TORONTO – Eldorado Gold’s stock price plunged in heavy trading Wednesday after the company’s 2015 guidance revealed that it expects to produced fewer ounces of gold at a higher cost than last year.
Eldorado shares (TSX:ELD) were down about 17 per cent at C$7.79 with more than 8.8 million traded by mid-afternoon — making it one of the most active companies on Canada’s largest stock market.
Among other things, Eldorado estimated that it will produce between 640,000 and 700,000 ounces of gold this year at an all-in sustaining cash cost of between US$960 and $995 an ounce.
That would be less gold produced at a higher cost than in 2014, when the sustaining cash cost averaged US$780 an ounce and production totalled 789,224 ounces — a record for the Vancouver-based company.
Several analysts lowered their ratings for Eldorado stock after the guidance was released.
Despite Wednesday’s decline in Eldorado’s stock price, it’s still up since the beginning of 2015.
The stock’s low so far in 2015 was $6.93 in intraday trade on Jan. 2. It traded as high as $9.68 on Tuesday, before the 2015 guidance was issued about two hours after public markets closed.