Gold stocks Review august 2 2011, Centerra Gold, Gold Miners ETF (GDX), Eldorado Gold

Gold stocks Review august 2 2011, Centerra Gold, Gold Miners ETF (GDX), Eldorado Gold : Gold stocks climbed higher Tuesday morning as the Market Vectors Gold Miners ETF (GDX) advanced $0.41, or 0.7%, to $57.78 per share. Strength in gold stocks and the GDX was fueled by the surging gold, which hit a series of new record highs today. Spot gold touched a new all-time high of $1,640 per ounce on concerns that the U.S. economy may be slipping into a double-dip recession.

Gold stocks in the news on Tuesday included Eldorado Gold (EGO0, which reported second quarter earnings in-line with analyst expectations. However, the company cut its full-year production guidance by roughly 4% to 700,000 to 725,000 gold ounces at cash costs of $390 to $410 per ounce. Shares of EGO fell $0.06 to $17.35

TD Securities analyst Steven Green maintained the firm $24.00 target price on shares of EGO, noting that “We view the guidance reduction as a relatively minor issue — the company is still in a position to potentially meet the lower end of the original guidance range. This is just a delay in the treatment of the Efemcukuru concentrate with the mine now fully operational.”

Other gold stocks in the news Thursday included Centamin Egypt (CEE.TSX), which announced second quarter operational results. Gold production in the quarter was 48,000 ounces at cash costs of $606 per ounce versus expectations of 50,000 to 60,000 ounces. Centamin revised its 2011 guidance lower from 250,000 to 290,000 ounces to 200,000 to 210,000 ounces. Shares of Centamin plunged 16.3% to C$1.80 per share early Tuesday.

Dundee Securities noted that “While the stock is down significantly, it’s yet to be seen at this point whether the issues hampering the stock are temporary or expected to be longer-lasting. The company has indicated that this is temporary and things have returned to normal and a massive overreaction by the market may provide a buying opportunity for investors willing to tolerate the country risk in exchange for exposure to an impressive gold deposit.”

Centerra Gold (CG.TSX) was another gold stock in the news Tuesday, reporting second quarter earnings of $0.30 versus consensus analyst expectations of $0.36. Scotia Capital’s analyst Trevor Turnbull, who has a C$22.00 one year price target, noted: “Gold production was 4% better than our forecast although partially offset by 5% higher total cash costs. There are no changes to 2011 production or cost guidance of 600,000-650,000 oz at $460/oz-$495/oz. However, materially higher depreciation from amortization of waste removal, greater stock-based compensation costs, and an expanded exploration budget from the ATO discovery greatly reduced earnings.” Shares of Centerra fell 2.3% to C$18.29.

Helping to boost gold and the gold stocks was news that the Bank of Korea increased the amount of gold it holds for the first time in 13 years. The move is likely an effort to diversify its portfolio away from the U.S. dollar.

Other notable gold stocks moving higher included GDX components Agnico-Eagle Mines (AEM) and AngloGold Ashanti (AU). AEM and AU rose 0.4% and 1.0%, respectively.

Eldorado gold (EGO) stock Predictions and Reviews 2011 - 2012

Eldorado gold (EGO) stock Predictions and Reviews 2011 - 2012 : Eldorado Gold EGO reported second-quarter results that largely met our expectations. While the firm guided its 2011 gold production slightly down, we think investors would be better served by focusing on the progress of Eldorado's bevy of growth projects, such as Efemcukuru, Eastern Dragon, and Phase IV of the Kisladag expansion project.

Eldorado's gold production of 162,000 ounces during the quarter represented a 9% increase from the first quarter, with most of the increase stemming from the successful implementation of Phase III of the Kisladag expansion, which lifted ore throughput to 12.5 million tons per year. A much more significant move for the company, however, is the potential Phase IV expansion at Kisladag, which would double ore throughput to 25 million tons per year.

We think the successful implantation of Phase IV at Kisladag would add roughly $2 of equity value per share, but we only incorporate this in our scenario analysis for now (and not in our fair value estimate for Eldorado) given that management has not yet made a positive construction decision on this expansion project. Management said during the call that an updated study on Phase IV would be released within the next couple weeks.

In addition to the potential expansion at Kisladag, Eldorado is also moving the chains on the Efemcukuru and Eastern Dragon projects. Efemcukuru poured its first gold during the quarter, but it could take several quarters for this underground mine to reach run-rate production levels because of delayed construction on the concentrate treatment plant. Eastern Dragon also experienced a slight delay in its construction schedule, as management now expects gold production to start in the first quarter of 2012 (as opposed to the fourth quarter of 2011). However, slight hiccups are to be expected at any new mine, and we are satisfied that progress at Efemcukuru and Eastern Dragon have generally been on pace.

Like many of its peers within the gold mining industry, Eldorado experienced significant production cost inflation during the quarter, with total cash costs coming in at $477 per ounce compared to $410 per ounce in the year-ago quarter. However, the firm's operational cash costs did not increase very much; instead, much of this increase stemmed from higher royalties as well as the Qinghai province's implementation of a new ecological compensation fee on Eldorado's Tanjianshan gold mine.

The fee is assessed at CNY 40 per ton milled, which we estimate will increase unit cash costs by roughly $60 per gold ounce going forward given the current USD/CNY exchange rate. While this ecological fee is a provincial initiative and does not apply to Eldorado's other two Chinese gold mines, we think that if the other Chinese provinces follow Qinghai's example, this could significantly hurt Eldorado.

eldorado gold corporation stock prediction july 2011

eldorado gold corporation stock prediction july 2011 : Eldorado Gold Corporation (NYSE:EGO) shares closed the session higher by $0.18 or 1.02% from its previous close. Eldorado's latest price action developed a short term reversal pattern in the form of a tweezer top, which is a candlestick pattern that is usually formed at the end of a uptrend. Given that the tweezer top is considered a reversal pattern, traders with long positions need to monitor stock price action for confirmation of weakness and plan position accordingly.

Eldorado Gold Corporation (NYSE:EGO) engages in the exploration, development, mining, processing, reclamation, and production of primarily gold and iron properties. It owns and operates the Kisladag gold mine in Turkey; and the Tanjianshan, Jinfeng, and White Mountain gold mines in China, as well as the development projects, including the Efemcukuru gold project located in Turkey, the Eastern Dragon gold project in China, the Perama Hill gold project in Greece, and the Vila Nova iron ore project in Brazil. the company is headquartered in Vancouver, Canada.

Eldorado's stock has been a defined range with support at $13.74 and resistance at $16.46, which can be used by traders managing their trades, given the possibility of short term weakness in the stock.