Goro Gold Resource Corporation Acquires Interest in Canamex
GORO to acquire 22,222,222 common shares of Canamex, on a private placement basis, at a price of Cdn $0.09 per share for the aggregate purchase price of Cdn $2,000,000. Upon completion of the share acquisition, Gold Resource Corporation anticipates that it will hold approximately 18.4% of the issued and outstanding shares of Canamex.
LoneClone, Recently you claimed access to proprietary information stating
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
I called you out here, because the majority of your posts here are negative to GORO and don't match the record.
In the last 2 days GORO has not only paid the divy but has committed $2 million (equal to .04/GORO share divy money) to diversify & gain exposure to the Nevada US resource market. Looks to me like they took the divy cuts and spent them on possible future company growth.
May I suggest again (copy and paste from my Dec post)
Operationally GORO is classed an exploration company. The cost of the plant expansion is expensed rather than capitalized. The entire $17 million for the 2013 plant expansion, materials, equipment and labor have been subtracted from GORO's bottom line earnings. Should be more $ for Q4 but the mill expansion is complete. This expansion doubles the mill capacity. The question will be, how fast they can get the mine capacity at par with the mill. 2013 was a tough year, trying to expand with Low price of metals and paying the divy. With the mill complete, 2014 will blow away 2013 operationally. Their only analyst is forecasting .60 in earning for 2014.
Someone here mentioned the book value for GORO as being low. Most companys need to drill off millions of ounces to get the feasibility for the banks. GORO didn't need the NI43101 to get initially financed, and hence, only drilled enough to steer them to the production metals. Only recently they started working on the report. Their low booked 43-101 resource will hold down their book value relative to their peers.
and add: before the expansion, the mill was running at about 780tpd. They've doubled the capacity to about 1500tpd from cash flow (no dilution no financing)while paying the divy. Currently, they are continuing to expand the mine capacity to match the mill. Production should ramp up steadily through the year.
I still see a couple quarters to get efficient as they have low grade development orr to deal with.
Also as you know, Hoc will be free to sell another 10% of their holdings in March to help their much needed cash situation for their other projects. Personally, I hope HOC sells and create a buying opp for myself, as GORO being in the penalty box, has not participated in the recent PM run up.
Couple more quarters, get um cheap now.
Checkmate28
