Eldorado Gold Posts Second Quarter Net Loss, Maintains Fiscal 2022 Production Guidance

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(Kitco News) – Eldorado Gold (TSX:ELD) announced yesterday that in Q2 2022 the company produced 113,462 ounces of gold, a slight decrease of 2% from Q2 2021 (116,066 ounces) and a 22% increase over Q1 2022 driven by strong production and mine development at Lamaque.

The company also reported a net loss attributable to shareholders from continuing operations of $22.7 million (loss of $0.12 per share) in the second quarter of 2022, compared to net income of $31.0 million (0. $17 per share) in the second quarter of 2021 and a net loss of $339.5 million ($1.85 loss per share). ) during the six months ended June 30, 2022, compared to net income of $45.4 million ($0.25 per share) during the six months ended June 30, 2021.

Eldorado explained that the net loss during the six months ended June 30, 2022 was mainly due to impairment of the Certej project, a non-core gold asset, impairment of decommissioned equipment at Kisladag, lower sales volumes , higher mine waiting costs and a higher income tax expense.

The company said adjusted net income was $13.8 million ($0.08 per share) in the second quarter of 2022, compared to $29.1 million ($0.16 per share) in the second quarter of 2021.

The company said it expects gold production to be weighted in the second half and maintains its 2022 production forecast of 460,000 to 490,000 ounces, adding that it is heading down the range due to production issues in the first quarter of 2022.

Eldorado noted that it is updating its 2022 guidance for consolidated cash operating costs at $700-$750 per ounce sold, total cash costs at $790-$840 per ounce sold and AISC at 1 $180 to $1,280 per ounce sold.

“We had a stable operating quarter, driven by strong production and higher grades at Lamaque and steady operations at Efemcukuru,” commented President and CEO George Burns. “We remain confident in our ability to deliver consolidated production guidance of 460,000 to 490,000 ounces and expect to end the year at the low end of the range.”

“Furthermore, we have revised our consolidated cost guidance for 2022 to reflect lower than expected gold production in the first half of the year, continued inflationary pressures and additional costs associated with import VAT. on shipments of Olympias gold concentrate to China,” he said. .

Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkey, Canada, Greece and Romania.

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Ann J. Cox