Eldorado Gold Corporation (EGO) Bundle
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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