Eldorado Gold Corporation (NYSE: EGO) delivered first-quarter 2026 results that exceeded analyst expectations, even as gold production fell and costs rose. Shares climbed 4.57% to $30.53 in response to the strong performance across key metrics and project milestones.
Financial Performance Overview
Adjusted earnings per share hit $0.68, topping the $0.64 consensus forecast. Net income reached $188.2 million, a 236% increase from $56.4 million in the prior-year period. Adjusted EBITDA doubled to $357 million from $163 million, highlighting robust margins amid elevated gold prices.
Realized gold price surged 67% to $4,891 per ounce from $2,933, driving sales value up substantially. Total cash costs rose to $1,470 per ounce from $1,153, while all-in sustaining costs (AISC) increased to $1,942 from $1,559. Gold revenue totaled $188.2 million, bolstering portfolio-wide profitability.
Operating cash flow jumped to $187.1 million from $36.5 million year-over-year, with free cash flow at $29.1 million after project expenditures.
Operational Updates by Mine
Production totaled 100,358 ounces, down 13% from 115,893 ounces last year, yet operations maintained momentum across four key assets.
Lamaque Complex (Canada)
Output rose 5% to 42,306 ounces, fueled by higher grades. The site earned a Level AAA rating from the Mining Association of Canada, securing the TSM Gold Leadership Award. Total cash costs fell to $904 per ounce, with AISC at $1,370. Annual guidance holds at 185,000-200,000 ounces.
Kişladağ (Turkey)
Production reached 28,339 ounces amid weather disruptions and stripping delays. Optimization efforts target pit shell expansion from $1,700 to $2,100. Costs stood at $1,896 per ounce, reflecting lower royalties and steady sales. Guidance remains 105,000-130,000 ounces annually.
Efemçukuru (Turkey)
Output increased to 15,394 ounces despite lower grades. Costs were $2,208 per ounce cash and $2,528 AISC, offset by higher sales prices. The mine eyes 70,000-80,000 ounces yearly.
Olympias (Greece)
Production grew 21% to 14,319 ounces with improved grades. Sales value doubled to $8.85 million from $4.65 million. Ramp-up progresses toward full-year guidance, with commercial production slated for Q4 2026.
Key Growth Projects
Eldorado focuses on two transformative initiatives to boost output and portfolio value.
Skouries (Greece)
Construction advanced 94% complete, targeting commercial production in Q3 2026. Capital expenditures totaled $356 million this quarter, up from $131.5 million previously. Total project capex now stands at $1.315 billion. Engineering nears completion for next milestones.
McIlvenna Bay (Saskatchewan, Canada)
This high-grade copper-gold project received environmental approval on April 14, 2026. Management describes it as a “premier development asset with strong economic potential.” Production outlook emphasizes project execution and management updates.
Balance Sheet and Capital Management
Liquidity totaled $788 million as of March 31, 2026, comprising $630 million in cash and equivalents plus $158 million in working capital facilities. This marks a decline from $869.4 million year-end 2025, reflecting project investments.
Debt includes $350 million in senior notes due 2029 and a $500 million convertible. Full repayment of €680 million ($782.3 million) Skouries bridge facility is set for September 30, 2025. The company repurchased $15 million in shares and $84 million in quarterly dividends.
Leadership and Strategic Direction
George Burns steps down as CEO in Q3 2026, with Chris Milau assuming the role. Key promotions strengthen operations: Simon Hille as COO, Sylvain Lavoie as Canada Operations VP, and others. Strategic initiatives secure G Mining Services for execution partnerships.
Executives project 80% GEO production growth by 2027 from Skouries and McIlvenna Bay, positioning Eldorado among Europe’s top gold producers.
Outlook and Risks
Full-year gold production guidance is 430,000-490,000 ounces, excluding new projects. Costs range $1,220-$1,420 per ounce cash and $1,670-$1,870 AISC. Management notes currency fluctuations, input inflation, and geopolitical risks in Turkey and Greece.
Recent 14-day strikes at Kişladağ minimally impact annual targets. Investors eye project delivery, cost discipline, and gold market dynamics for sustained growth.
