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GoGold Resources Inc (TSE:GGD)
TSX:GGD

GoGold Resources (GGD) AI Stock Analysis

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GoGold Resources

(TSX:GGD)

Rating:66Neutral
Price Target:
GoGold Resources presents a mixed investment case. The strong balance sheet and positive corporate developments support future growth potential. However, challenges in cash flow management and a high P/E ratio suggest caution regarding valuation. Technical indicators are neutral, indicating a balanced short-term outlook.
Positive Factors
Financial Performance
Consistent cash generation at Parral is expected to continue further strengthening the balance sheet.
Production Performance
GoGold reported FYQ2 production from Parral of 555koz AgEq, beating the estimate by 29% on higher gold production.
Project Development
GoGold's strong balance sheet and technical work on the Los Ricos project facilitate a rapid construction decision once permits are received.
Negative Factors
Earnings
GoGold reported FYQ2 earnings of $3.4M versus the $6.7M forecast.

GoGold Resources (GGD) vs. iShares MSCI Canada ETF (EWC)

GoGold Resources Business Overview & Revenue Model

Company DescriptionGoGold Resources Inc. is a Canadian-based silver and gold producer engaged primarily in the exploration, development, and production of precious metal properties. The company operates within the mining sector and focuses on projects located in Mexico, a country known for its rich mineral resources. GoGold's core operations include the production and sale of silver and gold from its flagship properties, while also pursuing opportunities to expand its asset base through strategic acquisitions and exploration initiatives.
How the Company Makes MoneyGoGold Resources Inc. generates revenue primarily through the production and sale of silver and gold extracted from its mining operations. The company owns and operates mining projects in Mexico, where it extracts these precious metals. Revenue is largely driven by the volume of silver and gold produced and sold, as well as prevailing market prices for these commodities. Additionally, GoGold may engage in strategic partnerships or joint ventures to enhance its operational capabilities and increase production efficiency. The company's financial performance is also influenced by factors such as production costs, operational efficiency, and fluctuations in commodity prices on the global market.

GoGold Resources Financial Statement Overview

Summary
GoGold Resources demonstrates a stable balance sheet with low leverage and strong equity, which is a significant positive. However, the income statement reflects volatility in revenue and profit margins, while cash flow challenges persist, impacting liquidity. The company shows resilience with recent improvements, but consistent cash flow management and sustained profitability are crucial for future growth and stability.
Income Statement
65
Positive
GoGold Resources shows a mixed performance in its income statement. The TTM data indicates a modest revenue growth from the previous year, with a Gross Profit Margin of 34.9% and an improved Net Profit Margin of 2.8%. However, the company has experienced fluctuating revenues over the past years, and there was a notable decline in profitability in 2023. The EBIT Margin of 17.4% and EBITDA Margin of 31.3% suggest reasonable operational efficiency, but past volatility in earnings remains a concern.
Balance Sheet
75
Positive
The balance sheet is strong, with a healthy equity position and low debt levels. The Debt-to-Equity Ratio is exceptionally low, indicating minimal leverage and financial risk. The Return on Equity (ROE) in the latest period is positive, showing recovery from previous negative earnings. An Equity Ratio of 89.7% reflects a solid asset base supported by equity, providing stability against market fluctuations.
Cash Flow
60
Neutral
Cash flow analysis reveals challenges with consistent negative free cash flow over several periods, although TTM data shows a reduction in free cash flow deficit. The Operating Cash Flow to Net Income Ratio is low, indicating potential cash generation issues relative to earnings. Continued negative Free Cash Flow to Net Income Ratio highlights pressure on liquidity and cash management.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
57.46M36.50M30.26M36.05M53.23M39.55M
Gross Profit
21.15M12.19M-3.95M5.32M19.61M8.95M
EBIT
12.41M3.23M-11.84M2.61M8.00M3.95M
EBITDA
19.05M10.70M-6.24M6.77M13.79M47.26M
Net Income Common Stockholders
3.45M1.58M-7.89M692.00K7.08M43.15M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.03M72.03M95.23M73.34M66.84M52.63M
Total Assets
150.83M312.43M302.42M264.68M225.32M183.10M
Total Debt
42.16M0.00775.00K1.02M959.00K1.69M
Net Debt
41.13M-72.03M-94.46M-72.32M-65.88M-50.94M
Total Liabilities
60.13M27.93M20.87M24.35M19.06M12.27M
Stockholders Equity
90.69M284.50M281.56M240.33M206.26M170.83M
Cash FlowFree Cash Flow
9.88M-11.88M-8.46M-1.18M12.10M3.71M
Operating Cash Flow
10.00M-10.68M-7.42M-976.00K12.38M5.95M
Investing Cash Flow
-11.18M-11.20M-14.90M-24.70M-19.70M-5.88M
Financing Cash Flow
-737.00K-976.00K44.40M32.43M20.45M50.93M

GoGold Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.28
Price Trends
50DMA
1.81
Positive
100DMA
1.70
Positive
200DMA
1.50
Positive
Market Momentum
MACD
0.12
Negative
RSI
72.69
Negative
STOCH
84.59
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GGD, the sentiment is Positive. The current price of 2.28 is above the 20-day moving average (MA) of 1.93, above the 50-day MA of 1.81, and above the 200-day MA of 1.50, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 72.69 is Negative, neither overbought nor oversold. The STOCH value of 84.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GGD.

