8 Cheap Gold Stocks To Buy According to Hedge Funds

03. Eldorado Gold Corporation (NYSE:EGO)

Number of Hedge Fund Holders: 19 

Forward P/E Ratio as of September 29: 11.68

Eldorado Gold Corporation (NYSE:EGO), headquartered in Vancouver, Canada, is a leading mining company involved in the exploration, development, and sale of mineral products, primarily gold, across Turkey, Canada, Greece, and Romania. With a robust portfolio that includes a 100% interest in the Kisladag and Efemçukuru mines in Turkey, the Lamaque complex in Canada, and multiple gold mines in Greece, Eldorado Gold Corporation (NYSE:EGO) is well-positioned for growth. As of Q2 2024, the company reported a notable increase in hedge fund interest, with 19 hedge fund holders compared to just 12 in the previous quarter, signaling growing confidence in the company’s fundamentals.

In Q2 2024, Eldorado Gold Corporation (NYSE:EGO) achieved a gold production of 122,319 ounces, aligning with its guidance of 505,000 to 555,000 ounces for the year. The increase in production was aided by improved grades at key sites, including Lamaque and Kisladag, demonstrating the effectiveness of the company’s operational strategies. Despite some production disruptions due to labor negotiations, Eldorado expects to ramp up production in the latter half of the year, reinforcing its positive outlook.

Financially, Eldorado Gold Corporation (NYSE:EGO) reported net earnings of approximately $56 million, or $0.28 per share, driven by higher sales volumes and gold prices. Adjusted net earnings were even more impressive at $66.6 million, reflecting a strong operational performance. The company’s total cash costs stood at $940 per ounce sold, with all-in sustaining costs at $1,331 per ounce, both of which are consistent with annual guidance. While costs increased due to rising royalties and labor expenses, they remain manageable in the context of higher gold prices, which should bolster revenue moving forward.

Eldorado Gold Corporation (NYSE:EGO) maintains a solid liquidity position with $810 million in total liquidity, including $595 million in cash. This financial strength enables the company to support its growth initiatives, including significant capital investments in the Skouries project, which are expected to accelerate in the coming quarters. Overall, Eldorado Gold Corporation (NYSE:EGO) strategic positioning, operational efficiency, and robust financial metrics make it a compelling investment opportunity within the gold sector, particularly as hedge funds continue to show increased interest.