Glass Lewis Recommends Against Eldorado's Acquisition Proposal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 27 2026
0mins
Source: seekingalpha
- Shareholder Voting Advice: Proxy advisor Glass Lewis recommends that investors vote against Eldorado Gold's (EGO) C$3.8 billion acquisition proposal for Foran Mining (FMCXF), arguing that Eldorado shareholders would end up with a smaller stake in the combined entity than the value they are contributing.
- Valuation Concerns: Glass Lewis highlighted that while the merger could significantly contribute to growth and cash flow in the coming years, Eldorado is paying a relatively high valuation for a single-asset mining firm that is still transitioning to commercial production.
- Major Shareholder Opposition: L1 Capital, Eldorado's third-largest shareholder, stated it would vote against the merger at the April 7 shareholder meeting if the company proceeds, labeling the proposed transaction as “one of the most value-destructive deals we have seen in decades of investing in the mid-cap mining sector.”
- Diverging Advisor Opinions: Glass Lewis's recommendation contrasts with a report from rival proxy advisor ISS, which urged Eldorado investors to support the deal, citing the long-term growth profile from a disciplined, value-focused merger between the two companies.
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Analyst Views on EGO
Wall Street analysts forecast EGO stock price to rise
7 Analyst Rating
5 Buy
1 Hold
1 Sell
Moderate Buy
Current: 32.920
Low
33.00
Averages
48.75
High
59.00
Current: 32.920
Low
33.00
Averages
48.75
High
59.00
About EGO
Eldorado Gold Corporation is a Canada-based gold and base metals producer with mining, development and exploration operations in Canada, Greece and Turkiye. The Company operates four mines: Kisladag and Efemcukuru located in western Turkiye, the Lamaque Complex in Quebec (Lamaque), Canada, and Olympias located in Northern Greece. Kisladag, Efemcukuru and Lamaque are gold mines, while Olympias is a polymetallic operation producing three concentrates bearing gold, lead-silver and zinc. Complementing its producing portfolio is its advanced stage copper-gold development project, Skouries, in Northern Greece. Its other development projects in its portfolio include Perama Hill, a wholly owned gold-silver project in Greece. Its McIlvenna Bay Deposit is a copper-zinc-gold-silver deposit. The McIlvenna Bay Property sits approximately 65 kilometers (km) West of Flin Flon, Manitoba. The McIlvenna Bay Property is part of the prolific Flin Flon Greenstone Belt located in east-central Saskatchewan.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Eldorado Gold Releases 2025 Sustainability Report Highlighting ESG Achievements
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- Community Investment Growth: The company invested $7.6 million in community initiatives, marking a 68% year-over-year increase, which not only strengthens relationships with local communities but also enhances its corporate social responsibility image.
- Environmental Protection Achievements: In 2025, Eldorado reported a greenhouse gas emissions intensity of 0.42 tCO2e per ounce of gold, achieving 46% of its emissions reduction target, demonstrating proactive efforts in addressing climate change.
- Sustainable Product Production: The company plans to commence copper concentrate production in 2026, which is expected to significantly contribute to the global economy and the transition to a low-carbon future, further solidifying its market position in the mining sector.
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- Funding Secured: In April 2026, Lake Victoria Gold closed a binding term sheet for a gold loan facility of up to $25 million, alongside a fully committed C$3.8 million convertible debenture financing, ensuring a stable funding chain for the next development phase of the project.
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- Resource Expansion Potential: Recent drilling results from Area C returned grades of 11.88 g/t gold, confirming mineralization extending beyond the current pit design at depth and laterally, supporting the potential consolidation into a single open-pit design, which could significantly enhance the project's overall value.
See More
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See More
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- Conference Call Timing: The company will host a conference call on May 1, 2026, at 11:30 AM ET (8:30 AM PT) to discuss the financial results and address investor inquiries, enhancing stakeholder engagement.
- Webcast Access: The conference call will be webcast on Eldorado Gold's website, ensuring that global investors can access real-time updates on the company's latest developments, thereby improving transparency and communication efficiency.
- Registration and Replay Info: Participants can pre-register via a provided link, and a replay will be available until June 12, 2026, offering convenient access for investors with varying schedules to stay informed about the company's performance.
See More
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- Safety and Inclusivity in Operations: Eldorado achieved a 50% female representation on its Board and 38% among senior management, enhancing diversity in governance and fostering a positive corporate culture that prioritizes safety.
- Community Investment Growth: The company invested $7.6 million in community initiatives, marking a 68% year-over-year increase, which not only strengthens relationships with local communities but also enhances its corporate social responsibility image.
- Environmental Protection Achievements: In 2025, Eldorado reported a greenhouse gas emissions intensity of 0.42 tCO2e per ounce of gold, achieving 46% of its emissions reduction target, demonstrating proactive efforts in addressing climate change.
