Eldorado Gold's (EGO) Skouries copper-gold mine in northern Greece is on track to begin production in Q3 2025 as the company has projected, RBC Capital Markets said in a Monday note following a site visit.

RBC is modelling production commencing sometime later in Q3 2025 with capital expenditures of $970 million, about 5% higher than the $920 million guidance. The project is now over 80% complete, it said.

With mine construction "advancing well" and investors getting clarity on project completion, a "strong rerate potential" into early 2025 is possible for the company, the brokerage said.

"We see minimal risk of higher project capex, with procurement substantially complete and construction well advanced. The key risk is timing in our view, with delays to first production resulting in costs of [about $40 million per quarter]," RBC said.

RBC is looking at free cash flow of about $600 million in 2026 for the company assuming full production at Skouries, "leading to expected rapid deleveraging, potential cash return and flexibility for further growth."

The brokerage has an outperform rating on the stock with a $22 price target.

Price: 15.76, Change: -0.24, Percent Change: -1.53