Shares of Eldorado Gold (NYSE:EGO) plunged more than 16% by 2:30 p.m. EDT on Friday. Dragging down the gold-mining stock: its weak first-quarter results.
Eldorado Gold reported an adjusted net loss of $17.9 million, or $0.11 per share, for the first quarter. That came in $0.07 per share below the consensus estimate. The culprit: weak gold sales from its Efemcukuru mine in Turkey. Production at the mine came in below expectations at 43,000 ounces -- much less than the 86,500 ounces it produced in the year-ago period -- due to a contract dispute and weather-related delays in shipping gold. Those issues caused costs to rise compared to last year's first quarter. The company has since entered into new contracts with other customers, and started shipping that gold in April.
On a more positive note, the company started commercial production at Lamaque (in Quebec) during the quarter. It produced 19,678 ounces of gold as part of its precommercial start-up, which has it on track to meet its guidance of 100,000 to 110,000 ounces for 2019. With that, and the resumption of shipments at Efemcukuru to alternative customers, the company remains on pace to achieve its full-year production and cost guidance.
Eldorado Gold battled several issues at its Efemcukuru mine, causing its output, costs, and profitability to miss expectations. The company, however, has started shipping that production to new customers, so it's on track to achieve its full-year forecast. If it does meet those expectations, shares of the gold miner could bounce back in the coming quarters.