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NEW YORK (TheStreet) -- Eldorado Gold (EGO) - Get Eldorado Gold Corporation Report shares are down by 12.41% to $3.49 in mid-morning trading on Friday, after the miner announced that it has suspended operations in the Halkidiki region in northern Greece.

The company's decision comes after the Greek Energy Ministry revoked approvals for technical studies in the region.

Eldorado said that its Greek division, Hellas Gold SA, will be taking legal action against the government agency and will file an injunction request with the Greek Supreme Court.

"We are most disappointed and perplexed by this entirely inappropriate decision of the Ministry of Energy, which puts 5,000 direct and indirect jobs in Greece at risk, including the jobs of 2,000 Greek employees and contractors of Hellas Gold," Eldorado CEO Paul Wright said in a statement.

The company said that the suspension will become effective beginning next week.

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"Eldorado cannot and will not continue to allocate expenditures to our projects in Greece while the Ministry of Energy is openly hostile to our activities," Wright added.

Eldorado took over the mining project in 2012, pledging to invest $1 billion over five years in the site, according to Reuters.

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 unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 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 627.7% when compared to the same quarter one year ago, falling from $37.63 million to -$198.60 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 55.23%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 660.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Net operating cash flow has decreased to $53.93 million or 14.16% when compared to the same quarter last year. Despite a decrease in cash flow ELDORADO GOLD CORP is still fairing well by exceeding its industry average cash flow growth rate of -43.14%.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. 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.
  • ELDORADO GOLD CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ELDORADO GOLD CORP turned its bottom line around by earning $0.14 versus -$0.91 in the prior year.
  • You can view the full analysis from the report here: EGO Ratings Report