EGO’s stock performance
Eldorado Gold (EGO) stock suffered a great deal in 2017 due to the standoff with the Greek government and some technical issues at its mines in Turkey. The falling production at its flagship mine in Turkey also impacted the stock negatively. The company’s stock price fell ~56.0% in 2017 in addition to the YTD (year-to-date) decline of 24.5%.
The VanEck Vectors Gold Miners ETF (GDX) and the SPDR Gold Shares ETF (GLD) fell 5.5% and 4.9%, respectively, YTD. Agnico Eagle Mines (AEM), Yamana Gold (AUY), and IAMGOLD (IAG) returned -1.4%, -6.7%, and -1.0%, respectively, YTD.
On May 22, there was a sense of relief for Eldorado Gold stock as the news came out that Greece is aiming to resolve a long-standing standoff with Eldorado Gold about its development work.
While Eldorado Gold points to the Greek government for not issuing the necessary permits, the government says that the company didn’t submit a complete plan. There are issues with Eldorado Gold following environmental regulations. Following the positive announcement, Eldorado Gold stock skyrocketed and closed 16.8% higher on May 22.
EGO’s Q2 2018 results
The euphoria for Eldorado stock following this news was short-lived as there haven’t been any updates on this matter. Eldorado is expected to release its second-quarter results after the market closes on July 26, followed by a conference call on July 27.
The company is expected to provide an update on the negotiations with the Greek government during its second-quarter results. If the company is able to get all of the permits to resume the work at Skouries, it’s expected to remove a significant overhang from the stock.
Skouries is one of Eldorado Gold’s most valuable mines. Skouries has 23 years of estimated mine life with an expected annual production of 140,000 ounces of gold and 67 million pounds of copper.