Eldorado Gold Nears Production Milestones as Skouries, McIlvenna Bay Near Launch

Key Points

• Skouries and McIlvenna Bay are nearing commercial production in the coming quarter, positioning Eldorado Gold to add substantial copper and gold output. Combined, the projects are expected to generate about 110 million pounds of annual copper production.
• Eldorado projects gold-equivalent production will rise from roughly 500,000 ounces to nearly 900,000 ounces, with free cash flow expected to exceed $1 billion in 2027 as major construction spending winds down.
• The company ended the prior quarter with approximately $550 million in cash and $1.2 billion in net debt; it may resume share buybacks and prioritize dividends and repurchases as new mines begin generating cash.

Eldorado Gold NYSE: EGO said it is approaching a transition from a period of major capital investment to higher production and cash generation, with its Skouries project in Greece and McIlvenna Bay project in Canada expected to reach commercial production in the coming quarter.

In a presentation, Christian said the company has completed the bulk of construction work on the two projects and is shifting its focus toward operational execution. The company expects the new mines to drive a substantial increase in both gold and copper output, while creating a cash-flow inflection beginning in 2027.

“We’ve just finished two big builds,” Christian said. “Now it’s time to take a pause, take a breather, and focus on the execution and operational excellence.”

New Mines Expected to Add Gold and Copper Production

Skouries, Eldorado’s new flagship operation in Greece, is expected to begin production in the next quarter. The project has a projected 20-year mine life and is expected to average roughly 150,000 ounces of gold and 70 million pounds of copper annually over its life.

The company said it has nearly 4.6 million to 4.7 million tonnes of ore stockpiled in front of the Skouries mill, equivalent to about six months of feed. About one-third of the stockpile is sulfide ore, which Christian said will support the ramp-up process. The company has also energized the main substation and is commissioning the first two of six tailings filters.

“Skouries is in a great place,” Christian said, adding that the project is positioned to generate significant cash flow after production begins.

McIlvenna Bay in Saskatchewan has already produced its first copper concentrate in June and zinc concentrate in July, according to the presentation. Eldorado is working toward commercial production during the fourth quarter. The operation has an 18-year mine life, although the company expects to release a new resource estimate for the Tesla zone in the next quarter that could potentially double the mine life.

Together, Skouries and McIlvenna Bay are expected to take Eldorado from essentially no copper output to approximately 110 million pounds of annual copper production, split between roughly 70 million pounds from Skouries and 40 million pounds from McIlvenna Bay.

Portfolio Optimization and Expansion Plans

Eldorado operates six assets across Canada, Greece and Türkiye. Its Lamaque mine in Quebec has produced about 200,000 ounces of gold annually, while the company’s two Turkish mines collectively produce more than 200,000 ounces of gold. Olympias in northern Greece currently produces about 60,000 to 70,000 ounces annually and is undergoing an expansion intended to raise output toward 80,000 ounces per year.

The Olympias expansion is expected to enter production in the first quarter of 2027 and ramp up in the second quarter. At Kisladag in Türkiye, the company expects to commission a secondary crusher in the fourth quarter and begin whole-ore agglomeration in the first quarter of 2027. Those upgrades are intended to improve heap-leach efficiency and return Kisladag to roughly 130,000 to 150,000 ounces of annual production.

Longer-term opportunities include potential mill expansions at Lamaque and McIlvenna Bay, subject to feasibility studies expected next year. Eldorado also discussed Perama Hill in northern Greece, where it has submitted an environmental impact assessment. The project is envisioned as a three-gram-per-tonne open-pit mine producing roughly 100,000 ounces of gold annually over an eight-year mine life, although construction would not begin before 2028 at the earliest.

Cash Flow and Capital Returns

The company said it ended the prior quarter with approximately $550 million in cash and $1.7 billion in debt, representing net debt of about $1.2 billion. Eldorado also said it has returned nearly $400 million to shareholders through dividends and share buybacks during the past four quarters.

Its quarterly dividend, introduced in the first quarter, totals approximately $20 million per quarter. The company paused buybacks during the latest quarter but said it would consider restarting them if its shares continue to trade at a discount to net asset value after the new projects enter production.

Christian said Eldorado plans to provide updated guidance early in the new year and potentially host a capital-markets day in March to outline future capital-allocation priorities. Dividends and repurchases are expected to be high on the priority list, he said.

The company projected gold-equivalent production could rise from roughly 500,000 ounces to almost 900,000 ounces. It also said it expects free cash flow to exceed $1 billion in 2027 and cited consensus EBITDA of nearly $2.6 billion.

Exploration and Greece Operating Environment

Eldorado has committed about $90 million to exploration this year and said future exploration spending could approach $100 million. The company highlighted drilling at the Tesla zone, Lamaque and Olympias as potential sources of mine-life extensions.

During a question-and-answer session, Ralph Profiti, an analyst at Stifel Canada, asked about Eldorado’s operating experience in Greece. Christian said the company has found a skilled workforce and described the permitting process as established, citing groundwork completed for the Skouries permit.

Christian said Skouries could demonstrate mining’s economic contribution to local communities, noting that the project is expected to generate royalty revenue for the surrounding area. He added that the Greek prime minister was expected to visit the site the following week.

About Eldorado Gold (NYSE:EGO)

Eldorado Gold Corporation is a Canadian gold mining company engaged in the exploration, development, construction and operation of gold mines. The company produces gold doré and concentrates, with its activities focused on operating and advancing assets in Türkiye, Greece and Canada.

Eldorado Gold's principal producing operations include the Kisladag and Efemcukuru mines in Türkiye, the Olympias mine in northern Greece and the Lamaque mine in Quebec, Canada. The company is also advancing the Skouries project in Greece, a copper-gold development intended to produce both copper concentrate and gold.

The company traces its modern history to the 1990s and has expanded through exploration, mine development and acquisitions, including the acquisition of European Goldfields and Integra Gold.

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