Greece halts Eldorado Gold’s mining activity
Eldorado Gold (EGO) is based in Vancouver. It had to temporarily stop its mining activities at Skouries and part of its operations in Olympiada, Greece. The suspense is in regards to not fulfilling certain tests according to the contract terms. The operations could have been stopped on environmental grounds. It’s likely only temporary.
After a meeting with Prime Minister Alexis Tsipras, Energy Minister Panos Skourletis commented, “We are recalling our approval of the technical studies, which will result in the halting of operations at Skouries and part of operations in Olympiada. The company has violated some terms.”
Eldorado Gold fell by 7.40% and settled at $3.88 per share on Wednesday, August 19. Eldorado has lost ~64% on a YoY (year-over-year) basis. However, it has a minor five-day trailing loss of 0.15% that’s in line with the VanEck Vectors Gold Miners ETF’s (GDX) five-day trailing performance. Eldorado accounts for 4.04% of GDX. This is the biggest fall that it has seen since July 17. Eldorado’s assets in Greece are almost one-third of its total net operating assets. Other countries where Eldorado holds assets are China, Brazil, Turkey, and Romania.
The above chart shows Eldorado’s prices on the NYSE due to the mining halt in Greece.
Mining companies like Sibanye Gold (SBGL), Aurico Gold (AUQ), and Harmony Gold (HMY) have also seen a downfall during the trading in August. These stocks have lost ~11%, 18%, and 8%, respectively, on a 30-day trailing basis. They account for 8.20% of GDX. Miner ETFs like the SPDR S&P Metals and Mining (XME) and GDX have risen marginally by 1.23% and 2.62%, respectively, in the last month.