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Gold Resource Corp. (GORO)
:GORO
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Gold Resource
(GORO)
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Rating:53Neutral
Price Target:
$2.00
▲(27.39% Upside)
The score is held back primarily by weak financial performance (large losses, negative gross profit, and negative free cash flow despite low debt). Technicals are a key offset with strong trend and momentum versus major moving averages, though overbought indicators add near-term risk. The earnings call adds moderate support due to early turnaround signs and Three Sisters-driven improvements, while valuation remains constrained by ongoing losses and no dividend signal.
Positive Factors
Low leverage / no reported debt
Having no reported debt materially reduces financial distress risk and interest burden, giving management flexibility to prioritize capex and mine development. Over 2–6 months this lowers refinancing pressure while the Three Sisters ramp and investments proceed, supporting operational optionality.
Three Sisters production ramp
A near-term material production source that could alter the company’s revenue mix and unit costs. If sustained, Three Sisters’ high-grade output supports higher realized grades, better unit economics and more stable production, improving structural revenue potential and operating leverage.
Operational improvements boosting recoveries
Cut-and-fill and process changes that materially improve feed grade and recoveries can deliver lasting cost per ounce reductions and higher payable metal. Structural improvement in mining methods and metallurgy supports a more sustainable path to positive margins if execution and equipment timing hold.
Negative Factors
Negative profitability
Persistent negative gross profit and deep net losses indicate the operation’s costs exceed revenues even after recent production gains. Over months this undermines margin sustainability, limits internal reinvestment, and requires clear and sustained operational improvement to reverse the structural earnings deficit.
Negative free cash flow / weak cash generation
Meaningfully negative free cash flow signals the business is not self-funding its development and requires external capital or asset sales. Over 2–6 months this constrains discretionary spending, heightens dilution or financing risk, and limits ability to scale the Three Sisters contribution without new funding.
Eroded equity capital base
A sharply reduced equity cushion weakens the company’s balance-sheet resilience to operating setbacks or cost overruns. Even with low debt, a diminished capital base raises long-term financing costs, limits access to capital, and increases shareholder dilution risk if external funding is needed for continued mine development.
Gold Resource (GORO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$278.40M
Dividend YieldN/A
Average Volume (3M)2.93M
Price to Earnings (P/E)―
Beta (1Y)1.85
Revenue Growth-15.35%
EPS Growth30.92%
CountryUS
Employees480
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)-0.03
Shares Outstanding161,858,860
10 Day Avg. Volume3,788,272
30 Day Avg. Volume2,928,659
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.78
Price to Sales (P/S)0.33
P/FCF Ratio-2.57
Enterprise Value/Market Cap0.60
Enterprise Value/Revenue2.72
Enterprise Value/Gross Profit-20.41
Enterprise Value/Ebitda-6.52
Forecast
1Y Price Target
$1.63Price Target Upside3.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 sale of gold and silver produced from its mining operations. The company's revenue model is based on the extraction of precious metals, which are then refined and sold in both physical forms and through financial instruments. Key revenue streams include the direct sales of gold and silver concentrate to wholesalers and retailers, as well as the potential for royalties from various mining activities. Additionally, GORO may engage in partnerships with other mining companies or financial institutions to enhance its operational capabilities and market reach, further contributing to its earnings.
Gold Resource Key Performance Indicators (KPIs)
Gold Resource Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 11, 2026
Earnings Call Sentiment Positive
The earnings call highlights early signs of operational turnaround and strong financial management, with new production from the Three Sisters area and significant investments yielding positive results. However, the company faces challenges with safety incidents, delayed equipment, and increased costs. Despite these challenges, the overall sentiment leans towards optimism with a focus on future improvements.Q3-2025 Updates
Positive Updates
Early Signs of Turnaround in Mexico Operations
The company is witnessing early signs of a turnaround in its operations in Mexico. Key improvements include management changes, fleet renewal, and introduction of cut and fill mining methods, which are decreasing costs and increasing profitability.
Production from Three Sisters
Production has commenced from the Three Sisters area, revealing good vein widths and high-grade mineralization, which is expected to contribute significantly to production.
Strong Financial Position
The company concluded the third quarter with a cash position of over $9 million, reflecting successful capital raising efforts and disciplined cash management.
Increase in Metallurgical Recoveries
Metallurgical recoveries across all metals exceeded prior quarters due to adjustments in mining methods and improvements in ore grade.
Investments Yielding Results
Significant capital investments in underground development and exploration are yielding results, providing access to multiple mining faces and commencing production in new areas.
Negative Updates
Lost Time Injury Incidents
The operation recorded several lost time injury incidents, prompting the engagement of an external consultant to conduct a comprehensive safety assessment.
Challenging Quarter Due to Development Activities
The quarter was challenging due to extensive mine development activities, though adjustments yielded measurable results.
