Eldorado Gold: Skouries Strengthens My Bullish Thesis, But Cash Flow Must Follow

Summary Eldorado Gold advances with Skouries and Mcllvenna Bay, both now producing first concentrates, strengthening my bullish thesis. Skouries' ramp-up and substantial ore stockpile boost confidence, but stable profitability and margins remain to be demonstrated in upcoming results. EGO's current operations generate cash, but major investments in new projects keep free cash flow negative; financial flexibility remains solid with $554.6M in cash. My updated SOTP model yields a $36.94 NAV/share; applying a 1.25x NAV multiple raises fair value to $46.18, implying 7% upside. showcake/iStock via Getty Images In June I have given Eldorado Gold ( EGO ) a buy rating as I was expecting that Skouries and McIlvenna Bay start are going to help the company make more cash and will improve copper This article was written by CAN Analyst 1.42K Followers Follow I’m an independent equity trader and licensed financial advisor focused on uncovering high-upside opportunities in overlooked sectors especially focusing on small-caps, energy, commodities, and special situations. My investment strategy is based on growth. I look for fundamental momentum (EPS, ROE, revenue), price-volume confirmation, and macro filters. I also use econometric tools and calculations to analyse market direction, cycles and behaviour. I’ve been managing personal capital since 2020 and advising under MiFID II since qualifying with a license. I hold a bachelor’s in Business Administration and Economics and am currently completing a master’s in Finance. My masters thesis topic: Impact of Financial Results Announcements on Stock Returns and Trading Volumes of Micro-Capitalization Gold Mining Companies. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.