Dallas, Texas 01/28/2014 (FINANCIALSTRENDS) – The Canadian gold mining firm Eldorado Gold Corp (USA) (NYSE:EGO) has posted a 4.8 percent loss in its market valuation during trading on 27th January. Its share price had settled at $6.29 per share by end of day’s trading, plummeting to 47.5 percent lower than its 52 week high price bench mark.
Yesterday’s weakness in the stock of Eldorado Gold Corp (USA) (NYSE:EGO) has continued from last week, when on 16th January its Chief Executive Officer Paul N. Wright announced the operating results for the full year 2013 operations and also provided updates for 2014. The lack of investor confidence in the stock is a bit surprising, since the 2013 operation results were quite positive.
Paul N. Wright, Chief Executive Officer of Eldorado Gold Corp (USA) (NYSE:EGO) expressed his happiness in the 2013 operations and prospects for 2014 by commenting that, “The Company continues its disciplined approach towards increasing low cost profitable production, growing its reserve base and the responsible deployment of its financial resources. Forecast gold production for 2014 will grow an additional 6% to between 730,000-800,000 ounces at a cash cost ranging between $550-590/oz.”
The highlights from the operating results announcements were as follows:
- The production for the full year went up by 10 percent to 721,201 ounces of gold in 2013 as compared to 2012.
- Boasts of cash and total cash receivables of close to $623 million.
- In order to sustain the growth in its production activities, the firm has forecasted putting aside $170 million as operational expenses
- Plans to pour in more than $345 million as capital expenditure to develop new mines. The update highlighted the $215 million it has set aside for further extending the Skouries project.
It is appropriate to note here that the stock lost close to 5.8 percent during trading last week, post the results update.