Gold and base metals producer Eldorado Gold, which has operations in Turkey, Canada, Greece, Romania and Brazil, achieved a 35% year-on-year increase in gold production to 136 922 oz for the third quarter ended September 30.

All-in sustaining costs (AISC) of $918/oz were lower than the AISC of $1 031/oz in the third quarter of 2019 and were negatively impacted on by an incremental 25% increase in gold royalty rates in Turkey.

Eldorado has, however, maintained its full-year guidance at between 520 000 oz and 550 000 oz of gold and an all-in sustaining cost of $850/oz to $950/oz.

Net cash generated from operating activities of $165.4-million was significantly higher than the net cash of $51.2-million generated in the third quarter of 2019, primarily as a result of higher sales volumes, a higher average realised gold price and the timing of certain payments.

Eldorado sold 137 704 oz of gold in the quarter under review, compared with the 99 241 oz sold in the prior comparable period.

Free cash flow of $117.2-million was also considerably higher than the free cash flow of $16.7-million reported for the third quarter of 2019 as a result of increased cash from operations.

Eldorado's net earnings increased to $41-million, from $4.2-million in the prior comparable period, while adjusted net earnings increased to $56.7-million, from $7.6-million in the third quarter of 2019.

Earning before interest, taxes, depreciation and amortisation (Ebitda) increased to $162.5-million, from $73.2-million in the prior comparable period, and adjusted Ebitda increased to $163.9-million, from $75.9-million in the prior comparable period.

“This quarter continues the positive results we have delivered over the last 18 months. We are driving significant value from our operations, demonstrated by steady production and lower costs that are flowing through to our bottom line.

"This is the second consecutive quarter we have delivered across all key metrics, again generating significant free cash flow and adjusted net earnings. We remain committed to reducing our debt and decreased our senior secured notes by nearly $60-million in the quarter.

"I'm pleased to report that our balance sheet is in the strongest position it has been in several quarters and this positions us well as we look to develop the growth opportunities in our portfolio," comments president and CEO George Burns.

Further, reporting on the progress at its operations in Greece, Eldorado notes that the Greek Ministry of Environment has granted the company permits to conduct surface exploration drilling in the Stratoni area.

Eldorado has also renewed its operating permit for Olympias, which allows for production of up to 470 000 t/y. 

Meanwhile, the relocation of an ancient mining furnace from the Skouries openpit area started in the third quarter.