S&P Upgrades Eldorado Gold to 'BB-' on Strong Cash Flow

S&P Boosts Eldorado Gold Rating

S&P Global Ratings has upgraded Eldorado Gold Corp. (EGO) to 'BB-' from 'B+', assigning a positive outlook. The upgrade reflects the company's improved cash flow and leverage prospects, supported by favorable gold prices and significant progress on key development projects.

Project Development and Acquisitions

The Skouries copper-gold project in Greece is a primary driver, now approximately 90% complete with production expected to begin in the third quarter of 2026. This project is forecast to produce 140,000 ounces of gold and 67 million pounds of copper annually. Additionally, Eldorado's pending acquisition of Foran will add the nearly complete McIlvenna Bay project in Canada to its portfolio.

Enhanced Financial Projections

S&P forecasts Eldorado's annual gold-equivalent production will surge by over 80% to approximately 900,000 ounces by the end of 2027. The rating agency anticipates the company's adjusted debt-to-EBITDA ratio will fall well below 1.0x in 2027. It also projects Eldorado will generate about $2 billion in free operating cash flow during 2027-2028.

Summary

The rating upgrade and positive outlook are based on strong production growth from the Skouries and McIlvenna Bay projects, leading to a significantly strengthened financial profile and cash flow generation in the coming years.

FAQ

Q: What is Eldorado Gold's new credit rating from S&P?
A: S&P Global Ratings upgraded Eldorado Gold to 'BB-' with a positive outlook.

Q: What are the main reasons for the rating upgrade?
A: The upgrade is due to improved cash flow from higher gold prices and progress on its Skouries and McIlvenna Bay development projects.

Source: Investing.com