EGO — Eldorado Gold Corporation

Eldorado Gold (EGO) Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Q4 2025 Performance:

  • Gold production: 123,416 ounces at an all-in sustaining cost (AISC) of $1,894 per ounce.
  • Revenue: $1.8 billion.
  • Operating cash flow: $743 million.
  • Free cash flow: Negative $55 million (positive $109 million when excluding Skouries investment).
  • Net earnings attributable to shareholders: $252 million ($1.26 per share).
  • Adjusted net earnings: $126 million ($0.63 per share).

• Full Year 2025 Performance:

  • Total gold production: 488,268 ounces.
  • Net earnings: $520 million ($2.56 per share).
  • Free cash flow: Negative $233 million (positive $316 million when excluding Skouries).
  • Total cash costs: $1,176 per ounce sold; AISC: $1,664 per ounce sold.
  • Total liquidity at year-end: Approximately $976 million.

2. Strategic Updates and Business Highlights

• Eldorado achieved the high end of its 2025 production guidance and initiated a quarterly dividend program starting Q1 2026.
• The acquisition of Foran Mining was announced, enhancing Eldorado's growth pipeline with a Canadian copper-gold asset.
• Significant progress was made at the Skouries project, with construction reaching 90% completion.
• Safety performance improved, with a lost time injury frequency rate of 0.55, down from 1.02 in Q4 2024.

3. Forward Guidance and Outlook

• 2026 Guidance:

  • Expected gold production: 490,000 to 590,000 ounces; copper production: 20 to 40 million pounds.
  • AISC projected between $1,670 and $1,870 per ounce sold.
  • Growth capital expenditures: $375 million to $405 million; sustaining capital: $140 million to $165 million.
  • Exploration investment increased by 60% to $75 million - $85 million.

• Three-Year Outlook:

  • Anticipated production increase of approximately 40% by 2027, driven by Skouries and existing operations.

4. Bad News, Challenges, or Points of Concern

• The Skouries project faced delays in first concentrate production, now expected in early Q3 2026, with commercial production anticipated in Q4 2026. This delay is expected to increase construction capital by approximately $50 million.
• Issues with the cyclone feed pump variable frequency drive capacitors due to moisture damage were identified, necessitating replacement and potentially impacting the timeline.
• Increased production costs were noted due to higher royalties and inflationary pressures, particularly in Turkey.

5. Notable Q&A Insights

• Analysts questioned the impact of lower production guidance for Kisladag in 2026 and 2027, with management indicating that increased waste stripping would support future ore sources.
• The reception of the Foran Mining acquisition was positive, with management emphasizing the long-term benefits and synergies expected from the merger.
• Concerns regarding the Skouries project were addressed, with management expressing confidence in the project's fundamentals and the ability to ramp up production effectively despite the delays.

Overall, Eldorado Gold demonstrated strong financial performance in 2025 while navigating some challenges related to project timelines and cost pressures. The company remains optimistic about its growth trajectory and strategic initiatives moving into 2026 and beyond.