- Sustainable Product Production: The company plans to commence copper concentrate production in 2026, which is expected to significantly contribute to the global economy and the transition to a low-carbon future, further solidifying its market position in the mining sector.
See More
Lake Victoria Gold Initiates Construction at Imwelo Gold Project in Tanzania
- Drilling Program Commencement: Lake Victoria Gold has mobilized reverse circulation drill rigs to the Imwelo Gold Project in Tanzania, with a ~21-day sterilization drilling program set to begin in mid-May, aimed at supporting infrastructure construction and ensuring optimal facility placement, thereby advancing the project towards the construction phase.
- Funding Secured: The company successfully closed a gold loan facility of up to $25 million and secured a C$3.8 million convertible debenture financing in April 2026, ensuring a stable financial foundation for the project and providing robust support for subsequent construction activities.
- High Gold Recovery Rates: Metallurgical work at the Imwelo project has confirmed gold recovery rates of up to 97% using conventional methods, a critical de-risking factor that indicates potential for low-capex operations and enhances investor confidence in the project's viability.
- Resource Expansion Potential: Recent drilling results from Area C returned grades of 11.88 g/t gold, confirming mineralization extending beyond the current pit design at depth and laterally, supporting the potential consolidation into a single open-pit design, which further enhances the project's economic outlook.
See More
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- Drilling Program Commencement: Lake Victoria Gold has confirmed the mobilization of reverse circulation drill rigs to the Imwelo Gold Project in Tanzania, with a ~21-day sterilization drilling program set to begin in mid-May, aimed at supporting infrastructure construction and ensuring optimal placement of key facilities.
- Funding Secured: In April 2026, Lake Victoria Gold closed a binding term sheet for a gold loan facility of up to $25 million, alongside a fully committed C$3.8 million convertible debenture financing, ensuring a stable funding chain for the next development phase of the project.
- High Recovery Rate Confirmed: Metallurgical work at the Imwelo project has confirmed gold recovery rates of up to 97%, a critical de-risking input that enhances the economic viability of the projected low-capex open-pit operation, thereby strengthening investor confidence.
- Resource Expansion Potential: Recent drilling results from Area C returned grades of 11.88 g/t gold, confirming mineralization extending beyond the current pit design at depth and laterally, supporting the potential consolidation into a single open-pit design, which could significantly enhance the project's overall value.
See More
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- Significant Revenue Growth: The company achieved revenue of $532.43 million in Q1, a 49.9% year-over-year increase, surpassing market expectations by $25.17 million, demonstrating robust sales and market demand recovery, further solidifying its industry position.
- Gold Production and Sales: Gold production totaled 100,358 ounces, with sales of 100,619 ounces at an average realized price of $4,891 per ounce, showcasing the company's competitiveness and effective sales strategy in the gold market.
- Cost Control and Outlook: Production costs were $188.2 million, with cash costs at $1,470 per ounce; full-year cash costs are expected to range between $1,220 and $1,420 per ounce, reflecting effective cost management while maintaining 2026 production guidance, highlighting long-term growth potential.
See More
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- Gold Production and Sales: In Q1 2026, Eldorado Gold produced 100,358 ounces and sold 100,619 ounces of gold, reflecting a 13% decrease from Q1 2025; however, the average realized gold price surged to $4,891 per ounce, driving total revenue up by 50% to $532.4 million.
- Cost and Profit Performance: Production costs rose to $188.2 million, leading to total cash costs of $1,470 per ounce and all-in sustaining costs (AISC) of $1,942 per ounce, reflecting pressures from increased labor and royalty expenses, yet net earnings reached $136.4 million, an 88% increase year-over-year.
- Capital Expenditures and Cash Flow: Total capital expenditures for the quarter amounted to $318 million, including $135.6 million for the Skouries project; despite a negative free cash flow of $129.1 million, the free cash flow excluding Skouries was $62.9 million, indicating strong operational performance.
- Management Changes and Dividend Program: The company appointed Sally Eyre to the board and initiated a quarterly dividend program with a first payment of $0.075 per share, demonstrating commitment to shareholder returns, while CEO George Burns will retire in Q3 2026, with Christian Milau set to take over, ensuring a smooth leadership transition.
See More
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- Earnings Release Schedule: Eldorado Gold will release its Q1 2026 financial and operational results after market close on April 30, 2026, reflecting the company's ongoing performance and growth in the gold mining sector.
- Conference Call Timing: The company will host a conference call on May 1, 2026, at 11:30 AM ET (8:30 AM PT) to discuss the financial results and address investor inquiries, enhancing stakeholder engagement.
- Webcast Access: The conference call will be webcast on Eldorado Gold's website, ensuring that global investors can access real-time updates on the company's latest developments, thereby improving transparency and communication efficiency.
- Registration and Replay Info: Participants can pre-register via a provided link, and a replay will be available until June 12, 2026, offering convenient access for investors with varying schedules to stay informed about the company's performance.
See More
