Focus on Efficiency and Productivity
The management of Eldorado Gold is focusing on improving operational efficiency and productivity to enhance production capabilities and reduce unit costs for the remainder of 2024.
Investment in Development
Specifically in Greece, the Skouries project saw a total investment of $91.9 million in the second quarter of 2024 and $144.4 million in the semester ending on June 30, 2024. By June 30, 2024, the total investment in development exceeded the estimated capital of $920 million.
Projected Capital Expenses for 2024
In 2024, capital expenses are expected to range between 375 and 425 million dollars. Higher expenses are anticipated in the second half as the contractor’s installation escalates and many work fronts open up. Phase 2 of the project had been completed by 49% and the project as a whole was 76% complete, including the first phase of construction.
Detailed mechanical design, since the project resumed, was completed by 72% and procurement has essentially been completed. Construction is progressing smoothly and is expected to be completed on time and within budget.
Exciting Developments in the Mining Industry
The construction of new buildings outside of mineral processing units began during the second quarter of 2024. Work is also progressing on underground development to support mining operations for test fronts in 2025.
Increasing Workforce
Alongside the operational readiness team, approximately 841 people were employed at the site as of June 30, 2024. This number is expected to increase to 1,300 during the course of 2024.
Statement from CEO George Burns
According to George Burns, President and CEO of the company, during the announcement of financial results in Q1, the company is focused on growth and expansion in the mining sector.
Operational Update for Q2 2024
During the second quarter of 2024, our operations were aligned with our targets, thanks to the higher ore grades at our Kışladağ, Lamaque, and Efemçukuru mines. Negotiations for a new collective labor agreement at our Olympias mine led to intermittent work stoppages by the workforce, with minimal impact on production. We are confident that we will reach a mutually beneficial agreement between the Company and the labor unions, demonstrating our commitment to sustainable and productive operations.
Commitment to Sustainable Development
Our commitment to mutual respect and collaboration in order to support the Olympics and develop into a profitable activity in the long term.
Evaluation of Company’s Sustainable Development
Mr. Burns emphasized that the first round of verifications of compliance with the TSM protocols has been completed in all Eldorado mines, starting from the Lamaque complex in 2022 and the Kassandra mines in Greece in 2023.
It is worth noting that Eldorado received AAA, the highest possible rating, for tailings management in all.
Eldorado Gold Reports Increased Revenue in Second Quarter of 2024
Eldorado Gold reported a revenue of $297.1 million in the second quarter of 2024, marking a 30% increase from $229.0 million in the same period in 2023. This significant growth was primarily driven by higher average gold prices and increased sales volumes.
The net cash flows from continuing operating activities reached $112.2 million compared to $75.3 million in the second quarter of 2023, and $207.5 million in the first half of the year. The company’s strong financial performance is a result of its operational efficiency and the positive trends in the gold market.
Financial Performance Report
The company reported a significant increase in cash flows from operating activities in the first half of 2023, reaching $240.5 million compared to $82.4 million in the second quarter. This increase was primarily driven by higher revenues, partially offset by higher income taxes paid.
Cash flows from operating activities before changes in working capital amounted to $132.2 million, demonstrating a strong financial performance. The company also showed an increase in cash reserves, attributed to robust cash flows from operating activities.
Financial Performance Report
During the current fiscal year, the company experienced a significant increase in net profits, mainly due to successful investment activities. Net profits attributable to shareholders from ongoing operations amounted to $56.4 million, or $0.28 per share, compared to $1.5 million, or $0.01 per share in the second quarter of 2023. This increase can be attributed to higher revenues and the total for the semester reached $96.1 million.
