leadf
logo-loader
viewGold Resource Corporation

Roth repeats Buy rating on Gold Resource, sees more potential dividend increases

The firm has operations in Mexico and Nevada and has returned $112 million to shareholders in monthly dividends since commercial production started in 2010

Gold Resource Corporation -
GORO also offers shareholders the option to convert cash dividends into physical gold and silver

Roth Capital Partners repeated a Buy rating on miner Gold Resource Corporation (NYSEAMERICAN:GORO) after the company expanded mineralization at its Mirador mine in Mexico with this year's drilling.

The metals producer has operations in Oaxaca, Mexico and Nevada, and has returned $112 million to shareholders in monthly dividends since commercial production kicked off in 2010.

"....the company is successfully employing a mine-and-replace strategy at its Mexico Unit. Given this, we expect 2019 production to be replaced in the next reserve update, which we expect to be released in 1H20," said Roth analyst Jake Sekelsky in a note.

READ: Gold Resource Corp announces boost for Mexico unit as it expands Mirador mine

The Alta Gracia project, which hosts the Mirador mine, lies around 16 km north-west of the firm's Aguila project and processing plant.

Sekelskly highlighted that this year's exploration by GORO and the drill assays it received substantiated Roth's view that the Mexico business hosts 'significant exploration upside'.

The analyst also noted the group's commitment to returning capital to shareholders, noting that following commercial production at the Isabella Pearl mine in Nevada, it announced a 100% increase in its annualized dividend to $0.04 per share from $0.02 a share.

"Although the company has already increased its dividend by 100% this year, we believe the potential for further dividend increases remains on the back of sustained higher gold prices and Isabella Pearl reaching steady state production in 2020," said Sekelsky.

The price target is US$6.75 a share, compared to a current price of US$5.12 each.

Contact the author at giles@proactiveinvestors.com

Quick facts: Gold Resource Corporation

Price: 3.46 USD

NYSEMKT:GORO
Market: NYSEMKT
Market Cap: $242.47 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

Gold Resource celebrates ten years of production at Arista mine, generating...

Gold Resource Corporation (NYSEAMERICAN:GORO) CEO Jason Reid tells Proactive the gold mining firm is celebrating ten years of production from its Arista mine, over which time the firm has generated more than $1 billion in revenue. Reid also mentioned how the group is dealing with new reports...

on 07/01/2020

2 min read