Eldorado Gold Reports Solid Q3 2025 Financial and Operational Results; Skouries On Track for Q1 2026

Eldorado Gold announced its Q3 2025 financial and operational results. - Financials: Revenue was $434.7 million with net earnings of $56.5 million, or $0.28 per share. Cash flow from operations was $170.2 million. Free cash flow was negative at -$87.4 million due to significant capital expenditures, primarily at the Skouries project. Excluding Skouries capital, free cash flow was $76.9 million. - Operations: The company produced 115,190 ounces of gold at total cash costs of $1,195 per ounce and All-in Sustaining Costs (AISC) of $1,679 per ounce. - Guidance Update: Eldorado maintained its full-year 2025 production guidance, tightening the range to 470,000 - 490,000 ounces. However, it significantly increased its cost guidance to total cash costs of $1,175 - $1,250 per ounce and AISC of $1,600 - $1,675 per ounce. - Skouries Project: The Skouries project is reported to be 73% complete for Phase 2 construction and remains on track for first concentrate production by the end of Q1 2026. Capital expenditure on the project in Q3 was $137.7 million. - Corporate: The company repurchased 2,984,649 common shares for $78.8 million during the quarter. Additionally, Samantha Espley was appointed to the Board of Directors, while John Webster is set to resign.

This news is a negative development, primarily due to the substantial increase in full-year cost guidance. While the company attempts to frame the quarter as "solid," the underlying operational metrics show weakness compared to the prior quarter and original expectations for the year.

A chronological review of recent history provides critical context: - Q3 2024 (Oct 31, 2024): The company was projecting first production from Skouries in Q3 2025. - Skouries Setback (Feb 5, 2025): This was a pivotal and negative announcement. The company delayed Skouries' first production by two quarters to Q1 2026 and increased the capital cost estimate by $143 million (15.5%). 2025 production guidance was lowered, and initial cost guidance was set at an AISC of $1,370 to $1,470 per ounce. This news caused a significant stock price drop and reset market expectations downwards. - Q1 & Q2 2025 (May 1 & July 31, 2025): Results in the first half of the year were financially strong, buoyed by high gold prices. The key message was that Skouries was progressing on its new, revised schedule. However, a warning shot was fired in the Q2 release, stating that full-year costs were expected to be at or above the high end of the guidance range ($1,470/oz AISC). - Q3 2025 (Current News): The warning from Q2 has now materialized into a formal, and significant, guidance increase. The new AISC guidance midpoint ($1,637.50/oz) is now $207.50/oz, or 14%, higher than the original guidance midpoint ($1,420/oz). Q3 production of 115k oz is down 14% from Q2's 134k oz, and AISC of $1,679/oz is up 10% from Q2's $1,520/oz.

The positive aspect is that the flagship Skouries project remains on its revised schedule, which is a critical de-risking event. However, the operational performance of the existing mines is deteriorating from a cost perspective. The significant cost inflation is eroding the benefits of the high gold price environment and points to underlying pressures on the business. The market will view this cost creep with concern, as it questions the profitability of the base business that is funding the Skouries build.

While negative free cash flow is expected during this construction phase, the magnitude of the cost increase at the producing assets is a material negative fact that overshadows the "on-track" status of Skouries.

Eldorado Gold is a mid-tier gold and base metals producer with over 30 years of experience. The company has operating mines in Canada (Lamaque), Turkey (Kisladag, Efemcukuru), and Greece (Olympias). The company's flagship project is the Skouries copper-gold project in Halkidiki, Greece. It is a high-grade porphyry deposit that is currently in construction and expected to begin production in Q1 2026. Once operational, Skouries is expected to be a long-life, low-cost mine that will significantly increase Eldorado's production profile and add copper as a major revenue stream. All properties appear to be royalty-free, though they are subject to government-imposed royalties which, as noted in the July 31, 2025 release, have recently been increased in Turkey.