RE:RE:Eldorado Gold Corp. Announces Sale Of More Chinese AssetsThe first one sold to China, Jinfeng has a Proven and Probable of 1.8Moz (sold for US$300M), and the 3 in your post were sold for US$600M. They are all low-cost producing mines with modern equipment from the West. So, the Chinese seems to have a good deal for them, because ELD want to get the cash ASAP and the Chinese has it. Not sure what the cash is used for, but if Paul Wright wanted to sink it in the Greece sink hole then I would say it's a bad idea.They need about US$1B for the stuff in Greece which is not really a stable jurisdiction: unpredictable government and temperamental labour force, and the country could go bankrupt anytime.
Another thing to consider is that with a Market Cap of some Cdn$ 4.8B and US$0.9B x 1.29 =Cdn$1.16B it may be looked at as a juicy target (4.8-1.16 = Cdn $3.02B), bite size for G with a cap of ~20B. If G does not like Greece it can try to divest this holding to get in more cash.
Note: >>FrankyB,
- one point I would like to bring out is that it's "orange and apple" to compare ELD "Proven and Probable" with ICG "M&I and IF", they are not one-to-one correspondent;
- another point is that I believe all? mines sold, if not then most of them, are low-cost production mines. So ELD would lose the income from the ozs which are churned out by those mines (and this could be significant...you might like check this out).
GH