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Eldorado Gold reports higher net earnings in Q2 y-o-y, maintains 2023 guidance

Kitco Media
By Vladimir Basov
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(Kitco News) - Eldorado Gold (TSX: ELD) (NYSE: EGO) announced last week it produced 109,435 ounces of gold in Q2 2023, down 4% compared to Q2 2022 (113,462 ounces) as a result of lower throughput at Lamaque due to the wildfires in the region and lower average gold grade and recoveries at Olympias.

The company’s all-in sustaining costs (AISC) were $1,296 per ounce sold in Q2 2023, which is higher compared to $1,270 per ounce sold in Q2 2022, primarily reflecting the increase in cash operating costs per ounce sold and slightly offset by lower sustaining capital expenditures.

Eldorado also reported revenue of $229.9 million in Q2 2023, an increase of 8% from $213.4 million in Q2 2022, primarily due to higher sales volumes, and higher average realized gold price.

The company’s free cash flow was negative $21.7 million in Q2 2023 compared to negative $62.7 million in Q2 2022, while net earnings amounted to $1.5 million, or $0.01 earnings per share, compared to net loss of $22.9 million or $0.12 loss per share in Q2 2022.

The company explained that higher net earnings in Q2 2023, compared to Q2 2022, is primarily a result of higher gold sales, higher average realized gold prices, foreign exchange gain and lower finance costs.

Adjusted net earnings amounted to $16.1 million ($0.09 earnings per share) in Q2 2023 compared to adjusted net earnings of $13.6 million ($0.07 per share) in Q2 2022. 

The company said it is maintaining its 2023 annual gold production guidance and cost guidance. Gold production is expected to be 475,000 - 515,000 ounces of gold. Cash operating costs per ounce sold are expected to be $760 to $860, total operating costs of $860 to $960 per ounce sold and AISC per ounce sold of $1,190 to $1,290.

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

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Kitco Media

Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

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