Eldorado Gold Corp. Q3 FY2026 earnings call

• Skouries Progress: Achieved first copper-gold concentrate production on September 8. Two filter presses are now operational, enabling continuous plant operation; two additional units are expected online in November to support commercial production. The site is fully connected to grid power, and mining activities continue with significant ore stockpiles. Total project capital estimate increased by $65 million to approximately $1.425 billion due to extended commissioning costs.
• McIlvenna Bay Ramp-up: Continued ramp-up following first concentrate production. Process plant throughput is averaging 70%. Focus is on resolving solid-liquid separation challenges in thickening and filtration units. Commercial production is targeted for late Q4 2026. Project capital cost estimate increased by $23 million to $975 million.
• Established Operations: Lamaque delivered strong performance (52,748 ounces) supported by high-grade Ormaque ore. Kışladağ production was lower (22,713 ounces) due to mine sequencing and waste removal delays, though higher-grade material access is improving. Olympias production (13,430 ounces) was impacted by stockpiling lead/zinc-rich material to optimize recoveries; expansion tie-ins are planned for Q1 2027.
• Strategic Focus: CEO Christian Milau emphasized disciplined execution, transparent reporting, and maximizing value from existing assets rather than chasing new growth projects in 2027. The company plans to pause major construction expansions in 2027 to focus on stabilizing new mines and improving shareholder returns.

Revenue increased 18% year-over-year to $512 million, driven by a higher realized gold price of $4,326 per ounce (up from $3,527 in Q3 2025), which offset lower sales volumes. Net earnings attributable to shareholders were $118 million ($0.45 per share), compared to $56 million ($0.28 per share) in the prior year period. Adjusted net earnings were $127 million ($0.49 per share). Total cash costs averaged $1,415 per ounce sold, and All-In Sustaining Costs (AISC) averaged $2,050 per ounce sold.

• 2026 Production Guidance Revised Downward: Operating assets (excluding Skouries and McIlvenna Bay) now expect 410,000–430,000 ounces of gold. Skouries gold production revised to 10,000–35,000 ounces, and copper to 5–15 million lbs, reflecting slower-than-expected ramp-up.
• 2027 Outlook Maintained: Management remains comfortable with full-year 2027 guidance, expecting Skouries to produce 150,000–180,000 ounces of gold and 50–70 million lbs of copper, and Olympias expansion to come online. No impact on 2027 production volumes is expected from current delays.
• Capital Expenditures: Sustaining CapEx for operating assets increased to $170–$190 million for 2026. For 2027, total sustaining CapEx including new mines is estimated to roughly double the current rate.

• Ramp-up Delays and Costs: Both Skouries and McIlvenna Bay experienced slower-than-expected ramp-ups, leading to increased project capital and accelerated operating costs. Skouries faces specific technical challenges with filter press commissioning.
• Operational Inefficiencies: Kışladağ faced lower grades and delayed access to high-grade material due to waste stripping issues. Olympias had to stockpile material to maintain stable plant performance.
• Inflation and Currency Volatility: Significant exposure to Turkish inflation (20–30%) and currency devaluation risks, which impact ~40% of business costs. Diesel price volatility also poses an input cost risk, particularly for Kışladağ and future Skouries operations.
• Labor Market Tightness: Increased turnover risks in Canada (McIlvenna Bay fly-in/fly-out operations) due to competition from other resource developments.

Q: Analyst asked about the critical path to commercial production at Skouries and McIlvenna Bay, specifically regarding filter presses and equipment availability. / A: Simon Hille stated that four filter presses are required for full nameplate capacity at Skouries, with two more coming online in November. Paul Ferneyhough added that logistics and offtake contracts are ready for European deliveries. For McIlvenna Bay, the critical path involves resolving back-end solid-liquid separation issues, with commercial production targeted for late Q4.