(Efemçukuru Gold Mine; Image Source: EJAtlas)
Financial and Technical Snapshot
The Vancouver-based Eldorado Gold (NYSE:EGO) is apparently on course to a brighter future for the rest of 2019. We almost feel it, especially after the recent positive news that should provide the future excitement expected.
In my preceding article, I suggested that the second half of 2019 was shaping up as a classic turnaround story, but I may have been too conservative, and the expected second-quarter results could turn into the best source of celebration for the long-term shareholders.
It is unmistakable that the stock has the potential for substantial appreciation starting now:
- After the company provided an entirely new strategy at the Kişladağ mine which brings total gold production in 2019 to 390K-420K ounces of gold, increasing to 520K-550K in 2020 and back to 350K-380K in 2021. This production guidance comes with a minimal CapEx 2019 expected to be under $100 million. Crushing and placing of ore on the heap leach pad at Kişladağ recommenced in April following a suspension of about one year. In the recent press release, the company said:
- Total gold production for 2Q'19 was 91,803 ounces and 174,780 ounces year to date. Production is on track to meet annual guidance of 390,000-420,000 ounces of gold.
- A significant increase in gold production is expected from the new commercial mine called Lamaque in Canada, with about 100K-110K Oz of gold in 2019.
- Commercial operations were declared at the Lamaque mine on March 31, 2019, and the first quarter of commercial operations showed strong production of 33,140 ounces of gold.
- The potential of an immediate restart of the Skouries mine in Q3'19, after the New Democracy party recently took over the government from the leftist Syriza in Greece with 39.85% of the vote. The Skouries mine has been placed on