GoGold Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSFVI
80
Outperform
$3.10B13.4312.07%30.33%
TSSVM
76
Outperform
$1.25B14.429.62%0.61%31.23%110.49%
TSGGD
66
Neutral
$758.29M153.021.21%74.02%
TSEDR
58
Neutral
$1.80B-14.41%4.45%-3193.40%
TSMAG
57
Neutral
$3.00B23.4016.27%0.94%61.66%
51
Neutral
$2.02B-1.14-21.36%3.64%2.88%-30.57%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:GGD
GoGold Resources
2.28
0.80
54.05%
TSE:MAG
MAG Silver
29.03
11.96
70.08%
TSE:FVI
Fortuna Mining Corp
9.77
2.77
39.57%
TSE:SVM
Silvercorp Metals
5.72
0.76
15.42%
TSE:EDR
Endeavour Silver
6.16
1.16
23.20%

GoGold Resources Corporate Events

Business Operations and StrategyFinancial Disclosures
GoGold Resources Reports Strong Q2 Production and Strategic Advancements
Positive
Apr 9, 2025

GoGold Resources reported a production of 555,479 silver equivalent ounces for the quarter ending March 31, 2025, from its Parral operation. The strong cash flow from Parral is expected to fund further exploration at Los Ricos South and strengthen the company’s balance sheet for upcoming developments. This strategic move is anticipated to enhance GoGold’s value creation and provide flexibility in advancing its projects.

Spark’s Take on TSE:GGD Stock

According to Spark, TipRanks’ AI Analyst, TSE:GGD is a Neutral.

GoGold Resources’ overall stock score reflects a strong balance sheet and positive corporate events, which support potential growth. However, significant challenges remain in terms of cash flow management and stock overvaluation. The technical analysis suggests caution, particularly in the short term. Investors should consider these factors when evaluating the stock’s potential.

To see Spark’s full report on TSE:GGD stock, click here.

Private Placements and Financing
GoGold Resources Closes C$86 Million Financing Deal
Positive
Apr 4, 2025

GoGold Resources Inc. has successfully closed its bought deal offering, raising C$86.25 million through the sale of 47,391,500 common shares. The proceeds will be used for the development and exploration of the Los Ricos South and North projects, as well as for general corporate purposes, potentially strengthening GoGold’s position in the mining industry.

Private Placements and FinancingRegulatory Filings and Compliance
GoGold Resources Files Final Prospectus for $75 Million Offering
Positive
Apr 2, 2025

GoGold Resources has filed a final short form prospectus for its $75,002,200 bought deal public offering of common shares, priced at $1.82 per share, with the potential to raise an additional $11,250,330 if the over-allotment option is fully exercised. The offering, expected to close on April 4, 2025, has received conditional approval from the Toronto Stock Exchange, and aims to bolster the company’s financial position and market presence, although the shares will not be available in the United States.

Executive/Board ChangesShareholder Meetings
GoGold Resources Re-elects Board and Confirms Auditors at Annual Meeting
Positive
Mar 27, 2025

GoGold Resources announced the re-election of its board of directors at its annual meeting, with all nominees receiving a majority of votes. The reappointment of KPMG LLP as auditors was also confirmed. This event underscores GoGold’s stable governance and continued focus on its strategic projects in Mexico, which may positively impact its operational efficiency and stakeholder confidence.

Private Placements and FinancingBusiness Operations and Strategy
GoGold Resources Secures C$75 Million for Project Development
Positive
Mar 20, 2025

GoGold Resources Inc. has announced a C$75 million bought deal financing agreement with a syndicate of underwriters led by BMO Capital Markets. The proceeds will be used for the development of the Los Ricos South project, exploration activities at both Los Ricos South and North projects, and general corporate purposes. This financing is expected to bolster GoGold’s operational capabilities and enhance its project development in Mexico, potentially strengthening its position in the silver and gold production industry.

Business Operations and StrategyRegulatory Filings and Compliance
GoGold Resources Files Feasibility Study for Los Ricos South Project
Positive
Feb 28, 2025

GoGold Resources Inc. has filed a National Instrument 43-101 Feasibility Study for its Los Ricos South Project in Jalisco State, Mexico. The study outlines a 15-year mine life with a re-engineered underground mine plan, projecting an after-tax NPV of $355 million and an IRR of 28% at base case metal prices. The project anticipates producing 80 million payable silver equivalent ounces, with initial capital costs of $227 million. This development marks a significant step for GoGold, positioning the company to commence construction of its first mine in the Los Ricos district, with potential for further expansion and exploration in the area.

Business Operations and StrategyFinancial Disclosures
GoGold Achieves Record Revenue at Parral and Strengthens Financial Position
Positive
Feb 12, 2025

GoGold Resources Inc. announced record financial results for the first quarter of 2025, with the Parral facility generating $19.1 million in revenue from the sale of 625,972 silver equivalent ounces. This marks a notable increase in cash flow by over $4 million, attributed to the successful implementation of the SART Zinc circuit. The company sees Parral as a key contributor to funding future projects such as Los Ricos South, reflecting its strong operational performance and financial health.

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.