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Alberto Abaterusso
Alberto Abaterusso
Articles (1289) 

The Van Eck Associates Corp. Increases Stake in Eldorado Gold Corp.

Van Eck Associates Corp. also decreased its Interest in Agnico Eagle Mines

February 12, 2018 | About:

The Van Eck Associates Corp. disclosed its new holdings of Eldorado Gold Corporation (NYSE:EGO) and Agnico Eagle Mines (NYSE:AEM).

During the last three months of fiscal 2017, the Van Eck Associates Corporation increased its stake in Eldorado Gold Corp. by a significant 19.2% to a total volume of 92,279,214 common shares of the Canadian mining company, from the previous volume of 77,400,839 shares held as of Sept. 29, 2017. This number of shares beneficially owned equates to 11.63% of Eldorado Gold Corp’s shares outstanding and provides the Van Eck Associates Corporation with both sole voting and dispositive power on the wholly owned volume.

During the same span of time, the New York-based investment management company also decreased its interest in Agnico Eagle Mines by approximately 7% to 11,993,990 common shares. This new holding equates to 5.16% of the Canadian mining company’s total shares outstanding versus a previous 5.55% for a total volume of 12,916,959 shares held as of Sept. 29, 2017.

The Van Eck Associates Corp. has a sole dispositive power on 100% of its holding in Agnico Eagle Mines and a sole voting power on about 99.2%.

It is always of interest for investors to know how the top shareholders of gold mining companies are moving their holdings because this kind of information can give hints on the next share price movements.

Eldorado Gold Corp. is currently trading at $1.14 per share on New York Stock Exchange with a market capitalization of $985.48 million, a price-book (P/B) ratio of 0.26 times versus an industry median of 2.05 times and an EV-to-Ebitda ratio of 9.78 times versus an industry median of 10.18 times. The 52-week range is $1.10 to $3.83 per share.

Agnico Eagle Mines is currently trading at $42.85 per share, with a market capitalization of $10.12 billion, a price-book (P/B) ratio of 2.07 times and an EV-to-Ebitda ratio of 9.92 times. The 52-week range is $39.30 to $51.86 per share.

For the 52-weeks through Feb. 9, Eldorado Gold Corp has outperformed the VanEck Vectors Gold Miners ETF (GDX) with a loss of 69.02% while Agnico Eagle Mines emulated the exchange-traded fund.

Source: Yahoo Finance

As of today, Feb. 12, analysts suggest holding shares of Eldorado Gold Corp. and to buy shares of Agnico Eagle Mines. Eldorado Gold Corp. has an average target price of $1.98 while Agnico Eagle Mines has an average target price of $56.49 per share.

(Disclosure: I have no positions in any security mentioned in this article.)

About the author:

Alberto Abaterusso
If somebody asks what being a Value Investor means, Alberto Abaterusso would answer: “the Value Investor is not the possessor of a security that represents the company, but he is the owner of that company. As an owner of the company the Value Investor is actively involved in the dynamics of that company and his first aim is how to have sales progressively growing.”

Alberto Abaterusso would add: “probably the Value Investor is one of the least patient persons in the world concerning sales.”

Alberto Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

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