Eldorado Gold Delays Production At Skouries To 2026
Eldorado Gold (TSX: ELD) has delayed first production at its new Skouries project in Turkey to the first quarter of 2026, while commercial production levels are now not anticipated to be achieved until mid 2026.
At the same time, an additional $143 million in capital costs are expected to be incurred at the project, bringing initial capital costs to a total of $1.06 billion, a 15.5% increase over prior estimates. Eldorado has also said it is accelerating $154 million in operational capital expenditures that will now be spent prior to commercial production.
The delay, which is blamed on labour market tightness in Greece, is substantial for the new mine, which was previously guided to begin production in the third quarter of 2025. This however is not the first delay for the project, with initial production previously slated to occur in mid-2025.
As of December 31, $512 million in capital expenditures had been spent to date at Skouries, with $705 million in expenditures remaining in advance of commercial production. The project however is said to still be fully funded, with Eldorado maintaining $857 million in cash and cash equivalents, with total liquidity of $1.1 billion.
The company indicated that this cash position is partially bolstered by the sale of its holdings in G Mining Ventures (TSX: GMIN), for total proceeds of $155 million in January.
Guidance impact
The production delays at Skouries as a result have had an impact on production guidance for 2025, while Eldorado has also cut guidance at its Kisladag and Olympias mines. Updated guidance now calls for production of 460,000 to 500,000 ounces, versus prior guidance of 545,000 to 595,000 ounces.
Cash costs are expected to come in at $980 to $1,080 an ounce, while all in sustaining costs are estimated at $1,370 to $1,470 an ounce.
In terms of capital expenditures, sustaining capital is estimated to be between $145 and $170 million, while growth capital is estimated at between $245 and $270 million.
Eldorado is also now calling for production of 660,000 to 720,000 ounces of gold by 2027, versus prior guidance of 675,000 to 735,000 ounces.
Eldorado Gold last traded at $22.62 on the TSX.
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