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$EGO Acquisitions And Low Debt Equal Strength For Eldorado Gold

In February 2012, Eldorado Gold purchased European Goldfields for $2.5 billion. This was a significant purchase for Eldorado Gold as “European Goldfields was a developer-producer with globally significant gold reserves located within the European Union. Eldorado Gold saw many advantages for this purchase. The advantages they saw included “Further diversification of production and cash flow across a robust portfolio of new producing mines and development projects” and it “Solidifies the company’s position as one of the industry’s leaders in quality and sustainable production growth with an attractive cash cost profile.”

It has now been a year after the purchase of European Goldfields, in the article below I will see how the purchase affected the company financially and see what the future looks like for the company aided by the acquisition of European Goldfields.

1. Total Debt = Long-Term Debt + Short-Term Debt

Total debt is the sum of long-term debt, which is debt that is due in one year or more, and short-term debt, which is any debt due within one year.

  • 2008 – $0 million + $0 million = $0 million
  • 2009 – $135 million + $0 million = $135 million
  • 2010 – $68 million + $0 million = $68 million
  • 2011 – $0 million + $0 million = $0 million
  • 2012 TTM – $583 million + $0 billion = $583 million

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