Gold Resource Corporation (GORO) explores for, develops, produces, and sells gold and silver in Mexico and the United States. It also explores for copper, lead, and zinc, notes small cap expert Bill Mathews, editor of The Cheap Investor.
The company's flagship property is the El Aguila project comprising 19 mining concessions aggregating approximately 30,215 hectares, located in the State of Oaxaca. The company has returned over $110 million to its shareholders since commercial production commenced July 1, 2010.
Gold Resource Corporation offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery.
“I am pleased that Gold Resource Corporation delivered our seventh consecutive year of profitability,” stated CEO and President, Mr. Jason Reid. “During 2017, our Company posted annual net income of $4.2 million or $0.07 per share. That number factors in the $7.3 million in non-cash new tax law adjustments that lowered our earnings by $0.13 per share."
Reid adds, "We also returned $1.1 million back to our shareholders through dividends and added $8.2 million to our bank accounts, all while continuing to invest in the Company’s future growth in both Mexico and Nevada. We once again accomplished all of these highlights without diluting shareholders through equity sales and without going into long-term debt.”
Over the years, mid-major gold producing stocks have been a winner for our subscribers. We look for companies with increasing revenues and earnings and a small number of shares outstanding.
We first recommended Gold Resource in the July 2015 issue at $2.91, and it soared 180% to a high of $8.15. We issued another buy in the December issue when the stock fell to $3.85. Since then, it’s moved up 31% to a high of $5.05 per share.
Gold Resource is a profitable gold company, which is good during these chaotic times. If gold prices move up significantly, Gold Resource’s stock should move up accordingly. The stock is volatile, and if the price falls back to $3.50 or below, we could consider buying more shares.
