Gold Resource (GORO) AI Stock Analysis

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Gold Resource

(NYSE MKT:GORO)

36Underperform

Gold Resource Corporation is facing severe financial and operational challenges, with significant declines in revenue, negative profit margins, and a weak technical outlook. Despite the company's strategic plans and recent positive developments in reserve replacement, the overall outlook remains precarious, resulting in a low overall score. Investors should be cautious as the company attempts to execute its turnaround strategy.

Gold Resource (GORO) vs. S&P 500 (SPY)

Market Cap

$48.90M

Dividend YieldN/A

Average Volume (3M)2.16M

Price to Earnings (P/E)―

Beta (1Y)1.55

Revenue Growth-34.57%

EPS Growth-238.18%

CountryUS

Employees480

SectorBasic Materials

Sector Strength57

IndustryGold

Share Statistics

EPS (TTM)-0.61

Shares Outstanding120,442,690

10 Day Avg. Volume1,853,044

30 Day Avg. Volume2,161,485

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.70

Price to Cash Flow (P/CF)-3.80

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$1.25

Price Target Upside228.95% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Gold Resource Business Overview & Revenue Model

Company DescriptionGold Resource Corporation engages in the exploration, development, and production of gold and silver projects in Mexico and the United States. The company also explores for copper, lead, and zinc deposits. Its principal asset is the 100% owned Back Forty project covering approximately 1,304 hectares located in Menominee county, Michigan. The company was founded in 1998 and is headquartered in Denver, Colorado.

How the Company Makes MoneyGold Resource Corporation generates revenue primarily through the extraction and sale of precious and base metals, including gold, silver, copper, lead, and zinc. The company operates mines and processing facilities where these metals are extracted and processed for sale. Revenue is influenced by the production volume, market prices of metals, and operational efficiency. The company may also enter into strategic partnerships or joint ventures to optimize resource extraction and distribution. Additionally, GORO may engage in hedging activities to manage price volatility and protect its revenue streams.

Gold Resource Financial Statement Overview

Summary

Gold Resource is experiencing financial distress, with declining revenues, negative profit margins, and weakening balance sheet metrics. Immediate strategic changes are necessary to address operational inefficiencies and stabilize the company's financial health.

Income Statement

Very Negative

Gold Resource has faced significant challenges in recent years, with total revenue dropping to zero in 2024, indicating a severe downturn in operations. The net profit margin and gross profit margin have also suffered, being negative or zero in recent periods. EBIT and EBITDA margins show consistent losses, reflecting operational inefficiencies and financial distress.

Balance Sheet

Negative

The company’s balance sheet reveals a concerning financial position. Although total debt was reduced to zero in 2024, the substantial decline in stockholders' equity and total assets suggests declining financial stability. The equity ratio has weakened significantly over time, indicating increased financial risk.

Cash Flow

Negative

Cash flow analysis shows negative free cash flow with no significant improvement in operating cash flow, emphasizing liquidity issues. The operating cash flow to net income ratio indicates inefficiencies in generating cash from operations, which poses sustainability concerns.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
65.73M	97.73M	138.72M	125.20M	90.69M
	Gross Profit
-20.49M	-5.32M	29.75M	36.75M	12.49M
	EBIT
-27.79M	-11.90M	5.71M	29.02M	-248.00K
	EBITDA
-14.12M	5.15M	30.27M	33.64M	17.12M
	Net Income Common Stockholders
-56.50M	-16.02M	-6.32M	8.03M	-6.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.63M	6.25M	23.68M	34.30M	26.08M
	Total Assets
145.87M	183.89M	204.17M	215.76M	105.73M
	Total Debt
0.00	44.93M	43.47M	42.56M	13.00K
	Net Debt
-1.63M	-6.25M	19.79M	8.85M	-25.39M
	Total Liabilities
118.59M	87.19M	92.41M	95.01M	15.20M
	Stockholders Equity
27.28M	96.69M	111.76M	120.75M	90.54M
Cash Flow		Free Cash Flow
-8.25M	-17.71M	-4.08M	14.17M	22.59M
	Operating Cash Flow
-627.00K	-5.22M	14.16M	34.78M	35.40M
	Investing Cash Flow
-6.44M	-12.49M	-19.44M	-22.97M	-14.45M
	Financing Cash Flow
2.71M	62.00K	-3.91M	-3.06M	-5.22M

Gold Resource Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.38

Price Trends

50DMA

0.45

Negative

100DMA

0.36

Positive

200DMA

0.35

Positive

Market Momentum

MACD

-0.02

Positive

RSI

38.86

Neutral

STOCH

39.89

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GORO, the sentiment is Negative. The current price of 0.38 is below the 20-day moving average (MA) of 0.47, below the 50-day MA of 0.45, and above the 200-day MA of 0.35, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 38.86 is Neutral, neither overbought nor oversold. The STOCH value of 39.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GORO.

