Eldorado Gold Corporation has unveiled its performance for the second quarter of 2026, showcasing a period of significant transition and strategic growth initiatives. The company's financial results reflect a robust environment for gold prices, which substantially boosted revenue, even as production volumes from established mines saw a planned reduction. A key highlight of this quarter is the nearing completion and commissioning of two pivotal growth projects: Skouries in Greece and McIlvenna Bay in Canada. This strategic advancement is poised to fundamentally transform Eldorado's operational footprint and financial outlook in the coming years.
During the second quarter of 2026, Eldorado Gold registered total revenues of $487 million, an increase from $452 million in the corresponding period of the previous year. This growth was primarily fueled by a higher average realized gold price of $4,379 per ounce, which effectively counterbalanced a dip in sales volumes. The company's adjusted net earnings for the quarter stood at $137 million, or $0.54 per share, marking a considerable improvement from $90 million, or $0.44 per share, in Q2 2025. Gold production reached 105,000 ounces, with 103,000 ounces sold. The all-in sustaining costs (AISC) per ounce sold were $1,926, influenced by elevated production expenses and reduced gold sales, though partially offset by lower capital expenditures for sustaining operations.
Free cash flow for the quarter was negative $334 million, largely due to substantial investments in the Skouries and McIlvenna Bay growth projects. Approximately $214 million was allocated to Skouries for project and accelerated operational capital, while $78 million was invested in McIlvenna Bay as it progressed towards commercial production. Excluding these two growth projects, the underlying operational activities generated approximately $41 million in free cash flow, underscoring the intrinsic cash-generating capability of the company's existing assets. At the close of the quarter, Eldorado maintained a strong liquidity position with $555 million in cash and cash equivalents, complemented by an available revolving credit facility of $300 million.
A significant leadership change was also announced, with Chief Executive Officer George Burns set to retire, and President Christian Milau designated as his successor. Burns, who has led the company for nine years, will transition out of his role as Skouries approaches its first concentrate production milestone. The company’s commitment to shareholder returns was evident through the repurchase of 2.4 million shares for $84 million and the distribution of $34 million in dividends during the first half of 2026. The company also received recognition for its sustainability efforts and workplace safety, highlighting a strong organizational culture and commitment to responsible mining practices.
The Skouries project in Greece has entered its final construction and commissioning phases, with the crushing circuit initiating operations in July. The process plant is largely complete, undergoing wet commissioning, and the workforce at the site has decreased as construction activities wind down. The project faced some delays with its electrical power grid connection, but additional diesel generators have been deployed to ensure commissioning progresses without interruption. Similarly, the McIlvenna Bay project in Saskatchewan successfully produced its inaugural copper and zinc concentrates. The focus now shifts to optimizing operations and increasing throughput, with commercial production targeted for the third quarter. An integrated study is also underway to explore potential expansion of the McIlvenna Bay mill and the addition of a silver-lead circuit. The Olympias mine expansion to 650,000 tonnes per annum is anticipated to be completed by the end of 2026, with a production ramp-up expected in 2027.
Overall, Eldorado Gold is navigating a transformative period, balancing significant capital investments in new projects with solid operational performance from its existing mines. The company's strategic focus on advancing Skouries and McIlvenna Bay into full production is expected to usher in a phase of considerable growth in production, cash flow, and financial flexibility, positioning it strongly for the future.