Gold Resource’s Operational Improvements and Promising Exploration Results Justify Buy Rating

Heiko Ihle, an analyst from H.C. Wainwright, reiterated the Buy rating on Gold Resource (GORO – Research Report). The associated price target is $1.25.

Heiko Ihle has given his Buy rating due to a combination of factors related to Gold Resource’s operational improvements and exploration results. The company’s management has taken significant steps to stabilize production by upgrading the mill and replacing outdated equipment, which is expected to mitigate issues at the Don David Gold Mine. Additionally, the firm has bolstered its financial position by raising approximately $12 million through various means, including equity offerings and asset sales, suggesting a positive trajectory for the company’s balance sheet.
Moreover, the exploration drilling results from 2024 have been promising, particularly at the Three Sisters and Gloria vein systems, which remain open for further development. These results indicate potential for increased production and improved cash flow, reinforcing the possibility of a turnaround for the Don David Gold Mine. Ihle’s valuation of the company, based on a discounted cash flow analysis and conservative estimates for the Back Forty project, supports the Buy rating with a price target of $1.25 per share.