Value Microcaps Junior Miners

[checkmate28]

GORO Gold Reource corp. Great article on GORO pounding the value and reason GORO is misunderstood. I copied only an early paragraph and the conclusion, but the author does a good job explaining the contrarian value of GORO. Nice comparison charts as well comparing them to 20 plus peers.

Gold Resource Corp.: A Contrarian Gem

GORO is a profitable, producing miner that trades at a forward price to earnings ratio of 5.7! Moreover, its balance sheet is pristine with a debt to equity ratio of 0.03 (as calculated by finviz). To see how this compares to its competitors, I ran a screen of gold miners whose market cap was <$2B (again from finviz). The results are charted in the below link.

http://seekingalpha.com/article/3093276-gold-resource-corp-a-contrarian-gem

There are some nice drill result charts that show gold silver and base metals from the drill holes. The value of these holes would be Very impressive if they were to calculate the value per ton of the combined metals and convert it to AuEQ


Conclusion

GORO is a contrarian gem because the market fails to appreciate the company's unconventional approach to mine development and reserve delineation. At today's prices it has a large safety factor counting only its known reserves and it debt-free processing plant and infrastructure. Moreover GORO's potential upside is very large as it has discovered many more deposits all of which are returning exciting drill results and which may move into production well before formal SEC reserves are established. I remain long GORO for the long term.

Ill add one thing. Because of this unconventional approach of not using financing institutions, they are disliked be them. This also means no free analyst reports from supporting institutions.