Eldorado Gold Corporation (EGO): Strategic Growth, Strong Balance Sheet, and Long-Term Value

Eldorado Gold Corporation (NYSE:EGO) is one of the best affordable long term stocks to buy according to hedge funds. On February 4, S&P Global Ratings placed Eldorado Gold Corporation (NYSE:EGO) on CreditWatch positive, citing robust gold prices and progress at its nearly completed Skouries copper-gold project in Greece, which is set to start commercial production by mid-2026. With spot gold around $5,000 per ounce, far above S&P’s $3,300 assumption for 2026, the company has seen stronger cash flow, supported by a cash balance exceeding $1 billion.

Earlier, Eldorado announced a C$3.8 billion all-stock acquisition of Foran Mining, adding the nearly finished McIlvenna Bay project in Saskatchewan to its portfolio. The mine, 85% complete, is expected to produce copper, gold, silver, and zinc over an 18-year reserve life. Eldorado shareholders will own 76% of the combined company, with Foran shareholders holding 24%. The deal is expected to close in Q2 2026, pending approvals.

Although Eldorado’s stock initially fell 8.2% on the announcement, the company expects substantial long-term gains. By 2027, combined gold-equivalent production could rise more than 80% to around 900,000 ounces, with projected EBITDA of $2.1 billion and free cash flow of $1.5 billion. S&P anticipates adjusted debt-to-EBITDA to drop below 1.0x, with strong cash generation once Skouries and McIlvenna reach full production, even if gold prices moderate.

Eldorado Gold Corporation (NYSE:EGO) and its subsidiaries mine, explore, develop, and sell minerals in Turkey, Canada, and Greece, with gold as its primary product, along with silver, lead, and zinc.

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Disclosure: None. This article is originally published at Insider Monkey.