GoGold Resources Reports Q4 Earnings Growth of 51%; Shares Up 2.2%

GoGold Resources’ Q4 revenue rose by 42% year-on-year to $13.8 million, it reported on Thursday.

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The growth was driven by an increase of 6% in silver equivalent ounces sold coupled with a 34% gain in realized price per ounce. Operating income rose to $4.2 million compared to just $.004 in the year-ago period. Shares were up 2.2%. EPS improved by 51% to $0.21.

GoGold (GLGDF) is a Canadian-based silver and gold producer with projects in Mexico.

“Parral had a record production year and a record quarter which generated $6.5 million US of cash flow, paying for all of our exploration and general and administrative costs.” said CEO Brad Langille.

The stock price has gained 192% year-to-date and is trading at close to its 52-week high. (See GLGDF stock analysis on TipRanks)

BMO Capital analyst Ryan Thompson initiated coverage on GoGold Resources with a Buy rating and a price target of C$2.30 ($1.81).

Thompson sees potential for the company’s Los Ricos project to “eventually garner a scarcity premium.”

“There is scarcity value associated with silver exploration opportunities,” added Thompson.

From the rest of the Street, the stock scores a cautiously optimistic Moderate Buy analyst consensus based on 2 Buys. The average price target of $1.77 implies an upside potential of 17% to current levels.