What to Expect from Eldorado Gold’s Q3 Conference Call


Nov. 20 2020, Updated 12:15 p.m. ET

EGO’s stock performance

Eldorado Gold (EGO) stock dropped significantly in 2017 due to the standoff with the Greek government and some technical issues at its mines in Turkey. The stock continues to be pummeled due to these issues in 2018.

Year-to-date, EGO has declined 36.2%, more than twice the loss reported by the VanEck Vectors Gold Miners ETF (GDX) in the same period. Among its peers (GDXJ), only New Gold (NGD) stock has recorded a poorer performance with a YTD (year-to-date) loss of 76.0%. Among EGO’s peers, Agnico Eagle Mines (AEM), Yamana Gold (AUY), and IAMGOLD (IAG) have returned -20.3%, -14.7%, and -31.9%, respectively, YTD.

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Recent development

On September 18, Eldorado said it would seek 750 million euros in compensation from Greece for damages suffered due to delays in the issuance of permits for its Skouries project. On May 22, the news came out that Greece was aiming to resolve a long-standing standoff with Eldorado Gold about its development work.

Following this positive announcement, Eldorado Gold stock skyrocketed and closed 16.8% higher on May 22. However, there hasn’t been an update on this issue to date, resulting in losses for the company.

EGO’s Q3 2018 results

Eldorado is expected to release its third-quarter results on October 26, followed by a conference call. The company is expected to provide an update on the negotiations with the Greek government during its third-quarter results. If the company can obtain all the permits required 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 67.0 million pounds of copper.

Peers (GDX)(GDXJ) New Gold (NGD), Coeur Mining (CDE), and Agnico Eagle Mines (AEM) are also developing projects to improve their production and cost profiles.


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