Download PDF

1. Company Snapshot

1.a. Company Description

Gold Resource Corporation engages in the exploration, development, and production of gold and silver projects in Mexico and the United States.The company also explores for copper, lead, and zinc deposits.Its principal asset is the 100% owned Back Forty project covering approximately 1,304 hectares located in Menominee county, Michigan.


The company was founded in 1998 and is headquartered in Denver, Colorado.

Show Full description

1.b. Last Insights on GORO

Gold Resource Corporation's recent performance was driven by a series of positive developments. The company successfully closed a $2.5 million registered direct offering, providing much-needed working capital. Additionally, the release of the S-K 1300 Technical Report for the Don David Gold Mine highlighted a 10% increase in Mineral Reserves, indicating a promising future for the mine. Furthermore, the 2024 exploration drill results revealed significant contributors to the company's future resource, including the Three Sisters and Gloria vein systems.

1.c. Company Highlights

2. Gold Resource Corporation's Q3 2025 Earnings: A Turnaround in Sight?

Gold Resource Corporation reported a loss per share of -$0.15 in Q3 2025, missing analyst estimates of -$0.05. Revenue growth is expected to be robust, with analysts estimating an 85.5% increase in revenue for the next year. Despite the current loss, the company's cash position improved significantly, ending the quarter with over $9 million in cash. The mining gross profit during the quarter marked a key milestone, signaling progress on the path back to profitability.

Publication Date: Nov -25

📋 Highlights
  • Cash Position:: Ended Q3 with over $9 million in cash, reflecting capital raising success and disciplined management.
  • Three Sisters Production:: 1,435 meters of development completed, enabling production commencement and expected to contribute 40–50% of total output by 2026.
  • Cost Efficiency:: Cut and fill mining reduced dilution by 25%, with mining costs at $50–55/tonne compared to $40–45/tonne for long haul methods.
  • Revenue Growth:: Mining gross profit achieved in Q3, signaling progress toward profitability despite cash costs remaining above long-term targets.
  • Production Ramp-Up:: Multiple shipments completed in late September, with end-of-quarter production reflecting operational improvements.

Operational Highlights

The company's operational changes, including the introduction of cut and fill mining in narrow vein zones, have resulted in lower dilution and higher profitability. According to Allen Palmiere, "the cost of cut and fill mining is running low to mid-50s per ton, compared to low 40s for long haul mining." This change has led to a 10-15% increase in mining cost but a 25% reduction in dilution. The development of the Three Sisters area has progressed well, with 1,435 meters completed, enabling the commencement of production.

Valuation and Outlook

With a current P/S Ratio of 2.24, the market is pricing in significant revenue growth. The EV/EBITDA ratio stands at -4.61, indicating that the company's enterprise value is not yet supported by its EBITDA. As the company continues to progress towards profitability, investors will be watching the revenue growth and margin expansion closely. The expected increase in production from the Three Sisters area in 2026 should contribute to this growth.

Key Metrics and Future Expectations

The company's ROE stands at -159.65%, and the ROIC is -8.04%, reflecting the current losses. However, with the anticipated turnaround, these metrics are expected to improve. The Net Debt / EBITDA ratio is 0.63, indicating a manageable debt position relative to EBITDA. As the company moves forward, the focus will be on sustaining the improvement in operations and achieving profitability.

3. NewsRoom

Card image cap

Gold Resource Corporation Reports Strong Initial Production From the Three Sisters Area at the Don David Gold Mine

Dec -03

Source: businesswire.com

Card image cap

Gold Resource (NYSE:GORO) Stock Price Down 3.6% – Time to Sell?

Dec -03

Source: defenseworld.net

Card image cap

Silver Soars To Record Highs: It's Up 95% In 2025, The Best Year Since 1979

Nov -28

Source: feeds.benzinga.com

Card image cap

Gold Resource Corporation (GORO) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

Card image cap

Gold Resource Corporation Announces Q3 2025 Conference Call

Nov -03

Source: businesswire.com

Card image cap

Gold Resource Corporation (GORO) Q2 2025 Earnings Call Transcript

Aug -06

Source: seekingalpha.com

Card image cap

Gold Resource (GORO) Q2 Sales Drop 57%

Aug -06

Source: fool.com

Card image cap

Gold Resource Corporation Reports H1 2025 Drilling Results and Operational Improvements at the Don David Gold Mine

Jul -30

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.00%)

6. Segments

Concentrate - Gold

Expected Growth: 15%

Gold Resource Corporation's Concentrate - Gold segment is driven by increasing gold prices, rising production volumes, and improved operational efficiencies. The 15% growth rate is also fueled by the company's successful exploration and development of new gold deposits, as well as its strategic acquisitions and partnerships.

Concentrate - Zinc

Expected Growth: 12%

Gold Resource Corporation's Concentrate - Zinc segment growth is driven by increasing zinc demand from the galvanizing and die-casting industries, coupled with the company's expansion into new mining projects and exploration activities. Additionally, the segment benefits from the rising zinc prices and the company's cost-saving initiatives, resulting in a 12% growth rate.

Concentrate - Silver

Expected Growth: 13%

Gold Resource Corporation's Concentrate - Silver growth is driven by increasing silver prices, rising production volumes, and improved operational efficiency. The company's focus on exploration and development of new projects, coupled with its cost-reduction initiatives, has also contributed to the 13% growth. Additionally, strong demand from industrial and jewelry sectors has supported silver prices, further boosting growth.

