Eldorado Gold posts $317M net loss in Q1 due to impairment of Certej project; gold production down 17%
The company said that production was heavily impacted in the earlier part of the quarter by COVID-related absenteeism, weather related challenges and power outages at our operations.
However, in the latter part of the quarter, most operations returned to planned levels of tonnage, grades and production, Eldorado added.
Total revenue was $194.7 million in Q1 2022, a decrease of 13% from total revenue of $224.6 million in Q1 2021. The decrease was primarily driven by lower sales volumes in Q1 2022, and was partly offset by higher average metal prices.
The company also reported net loss attributable to shareholders from continuing operations of $316.8 million ($1.74 loss per share) in Q1 2022, compared to net earnings of $14.3 million ($0.08 earnings per share) in Q1 2021.
Eldorado noted that lower net income in Q1 2022 is primarily attributable to the impairment of the Certej project ($345.4 million, net of deferred tax), a non-core gold asset, and the write-down of decommissioned equipment at Kisladag ($15.4 million, net of deferred tax).
"Our global operations were met with significant challenges in the first quarter," said President and CEO George Burns. "Severe weather in Turkey and Greece, a government-mandated power outage in Turkey, and COVID-related absenteeism across all sites impacted our production. As we previously indicated, production in 2022 is expected to be heavily weighted to the second half of the year. Despite the headwinds, we have seen operations improve towards the end of the quarter and are maintaining our consolidated full-year guidance of 460,000 to 490,000 ounces of gold."
Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkey, Canada, Greece, and Romania.
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