Gold Resource Risk Analysis

Gold Resource disclosed 37 risk factors in its most recent earnings report. Gold Resource reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Gold Resource Peers Comparison

Overall Rating

UnderperformOutperform

Sector (48)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTGO	64 Neutral	$174.91M	―	-9999.00%	―	―	33.87%
Sector *	48 Neutral	$1.91B	-1.66	-22.29%	3.86%	0.68%	-27.44%
IDR	45 Neutral	$247.06M	26.95	31.88%	―	88.66%	619.17%
PZG	43 Neutral	$26.15M	―	-20.99%	―	―	0.16%
HYMC	39 Underperform	$91.69M	―		―	―	1.67%
GORO	36 Underperform	$48.90M	―	-91.15%	―	-34.57%	-238.18%

* Basic Materials Sector Average

Performance Comparison

GORO

Gold Resource

0.38

-0.08

-17.39%

USAU

US Gold

9.79

5.70

139.36%

PZG

Paramount Gold Nevada

0.39

-0.05

-11.36%

HYMC

Hycroft Mining Holding

3.58

0.09

2.58%

CTGO

Contango ORE

13.48

-6.67

-33.10%

IDR

Idaho Strategic Resources

17.87

8.37

88.11%

Gold Resource Earnings Call Summary

Earnings Call Date: Apr 8, 2025 | % Change Since: -2.56% | Next Earnings Date: May 13, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted significant operational challenges faced in 2024, including low ore grades, equipment constraints, and a financial restatement. However, the discovery of the Three Sisters system and planned operational improvements are expected to address these challenges, leading to increased production and reduced costs. The sentiment is cautiously optimistic as the company plans to execute its turnaround strategy.

Highlights

Discovery of Three Sisters System

The company discovered a new system called the Three Sisters, expected to result in lower mining costs due to its proximity to the mine entrance and higher-grade ore.

Safety Milestone Achieved

The company celebrated one year without a lost time injury, reflecting a strong commitment to workplace safety.

Operational Improvements

Significant improvements in drilling, blasting practices, and narrow-vein long hole mining have reduced mining costs and improved material quality.

Expected Increase in Production

The company plans to increase daily production initially to 1,300 tons and then to 1,500 tons with the addition of a third filter for the tailings filter plant.

New Mining Fleet Acquisition

The acquisition of a lightly used mining fleet is expected to improve mechanical availability, productivity, and reduce repair and maintenance costs.

Lowlights

Challenging Year with Low Ore Grades

The company faced lower mining flexibility, equipment constraints, and lower-grade ore, impacting performance.

Restatement of Financial Liabilities

A restatement of the Back Forty Project gold and silver stream liabilities revealed an error in the accounting model, understating the streaming liability and net loss.

Significant Cash Decrease

The company's cash balance decreased by $4.7 million, driven by exploration, project maintenance, and general administration costs.

Underperformance Impact on Stock Price

The company's stock has lost 95% of its value, with executives expressing shared financial pain due to the downturn.

Company Guidance

During the Gold Resource Year-End 2024 Earnings Call, the company outlined several metrics and strategies to address its recent challenges and improve future performance. The firm reported facing a "perfect storm" in 2024, with low-grade ore, equipment availability issues, and adverse weather impacting operations. To counter these, they discovered a new high-grade system called Three Sisters, projected to enhance mining efficiency and costs due to its location and quality. They plan to mobilize a contractor in Q2 and aim to have a new mining fleet operational by Q3, targeting a return to cash positivity by the end of Q3. Operational enhancements include increasing daily production capacity from 1,300 to 1,500 tons and improving safety, as evidenced by a year without a lost time injury. Financially, the company managed to cover operational costs despite a $4.7 million decrease in cash balance, attributing these to exploration, project maintenance, and administrative costs. The firm is also addressing a restatement of liabilities related to the Back Forty Project, which did not impact cash flow. Overall, they express confidence in their ability to execute these plans and improve profitability.

Gold Resource Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance

Gold Resource Boosts Reserves with Successful Drilling

Positive

Mar 5, 2025

On March 5, 2025, Gold Resource Corporation announced the release of the S-K 1300 Technical Report Summary for the Don David Gold Mine, highlighting a successful 2024 drilling program. The program resulted in a replacement of mined reserves and a 10% increase in Mineral Reserves, with a significant increase in the Three Sisters vein system. The report, prepared under S-K 1300 standards, enhances confidence in the reliability of the company’s Mineral Resources and Reserves.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.