Analyst Heiko Ihle of H.C. Wainwright reiterated a Buy rating on Gold Resource (GORO – Research Report), with a price target of $1.25.
Heiko Ihle has given his Buy rating due to a combination of factors including the significant growth reported in Gold Resource Corporation’s S-K 1300 Technical Report Summary for the Don David Gold Mine. The report highlighted successful drilling activities in 2024, which led to a substantial increase in both Mineral Reserves and Resources, particularly due to the discovery of the Three Sisters vein system. This growth is expected to enhance the mine’s long-term economic prospects.
Additionally, Ihle’s rating considers the updated precious metal price deck, reflecting higher long-term estimates for gold and silver prices due to macroeconomic factors such as inflation and investment in safe-haven assets. Despite a decrease in the price target to $1.25, the valuation remains based on a DCF analysis of the Don David Mine, with a revised discount rate and conservative estimates for the Back Forty project. These elements collectively support the Buy rating for GORO’s stock.
According to TipRanks, Ihle is a 4-star analyst with an average return of 3.6% and a 44.44% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Drdgold, Endeavour Silver, and First Majestic Silver.