logo-loader
Gold Resource Corporation

Gold Resource Corp due a re-rating as Nevada mine ramps up, says Roth

Roth analyst Jake Sekelsky said he expects the group's "cash-producing Mexico Unit to continue to operate at a steady state and commercial production to be achieved in Nevada during 2H19"

Gold bars
The analyst said the Isabella Pearl mine has the potential to increase GORO's consolidated production profile by over 100%

Roth Capital reckons miner Gold Resource Corporation (NYSEAMERICAN:GORO) is due a re-rating with production and cashflow set to continue to increase in the second half as commercial output is achieved at its Isabella Pearl mine in Nevada.

In a note published on Thursday, the broker repeated a Buy rating on the stock, with a target price of $6.50 (current share price: $3.55).

READ: Gold Resource Corporation boosts 2019 production outlook

On Wednesday, the Gold Resource Corp. posted second quarter numbers, which showed net earnings of US$1.8 million, or US$0.03 per share, on revenue of  $32.7 million.

Roth analyst Jake Sekelsky said he expects the group's "cash-producing Mexico Unit to continue to operate at a steady state and commercial production to be achieved in Nevada during 2H19."

Pre-commercial production at Isabella Pearl in the three months totaled 1,678 ounces of gold and 972 ounces of silver at an average grade of 0.61 grams per ton (g/t) gold but the analyst reckons that will trend higher.

Sekelsky pointed out that commercial production could be achieved by the end of 2019, with 2020 the first full year of production for the Nevada mine.

He concluded: "We highlight that based on our existing forecasts, the Isabella Pearl mine has the potential to increase GORO's consolidated production profile by over 100% and free cash flow generation by approximately 50% YoY."

Contact the author at [email protected]

Quick facts: Gold Resource Corporation

Price: $3.72

Market: NYSEMKT
Market Cap: $243.98 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Gold Resource Corporation named herein, including the promotion by the Company of Gold Resource Corporation in any Content on the Site, the...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Gold Resource reports Q2 production numbers at Mexican and Nevada mines

Gold Resource Corporation (NYSEMKT:GORO) CEO Jason Reid offered Proactive Investors a glimpse into the gold miner's 2Q production numbers at its Oaxaca Mexican mining project and its Isabella Pearl project in Nevada. Reid says Isabella Pearl is ramping up production, and looking forward...

on 07/25/2019

2 min read