Eldorado Is the Gold Standard
Eldorado Gold is one of the few gold miners that enjoys an economic moat.
We believe Eldorado Gold (EGO) has earned a narrow economic moat. While little has changed in recent years in regards to Eldorado's position within the gold mining industry, we have gradually developed a greater appreciation for the firm's ability to generate economic profits in a normalized gold price environment (which we presently assume to be roughly $1,200 per ounce).
Economic moats in mining are almost entirely predicated on sustaining a low-cost position, which in turn depends on three major factors: low production costs, long reserve lives, and prudent capital allocation.
Morningstar Analysts does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.