NEW YORK (TheStreet) --Shares of Canada-run gold mine Eldorado Gold Corp. are plummeting by 17.41% to $4.60 on very heavy volume on Friday, after Greece's newly elected left-wing government said it was against the Skouries gold mine, which is one of the largest foreign investment projects in the country, Reuters reports. The ruling Syriza party also announced it will cancel plans to sell the state natural gas facility. The Skouries gold mine was the flagship project of Greece's previous government's foreign investment drive and was considered to be a test case aimed at proving whether or not the country could protect foreign investors despite local opposition, Reuters added. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. "We are absolutely against [the mine] and we will examine our next moves on it," Panagiotis Lafazanis, a representative of the ruling party and former Communist, told Reuters. Lafazanis didn't say if the government would attempt to keep the project from going forward. Last week Eldorado Gold said it would spend almost $200 million this year to develop the mine, which is expected to be finished in 2016. The project has been hit with controversy, including violent local protests, and criticism relating to the environmental impact of the mine, Reuters noted. Eldorado Gold took over the Skouries mine in 2012 and said it would invest $1 billion in it over five years. Separately, TheStreet Ratings team rates ELDORADO GOLD CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: "We rate ELDORADO GOLD CORP (EGO) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: ELDORADO GOLD CORP's earnings per share declined by 40.0% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, ELDORADO GOLD CORP swung to a loss, reporting -$0.91 versus $0.45 in the prior year. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 45.6% when compared to the same quarter one year ago, falling from $36.41 million to $19.79 million. Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, ELDORADO GOLD CORP underperformed against that of the industry average and is significantly less than that of the S&P 500. The share price of ELDORADO GOLD CORP has not done very well: it is down 14.07% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy. Net operating cash flow has decreased to $92.19 million or 23.34% when compared to the same quarter last year. Despite a decrease in cash flow of 23.34%, ELDORADO GOLD CORP is in line with the industry average cash flow growth rate of -27.92%. You can view the full analysis from the report here: EGO Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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