Eldorado Gold Plunges After Forecast DisappointsLiezel Hill
Eldorado Gold Corp. plunged the most since the financial crisis after the Canadian miner forecast higher costs and lower output, prompting analysts to downgrade the stock.
Eldorado dropped 18 percent to C$7.72 at 11:05 a.m. in Toronto. It earlier fell 22 percent, the most intraday since December 2008.
Eldorado, which mines in China and Europe, expects 2015 gold output of 640,000 to 700,000 ounces, the Vancouver-based company said Tuesday after the close of trading. That compares with 789,224 ounces last year. It also forecast so-called all-in sustaining costs will rise as much as 28 percent.
The outlook is “disappointing,” said Steven Green, a Toronto-based analyst at TD Securities Inc., who downgraded Eldorado to hold from buy. Anita Soni, a Credit Suisse Group AG analyst, cut her rating to hold from buy, while analysts at Dundee Securities Ltd. and Canaccord Genuity Group Inc. lowered Eldorado to a sell recommendation.
Despite Eldorado’s slide, the stock is still up more than 9 percent this year after gold prices rallied. The metal surpassed $1,300 an ounce Wednesday in London trading for the first time since August.