Eldorado Gold Shares Down 9.7% on Higher Costs in 2024, Downgraded Four-Year Output Guidance
By Adriano Marchese
Eldorado Gold were sharply lower Friday morning after the company reported higher costs in its 2024 outlook and a lower four-year production outlook.
Shares trading in Toronto in the morning were down 9.7% to 13.74 Canadian dollars ($10.19).
Late Thursday, the company said it expects to produce between 505,000 and 555,000 ounces of gold across its operations in 2024, up from 485,000 ounces in 2023.
Steven Green if TD Cowen said in a report that the range was largely in-line with its forecast of 539,000 ounces for the year, however, he noted that lower end of the range was lowered slightly from 515,000 ounces previously.
“The reduction is primarily at Kisladag [in Turkey] and is partially offset by stronger production expectations at Olympias [in Greece],” he said.
Meanwhile, costs are expected to rise, with Eldorado forecasting total cash costs to climb about 5% year-over-year in 2024 to $840 to $940 an ounce, above TD’s forecast of $833 an ounce.
Eldorado’s 2025 production outlook was lowered by 40,000 ounces to a range of 545,000 and 595,000.
“The reduction was primarily at Skouries where Eldorado expects to produce 50,000 to 60,000 ounces, 30,000 ounces below the previous outlook,” Green said.
Meanwhile, he noted that the outlook for 2026 and 2027 is largely in line with the previous outlook and TD’s estimates.
Write to Adriano Marchese at adriano.marchese@wsj.com