Eldorado Gold Sees Production Decline In 2021, Achieves Guidance

Eldorado Gold (TSX: ELD) after the bell last night released its fourth quarter and full year financial results for 2021. Results were highlighted by gold production of 122,582 ounces in the fourth quarter, and 475,850 ounces for the full fiscal year.

While the results beat the initial guidance provided by the company for 2021 as well as hit revised guidance provided for the year, results were still down on a year over year basis. The company had produced 528,874 ounces in 2020, while Q4 2020 had seen production of 138,220 ounces.

Cash operating costs on a year over year basis also increased, from $560 per ounce in 2020 to $626 per ounce in 2021. This increased on a quarterly basis as well, climbing from $536 per ounce in Q4 2020 to $571 per ounce in Q4 2021. All in sustaining costs meanwhile hit $1,069 per ounce in 2021, compared to $921 per ounce in 2020.

In terms of cash flow, cash flow from oeprating activities hit $116.7 million for the fourth quarter and $374.8 million for the full year, compared to $107.3 million in Q4 2020 and $425.6 million through all of 2020. Free cash flow meanwhile hit 62.4 million in 2021, versus $236.2 million in 2020.

Net earnings for the fourth quarter came in at negative $43.1 million, while the full fiscal year saw a gain of $10.8 million. Adjusted EBITDA meanwhile came in at $126.1 million for the fourth quarter, while the full year saw $444.2 million in positive adjusted EBITDA.

Looking forward, the company has indicated that the first half of the year will see lower production than the second half due to weather challenges and ramp-up of operations at Kisladag. The company has currently guided to total production of 460,000 to 490,000 ounces of gold in 2022.

Eldorado Gold last traded at $13.74 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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