Finally, Eldorado Gold (NYSE:EGO) received the license from the Greek environment ministry that allows the company to set up a processing plant in Olympias, which is crucial for the development of the mine.
The company's projects in the Halkidiki Mining District (Greece):
"The project can now continue so that from the first quarter of 2017 the ore that will be produced at the mine will be processed at the Olympias facility," Hellas Gold said in a statement.
Some figures on Olympias' project (Figures released June 2015 - update expected to reflect new project timing):
Since 2012, Eldorado invested in excess of US$450 million on the construction and development of the two mines in Greece. Once these two mines reach commercial production, Hellas Gold will become one of Greece's top exporters. The funds invested in Greece to date have been used primarily for payments to Greek stakeholders, such as the company's employees, suppliers of goods and services, contractors and government.
Eldorado's building opportunities in Greece:
About 500 people were at risk of being laid off at Olympias if Eldorado hadn't received the required permit.
Eldorado is now waiting that the Greek government will timely follow up the decision of the Greek administrative Supreme Court for the Skouries Project:
Because of the inaction of the Greek government in releasing the necessary building permits, the company decided to suspend the Skouries project and lay off about 600 people.
However, the company stays rightly committed to its portfolio of Greek assets and the realizable benefits to all of the involved stakeholders, workers and the country as well.
Eldorado Gold Corp. owns and operates mines around the world. The company's activities involve various facets of the mining industry, including exploration, development, production and reclamation. Its operating gold mines include Kisladag in Turkey (100%), Efemcukuru in Turkey (100%), Tanjianshan in China (90%), White Mountain in China (95%) and Jinfeng in China (82%). Its gold projects include Perama Hill in Greece (100%), Olympias in Greece (95%), Skouries in Greece (95%), Certej in Romania (81%), Eastern Dragon in China (75%) and Tocantinzinho in Brazil (100%). Its other operating mines include Stratoni Lead and Zinc Concentrates in Greece (95%) and Vila Nova Iron Ore in Brazil (100%). The company has completed an exploration program in Romania at the Bocsa, Magura, Muncel, Brad and Deva projects, which are situated in the Apuseni district near the Certej deposit.
My point of view:
It was a good sign when the company decided to remain committed to stay present in Greece while a lot of investors were quite pessimistic about the projects in Greece giving it a 50-50 chance for an agreement. The first good news just arrived and the second one about the Skouries project is in the air.
I like the way Eldorado is operating and I would hold this stock that gained 16% over last month and outperformed the S&P 500 with 9%.
Even if 2016 will not be the right year for a boom in the gold price, I would be optimistic about Eldorado anyway, because the company has a tendency to keep costs lower than the industry average.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.