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Eldorado Gold Corp (TSE:ELD)
TSX:ELD
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Eldorado Gold
(TSX:ELD)74Outperform
Positive Factors
Production Performance
Lamaque operations saw a 48% Q/Q increase in production driven by higher ore grade and mill throughput.
Valuation
ELD represents a compelling opportunity on valuation relative to peers, setting the company up well for significant organic growth opportunities.
Negative Factors
Operational Challenges
Construction progress at Skouries was slower than planned, with the company evaluating the impact on CapEx and the project schedule.
Resource Estimates
The Measured and Indicated Gold Resource dropped by 3% and the Inferred Resource dropped by approximately 10%.
Eldorado Gold (ELD) vs. S&P 500 (SPY)
Market Cap
$4.08B
Dividend YieldN/A
Average Volume (3M)492.32K
Price to Earnings (P/E)10.1
Beta (1Y)1.40
Revenue Growth27.29%
EPS GrowthN/A
CountryCA
Employees3,024
SectorBasic Materials
Sector Strength56
IndustryMining
Share Statistics
EPS (TTM)1.95
Shares Outstanding204,949,400
10 Day Avg. Volume443,126
30 Day Avg. Volume492,316
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)N/A
Price to Sales (P/S)2.13
Price to Cash Flow (P/CF)2.00
P/FCF Ratio3.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$25.94Price Target Upside29.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Eldorado Gold Business Overview & Revenue Model
Company DescriptionEldorado Gold Corporation is a Canadian-based, mid-tier gold and base metals producer with over 25 years of experience in building and operating mines. The company has operations and development projects in Turkey, Canada, Greece, and Romania. Eldorado Gold focuses on safe, responsible mining, and creating shared value for stakeholders. Its core products include gold, silver, lead, and zinc.
How the Company Makes MoneyEldorado Gold makes money primarily through the mining, production, and sale of gold, as well as the extraction and sale of other base metals such as silver, lead, and zinc. The company operates several mines across different countries, which helps diversify its revenue streams and minimize geopolitical risks. Eldorado Gold sells its products to various buyers, including smelters, refiners, and direct market sales, depending on the market conditions and contractual agreements. The company's earnings are significantly influenced by the market prices of gold and other metals, production levels, and operational efficiency. Strategic partnerships and joint ventures also play a role in optimizing operations and accessing new markets or resources.
Eldorado Gold Financial Statement Overview
Summary
Eldorado Gold showcases strong financial performance with robust revenue growth and profitability, reflecting efficient cost management. The balance sheet is stable with low leverage, but significant capital expenditures have led to negative free cash flow, indicating potential short-term liquidity challenges.Income Statement
Eldorado Gold demonstrates strong financial performance in the TTM with significant improvements across key metrics. The gross profit margin stands at 39.37%, and the net profit margin is 23.32%, indicating efficient cost management and profitability. The company has seen a robust revenue growth rate of 17.57% from the previous year, and the EBIT margin at 26.84% and EBITDA margin at 51.82% highlight operational efficiency. However, a slight decrease in gross profit margin compared to the previous year suggests potential cost pressures.85
Very Positive
Balance Sheet
The balance sheet of Eldorado Gold reflects a stable financial position with a debt-to-equity ratio of 0.23, indicating low leverage and financial flexibility. The return on equity is impressive at 7.33%, showcasing effective utilization of equity to generate profits. The equity ratio is 67.77%, reflecting strong equity financing and asset stability. However, the overall debt level has increased, which could imply future interest obligations.78
Positive
Cash Flow
