In a report released today, Heiko Ihle from H.C. Wainwright reiterated a Buy rating on Gold Resource, with a price target of $1.25.
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Heiko Ihle’s rating is based on the recent financial results of Gold Resource Corporation, which showed a significant improvement in revenue and a reduction in net loss compared to the previous year. The company’s revenue growth was primarily driven by a substantial increase in silver production at the Don David Gold Mine, with higher grades and prices contributing to the top line.
Heiko Ihle also highlights the company’s operational improvements and strengthened balance sheet, which could lead to a re-rating of the stock as GORO enhances its production profile. The introduction of newer equipment is expected to improve production efficiency and generate positive free cash flow. Additionally, the valuation of GORO remains attractive, with a potential upside based on a conservative DCF analysis and the ongoing de-risking of the Back Forty project.