Analyst Kevin O’Halloran of BMO Capital maintained a Buy rating on GoGold Resources (GLGDF – Research Report), with a price target of C$2.50.
Kevin O’Halloran has given his Buy rating due to a combination of factors, primarily centered around GoGold Resources’ strong operational performance and financial position. The company reported a significant production output from its Parral project, surpassing expectations with 555koz AgEq, which was notably higher than the forecasted 432koz. This robust production, particularly in gold, has resulted in consistent cash flows, which are crucial for funding ongoing exploration activities at the Los Ricos property.
Furthermore, GoGold Resources’ financial health is bolstered by a substantial cash balance and recent equity raise, positioning it well to advance its Los Ricos South project, pending permit approvals. The anticipated permits for Los Ricos South are seen as a key catalyst for future growth, with the company’s strong balance sheet and technical expertise expected to expedite the project’s development. These factors, combined with the potential for significant value creation from the Los Ricos development, underpin O’Halloran’s positive outlook and Buy rating for GoGold Resources.
According to TipRanks, O’Halloran is a 5-star analyst with an average return of 17.5% and a 57.45% success rate. O’Halloran covers the Basic Materials sector, focusing on stocks such as Fortuna Silver Mines, MAG Silver, and Torex Gold Resources.