Eldorado Gold drops as Skouries capex rises and Q1 free cash flow turns negative
Eldorado Gold (EGO) is down 3.51% after reporting Q1 2026 results that included negative free cash flow of $129.1 million as spending ramps for its Skouries project. The company also raised Skouries Phase 2 total project capital to about $1.315 billion, up roughly $155 million from the prior estimate.
1. What’s moving the stock
Eldorado Gold shares are sliding Friday, May 1, 2026, as investors digest the company’s Q1 2026 update that paired strong operating metrics with heavier project spending. The quarter showed free cash flow of negative $129.1 million (including Skouries), reinforcing that near-term cash generation is being pressured by growth capital as the flagship Skouries copper-gold project approaches completion. (stocktitan.net)
2. The key surprise: higher Skouries capital bill
The most market-sensitive datapoint was the updated total Phase 2 project capital estimate for Skouries: approximately $1.315 billion, an increase of about $155 million versus the prior estimate. While Eldorado reiterated that the project is advancing toward construction completion on schedule, the larger capital requirement can raise questions about contingency, funding, and the path to a sustained free-cash-flow inflection once production ramps. (eldoradogold.com)
3. Results snapshot investors are weighing
Eldorado reported Q1 2026 revenue of $532.4 million and net earnings attributable to shareholders of $136.4 million ($0.69 per share), with adjusted net earnings of $188.2 million. Gold production totaled 100,358 ounces, and the company ended the quarter with $629.7 million in cash and cash equivalents, giving it liquidity but not eliminating sensitivity to any further cost creep at Skouries. (stocktitan.net)
4. What to watch next
Management is scheduled to discuss the quarter and outlook on its May 1, 2026 conference call, where investors will be focused on drivers behind the higher Skouries capital estimate and whether spending remains contained through commissioning. Eldorado’s latest update continues to target first concentrate in Q3 2026 and commercial production in Q4 2026, making the next few months of construction and commissioning milestones critical for sentiment. (stocktitan.net)