Key Takeaways ARMN Q3 gold output rose 36.6% YoY to 73,236 oz, tracking 2025 guidance of 230K-275K oz.ARMN advances Latin America projects, including Soto Norte PFS and Toroparu PEA in Guyana.EGO pushes Skouries start in 2026 and upgrades Lamaque, Kisladag, and Olympias operations.Aris Mining Corporation (ARMN) and Eldorado Gold Corporation (EGO) are both prominent names operating in the Zacks Mining - Gold industry. Both companies are based in Vancouver, Canada. As competitors, these two are focused on ext ...

Group 1: Company Overview - Eldorado Gold Corporation (NYSE:EGO) is recognized as one of the best gold mining companies to invest in currently [1] - The company focuses on gold and base metals production, with operations in Turkey, Canada, and Greece [6] Group 2: Price Target and Ratings - RBC Capital increased its price target on Eldorado Gold from $38 to $47 while maintaining a Buy rating [1] - BofA Securities raised its price target from $28 to $29 but reiterated an Underperform rating due to risks associated with the Skouries project [6] Group 3: Gold Price Outlook - BofA Securities expects gold prices to rise sharply, potentially reaching $5,000 per ounce by 2026, with a possibility of hitting $7,000 if the market mirrors the 2000s bull cycle [2][3] - The firm views gold as a top trade for 2026, anticipating a return of about 10% [3] Group 4: Reserve Update - Eldorado Gold increased its total proven and probable gold reserves by 5% year-over-year, reaching 12.5 million ounces, primarily driven by the Kisladag mine and the Lamaque Complex [5]

On December 17, Reuters reported that gold prices are surging sharply in 2025, marking the biggest increase since the 1979 oil crisis.Bank of America strategist Michael Widmer pointed out that portfolio diversification and expectations of further gains in gold prices are supporting the rally. Widmer noted that efforts to reduce the US current account deficit and a weaker dollar policy are also helping support gold prices.Philip Newman, managing director at Metals Focus, noted that additional support has com ...

Core Viewpoint - Eldorado Gold has increased its ownership in Amex Exploration by acquiring a significant block of shares, indicating a strategic investment move in the junior mining sector [1][2][3]. Group 1: Transaction Details - Eldorado Gold purchased 14,868,200 shares of Amex at C$4 per share, totaling approximately C$59.5 million, raising its stake to 27.3% on a non-diluted basis [2][5]. - The transaction appears to be a matched private trade as Eric Sprott divested his shares, suggesting a strategic shift in ownership within the company [1][5]. - Amex's share price increased by 5% to C$4.04, contributing to a 274% rise over the past year, with a market capitalization of C$572.3 million [4]. Group 2: Company Relationship and Future Plans - Amex's CEO, Victor Cantore, emphasized the ongoing positive relationship with Eldorado, stating that the increased shareholding does not alter their collaboration [3][9]. - Amex is advancing its Perron and Perron West projects, with a resource estimate indicating 8.2 million tonnes of measured and indicated resources containing 1.6 million ounces of gold [7]. - Future plans for Amex include bulk sampling, ongoing exploration in Quebec and Ontario, and a feasibility study expected in the first half of next year [8].

Core Viewpoint - Eldorado Gold Corporation has acquired an additional 14,868,200 common shares of Amex Exploration Inc. for a total consideration of C$59,472,800, increasing its ownership stake significantly in Amex [1][2]. Group 1: Share Acquisition Details - The acquisition price per share was C$4.00, resulting in a total investment of C$59,472,800 [1]. - Prior to the acquisition, Eldorado owned 23,758,130 shares and 207,000 warrants, representing approximately 16.77% of Amex's outstanding shares on a non-diluted basis [2]. - After the acquisition, Eldorado's ownership increased to 38,626,330 shares and 207,000 warrants, representing approximately 27.27% of the outstanding shares on a non-diluted basis [2]. Group 2: Investment Intentions - The acquisition was made for investment purposes in response to an unsolicited opportunity to increase its stake in Amex [3]. - Eldorado has no current plans that would lead to significant changes in Amex's operations or management [3]. - The company may consider increasing or decreasing its ownership in Amex's securities in the future, depending on market conditions [3]. Group 3: Regulatory Compliance - Eldorado relied on the "private agreement exemption" under National Instrument 62-104 for the acquisition, as the purchase was made from less than five persons and was not offered to all shareholders [4]. - The consideration paid was not greater than 115% of the market price of the shares at the time of the private agreement [4]. - An early warning report will be filed in compliance with NI 62-104, providing additional information regarding the acquisition [5]. Group 4: Company Background - Eldorado Gold is a producer of gold and base metals with operations in Türkiye, Canada, and Greece, and is known for its high-quality assets and responsible operations [7].

