Eldorado Gold Says ‘Business as Usual’ at Greek MineChristopher Donville and Simon Casey
Eldorado Gold Corp. said it’s continuing to develop a mine in Greece after a minister in the country’s new government expressed opposition to the project, sending the company’s shares tumbling.
Eldorado plunged as much as 22 percent intraday in Toronto on Friday after Reuters reported the comments from Energy Minister Panagiotis Lafazanis.
“It’s business as usual,” Krista Muhr, a spokeswoman for Vancouver-based Eldorado, said in a phone interview. “We are legally entitled to carry out our development.”
The Skouries mine is under construction in northern Greece and is scheduled to start production next year, according to Eldorado’s website. The company said in October the site employed more than 2,000 workers.
The project has attracted opposition amid concern about its environmental impact. In 2013, police said they made arrests after masked attackers burned cars and machinery at the mine.
“While we understand Eldorado enjoys Greek support at the local level for the project, the comments elevate the geopolitical risk profile of the company,” Phil Russo, an analyst at Raymond James Ltd. in Toronto, said Friday in a note.
The most likely outcome for Eldorado’s Greek assets are revised taxes and royalties, Dan Rollins, an RBC Capital analyst, said Friday in a note.
Eldorado, whose other Greek assets include the operating Stratoni mine, fell 14 percent to C$6.06 at the close in Toronto.