Topic: How To Invest

Pat: I’m a new member of your Inner Circle. What do you think about Eldorado Gold Corp. and Pan American Silver Corp.?

Article Excerpt

Eldorado Gold, $12.91, symbol ELD on Toronto (Shares outstanding: 709.6 million; Market cap: $9.2 billion; www.eldoradogold.com), has four producing gold mines: Kisladag, in Turkey, and Tanjianshan, Jinfeng and White Mountain, in China. The company is also developing additional properties in Turkey and China, as well as Greece. In the three months ended December 31, 2011, Eldorado’s revenue rose 42.4%, to $303.3 million from $213.0 million a year earlier. (All figures except share price and market cap in U.S. dollars). Earnings per share doubled, to $0.16 from $0.08. Cash flow per share rose 50%, to $0.24 from $0.16. Higher production and rising gold prices were the main reasons for the gains. Eldorado holds cash of $396.4 million, or $0.72 a share, and has almost no debt. The shares yield 1.4%. Eldorado recently completed its purchase of European Goldfields (a recommendation of our Stock Pickers Digest newsletter) for $2.4 billion in Eldorado shares plus a small amount of cash. European Goldfields’ Skouries and Olympias gold…

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