EGO — Eldorado Gold Corporation

Eldorado Gold Corporation (EGO) Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Gold Production: 100,358 ounces, down 13% year-over-year.
• Gold Sales: 100,119 ounces at an average realized price of $4,891 per ounce, leading to total revenue of over $532 million, a 50% increase from $355 million in Q1 2025.
• Production Costs: Increased to $188 million from $148 million, primarily due to higher royalty expenses and labor inflation.
• Unit Costs: Total cash costs averaged $14.70 per ounce sold (up from $11.53), and all-in sustaining costs (AISC) averaged $1,942 per ounce (down from $1,559).
• Net Earnings: $136 million ($0.69 per share), compared to $72 million ($0.35 per share) in the prior year.
• Adjusted Net Earnings: $188 million ($0.95 per share), up from $56 million ($0.28 per share).
• Cash Position: Approximately $630 million in cash and cash equivalents.

2. Strategic Updates and Business Highlights

• Growth Projects: Advancing two key projects, Skouries (Greece) and McIlvenna Bay (Saskatchewan), with Skouries expected to commence concentrate production in Q3 2026.
• Capital Investment: Approved $17 million for exploration activities in 2026, focusing on high-potential targets at McIlvenna Bay.
• Operational Achievements: Lamaque received the TSM Gold Leadership Award for excellence in mining operations.
• Leadership Changes: CEO George Burns announced plans to retire later in 2026, with Christian Milau set to succeed him.

3. Forward Guidance and Outlook

• Production Expectations: 2026 is anticipated to be back-half weighted with improved production from Skouries and McIlvenna Bay.
• Cost Management: Management maintains a low-cost profile post-production ramp-up, despite current inflationary pressures.
• Exploration Focus: Increased investment in exploration to extend mine life and discover new resources.

4. Bad News, Challenges, or Points of Concern

• Production Decline: The 13% decrease in gold production year-over-year raises concerns about operational efficiency.
• Increased Capital Costs: Skouries' total project capital increased by approximately $155 million due to higher labor costs and additional contractor support, which may impact future budgets.
• Operational Risks: The primary risk for Skouries remains the timely connection of power, which is crucial for the startup of production.
• Cost Pressures: Potential for ongoing labor and contractor cost pressures, although management does not foresee significant impacts on operating costs.

5. Notable Q&A Insights

• Labor Costs: Management clarified that the increase in capital costs for Skouries was primarily due to additional labor for electrical and instrumentation work, with no expected read-through to operating costs.
• Project Milestones: The team is currently in the "hot commissioning" phase at McIlvenna Bay, indicating progress towards first production.
• Exploration Budget: The exploration budget for McIlvenna Bay will focus on key targets, including the Tesla copper-rich feeder zone and Bigstone expansion.

Overall, Eldorado Gold Corporation reported solid financial performance in Q1 2026, with strong revenue growth driven by higher gold prices, while also facing challenges related to production levels and increased capital costs. The company is strategically positioned for growth with key projects advancing towards production.