The strong performance of Eldorado Gold's first-quarter 2010 gold production has prompted the company to expand its guidance of 550,000 to 600,000 ounces of gold to 575,000 to 625,000 ounces of gold in 2010.

"We had record quarterly production of 164,928 ounces of gold at a cash operating cost of $371 per ounce with strong performances from all mines, whilst setting consecutive quarterly production records at Kisladag," Eldorado CEO Paul N. Wright said Thursday.

Eldorado sold 57,459 ounces of gold during the first quarter of 2009. However, cash operating costs were reported at $296 per ounce.

"Our revenues increased by 249% over the comparable period in 2009. Net quarterly income increased by 304% to $52.8 million. Cash generated from operating activities increased by 290% to $80.8 million," he noted.

Eldorado's consolidated net income for the first-quarter 2010 was $52.8 million or 10-cents per share, up from $13.1 million or 4-cents per share for the first-quarter 2009.

The company has also budgeted a $35 million exploration program for this year that includes 125,000 meters of drilling.

Eldorado reported cash and cash equivalents of $283.1 million and working capital of $292.3 million, compared with $265.4 million of cash and cash equivalents and working capital of $266.9 million at the beginning of the year.

Eoin Treacy's view Gold rallied impressively yesterday and improved on that performance today, displaying its credentials as the ultimate safe haven in times of market stress. Gold shares have also been less exposed to the general anxiety that has affected markets of late and some in the mid-tier portion of the sector are already moving to new highs. Also see Comment of the Day on April 28th.

Eldorado Gold has so far sustained it break to new all time highs and a downward dynamic would be required to question scope for additional upside.

IAM Gold continues to push back towards the high near $20. A sustained move back below $15 would be required to question scope for further higher to lateral ranging.

Randgold Resources continues to edge back towards the high near $90 and a downward dynamic sustained for more than a day or two would be required to question potential for a successful upward break.

Alamos Gold continues to outperform. It remains in a consistent uptrend, albeit overextended relative to the 200-day moving average. A sustained move below $14 would be required to begin to question the integrity of the medium-term advance.