Eldorado Gold dividend per shares 2012 : Eldorado Gold Corp. (TSX:ELD) said Monday its next dividend will be 50 per cent higher than the previous payout in August, thanks to higher bullion prices. Eldorado says it will pay a dividend of nine cents per share on Feb. 14 to shareholders of record as of Jan. 31, up from a dividend of six cents per share paid in August.
The company, which ties its dividend to gold prices, produced 659,134 ounces of gold in 2011 with an average realized price of US$1,582.
It expects to produce 730,000 to 775,000 ounces of gold this year and 560,000 to 600,000 tonnes of iron ore in 2012.
The increase in gold production will come from a full-year of production from the Efemcukuru mine in Turkey where production started last year and the first production from the Eastern Dragon in China in the second half of the year.
"The addition of the Efemcukuru mine in 2011 and the planned start-up of the Eastern Dragon mine in 2012 continue to increase the company's production while maintaining costs in the lower quartile of gold producers," president and chief executive Paul Wright said in statement.
Capital spending for 2012 is expected to total US$335 million including $325 million on the gold mines and $10 million at the Vila Nova iron ore mine in Brazil.
Eldorado has operations in Brazil, China, Greece, and Turkey and surrounding regions.
UBS analyst Dan Rollins, who rated Eldorado a "buy" with a US$19 price target on the stock, noted the company had a strong finish to 2011 and topped its mid-year production guidance.
Looking to 2012, Rollins noted that "although production is in-line with our forecast due to higher than expected production from Efemcukuru and Kisladag, production from Jinfeng is significantly lower than expected due to a phased push-back of the open-pit."
Eldorado shares were down six cents at $14.74 in trading on the Toronto Stock Exchange on Monday morning. For the latest updates on the stock market, visit Stock Market Today
For the latest updates PRESS CTR + D or visit Stock Market news Today
Showing posts with label eldorado. Show all posts
Showing posts with label eldorado. Show all posts
Monday, January 9, 2012
Friday, December 30, 2011
Eldorado Gold stock outlook january 2012
Eldorado Gold stock outlook january 2012 ; Eldorado Gold Corp. (NYSE:EGO) is currently trading at $13.55. EGO is trading -20.54% below its 50 day moving average and -20.76% below its 200 day moving average. EGO is -38.74% below its 52-week high and 5.53% above its 52-week low. EGO's PE ratio is 27.10 and their market cap is $7.47B. read Eldorado Gold (EGO) stock prices forecast 2012
Eldorado Gold Corporation, Ltd. is engaged in the production of, development of and exploration for gold. It is also engaged in the acquisition of gold properties and produces gold by mining and processing ore. For the latest updates on the stock market, visit Stock Market Today
For the latest updates PRESS CTR + D or visit Stock Market news Today
Eldorado Gold Corporation, Ltd. is engaged in the production of, development of and exploration for gold. It is also engaged in the acquisition of gold properties and produces gold by mining and processing ore. For the latest updates on the stock market, visit Stock Market Today
For the latest updates PRESS CTR + D or visit Stock Market news Today
Sunday, December 18, 2011
Eldorado buy European Goldfields for C$2.5bn (US$2.4bn) in stock
Eldorado buy European Goldfields for C$2.5bn (US$2.4bn) in stock : Eldorado Gold, the Canadian-listed gold miner, has agreed to buy European Goldfields for C$2.5bn (US$2.4bn) in stock, upending a plan by Qatar’s sovereign wealth fund to take a stake in the London-listed miner.
European Goldfields, which is also quoted in Toronto, in October said that Qatar Holding, the Qatari sovereign wealth fund, would lend it $750m to fund the development of its flagship mines in Greece.
The loan agreement was a coup for the Qataris, who are planning to build an investment vehicle focused on gold. The fund, which owns nearly 10 per cent of the company, could have ended up with about 30 per cent under the deal.
But on Sunday, European Goldfields said its board had recommended a C$13.08-a-share offer from Eldorado, based on the buyer’s closing price on Friday, with European Goldfields shareholders receiving 0.85 Eldorado shares and a token amount of cash C$0.0001 per share.
The deal represents a premium of about 48.4 per cent based on where its stocks were trading earlier this month, the day before European Goldfields said it had received preliminary takeover approaches.