Core Viewpoint - Eldorado Gold has increased its mineral reserve base, supporting a strong production outlook for the coming years, with shares experiencing a slight increase [1][4]. Group 1: Mineral Reserves - Total reserves as of the end of September are estimated at 371.7 million tonnes grading 1.05 grams per tonne gold, equating to approximately 12.5 million ounces of contained gold, which is a 5% increase from the same time last year [1]. - The reserve increase is primarily attributed to the Lamaque complex in Quebec, which saw a 25% increase in reserves estimates, the highest since its acquisition in 2017 [2]. - Reserves at the Kisladag mine in Türkiye rose by 11% due to a higher gold price assumption and mine optimization, while reserves at Olympias in Greece increased slightly beyond depletion, driven by updated resource modeling [3]. Group 2: Production Outlook - The updated reserve estimates strengthen the company's foundation and support a robust production outlook for the next decade, with an average mine life of 13 years [5]. - The updated reserves reflect a higher gold price assumption of $1,700 per ounce compared to last year's $1,450 per ounce, reinforcing the resilience of Eldorado's portfolio [5]. Group 3: Exploration and Growth Strategy - The company has achieved a near 21% increase in inferred mineral resources due to exploration success in Canada and Greece, reinforcing its strategy to extend mine life and advance near-mine opportunities [6]. - In 2026, the company plans to continue investing in organic growth through exploration, focusing on mine life extension at existing operations and pursuing new discoveries in Canada and Türkiye [7].

Core Insights - Eldorado Gold Corporation has reported an increase in its Mineral Reserves and Resources as of September 30, 2025, with a 5% rise in Mineral Reserves and a 21% increase in Inferred Mineral Resources, reflecting successful exploration efforts and resource conversion [2][6][12]. Mineral Reserves Summary - The total Proven and Probable gold Mineral Reserves reached 12.5 million ounces, up from 11.9 million ounces in the previous year, marking a 5% increase [6][9]. - The Lamaque Complex saw a significant 25% increase in Mineral Reserves, contributing to the overall growth [2][8]. - The average mine life across operations is projected to be 13 years, with specific mine life estimates as follows: Kisladag Mine (13 years), Olympias Mine (16 years), and Skouries Project (20 years) [5]. Mineral Resources Update - Measured and Indicated Mineral Resources totaled 17.4 million ounces, reflecting a 5% decrease from the previous year, primarily due to depletion at Kisladag and Perama Hill [11]. - Inferred Mineral Resources increased to 8.2 million ounces, a 21% rise, driven by new resources identified at Bonnefond and Perama Hill [12][14]. Exploration and Growth Strategy - The company plans to continue investing in organic growth through exploration, focusing on extending mine life at existing operations and pursuing new discoveries in Canada and Turkiye [5][17]. - Successful resource conversion at the Lamaque Complex, particularly in the Ormaque and Triangle zones, has positioned the complex for long-term growth [4][13]. Detailed Changes in Mineral Reserves - The following changes in Mineral Reserves were noted: - Lamaque Complex increased from 1.3 million ounces to 1.6 million ounces, a change of 314, with significant contributions from Ormaque and Triangle zones [9][13]. - Kisladag increased by 11% to 3.9 million ounces, while Olympias saw a slight increase to 1.8 million ounces [8][9]. Financial Assumptions - The updated Mineral Reserves reflect a conservative gold price assumption of $1,700 per ounce, up from $1,450 per ounce in the previous year, indicating a resilient portfolio [2][6].

Core Insights - Eldorado Gold reported mixed Q3 results, with production declining due to operational issues at Olympias and increased costs at its Turkish projects [1] Production and Operational Performance - Production fell in the last quarter, attributed to operational challenges at the Olympias site [1] - Increased costs were noted at projects in Turkey, impacting overall performance [1] Financial Health and Strategy - Despite the challenges, the company is focused on solidifying its strong financial position [1]

