Canada’s Eldorado Gold on Wednesday announced a revised timeline and capital cost estimate for its Skouries copper/gold project in Greece, citing ongoing labour shortages as a key factor in the delay.

The company announced that first production at Skouries is now expected in the first quarter of 2026, with commercial production expected by mid-year.

The adjustment follows a bottom-up analysis aimed at mitigating delays and optimising the project schedule. As part of the revised plan, mining operations will start earlier, providing access to higher-grade ore and facilitating process plant commissioning.

The updated capital cost estimate for the project has increased by about $143-million, or 15.5%, bringing the total cost to $1.06-billion.

In addition, Eldorado has decided to accelerate the purchase of higher-capacity mobile mining equipment, originally planned for post-commercial production, contributing to an additional $154-million in pre-commercial production operational capital.

Labour availability remains a key risk, with the company targeting a workforce of about 1 300 at peak construction. As of late January, about 1 150 workers were on-site. Eldorado continues to integrate various skill sets required for critical construction activities, including concrete, mechanical, electrical, and control systems work.

As of December 31, 2024, Eldorado had incurred about $512-million in capital expenditures at Skouries, with around $705-million in remaining expenditures needed to reach commercial production. The project remains fully funded through a combination of the company’s balance sheet and undrawn amounts from the Skouries project finance facility.

Eldorado reported a strong financial position at year-end, with cash and cash equivalents of $857-million and total liquidity of $1.1-billion. The company’s liquidity was further strengthened by the divestment of its G Mining Ventures holding in January, generating $155-million in proceeds.

Skouries will produce an average of 140 000 oz/y of gold and 67-million pounds a year of copper.