European Goldfields shareholders had been set to vote on the Qatar investment this week. The company said on Sunday that it intended to adjourn that investor meeting until after shareholders had a chance to vote on the Eldorado deal in February. But people familiar with the matter did not rule out another bid for the gold miner.
European Goldfields shares jumped almost 30 per cent over the past month. Canadian mining company Centerra Gold is also rumoured to have expressed interest in it.
Martyn Konig, chairman of European Goldfields, said: “Today’s transaction offers excellent value to shareholders through an immediate premium, reduced execution risk and future upside through participation in Eldorado, a leading gold growth story with a world-class asset portfolio and a compelling dividend policy.”
The company said combining with Eldorado would reduce its “single region” risk. While European Goldfields’ main asset is in Greece, Eldorado has a presence in Brazil, China, Greece and Turkey. Together the groups would have gold production of 650,000 ounces, projected to grow to over 1.5m by 2015. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
European Goldfields, which is also quoted in Toronto, in October said that Qatar Holding, the Qatari sovereign wealth fund, would lend it $750m to fund the development of its flagship mines in Greece.
The loan agreement was a coup for the Qataris, who are planning to build an investment vehicle focused on gold. The fund, which owns nearly 10 per cent of the company, could have ended up with about 30 per cent under the deal.
But on Sunday, European Goldfields said its board had recommended a C$13.08-a-share offer from Eldorado, based on the buyer’s closing price on Friday, with European Goldfields shareholders receiving 0.85 Eldorado shares and a token amount of cash C$0.0001 per share.
The deal represents a premium of about 48.4 per cent based on where its stocks were trading earlier this month, the day before European Goldfields said it had received preliminary takeover approaches.
European Goldfields shareholders had been set to vote on the Qatar investment this week. The company said on Sunday that it intended to adjourn that investor meeting until after shareholders had a chance to vote on the Eldorado deal in February. But people familiar with the matter did not rule out another bid for the gold miner.
European Goldfields shares jumped almost 30 per cent over the past month. Canadian mining company Centerra Gold is also rumoured to have expressed interest in it.
Martyn Konig, chairman of European Goldfields, said: “Today’s transaction offers excellent value to shareholders through an immediate premium, reduced execution risk and future upside through participation in Eldorado, a leading gold growth story with a world-class asset portfolio and a compelling dividend policy.”
The company said combining with Eldorado would reduce its “single region” risk. While European Goldfields’ main asset is in Greece, Eldorado has a presence in Brazil, China, Greece and Turkey. Together the groups would have gold production of 650,000 ounces, projected to grow to over 1.5m by 2015. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
Wednesday, November 30, 2011
Eldorado Gold (EGO) stock prices forecast 2012
Eldorado Gold (EGO) stock prices forecast 2012 : Eldorado Gold Corp. (NYSE:EGO) is currently trading at $16.81. EGO is trading -6.01% below its 50 day moving average and -2.28% below its 200 day moving average. EGO is -24.01% below its 52-week high and 26.39% above its 52-week low. EGO’s PE ratio is 28.49 and their market cap is $9.27B.
Technical indicators for the stock are Bearish. For a hedged play on Eldorado Gold (EGO), look at the Jul '12 $15.00 covered call for a net debit in the $13.21 area. That is also the break-even stock price for this trade. This covered call has a duration of 234 days, provides 21.42% downside protection and an assigned return rate of 13.55% for an annualized return rate of 21.14% (for comparison purposes only).
A lower-cost hedged play for Eldorado Gold (EGO) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Eldorado Gold (EGO) Jan '13 $10.00 call and selling the Jul '12 $15.00 call for a total debit of $4.25. The trade has a lifespan of 234 days and would provide 15.23% downside protection and an assigned return rate of 17.65% for an annualized return rate of 28% (for comparison purposes only). Eldorado Gold (EGO) has a current annual dividend yield of 0.38% For more informations visit Stock Market Today
Eldorado Gold (EGO) stock prices forecast 2012, Eldorado Gold (EGO)outlook 2012, Eldorado Gold (EGO) Dividend Yield 2012, Eldorado Gold (EGO)shares predictions 2012 For the latest updates PRESS CTR + D or visit Stock Market news Today
Technical indicators for the stock are Bearish. For a hedged play on Eldorado Gold (EGO), look at the Jul '12 $15.00 covered call for a net debit in the $13.21 area. That is also the break-even stock price for this trade. This covered call has a duration of 234 days, provides 21.42% downside protection and an assigned return rate of 13.55% for an annualized return rate of 21.14% (for comparison purposes only).
