Investors are racing to buy Eldorado Gold Corp (USA) (NYSE:EGO) shares after the Canadian mining company confirmed that it has received the Olympias Operating Permit and the modified Electromechanical Installation Permit for the tailings management facility at Kokkinolakkas from the Ministry of Energy and Environment. The Olympias Operating Permit is valid for a period of three years from the date of issue.
Eldorado shares are currently trading at $2.34, up $0.37 or nearly 19%. EGO has a 1-year high of $4.34 and a 1-year low of $1.77. The stock’s 50-day moving average is $2.02 and its 200-day moving average is $2.83.
At this time, remaining outstanding is:
- approval of the Technical Study for the old Olympias Mine closure and the Installation permits for the paste plants at Olympias; and
- the amended Electromechanical Installation permit for the Skouries flotation plant, as well as other matters including, but not limited to, the relocation of antiquities at the Skouries site.
The Company is also awaiting additional detail from the Greek Government regarding the pending arbitration process, which the government has publicly indicated that formal notification will be issued on 15 September, 2017. Eldorado is confident that any potential arbitration will again demonstrate the Company’s adherence to all applicable laws and regulations.
Upon approval and receipt of all the required permits, clarity around the arbitration process and a supportive government open to discussions surrounding the use and implementation of best available technologies, the Company will then be in a position to re-assess its investment options in Greece.
George Burns, President and CEO for Eldorado Gold said: “This is a positive step forward; however, we are still waiting on other permits. Open dialogue with the Government would be the Company’s preference rather than legal recourse and arbitration but we are confident that any potential arbitration will again demonstrate Eldorado’s adherence to all applicable laws and regulations and its commitment to developing its Greek assets safely, responsibly and with utmost care for the environment.”
On the ratings front, Eldorado has been the subject of a number of recent research reports. In a report issued on August 28, RBC analyst Dan Rollins reiterated a Hold rating on EGO, with a price target of $3.00, which represents a potential upside of 43% from where the stock is currently trading. Separately, on July 31, Credit Suisse’s Anita Soni downgraded the stock to Sell.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Dan Rollins and Anita Soni have a yearly average loss of 12.6% and 2.2% respectively. Rollins has a success rate of 35% and is ranked #4480 out of 4642 analysts, while Soni has a success rate of 49% and is ranked #3859.
Eldorado Gold Corp. engages in the business of development and exploration of mineral properties. It owns and operates gold, silver, lead, and zinc mines. The company was founded by Richard J. Barclay, Marco A. Romero and Gary D. Nordin on April 2, 1992 and is headquartered in Vancouver, Canada.