"BUY" Rating On EldoradoIf analyst Steven Green is correct in his takeover scenario, I think the SP will be $11.25 to $12.00
Clyde
https://www.nationalpost.com/story.html?id=361414
Turkish court rules for Eldorado Mine
Peter Koven, Financial Post
Published: Saturday, March 08, 2008
Judging by the 12% bump in shares of Eldorado Gold Corp. yesterday, investors think the legal problems the company is facing in Turkey are mostly over.
Eldorado restarted its Kisladag mine this week after a high court in Turkey refused to make a decision on its Environmental Impact Assessment and passed it back to a lower court. The company had to shut the mine last year because the higher court granted an injunction.
"We see the potential for further [gradual] share-price gains to reverse the dramatic underperformance of -32% versus the gold index since the July 2007 issuance of the temporary injunction to halt mining at Kisladag," Canaccord Adams analyst Steven Butler wrote in a note to clients. He has a "buy" rating on the stock and a target of US$9.25 a share.
But TD Newcrest analyst Steven Green noted that the case could remain in the court system "for some time" and work as a drag on Eldorado's stock price. "Kisladag is a large, low-cost gold mine, which we believe would make Eldorado a prime takeover target in the absence of this court challenge," he wrote in a note. Still, he rates the stock a "buy" rating with a target of $9 a share.