Delayed Equipment Arrivals
The company is awaiting the arrival of a narrow profile jumbo and a third filter press, which are critical for operations.
Increased Costs for Cut and Fill Mining
While cut and fill mining reduces dilution, it increases mining costs, necessitating adjustments to operational strategies.
Company Guidance
During the Gold Resource Corporation's third quarter 2025 earnings call, the company highlighted several key metrics and operational updates. The company reported a strong cash position exceeding $9 million, with significant capital investments of over $2.6 million in underground development and more than $6.5 million in underground exploration, primarily focused on the Three Sisters area. Production from the Three Sisters is expected to contribute 40-50% of total output by 2026. The introduction of cut and fill mining methods in narrow vein zones has reduced dilution from over 40% to 13-17%, leading to higher-grade ore and increased profitability. Despite challenges, mining gross profit was achieved, and improvements in production efficiency and ore quality have begun to lower costs per gold equivalent ounce. The company is benefiting from elevated metal prices, further strengthening its financial performance.Gold Resource Financial Statement Overview
Summary
Financial results are heavily pressured by persistent losses and negative profitability (negative gross profit and ~-63% net margin) alongside meaningfully negative free cash flow (-$12.8M). Low reported debt reduces leverage risk, but equity has fallen sharply (to ~$26.0M TTM), underscoring ongoing balance-sheet erosion.Income Statement
Profitability has deteriorated sharply: TTM (Trailing-Twelve-Months) revenue rose to $61.2M (up 22.6%), but gross profit remains negative and losses are very large (net margin about -63%). The company was profitable in 2021 with solid margins, but since 2022 it has swung into sustained and deepening losses, indicating weak operating leverage and cost pressure that is overwhelming revenue changes.18
Very Negative
Balance Sheet
Leverage appears low with reported total debt at $0 in recent periods, which reduces financial risk. However, equity has fallen materially versus prior years (from ~$120.8M in 2021 to ~$26.0M in the TTM period), reflecting heavy cumulative losses and a weakened capital base. Returns on equity are deeply negative in the most recent periods, which is a key balance-sheet quality concern despite the lack of debt.56
Neutral
Cash Flow
Cash generation is weak: TTM (Trailing-Twelve-Months) operating cash flow is barely positive (~$0.1M) while free cash flow is meaningfully negative (-$12.8M), implying ongoing cash burn. Prior years show volatility (strongly positive operating cash flow in 2020–2022, then negative in 2023–2024), and the current profile suggests the business is not self-funding at present.22
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 61.16M | 64.76M | 97.76M | 139.09M | 124.19M | 90.69M |
| Gross Profit | -8.13M | -23.80M | -11.01M | 17.06M | 30.71M | 30.05M |
| EBITDA | -25.46M | -26.57M | -3.22M | 30.27M | 34.01M | 18.25M |
| Net Income | -38.71M | -56.50M | -24.14M | -6.32M | 8.03M | -6.33M |
Balance Sheet | ||||||
| Total Assets | 164.34M | 145.87M | 183.97M | 210.10M | 215.76M | 105.73M |
| Cash, Cash Equivalents and Short-Term Investments | 9.80M | 1.63M | 6.25M | 23.68M | 33.71M | 25.41M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 138.38M | 118.59M | 103.55M | 98.33M | 95.01M | 15.20M |
| Stockholders Equity | 25.96M | 27.28M | 80.43M | 111.76M | 120.75M | 90.54M |
Cash Flow | ||||||
| Free Cash Flow | -12.82M | -8.25M | -17.71M | -4.08M | 14.17M | 22.59M |
| Operating Cash Flow | 110.00K | -627.00K | -5.22M | 14.16M | 34.78M | 35.40M |
| Investing Cash Flow | -12.08M | -6.44M | -12.49M | -19.44M | -22.97M | -14.45M |
| Financing Cash Flow | 12.61M | 2.71M | 62.00K | -3.91M | -3.06M | -5.22M |
Gold Resource Technical Analysis
Positive
1.57
Price Trends
0.94
Positive
0.87
Positive
0.71
Positive
Market Momentum
0.20
Negative
64.72
Neutral
78.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GORO, the sentiment is Positive. The current price of 1.57 is above the 20-day moving average (MA) of 1.18, above the 50-day MA of 0.94, and above the 200-day MA of 0.71, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 64.72 is Neutral, neither overbought nor oversold. The STOCH value of 78.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (61)
GORO
Gold Resource
1.57
1.19
310.99%
USAU
US Gold
20.26
12.76
170.13%
PZG
Paramount Gold Nevada
1.80
1.42
373.68%
CTGO
Contango ORE
33.00
22.41
211.61%
NAMM
Namib Minerals
6.40
-4.33
-40.35%
BGL
Blue Gold
3.86
-7.54
-66.14%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.