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SEC filingEldorado Gold's 2024 net earnings surged to $289M on record revenue of $1.32B, driven by higher gold prices and production, while the Skouries project remained on track for first production in Q1 2026.
Eldorado Gold delivered a strong financial performance in 2024, with revenue reaching $1.32 billion, a 31% increase from $1.01 billion in 2023. Gold production rose 7% to 520,293 ounces, supported by higher grades at Kışladağ and the Lamaque Complex, while the average realized gold price jumped 24% to $2,405 per ounce. Cost of sales increased to $815.6 million from $740.0 million, primarily due to higher production costs (+$85.3 million) and royalties (+$27.6 million) tied to higher gold prices. However, the gross profit (earnings from mine operations) nearly doubled to $507.0 million, yielding a gross margin of 38.3% compared to 26.6% in 2023. Operating income surged to $419.4 million from $182.0 million, largely driven by the improved margin and a $60.0 million non-recurring gain on deferred consideration. Net earnings attributable to shareholders rose to $289.1 million ($1.42 per diluted share) from $104.6 million ($0.54 per share), a 176% increase.
As of December 31, 2024, total assets grew to $5.84 billion from $4.99 billion a year earlier, primarily due to increased cash and property, plant, and equipment. Cash and cash equivalents rose to $856.8 million (from $540.5 million), reflecting strong operating cash flow and Skouries debt drawdowns. Total debt increased to $915.4 million from $636.1 million, mainly from the Term Facility ($424.4 million) and Senior Notes ($491.0 million). Working capital (excluding held-for-sale assets) improved to $1,063.4 million from $639.4 million. The company maintained compliance with all debt covenants. A $350 million revolving credit facility (undrawn balance $239.2 million) provides additional liquidity. Deferred tax liabilities rose to $434.9 million, driven by exchange rate movements and Turkish inflation adjustments.
Net cash generated from operating activities (continuing operations) reached $645.7 million, up 69% from $382.9 million in 2023, driven by higher revenue and production. Cash flow before working capital changes was $635.5 million. Investing activities consumed $630.6 million, including $594.2 million in capital expenditures, with $331.7 million directed to Skouries. Free cash flow was $6.8 million, a sharp improvement from -$47.2 million in 2023; excluding Skouries, free cash flow was $342.0 million. Financing activities provided $301.3 million, primarily from Term Facility drawdowns. The company ended the year with a robust cash position.
Management highlighted that gold production in 2025 is expected to range from 460,000 to 500,000 ounces, with total cash costs between $980 and $1,080 per ounce and all-in sustaining costs between $1,370 and $1,470 per ounce. Skouries remains the key growth catalyst: first production is expected in Q1 2026, with commercial production by mid-2026. The project's capital cost was revised upward to $1.06 billion (from $920 million) due to labour market tightness in Greece, with an additional $154 million in accelerated operational capital. The company also provided a three-year production outlook, anticipating 33% growth driven by Skouries. Strategic priorities include advancing Skouries, developing the Ormaque deposit, completing the Kışladağ engineering study, and expanding Olympias to 650 ktpa.
Segment performance varied across geographic regions. The Turkiye segment (Kışladağ and Efemçukuru) contributed $235.2 million in operating income on $623.4 million revenue, with Kışladağ benefiting from the North Heap Leach Pad and ADR facility. The Canada segment (Lamaque Complex) generated $261.0 million from $473.0 million revenue, driven by record throughput and Ormaque bulk sample processing. The Greece segment posted modest operating income of $10.8 million on $226.2 million revenue, reflecting higher grades at Olympias offset by lower base-metal by-product credits and Skouries development costs. A significant non-cash item was the $60.0 million gain on deferred consideration from the 2021 sale of the Tocantinzinho project, recorded upon commercial production. Unrealized derivative losses totaled $51.8 million, mainly from gold and copper collars/swaps tied to Skouries. The company also recorded $14.6 million in foreign exchange losses on deferred tax balances and a $7.2 million non-recurring tax accrual for historical intercompany loans. Capital allocation focused on investing activities: no share buybacks or dividends were executed, and the company increased debt primarily for Skouries funding.