- Many gold miner stocks are up YTD but not Eldorado Gold (NYSE:EGO), thanks to uncertainty about Greece’s financial situation given the company’s presence there.
- But J.P. Morgan analyst John Bridges believes any Greece exit from the euro zone actually could help EGO position itself as a pillar of a new Greek economy, and that the miner’s operations at Skouries and Olympias could act as a life boat.
- "Assuming domestic prices fall as the country adjusts to levels that make its tourist industry attractive again, then Eldorado’s margins should improve,” Bridges says, adding at least half of a mining company’s cost structure typically includes payments to local labor and other suppliers.