Eldorado Gold writes down assets, posts US$687.6-million loss in fourth quarter

VANCOUVER – Eldorado Gold Corp. (TSX:ELD) posted a US$687.6-million net loss for the fourth quarter, as it recognized lower values for its assets and felt the impact of reduced gold prices and output.

The net loss amounted to 96 cents US per share, including the $684.6 million asset impairment item.

Revenue during the three months ended Dec. 31 totalled $231.7 million, down from US$350 million in the fourth quarter of 2012.

The Vancouver-based company joins a long list of gold producers that have taken major writedowns on their assets as a result of significantly lower bullion prices throughout 2013.

However, its shares are up substantially from their 52-week low of C$5.73 set in mid-December. They were at $8.15 on the Toronto Stock Exchange in early trading Friday after the earnings report.

The writedowns related to the value of its Jinfeng mine and Eastern Dragon development project in China. The company’s other operations are in Europe, Brazil and elsewhere in China.