Eldorado Gold(US:EGO)2025-10-30 21:21Revenue and Earnings - Revenue for Q3 2025 increased to $434.7 million, up 31% from $331.8 million in Q3 2024, and for the nine months ended September 30, 2025, revenue rose to $1,241.7 million from $886.9 million in the same period of 2024[14]. - Net earnings for Q3 2025 were $56.0 million, down from $95.0 million in Q3 2024, with net earnings per share (basic) at $0.28 compared to $0.46 in the prior year[14]. - Net earnings attributable to shareholders from continuing operations were $56.5 million ($0.28 per share) in Q3 2025, down from $101.1 million ($0.49 per share) in Q3 2024[41]. - Adjusted net earnings were $82.3 million ($0.41 adjusted EPS) in Q3 2025, compared to $71.0 million ($0.35 adjusted EPS) in Q3 2024[42]. - The company reported a net loss from discontinued operations of $0.5 million in Q3 2025, compared to a loss of $6.1 million in Q3 2024[116]. Production and Costs - Gold produced in Q3 2025 was 115,190 ounces, a decrease of 8% from 125,195 ounces in Q3 2024, while total gold production for the nine months was 364,852 ounces, consistent with 364,625 ounces in the same period of 2024[25]. - Total cash costs per ounce sold increased to $1,195 in Q3 2025 from $953 in Q3 2024, and all-in sustaining costs rose to $1,679 per ounce sold from $1,335[14]. - Production costs increased to $164.1 million in Q3 2025 from $141.2 million in Q3 2024, driven by higher royalties and labor costs[28]. - Total cash costs averaged $1,195 per ounce sold in Q3 2025, up from $953 in Q3 2024, primarily due to higher royalty expenses and unit costs[31]. - AISC per ounce sold averaged $1,679 in Q3 2025, an increase from $1,335 in Q3 2024, attributed to higher total cash costs and sustaining capital expenditures[31]. Cash Flow and Financial Position - Free cash flow for Q3 2025 was negative at $(87.4) million, compared to $(4.8) million in Q3 2024, while free cash flow excluding Skouries was $76.9 million, down from $98.3 million[14]. - Net cash generated from operating activities decreased to $170.2 million in Q3 2025 from $180.9 million in Q3 2024, mainly due to realized derivative losses and lower gold ounces sold[43]. - Cash and cash equivalents increased to $1,043.9 million as of September 30, 2025, compared to $856.8 million at December 31, 2024, driven by higher gold prices and the sale of G Mining Ventures shares[113]. - The company expects its working capital of $997.9 million as of September 30, 2025, along with future cash flows and access to the undrawn Credit Facility, to be sufficient for planned commitments over the next twelve months[114]. - The company completed drawdowns on the Term Facility totaling €238.8 million ($278.5 million) in the nine months ended September 30, 2025, with cumulative drawdowns amounting to €680.4 million ($798.9 million) since inception[107]. Project Updates - The company tightened its 2025 annual gold production guidance to between 470,000 to 490,000 ounces, with total cash costs and AISC revised upward to between $1,175 to $1,250 and $1,600 to $1,675 per ounce sold, respectively[21]. - Skouries project capital cost estimate was revised to $1.06 billion, with an additional $154 million in accelerated operational capital prior to commercial production[16]. - The Skouries Project is expected to begin copper-gold concentrate production by the end of Q1 2026, with projected 2026 gold production between 135,000 and 155,000 ounces[77]. - The company is assessing the expected disposition of the Certej Project in Romania and planning exploration drilling for new targets[183]. Safety and Operational Performance - The lost-time injury frequency rate (LTIFR) was 1.21 in Q3 2025, compared to 1.10 in Q3 2024, indicating a need for continued focus on workplace safety[24]. - The company is focused on continuous improvements in workplace safety and operational readiness across its projects[183]. Market and Economic Factors - Average realized gold price for Efemcukuru increased to $3,794 per ounce sold in Q3 2025 from $2,636 in Q3 2024[62]. - Average realized gold prices contributed to revenue growth in 2025, although this was partially offset by higher royalties due to revised rates in Turkiye[118]. - The assumptions regarding the future price of gold and other commodities are critical to the company's financial outlook[184]. - The company acknowledges various risks, including development risks at Skouries and the impact of geopolitical and economic factors on operations[187].