The Record Decline in the Cost of Energy......It's not just Crude but Electricity also............Could help drop the production costs for GORO to like $900-950/oz...........
WTI Extends Losses Below $20 After Record Surge In Crude Inventories by Tyler Durden ZeroHedge
WTI crashed below $20 (tagging $19.20) overnight after API reported huge inventory builds and was not helped by comments from the International Energy Agency that a historic production cut deal won’t be enough to counter a record demand slump this year.
This appears to confirm a key gauge of the oil market’s health which is at its weakest in more than a decade as supplies build and futures contracts roll over. West Texas Intermediate crude for May delivery traded at more than $7 a barrel below its June contract on Tuesday, the deepest contango since 2009. The May contract is nearing expiration and exchange-traded funds, including the United States Oil Fund, have been selling front-month contracts and buying second-month futures.
“We may see further downward pressure on prices in coming days and weeks,” IEA Executive Director Fatih Birol said.
Operating Margin for any stock indicates how profitable investing would be, and Gold Resource Corporation [GORO] shares currently have an operating margin of +9.66 and a Gross Margin at +17.39. Gold Resource Corporation’s Net Margin is presently recorded at +4.36.
Return on Equity for this stock inclined to 4.09, with Return on Assets sitting at 3.24.
Gold Resource Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.80.
Gold Resource Corporation - A NYSE listed Gold Mining Business
An interview with Tony Tornquist, Canaccord Genuity Inc on the prospects of Gold Mining business, Gold Resource Corporation [NYSE: GORO]
Gold Resource Corp – new findings deeper inside Isabella Pearl
What is of most interest within the latest set of findings are the intercepts from deeper within the Isabella Pearl mine itself rather than at the Scarlet testing zone. This includes 25 meters of 18g gold and 84 meters of 8g gold. These are obviously many multiples above the 1g/tonne being mined nearer the surface at the moment.
Isabella Pearl mining operations
Gold Resource Corp began mining operations at Isabella Pearl back in June 2018, with the first gold being produced from April 2019. The project at Isabella Pearl contains both proven and provable reserves estimated at 2.9m tonnes which equates to 214,000 gold ounces at around 2.28g/tonne.
Scarlet represents the first of many targets for exploration north-west of the operating Isabella Pearl mine. Gold Resource Corp controls over 10 kilometres of mineralized trend in this area, which is along the Walker Lane Mineral Belt.
*****The Walker Lane Mineral Belt is considered to be the next big seam for mining in Nevada. It runs on a line between the states of California and Nevada. Copper and silver are also mined here but it has seen the discovery of multi-million ounce epithermal gold deposits. Historically Walker Lane was the site of the 1850s Comstock Lode discovery. Other miners active in the area include Barrick and Kinross, who have production operations at Round Mountain.
3 Gold Penny Stocks With Over 70% Potential Upside
Gold Resource Corporation (GORO)
For our last gold penny stock, we move to the Americas. Gold Resource, based in Colorado Springs, has active mines in Mexico’s Oaxaca state, in the southern part of the country, as well as the US state of Nevada, which has long been known for precious metal production and is even nicknamed the ‘Silver State.’
GORO’s active mines gave record production in 2019, putting out a total of 40,318 ounces of gold and 1,732,604 ounces of silver for the full year. The bulk of that production came from Oaxaca; the Nevada operations are not yet at full development. GORO’s net sales in 2019 totaled $135.4 million, and brought in $5.8 million in net income, for an EPS of 9 cents. It was the company’s ninth consecutive profitable year.
During 2019, GORO returned $113 million to shareholders through its dividend. The company pays out 4 cents per share monthly, making the yield a modest 1.41%. The payout ratio, however, is also low, at just 9.6%, showing that GORO can easily sustain the dividend and increase it at current income levels.
Looking ahead, GORO clearly expects income levels to remain intact. The company guides toward 2020 production of 54,000 gold ounces and 1,700,000 silver ounces, with a plus/minus of 10%. This is in-line with achieved 2019 production.
Heiko Ihle is bullish on GORO, as seen in his Buy rating and $8 price target. That target implies an upside for the stock of 170%. (To watch Ihle’s track record, click here)
Commenting on GORO, Ihle wrote, “…shares continue to be undervalued despite maintaining two strong precious metal operations in top tier mining jurisdictions. Additionally, the firm continues to enhance both its Nevada and Oaxaca operations through successful exploration drilling at site.”
GORO stock has a Moderate Buy rating from the analyst consensus, with both of the recent reviews rating the stock as a Buy proposition. GORO shares are selling for $2.96, and the average price target of $7.38 indicates that there may be room here for 148% upside share appreciation. (See Gold Resource’s analyst ratings at TipRanks)
There are presently around $105 million, or 48.10% of GORO stock, in the hands of institutional investors. The top three institutional holders of GORO stocks are: BLACKROCK INC. with ownership of 4,627,824, which is approximately 2.034% of the company’s market cap and around 1.40% of the total institutional ownership; VAN ECK ASSOCIATES CORP, holding 3,628,452 shares of the stock with an approximate value of $12.85 million in GORO stocks shares; and VANGUARD GROUP INC, currently with $11.22 million in GORO stock with ownership of nearly 1.877% of the company’s market capitalization.
49 institutional holders increased their position in Gold Resource Corporation [AMEX:GORO] by around 2,799,009 shares. Additionally, 38 investors decreased positions by around 2,138,313 shares, while 11 investors held positions by with 24,830,895 shares. The mentioned changes placed institutional holdings at 29,768,217 shares, according to the latest SEC report filing. GORO stock had 12 new institutional investments in for a total of 791,863 shares, while 9 institutional investors sold positions of 182,778 shares during the same period.
02/05/2020 BlackRock, Inc. 4,627,824
02/12/2020 Van Eck Associates Corporation 3,628,452 common shares
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