Eldorado Gold Corporation (EGO) Q2 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call presented strong financial performance with a significant revenue increase, driven by elevated gold prices, and a positive free cash flow when excluding Skouries investments. The expansion of the share repurchase program and strategic investments in Skouries and other projects indicate confidence in long-term growth. Despite some concerns about production delays and increased costs, management's optimistic guidance and strategic initiatives suggest a positive outlook. Given the market cap of approximately $3 billion, the stock is likely to experience a positive movement of 2% to 8%.
Key Financial Performance
Gold Production Achieved 133,769 gold ounces in Q2 2025, a 15% increase compared to Q1 2025. Reasons include higher throughput at Lamaque due to early processing of Ormaque bulk sample and optimization efforts at K??lada?.
Total Cash Costs $1,064 per ounce sold in Q2 2025, higher compared to 2024 due to increased royalties from record high gold prices and higher labor costs.
All-in Sustaining Costs (AISC) $1,520 per ounce sold in Q2 2025, higher compared to 2024 for similar reasons as total cash costs.
Net Earnings $139 million or $0.68 per share in Q2 2025, driven by higher average realized gold prices and strong gold sales, partially offset by increased production costs and income tax expenses.
Adjusted Net Earnings $90 million or $0.44 per share in Q2 2025, excluding one-time items like a $23 million foreign exchange gain and a $19 million unrealized gain on derivative instruments.
Free Cash Flow Negative $62 million in Q2 2025, but positive $62 million excluding capital investments in the Skouries project, compared to $34 million in Q2 2024. Reasons include strong operating asset performance and elevated gold prices.
Revenue $452 million in Q2 2025, a 52% increase from $297 million in Q2 2024, driven by a 40% rise in average realized gold price to $3,270 per ounce.
Production Costs $162 million in Q2 2025, a $34 million increase from Q2 2024, due to higher gold volumes sold and increased royalties.
Growth Capital Investments $47 million in Q2 2025, supporting projects like waste stripping at K??lada? and water management at Lamaque.
Tax Expense $45 million in Q2 2025, up from $21 million in Q2 2024, due to improved profitability in Canada and Türkiye.
Operating Highlights
Gold Production: Achieved safe production of 133,769 gold ounces in Q2 2025, with Lamaque Complex and K??lada? exceeding expectations. Production guidance for 2025 is between 460,000 and 500,000 ounces.
Skouries Project: First stages of open pit mining commenced, with first oxide ore mined. Progress on construction is at 70%, with first copper-gold concentrate production expected in Q1 2026.
Olympias Mill Expansion: Mill expansion to 650,000 tonnes per annum is underway, with completion now anticipated by mid-2026.
Gold Prices: Average realized gold price increased by 40% to $3,270 per ounce in Q2 2025, compared to $2,336 per ounce in Q2 2024.
Share Repurchase Program: Repurchased over 28 million shares at a cost of $58 million year-to-date, with the program expanded to include the New York Stock Exchange.
Cost Management: Total cash costs were $1,064 per ounce sold, and all-in sustaining costs were $1,520 per ounce sold, impacted by higher royalties and labor costs.
Operational Efficiencies: Efemçukuru and Olympias stabilized production, with Olympias achieving a 35% improvement in gold production and a 34% decrease in costs over Q1 2025.
Sustainability and Safety: Introduced the Courageous Safety Leadership program and received multiple awards for sustainability and safety efforts in Canada and Greece.
Portfolio Diversification: Advancing Skouries project to include copper production by 2026, creating diversification in the product portfolio.
Risk or Challenges
Lost Time Injury Frequency Rate (LTIFR): The LTIFR increased from 0.40 in Q2 2024 to 0.95 in Q2 2025, indicating a decline in safety performance. This poses operational risks and potential disruptions.
Higher Production Costs: Production costs increased by $34 million compared to Q2 2024, driven by higher royalties, labor costs, and taxes. This could pressure profit margins.
