Currently viewing Global edition

Greece reportedly flags permitting progress for Eldorado

Eldorado Gold’s (TSX: ELD) prospects are looking more promising in Greece after the new government reportedly said it would soon issue permits for the company’s stalled development project in the country’s north.
Greece reportedly flags permitting progress for Eldorado Greece reportedly flags permitting progress for Eldorado Greece reportedly flags permitting progress for Eldorado Greece reportedly flags permitting progress for Eldorado Greece reportedly flags permitting progress for Eldorado

Eldorado Gold’s stalled Skouries project in Greece

Staff reporter

The energy ministry said on Monday it would fully conform with rulings by the country's top administrative court, concerning permits for an enrichment plant at Skouries, Reuters reported.

Eldorado started construction at Skouries in 2013 then mothballed the gold-copper project in 2017, citing long-running permitting delays.

Skouries is expected to produce an average annual 140,000 ounces of gold and 66.9 million pounds of copper over a 23-year mine life.

Eldorado has put total development capex at US$689.2 million with after-tax NPV (5% discount) of $925 million and IRR of 21.2%, using a gold price of $1,300/oz and $2.75/lb for copper.

"Realising the potential of Eldorado's investments in Greece offers significant value for our investors, local communities and the Greek economy," Eldorado president and CEO George Burns said last month.

"We are encouraged by our initial discussions with the Greek government."

Eldorado shares started rising in recent months amid anticipation of the change in government, with incoming energy minister Kostis Hatzidakis indicating his support for Skouries in July.

The company expects to meet its 2019 production guidance of 390,000-420,000oz of gold from its operations in Greece, Turkey and Canada.  

Eldorado shares spent much of the past 12 months around the C$5 mark.

They shot to a two-year high of $12.85 last week and last traded at $12.24, to capitalise it at $1.9 billion (US$1.4 billion).