Eldorado Gold's cash flow statements present mixed results. The operating cash flow to net income ratio is 1.98, indicating strong cash generation relative to net income. However, the free cash flow remains negative, reflecting significant capital expenditures potentially aimed at growth. The free cash flow to net income ratio is -0.05, which may raise concerns about short-term liquidity management.73
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.19B | 1.01B | 871.46M | 943.47M | 1.03B | 615.92M | Gross Profit |
| 466.68M | 513.45M | 171.69M | 292.77M | 334.85M | 127.96M | EBIT |
| 318.23M | 182.01M | 70.81M | 212.93M | 228.72M | 58.83M | EBITDA |
| 614.43M | 436.38M | 289.46M | 427.12M | 477.29M | 214.16M | Net Income Common Stockholders |
| 276.48M | 104.63M | -49.37M | 11.10M | 124.80M | 80.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 544.44M | 544.44M | 314.87M | 481.49M | 511.19M | 184.84M | Total Assets |
| 4.99B | 4.99B | 4.46B | 4.93B | 4.90B | 4.65B | Total Debt |
| 658.81M | 658.81M | 511.36M | 511.89M | 527.09M | 504.79M | Net Debt |
| 118.33M | 118.33M | 231.62M | 30.56M | 75.13M | 327.05M | Total Liabilities |
| 1.48B | 1.48B | 1.26B | 1.29B | 1.24B | 1.18B | Stockholders Equity |
| 3.52B | 3.52B | 3.20B | 3.57B | 3.62B | 3.41B |
| Cash Flow | Free Cash Flow | ||||
| -14.50M | -29.34M | -108.99M | 55.83M | 219.23M | -54.12M | Operating Cash Flow |
| 548.16M | 383.31M | 211.00M | 362.37M | 425.61M | 165.83M | Investing Cash Flow |
| -595.02M | -395.68M | -370.89M | -265.88M | -244.23M | -188.87M | Financing Cash Flow |
| 246.96M | 273.88M | -41.34M | -67.13M | 92.84M | -85.45M |
Eldorado Gold Technical Analysis
Negative
19.99
Price Trends
21.33
Negative
22.28
Negative
22.35
Negative
Market Momentum
-0.46
Positive
45.00
Neutral
41.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ELD, the sentiment is Negative. The current price of 19.99 is below the 20-day moving average (MA) of 20.45, below the 50-day MA of 21.33, and below the 200-day MA of 22.35, indicating a bearish trend. The MACD of -0.46 indicates Positive momentum. The RSI at 45.00 is Neutral, neither overbought nor oversold. The STOCH value of 41.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ELD.
Eldorado Gold Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $70.09B | 26.83 | 9.10% | 1.66% | 26.99% | -6.63% | |
75 Outperform | $19.05B | 14.65 | 11.11% | 1.13% | 16.53% | 206.89% | |
74 Outperform | $4.08B | 10.11 | 7.33% | ― | 27.29% | ― | |
73 Outperform | $44.32B | 15.30 | 8.83% | 2.29% | 15.40% | 72.49% | |
68 Neutral | $3.11B | 22.11 | 9.75% | ― | 18.32% | ― | |
54 Neutral | $5.10B | ― | -24.08% | 5.99% | -4.17% | -318.18% | |
47 Neutral | $2.64B | -4.00 | -31.55% | 3.33% | 2.93% | -29.90% |
* Basic Materials Sector Average
Performance Comparison
TSE:ELD
Eldorado Gold
19.99
3.94
24.55%
TSE:K
Kinross Gold
16.09
9.09
129.89%
TSE:NGD
New Gold
3.89
1.97
102.60%
TSE:BTO
B2Gold
3.88
0.50
14.69%
TSE:ABX
Barrick Gold
25.68
5.01
24.25%
TSE:AEM
Agnico Eagle
138.72
68.38
97.21%
Eldorado Gold Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -3.85% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
Eldorado Gold had a strong operational and financial year with record gold production, significant strategic milestones, and a robust financial position. However, the company faced challenges with increased costs, higher injury rates, labor market issues at Skouries, and regulatory adjustments to its technical reports.Highlights
Strong Operational Year
Eldorado Gold Corporation had a strong operational and financial year, with Q4 being the strongest quarter, producing 155,668 ounces of gold. The full year saw gold production of 520,293 ounces, a 7% increase over 2023.
Record Production at Lamaque Complex
The Lamaque Complex achieved record production of 196,538 ounces, demonstrating efficiency and capability in operations. The declaration of an inaugural mineral reserve at Ormaque marks a significant milestone in strategic growth.
Financial Performance and Net Earnings
Eldorado Gold Corporation reported net earnings attributable to shareholders of $108 million in Q4 and $301 million for the full year. Adjusted net earnings were $128 million for the quarter and $321 million for the year.
Increase in Cash Flow and Revenue
Cash flow generated by operating activities was $636 million for the full year, with revenue increasing by $314 million due to higher gold prices and sales volumes.
