TSX Commentary

Eldorado Gold Corp. (ELD) – $11.84 – 2010-2011 Outlook on Track
Outperform, Average Risk, Price Target: $15.00 (prev. $16.00)
Management expects 2010 production to be in the range of 550-600Koz, in line with RBC CM’s 578Koz estimate. Cash costs of $385-400/oz were somewhat higher than the modeled $355/oz, mostly due to lower than expected gold grades at the Kisladag and TJS mines. Proven and probable gold reserves increased by 95% over December 2008 levels, mainly due to the acquisition of Sino Gold, but still including significant drill success at Kisladag and Efemçukuru in Turkey. Company reserves now exceed 15 million ounces of gold, while M+I resources exceed 21 million ounces. The gold price assumption for the company’s main projects was increased from $725/oz to $825/oz. EGO guided to capital expenditures of $280MM in 2010 and $135MM in 2011. The company ended 2009 with some $315MM in cash; RBC CM estimates operating cash flow approaching $600MM over the next two years. Eldorado Gold remains an RBC CM favourite among the Tier II golds, as one of the lowest cost producers (sub-$400/oz) and best growth profiles over the next few years (from 343Koz in 2009 to over 800Koz in 2011). RBC CM considers Eldorado to have one of the strongest management teams and more than adequate funding to complete current growth plans.