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Eldorado Gold Corp. (EGO - Free Report) is riding the highs of record gold prices in 2024. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by the triple digits in 2024.
Eldorado Gold is a gold and base metals producer with mining, development and exploration operations in Turkiye, Canada and Greece. Headquartered in Vancouver, Canada, it has a market cap of $3.3 billion.
Another Beat in the Second Quarter of 2024
On July 25, 2024, Eldorado Gold reported its second quarter 2024 results and beat on the Zacks Consensus by $0.07. Earnings were $0.33 versus the consensus of $0.26.
It was Eldorado Gold's 7th consecutive earnings beat.
Gold production was in line with the company's expectations for the quarter at 122,319 ounces. That was an increase of 12% from the prior year's quarter due to a 22% increase in production at Lamaque and 14% at Kisladaq. Production was slightly offset by lower production at Olympias due to intermittent work stoppages during ongoing negotiations for a new collective bargaining agreement.
Gold sales of 121,226 ounces were at an average realized gold price per ounce sold of $2,336. Gold sales rose 10% from the year ago period primarily due to the increased production at Lamaque and Kisladaq.
Production costs rose to $127.8 million from $116.1 million due to higher sales volumes as well as slightly higher cash costs.
Maintained its Production and Cost Outlook for 2024
Eldorado Gold still expects to produce 505,000 to 555,000 ounces of gold this year. Production continues to be weighted to the second half of the year.
Total cash costs are still expected to be between $840 and $940 per ounce sold and an average all-in sustaining costs (AISC) of $1,190 to $1,290 per ounce sold.
Analysts Are Bullish on 2024
With gold hitting new highs, and Eldorado Gold reaffirming its 2024 production, the analysts are bullish.
5 earnings estimates have been raised for 2024 in the last 60 days pushing up the Zacks Consensus to $1.35 from $1.09 in that period. It made just $0.57 last year so that is earnings growth of 136.8%.
But while 3 earnings estimates have also been revised higher for 2025, the consensus is only looking for $1.28 which is a decline of 4.9%.
It's still early to be looking at 2025, however.
Here's what it looks like on the price and consensus chart. This is what investors want to see: an earnings consensus that is going up and to the right.
Image Source: Zacks Investment Research
Shares Bust Out to New 5-Year Highs
Shares of Eldorado Gold have rallied this year and have surged to new 5-year highs. But over those 5 years, the shares have also beat the return on gold itself.
Image Source: Zacks Investment Research
Eldorado Gold is still cheap, even after the rally. With earnings on the rise, it has a forward P/E of just 11.9.
Unlike some other gold producers, however, Eldorado does not pay a dividend.
Zacks only has two #1 Rank (Strong Buy) stocks in the gold mining industry right now. Eldorado Gold is one of the two.
For investors looking for a mid-cap gold miner, Eldorado Gold should be on your short list.
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Bull of the Day: Eldorado Gold (EGO)
Eldorado Gold Corp. (EGO - Free Report) is riding the highs of record gold prices in 2024. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by the triple digits in 2024.
Eldorado Gold is a gold and base metals producer with mining, development and exploration operations in Turkiye, Canada and Greece. Headquartered in Vancouver, Canada, it has a market cap of $3.3 billion.
Another Beat in the Second Quarter of 2024
On July 25, 2024, Eldorado Gold reported its second quarter 2024 results and beat on the Zacks Consensus by $0.07. Earnings were $0.33 versus the consensus of $0.26.
It was Eldorado Gold's 7th consecutive earnings beat.
Gold production was in line with the company's expectations for the quarter at 122,319 ounces. That was an increase of 12% from the prior year's quarter due to a 22% increase in production at Lamaque and 14% at Kisladaq. Production was slightly offset by lower production at Olympias due to intermittent work stoppages during ongoing negotiations for a new collective bargaining agreement.
Gold sales of 121,226 ounces were at an average realized gold price per ounce sold of $2,336. Gold sales rose 10% from the year ago period primarily due to the increased production at Lamaque and Kisladaq.
Production costs rose to $127.8 million from $116.1 million due to higher sales volumes as well as slightly higher cash costs.
Maintained its Production and Cost Outlook for 2024
Eldorado Gold still expects to produce 505,000 to 555,000 ounces of gold this year. Production continues to be weighted to the second half of the year.
Total cash costs are still expected to be between $840 and $940 per ounce sold and an average all-in sustaining costs (AISC) of $1,190 to $1,290 per ounce sold.
Analysts Are Bullish on 2024
With gold hitting new highs, and Eldorado Gold reaffirming its 2024 production, the analysts are bullish.
5 earnings estimates have been raised for 2024 in the last 60 days pushing up the Zacks Consensus to $1.35 from $1.09 in that period. It made just $0.57 last year so that is earnings growth of 136.8%.
But while 3 earnings estimates have also been revised higher for 2025, the consensus is only looking for $1.28 which is a decline of 4.9%.
It's still early to be looking at 2025, however.
Here's what it looks like on the price and consensus chart. This is what investors want to see: an earnings consensus that is going up and to the right.
Image Source: Zacks Investment Research
Shares Bust Out to New 5-Year Highs
Shares of Eldorado Gold have rallied this year and have surged to new 5-year highs. But over those 5 years, the shares have also beat the return on gold itself.
Image Source: Zacks Investment Research
Eldorado Gold is still cheap, even after the rally. With earnings on the rise, it has a forward P/E of just 11.9.
Unlike some other gold producers, however, Eldorado does not pay a dividend.
Zacks only has two #1 Rank (Strong Buy) stocks in the gold mining industry right now. Eldorado Gold is one of the two.
For investors looking for a mid-cap gold miner, Eldorado Gold should be on your short list.