Eldorado Gold (NYSE:EGO) executives outlined plans to acquire Foran Mining in a share-based deal that they said will create a larger, more diversified gold and copper producer with two major projects scheduled to enter production in 2026. The companies discussed the transaction’s strategic rationale, project timelines, expected financial profile, and key catalysts during a joint conference call featuring Eldorado CEO George Burns, Eldorado President Christian Milau, and Foran Executive Chairman and CEO Dan Myerson.
Deal terms and timeline
Burns said Eldorado will acquire all outstanding Foran shares through a plan of arrangement. Under the agreed terms, Foran shareholders will receive 0.1128 Eldorado shares for each Foran share, implying an equity value of approximately C$3.8 billion. Following closing, Eldorado shareholders are expected to own about 76% of the combined company, with Foran shareholders holding about 24%.
Strategic rationale: gold-led growth with added copper exposure
Burns described the transaction as “an important step” to build a “stronger, more competitive gold and copper producer,” citing long-life assets, a stronger balance sheet, and an increased presence in Canada. Eldorado and Foran emphasized cultural alignment and a shared focus on operational excellence and responsible mining, including carbon reduction goals.
On the call, management highlighted diversification across Canada, Greece, and Türkiye, with particular emphasis on expanding Eldorado’s Canadian footprint through Foran’s McIlvenna Bay project in Saskatchewan. Milau said McIlvenna Bay adds meaningful copper exposure, with copper expected to account for roughly 15% of revenues in 2027, while Burns noted Eldorado is still expected to be primarily a gold producer, estimating 77% gold production on a pro forma basis.
Asked whether Eldorado investors should be surprised to see the company acquire what has been viewed as a base metals company, Burns said the metal mix at McIlvenna Bay—gold, copper, lead, zinc, and silver—matches metals already present in Eldorado’s portfolio, framing the combination as “a perfect match” from both a metal and strategy perspective.
Two projects approaching production in 2026
A central theme of the call was the expectation that two large projects—Skouries in Greece and McIlvenna Bay in Saskatchewan—are fully financed and entering production in 2026. Myerson said the combined portfolio is nearing an “inflection point” marked by rising production and increasing free cash flow.
For Skouries, Myerson said the project is expected to produce 140,000 ounces of gold and $67 million of copper annually over a 20-year mine life. Burns said Eldorado has worked to de-risk the Skouries ramp-up, including drilling to confirm the first three years of open-pit ore and completing underground test stopes to confirm geotechnical parameters. He added Eldorado plans to conduct four test stopes this year, up from two previously planned.
For McIlvenna Bay, Myerson said construction was approximately 85% complete as of year-end 2025, and that the project is on budget and on schedule. He said the project is already in wet commissioning and is targeting commercial production by mid-2026. In response to questions about wildfire disruptions, Myerson said the site was evacuated for almost four weeks due to significant regional wildfires, but he said the schedule was ultimately not impacted.
Financial profile and upcoming catalysts
Milau said the combined assets are expected to transform Eldorado’s production and cash flow profile, citing consensus-based estimates that point to almost $1.5 billion of free cash flow in 2027 and more than $2 billion of EBITDA in 2027 at consensus pricing levels. He also cited pro forma liquidity and leverage figures discussed on the call, including approximately $1.5 billion of cash and equivalents at the end of the third quarter and minimal net debt of about $90 million on a pro forma basis.
Milau also pointed to Eldorado’s expected production growth, saying the company forecasts an 80% increase to more than 900,000 gold equivalent ounces in 2027. Burns and Milau argued that higher margins and increased diversification could support a “market rerate” for the combined company.
Management outlined a “catalyst-rich” period ahead, including:
- Commercial production at Skouries and McIlvenna Bay in mid-2026
- A Tesla Zone maiden resource at McIlvenna Bay in late 2026
- Olympias expansion and Ormaque commercial production in the second half of 2026
Expansion optionality at McIlvenna Bay and broader portfolio plans
Both companies highlighted the Tesla Zone as a key potential expansion opportunity at McIlvenna Bay. Myerson described Tesla as a near-mine mineralized system with direct access to existing infrastructure, suggesting it could increase scale, extend mine life, and enhance overall value. In addressing valuation questions, Myerson said the technical report investors reference is a “snapshot in time” that reflects “phase one” and is several years old, while characterizing VMS systems like McIlvenna Bay as scalable through multiple future phases.
On jurisdictional strategy, Eldorado leadership said the company remains committed to all three core regions—Canada, Greece, and Türkiye—while noting that an expanded Canadian footprint could improve portfolio balance and valuation. In response to a question about regulatory approvals, management said they do not expect approvals from Investment Canada and do not anticipate overseas approvals being required.
In closing remarks, Burns said the combination positions the companies as a “gold copper growth leader” with near-term cash flow potential, long-life assets, and alignment on sustainability and culture, while Myerson said the pairing amplifies the rerating potential as both projects transition from development into production.
About Eldorado Gold (NYSE:EGO)
Eldorado Gold Corporation is a Canada?based gold producer engaged in the acquisition, exploration, development and operation of mineral properties. The company’s core focus is on gold, silver and select base metals, with an emphasis on advancing projects through feasibility and into production. Eldorado Gold maintains a diversified portfolio of both producing mines and advanced?stage development projects.
Operationally, Eldorado Gold manages multiple gold mining operations across Turkey, Canada and Greece.
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