S&P Global Ratings Upgrade#
S&P Global Ratings has upgraded Eldorado Gold Corp.'s rating from 'B+' to 'BB-' with a positive outlook. This change reflects the company's improved cash flow and better leverage prospects, driven by favorable gold prices and advancements in their development projects.
Financial Performance#
In 2025, Eldorado Gold generated an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of over $1 billion, a significant increase from just over $700 million in 2024. This growth coincided with an average gold price of approximately $3,444 per ounce in 2025, marking a 44% rise from the previous year. As of December 31, 2025, the company reported a gross leverage ratio of about 1.3 times and held around $870 million in cash, despite ongoing investments in the Skouries project in Greece.
Skouries Project Progress#
The Skouries copper-gold development project is nearing completion, with about 90% finished as of December 31, 2025. The remaining costs are estimated at $250 million, under a revised total project cost of $1.3 billion. S&P expects production to start in the third quarter of 2026, ramping up to full commercial output by late 2026. The project is projected to yield an average of 140,000 ounces of gold and 67 million pounds of copper annually over an initial mine life of about 20 years.
Acquisition of Foran#
Eldorado has also announced plans to acquire Foran Mining for approximately C$3.8 billion in an almost all-stock deal. This acquisition will add the nearly completed McIlvenna Bay development project to Eldorado’s portfolio. As of December 31, 2025, this underground mine in Saskatchewan was 85% complete and is expected to produce about 41 million pounds of copper, 20,000 ounces of gold, 444,000 ounces of silver, and 54 million pounds of zinc annually over an 18-year reserve life. The deal is anticipated to close in the second quarter of 2026, pending shareholder votes and regulatory approvals.
Future Production Expectations#
S&P Global Ratings forecasts that Eldorado's annual gold-equivalent production will increase by over 80%, reaching about 900,000 ounces by the end of 2027, compared to 488,000 ounces in 2025. The ratings agency also predicts that the adjusted debt to EBITDA ratio for the combined entity will be well below 1.0 times by 2027, with expectations of generating around $2 billion in free operating cash flow during 2027-2028, assuming steady operations at Skouries by mid-2027.