FX.co ★ Eldorado Gold Turns To Profit In Q3, Adj. EPS Beats Market, Revenues Miss; Cuts FY24 Production View

Eldorado Gold Corp., listed on both the NYSE and TSX as EGO and ELD.TO respectively, has announced a profitable third quarter, contrasting with last year's losses, largely attributed to a significant revenue surge. While adjusted earnings surpassed market expectations, revenue figures fell short. The mining giant also revised its production forecast for fiscal year 2024, trimming the higher end of its guidance.

On Thursday, Eldorado Gold shares fell by 3.3% to close at $17.37 on the NYSE, with a further decline of 2.3% in after-hours trading to $16.98.

Looking ahead to fiscal 2024, Eldorado Gold remains confident in meeting its production and cost guidance. The company now projects gold production to range between 505,000 and 530,000 ounces, down from an initial estimate of 505,000 to 555,000 ounces. This adjustment reflects a reassessment of full-year projections based on current operational and financial performance.

Revised expectations for total cash costs now stand between $910 and $940 per ounce, up from a previous range of $840 to $940 per ounce. The all-in sustaining costs (AISC) per ounce are anticipated to be between $1,260 and $1,290, compared to the earlier prediction of $1,190 to $1,290, due primarily to increased cash costs, partially balanced by diminished sustaining capital expenditures.

In the third quarter, Eldorado Gold achieved net earnings attributable to shareholders from continuing operations amounting to $101.1 million, or $0.49 per share, a notable turnaround from last year's $6.6 million loss, or $0.03 loss per share. Adjusted net earnings climbed to $71.0 million, or $0.35 per share, up from $35.0 million, or $0.17 per share, in the previous year. Analysts, according to Thomson Reuters data, had expected earnings of $0.34 per share, with such estimates typically excluding special items.

The company's adjusted EBITDA increased to $169.0 million, compared to $108.7 million last year. Revenue for the quarter rose by 36% to $331.8 million from the previous year’s $244.8 million, driven primarily by a higher average realized gold price and increased sales volumes. However, Wall Street experts predicted revenues of $360.38 million for the quarter.

Gold production for the quarter reached 125,195 ounces, showing a 3% rise from the preceding year. Gold sales increased by 4% to 123,828 ounces, with an average realized gold price of $2,492 per ounce.