• Gold Production: 115,893 ounces in Q1 2025.
• Total Cash Cost: $1,153 per ounce sold.
• All-in Sustaining Cost: $1,559 per ounce sold.
• Net Earnings: $72 million or $0.35 per share.
• Adjusted Net Earnings: $56 million or $0.28 per share.
• Free Cash Flow: Negative $22 million; positive $76 million excluding Skouries project investments.
• Revenue: $355 million, a 38% increase from Q1 2024.
• Average Realized Gold Price: $2,933 per ounce in Q1 2025.
• Capital Investments: $71 million in operating mines; $84 million in Skouries project.
• Liquidity: $1.2 billion, including $978 million in cash and cash equivalents.

• Warning! GuruFocus has detected 6 Warning Sign with EGO.

Release Date: May 02, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Eldorado Gold Corp (NYSE:EGO) reported a solid quarter with safe production of 115,893 gold ounces, aligning with expectations.
• The company expects increased production in the second half of the year, remaining on track to achieve its guidance of producing between 460,000 and 500,000 ounces of gold in 2025.
• Eldorado Gold Corp (NYSE:EGO) has a robust balance sheet with total liquidity of $1.2 billion, providing financial flexibility for investments and strategic initiatives.
• The company expanded its normal course issuer bid (NCIB) as part of its commitment to enhancing shareholder value, demonstrating confidence in its long-term prospects.
• Eldorado Gold Corp (NYSE:EGO) achieved a decrease in the lost time injury frequency rate to 0.7%, reflecting improvements in health and safety performance.

Negative Points

• Production at the Olympias site was lower than expected due to challenges with flotation circuit stability and unplanned maintenance, impacting overall output.
• Total cash costs and all-in sustaining costs were higher compared to 2024, primarily due to increased royalties and labor costs.
• The company's free cash flow for the quarter was negative $22 million, although it turns positive when excluding capital investments in the Skouries project.
• Eldorado Gold Corp (NYSE:EGO) experienced a realized derivative loss of $11 million from gold collars established in 2023, impacting net earnings.
• The company faces potential cost increases due to ongoing global US tariff discussions, which could add approximately $4 per ounce to total cash costs and $6 per ounce to all-in sustaining costs.

Q & A Highlights

Q: Can you explain the progress on the Skouries project, specifically the 66% completion of phase two, and how it relates to the timeline for first production? A: George Burns, President and CEO, stated that the construction is planned to be at 100% by Q1 2026, with commissioning and first production expected in Q1 of next year. The progress will depend on the construction workforce and the completion of off-site equipment assembly, which will be installed as the project advances.

Q: How are you managing labor contingencies for the Skouries project? A: George Burns explained that the primary objective is to hire construction workers from Greece, with additional workforce options identified within the EU, including Romania, Bulgaria, and Italy. They have contingency plans in place to ensure the necessary labor is available when needed.

Q: Regarding the NCIB, should we expect increased usage as Skouries nears completion, or is it more dependent on free cash flow and share price? A: George Burns indicated that the NCIB reflects confidence in their construction progress and belief that shares are undervalued. They plan to monitor progress and share price to make decisions that benefit shareholders, showing confidence in their timeline and undervaluation.

Q: Can you provide more details on the expected production split between the first and second half of the year? A: George Burns confirmed that the production split is expected to be approximately 48% in the first half and 52% in the second half, with Q1 and Q2 being similar. There are no unusual maintenance activities planned beyond routine preventive maintenance.

Q: How are you addressing potential tariff impacts on consumables, particularly in Quebec? A: Paul Ferneyhough, CFO, noted that there is uncertainty regarding tariffs, but they are focused on potential impacts in Quebec, particularly for items like explosives and cyanide sourced from the US. They are working with procurement teams to ensure appropriate inventory levels and estimate a $4 to $6 per ounce impact on costs.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.