Eldorado Gold downgraded at Credit Suisse for second time in a month

|About: Eldorado Gold Corporation (EGO)|By:, SA News Editor

Eldorado Gold (EGO -6.6%) plunges after Credit Suisse downgrades shares to Underperform from Neutral with a $2.40 price target, cut from $2.25, at Credit Suisse, just a month after an earlier downgrade at the firm.

Credit Suisse cites continued setbacks in Greece, another re-assessment of timelines and capital plans in Greece in light of ongoing challenges, and prolonged negative free cash flow until 2021 if Skouries is built, or 2018 positive free cash flow of ~$100M but a reduced net asset value estimate if the mine is suspended.

EGO issued a second guidance downgrade due to the Olympias tailings filter issue, now forecasting 290K-340K oz. in 2017 at $900/oz all-in sustained cost from its earlier view of 365K-400K oz. at $845-$875/oz. in early 2017; Credit Suisse's new estimate is 301K oz. at $894/oz. from its earlier 343K oz. at $855/oz.