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Eldorado Gold (TSX: ELD) has reported total production of 112,533 ounces for the first quarter of 2023, up 21% from Q1 2022. According to the company, this increase reflected higher gold production at most sites, notably an increase of 25% at the Kisladag operations in Turkey.
“Across the portfolio, the operations performed largely in line with our expectations, and are on track to deliver 475,000 to 515,000 ounces of gold in 2023, aligned with our guidance,” Eldorado CEO George Burns said in a news release, adding that “consolidated gold production is weighted to the second half of 2023, with stronger production in the quarters ahead.”
A total of 109,817 ounces were sold during Q1 at an average realized gold price of $1,932 per ounce. Gold sales were 16% higher than Q1 2022 thanks to increases in production at Kisladag, Lamaque and Olympias.
Cash costs amounted to $766 per ounce sold in Q1 2023, down from the $835 per ounce sold last year primarily due to the higher gold production in the quarter. All-in sustaining costs also decreased to $1,184 per ounce from $1,346 in Q1 2022, primarily reflecting the lower cash operating costs combined with lower royalty expense.
Owing to the increased production/sales and lower operating costs, the company was able to book an adjusted earnings before interest, taxes, depreciation and amortization of $102.5 million for the quarter, which nearly doubles the $61.7 million recorded in Q1 2022.
Adjusted net earnings were $20.5 million or $0.11 per share, which represents a significant turnaround from a net loss of $19.3 million ($0.11 loss per share) last year, beating analyst’s expectations by $0.05 per share.
Shares of Eldorado Gold surged 6.9% by 12:25 p.m. ET on the earnings beat, giving the diversified gold miner a market capitalization of C$2.8 billion ($2.07bn).
During Q1 2023, Eldorado also incurred capital expenditures of $83.4 million, including $31.4 million in growth capital invested at Skouries in Greece. Growth capital at the operating mines totalled $24.1 million and was primarily related to improving the productivity at Kisladag.
Burns said the installation of a fine ore agglomeration drum at Kisladag has commenced commissioning and will continue to ramp up to nameplate design in the second quarter, which is expected to “improve recoveries and offer potential upside.”
In Greece, at Olympias, the company will look to continue the positive operating momentum of the first quarter into the rest of the year. Several key initiatives are underway including the implementation of bulk emulsion and ventilation on demand, designed to improve safety performance and efficiency.
