Eldorado cuts Q3 loss as gold production and price up, costs down
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The company said the increase in production was the result of the enhanced materials handling circuit at Kisladag, productivity initiatives and associated improvements at Olympias, slightly offset by slower than expected development at Lamaque due to suspended shifts in Q2 2023 as a result of the wildfires in the region.
The company’s cash operating costs were $698 per ounce gold sold in Q3 2023, 13% lower compared to $803 per ounce gold sold in Q3 2022, primarily due to higher ounces sold, as well as lower treatment and refining costs due to lower zinc sales, and lower VAT on concentrate sales in gold treatment costs.
Eldorado Gold reported revenue of $245.3 million in Q3 2023, an increase of 13% from $217.7 million in Q3 2022, primarily due to higher sales volumes at a higher realized gold price.
The company’s net cash generated from operating activities from continuing operations amounted to $108.1 million in Q3 2023 compared to $52.7 million in Q3 2022, primarily as a result of higher revenue and lower production costs.
The company also reported Q3 2023 net loss of $6.6 million, or $0.03 loss per share, compared to net loss of $28.4 million or $0.15 loss per share in Q3 2022.
“The decrease in net loss was driven by higher operating income on stronger gold sales and higher gold price combined with gains on derivative instruments, partially offset by higher income tax expense,” Eldorado said in a press release.
The company’s Q3 2023 adjusted net earnings were $35.0 million or $0.17 earnings per share, compared to net loss of $10.0 million or $0.05 loss per share in Q3 2022.
Importantly, Eldorado Gold announced that the company’s 2023 gold production is now expected to be 475,000 to 495,000 ounces of gold from 475,000 to 515,000, while cash operating costs per ounce sold range lowered to $730 to $780 from $760 to $860, primarily due lower unit costs for fuel and power.
Eldorado Gold is a gold and base metals producer with mining, development and exploration operations in Turkiye, Canada and Greece.
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