FP says Eldorado Gold finally getting out of China
FP says Eldorado Gold finally getting out of China
2016-05-17 07:24 ET - In the News
The Financial Post reports in its Tuesday, May 17, edition that Eldorado Gold is finally making its long-awaited exit from China. The Post's Peter Koven writes that Eldorado Gold unveiled a deal Monday to sell its White Mountain, Tanjianshan and Eastern Dragon operations in China for $600-million (U.S.) in cash. The buyer is an affiliate of the Yintai Group. Three weeks ago, Eldorado Gold agreed to sell its Jinfeng mine to China National Gold Group for $300-million (U.S.). The result of these two transactions is that Eldorado Gold gets completely out of China for $900-million (U.S.). Eldorado was also studying an initial public offering of its Chinese assets, but these two sales make for a quicker and cleaner exit, notes Mr. Koven. Eldorado has been trying to divest its Chinese business since 2014. The mines are smaller than its core projects in Turkey and Greece, and the company is facing a challenging political environment in Greece that requires management's full attention. Eldorado also believed it was getting insufficient value for the Chinese mines in its stock price. Mr. Koven says China is a difficult and complex place for foreign miners to operate. Its gold industry is extremely fragmented.