GoGold Resources (GGD) AI Stock Analysis

• Market Cap: $758.29M
• Dividend Yield: N/A
• Average Volume (3M): 784.75K
• Price to Earnings (P/E): 153.0
• Beta (1Y): 1.64
• Revenue Growth: 74.02%
• EPS Growth: N/A
• Country: CA
• Employees: 229
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Other Precious Metals
• EPS (TTM): 0.01
• Shares Outstanding: 326,850,620
• 10 Day Avg. Volume: 1,032,384
• 30 Day Avg. Volume: 784,750
• PEG Ratio: 1.90
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 38.99
• Enterprise Value/Market Cap: 0.40
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 14.51
• Enterprise Value/Ebitda: 6.20
• 1Y Price Target: $2.50
• Price Target Upside: 9.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• 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 Business Overview & Revenue Model

Company Description

GoGold 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 Money

GoGold 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

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

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

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
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
57.46M	36.50M	30.26M	36.05M	53.23M	39.55M
	Gross Profit
21.15M	12.19M	-3.95M	5.32M	19.61M	8.95M
	EBIT
12.41M	3.23M	-11.84M	2.61M	8.00M	3.95M
	EBITDA
19.05M	10.70M	-6.24M	6.77M	13.79M	47.26M
	Net Income Common Stockholders
3.45M	1.58M	-7.89M	692.00K	7.08M	43.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.03M	72.03M	95.23M	73.34M	66.84M	52.63M
	Total Assets
150.83M	312.43M	302.42M	264.68M	225.32M	183.10M
	Total Debt
42.16M	0.00	775.00K	1.02M	959.00K	1.69M
	Net Debt
41.13M	-72.03M	-94.46M	-72.32M	-65.88M	-50.94M
	Total Liabilities
60.13M	27.93M	20.87M	24.35M	19.06M	12.27M
	Stockholders Equity
90.69M	284.50M	281.56M	240.33M	206.26M	170.83M
Cash Flow		Free Cash Flow
9.88M	-11.88M	-8.46M	-1.18M	12.10M	3.71M
	Operating Cash Flow
10.00M	-10.68M	-7.42M	-976.00K	12.38M	5.95M
	Investing Cash Flow
-11.18M	-11.20M	-14.90M	-24.70M	-19.70M	-5.88M
	Financing Cash Flow
-737.00K	-976.00K	44.40M	32.43M	20.45M	50.93M

GoGold Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FVI	80 Outperform	$3.10B	13.43	12.07%	―	30.33%	―
SVM	76 Outperform	$1.25B	14.42	9.62%	0.61%	31.23%	110.49%
GGD	66 Neutral	$758.29M	153.02	1.21%	―	74.02%	―
EDR	58 Neutral	$1.80B	―	-14.41%	―	4.45%	-3193.40%
MAG	57 Neutral	$3.00B	23.40	16.27%	0.94%	―	61.66%
Sector *	51 Neutral	$2.02B	-1.14	-21.36%	3.64%	2.88%	-30.57%

GoGold Resources Corporate Events

GoGold Resources Reports Strong Q2 Production and Strategic Advancements

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.

GoGold Resources Closes C$86 Million Financing Deal

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.

GoGold Resources Files Final Prospectus for $75 Million Offering

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.

GoGold Resources Re-elects Board and Confirms Auditors at Annual Meeting

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.

GoGold Resources Secures C$75 Million for Project Development

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.

GoGold Resources Files Feasibility Study for Los Ricos South Project

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.

GoGold Achieves Record Revenue at Parral and Strengthens Financial Position

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.