EGO — Eldorado Gold Corporation

Eldorado Gold Q3 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Gold Production: 115,190 ounces in Q3 2025.
• Net Earnings: $57 million ($0.28 per share); adjusted net earnings of $82 million ($0.41 per share).
• Free Cash Flow: Negative $87 million; underlying free cash flow (excluding Skouries capital investments) was positive $77 million.
• Total Cash Costs: $1,195 per ounce sold; all-in sustaining costs (AISC) were $1,679 per ounce sold.
• Liquidity: Approximately $1.1 billion, providing flexibility for growth initiatives and shareholder returns.
• Share Buybacks: Approximately 3 million shares repurchased for $79 million in Q3; total of 5 million shares repurchased for $123 million year-to-date.

2. Strategic Updates and Business Highlights

• Leadership Transition: Christian Milau appointed as President, focusing on growth strategy and operational excellence.
• Project Updates:
  • Skouries: On track for first copper-gold concentrate production by Q1 2026; overall construction progress at 73%.
  • Olympias: Challenges with flotation circuit affecting production; expansion project ongoing.
  • Kisladag: Implementation of a whole ore agglomeration project to enhance leach kinetics and reduce leach cycle from 300 to 200 days.
• Sustainability Initiatives: Continued commitment to health, safety, and environmental standards with external verifications underway.

3. Forward Guidance and Outlook

• Gold Production Guidance: Tightened to 470,000 - 490,000 ounces for 2025.
• Cost Guidance: Total cash costs revised to $1,175 - $1,250 per ounce; AISC increased to $1,600 - $1,675 per ounce.
• Capital Expenditures: Sustaining capital costs expected at the higher end of $145 million - $170 million; growth capital for operations projected at $245 million - $270 million.
• Dividend Consideration: Potential for a sustainable dividend to be discussed in 2026 as cash flow generation improves post-Skouries.

4. Bad News, Challenges, or Points of Concern

• Operational Challenges: Olympias faced flotation circuit stability issues, impacting production and recovery rates; modest negative impacts expected to persist into Q2 2026.
• Cost Increases: Rising costs due to high gold prices and increased royalty rates in Turkiye; approximately 50% of cost increases attributed to external factors.
• Safety Metrics: Lost time injury frequency rate increased to 1.21 from 1.10 year-over-year, indicating a need for improved safety performance.

5. Notable Q&A Insights

• M&A Positioning: Eldorado is focused on internal growth and capital allocation rather than pursuing external M&A opportunities, despite sector activity.
• Skouries Timeline: Critical path identified for Skouries construction; potential delays could incur fixed costs of approximately $15 million monthly.
• Kisladag Recovery Outlook: Management expressed confidence in meeting production guidance despite leaching variability; Q4 performance expected to align with overall annual targets.
• Future Capital Allocation: Emphasis on disciplined capital allocation post-Skouries, with exploration and operational enhancements prioritized.

This summary encapsulates the key financial metrics, strategic initiatives, forward guidance, challenges, and insights from the Q&A session, providing a comprehensive overview of Eldorado Gold's current position and outlook.