Eldorado Gold on S&P CreditWatch Amid High Gold Prices

S&P Cites Favorable Market and Project Progress

S&P Global Ratings has placed Eldorado Gold Corp. on CreditWatch positive. The decision is driven by strong gold prices, which have significantly boosted the gold producer’s operating cash flow in recent quarters. The rating agency also highlighted reduced execution risk as the company's key development projects advance.

Eldorado’s financial flexibility is supported by a cash balance exceeding $1 billion as of September 30, 2025.

Strategic Growth and Key Acquisitions

The Skouries copper-gold project in Greece is approximately 90% complete, targeting commercial production by mid-2026. In a major strategic move, Eldorado entered a definitive agreement to acquire Foran Mining for approximately C$3.8 billion in an almost all-stock transaction. This deal adds the nearly completed McIlvenna Bay development project in Saskatchewan to its asset portfolio.

Improved Financial and Production Outlook

Following the acquisition, S&P forecasts the combined entity’s annual gold-equivalent production will surge by over 80% to approximately 900,000 ounces by the end of 2027, compared to 488,000 ounces in 2025. The company's adjusted debt to EBITDA is projected to fall below 1.0x in 2027, with significant positive free operating cash flow expected once both mines reach steady state operations.

Summary

Eldorado Gold's positive CreditWatch status from S&P reflects a strong financial position bolstered by high commodity prices, advanced development projects, and a strategic acquisition poised to significantly increase future production.

FAQ

Q: Why did S&P place Eldorado Gold on CreditWatch positive?
A: The action was based on strong gold prices, reduced risk in its key Skouries project, and the strategic acquisition of Foran Mining.

Q: What is the expected production increase for the combined company?
A: S&P forecasts an 80% increase in annual gold-equivalent production to approximately 900,000 ounces by the end of 2027.

Source: Investing.com