Concentrate - Treatment and Refining Charges

Expected Growth: 10%

Gold Resource Corporation's 10% growth in Concentrate - Treatment and Refining Charges is driven by increasing gold production, higher gold prices, and improved metallurgical recoveries. Additionally, the company's focus on optimizing its processing plant and reducing operating costs has contributed to the growth. Furthermore, the expansion of its mining operations and exploration activities have also supported the increase in treatment and refining charges.

Concentrate - Copper

Expected Growth: 14%

Gold Resource Corporation's Concentrate - Copper segment growth is driven by increasing copper prices, rising demand from electric vehicle and renewable energy industries, and strategic expansion into new mining projects, leveraging the company's existing infrastructure and expertise.

Concentrate - Lead

Expected Growth: 11%

Gold Resource Corporation's Concentrate - Lead segment growth is driven by increasing gold prices, rising production volumes, and improved operational efficiencies. Additionally, strategic acquisitions and exploration activities are expected to contribute to the 11% growth rate.

Dore - Gold

Expected Growth: 16%

Dore - Gold from Gold Resource Corporation's 16% growth driven by increasing gold prices, rising production volumes, and improved operational efficiencies. Additionally, the company's focus on exploration and development of new projects, coupled with its strong balance sheet and low debt levels, support its growth momentum.

Unrealized Gain (Loss) - Embedded Derivative, Net

Expected Growth: 8%

Unrealized Gain (Loss) - Embedded Derivative growth of 8% from Gold Resource Corporation is driven by increasing gold prices, favorable hedge positions, and effective risk management strategies. Additionally, the company's focus on optimizing its mining operations and reducing costs has contributed to the growth.

Realized Gain Embedded Derivative, Net

Expected Growth: 9%

Realized Gain Embedded Derivative growth of 9% from Gold Resource Corporation is driven by increasing gold prices, successful hedging strategies, and favorable currency exchange rates. Additionally, improved operational efficiency, reduced costs, and strategic asset optimization contribute to the growth.

Dore - Silver

Expected Growth: 15%

Dore - Silver from Gold Resource Corporation's 15% growth driven by increasing silver prices, rising production volumes, and improved operational efficiencies. Additionally, exploration success and reserve expansion at the Oaxaca Mining Unit, coupled with a strong balance sheet, support the company's growth momentum.

Dore - Refining Charges

Expected Growth: 12%

Dore refining charges from Gold Resource Corporation, with 12% growth, are driven by increasing gold production, strong demand for precious metals, and efficient refining processes. Additionally, the company's focus on cost reduction, strategic partnerships, and expansion into new markets contribute to this growth.

7. Detailed Products

Gold

Gold Resource Corporation is a gold producer that operates the Oaxaca Mining Unit, which includes the Arista and Mirador underground mines, the Mirador West underground mine, and the processing plant.

Silver

The company also produces silver as a by-product of its gold mining operations, with a significant portion of its silver production coming from the Arista underground mine.

Copper

Gold Resource Corporation also produces copper as a by-product of its gold and silver mining operations, with a significant portion of its copper production coming from the Mirador underground mine.

Lead

The company produces lead as a by-product of its gold, silver, and copper mining operations, with a significant portion of its lead production coming from the Arista underground mine.

Zinc

Gold Resource Corporation also produces zinc as a by-product of its gold, silver, and copper mining operations, with a significant portion of its zinc production coming from the Mirador underground mine.

8. Gold Resource Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Gold Resource Corporation operates in the gold mining industry, which has a moderate threat of substitutes. While there are alternative metals and materials, gold remains a highly sought-after precious metal with limited substitutes.

Bargaining Power Of Customers

Gold Resource Corporation's customers, primarily jewelry manufacturers and central banks, have limited bargaining power due to the company's strong brand reputation and the lack of alternative suppliers.

Bargaining Power Of Suppliers

Gold Resource Corporation relies on suppliers for equipment, materials, and services. While there are some alternative suppliers, the company's large scale of operations and long-term contracts mitigate the bargaining power of suppliers.

Threat Of New Entrants

The gold mining industry has significant barriers to entry, including high capital costs, regulatory hurdles, and environmental concerns. This limits the threat of new entrants and allows Gold Resource Corporation to maintain its market position.

Intensity Of Rivalry

The gold mining industry is highly competitive, with many established players competing for market share. Gold Resource Corporation faces intense rivalry from companies like Barrick Gold, Newmont Goldcorp, and AngloGold Ashanti.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.73%
Debt Cost 4.43%
Equity Weight 68.27%
Equity Cost 11.92%
WACC 9.54%
Leverage 46.47%

11. Quality Control: Gold Resource Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Idaho Strategic Resources

A-Score: 4.9/10

Value: 0.0

Growth: 9.7

Quality: 8.0

Yield: 0.0

Momentum: 10.0

Volatility: 1.7

1-Year Total Return ->

View Full Report
Stock-Card
Coeur Mining

A-Score: 4.3/10

Value: 2.6

Growth: 4.3

Quality: 6.8

Yield: 0.0

Momentum: 10.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
American Vanguard

A-Score: 3.9/10

Value: 9.5

Growth: 2.2

Quality: 3.1

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Gold Resource

A-Score: 3.6/10

Value: 7.4

Growth: 0.3

Quality: 2.8

Yield: 1.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

View Full Report
Stock-Card
ASP Isotopes

A-Score: 3.4/10

Value: 6.0

Growth: 1.4

Quality: 3.0

Yield: 0.0

Momentum: 9.5

Volatility: 0.3

1-Year Total Return ->

View Full Report
Stock-Card
Rayonier Advanced Materials

A-Score: 3.1/10

Value: 6.6

Growth: 3.8

Quality: 0.9

Yield: 0.0

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.75$

Current Price

0.75$

Potential

-0.00%

Expected Cash-Flows