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Eldorado Gold reports 2022 production below guidance, says net loss widens year-over-year

Vladimir Basov

Kitco News

(Kitco News) - Eldorado Gold (TSX: ELD) (NYSE: EGO) announced yesterday that its full year production of 453,916 gold ounces in 2022 (2021 – 475,912 ounces) was 1% below the low end of guidance.

The company said that full year cash operating costs of $788 per ounce sold in 2022 were 5% above the guidance range, driven by price increases for commodities and consumables, including electricity in Turkiye and Greece, and fuel and reagents at Kisladag.

Eldorado added that all-in sustaining costs ("AISC") were $1,276 per ounce sold in 2022, meeting guidance for the year, "driven mainly by the company's disciplined deployment of sustaining capital."

The company also reported net loss attributable to shareholders from continuing operations of $49.2 million ($0.27 loss per share) in 2022, compared to net earnings of $20.9 million ($0.12 per share) in 2021 and net earnings of $41.9 million ($0.23 per share) in Q4 2022, compared to net loss of $39.4 million ($0.22 loss per share) in Q4 2021.

Eldorado explained that net loss in 2022 was primarily due to lower production and sales volumes, and higher operating costs, depreciation, mine standby costs and non-cash asset write-downs, adding that net earnings in Q4 2022 reflected higher sales volumes and an income tax recovery, compared to a significant income tax expense in Q4 2021.

Adjusted net earnings from continuing operations were $10.1 million ($0.05 per share) in 2022, compared to $129.5 million ($0.72 per share) in 2021.

The company also reported net loss for the full year 2022 of $353.8 million (2021 – net loss of $136 million).

In 2023, the company expects consolidated gold production of 475,000 to 515,000 ounces, average cash operating costs of $760 to $860 per ounce sold, and average AISC of $1,190 to $1,290 per ounce sold.

Importantly, Eldorado Gold said it is "excited" to deliver on the company's growth portfolio with production increasing year after year, and reaching 700,000 gold ounces by 2027. The company's focus remains on execution at Skouries.

Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkiye, Canada and Greece.

Lundin Gold beats production and cost guidance in 2022; net income down to $73.6 million
By Vladimir Basov

For Kitco News

Contact vbasov@kitco.com
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