Eldorado Gold keeps $1B Skouries on track

Canada’s Eldorado Gold (TSX: ELD; NYSE: EGO) says its Skouries copper-gold project in Greece is on track with its February forecast of first production in early 2026 and commercial output by mid-year.

The proposed mine’s second stage is 70% complete, Eldorado said on Thursday. The project in the country’s north is designed as a 20-year operation producing an average of 140,000 oz. gold and 67 million lb. copper annually based on a dual open-pit and underground mine plan.

Skouries was supposed to open in this year’s second half before the company increased the capital cost estimate Feb. 5 to $1.06 billion (C$1.46 billion) and revised the completion outlook due to labour shortages and construction constraints that added $143 million. The project is expected to reshape Eldorado’s production profile by boosting gold output and introducing copper revenue, helping lower overall cash costs. But it has faced years of setbacks. 

“We continued to make steady progress, supported by a skilled team on site performing at or slightly above our productivity assumptions,” President and CEO George Burns said in a statement. “We are focused on…delivering first production of copper-gold concentrate in the first quarter of 2026, a key inflection point for the company.”

Shares in Eldorado Gold gained 2.5% by mid-Friday in Toronto to C$29.09 apiece, valuing the company at C$5.99 billion. 

Kassandra Complex

The project, part of the Kassandra Mines Complex, was halted between 2017 and 2021 due to permit delays and local opposition. After signing a new agreement with the Greek government in 2021, Eldorado resumed construction in late 2022. 

Eldorado attributed the cost increase to Greece’s tight labour market and faster procurement of high-capacity mining equipment. Another $154 million in operational capital is scheduled before commercial production begins.

In the second quarter alone, the company invested $117 million in project capital and $27.1 million in accelerated operational spending. By June 30, Eldorado had spent $705.7 million in cumulative project capital and $40.5 million in operational capital under stage two construction.

For 2025, the miner plans to spend between $400 million and $450 million in project capital, along with $80 million to $100 million in pre-production operational capital.

Skouries hosts 251 million proven and probable tonnes grading 0.61 gram gold per tonne and 0.3% copper for 3.7 million oz. contained gold and 1.7 billion lb. copper, according to a 2021 technical report.