Eldorado Gold Corp. (
TSX: T.ELD,
Stock Forum) said Thursday it has secured key permits related to forestry land, and site clearing rights that will enable it to proceed with tailings pond construction at its Skouries gold project in Greece.
The company said in a press release that the Council of State, Greece’s Supreme Court on administrative and environmental matters, has issued two court decisions that are related to the Skouries project, which is held by Eldorado’s Greek subsidiary Hellas Gold S.A.
Scotiabank precious metals analyst Tanya Jakusconek says the read through on this announcement is "very positive."
She said this is because it shows the legal system in Greece is upholding the legality of the Skouries project.
Jakusconek estimates that Skouries accounts for 28% of Eldorado’s net asset value (or $1.87 per share).
“Part of the capital spending of $200 million originally planned for 2015 has been delayed into 2016 as a result of the permitting issues,’’ Scotia Capital said in a report.
The report says Eldorado expects to commission the project in the first quarter of 2017. Production is forecast at 143,000 ounces annually from 2017 to 2021 at a cash cost below $400 an ounce.