Eldorado Gold Corporation (ELD.TO, EGO) was at last look down 0.75% in US after hours trade Wednesday as it provided an update on the construction progress at its copper-gold Skouries Project, detailed 2025 production and cost guidance, and three-year production outlook.

"As previously disclosed, labour market tightness in Greece, particularly pronounced in construction, has continued to limit the availability of key construction personnel at Skouries, resulting in a slower ramp-up of the workforce and delayed progress in certain areas of the Project," the company said in a statement.

It added: "To address these constraints, Eldorado recently undertook, and has now completed, a comprehensive bottom-up analysis to evaluate, and where possible, mitigate their impact on the Project schedule and costs. This analysis included an optimization of the production plan, which is now expected to provide earlier access to higher grade ore through early start-up of mining operations and to facilitate efficient process plant commissioning."

According to Eldorado, first production at Skouries is now expected in the first quarter of 2026, followed by commercial production expected in mid-2026. It said the revised Project capital cost estimate incorporates an increase of approximately US$143 million or 15.5% over prior capital cost estimates, to a total of approximately $1.06 billion. In addition, the company expects to complete additional pre-commercial production mining and has accelerated the purchase of higher capacity mobile mining equipment (originally expected to be purchased post commercial production), resulting in $154 million of accelerated operational capital prior to commercial production.

Eldorado said the revised schedule and cost estimates "remain sensitive to a successful workforce ramp up", with a target of maintaining approximately 1,300 workers on site through the peak of construction activities. The company said it continues to make progress, achieving a daily on-site total of approximately 1,150 workers at the end of January. It added the workforce risk will remain after ramping up to the required personnel, as the company continues integrating and managing diverse skill sets (concrete, mechanical, electrical and control systems) needed to support the unfolding work fronts.

As of December 31, 2024, the company said it had incurred approximately $512 million of capital expenditures at Skouries, with approximately $705 million of remaining expenditures expected to achieve commercial production, including accelerated operational capital.

The company said it maintains a "strong" financial position, with approximately $857 million of cash and cash equivalents and total liquidity of approximately $1.1 billion as of December 31, 2024. It added the project remains fully funded through a combination of its balance sheet and remaining undrawn amounts under the company's Skouries Project finance facility. Year-end liquidity has been further augmented by the divestment of its G Mining Ventures holding in January 2025 for proceeds of $155 million.

"While we have revised the start-up and cost estimates, we remain confident in Skouries' long-term value, highlighted by an initial 20-year mine life that is expected to have a transformational impact on our production and costs," said George Burns, President and CEO. "Skouries will increase our operational scale and strengthen our foundation for sustainable growth and long-term value. We continue to operate responsibly and sustainably and the Skouries Project will continue to be a significant contributor to the Greek economy and local communities, with hundreds of jobs and significant social investments for the people of the Aristotle Municipality.

"Our updated 2025 gold production guidance is expected to be between 460,000 and 500,000 ounces. This has been lowered from our prior outlook provided in 2024 to reflect the change in initial production at Skouries from the third quarter of 2025 to the first quarter of 2026. In addition, guidance at both Kisladag and Olympias has been lowered compared to our prior 2025 guidance provided in 2024. At Kisladag, expected production has been impacted by longer than planned leach cycles and lower grade stacked. At Olympias, production guidance has been impacted by a delay in mill expansion commissioning to 650 ktpa and unscheduled maintenance of the gold concentrate filters.

"Our costs have increased due to wage pressures in Turkiye and Quebec and increased royalties across the global portfolio due to the anticipated continuation of higher gold prices. In Turkiye, the increase is primarily the result of inflation not currently being fully offset by the depreciation of the Lira against the US dollar. At the Lamaque Complex the increase is primarily the result of wage pressure from a competitive labour market in Quebec and deepening of the mine and lower grade in the top of Lower Triangle."