Eldorado Gold to write down assets up to US$1.6 billion, mostly Greek mines

VANCOUVER – Vancouver-based Eldorado Gold Corp. (TSX:ELD) will be writing down the value of its assets by up to US$1.6 billion, primarily because of its troubled mining operations in Greece.

Eldorado has been at odds with the Greek government for some time and said two weeks ago that it was suspending work immediately at one of its four projects in Greece as a result and was reviewing all of its activities in that country.

It said Monday that it remains committed to having a presence in Greece and has budgeted $155 million in development spending at the Olympias project — about two-thirds of Eldorado’s total development budget for 2016..

However, Eldorado estimates that its annual review of assets will probably result in an impairment expense of between US$1.2 billion and US$1.6 billion after taxes, mostly because of Greece.

Eldorado previously announced on Jan. 12 that its Skouries development in Greece would suspend work immediately, resulting in 600 layoffs and that a further 500 jobs at the Olympias project would likely be cut this year.

Besides four mines operating or under development in Greece, Eldorado produces gold from mines in Turkey and China and developing a new mine in Romania.