Eldorado Gold NYSE: EGO executives told investors the company’s first quarter results tracked expectations and full-year guidance, with 2026 positioned as a “back half-weighted” year as two new mines move toward production and several existing operations are expected to deliver stronger results later in the year.
On the company’s first quarter 2026 results call, Chief Executive Officer George Burns said Eldorado had “a very busy and solid start to 2026,” while continuing to advance its two key growth projects: Skouries in Greece and McIlvenna Bay in Saskatchewan. Burns said McIlvenna Bay is “nearing first concentrate production,” with Skouries expected to reach first concentrate production in the third quarter.
Growth projects: McIlvenna Bay integration and Skouries construction nearing completion
Burns highlighted the Foran transaction as “a significant milestone” and said Eldorado has begun integration work at McIlvenna Bay as the project approaches first concentrate production. Following the close, Eldorado approved approximately $17 million in exploration spending for the remainder of 2026, citing what Burns called a “target-rich environment” and the potential for exploration success to “drive meaningful long-term value.”
Burns said Eldorado expects to provide additional detail with second quarter results, including:
- McIlvenna Bay production and cost outlook for 2026
- Timing for an expansion study
- Progress on a study for a potential lead-silver circuit
In the Q&A session, Chief Operating Officer Simon Hille said the project was in “hot commissioning,” describing it as the stage where ore is introduced into parts of the process to test components and link systems on a sequential basis. Hille told analysts the company expected to see McIlvenna Bay “running in this month.”
At Skouries, Burns said construction progress was about 94% at quarter-end. However, as the project moves through the final phase, Eldorado updated its forecast to complete and revised total project capital to $1.315 billion, an increase of about $155 million. Burns said the primary driver was higher construction workforce levels to maintain momentum, with total workforce rising from 2,350 in mid-first quarter to about 3,200, including roughly 490 in operations.
The company also updated expectations for accelerated operational capital at Skouries to about $260 million, reflecting an incremental $82 million to expand pre-commercial mining and site works to support open-pit mining and advance underground development ahead of first production. Burns said Eldorado had stockpiled more than 2.8 million tons of ore, representing the entire planned mill tonnage for 2026.
Operationally, Burns said work on the process plant was focused on final mechanical installations and electrical and instrumentation work, as well as cabling, ahead of first ore. He noted temporary replacement equipment related to damaged cyclone feed pump variable speed drives was expected to be installed in the second quarter. Pre-commissioning was underway on multiple systems, and wet commissioning had started on process water pumps and tailing thickeners.
Skouries capex increase: labor, materials, FX and owner costs
Analysts pressed management on the Skouries capital increase and whether labor-driven costs could translate into higher operating costs. Burns said there was “no read-through” to operating costs and attributed the increase to additional labor required to complete electrical and instrumentation work, including bringing in three EU contractors “to help ensure we can maintain the early Q3 startup of the plant.” He said operating manpower levels were expected to come in as planned and that the company had experienced “normal inflationary pressure” on labor.
Burns said about 60% of the Skouries capex increase was tied to additional contract workforce, with the balance split among materials, foreign exchange, and owner support costs. He provided additional detail on specific items, including about $15 million in materials, around $15 million in foreign exchange impacts, and other components including additional fire protection in the dry stack filter plant, additional spares, and generator sets to support pre-commissioning while awaiting power connection.
Burns described power connection as the key remaining risk to timing, saying Eldorado’s ability to start up in early versus mid-third quarter would depend largely on coordination and checks with Greece’s Public Power Corporation. He said any slip related to power connection was not expected to be a cost impact, and that the construction workforce would be ramped down rapidly once construction is completed around mid-year.
Quarterly financial results: higher gold price lifts revenue and earnings
Chief Financial Officer Paul Ferneyhough said Eldorado produced 100,358 ounces of gold in the first quarter, down 13% year-over-year. He attributed the decline primarily to “lower tons at stack grades at Kışladağ and lower grades at Efemçukuru,” partially offset by higher grades and improved recoveries at Olympias and Lamaque.
