Eldorado Gold (ELD) Q2 2024 earnings summary

Executive summary

• Q2 2024 gold production reached 122,319 ounces, up 12% year-over-year, with strong output at Lamaque (+22%) and Kisladag (+14%), partially offset by lower Olympias production due to work stoppages; operations performed in line with expectations despite a 17-day labor stoppage at Olympias.

• Gold sales totaled 121,226 ounces at an average realized price of $2,336/oz, a 10% increase in sales volume from Q2 2023.

• Safety performance improved, with lost-time frequency rate dropping to 0.40 from 1.32 year-over-year, and multiple industry awards for safety and sustainability.

• Free cash flow was negative $32 million, but positive $33.9 million excluding Skouries project investment.

• Revenue rose 30% year-over-year to $297.1 million, driven by higher gold prices and increased sales.

Financial highlights

• Net earnings attributable to shareholders were $56 million ($0.28/share), up from Q2 2023, with adjusted net earnings of $66.6 million ($0.33/share).

• Adjusted EBITDA reached $155.3 million, up from $106.8 million in Q2 2023.

• Metal sales revenue reached $297.1 million, up from $229.0 million in Q2 2023.

• Cash, cash equivalents, and term deposits totaled $595 million as of June 30, 2024.

• Total cash costs averaged $940/oz and AISC $1,331/oz, both higher due to royalties, labor, and fuel.

Outlook and guidance

• 2024 annual gold production guidance maintained at 505,000–555,000 ounces, with production weighted to H2.

• Full-year total cash costs expected at $840–$940/oz and AISC at $1,190–$1,290/oz.

• Skouries project remains on budget and on track for first production in Q3 2025 and commercial production by year-end 2025.

• Olympias, Kışladağ, Efemçukuru, and Lamaque all expect stronger H2 2024 production.

• Skouries capex guidance for 2024: $375–$425 million.