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Gold Resource Corp. (GORO)
:GORO
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Gold Resource
(GORO)
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Rating:54Neutral
Price Target:
$0.92
▼(-2.13% Downside)
The score is held back primarily by weak financial performance—ongoing large losses and negative free cash flow despite low debt. Offsetting this are improving technical signals (price above major moving averages with positive MACD) and an earnings-call narrative indicating early operational improvements and a solid reported cash position, though execution and cost/safety risks remain.
Positive Factors
Three Sisters production ramp
A multi-year production source supplying 40–50% of output materially diversifies and scales the asset base. Higher-grade mineralization from Three Sisters can sustainably lift per‑ounce revenue and utilization of existing processing, improving long-term cash generation if volumes and grades persist.
Cut-and-fill reduces dilution and improves grade
Switching to cut‑and‑fill that materially reduces dilution raises head grade and recoverable ounces per ton, improving unit economics and long‑term profitability potential. This structural shift can permanently enhance operating leverage if maintained across narrow vein zones.
Low leverage with no reported debt
A debt‑free balance sheet reduces solvency risk and provides strategic flexibility to fund exploration and development without immediate debt service. This structural strength supports resilience through commodity cycles and lowers bankruptcy risk while the company executes its turnaround.
Negative Factors
Deep, sustained unprofitability
Persistently negative gross profit and a ~-63% net margin indicate the business is not generating sustainable operating profits. Continued deep losses erode equity, hinder reinvestment, and necessitate external capital unless operational improvements convert higher grades into durable, margin‑positive production.
Negative free cash flow and weak cash generation
Material negative free cash flow constrains the company's ability to self‑fund underground development and exploration. Over months this increases reliance on external financing or equity dilution, limits strategic optionality, and raises execution risk for multi‑year projects like Three Sisters.
Higher operating costs from cut-and-fill mining
While cut‑and‑fill improves grade, its structurally higher mining costs can compress per‑ounce margins. If cost inflation persists or scale benefits fail to materialize, increased unit costs could offset grade gains and require sustained metal price support or further efficiency gains to restore profitability.
Gold Resource (GORO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$153.68M
Dividend YieldN/A
Average Volume (3M)2.93M
Price to Earnings (P/E)―
Beta (1Y)1.87
Revenue Growth-15.35%
EPS Growth30.92%
CountryUS
Employees480
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)-0.03
Shares Outstanding161,765,690
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)0.32
P/FCF Ratio-2.57
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue2.55
Enterprise Value/Gross Profit-19.15
Enterprise Value/Ebitda-6.12
Forecast
1Y Price Target
$1.25Price Target Upside32.98% 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 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
Gold Resource is experiencing severe financial distress, with zero revenue in 2024, negative profit margins, and a weakening balance sheet. The company faces liquidity issues and operational inefficiencies, necessitating immediate strategic changes.Income Statement
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
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
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.| 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
0.94
Price Trends
0.78
Positive
0.76
Positive
0.66
Positive
Market Momentum
0.04
Negative
60.54
Neutral
73.36
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 0.94 is above the 20-day moving average (MA) of 0.88, above the 50-day MA of 0.78, and above the 200-day MA of 0.66, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 60.54 is Neutral, neither overbought nor oversold. The STOCH value of 73.36 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
0.94
0.65
224.14%
USAU
US Gold
20.24
13.94
221.27%
PZG
Paramount Gold Nevada
1.14
0.76
200.00%
CTGO
Contango ORE
27.58
17.50
173.61%
NAMM
Namib Minerals
0.98
-9.64
-90.77%
BGL
Blue Gold
2.15
-9.31
-81.24%
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.