Eldorado Gold reducing 2013 spending plan in wake of lower gold prices

VANCOUVER – Eldorado Gold Corp. (TSX:ELD) says it’s reducing its 2013 spending plans by about US$288 million in light of lower gold prices.

The Vancouver-based company, a mid-sized gold producer, also said it’s reviewing its dividend policy but has committed to pay five cents per share to its shareholders on Aug. 26.

Eldorado’s revised plan cuts reduces its exploration budget to $51 million and capital spending to $430 million, from $98.5 million and $670 million respectively.

The company also reported Friday that its second-quarter profit attributable to shareholders was $43.3 million or six cents per share, down from $46.6 million or seven cents per share a year earlier and below analyst estimates.

Analysts had estimated eight cents per share of adjusted earnings and nine cents per share of net income, according to Thomson Reuters data.

Average realized gold price during the quarter ended June 30 was US$1,382 per ounce, down from $1,612 a year before.