Eldorado Gold Corporation

Eldorado reported Q2 production of 105,000 ounces of gold and sales of 103,000 ounces. Revenue was $487 million versus $452 million a year ago, supported by a realized gold price of $4,379 per ounce. Production costs were $185 million versus $162 million in Q2 2025; total cash costs averaged $1,432 per ounce sold and AISC averaged $1,926 per ounce sold. Net earnings attributable to shareholders from continuing operations were $173 million, or $0.68 per diluted share, compared with $139 million, or $0.67 per diluted share, last year; adjusted net earnings were $137 million, or $0.54 per share, versus $90 million, or $0.44 per share. The company ended the quarter with $555 million of cash and cash equivalents and about $300 million of available revolving credit capacity. Operating cash flow was $150 million and free cash flow was negative $334 million, reflecting about $214 million invested at Skouries and $78 million at McIlvenna Bay. For full-year and near-term guidance, management said Skouries remains on track for first concentrate in Q3 and commercial production in Q4, while McIlvenna Bay is targeting commercial production later in Q3 and positive cash flow by the end of the year. Management also said Skouries project cost guidance remains about $1.315 billion and McIlvenna Bay’s Q3 capital spending is expected to be the last quarter of higher project capital, with some costs still capitalized until commercial production is reached.

George Burns framed 2026 as a pivotal year, emphasizing that Eldorado is transitioning from construction into a next phase of growth with Skouries and McIlvenna Bay moving toward production. He said he is stepping out of the CEO role after the quarter as the company reaches first concentrate at Skouries, and he stressed the strength of the organization, the depth of the team, and the continuity of leadership under Christian Milau. His tone was confident and reflective, especially on Skouries, where he said he came away from a two-week site visit “extremely encouraged” and comfortable with the company’s ramp-up and cost estimates.

Paul Ferneyhough highlighted that Q2 results benefited from a higher gold price environment and disciplined execution, even as production and sales were lower year over year. He cited revenue of $487 million, production costs of $185 million, cash costs of $1,432 per ounce sold, AISC of $1,926 per ounce sold, and net earnings of $173 million, or $0.68 per share. On liquidity, he pointed to $555 million in cash, roughly $300 million of revolver capacity, and a minimum cash balance he would want to maintain of around $250 million. He also said the company has entered peak leverage at $1.75 billion of total debt, with project debt service starting at the end of the year, and reiterated capital allocation priorities of funding the growth projects, preserving balance sheet strength, and returning capital through dividends and buybacks.

Analysts focused on the pace of ramp-up and what “commercial production” means for McIlvenna Bay; management said it generally means sustained throughput of about 60% to 80% of nameplate and consistently producing salable concentrate for 30 to 60 days. They said McIlvenna Bay was already operating around 70% throughput when running, with July commissioning going well and a path to full nameplate centered on improving availability. Questions also covered higher project capital, where management said McIlvenna Bay’s Q3 capital should be the last quarter of higher project spending, and Skouries’ final project cost should stay near $1.315 billion, with some timing-dependent capitalization risk if commercial production slips. Analysts pressed on Skouries grid energization; management said IPTO inspection is scheduled for mid-August, connection is expected by end of August but could slip into September, and added gensets should allow commissioning and ramp-up even before grid power is live.