Shares drop as company reports increased costs and reduced production forecast

  • Eldorado Gold shares down 9.7% on higher costs in 2024
  • Four-year production outlook downgraded
  • 2024 gold production expected to be between 505,000 and 555,000 ounces
  • Costs forecasted to rise by about 5% in 2024
  • 2025 production outlook lowered by 40,000 ounces

Eldorado Gold shares experienced a significant decline of 9.7% due to higher costs and a downgraded four-year production outlook. The company announced that it expects to produce between 505,000 and 555,000 ounces of gold in 2024, up from 485,000 ounces in 2023. However, the lower end of the range was slightly reduced from 515,000 ounces. The reduction primarily occurred at Kisladag in Turkey, but was partially offset by stronger production expectations at Olympias in Greece. Additionally, Eldorado forecasts a 5% year-over-year increase in total cash costs in 2024, exceeding TD’s forecast. The 2025 production outlook was also lowered by 40,000 ounces, primarily at Skouries. Despite these adjustments, the outlook for 2026 and 2027 remains consistent with previous expectations and TD’s estimates.

Factuality Level: 7
Factuality Justification: The article provides specific details about Eldorado Gold’s 2024 outlook, production expectations, and cost forecasts. It includes quotes from an analyst to provide additional context. The information presented seems factual and based on the company’s official statements.
Noise Level: 3
Noise Justification: The article provides specific information about Eldorado Gold’s 2024 outlook, production, and costs. It includes quotes from an analyst and details about the company’s operations in different locations. The article stays on topic and does not contain irrelevant information. However, it lacks in-depth analysis, antifragility considerations, and accountability of powerful people. It could benefit from more context and insights into the broader implications of the company’s outlook.
Financial Relevance: Yes
Financial Markets Impacted: Eldorado Gold
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the financial impact of Eldorado Gold’s higher costs and lower production outlook for 2024. This information is relevant to financial markets and specifically impacts Eldorado Gold as a company.
Public Companies: Eldorado Gold (N/A)
Key People: Steven Green (Analyst at TD Cowen)

Reported publicly: www.marketwatch.com