Why Eldorado Gold Stock fell 9% today
Actions of Eldorado gold (NYSE: EGO) were down 9% as of 3:40 p.m. EST Friday after the miner announced its 2020 quarterly and year-end results Thursday night. The gold producer’s operating results are strong, but the price of the metal is down more than 2.5% on the day.
Gold is in the midst of a massive sell off which is trading at prices last seen in June 2020. The precious metal has fallen by around 5% in the past two weeks. But the gold producer said he had met his expectations for the year by managing the impacts of the pandemic. Total gold production increased 34% in 2020 from 2019. Although the quarterly gold production was the company’s highest in nearly five years, lower prices led to a sequential quarterly decline. gold revenue and overall revenue compared to the third quarter of 2020.
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With the metal’s price currently trading around Q2 2020 levels, investors are reacting to this downtrend, along with a net profit that has fallen significantly from the previous year period and sequentially.
The decrease is due to a $ 40.0 million write-down of the capital works in progress for the Kisladag mining project in Turkey. The project did not meet production expectations in 2020 and is expected to drop a further 30% in 2021, resulting in an overall drop of 16% in expected gold production.
Unless the price of the metal rebounds, the coming year will be a slower year for the producer, and investors are taking that into account.
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