Eldorado Gold ((TSE:ELD)) has held its Q2 earnings call. Read on for the main highlights of the call.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Eldorado Gold’s recent earnings call painted a picture of robust operational and financial performance, with notable achievements in gold production and sustainability. However, the company also faces challenges such as increased costs, higher injury rates, negative free cash flow, and project delays.
Solid Gold Production
Eldorado Gold reported a safe production of 133,769 gold ounces in Q2 2025, surpassing expectations at both the Lamaque Complex and Kişladağ. This solid performance underscores the company’s operational capabilities and strategic focus on maximizing output.
Strong Financial Performance
The company achieved net earnings from continuing operations of $139 million, or $0.68 per share, primarily driven by higher average realized gold prices. This financial strength highlights Eldorado Gold’s ability to capitalize on favorable market conditions.
Sustainability and Awards
Eldorado Gold was recognized as one of Canada’s best companies in 2025 by Time, receiving multiple awards in Québec and Greece for sustainability and safety. These accolades reflect the company’s commitment to responsible mining and corporate social responsibility.
Successful Capital Investment
Eldorado invested $47 million in growth capital at operating mines and made significant progress at Skouries with a $117 million investment, ensuring the project remains on track. This strategic investment demonstrates the company’s focus on long-term growth and development.
Increased Costs
The company’s total cash costs and all-in sustaining costs rose to $1,064 and $1,520 per ounce sold, respectively, due to higher royalties and labor costs. This increase poses a challenge to maintaining profitability amidst fluctuating market conditions.
Increased Injury Rates
Eldorado Gold reported an increase in the lost time injury frequency rate to 0.95, up from 0.40 in the second quarter of 2024. This rise highlights the need for enhanced safety measures to protect the workforce.
Negative Free Cash Flow
The company experienced a negative free cash flow of $62 million for the quarter. However, excluding capital investments in Skouries, the free cash flow was positive at $62 million, indicating underlying financial resilience.
Delayed Mill Expansion at Olympias
The expansion of the mill at Olympias to 650,000 tonnes per annum has been delayed, with completion now expected by mid-2026. This delay may impact future production capabilities and requires careful management.
Forward-Looking Guidance
Eldorado Gold remains on track to meet its annual production guidance of 460,000 to 500,000 ounces of gold, expecting to hit around the midpoint based on first-half performance. Despite higher costs, the company maintains a strong balance sheet with liquidity over $1.1 billion, supporting ongoing investments and potential shareholder returns.
In conclusion, Eldorado Gold’s earnings call revealed a company performing well operationally and financially, despite facing challenges such as increased costs and project delays. The company’s commitment to sustainability and strategic investments positions it well for future growth, although it must address rising injury rates and manage cash flow effectively.