquisition of European Goldfields during the year, significantly increasing our gold reserves. As well, the company strengthened its cash position through the issuance of senior notes totalling $600-million, proceeds of which will be used to fund a strong set of development projects in the pipeline,” CEO Paul Wright said.

Eldorado said the Greek government on January 11, enacted legislation increasing the corporate income tax rate from 20% to 26%, effective from January 1. The company expects the increase in the Greek income tax rate would increase the deferred tax liability and the deferred tax expense by about $130-million or 18c a share in the first quarter.

The Vancouver-based company expected to produce between 705 000 oz and 760 000 oz of gold this year at a cash cost of between $515/oz to $530/oz.

The company had a market capitalisation of C$7.07-billion and its Toronto-listed stock on Friday traded at C9.91 apiece.