Gold Resource Corp (GORO)

[groveswise]

Jefferies Starts Gold Resource Corp (GORO) at Buy, Price Target $45

January 5, 2011 9:45 AM EST
Jefferies initiates coverage on Gold Resource Corp (NYSE: GORO) with a Buy rating and a price target of $45. The company is an an emerging gold and silver mining producer that has a strong production growth and cash flow profile. They find the company's business model very unique with founders/insiders owning 20% of the the company. Management has reported that their goal is to distribute at least one-third of excess cash flow to common shareholders on a regular basis. This is very rare for an emerging company in the mining sector to focus on returns of capital for shareholders. Jefferies has EPS/revenue estimates for FY10-12 of ($0.35)/$21.3M, $1.25/$135.2M, and $2.50/$275.3M.

For more ratings news on Gold Resource Corp click here and for the rating history of Gold Resource Corp click here.

Shares of Gold Resource Corp closed at $27.60 yesterday, with a 52 week range of $8.52-$24.75.

http://www.streetinsider.com/New+Coverage/Jefferies+Starts+Gold+Resource+Corp+%28GORO%29+at+Buy%2C+Price+Target+%2445/6197421.html

Might want to load up on the June 30-35 call options!!!

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