2023-04-28 12:20:41 ET
Shares of gold miner Eldorado Gold (NYSE: EGO) rose as much as 10.5% at the start of trading on April 28. As of 11 a.m. ET, the stock had settled to a 8.5% gain. The big news was the precious metals company's first-quarter 2023 earnings release, which hit the market after the close on April 27. Investors clearly liked what they saw.
Production increased 21% year over year in the opening stanza of 2023. Higher production allowed the company to spread costs over more ounces, which helped to reduce all-in sustaining costs from $1,346 per ounce in the first quarter of 2022 to $1,184 this year. And, on top of that, the average realized price per ounce of gold sold rose to $1,932 in the first quarter of 2023 from $1,889 in the year-ago period. Basically, everything was moving in the right direction.
As a result of all that, revenue increased to $229.4 million from $194.7 in Q1 2022. The bottom line also improved, with adjusted earnings of $0.11 per share versus a loss of $0.11 per share a year ago. It's little wonder that investors were pleased with the update. Also of note, Eldorado highlighted further advancement on the company's Skouries project, including nailing down a material portfolio of the project's financing needs. This capital investment is expected to meaningfully increase the miner's production while also helping to reduce all-in sustaining costs.
For further details see:
Why Eldorado Gold Stock Rose as Much as 10.5% in Early Trading Today