Core Insights - Eldorado Gold Corporation is a mid-tier gold and base-metals producer with diversified operations in Turkey, Canada, and Greece, appealing to a wide range of investors [2][3][43] - The company has shown renewed operational momentum in 2025, supported by revenue growth and a disciplined capital allocation strategy, including buybacks and project investments [2][10] - Eldorado's operational profile includes a mix of conventional gold operations and polymetallic production, which helps in managing costs and enhancing cash flow [6][17] Company Overview - Eldorado Gold Corporation is publicly traded on the Toronto Stock Exchange under the ticker TSX:ELD, with a market capitalization of approximately CAD 5.15 billion [3][9][34] - The company operates key mines such as Kışladağ, Efemçukuru, the Lamaque Complex, and Olympias, utilizing both open-pit and underground production methods [3][5] - The asset mix includes high-grade underground operations and bulk-tonnage open pits, providing a balance of cost and grade exposure [6][18] Financial Performance - Recent net sales are reported in the range of approximately US$1.7–1.8 billion, with net income between US$300–360 million for recent periods [9][11][12] - The company has a P/E ratio of 12.3x for 2025, with a forward P/E estimate near 6.7x for 2026 [11][12] - Eldorado has historically not positioned itself as a high-dividend payer, focusing instead on capital for development spending and share buybacks [11][40] Operational Strategy - The operational strategy emphasizes cost control, commodity diversification, and staged project execution, with by-product credits from polymetallic production helping to reduce effective gold cash costs [17][21] - Key operational features include a focus on production growth initiatives and capital allocation decisions, with regular comparisons to peers like Gold Fields and AngloGold Ashanti [7][10] - The company has a development pipeline that includes projects like Perama Hill and Skouries, which can extend mine life and improve production profiles if permitted and financed [6][22] Market Position - Eldorado's mid-cap scale garners attention from specialized resource funds and analysts tracking the metals sector, with its market position providing exposure to gold with operational diversification [29][33] - The company is often compared to larger gold producers like Barrick Gold and Newmont Corporation, with distinct advantages in its asset mix and production capabilities [31][39] - Index membership on the TSX influences passive fund ownership and visibility among institutional investors [29][30]

Financial Data and Key Metrics Changes - In Q3 2025, Eldorado Gold reported net earnings from continuing operations of $57 million, or $0.28 per share, with adjusted net earnings of $82 million, or $0.41 per share, excluding one-time items [12][14] - Free cash flow for the quarter was negative $87 million, but underlying free cash flow, excluding capital investments in the Skouries project, was positive $77 million [12][14] - Total cash costs were $1,195 per ounce sold, and all-in sustaining costs were $1,679 per ounce sold [15] Business Line Data and Key Metrics Changes - Gold production for the third quarter was 115,190 ounces, with operational performance at Lamaque benefiting from early processing of the second bulk sample [5] - Kisladag produced 37,184 ounces at a total cash cost of $1,309 per ounce sold, impacted by lower tons mined due to equipment availability [25] - Olympias produced 13,597 ounces, with total cash costs of $1,869 per ounce sold, affected by flotation circuit stability issues [23] Market Data and Key Metrics Changes - The company tightened its 2025 gold production guidance to between 470,000 and 490,000 ounces, while total cash costs were revised upwards to between $1,175 and $1,250 per ounce sold [6][12] - The increase in costs was attributed to record-high gold prices and higher royalty rates in Türkiye, as well as lower performance at Olympias [6][14] Company Strategy and Development Direction - The company is focused on advancing its growth strategy, particularly with the Skouries project expected to reach cash flow inflection in 2026 [11][29] - Eldorado Gold is committed to disciplined capital allocation and returning value to shareholders through share repurchase programs [8][29] - The management emphasized the importance of safety, operational excellence, and ESG initiatives as part of its long-term strategy [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage challenges, particularly at Olympias, and highlighted ongoing efforts to improve recovery rates [58][63] - The company is optimistic about the future, with plans to update the market on capital and operating costs in 2026 [47][68] - Management acknowledged the potential for M&A opportunities but emphasized a focus on current projects and operational improvements [33][34] Other Important Information - The company completed a share repurchase program, buying back approximately 3 million shares for a total of $79 million in Q3 2025 [8][9] - The Skouries project is on track, with construction progress reported at 73% for phase two [18] Q&A Session Summary Question: What is the desired outcome for the investment in Probe Gold? - Management indicated that the investment was initially aimed at supplementing ore for the permitted mill capacity, but the recent developments did not align with strategic initiatives [32] Question: What is the timeline for Skouries and potential risks? - Management confirmed that the dry stack filter plant is critical, and they are confident in meeting the timeline for first concentrate production by Q1 2026 [34][35] Question: What are the expected impacts of the whole ore agglomeration project at Kisladag? - The project aims to enhance permeability in the leach pad, potentially reducing the leach cycle from 300 days to 200 days, improving recovery rates [36] Question: What is the definition of commercial production for Skouries? - Commercial production is expected to be defined as achieving 80% of design nameplate throughput, with a ramp-up to 100% by the end of 2026 [42][43] Question: What are the expectations for dividends and capital allocation? - Management indicated that 2026 will be a key year for cash flow generation, and they will consider implementing a sustainable dividend at that time [67]