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Introduction & Market Context
Eldorado Gold (NYSE:EGO) Corporation (TSX:ELD) delivered its Q1 2025 financial results on May 2, 2025, highlighting strong performance driven primarily by higher gold prices, despite relatively stable production volumes. The company reported a 38% year-over-year increase in revenue to $355.2 million, benefiting from gold prices that averaged $2,933 per ounce during the quarter, up substantially from $2,086 per ounce in Q1 2024.
The gold miner maintained solid operational performance across its portfolio of assets while making significant progress on its flagship Skouries copper-gold project in Greece, which remains on schedule for first production in Q1 2026. The company’s strong financial position, with $1.2 billion in total liquidity, positions it well to fund its growth initiatives while exploring opportunities to enhance shareholder returns.
Quarterly Performance Highlights
Eldorado (SO:ELDO11B) produced 115,893 ounces of gold in Q1 2025, slightly below the 117,111 ounces produced in the same period last year. Despite the marginal decrease in production, the company’s financial metrics improved significantly, driven by the favorable gold price environment.
As shown in the comprehensive financial results table below, net earnings attributable to shareholders more than doubled to $72.0 million from $35.2 million in Q1 2024:
The company generated $75.5 million in free cash flow from operations, excluding Skouries investment spending, compared to $33.7 million in Q1 2024. This improvement reflects both the higher gold price environment and the company’s operational discipline.
Eldorado maintained its full-year 2025 production guidance of 460,000-500,000 ounces of gold, with production and cost metrics for each asset detailed in the operations update:
Detailed Financial Analysis
Eldorado’s financial position strengthened considerably during the quarter, with cash and cash equivalents reaching $978.1 million, up from $514.7 million in Q1 2024. The company’s total liquidity position of $1.2 billion includes availability on its senior secured credit facility.
The company’s robust financial position is illustrated in the following breakdown:
While revenue and earnings showed significant improvement, production costs increased to $148.3 million from $123.0 million in Q1 2024. Total (EPA:TTEF) cash costs rose to $1,153 per ounce sold from $922 in the prior year period, while all-in sustaining costs (AISC) increased to $1,559 per ounce from $1,262. These cost increases reflect industry-wide inflationary pressures, particularly in labor, materials, and energy costs.
Despite these cost pressures, the company’s margins expanded due to the substantial increase in gold prices, resulting in improved profitability metrics across the board.
Strategic Initiatives
The Skouries copper-gold project in Greece remains Eldorado’s primary growth initiative and is now 66% complete, progressing according to plan. The company has invested $588.7 million in construction capital since the project restart, with expected capital expenditure for 2025 between $400-450 million plus $80-100 million for accelerated operational capital.
The project is on track to deliver first production in Q1 2026, with commercial production expected by mid-2026. Key milestones and recent achievements at Skouries include:
Significant progress has been made on various components of the project, including the filtered tailings building, where piling and concrete work are completed and structural steel and equipment installation are advancing as planned:
The thickeners are also progressing well, with water testing of the clarifier already commenced:
Upon completion, Skouries will position Eldorado as one of the European Union’s largest copper producers, adding a critical metal to the company’s production profile at a time when copper demand is expected to grow significantly due to the global energy transition.
Operational Performance
Eldorado’s operational performance varied across its portfolio of assets during Q1 2025:
The Lamaque Complex in Canada produced 40,438 ounces of gold at total cash costs of $836 per ounce sold. The operation celebrated a significant milestone during the quarter - the production of its one millionth ounce. Production was impacted by lower grades and recovery, partially offset by higher throughput:
Kışladağ in Turkey delivered 44,319 ounces at total cash costs of $1,039 per ounce sold. The operation benefited from continued leaching of gold ounces stacked during 2024, with a 21% increase in ounces placed on the pad compared to Q1 2024:
Efemçukuru, also in Turkey, produced 19,307 ounces at total cash costs of $1,357 per ounce sold, with gold grade, throughput, and production in line with expectations:
Olympias in Greece faced challenges during the quarter, producing 11,829 ounces at significantly higher total cash costs of $2,398 per ounce sold. Production was impacted by lower throughput due to plant equipment downtime and flotation circuit instability. However, the company reported that mitigation efforts have stabilized the operation, with production returning to expected levels in Q2 2025:
Forward-Looking Statements
Eldorado Gold remains confident in its ability to meet its 2025 guidance targets, with production expected to range between 460,000-500,000 ounces at total cash costs of $980-1,080 per ounce and AISC of $1,370-1,470 per ounce.
The company is focused on enhancing shareholder returns, as evidenced by the amendment to its Normal Course Issuer Bid (NCIB), which now allows for the purchase of up to 5% of issued and outstanding shares as of October 31, 2024.
Looking beyond 2025, Eldorado projects a 43% increase in gold production by 2027 compared to 2023 levels, driven primarily by the Skouries project coming online. The company’s robust balance sheet positions it well to fully fund its growth initiatives while maintaining financial flexibility.
With gold prices remaining strong and the Skouries project progressing toward production, Eldorado appears well-positioned to deliver on its strategic objectives and create value for shareholders in the coming years.
Full presentation:
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