Eldorado Gold (EGO, ELD.TO) released its production results ahead of the detailed publication of the financial results. The quarterly production of 93,209 ounces of gold across all four projects is definitely light and much lighter than the comparable quarters, and this difference could mainly be explained by the weak performance of the Kisladag gold mine (related to COVID absenteeism and a government-mandated power outage). While three of the four mines posted a production decrease compared to the comparable quarter of 2021 and all four mines posted a lower production on a QoQ basis.
Despite this weak result, Eldorado Gold has reiterated its full-year production guidance of 460,000-490,000 ounces of gold. This means that in order to reach the lower end of the production guidance, the average production rate in the next few quarters will have to exceed 110,000. We should see a big uptick in the Olympias production rate as the production will have to double in the next three quarters for the company to meet the lower end of the full-year production guidance at Olympias where the Q1 production was also impacted by COVID absenteeism and power outages (not government-mandated, but weather-related).
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