Eldorado Gold lowers 2024 production guidance
Eldorado Gold Corp. [ELD-TSX; EGO-NYSE] released its third quarter financial results said it is tightening its 2024 guidance for gold production, costs, depreciation and capital spending
The company said the move reflects updated full-year expectations given the operational and financial performance to date.
Gold production is expected to be 505,000 to 530,000 ounces, down from an earlier target of 505,000 and 555,000 ounces of the yellow metal.
Total cash costs per ounce sold is expected to be US$910 to US$940 per ounce sold, compared to US$840 to US$940, primarily due to lower production and increased royalties in Greece and Turkey related to the higher gold price.
The all-in-sustaining cost per ounce sold is expected to be US$1,260 to US$1,290 per ounce, compared to US$1,190 to US$1,290 per ounce primarily due to higher total cash costs, partially offset by lower sustaining capital expenditures.
Eldorado Gold shares eased 3.6% or $0.87 to $23.35 on Friday. The shares trade in 52-week range of $26.32 and $13.10.
Based in Vancouver, Eldorado is a mid-tier gold and base metals producer with an international portfolio that includes mining, development and exploration projects in Turkey, Canada, Greece, Romania, and Brazil. Key operations include the Kisladag and Efemcukuru mines in Turkey, the Olympias Mine in Greece, and the Lamaque Mine in Quebec. The company said it expects first production from the Skouries project gold-copper project in northern Greece is on track by the third quarter of 2025 with commercial production anticipated by the end of 2025.
Key highlights from the third quarter of 2024 include 125,195 ounces produced. Production increased 3.0% from the third quarter of 2023, reflecting increased gold production of 13% at Olympias due to higher gold grades processed and 10% at Kisladag as a result of increased heap leach inventory drawdown.
Revenue in the third quarter was $331.8 million, an increase of 36% from $244.8 million in the third quarter of 2023, most due to a higher gold price.
All-in-sustaining costs in the third quarter came in at US$1,335 an ounce sold, compared to US$1,177 in the third quarter of 2023, with the increase due to higher total cash costs combined with higher sustaining capital.
The company reported a net earnings (loss), attributable to shareholders from continuing operations of $101.1 million or 49 cents per share, compared to a $6.6 million loss or $0.03 in the third quarter of 2023, with the increase driven by higher revenue.
Production reached 364,625 ounces in the first nine months of the year, an increase of 7.0% compared to 2023, and 12% compared to 2022.
“Our transformational Skouries project continues on track on budget and on schedule with first production expected in the third quarter of 2025,’’ said Eldorado President and CEO George Burns. “Solid progress was made during the third quarter, with overall project completion currently at 79%.’’