Why Eldorado Gold Stock Soared Today
Actions of Eldorado gold (NYSE: EGO) took off today, jumping to 9.4% at 1:50 p.m. EDT. The market is clearly impressed with preliminary gold stock numbers for the third quarter and expects it to raise its annual forecast on October 28.
Eldorado Gold announced an 8% year-on-year jump in third-quarter gold production to 125,459 ounces as production at its largest mine, Kisladag in Turkey, increases 16% and exceeds company expectations .
Today, National Bank also raised its price target for Eldorado Gold to C $ 18 per share, from C $ 17.50 per share.
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Thanks to strong production in the nine months to September, Eldorado Gold said it is revising its previous production forecast for the full year and will provide an update when it releases its results later this month. -this.
As a outlook, Eldorado Gold’s nine-month gold production fell 9.6% to 353,268 ounces. The gold miner expected an even larger drop, but stronger production from Kisladag in the third quarter thanks to operational improvements now means Eldorado Gold will likely be able to produce more gold this year than the 430,000 ounces to 460,000 ounces forecast earlier.
This got the market excited and investors are now offering a higher gold supply.
Exceeding production forecasts is welcome, but investors in Eldorado Gold may want to pay more attention to the progress of mines that Eldorado Gold was optimistic about when it entered in 2021 – the Skouries project in the mines of Kassandra, Greece, for example.
Earlier in the year, management said: “Our goal in 2021 is to unlock the compelling value of Skouries and our entire portfolio. However, the company has yet to restart the mine and may be awaiting further approvals; management has yet to say anything about it. This is something investors may want to watch out for in the next gold equity earnings report.
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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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