By Eldorado Gold Shares Drop on Higher Costs and Lower Production Outlook
Eldorado Gold experienced a significant drop in its shares on Friday morning due to the company’s report of increased costs in its 2024 outlook and a revised four-year production forecast.
Production Expectations
The company anticipates producing between 505,000 and 555,000 ounces of gold in 2024, a slight increase from 2023’s 485,000 ounces. However, the lower end of the range has been adjusted downwards from 515,000 ounces.
Cost Projections
On the other hand, costs are forecasted to rise, with Eldorado estimating total cash costs to increase by approximately 5% year-over-year in 2024 to $840 to $940 per ounce. This exceeds TD’s forecast of $833 per ounce.
Revised 2025 Production Outlook
Eldorado has adjusted its 2025 production outlook downward by 40,000 ounces to a range of 545,000 to 595,000 ounces. This reduction is mainly attributed to lower expectations at Skouries mine, with a projected output of 50,000 to 60,000 ounces, down by 30,000 ounces from the previous estimate.
Future Forecast
Looking ahead to 2026 and 2027, Eldorado Gold’s production outlook remains consistent with previous expectations and TD’s estimates.
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