ELDORADO GOLD CORP - Annual Investor Guide

I’m putting together this guide to help you make sense of Eldorado Gold’s latest annual report. My goal is to cut through the corporate jargon and explain how the company is performing, what they are up against, and where they are headed.

1. What does this company do?

Eldorado Gold is a Vancouver-based mid-tier gold producer. The company explores, develops, and operates mines for gold, silver, lead, and zinc. Their main production hubs include the Kisladag and Efemcukuru mines in Turkey, the Olympias mine in Greece, and the Lamaque mine in Canada. They are also developing the Skouries copper-gold project in Greece. By the end of 2025, the company produced about 485,000 ounces of gold. They aim to boost annual production to over 600,000 ounces by 2027 by finishing the Skouries project.

2. Financial performance: The bottom line

In 2026, Eldorado launched a dividend program, paying US$0.075 per share. This offers an annual yield of about 0.8% at recent prices. It signals that management is confident in their cash flow, which hit $145 million last year. They also expanded their share buyback program to repurchase up to 5% of their stock. This helps offset the impact of issuing new shares and returns value to you. Revenue for 2025 reached $1.12 billion, a 12% increase from the previous year, thanks to higher gold prices averaging $2,250 per ounce.

3. Major wins and challenges

• Expansion: Eldorado is acquiring Foran Mining Corporation for $950 million in an all-stock deal expected to close in mid-2026. This adds the McIlvenna Bay project and significant copper-zinc assets to their portfolio.
• The Skouries Project: This is their "crown jewel," with a $920 million price tag. Construction is 75% complete. However, the budget rose 12% due to a tight labor market in Greece and a 15% jump in equipment costs.
• Portfolio Cleanup: In late 2025, they sold their interest in the Certej project for $45 million. This allows them to focus cash on their most profitable assets.

4. Financial health: Cash and stability

The company has a strong balance sheet with $580 million in cash. They also have a $350 million credit line that remains mostly unused. Additionally, they secured $200 million in project financing from the European Bank for Reconstruction and Development for Skouries. Leadership also changed, with Christian Milau joining as President in late 2025 to focus on operational efficiency and the Foran acquisition.

5. Key risks

• Construction Costs: Building large mines makes them vulnerable to inflation and labor shortages. Further delays at Skouries could cost an extra $50 million to $75 million.
• Reporting Differences: They use Canadian standards to report reserves, which differ from U.S. SEC rules. This can make it difficult to compare their mine life directly with U.S.-based competitors.
• Operational Reality: Mining is unpredictable. With 40% of production in Turkey, they face risks from local currency swings and geopolitical instability.

6. Future outlook

Management is focused on finishing Skouries and integrating the Foran acquisition to diversify beyond gold. With dividends now active, the company is moving away from a "growth-at-all-costs" mindset toward balancing spending with shareholder returns. They target an "All-In Sustaining Cost" of $1,150–$1,250 per ounce for 2026, aiming to keep profit margins healthy even if gold prices drop.

Investor Takeaway: With $1.12 billion in annual revenue and a clear path to higher production, Eldorado is positioning itself as a cash-generating player in the mid-tier gold sector. When evaluating this stock, keep a close eye on the Skouries construction timeline and the successful integration of the Foran acquisition, as these two factors will likely dictate the company's ability to meet its 2027 production targets.