Eldorado Gold says no impact on Greek operations from bank shutdown

Mon Jun 29, 2015 3:02pm EDT
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June 29 (Reuters) - Mid-sized Canadian miner Eldorado Gold Corp said it was business as usual for its operations in Greece on Monday despite the shutdown of banks in the country after a collapse in bailout talks.

"The financial controls in Greece have not impacted us - we are still paying out suppliers, employees and contractors - and progressing with our development projects," Eldorado spokeswoman Krista Muhr said in an email.

Eldorado's assets in Greece, which include one operating mine and three development projects, make up some 40 percent of the miner's operating net asset value, according to Dan Rollins, an analyst with RBC Capital Markets.

The decision in March by the then newly-elected Greek government to revoke the final construction approval at Eldorado's Skouries project has weighed on the company's share price, which is down 20 percent in the past three months.

Eldorado's stock was up 1.8 percent at C$5.03, outperforming other gold stocks on Monday after it received an important permit at its Eastern Dragon project in China. (Reporting by Nicole Mordant in Vancouver, editing by G Crosse)