April 1st, 2009:
Eldorado Gold Corp (EGO)
Current Price: $9.14
www.eldoradogold.com
Eldorado Gold Corp (EGO) is a gold producer active in exploration and development in Brazil, China, Turkey, Greece, and surrounding regions. EGO is one of the lowest cost pure gold producers in the world and has a goal of producing 700,000 to 800,000 ounces of gold per year by 2013. EGO is well positioned to grow in value as they create and pursue new opportunities in gold and other resources.
EGO holds 100% interest in the Kisladag mine, which covers 15,717 hectares and is located near Usak, Turkey; and 90% interest in the Tanjianshan mine, which includes four contiguous exploration licenses totaling an area of approximately 338 square kilometers in the Qinghai Province, China.
The Kisladag Mine has a 15-year mine life with 5.5 million ounces of proven and probable gold reserves. It began commercial production in July 2006, producing 70,895 ounces of gold that year; at a cash operating cost of US$206/oz. 2007 production was 135,306 ounces at a cash operating cost of US$189/oz. 2008 production was 190,334 ounces at a cash operating cost of US$254/oz.
The Tanjianshan Mine has a 9-year mine life and began commercial production in February 2007. Its total production in 2007 was 138,162 ounces of gold at a cash operating cost of US$288/oz. In 2008, its production was 118,468 ounces at a cash operating cost of US$261/oz.
EGO also holds 100% interest in the Efemcukuru project, which consists of two pre-operation licenses covering 3,072 hectares located in the Izmir Province near the coast of western Turkey.
As of December 31, 2008, EGO had 7.6 million ounces of proven and probable gold reserves and an additional inferred resource of 4.2 million ounces.
EGO produced a total of 308,802 ounces of gold in 2008 up from 281,135 ounces in 2007. EGO made two acquisitions in 2008 which have the potential to add a total of 300,000 ounces in annual production.
EGO currently has over $277 million in revenue, 159% quarterly revenue growth, over $105 million in cash, and no debt.
EGO has a strong balance sheet and as one of the lowest cost gold producers in the industry we believe the company is positioned perfectly to capitalize on the upcoming boom in gold which will contribute significantly to EGO's bottom line profits. In our opinion, EGO has a lot of upside potential at its current levels for 2009.
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