Thursday, January 14, 2010

Eldorado Gold Production Update

Paul Wright, President and CEO of Eldorado Gold, was pleased to announce EGO's 4th quarter production from their Kisladag and Tanjianshan mines today. Production was higher than my projections, at a combined 107,000 ounces from the two mines with a cash operating cost of $307 per ounce. This put the yearly production higher than management projections of 330,000 ounces (it was 342,820). This increase of production put my estimated 4th Quarter EPS at $0.10 from $0.09. Full financials will be announced in March.

Eldorado keeps outperforming their production targets each quarter. The recent merger with Sino-gold will allow EGO to continue to produce more and more gold at less than a $400 cash cost. It should just be a matter of time before EGO hits my price target of $16 a share. EGO closed at $14.90 today (1/14/10).

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