Eldorado Gold (NYSE:EGO) reported second-quarter 2026 gold production of 105,000 ounces and sales of 103,000 ounces, while advancing its Skouries project in Greece toward first concentrate production and ramping up the newly acquired McIlvenna Bay operation in Saskatchewan.
Revenue rose to $487 million from $452 million a year earlier, as a realized gold price of $4,379 per ounce offset lower sales volumes. 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 share, in the prior-year quarter. Adjusted net earnings increased to $137 million, or $0.54 per share, from $90 million, or $0.44 per share, a year earlier.
Skouries Nears First Concentrate
At Skouries, Eldorado achieved first ore crushed in July, beginning commissioning of the crushing circuit. Burns said the processing plant is substantially complete, wet commissioning is under way, and water circulation testing is progressing through the circuit to the tailings thickener and filter feed tanks.
Two tailings thickeners are ready for first-ore commissioning, while mechanical and electrical work has been completed on two of six filters at the filtered-tailings plant. The company has also stockpiled about 4 million tonnes of ore, representing planned mill feed for the remainder of 2026 and into 2027.
Skouries remains on track to produce its first concentrate in the third quarter, according to Burns. Commercial production is expected in the fourth quarter.
Final site energization is awaiting an inspection and final approvals from the Greek power authority. Burns said the inspection was scheduled for mid-August and that the company expected connection to the grid by the end of August, although the process could slip into September.
To reduce the risk of delays to commissioning, Eldorado expanded its temporary generating capacity to 36 megawatts, compared with 50 megawatts expected from the grid connection. The generators can support operation of the full plant at significant throughput, though not at nameplate capacity. Burns said the temporary diesel generation arrangement was expected to cost about $5 million and that grid power would be materially cheaper.
Eldorado continued to forecast approximately $1.315 billion as the final project development cost for Skouries, though CFO Paul Ferneyhough said the precise total will depend partly on when commercial production is declared. The company also has an approximately €43 million letter of credit that it expects to fund in the coming weeks.
McIlvenna Bay Produces Copper and Zinc Concentrates
McIlvenna Bay produced its first copper concentrate in June and its first zinc concentrate in July. Eldorado has begun shipping both products, with first copper deliveries occurring in July and zinc concentrate loaded for rail shipment and trucking.
Chief Operating Officer Simon Hille said the mill has been operating at roughly 70% of throughput capacity when running, with the company focused on improving availability by addressing instrumentation and other normal commissioning issues. He said there were no fundamental equipment concerns and that most installed equipment was performing within specification.
Management expects commercial production later in the third quarter. Ferneyhough said Eldorado’s definition requires throughput of roughly 60% to 80% of intended daily nameplate capacity, consistent production of saleable concentrate, and confidence that those levels can be maintained for about 30 to 60 days.
The company expects McIlvenna Bay to begin generating positive cash flow by the end of the year as production ramps through the fourth quarter. Management said unit costs should decline in 2027 as mine and mill operations advance toward nameplate capacity.
Eldorado has started an integrated study evaluating a potential mill expansion from 4,900 tonnes per day to approximately 7,000 tonnes per day, as well as the addition of a silver-lead circuit. Subject to evaluations, permits, stakeholder engagement and an investment decision, the company is targeting silver-lead circuit commissioning in 2028 and expansion in 2030.
Operating Results and Capital Spending
Second-quarter production costs increased to $185 million from $162 million in the prior-year period. The company attributed the increase to higher royalties associated with metal prices, inflation-related labor and contractor costs in Türkiye, maintenance spending, and deeper mining activity at Lamaque.
- Total cash costs averaged $1,432 per ounce sold.
- All-in sustaining costs averaged $1,926 per ounce sold.
- Net cash generated from operating activities was $150 million, compared with $158 million a year earlier.
- Free cash flow was negative $334 million, reflecting planned spending on Skouries and McIlvenna Bay.
During the quarter, Eldorado invested about $214 million at Skouries, including project and accelerated operational capital, and $78 million at McIlvenna Bay. Excluding those two growth projects, Ferneyhough said the producing asset base generated approximately $41 million in free cash flow.
The company ended the quarter with $555 million in cash and cash equivalents and approximately $300 million of available capacity under its revolving credit facility. Total debt stood at $1.75 billion, which Ferneyhough described as peak leverage. Debt servicing and repayment for the Skouries and McIlvenna Bay project financings are expected to begin at the end of 2026.
During the first half, Eldorado repurchased approximately 2.4 million shares for $84 million and paid $34 million in dividends.
Portfolio Updates
Lamaque produced 52,340 ounces of gold during the quarter, supported by increased throughput and higher-grade Ormaque ore after the operation received authorization in March. All-in sustaining costs were $1,192 per ounce sold. Hille said Lamaque’s second-half grades could trend toward the upper end of its 6 to 6.5 grams-per-tonne range.
Kisladag produced 19,108 ounces, with lower grade and tonnes stacked as the mine advances its phase 6 western pushback. The operation’s all-in sustaining costs were $2,407 per ounce sold. Management expects production to be weighted toward the second half of 2026, with improving tonnage and grade through the third and fourth quarters. Commissioning of the whole-ore agglomeration circuit remains expected in the first half of 2027.
Efemçukuru produced 18,019 ounces at all-in sustaining costs of $2,252 per ounce sold, while Olympias produced 15,125 ounces at all-in sustaining costs of $2,465 per ounce sold. Eldorado expects the Olympias 650,000-tonnes-per-year mill expansion to be completed by the end of 2026, followed by ramp-up in 2027.
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.