Gold sales totaled 100,619 ounces at an average realized gold price of $4,891 per ounce, generating revenue of more than $532 million, up 50% from $355 million in the prior-year quarter. Ferneyhough said the increase was driven by “significantly higher gold prices.”
Production costs were $188 million, up from just over $148 million, driven primarily by higher royalty expense in Türkiye and Greece—about 70% of the increase—along with labor inflation in Türkiye and incremental labor and contractor costs tied to continued development at Lamaque. Royalty expense increased to $50 million from $22 million, reflecting higher realized gold prices and higher royalty rates, partially offset by lower sales volumes.
On a unit basis, Ferneyhough said total cash costs averaged $1,470 per ounce sold versus $1,153 a year ago, and all-in sustaining costs averaged $1,942 per ounce sold versus $1,559, citing higher royalties in the higher gold price environment, lower production, and labor cost impacts.
Net earnings attributable to shareholders from continuing operations were $136 million, or $0.69 per share, compared with $72 million, or $0.35 per share, a year earlier. Adjusted net earnings were $188 million, or $0.95 per share, compared with $56 million, or $0.28 per share, in the prior-year quarter. Ferneyhough said adjustments included an $80 million foreign exchange translation loss on deferred tax balances, a $20 million unrealized loss on derivative instruments, and $8 million in acquisition costs related to the Foran transaction.
Eldorado ended the quarter with about $630 million in cash and cash equivalents. Ferneyhough said cash declined from the fourth quarter primarily due to capital investment, share repurchases, dividend payments, and income taxes, partially offset by operating cash flow.
Operations update: mixed production across sites
Hille provided site-level updates across the portfolio. At the Lamaque Complex, the company produced 42,306 ounces in the first quarter, up 5% year-over-year, primarily driven by grades and including an initial contribution from Ormaque following receipt of operating authorization. AISC at Lamaque was $1,370 per ounce sold, modestly lower year-over-year. Total capital spend was $48 million, including $20 million of sustaining capital and $28 million of growth capital tied largely to Ormaque development and ramp development at the Triangle Mine.
At Kışladağ, Eldorado produced 28,339 ounces “as planned,” with Hille reiterating that 2026 is a cutback year for Phase VI of the open pit where average grades are lower than the life-of-mine average. AISC was $2,060 per ounce sold, reflecting lower volumes sold and a higher cost base. Growth capital included a one-time $24 million land purchase to support heap leach pad and waste dump expansions. Hille said the geometallurgical study remained on track for completion in the second quarter of 2026.
At Efemçukuru, payable production was 15,394 ounces, down from 19,307 ounces a year earlier, driven by lower grades and partially offset by higher throughput. AISC rose to $2,528 per ounce sold, reflecting lower sales volume and a higher cost base tied to sustaining capital and underground development needs.
At Olympias, payable gold production was 14,319 ounces, up 21% year-over-year, which Hille said reflected a stable ore blend and flotation performance that drove higher recoveries. Revenue rose to $88 million from $46 million, reflecting higher gold prices, higher sales volumes for gold and base metals, and higher grades and recoveries for base metals. AISC at Olympias fell to $2,031 per ounce sold from $2,842, driven by improved metal recovery and stable mill performance. Hille said growth capital at Olympias was linked to the mill expansion project, with “sequential area completion commencing at the end of Q3” and ramp-up through the fourth quarter of 2026.
In closing comments, President Christian Milau said the first quarter reflected “a solid start to what is a defining year for Eldorado,” noting the company initiated its dividend and repurchased more than $80 million of shares in the quarter. Burns also reiterated that he plans to retire as CEO later in 2026, with Milau expected to step into the role, and said he intends to remain on the board.
About Eldorado Gold NYSE: EGO
Eldorado Gold Corporation is a Canada‐based gold producer engaged in the acquisition, exploration, development and operation of mineral properties. The company's core focus is on gold, silver and select base metals, with an emphasis on advancing projects through feasibility and into production. Eldorado Gold maintains a diversified portfolio of both producing mines and advanced‐stage development projects.
Operationally, Eldorado Gold manages multiple gold mining operations across Turkey, Canada and Greece.
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