Vancouver-based Eldorado Gold is continuing to advance financing discussions for its partially constructed Skouries mine, in Greece, and says that it aims to restart work on the project in the second half of the year.
The project has been stalled for several years, after the Greek government delayed licensing for Eldorado’s Kassandra mines, which include Skouries, Olympias and Stratoni, over environmental concerns.
The company and Greece, under the conservative government of Prime Minister Kyriaos Mitsotakis, last year reached an agreement to restart the mining investments.
Eldorado president and CEO George Burns said on Thursday that the company was evaluating all available financing options for Skouries, including joint venture equity partners, project and debt financing through EU and Greek lenders, as well as the EU Recovery and Resilience Fund and metal streams.
“Subject to financing and board approval, target restart of construction at Skouries is in the second half of 2022,” he said.
During the first quarter, Eldorado had made progress at Skouries, with work focused on cladding of the process plant, commencement of basic engineering and continued preservation of site facilities and equipment.
Meanwhile, Eldorado reported lower first-quarter production of 93 209 oz at an all-in sustaining cost (AISC) of $1 347/oz, with output impacted in the earlier part of the quarter by Covid-19 absenteeism, weather-related challenges and power outages at its operations. In the prior-year quarter, output was 111 742 oz at an AISC of $986/oz.
The company maintained its 2022 yearly guidance of 460 000 oz to 490 000 oz, despite the first-quarter headwinds.
“As we previously indicated, production in 2022 is expected to be heavily weighted to the second half of the year,” Burns said.
Eldorado reported an adjusted net loss of C$19-million, or C$0.10 a share.