A lower-cost hedged play for Eldorado Gold (EGO) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Eldorado Gold (EGO) Jan '13 $10.00 call and selling the Jul '12 $15.00 call for a total debit of $4.25. The trade has a lifespan of 234 days and would provide 15.23% downside protection and an assigned return rate of 17.65% for an annualized return rate of 28% (for comparison purposes only). Eldorado Gold (EGO) has a current annual dividend yield of 0.38% For more informations visit Stock Market Today
Eldorado Gold (EGO) stock prices forecast 2012, Eldorado Gold (EGO)outlook 2012, Eldorado Gold (EGO) Dividend Yield 2012, Eldorado Gold (EGO)shares predictions 2012 For the latest updates PRESS CTR + D or visit Stock Market news Today
Eldorado Gold (EGO) stock prices Technical indicators
Eldorado Gold (EGO) stock prices Technical indicators : Eldorado Gold (NYSE:EGO) closed Tuesday's directionless trading session at $16.81. In the past year, the stock has hit a 52-week low of $13.34 and 52-week high of $22.12. Eldorado Gold (EGO) stock has been showing support around $16.42 and resistance in the $17.36 range.
Technical indicators for the stock are Bearish. For a hedged play on Eldorado Gold (EGO), look at the Jul '12 $15.00 covered call for a net debit in the $13.21 area. That is also the break-even stock price for this trade. This covered call has a duration of 234 days, provides 21.42% downside protection and an assigned return rate of 13.55% for an annualized return rate of 21.14% (for comparison purposes only).
A lower-cost hedged play for Eldorado Gold (EGO) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Eldorado Gold (EGO) Jan '13 $10.00 call and selling the Jul '12 $15.00 call for a total debit of $4.25. The trade has a lifespan of 234 days and would provide 15.23% downside protection and an assigned return rate of 17.65% for an annualized return rate of 28% (for comparison purposes only). Eldorado Gold (EGO) has a current annual dividend yield of 0.38% . For the latest updates on the stock market, visit Stock Market Today
Eldorado Gold (EGO) stock prices forecast 2012, Eldorado Gold (EGO)outlook 2012, Eldorado Gold (EGO) Dividend Yield 2012, Eldorado Gold (EGO)shares predictions 2012 For the latest updates PRESS CTR + D or visit Stock Market news Today
Technical indicators for the stock are Bearish. For a hedged play on Eldorado Gold (EGO), look at the Jul '12 $15.00 covered call for a net debit in the $13.21 area. That is also the break-even stock price for this trade. This covered call has a duration of 234 days, provides 21.42% downside protection and an assigned return rate of 13.55% for an annualized return rate of 21.14% (for comparison purposes only).
A lower-cost hedged play for Eldorado Gold (EGO) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Eldorado Gold (EGO) Jan '13 $10.00 call and selling the Jul '12 $15.00 call for a total debit of $4.25. The trade has a lifespan of 234 days and would provide 15.23% downside protection and an assigned return rate of 17.65% for an annualized return rate of 28% (for comparison purposes only). Eldorado Gold (EGO) has a current annual dividend yield of 0.38% . For the latest updates on the stock market, visit Stock Market Today
Eldorado Gold (EGO) stock prices forecast 2012, Eldorado Gold (EGO)outlook 2012, Eldorado Gold (EGO) Dividend Yield 2012, Eldorado Gold (EGO)shares predictions 2012 For the latest updates PRESS CTR + D or visit Stock Market news Today
Thursday, November 3, 2011
Eldorado Gold net profit third quarter results 2011
Eldorado Gold net profit third quarter results 2011 : Eldorado Gold (TSE:ELD) (NYSE:EGO) (ASX:EAU) saw its third quarter results meet or exceed Street estimates on Thursday after it reported record gold production, higher selling prices, and lower operating costs. For the three months ending September 30, the gold miner posted profits of $110.7 million, or $0.19 per share, up 48 percent from $74.8 million, or $0.13 per share, a year ago.