Free Cash Flow: Free cash flow was negative $62 million in Q2 2025, primarily due to capital investments in the Skouries project. This could strain liquidity if sustained.
Skouries Project Risks: The Skouries project requires significant capital investment ($117 million in Q2 2025) and is on a tight schedule. Delays or cost overruns could impact financial performance.
Olympias Mill Expansion Delays: The mill expansion at Olympias has been delayed to mid-2026 due to permitting and engineering issues, potentially affecting production targets.
Currency and Tax Impacts: Strengthening of the euro against the U.S. dollar increased costs at Olympias, and higher tax expenses impacted profitability.
Geometallurgical Study Delays: The geometallurgical study for K??lada? has been delayed to Q1 2026, which could affect future operational planning and efficiency.
Guidance & Outlook
Gold Production Guidance: The company expects to produce between 460,000 and 500,000 ounces of gold in 2025, with production likely to be around the midpoint of this range based on first-half performance.
Cost Projections: Total cash costs and all-in sustaining costs for the full year are expected to be at or above the high end of the guidance range due to elevated gold prices, higher royalties, and increased labor costs.
Skouries Project Timeline: The Skouries copper-gold project is expected to achieve first copper-gold concentrate production in Q1 2026 and commercial production by mid-2026. The project capital guidance for 2025 is $400 million to $450 million.
Olympias Mill Expansion: The mill expansion at Olympias to 650,000 tonnes per annum is now anticipated to be completed by mid-2026 due to delays in permitting and engineering detail.
Kisladag Circuit Expansion: The expansion of the secondary crusher circuit at Kisladag has been accelerated to facilitate operational de-bottlenecking and reduce wear on the high-pressure grinding roll circuit.
Geometallurgical Study at Kisladag: The geometallurgical study for future mining phases at Kisladag is now expected to be completed in Q1 2026 due to slower-than-expected progress in drilling, core logging, and metallurgical testing.
Shareholder Return Plan
Expanded Normal Course Issuer Bid (NCIB): The NCIB was reapproved and expanded to include the New York Stock Exchange in addition to the Toronto Stock Exchange. Year-to-date, over 28 million shares have been repurchased at a cost of $58 million. The company views repurchasing shares at current market prices as a prudent way to deploy capital while continuing to invest in long-term growth.
Key Q&A
Earnings Word Cloud
EGO Transcript
The earnings call presented strong financial performance with a significant revenue increase, driven by elevated gold prices, and a positive free cash flow when excluding Skouries investments. The expansion of the share repurchase program and strategic investments in Skouries and other projects indicate confidence in long-term growth. Despite some concerns about production delays and increased costs, management's optimistic guidance and strategic initiatives suggest a positive outlook. Given the market cap of approximately $3 billion, the stock is likely to experience a positive movement of 2% to 8%.
The earnings call indicates strong revenue growth and improved cash flow, despite increased costs and tax expenses. The Q&A section reveals confidence in project completion and shareholder value return, boosting sentiment. However, caution is warranted due to increased costs and lack of clear guidance on NCIB. The market cap suggests moderate sensitivity, leading to a prediction of a 2% to 8% stock price increase.
The earnings call summary presents a mixed picture. Financial performance shows increased net earnings and cash flow, but with negative free cash flow and increased costs. The Q&A reveals some uncertainties, particularly regarding underground development and inflationary pressures. However, optimistic guidance on production and liquidity provides balance. The market cap suggests moderate reaction, leading to a neutral prediction.
The earnings call presents a mixed picture. While net earnings and cash flow from operations have improved, free cash flow remains negative due to capital investments. The Q&A section reveals some uncertainties, particularly regarding production optimization and labor costs. However, management's optimistic outlook on future production and no significant operational disruptions suggest stability. Given the market cap and mixed signals, the stock is likely to remain neutral in the short term.
EGO Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
