Eldorado Gold Corp (NYSE: EGO) recently reported the company’s first financial and operational results for the second quarter of 2021. Gold production totaled 116,066 ounces in the quarter, a 16% decrease from 137,782 ounces in the second quarter of 2020 and a 4% increase from the first quarter of 2021.
Maintaining production guidance
The company maintains its 2021 annual production guidance of 430,000-460,000 ounces of gold at an all-in sustaining cost of $920-1,150 per ounce sold. The all-in sustaining cost of $1,074 per ounce of gold sold in the quarter increased from $859 per ounce sold in 2020 due to lower production in the quarter. Also, it increased from $986 per ounce sold in 1Q2021 mainly due to AISC in that quarter benefiting from a reversal of accrued royalty expense.
Net loss attributable to shareholders of the company in 2Q2021 was $0.31 loss per share ($ 55.7 million) compared to $0.29 in earnings per share ($49.1 million) in 2Q2020 and earnings of $0.07 per share ($11.9 million). Adjusted net earnings attributable to shareholders of the company in 2Q2021 were $0.07 per share ($29.3 million) compared to $0.14 earnings per share (24.6 million) in 1Q2021 and $0.28 earnings per share ($47.2 million) in 2Q2020.
EBITDA was $7.6 million in 2Q2021 compared to $131.8 million in 1Q2021 and $105.3 million in 2Q2020. Adjusted EBITDA was $101.9 million in 2Q2021 compared to $135.8 million in a similar period last year and $108 million in the first quarter of 2021.
Negative free cash flow of $36.6 million in 2Q2021 decreased from a free cash flow of $63.4 million in a similar period last year. A decrease from free cash flow of $24.6 million in the first quarter was primarily due to increased growth capital spending, increased tax payments, and the timing of royalty and interest payments. The company expects free cash flow generation to improve in the second part of 2021.
Debt payments in the second quarter included $50 million on the company’s revolving credit facility and $22 million on the company’s term loan. By June 30, 2021, the company had $410.7 million cash, cash equivalents, term deposits, and approximately $150 million available under its revolving credit facility.