Revenues rose 71 percent to $326.1 million, from $190.3 million in the same period last year.
Analysts polled by Bloomberg Businessweek had expected 19-cents per share in earnings, on $311 million in sales.
The company produced a quarterly record total of 179,195 ounces of gold - 18 percent more than it did a year ago. Total cash operating costs fell three percent to $397 per ounce, while selling prices rose 38 percent to $1,700 per ounce during the third quarter.
"The performance of our mines during the third quarter reflects the success the company has achieved in increasing the productive capacities and efficiencies of our mines through targeted capital investments and well managed mining practices," commented president and CEO, Paul Wright.
Operations at the company's Kisladag mine in Turkey posted strong improvements, driving Eldorado's results, it said. The mine produced 86,788 ounces of gold, up 40 percent year-over-year. Throughput increased as it sent over 3.5 million tonnes of ore to the leaching pad, at a gold grade of 0.9 grams per tonne (g/t). Cash operating costs rose 12 percent to $377 per ounce at the mine, largely due to increased electricity and reagent costs associated with the leaching pad.
The White Mountain mine in China was also integral to Eldorado's operations, it said. During the quarter, the site produced 21,270 ounces of gold, up 48 percent, at operating costs of $475 per ounce, down almost one percent.
At the Vila Nova mine in Brazil, Eldorado posted revenues of $20.9 million on the sale of 170,782 dry metric tonnes of iron ore. These operations contributed $8.6 million in gross profits, the company said.
In other news, Eldorado said that shareholders of Kopy Goldfields have approved the company's purchase of another one million common shares. Eldorado's 2.7 million shareholding represents a 28.9 percent interest in Kopy, which holds seven exploration licenses over 255 square kilometres in the Lena Goldfields in Russia.
The Vancouver, B.C.-based company revised its full year production outlook to about 650,000 ounces of gold, at an average cash cost of $400 per ounce. It had originally expected gold production to be between 700,000 and 725,000 ounces, with cash costs between $390 and $410 per ounce.
As of Thursday morning, Eldorado shares rose 0.25 percent in Toronto to $19.90, and rose 0.41 percent to $19.62 in New York. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
Revenues rose 71 percent to $326.1 million, from $190.3 million in the same period last year.
Analysts polled by Bloomberg Businessweek had expected 19-cents per share in earnings, on $311 million in sales.
The company produced a quarterly record total of 179,195 ounces of gold - 18 percent more than it did a year ago. Total cash operating costs fell three percent to $397 per ounce, while selling prices rose 38 percent to $1,700 per ounce during the third quarter.
"The performance of our mines during the third quarter reflects the success the company has achieved in increasing the productive capacities and efficiencies of our mines through targeted capital investments and well managed mining practices," commented president and CEO, Paul Wright.
Operations at the company's Kisladag mine in Turkey posted strong improvements, driving Eldorado's results, it said. The mine produced 86,788 ounces of gold, up 40 percent year-over-year. Throughput increased as it sent over 3.5 million tonnes of ore to the leaching pad, at a gold grade of 0.9 grams per tonne (g/t). Cash operating costs rose 12 percent to $377 per ounce at the mine, largely due to increased electricity and reagent costs associated with the leaching pad.
The White Mountain mine in China was also integral to Eldorado's operations, it said. During the quarter, the site produced 21,270 ounces of gold, up 48 percent, at operating costs of $475 per ounce, down almost one percent.
At the Vila Nova mine in Brazil, Eldorado posted revenues of $20.9 million on the sale of 170,782 dry metric tonnes of iron ore. These operations contributed $8.6 million in gross profits, the company said.
In other news, Eldorado said that shareholders of Kopy Goldfields have approved the company's purchase of another one million common shares. Eldorado's 2.7 million shareholding represents a 28.9 percent interest in Kopy, which holds seven exploration licenses over 255 square kilometres in the Lena Goldfields in Russia.
