S&P Global Ratings has moved Eldorado Gold Corp.'s credit profile onto CreditWatch with a positive outlook, citing the combined effect of unusually strong spot gold prices and tangible development progress at the company's flagship projects.
Gold price environment and cash flow
Current spot gold trading around $5,000 per ounce substantially exceeds the $3,300 per ounce price S&P had assumed for 2026. That divergence has translated into higher operating cash flow for the Vancouver-based producer across recent quarters, a factor S&P highlighted in placing the ratings under review.
Project execution - Skouries
S&P noted that Eldorado's Skouries copper-gold development in Greece was approximately 90% complete as of December 31, 2025. The rating agency reported that commercial production at Skouries remains targeted for mid-2026 and that both execution-related and financial risks tied to the project have materially declined as construction has advanced.
Balance sheet and liquidity
The company held more than $1 billion in cash at September 30, 2025, providing a substantial liquidity buffer. That cash position was identified by S&P as a key source of financial flexibility for managing potential setbacks during project completion and ramp-up.
Acquisition of Foran Mining and McIlvenna Bay
In a separate disclosure, Eldorado said it has entered into a definitive agreement to acquire Foran Mining in an almost entirely stock-based transaction valued at about C$3.8 billion. The deal adds the nearly finished McIlvenna Bay underground project in Saskatchewan to Eldorado's portfolio; the project was described as roughly 85% complete.
S&P summarized expected McIlvenna Bay annual production as approximately 41 million pounds of copper, 20,000 ounces of gold, 444,000 ounces of silver and 54 million pounds of zinc, with an estimated reserve life near 18 years.
The rating agency anticipates the transaction to close in the second quarter of 2026, subject to shareholder approval, regulatory consents and customary closing conditions.
Pro forma production, leverage and cash flow expectations
S&P projects the combined company's annual gold-equivalent production will climb by more than 80% to roughly 900,000 ounces by the end of 2027, versus Eldorado's reported 2025 production of 488,000 ounces. The agency expects adjusted debt to EBITDA for the combined entity to be below 1.0x in 2027 and forecasts significant positive free operating cash flow once Skouries and McIlvenna reach steady-state operations, even under a scenario where gold prices decline to $2,600 per ounce in 2027.
Key takeaways
- Elevated spot gold relative to prior S&P assumptions has improved near-term cash generation.
- Progress at Skouries and the McIlvenna Bay acquisition materially reshape near- to medium-term production capacity.
- Strong cash reserves and projected low leverage support the agency's positive CreditWatch placement.