Eldorado Gold targets 45% production increase by 2027
Eldorado Gold Corp. [ELD-TSX; EGO-NYSE] is forecasting a 9.0% increase in gold production this year. The company said it expects to produce between 505,000 and 555,000 ounces of the yellow metal in 2024.
Looking ahead to 2027, Eldorado expects annual gold production to increase over the next four years to between 675,000 and 735,000 ounces, resulting in growth of 45% from 2023.
However, Eldorado Gold shares eased 13% or $1.98 to $13.23 on Friday. The shares trade in 52-week range of $18.30 and $11.19.
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.
Meanwhile the gold production target for 2024 is driven by higher expected production at Kisladag as a result of the upgraded materials handling systems and the recently commissioned North Heap Leach Pad. In addition, the company expects and increase at Olympias following the underground infrastructure upgrades completed in mid-2023 and productivity improvements that ramped up during 2023. Similar to prior years, quarter-to-quarter gold production in 2024 is expected to fluctuate, with higher production expected in the second half due to the impact of winter conditions at Kisladag and ore grade variability across the portfolio.
“We have a lot of momentum as we step into 2024,’’ said Eldorado President and CEO George Burns. “A number of key initiatives were completed last year that set up our operations for long term efficient, safe and growing production,’’ he said.
“It’s also an exciting year at Lamaque, as we will advance the Ormaque deposit through the mining and processing of a bulk sample leading to an inaugural reserve late this year.’’
Burns said the company made significant headway at the Skouries project as work crews ramped up to full construction.
A feasibility study released in December 2021, pegged the initial capital costs to complete Skouries at $845 million, an increase of 23% over forecasts contained in a March, 2018 pre-feasibility study.
The feasibility study envisages life of mine production of 2.9 million ounces of gold, including average annual production of 140,000 ounces of gold and 67 million pounds of copper (approximately 312,000 ounces of gold equivalent) over a 20-year life span.
The Skouries project is part of the Kassandra Mine Complex, and located within the Halkidiki Peninsula in northern Greece. It is a gold-copper porphyry deposit designed to be mined using a combination of open pit and underground mining techniques.