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Eldorado Gold Corp T.ELD

Alternate Symbol(s):  EGO

Eldorado Gold Corporation is a gold and base metals mining, development, and exploration company. It has mining operations, ongoing development projects and exploration in Turkiye, Canada, and Greece. It operates four mines: Kisladag and Efemcukuru located in western Turkiye, the Lamaque Complex in Quebec, Canada, and Olympias, located in northern Greece. Kisladag, Efemcukuru and Lamaque are gold mines, while Olympias is a polymetallic operation producing three concentrates bearing gold, lead-silver and zinc. The Lamaque Complex is located in Val-d’Or, Quebec. It includes the Triangle Mine (Upper and Lower), the Ormaque Deposit, the Parallel Deposit, the Plug #4 Deposit, and the Sigma Mill. Efemcukuru is an underground operation located in Izmir Province in western Turkiye. Its other development project in its portfolio includes Perama Hill, a gold-silver project in Greece. Its Stratoni is an underground, silver-lead-zinc mine located in the Halkidiki Peninsula in northern Greece.


TSX:ELD - Post by User

Bullboard Posts
Post by xBlitzkriegon Aug 07, 2019 11:41am
144 Views
Post# 30002130

George burns & the BSP

George burns & the BSPI thought I'd post my thoughts on here as this is a pretty big concern amongst investors. The timing and disclosure for this base-shelf prospectus is aweful. This could have been done a few days before hand and discussed along with q2. I think what is or should be affective the Sp more negatively than dilution is this fact. Management demonstrated a clear ability of obfuscation, rather than talking to investors. Here are some points to consider... -most BSPs that are filed are for 750m. Some companies don't even use them, a few years ago I was invested in HCG they filed one to comply with a deal they made with Buffett. I don't think they've used it at all, and since filing they've actually repurchased 21 million shares. As for Eldorado I think this is more like giving the car keys to your baby, it may not figure out how to use them, or it may drive your car into the f****** wall. George burns has only been the CEO for a few years now, and we have already seen him dilute shareholders once (Integra acquisition). - Gold Price. One of the main reasons why I invested in eldorado is because I predict higher gold prices. If the price continues to rise limited or no dilution would be necessary. Whether or not management can refrain from doing so remains to be seen. -Under valued share price. As much as eldorado has appreciated in recent times I still view the share price as under valued. Therefore dilution at these prices is highly value destructive. I value dilution at these prices as >1:2. For every dollar raised they are giving up more than $2 of value. The sad thing is management knows this, a couple years ago when the SP was higher than it is now a manager on the cc, stated they didn't want to dilute under valued shares. The lie detector test determined that was a lie. -skouries permits are probably incoming. This is pretty good news, but not really if it costs 750m in dilution. Which leads to the question what does management plan to do with the BSP. They did not discuss this at all a few days ago. If this is just for skouries then it probably won't be needed to be used very much. But maybe they will use the whole damn thing... Retire debt, build Skouries, build Tocantinzinho, build kisladag mill. As owners of the company were really clueless as to what management is up to in this case. -bigger bonuses. Dilution now could mean bigger bonuses for these managers further down the road. This is just something to consider. What do we do now? One could sell now for dilution fears, or wait and see for dilution to start popping up in quarterlies before selling. Another plan is to bare through dilution if it happens, shares could possibly be repurchased down the road the Greek assets do have a long life, but those share repurchases would probably be at a much higher price. This could be a great company it's sad it has such crooked management.
Bullboard Posts