Conor McCreery
Globe Investor Magazine online,

Eldorado Gold (ELD): Eldorado is a rarity in the current market – the stock is up this year at $7.15, although it has had a 21-per-cent haircut since the July highs. The company is one of Mr. Ing’s favourite junior producers.

“Eldorado has good management, a strong balance sheet, a rising production profile and a solid portfolio of potential producers” he says. He likes the fact the company is on the cusp of becoming a mid-range producer: Eldorado is scheduled to produce 300,000 ounces of gold this year. It is working to bring on an additional mine in Turkey and bought the rights to one in Greece earlier this year.

Mr. Ing also points to the firm’s low cash-costs – $225 to $260 (U.S.) an ounce. And like many others, Mr. Ing prefers well-capitalized companies. Eldorado had $51-million in cash on the books at the end of the third quarter, one-and-a-half times the amount of debt it holds.

With eight million ounces in reserves, Eldorado is selling for about $260 an ounce – a valuation that Mr. Ing says is on the low side. He points out to Kinross’ recent takeover of Aurelian Gold, which he says valued Aurelian at close to $600 an ounce “and they weren’t even in production”.

Mr. Ing also thinks investors can buy ounces on the cheap right now. He stands by the theory that the U.S. government’s decision to make money cheaper, and to pump cash into the system will be inflationary and he says that will drive the yellow metal higher. He expects to see an average bullion price of $1,000 in 2009. Mr. Ing owns Eldorado and he gives the stock his highest buy rating. Maison Placements doesn’t make specific 12-month price targets.