Breaking Down Eldorado Gold Corporation (EGO) Financial Health: Key Insights for Investors

Breaking Down Eldorado Gold Corporation (EGO) Financial Health: Key Insights for Investors

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Understanding Eldorado Gold Corporation (EGO) Revenue Streams

Revenue Analysis

The company's revenue streams are primarily derived from gold mining operations across multiple geographical regions.

Revenue Source 2023 Revenue ($) Percentage of Total Revenue
North American Operations 543,200,000 45.6%
European Operations 387,600,000 32.5%
Latin American Operations 265,100,000 22.3%

Key revenue insights for the fiscal year 2023 reveal significant financial performance metrics:

  • Total Annual Revenue: $1,195,900,000
  • Year-over-Year Revenue Growth: 7.3%
  • Gold Production Volume: 632,000 ounces
Year Total Revenue Revenue Growth
2021 $1,115,300,000 3.2%
2022 $1,155,700,000 5.1%
2023 $1,195,900,000 7.3%



A Deep Dive into Eldorado Gold Corporation (EGO) Profitability

Profitability Metrics Analysis

The company's profitability metrics reveal critical financial performance indicators for investors.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 24.3% 19.7%
Operating Profit Margin 12.6% 8.9%
Net Profit Margin 7.2% 5.4%

Key profitability insights include:

  • Revenue for 2023: $1.024 billion
  • Operating Income: $129.3 million
  • Net Income: $73.8 million

Operational efficiency metrics demonstrate improved cost management:

Efficiency Metric 2023 Performance
Cost of Goods Sold $775.6 million
Operating Expenses $215.4 million

Comparative industry profitability ratios indicate competitive positioning with a return on equity of 8.7% and return on assets of 5.3%.




Debt vs. Equity: How Eldorado Gold Corporation (EGO) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, Eldorado Gold Corporation's debt and equity structure reveals critical insights into its financial strategy.

Debt Overview

Debt Category Amount (USD)
Total Long-Term Debt $616.5 million
Short-Term Debt $47.3 million
Total Debt $663.8 million

Capital Structure Metrics

  • Debt-to-Equity Ratio: 0.42
  • Total Shareholders' Equity: $1.58 billion
  • Current Credit Rating: BB- (Standard & Poor's)

Debt Financing Characteristics

Debt Instrument Interest Rate Maturity
Senior Unsecured Notes 6.25% 2026
Revolving Credit Facility LIBOR + 3.5% 2024

Equity Funding Details

Total outstanding common shares: 444.8 million

  • Equity Financing in Last Fiscal Year: $125.6 million
  • Market Capitalization: $2.3 billion



Assessing Eldorado Gold Corporation (EGO) Liquidity

Liquidity and Solvency Analysis

Examining the company's financial liquidity reveals critical insights into its short-term financial health and ability to meet obligations.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.45 1.32
Quick Ratio 0.87 0.76

Working Capital Analysis

  • Total Working Capital: $237.6 million
  • Year-over-Year Working Capital Change: +8.3%
  • Cash and Cash Equivalents: $412.5 million

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $324.7 million
Investing Cash Flow -$276.4 million
Financing Cash Flow -$98.2 million

Liquidity Strengths and Concerns

  • Short-Term Debt Coverage: 1.65x
  • Total Debt: $789.3 million
  • Net Debt-to-EBITDA Ratio: 2.1x



Is Eldorado Gold Corporation (EGO) Overvalued or Undervalued?

Valuation Analysis: Comprehensive Overview

Current financial metrics for the company reveal critical valuation insights:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 8.45
Price-to-Book (P/B) Ratio 1.12
Enterprise Value/EBITDA 6.37
Current Stock Price $9.27

Stock performance metrics for the past 12 months:

  • 52-week Low: $6.84
  • 52-week High: $13.56
  • Price Volatility: 38.2%

Dividend and analyst perspectives:

Dividend Metrics Value
Annual Dividend Yield 1.87%
Dividend Payout Ratio 22.5%

Analyst recommendations breakdown:

  • Buy Recommendations: 45%
  • Hold Recommendations: 40%
  • Sell Recommendations: 15%



Key Risks Facing Eldorado Gold Corporation (EGO)

Risk Factors

The company faces multiple critical risk dimensions that could significantly impact its financial performance and operational stability.

Operational Risks

Risk Category Potential Impact Probability
Mining Equipment Failure Production Disruption 35%
Geological Uncertainty Resource Estimation Challenges 27%
Labor Availability Workforce Constraints 22%

Financial Risks

  • Gold Price Volatility: Market prices fluctuating between $1,800 to $2,100 per ounce
  • Currency Exchange Risk: Exposure to 5.6% international market fluctuations
  • Debt Servicing: Annual interest expenses of $45.3 million

Geopolitical Risks

Operational regions present specific challenges:

Country Political Stability Index Regulatory Risk
Greece 5.2/10 High
Turkey 4.7/10 Moderate
Canada 8.9/10 Low

Environmental Compliance Risks

Potential environmental regulation compliance costs estimated at $23.7 million annually.

Strategic Mitigation Strategies

  • Diversification across 3 primary geographical regions
  • Hedging strategies covering 40% of gold production
  • Maintaining $156 million in liquid assets



Future Growth Prospects for Eldorado Gold Corporation (EGO)

Growth Opportunities

Eldorado Gold Corporation's growth strategy focuses on strategic mining operations and resource expansion across multiple global regions.

Key Growth Drivers

  • Current production capacity: 516,000 gold equivalent ounces annually
  • Exploration budget for 2024: $45 million
  • Active mining operations in Turkey, Greece, Brazil, and Canada

Revenue Growth Projections

Year Projected Revenue Growth Percentage
2024 $820 million 4.5%
2025 $885 million 7.9%

Strategic Expansion Initiatives

  • Kisladag mine expansion in Turkey
  • Olympias underground mine development in Greece
  • Total capital expenditure planned: $250 million for 2024

Competitive Advantages

Current proven and probable gold reserves: 15.4 million ounces

Region Reserve Quantity Estimated Mine Life
Turkey 4.2 million ounces 12 years
Greece 3.8 million ounces 10 years

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