Strong Balance Sheet and Liquidity
The company ended the year with total liquidity of $1.1 billion, including $857 million in cash and cash equivalents, ensuring financial flexibility.
Successful Olympias Labor Negotiations
Successful labor negotiations at Olympias support the 650,000 ton per annum plant expansion, enhancing long-term profitability.
Efemcukuru Mine Life Extension
Efemcukuru mine in Turkey announced a two-year mine life extension with a 23% increase in mineral reserves.
Lowlights
Increased Costs and Royalties
Costs were higher compared to 2023 due to increased royalties driven by higher gold prices, labor cost, and sustaining capital.
Higher Injury Frequency Rate
The lost time injury frequency rate increased to 1.02 in Q4 from 0.42 in the same quarter of 2023.
Challenges in Skouries Project
The Skouries copper-gold project faced slower-than-expected ramp-up due to a tight labor market, resulting in a revised project capital cost increase of $143 million.
Removal of Preliminary Economic Assessment
The British Columbia Securities Commission required removal of the PEA from the Lamaque Complex technical report, impacting inferred resource economics.
Company Guidance
In the Eldorado Gold Fourth Quarter and Year End 2024 Results Conference Call, robust metrics highlighted the company's strong operational and financial performance. The fourth quarter marked the year's strongest production, with 155,668 ounces of gold, contributing to an annual total of 520,293 ounces—a 7% increase over 2023. The Lamaque Complex achieved record production of 196,538 ounces. Eldorado's cash cost was $944 per ounce sold in the fourth quarter, with an annual figure of $940, while the all-in sustaining cost (AISC) was $1,226 per ounce for the quarter and $1,285 annually. The company's financial health was underscored by a $108 million net earnings attributable to shareholders in Q4 2024 and a full-year net earnings of $301 million, driven by higher gold prices and sales volumes. Eldorado ended the year with a total liquidity of $1.1 billion, including $857 million in cash. Safety metrics showed an increased lost time injury frequency rate (LTIFR) of 0.99 in 2024, up from 0.65 in 2023. The company also noted significant advancements at various projects, with Skouries achieving 60% completion of Phase two construction, aiming for first gold production in early 2026.Eldorado Gold Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Eldorado Gold Extends Lamaque Mine Life with Updated Technical Report
Positive
Jan 27, 2025
Eldorado Gold Corporation announced an updated Technical Report for the Lamaque Complex, indicating significant potential value and an extension of the mine’s life. The Reserve Case outlines an 8-year mine life with a production of 1.2 million ounces of gold, while the Preliminary Economic Assessment (PEA) Case suggests the possibility of extending the mine life by an additional 9 years, potentially yielding an extra 1.5 million ounces of gold. These updates reflect solid economic prospects for the company, with substantial after-tax net present values at varying gold prices, and a stable all-in sustaining cost, thereby strengthening Eldorado’s positioning in the Quebec mining industry.
Eldorado Gold Surpasses 2024 Production Guidance with Robust Output
Jan 14, 2025
Eldorado Gold reported a robust gold production of 520,293 ounces in 2024, surpassing the midpoint of its guidance range. This marks a 7% increase compared to 2023, driven by strong performances at the Lamaque Complex and Kisladag mines. The impressive production results underline Eldorado’s strategic focus on maximizing output from its assets, enhancing its position in the gold mining sector. Stakeholders can anticipate continued growth and stability in the company’s operations, as evidenced by its solid fourth-quarter production and adherence to its production guidance.
Eldorado Gold Increases Mineral Reserves in 2024 Update
Dec 11, 2024
Eldorado Gold has reported an increase in its gold mineral reserves, now totaling 11.9 million ounces, bolstered by significant gains at its Lamaque Complex and Efemcukuru sites. The Lamaque Complex saw a 45% boost, largely due to the new Ormaque reserve, while Efemcukuru’s reserves grew by 23%, extending its mine life. This update sets a solid production foundation for Eldorado Gold, with a focus on extending mine life and exploring new prospects.
Eldorado Gold Initiates Share Repurchase Program
Nov 6, 2024
Eldorado Gold Corporation has announced a normal course issuer bid, allowing the company to repurchase up to 350,000 of its common shares through the Toronto Stock Exchange. This move, facilitated by National Bank Financial Inc., is seen as a strategic use of funds to meet future obligations and reflects Eldorado’s commitment to its financial strategies.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.