By: Reuters

Shares in Erdemir (EREGL) experienced a decline of over 6% following the release of initial surveys indicating inferred gold resource levels at a Sivas gold mine site. The survey was initiated after the company's mining unit, Ermaden, uncovered gold in a licensed mining area in 2024. It has been reported that approximately 424,000 ounces of gold content were identified within 14.9 million tonnes of ore, yielding an average gold grade of 0.89 grams per tonne. Despite this significant finding, brokerage firm Is Yatirim notes that the estimated $1.68 billion valuation of the identified gold resource is likely to be diminished by various associated costs. Moreover, Is Yatirim suggests that the stock may be undergoing a sell-off as investors take profits, given that Erdemir has outperformed Istanbul's BIST-100 main index (XU100) by 8.75% year-to-date. As a result, Erdemir is currently listed among the poorer performers on the Turkish BIST-100 index.