Hochschild has almost 10M GORO shares left and I expect they will liquidate them as quickly as they can without crashing the GORO pps too much. I also note that the 1.8M shares they sold @ $4.36 per share were as a block well below market price, and I expect those to be sold as well by their new owner over the next while.
I can't share the financial analysis of GORO I am relying on as it is from a proprietary newsletter, but it is very clear to me that their business model is unsustainable and that unless PMs have a great year, they will have to cut the dividend altogether as without a much higher PoG/PoS they are losing money every quarter on their production.
But the killer for me is that IMO management has made repeated bad decisions and is not trustworthy (an opinion I also hold about Aurcana, among others). My only holding of any size right now in silver mining is IPT, which may not be making money with the current PoS but has very frugal management which does exactly what they say they are going to do and keeps dilution to a minimum. I also mention Impact because they similarly do not do as much 43-101 type resource/reserve development as some would like because it does not work very well for veiny deposits like those of GORO and IPT (or PVG for that matter).
I hope I am wrong and that you do well with your GORO holding, which would mean that PMs have been doing well and that my other PM holdings like BTO, OGC, DNA, RIO, IRL, IPT, PG, etc. will be doing well too.
LC
