Eldorado Gold Earnings Call Balances Growth and Costs
Eldorado Gold ((TSE:ELD)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Eldorado Gold’s latest earnings call struck an overall upbeat tone, as management highlighted record operational delivery, robust cash generation and tangible returns to shareholders. At the same time, they acknowledged cost inflation, Skouries-related cash burn and some execution risks that temper the near-term picture but are framed as manageable against a stronger long-term profile.
Production Beats Tightened Guidance
Eldorado delivered full-year 2025 gold output of 488,268 ounces, landing at the high end of its tightened guidance range and underscoring solid execution. Fourth-quarter production of 123,416 ounces was driven by strong performance at Lamaque, steady results from Kisladag and Efemçukuru, and a solid finish at Olympias.
Revenue Growth and Earnings Upswing
Financial results were notably strong, with 2025 revenue reaching $1.8 billion and operating cash flow $743 million, supporting net earnings attributable to shareholders of $520 million, or $2.56 per share. In Q4 alone, net earnings from continuing operations came in at $252 million, or $1.26 per share, while cash flow from operations before working capital rose 18.2% year over year to $752 million.
Free Cash Flow Ex-Skouries and Liquidity Buffer
Excluding Skouries spending, Eldorado generated $316 million in free cash flow for 2025, showcasing healthy cash generation from its operating mines. Including Skouries, free cash flow flipped to negative $233 million, but the company closed the year with about $976 million in total liquidity and $869 million in cash, even after strategic investments.
Buybacks, New Dividend and Capital Discipline
The company underscored its shareholder-friendly stance by repurchasing roughly $204 million of shares during 2025, including about $80 million bought and canceled in the fourth quarter under its NCIB. Eldorado also announced the launch of a quarterly dividend program starting in Q1 2026, formalizing a clearer capital returns framework alongside its growth agenda.
Skouries Nears Completion and Long-Life Upside
Skouries in Greece is now roughly 90% built, with over 1.5 million tonnes of ore stockpiled and the open pit tracking ahead of plan, positioning it as a cornerstone asset. First concentrate is now expected in early Q3 2026 and commercial production in Q4 2026, and management repeatedly highlighted the multi-decade, high-quality nature of the project and its long-term cash flow potential.
Safety Metrics Trend in the Right Direction
On the safety front, Eldorado reported improvement in its Lost Time Injury Frequency Rate to 0.55 in Q4 2025 from 1.02 a year earlier, a roughly 46% reduction. Management emphasized that this safety progress was achieved during peak construction activity at Skouries, suggesting stronger safety culture even under operational stress.
Strategic M&A Expands Copper Exposure
The announced acquisition of Foran Mining marks a strategic move to broaden Eldorado’s portfolio with a high-quality Canadian copper-gold development asset. Management framed the deal as enhancing copper exposure and the long-term growth pipeline, noting early positive investor feedback and strong potential for complementary value creation.
Exploration Spend Ramps Up for Growth
Eldorado plans to lift exploration spending in 2026 to $75–$85 million, a 60% jump over 2025, targeting both resource conversion and new discoveries. Alongside Skouries, this investment underpins a projected roughly 40% increase in production by 2027 versus 2025, with 2026 consolidated output guided at 490,000–590,000 ounces of gold plus 20–40 million pounds of copper.
Skouries Delay and Extra Capital Outlay
Despite its advanced state, Skouries faces a modest schedule slip, with first concentrate pushed to early Q3 2026 and commercial production to Q4 2026. The delay is expected to add about $50 million in capital, with causes including moisture damage to key electrical components and slower-than-hoped power line approvals and subcontractor ramp-up.
Heavy Skouries Spend Pressures Near-Term Cash
The company’s negative $233 million free cash flow including Skouries in 2025 was largely the result of $475 million in capital devoted to the project, including $137 million in Q4 alone. Eldorado also accelerated $86 million of operational capital at Skouries during the year, front-loading investment in a project that is expected to materially lift free cash flow once in full operation.
Production Costs and Royalties Climb
Production costs rose to $678 million from $564 million, a roughly 20% increase, while royalty expense jumped to $124 million from just over $79 million, up about 57%. Management pointed to regulatory-driven royalty hikes in Turkiye, labor cost inflation and currency movements, especially euro strength, as key drivers of the higher cost base.
Higher AISC and Mine-Level Cost Pressure
All-in sustaining costs climbed to $1,664 per ounce sold for the full year and $1,894 per ounce in Q4, reflecting broad cost pressure. Efemçukuru was particularly affected, with Q4 AISC at $2,536 per ounce on lower grade and recovery, while Kisladag’s Q4 AISC reached $1,933 per ounce and Lamaque’s $1,392 per ounce, underscoring the need for ongoing cost control.
Kisladag Headwinds Before Longer-Term Payoff
Kisladag’s 2026 outlook is dampened by a heavy waste-stripping year, longer-than-expected leach cycles and lower stacked grades, all weighing on production and capital needs. The plan calls for an extra 6–8 million tonnes of waste stripping on top of the usual 20 million tonnes, which management argues will unlock the western pit and support improved performance over the longer term.
Weather, Tailings and Power Line Risks
Construction execution risks remain around Skouries’ filtered tailings plant and handling system, which sit on the critical path to start-up. Higher-than-normal rainfall has hampered site accessibility and productivity at times, while regulatory sign-off for a key power line sits outside Eldorado’s direct control and remains a vital milestone before full energization.
Guidance and Multi-Year Growth Trajectory
For 2026, Eldorado guides consolidated gold production at 490,000–590,000 ounces and copper at 20–40 million pounds, with pre-Skouries all-in sustaining costs of $1,670–$1,870 per ounce. Growth capital and operations are pegged at $375–$405 million, sustaining capital at $140–$165 million and exploration at $75–$85 million, while Skouries is expected to move into commercial production in Q4 2026 and help drive about 40% higher production in 2027 versus 2025.
Eldorado Gold’s earnings call painted a company balancing strong operational and financial momentum with short-term cost and project risks. Investors are being asked to look past near-term cash drag and inflationary pressures in exchange for a future portfolio anchored by Skouries, a larger copper footprint and a clearer commitment to sustained capital returns.
