GORO My company report
Mexico
The Arista vein system remains strong and will continue to pull the rope and support all GORO operations for years to come, including mine costs, capital costs, exploration costs, dividends and even earnings.
Switchback mine was born 500 meters from Arista. They are hollowing out stopes for a year now, and could add meaningful production now if they wanted, but the plan, is to keep working the underground, to provide optionality for the future. The Switchback mine will be larger than the Aurista mine thats carried GORO all these years, and remember, the Aurista mine has a long way to go.
Alta Gracia, Currently they are intermittently pulling trucks with new material from Alta Gracia to the new CIL open pit. It should be any day, where the frequency of these trucks becomes daily, and provides meaningful additions to production. This is new high grade low cost additional production from a pit they were not using.
Four other mines in the hopper here we dont even hear about.
USA Nevada
Isabella Pearl should have the green light for production this year and add new high grade 2gpt, low cost production, starting q1 or q2 2018. This should add to around 50k additional ounces.
They will use these revenues to fund 3 other high grade heap leach mines to potential production.
All these properties are in close proximity so as to share production facilities.
Now all the above happened or could happen with no dilution or loans and directly from cash flow. At one point GORO paid .72/year in dividends. The above production with a better price for gold points to more than .72 in the future. That could be a juicy yield and price appreciation for the shares with what I see as very little risk.
Dont know why I posted this, but it just flowed out after a conversation with the company. This my friends, is a summary of the GORO operation, why I like and own it. For the short term, I could care less what it does. Not going to change the 2018 future one bit. Matter of fact I hopes it drops to $3
They do things a little different at GORO. Instead of taking on big loans, pushing big production with dilution, giving away a portion of production to the banks, they move slower, thereby keeping costs down and all the rewards to the shareholders. I think we will always see as shareholders, 1/3 of the profits in the form of divys and I think bigger profits are around the corner. This self financing, is the reason they dont get much analyst coverage.
Checkmate28 JMHO
