Gold Resource Corp (GORO)

[Neverhadawinner]

Here is an extract of a Seeking Alpha article written by Taylor Dart on January 25, 2021. It is the conclusion paragraph of the article and it is worth reading. The whole article's title is: Gold Resource Corporation: A Massive Downgrade To The Investment Case Following Spinout

"The recent spin-out of the Nevada Operations to Gold Resource Corporation has given existing shareholders a nice pay-out as they received an investment in the attractive side of the business, but it's stripped down what was otherwise a decent investment thesis. Going forward, investors have to rely on a single mine in a sub-par jurisdiction and a relatively small reserve of just 317,000~ gold-equivalent ounces. Unfortunately, given this downgrade from multi-asset to a single-asset producer, the investment thesis isn't that strong even after a 60% decline since the 2016 peak. While an unattractive valuation relative to peers does not preclude Gold Resource Corporation from going higher, it does suggest there are better places to park one's money. Therefore, I believe that any rallies to $3.75 will provide selling opportunities."

I must note in 2020 it was hoped GORO move to a Tier I company in the gold mining industry (50,000+ annual gold production). That looks dim going forward. Sub-Tier 1 mines rarely trade above 3X sales according to the author.