Eldorado Gold (ELD.TO) had its Outperform rating and US$21 price target confirmed by RBC Capital Markets after the company reported mixed results with a modest miss on earnings but beats on production, costs and free cash flow.
In RBC's view, the company's update at Skouries is most important, with construction remaining on track for first-quarter 2026 production.
The prize continues to be the 50% production growth implied by 2027 guidance versus 2024 and potential for 20% free cash flow yield at spot prices and full production from Skouries. Further updates over the year is a key catalyst for the stock in RBC's view.
First-quarter adjusted earnings per share was US$0.28, missing the bank's estimate of US$0.30 and consensus of US$0.31. Free cash flow was US$22 million, better than consensus at a loss of US$62 million and RBC's estimate of a loss of US$90 million on lower-than-expected capital expenditure.
Total gold production was 116,000 ounces, higher than consensus at 111,000 ounces and RBC's estimate of 114,000 ounces.
Eldorado maintained its 2025 guidance, with RBC and consensus estimates in line with the midpoint of 480,000 ounces of gold produced.
On Thursday, Eldorado lost 0.6% to close at $25.79.
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