Eldorado Gold: From Build to Ramp — Grid De-Risking and a CEO Handoff
The ramp gets real
Eldorado's Q2 call was all about commercial production. At McIlvenna Bay, the team produced first copper concentrate in June and first zinc in July, and is now targeting a commercial production declaration later this quarter. Simon Hille told analysts the commissioning has been "going really well" and the mill is already at “roughly 70% of nameplate when it's running” — Simon Hille, Senior Vice President, Operations · 2026-07-31. That matches the 60-80% range CFO Paul Ferneyhough laid out for the commercial definition, with the asset "consistently producing salable concentrate" for 30-60 days. He also confirmed copper shipments had already begun in July. The broader market is tracking the same theme - "commercial readiness" ranks near the top of the latest global keyword board.
The pipeline from build to production is the story, not just the two projects. Skouries also reached first ore crushed in its primary crusher and remains on track for first concentrate in Q3. George Burns, in his final earnings call as CEO, said the team is: “Comfortable, we'll have first con this quarter and comfortable we'll be in commercial production in the fourth quarter.” — George Burns, President and Chief Operating Officer · 2026-07-31
De-risking the grid, one genset at a time
The biggest swing factor for Skouries was always the connection to the Greek high-voltage grid. The project requires IPTO Operations to inspect and approve a substation the company built to transfer ownership to the power authority. That inspection is now scheduled for mid-August, and the company has stepped in with 26MW of additional gensets on top of the existing 10MW, bringing total capacity to 36MW versus the 50MW of grid power. George Burns explained why this matters:
So I'd say we've derisked the connecting to the grid power. And again, confident we'll get this done. ... we have the ability to run the entire facility, not at nameplate. Throughput, but at significant throughput well ahead of what we expect to do in Q3.
The move is a direct response to delays the company has already encountered. In the prior quarter's call, Burns had flagged that replacement capacitors for the cyclone feed pump would take until Q3 after moisture damage was found in storage, directly impacting the critical path. Those additional gensets are now effectively buying schedule insurance, allowing the plant to continue commissioning and ramping up while the IPTO Operations paperwork winds through. The cost commitment is roughly $5 million, a small price for removing the largest remaining schedule risk.
Peak leverage and a new captain
As the company transitions from construction to operation, it also faces its heaviest debt load. Paul Ferneyhough said plainly, “we're basically at peak leverage” — Paul Ferneyhough, Chief Financial Officer · 2026-07-31, with the project financing for both Skouries and McIlvenna Bay drawn down and repayments starting at year-end. The company still holds substantial liquidity—$555 million cash plus ~$300 million undrawn on the revolver—but free cash flow was negative $334 million in Q2, reflecting the final capex push. Excluding those two projects, the operating business generated roughly $41 million of free cash flow, a figure that highlights the cash-generating core behind the construction spend.
This is also a quarter of leadership change. George Burns is stepping down as CEO, handing the reins to Christian Milau, who has been president since 2025. The transition was framed as a natural consequence of delivering on the two cornerstone projects: “As we ramp up both Skouries and McIlvenna Bay towards commercial production, Christian has been closely engaged across the business and is well positioned to step into the role with continuity.” — George Burns, President and Chief Operating Officer · 2026-07-31 The board also rotated, with a new chair and lead director, and Burns will remain on the board. That sets up the next phase where the company expects to move from a builder to a generator of cash flow generation.
Meanwhile, Olympias slipped modestly—completion is now expected by the end of 2026 with ramp in Q1 2027, citing brownfield construction complexity. That is separate from the two new builds and does not change the core narrative of a company about to inflect.
The market will now watch whether the 2027 production profile can hit the planned steep ramp. The prior call had guided to 80% of nameplate for commercial production; today's definition is more flexible, a sign the company is keeping its options open as it fine-tunes the commissioning curve. With two new long-life mines on the cusp of production, a CEO handoff, and a deleveraging plan that begins before the end of the year, Eldorado is entering the most consequential 12 months of its modern history.