The Vancouver, B.C.-based company revised its full year production outlook to about 650,000 ounces of gold, at an average cash cost of $400 per ounce. It had originally expected gold production to be between 700,000 and 725,000 ounces, with cash costs between $390 and $410 per ounce.
As of Thursday morning, Eldorado shares rose 0.25 percent in Toronto to $19.90, and rose 0.41 percent to $19.62 in New York. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
Tuesday, August 2, 2011
Gold stocks Review august 2 2011, Centerra Gold, Gold Miners ETF (GDX), Eldorado Gold
Gold stocks Review august 2 2011, Centerra Gold, Gold Miners ETF (GDX), Eldorado Gold : Gold stocks climbed higher Tuesday morning as the Market Vectors Gold Miners ETF (GDX) advanced $0.41, or 0.7%, to $57.78 per share. Strength in gold stocks and the GDX was fueled by the surging gold, which hit a series of new record highs today. Spot gold touched a new all-time high of $1,640 per ounce on concerns that the U.S. economy may be slipping into a double-dip recession.
Gold stocks in the news on Tuesday included Eldorado Gold (EGO0, which reported second quarter earnings in-line with analyst expectations. However, the company cut its full-year production guidance by roughly 4% to 700,000 to 725,000 gold ounces at cash costs of $390 to $410 per ounce. Shares of EGO fell $0.06 to $17.35
TD Securities analyst Steven Green maintained the firm $24.00 target price on shares of EGO, noting that “We view the guidance reduction as a relatively minor issue — the company is still in a position to potentially meet the lower end of the original guidance range. This is just a delay in the treatment of the Efemcukuru concentrate with the mine now fully operational.”
Other gold stocks in the news Thursday included Centamin Egypt (CEE.TSX), which announced second quarter operational results. Gold production in the quarter was 48,000 ounces at cash costs of $606 per ounce versus expectations of 50,000 to 60,000 ounces. Centamin revised its 2011 guidance lower from 250,000 to 290,000 ounces to 200,000 to 210,000 ounces. Shares of Centamin plunged 16.3% to C$1.80 per share early Tuesday.
Dundee Securities noted that “While the stock is down significantly, it’s yet to be seen at this point whether the issues hampering the stock are temporary or expected to be longer-lasting. The company has indicated that this is temporary and things have returned to normal and a massive overreaction by the market may provide a buying opportunity for investors willing to tolerate the country risk in exchange for exposure to an impressive gold deposit.”
Centerra Gold (CG.TSX) was another gold stock in the news Tuesday, reporting second quarter earnings of $0.30 versus consensus analyst expectations of $0.36. Scotia Capital’s analyst Trevor Turnbull, who has a C$22.00 one year price target, noted: “Gold production was 4% better than our forecast although partially offset by 5% higher total cash costs. There are no changes to 2011 production or cost guidance of 600,000-650,000 oz at $460/oz-$495/oz. However, materially higher depreciation from amortization of waste removal, greater stock-based compensation costs, and an expanded exploration budget from the ATO discovery greatly reduced earnings.” Shares of Centerra fell 2.3% to C$18.29.
Helping to boost gold and the gold stocks was news that the Bank of Korea increased the amount of gold it holds for the first time in 13 years. The move is likely an effort to diversify its portfolio away from the U.S. dollar.
Other notable gold stocks moving higher included GDX components Agnico-Eagle Mines (AEM) and AngloGold Ashanti (AU). AEM and AU rose 0.4% and 1.0%, respectively. For the latest updates PRESS CTR + D or visit Stock Market news Today
Gold stocks in the news on Tuesday included Eldorado Gold (EGO0, which reported second quarter earnings in-line with analyst expectations. However, the company cut its full-year production guidance by roughly 4% to 700,000 to 725,000 gold ounces at cash costs of $390 to $410 per ounce. Shares of EGO fell $0.06 to $17.35
TD Securities analyst Steven Green maintained the firm $24.00 target price on shares of EGO, noting that “We view the guidance reduction as a relatively minor issue — the company is still in a position to potentially meet the lower end of the original guidance range. This is just a delay in the treatment of the Efemcukuru concentrate with the mine now fully operational.”
