Eldorado Gold Unmoved by Greek Drama
Arbitration threat doesn't affect our fair value estimate for the miner.
Greece’s Ministry of Environment and Energy said last week that it will be pursuing arbitration proceedings against Eldorado Gold (EGO)/(ELD) over the company’s Greek development projects. Minister George Stathakis was quoted as saying, “The aim is to safeguard public interest by developing the region’s mineral resources in line with the existing environmental terms and standards.”
We’re confused by the announcement, as Stathakis himself granted Eldorado a permit for the Skouries mine in November 2016, a week after assuming his position as minister. Also, Eldorado has released a statement that it has not received any formal notification or any details on any potential arbitration. However, such unexpected and dramatic moves have been all too common in the history between Eldorado and Greece.
Kristoffer Inton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.