Eldorado Gold Raises Price Target Following Q2 Earnings Beat

Eldorado Gold Corporation's Q2 2025 earnings call saw revenue of $451.7 million, beating estimates, and adjusted net earnings of $90.1 million or $0.44 per share, missing estimates. The company maintained its 2025 annual gold production guidance of 460,000 to 500,000 ounces and announced a normal course issuer bid to purchase up to 5% of its outstanding common shares.

Eldorado Gold Corporation (Eldorado) reported its financial results for the second quarter of 2025, highlighting strong operational performance and significant capital expenditures. The company's revenue for the period reached $451.7 million, surpassing market expectations, while adjusted net earnings came in at $90.1 million or $0.44 per share, slightly missing estimates [1].

Eldorado's gold production for Q2 2025 was 133,769 ounces, up from the planned amount due to accelerated inventory drawdowns and higher throughput at the Lamaque mine. The company sold 131,489 ounces of gold at an average realized price of $3,270 per ounce, contributing significantly to the revenue [2].

Despite the strong operational performance, Eldorado's adjusted net earnings fell short of expectations. The company attributed this to higher royalty payments and costs resulting from the recent increase in royalty rates in Turkey and Greece. Additionally, the company's free cash flow was negative at $61.6 million, primarily due to continued investment in growth capital [2].

Eldorado maintained its 2025 annual gold production guidance of 460,000 to 500,000 ounces. The company expects to achieve the mid-point of this range based on its first-half performance. However, the higher royalty rates and sustained high gold prices are expected to push consolidated total cash costs and AISC for the full year to the high end of its guidance range [2].

To support its operations and growth, Eldorado announced a normal course issuer bid (NCIB) to purchase up to 5% of its outstanding common shares. The company repurchased and cancelled approximately $44.6 million of shares during the second quarter under its NCIB [2].

In conclusion, Eldorado Gold Corporation's Q2 2025 earnings reflect a strong operational performance with significant capital expenditures. The company's revenue exceeded expectations, but adjusted net earnings fell short due to higher costs and royalty payments. Eldorado remains committed to achieving its annual gold production guidance and delivering significant production growth ahead of lower unit costs.

References:
[1] https://www.marketscreener.com/news/eldorado-gold-brief-revenue-of-us-451-7-million-in-q2-2025-adjusted-net-earnings-90-1-million-or-ce7c5fd2d98ef321
[2] https://www.eldoradogold.com/investors/news-releases/eldorado-gold-reports-strong-q2-2025-financial-and-operational-results