Canadian midtier miner Eldorado Gold on Thursday increased its full-year production expectations, after reporting better-than-expected output from its flagship Kisladag mine, in Turkey, in the three months ended June.

The company’s production jumped 56% from 63 392 oz in the second quarter of 2017 to 99 105 oz in the quarter under review, helped by higher production from Kisladag and Efemcukuru, in Turkey, as well as higher output from Olympias, in Greece.

As a result of gold production exceeding internal plans, Eldorado has lifted its forecast for the year to between 330 000 oz and 340 000 oz, up from the previous guidance of 290 000 oz to 330 000 oz.

Cash costs are expected to remain within the same range as previously guided at $580/oz to $630/oz.

Eldorado also reported that it expected to recover about 40 000 oz to 45 000 oz of previously deemed unprofitable gold from the heap leach operation at Kisladag between 2018 and 2022, based on new advances in metallurgical testwork.

"This was an excellent quarter for us.  Production was strong, driven by better-than-expected ounces from the heap leach pad at Kisladag," said president and CEO George Burns.

The miner sold 94 224 oz during the quarter, which was significantly higher than the prior-year quarter, earning the firm $153.2-million.

However, higher gold revenues were offset by higher production costs and depreciation, depletion and amortisation expenses. Production costs were $46.4-million higher, primarily driven by $26.5-million in non-cash charges related to the leach pad inventory drawdown at Kisladag.

These and other noncash charges resulted in Eldorado reporting a loss of $24.4-million, or $0.03 a share, compared with profit of $11.2-million, or $0.02 a share, in the second quarter of 2017.  Adjusted net earnings for the quarter were a loss of $1.8-million, compared with adjusted net earnings of $6.3-million for the second quarter of 2017.

"Our cash position remains solid and in light of the positive performance in the first half of 2018, we continue to refine our views on capital and potential funding requirements to meet the medium to long-term needs of the organisation and re-establish annual production of 600 000 oz per year by 2021," Burns stated.