Eldorado Gold Corp. (
TSX: T.ELD,
Stock Forum) plunged Friday amid reports that a new leftist government in Greece is opposed to the company’s Skouries gold project.
The stock fell 15% to $5.98, leaving a market cap of $4.3 billion, based on 716.6 million shares outstanding. The 52-week range is $9.68 and $5.65.
“We are absolutely against it and we will examine our next moves on it,’’ Panagiotis Lafazanis told Reuters News service in an interview. The 63-year-old is a former Communist, who represents the more radical wing of the ruling Syriza party.
According to the Reuters report, he declined to say if the government would try to block the project from going ahead.
In a press release last week, containing Eldorado’s 2014 operating results and guidance for 2015, the company said $200 million has been budgeted this year for development work at Skouries.
Plans include advancing the plant construction, continuing with construction of the tailings dam and exploratory drift for delineation and exploration drilling underground.
Construction at Skouries is expected to be completed in late 2016.