Eldorado Gold posts net loss in second quarter, maintains its FY2022 production guidance
(Kitco News) - Eldorado Gold (TSX: ELD) yesterday announced that in Q2 2022, the company produced 113,462 ounces of gold, which is a slight 2% decrease over Q2 2021 (116,066 ounces), and an increase of 22% from Q1 2022 driven by strong production and mine development at Lamaque.
The company also reported net loss attributable to shareholders from continuing operations of $22.7 million ($0.12 loss per share) in Q2 2022 compared to net earnings of $31.0 million ($0.17 per share) in Q2 2021 and net loss of $339.5 million ($1.85 loss per share) in the six months ended June 30, 2022 compared to net earnings of $45.4 million ($0.25 per share) in the six months ended June 30, 2021.
Eldorado explained that net loss in the six months ended June 30, 2022 was primarily due to the impairment of the Certej project, a non-core gold asset, the write-down of decommissioned equipment at Kisladag, lower sales volumes, higher mine standby costs and higher income tax expense.
The company said that adjusted net earnings were $13.8 million ($0.08 per share) in Q2 2022 compared to $29.1 million ($0.16 per share) in Q2 2021.
The company noted it expects gold production to be second-half weighted and maintains its 2022 production guidance of 460,000 to 490,000 ounces, adding it is tracking toward the lower end of the range as a result of production challenges in Q1 2022.
Eldorado pointed out it is updating its 2022 guidance for consolidated cash operating costs to $700 to $750 per ounce sold, total cash costs to $790 to $840 per ounce sold and AISC to $1,180 to $1,280 per ounce sold.
"We had a steady operational quarter, driven by solid production and higher grades at Lamaque and consistent operations at Efemcukuru," commented President and CEO George Burns. "We remain confident in our ability to deliver consolidated production guidance of 460,000 to 490,000 ounces and expect to end the year in the lower end of the range."
"In addition, we revised our 2022 consolidated cost guidance to reflect lower than expected gold production in the first half of the year, continued inflationary pressures, and additional costs associated with the VAT import charge on Olympias gold concentrate shipments into China," he said.
Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkiye, Canada, Greece and Romania.
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