Eldorado Gold’s (ASX: EAU) shares rose strongly today after the Canadian miner announced plans to more than double its gold production in the next five years.
In an update to the market, the company said it expected production to grow by 160%.
“With industry leading cash costs of about $350/oz expected over the same period, the company’s extensive mine development, construction and expansion programs can be funded largely by growing internal cash flows,” president and CEO Paul Wright said.
The company’s capital expenditure willbe $1.95 billion, with emphasis on its recently acquired Greek and Romanian assets.
“Eldorado intends to invest over $US1.0 billion ($A957 million) in Greece over the next several years in new mine development and related infrastructure. This significant investment will result in material direct and indirect job creation.”
Eldorado Gold has seven operating mines and three mines under construction. It operates in China, Turkey, Brazil, Greece and Romania. The company plans to produce 1.7 million ounces of gold annually by 2016.
At 1.40pm AEST, Eldorado’s stock was up 8.97% to $13.73.