Other gold stocks in the news Thursday included Centamin Egypt (CEE.TSX), which announced second quarter operational results. Gold production in the quarter was 48,000 ounces at cash costs of $606 per ounce versus expectations of 50,000 to 60,000 ounces. Centamin revised its 2011 guidance lower from 250,000 to 290,000 ounces to 200,000 to 210,000 ounces. Shares of Centamin plunged 16.3% to C$1.80 per share early Tuesday.
Dundee Securities noted that “While the stock is down significantly, it’s yet to be seen at this point whether the issues hampering the stock are temporary or expected to be longer-lasting. The company has indicated that this is temporary and things have returned to normal and a massive overreaction by the market may provide a buying opportunity for investors willing to tolerate the country risk in exchange for exposure to an impressive gold deposit.”
Centerra Gold (CG.TSX) was another gold stock in the news Tuesday, reporting second quarter earnings of $0.30 versus consensus analyst expectations of $0.36. Scotia Capital’s analyst Trevor Turnbull, who has a C$22.00 one year price target, noted: “Gold production was 4% better than our forecast although partially offset by 5% higher total cash costs. There are no changes to 2011 production or cost guidance of 600,000-650,000 oz at $460/oz-$495/oz. However, materially higher depreciation from amortization of waste removal, greater stock-based compensation costs, and an expanded exploration budget from the ATO discovery greatly reduced earnings.” Shares of Centerra fell 2.3% to C$18.29.
Helping to boost gold and the gold stocks was news that the Bank of Korea increased the amount of gold it holds for the first time in 13 years. The move is likely an effort to diversify its portfolio away from the U.S. dollar.
Other notable gold stocks moving higher included GDX components Agnico-Eagle Mines (AEM) and AngloGold Ashanti (AU). AEM and AU rose 0.4% and 1.0%, respectively. For the latest updates PRESS CTR + D or visit Stock Market news Today
Eldorado gold (EGO) stock Predictions and Reviews 2011 - 2012
Eldorado gold (EGO) stock Predictions and Reviews 2011 - 2012 : Eldorado Gold EGO reported second-quarter results that largely met our expectations. While the firm guided its 2011 gold production slightly down, we think investors would be better served by focusing on the progress of Eldorado's bevy of growth projects, such as Efemcukuru, Eastern Dragon, and Phase IV of the Kisladag expansion project.
Eldorado's gold production of 162,000 ounces during the quarter represented a 9% increase from the first quarter, with most of the increase stemming from the successful implementation of Phase III of the Kisladag expansion, which lifted ore throughput to 12.5 million tons per year. A much more significant move for the company, however, is the potential Phase IV expansion at Kisladag, which would double ore throughput to 25 million tons per year.
We think the successful implantation of Phase IV at Kisladag would add roughly $2 of equity value per share, but we only incorporate this in our scenario analysis for now (and not in our fair value estimate for Eldorado) given that management has not yet made a positive construction decision on this expansion project. Management said during the call that an updated study on Phase IV would be released within the next couple weeks.
In addition to the potential expansion at Kisladag, Eldorado is also moving the chains on the Efemcukuru and Eastern Dragon projects. Efemcukuru poured its first gold during the quarter, but it could take several quarters for this underground mine to reach run-rate production levels because of delayed construction on the concentrate treatment plant. Eastern Dragon also experienced a slight delay in its construction schedule, as management now expects gold production to start in the first quarter of 2012 (as opposed to the fourth quarter of 2011). However, slight hiccups are to be expected at any new mine, and we are satisfied that progress at Efemcukuru and Eastern Dragon have generally been on pace.
Like many of its peers within the gold mining industry, Eldorado experienced significant production cost inflation during the quarter, with total cash costs coming in at $477 per ounce compared to $410 per ounce in the year-ago quarter. However, the firm's operational cash costs did not increase very much; instead, much of this increase stemmed from higher royalties as well as the Qinghai province's implementation of a new ecological compensation fee on Eldorado's Tanjianshan gold mine.
