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SEC filingEldorado Gold delivered a strong turnaround in 2023 with $1.01B revenue, net income of $104.6M versus a prior-year loss, driven by higher gold prices and production.
Eldorado Gold reported a transformative year in 2023, swinging from a net loss of $353.8 million in 2022 to net income of $104.6 million attributable to shareholders. Revenue rose 15.7% to $1,008.5 million, driven by a 7% increase in gold production (485,139 ounces) and a 9% higher average realized gold price of $1,944 per ounce. Gross profit (earnings from mine operations) more than doubled to $268.5 million, reflecting margin expansion from 19.8% to 26.6% as cost controls and higher by-product credits offset inflationary pressures. Operating income surged to $182.0 million from $41.7 million, bolstered by lower mine standby costs ($16.1 million vs $34.4 million) and favorable foreign exchange ($16.0 million gain). Basic EPS of $0.54 compared favorably to a loss of $1.93 per share in 2022, with diluted EPS also at $0.54.
The company ended 2023 with $540.5 million in cash and equivalents and $541.6 million including term deposits, a significant increase from $314.7 million a year earlier, driven by debt and equity financings. Total assets grew to $4.99 billion. Debt rose to $636.1 million, primarily due to the drawdown of the €680.4 million Term Facility (used for Skouries) and the $500 million senior notes unchanged. Working capital improved to $639.4 million from $404.3 million. The revolving credit facility had $110.2 million available net of letters of credit. The company believes it has sufficient liquidity to meet its commitments for the next twelve months.
Operating cash flow from continuing operations was $382.9 million, up 81% from $211.2 million in 2022, driven by higher earnings and lower income taxes paid. However, heavy investing activities—driven by growth capital at Skouries ($153.8 million), Kisladağ waste stripping, and other projects—resulted in negative free cash flow of $47.2 million. Excluding Skouries, free cash flow was positive $112.6 million, demonstrating the underlying cash generation of the existing mines. Capital expenditures totaled $411.2 million (accrual basis), of which $121.8 million was sustaining capital. Financing activities provided net cash of $273.9 million, including equity raises ($168.7 million) and debt proceeds ($181.3 million) offset by interest payments.
Management highlighted a 45% expected increase in gold production over four years, driven by Skouries, and provided 2024 guidance of 505,000–555,000 ounces at total cash costs of $840–$940 per ounce and AISC of $1,190–$1,290 per ounce. Skouries remains on track for first copper-gold concentrate in Q3 2025, with a revised capital estimate of $920 million (up 9%). The company continues to advance growth initiatives at Perama Hill, Olympias expansion, Ormaque discovery, and exploration in Turkey and Quebec. Key risks include foreign operations (Turkey, Greece), development risks at Skouries, Red Sea shipping disruptions, inflation, and community relations. The company maintains a hedging program for gold, copper, interest rates, and foreign exchange to manage cash flow variability during Skouries construction.
Segment performance improved across the board: Turkiye mine earnings rose to $150.8 million from $89.3 million; Canada (Lamaque) to $148.0 million from $124.3 million; Greece (Olympias) narrowed its loss to $30.3 million from $41.4 million. The company recognized a number of significant non-recurring items: a $59.4 million deferred tax benefit from Turkish hyperinflation accounting, a $22.6 million deferred tax charge from Turkish tax rate changes, a $9.7 million asset write-down, and $9.6 million unrealized derivative losses. Share-based compensation was $10.2 million. The company has no dividends and minimal share buybacks ($4.4 million). Total debt includes $498.3 million in senior notes (net) and $143.4 million in Term Facility borrowings. The company's effective tax rate was impacted by Turkish rate changes and hyperinflation adjustments. Total cash costs and AISC per ounce improved year-over-year, with Kisladağ and Olympias showing the most significant cost reductions.