Eldorado Gold likely to put Brazil project up for sale: fund manager – by Niall McGee (Globe and Mail – April 14, 2018)


Eldorado Gold Corp. may sell its Brazilian gold operations as it seeks to raise capital over the next 18 months, says a precious-metals fund manager.

While the struggling Vancouver-based intermediate gold producer has no urgent cash crunch, its longer-term capital expenditure needs far exceed cash holdings.

In a conference call with analysts following its year-end results last month, chief executive officer George Burns said Eldorado will explore all financing options, including “divestiture at the right price of some of our assets that aren’t top priority.”

Jon Case, precious-metals portfolio manager with Sentry Investments, says the company’s Tocantinzinho gold project in Brazil is likely to go on the block. “All roads point to Tocantinzinho,” he said.

Within Eldorado’s portfolio, Tocantinzinho is one of its lowest-grade, highest-cost projects to develop. [Tocantinzinho] in Brazil would be very far down the list of rates of return, Mr. Case said. “I would suspect that is probably the main asset that’s going to be put up for sale.”

For the rest of this article: https://www.theglobeandmail.com/business/streetwise/article-eldorado-gold-likely-to-put-brazil-project-up-for-sale-fund-manager/

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