{"id":417045,"date":"2010-03-11T14:38:00","date_gmt":"2010-03-11T19:38:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:406484"},"modified":"2010-03-11T14:38:00","modified_gmt":"2010-03-11T19:38:00","slug":"minor-currency-risk-for-eldorado-gold","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/417045","title":{"rendered":"Minor currency risk for Eldorado Gold"},"content":{"rendered":"<p>With last year&#39;s acquisition of Sino Gold Mining Ltd., <a href=\"http:\/\/www.financialpost.com\/markets\/company\/index.html?symbol=ELD&amp;id=97748\" >Eldorado Gold Corp<\/a>.<br \/>\nhas established itself as the world leader in gold mining in China. It<br \/>\nalso increases the company&#39;s exposure to a rising Chinese currency.<\/p>\n<p>The<br \/>\ngovernment has loosened its peg of the renminbi (RMB) to the U.S.<br \/>\ndollar, but there is still a long way to go before it floats freely.<br \/>\nUBS economist Tao Wang wrote that the RMB could end the year 5%<br \/>\nstronger than it is now.<\/p>\n<p>With that in mind, UBS analyst Dan<br \/>\nRollins calculated the potential impact of a 5% RMB increase on<br \/>\nEldorado, and his study shows that it is not that bad at all. He wrote<br \/>\nthat the company&#39;s cash costs could go up 2% to US$355 an ounce, and<br \/>\nits net asset value (NAV) could decline 1.1%.<\/p>\n<p>Not a big deal,<br \/>\nobviously. But his study also shows that greater currency appreciation<br \/>\nwill have a more pronounced effect. If the RMB rises 10%, his NAV<br \/>\nestimate for Eldorado drops 2.1%. If the RMB rises 15%, then his NAV<br \/>\nfalls 3%.<\/p>\n<p>Given that China has not unveiled any plans to let its<br \/>\ncurrency increase, Mr. Rollins did not make any changes to his<br \/>\nvaluation for Eldorado. He rates it a &quot;buy&quot; with a price target of<br \/>\n$15.00 a share.<\/p>\n<p><a href=\"mailto:pkoven@nationalpost.com\">Peter Koven<\/a><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/NP\/aggbug.aspx?PostID=406484\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With last year&#39;s acquisition of Sino Gold Mining Ltd., Eldorado Gold Corp. has established itself as the world leader in gold mining in China. It also increases the company&#39;s exposure to a rising Chinese currency. The government has loosened its peg of the renminbi (RMB) to the U.S. dollar, but there is still a long [&hellip;]<\/p>\n","protected":false},"author":4061,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-417045","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/417045","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4061"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=417045"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/417045\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=417045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=417045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=417045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}