Bank of America moved Eldorado Gold (EGO) directly to a Buy rating from an Underperform rating this week. The bank skipped the Neutral rating in between. That kind of upgrade usually shows up only when something big has changed inside the company. In Eldorado’s case, the change is a large new mine in Greece that is finally close to opening.
BofA also raised its 12-month price target on the stock from $32 to $54 a share. With the stock closing near $41.92 on Friday, that target points to about a 29% increase. Eldorado is also set to report third-quarter results in a few weeks.
Why BofA changed its mind on Eldorado Gold
The call came from BofA analyst Lawson Winder, who covers mining companies for the bank and has followed Canadian gold miners for years. Winder made the upgrade after actually visiting Eldorado’s mines in Greece. He walked around the Olympias mine and the Skouries copper-gold project before writing his note.
Site visits often change how analysts see a company because numbers on a spreadsheet only tell part of the picture. According to a report from Yahoo Finance, Winder came back from Greece convinced that Skouries has moved past its biggest risks and is now close to producing real cash.
The project produced its first copper and gold concentrate earlier this year and remains on track for full production by the end of 2026. Winder raised BofA’s key valuation multiple on the stock to 1.25x from 0.75x to reflect his conviction. He called the shift a “structural de-risking” of the mine in his note to clients.
What Eldorado actually does and why Skouries is such a big deal
Eldorado Gold is a mining company based in Vancouver. It has been around since 1992 and makes its money by mining gold in Turkey, Canada, and Greece. It runs four active mines today. Skouries stands out among those mines because it also produces copper, giving shareholders exposure to two important metals at the same time. Copper prices have risen in 2026 due to demand from power grids and AI data centers.
Skouries is located in northern Greece. It accounts for about 32% of Eldorado’s total value, based on BofA’s calculations. When one mine makes up such a large share of a company, investors are sure to watch it closely. Any delay or good news about the mine will definitely move the stock.
The mine is about to get connected to Greece’s power grid, which will reduce the costs of running diesel generators. Eldorado also plans to publish an updated technical report in December that should give investors a clearer picture of how much metal Skouries can produce over its lifetime.
Why 2027 could look completely different for Eldorado
Building a mine is expensive, and Eldorado has been spending heavily. BofA expects the company to burn through about $436 million this year as it wraps up construction and starts operations.
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Once Skouries is fully running, BofA thinks Eldorado will generate about $1.5 billion in free cash flow. That is a huge change in a short amount of time. Mining investors call this a “cash flow inflection,” and it usually leads to higher share prices, bigger dividends, or stock buybacks.
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Total gold production should also grow by 29% in 2027, based on BofA’s numbers. Eldorado’s all-in sustaining cost (basically the true cost of pulling one ounce of gold out of the ground, including all the extra spending) is expected to drop by 24% over the same period. Higher production with lower costs usually means bigger profits.
Independent trader Vince Stanzione, author of The Millionaire Dropout, said earlier this year that miners look cheaper than gold itself right now, with many trading at low earnings multiples while still paying dividends.
What could still go wrong for investors
Winder’s $54 price target depends on Skouries opening on schedule in the fourth quarter of 2026, without any big engineering problems or worker strikes. Mining projects have a long history of running late. Skouries itself has faced permit issues with Greek environmental groups in past years. If commercial production gets pushed into 2028, BofA’s cash flow estimate will change, and so will the price target.
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The stock also moves with gold and copper prices. Gold was trading near $4,272 in late September, well below its January record above $5,500. That means a drop in metal prices would affect Eldorado’s earnings even if the mine runs perfectly.
For investors who already own gold miners, this upgrade is a good reason to review how much you hold. For those without any exposure yet, waiting for the December technical report could make things clearer. Goldman Sachs strategist Daan Struyven still expects central bank purchases to support gold through 2026, and the company’s third-quarter results should give investors a better view of where Eldorado stands.