The fee is assessed at CNY 40 per ton milled, which we estimate will increase unit cash costs by roughly $60 per gold ounce going forward given the current USD/CNY exchange rate. While this ecological fee is a provincial initiative and does not apply to Eldorado's other two Chinese gold mines, we think that if the other Chinese provinces follow Qinghai's example, this could significantly hurt Eldorado. For the latest updates PRESS CTR + D or visit Stock Market news Today
Eldorado's gold production of 162,000 ounces during the quarter represented a 9% increase from the first quarter, with most of the increase stemming from the successful implementation of Phase III of the Kisladag expansion, which lifted ore throughput to 12.5 million tons per year. A much more significant move for the company, however, is the potential Phase IV expansion at Kisladag, which would double ore throughput to 25 million tons per year.
We think the successful implantation of Phase IV at Kisladag would add roughly $2 of equity value per share, but we only incorporate this in our scenario analysis for now (and not in our fair value estimate for Eldorado) given that management has not yet made a positive construction decision on this expansion project. Management said during the call that an updated study on Phase IV would be released within the next couple weeks.
In addition to the potential expansion at Kisladag, Eldorado is also moving the chains on the Efemcukuru and Eastern Dragon projects. Efemcukuru poured its first gold during the quarter, but it could take several quarters for this underground mine to reach run-rate production levels because of delayed construction on the concentrate treatment plant. Eastern Dragon also experienced a slight delay in its construction schedule, as management now expects gold production to start in the first quarter of 2012 (as opposed to the fourth quarter of 2011). However, slight hiccups are to be expected at any new mine, and we are satisfied that progress at Efemcukuru and Eastern Dragon have generally been on pace.
Like many of its peers within the gold mining industry, Eldorado experienced significant production cost inflation during the quarter, with total cash costs coming in at $477 per ounce compared to $410 per ounce in the year-ago quarter. However, the firm's operational cash costs did not increase very much; instead, much of this increase stemmed from higher royalties as well as the Qinghai province's implementation of a new ecological compensation fee on Eldorado's Tanjianshan gold mine.
The fee is assessed at CNY 40 per ton milled, which we estimate will increase unit cash costs by roughly $60 per gold ounce going forward given the current USD/CNY exchange rate. While this ecological fee is a provincial initiative and does not apply to Eldorado's other two Chinese gold mines, we think that if the other Chinese provinces follow Qinghai's example, this could significantly hurt Eldorado. For the latest updates PRESS CTR + D or visit Stock Market news Today
Saturday, July 16, 2011
eldorado gold corporation stock prediction july 2011
eldorado gold corporation stock prediction july 2011 : Eldorado Gold Corporation (NYSE:EGO) shares closed the session higher by $0.18 or 1.02% from its previous close. Eldorado's latest price action developed a short term reversal pattern in the form of a tweezer top, which is a candlestick pattern that is usually formed at the end of a uptrend. Given that the tweezer top is considered a reversal pattern, traders with long positions need to monitor stock price action for confirmation of weakness and plan position accordingly.
Eldorado Gold Corporation (NYSE:EGO) engages in the exploration, development, mining, processing, reclamation, and production of primarily gold and iron properties. It owns and operates the Kisladag gold mine in Turkey; and the Tanjianshan, Jinfeng, and White Mountain gold mines in China, as well as the development projects, including the Efemcukuru gold project located in Turkey, the Eastern Dragon gold project in China, the Perama Hill gold project in Greece, and the Vila Nova iron ore project in Brazil. the company is headquartered in Vancouver, Canada.
Eldorado's stock has been a defined range with support at $13.74 and resistance at $16.46, which can be used by traders managing their trades, given the possibility of short term weakness in the stock. For the latest updates PRESS CTR + D or visit Stock Market news Today
Eldorado Gold Corporation (NYSE:EGO) engages in the exploration, development, mining, processing, reclamation, and production of primarily gold and iron properties. It owns and operates the Kisladag gold mine in Turkey; and the Tanjianshan, Jinfeng, and White Mountain gold mines in China, as well as the development projects, including the Efemcukuru gold project located in Turkey, the Eastern Dragon gold project in China, the Perama Hill gold project in Greece, and the Vila Nova iron ore project in Brazil. the company is headquartered in Vancouver, Canada.
Eldorado's stock has been a defined range with support at $13.74 and resistance at $16.46, which can be used by traders managing their trades, given the possibility of short term weakness in the stock. For the latest updates PRESS CTR + D or visit Stock Market news Today
Subscribe to:
Posts (Atom)