Eldorado Gold (ELD) Q3 2024 earnings summary

Executive summary

• Q3 2024 gold production reached 125,195 oz, up 7% year-over-year, with strong cash flow and margin expansion driven by higher gold prices and increased inventory drawdown at Kisladag.

• Skouries project is 79% complete, remains on budget and schedule, with first production expected in Q3 2025.

• Olympias secured a three-year collective bargaining agreement, supporting mill expansion to 650ktpa.

• Free cash flow from operations, excluding Skouries, reached $98.3 million in Q3 2024.

• Health and safety focus continued, with improved TRIFR and recognition for safety achievements at multiple sites.

Financial highlights

• Revenue rose 36% to $331.8 million, with net earnings attributable to shareholders at $101 million ($0.49/share), up from a $6.6 million loss in Q3 2023.

• Adjusted net earnings were $71 million ($0.35/share), more than doubling year-over-year, excluding a $50 million gain on deferred consideration and a $33 million unrealized derivative loss.

• Adjusted EBITDA rose to $169 million from $108.7 million in Q3 2023.

• Free cash flow was negative $4.8 million, but positive $98.3 million excluding Skouries capital investment.

• Total liquidity at quarter-end was $885 million, including $677 million in cash and term deposits.

Outlook and guidance

• 2024 gold production guidance narrowed to 505,000–530,000 oz (from 505,000–555,000), reflecting inventory buildup and Q2 work stoppages.

• Total cash cost guidance tightened to $910–$940/oz (from $840–$940), and AISC to $1,260–$1,290/oz (from $1,190–$1,290), due to lower production and higher royalties.

• Skouries capital spend for 2024 reduced to $350–$380 million (from $375–$425 million), with some non-critical work deferred.

• Company remains on track to deliver a 45% increase in gold production by 2027 and become a major EU copper producer.

• Depreciation guidance lowered to $250–$260 million (from $280–$290 million).