Eldorado $1B Skouries mine in Greece nears finish line

[Ben Graham]

Canada’s Eldorado Gold (TSX: ELD)(NYSE: EGO) is getting close to opening its Skouries copper-gold mine in northern Greece, with first output expected in early 2026 and commercial production by mid-year.

Canaccord Genuity upgraded the miner’s shares to Buy from Hold, citing reduced project risk as Skouries approaches completion, along with Eldorado’s solid balance sheet and attractive valuation.

The investment bank projects Eldorado’s annual production will climb from 483,000 ounces of gold in 2025 to 665,000 ounces by 2027. Free cash flow is expected to surge from $194 million to $1.3 billion over the same period. Shares currently trade at 0.52 times price-to-NAV and 3.3 times estimated 2026 EBITDA, which is below the intermediate peer averages of 0.81 and 4.4, respectively.

After years of setbacks and a four-year suspension between 2017 and 2021 due to permit delays and local opposition, Eldorado reached a new agreement with the Greek government in 2021 and restarted construction in late 2022.

Part of the Kassandra Mines Complex, Skouries hosts proven and probable reserves of 3.7 million ounces of gold and 1.7 billion pounds of copper. The mine is designed for a 20-year life, producing about 140,000 ounces of gold and 67 million pounds of copper annually through a combination of open-pit and underground mining.

Once operational, Skouries is expected to transform Eldorado’s production mix, adding a steady stream of copper revenue and lowering overall cash costs.