Eldorado Gold Corp (NYSE: EGO) had a strong day in the market yesterday on rumors that it was the center of a positive arbitration ruling. However, the stock continues up in a dramatic way this morning after the company confirmed that the rumors were true. Of course, this news excited investors, causing the gains that we’re seeing early on. Today, we’ll talk about:
- The arbitration ruling;
- what we’re seeing from the stock as a result;
- and what we’ll be watching with regard to EGO ahead.
EGO Announces Positive Arbitration Ruling
As mentioned above, Eldorado Gold is continuing its strong run that it experienced in the market yesterday after confirming a rumor of a positive arbitration ruling. Early this morning, the company confirmed that the Arbitration Panel in Greece has issued a ruling with respect to arbitration initiated by the Greek State.
According to the announcement, the Panel has submitted a ruling rejecting the Greek State’s motion that the technical study for the EGO Madem Lakkos metallurgy plant for treating Olympias and Skouries concentrates was in breach of the provisions of a Transfer Contract. Nonetheless, the company made it clear that it intends on working with the Greek government to define a clear path moving forward. In a statement, George Burns, President and CEO at EGO, had the following to offer:
We respect and acknowledge the Panel’s ruling. We have always acted in good faith and in a manner we understood to be in accordance with our obligations under the Transfer Contract, including our commitment to developing the Kassandra assets in accordance with the Greek State’s approval of the Investment Plan in 2006, and the Environmental Impact Study in 2011. We have repeatedly communicated this commitment, including during the course of the arbitration.
We believe this decision provides a foundation to allow us to advance dialogue with the Greek government in order to define a mutually-agreeable and clear path forward for our Kassandra investments. We look to the Greek State to fulfil its obligations under the Transfer Contract including issuing the outstanding permits for the Skouries project. The full, efficient and responsible development of the Kassandra assets will benefit the Greek State and its citizens, the local communities, our shareholders and our teams of Greek employees.
Eldorado has continued to demonstrate its commitment to improving the environmental impact of our investments by recently submitting the updated Technical Study for the Skouries Project which reduces our project footprint by forty percent.
What We’re Seeing From The Stock
The positive ruling by the Arbitration Panel proved to be overwhelmingly positive news for Eldorado Gold and its investors, and investors are reacting as such. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:27), EGO is trading at $1.02 per share after a gain of $0.11 per share or 12.42% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on EGO. In particular, we’re interested to see how the company moves forward with the leverage of the positive ruling from the Arbitration Panel. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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