Shares of Eldorado Gold Corp. (NYSE: EGO) are falling on Thursday and were down more than 10% at 2:30 p.m. EDT. Driving the sell-off was the company's disappointing fourth-quarter report.
Continue Reading Below
Eldorado Gold posted a loss of $20.7 million, or $0.03 per share, for the fourth quarter, falling short of the break-even results anticipated by analysts. In addition, even after making adjustments for some asset writedowns, the company still lost about $400,000 during the quarter, a steep drop from the $2.9 million it earned in the year-ago period due to a decline in sales volumes and higher costs, which came in above the company's guidance range.
In addition to those weaker results, the company reported a 10% decline in gold reserves. Driving the drop was the company's decision to go with a different option to develop its Kisladag mine in Turkey, opting to build a mill, which will optimize cash flow and returns at the expense of reserves and higher processing costs.
Today's tumble is more of the same for Eldorado Gold. The stock is now down more than 70% over the past year due to a costly acquisition, production problems, and a dispute with the government of Greece. While the company believes it has a plan to create value going forward, investors seeking a gold stock have better options than Eldorado.
10 stocks we like better than Eldorado GoldWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Eldorado Gold wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of March 5, 2018