Jim (cont'd):    Mr. Wright, welcome to Mad Money...

Paul:    Good afternoon, Jim. How are you?

Jim:    Not bad. Your stock has been on a tear. Do you think that it is forecasting higher gold prices? or just forecasting great earnings for EGO?

Paul:    I think that it is probably a combination of both, Jim.

Jim:    Well, if that is the case, should you take advantage of it and issue equities so that you can grow. Or are we okay here with all that cash that you got?

Paul:    I think that with the cash balance that we have we are well equipped to continue the asset base that we have within the company. And we have demonstrated in the past our ability to grow internally, and we are certainly going to do that. Is further growth outside of the assets that we have possible, yes. Could that mean additional equity, that is a possibility. But again we have a history of when we complete transactions or acquisitions of continuing to increase our share price so this should not be a concern for shareholders.

Jim:    Excellent. There is a cost profile that you have that I regard among the best. Why are your costs so low vs. all of the other gold companies that we talk to?

Paul:    Well, the operations that form the basis of our production are largely based on discoveries that we have made and taken thru sometimes the torturous path thru development and into production. And the companies for the last 15 years has exercised a fairly disciplined approach towards building a company that is based on long lived low cost assets. We are a growing company, but we are not a company that is going to grow at any costs. An objective of ours is to remain in the lowest quartile of production costs, and that is where we sit and that is where we continue to see ourselves. So it is a fairly disciplined approach, and paying attention to detail.

Jim:    Will the new projects that you are bringing, like we mentioned the Turkish project, will they bring your costs up in 2010?

Paul:    No, actually the Turkish mine will bring our unit costs down. The project that we are developing in Greece will also bring our costs down. The third project that we are involved in in Brazil, is a slightly below industry average but I think that if you look at the blended average of all of these new projects and our existing mines, they will enable us to stay in the lower quartile.

Jim:    That is great. Now, what do you think is driving, if you can break down what is driving gold. How much of it is speculation? How much of it is actual use? Jewelry buying at times is accounted for 60% of gold use, but this is typically not the season when jewelry buying kicks in. So I am wondering if it is mostly speculation that is driving the price of gold higher right now.

Paul:    Well, you are certainly seeing a lot of gold going into the SPDR, the gold shares. At total demand this year it probably represents 35% to 40% of total gold demand contrasted about 4% in 2008. You can choose whether that is speculation or whether that is investment. But certainly there has been a shift in the last 6 to 9 months to the SPDR gold shares away from what people consider to be conventional jewelry.

Jim:    If you don’t mind, because not all of our viewers are understanding that. In other words, what you are saying is that there is an actual stock basically that is buying the gold. Because it needs to equal the demand of the common stock buyers.

Paul:    Well, again, it relates to people who want to hold gold and the ETF’s provide people to do that without physically having to hold the gold themselves.

Jim:    Okay, what do you have going in China, I think that you are the only North American producer of gold in China.

Paul:    We were the first North American producer in China. And that has been very successful for us. And we are looking to frankly capitalize on the benefit that it has provided for us as being the first North American to invest real capital, and obviously provide profitable production and a tax base. And that has set us apart from some of the other competitors in China as being a credible partner for Chinese joint venture.

Jim:    For those of you are watching March madness, this is not in reference to you. You have got a project called Villa Nova, which seems to be an outlier for you. An iron ore project. Why do we want iron ore in our gold company?

Paul:    It is was sort of an opportunistic situation that came our way while we were exploring for gold. Cost of access was very, very low. Low capital investment, low technical risk. And frankly the numbers suited our purpose. Jim, it is not a core asset to us, it is one of these situations that at some point that we may elect to demonize.

Jim:    I would use it to beat Duke tomorrow night. Mr. Wright, thank you so much. President and CEO of Eldorado Gold Corporation...