Eldorado Gold Corp (USA) (NYSE:EGO) has lately been in a lot of news, mainly regarding a disputed gold mine in Greece. The company’s mining operations at Skouries and Olympiada suffered a blow, after the government ordered the company to halt its mining activities. As per the details of the report, the government stated that EGO had not cleared some tests, as part of the company’s contract. The projected is expected to be worth $1 billion and is considered as one of the largest foreign projects in the country.
After a long period of waiting, one of the top courts in the country ruled in favor of the company. As per reports from the company, the lawsuit had been filed a few months back, which included a flash-melting technical study. Although this decision is only the first victory, in a series of battles between the two parties, Eldorado expects it to undermine the initial argument by the government.
At the moment, the country’s top administrative court has decided to postpone the hearing until after the elections. The final decision on whether to reverse the ministerial decision or to cancel Eldorado’s mining permit, will be discussed on October 2, 2015. The halting of operations at the mine has already resulted in a total of 2,000 employees being suspended, until after a decision has been reached in court. Furthermore, both parties are suffering huge losses as a result of these actions.
The Greek mines account for one-third of the total assets of Eldorado. Consequently, the stock has been experiencing steep declines in the market. Fortunately, the devastation of the investors was lightened by a Fed decision, to keep interest rates unchanged. As a result, the gold industry experienced a surge in pricing, which in turn led to a better performance in the stock market by mining companies, including EGO.
Eldorado Gold Corp (USA) (NYSE:EGO) reported a decline of 3.15% during the September 21 session, to close at a share price of $3.07.