Eldorado Gold reports more than 1000% increase in free cash flow in Q2
(Kitco News) - The global COVID-19 pandemic did not have a material impact on Eldorado Gold as the company reported strong earnings in the second quarter, driven by higher production and rising gold prices.
Thursday, Eldorado announced net earnings were $45.6 million or $0.27 per share, up compared to net earnings of $12.2 million, or $0.08 per share reported in the second quarter of 2019.
Meanwhile, adjusted net earnings came in at $43.8 million, or $0.26 per share, up from an adjusted net loss of $3.5 million, or $0.02 loss per share reported last year. The earnings beat analysts' expectations.
"Our outstanding operational performance during the quarter positions us to continue to generate significant value for our stakeholders. Even while managing COVID-19, we achieved strong quarterly production while seeing lower all-in sustaining costs," said George Burns, president and CEO.
The higher gold price and substantial production numbers helped the company generate significant free cash flow. Eldorado reported free cash flow of $63.4 million for the second quarter, up significantly from $4.8 million during the same quarter last year.
The company said that gold production between April and June totaled 137,782, an increase of 50% from Q2 2019 production of 91,803 ounces, and a 19% increase over Q1 2020. The company said that it is maintaining its 2020 annual guidance of 520,000-550,000 ounces of gold at an all-in sustaining cost of $850-950 per ounce sold.
Along with higher production, Eldorado also reported lower costs. The company reported all-in sustaining costs of $859 per ounce of gold sold in the quarter, down compared to AISC of $917 per ounce sold last year.
"Our teams continue to show agility in addressing COVID-19 and we have begun to integrate innovative new technologies to protect our workforce," said Burns.
The higher gold price and strong production numbers helped the company generate significant free cash flow. Eldorado reported free cash flow of $63.4 million for the second quarter, up significantly from $4.8 million during the same quarter last year.