Value Microcaps Junior Miners

[Lone Clone]

I am contemplating putting in my first ever short. It would be on GORO, precipitated by me reading an in depth analysis of production and cash flow which I can't share here because it is proprietary. It shows the strong probability of a much lower share price because the company has fallen so far behind their production forecasts it is very unlikely they will be able to maintain the dividend at that level. I expect the dividend to be cut in half at a minimum.

Hence I would be very careful about being long GORO here because the company can only maintain the current dividend if production suddenly starts exceeding forecasts by a large margin, very unlikely given that they have failed to meet those forecasts for quite a while now.

LC