Despite Citi raising its target, that $1,250 is still a lot lower than many miners were expecting to have to cope with. One that might be poised to prosper despite lower gold prices: Eldorado Gold (EGO). In a report released last week, Credit Suisse analysts Anita Soni and Robert Reynolds explained why:
EGO is well set up to weather a lower gold price environment with lower than peer average all-in sustaining costs at $950/oz in 2013; a strong balance sheet with $744M in cash, a $375M undrawn credit facility and $600M in LT debt due in 2020; and strong operations with 2013 guidance tightened to 745koz at $520/oz cash op. costs, the middle upper end of original production guidance. In H1/13, EGO produced 47% of production guidance at $492/oz cash op. costs.