Gold Resource (GORO) AI Stock Analysis

• Market Cap: $114.62M
• Dividend Yield: N/A
• Average Volume (3M): 2.43M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• Revenue Growth: -39.10%
• EPS Growth: 9.45%
• Country: US
• Employees: 480
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): -0.09
• Shares Outstanding: 136,449,740
• 10 Day Avg. Volume: 2,387,232
• 30 Day Avg. Volume: 2,429,002
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 3.13
• Enterprise Value/Gross Profit: -7.29
• Enterprise Value/Ebitda: -6.83
• 1Y Price Target: $1.25
• Price Target Upside: 56.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: ―

Gold Resource faces significant financial challenges, with declining revenues and negative profitability weighing heavily on its overall performance. While technical indicators show some short-term upward momentum, valuation concerns due to a negative P/E ratio and lack of dividends limit upside potential. Despite the operational difficulties highlighted in the recent earnings call, the discovery of the Three Sisters system and successful drilling program provide some hope for future improvement.

Positive Factors

Discovery of Three Sisters System

The discovery of the Three Sisters system is a significant positive development, as it is expected to enhance mining efficiency and reduce costs, potentially improving profitability and operational sustainability over the long term.

Increase in Mineral Reserves

The increase in mineral reserves strengthens the company's resource base, providing a more secure foundation for future production and revenue generation, supporting long-term operational stability.

New COO Appointment

The appointment of a new COO with extensive industry experience is likely to enhance operational effectiveness and strategic execution, potentially leading to improved performance and stability.

Negative Factors

Declining Revenues

Declining revenues and negative profit margins indicate ongoing financial challenges, which can hinder the company's ability to invest in growth and maintain competitive positioning over time.

Negative Cash Flow

Negative cash flow and liquidity issues pose a risk to the company's ability to sustain operations and invest in necessary capital expenditures, impacting long-term viability.

Restatement of Financial Liabilities

The restatement of financial liabilities indicates potential weaknesses in financial oversight and reporting, which could undermine investor confidence and affect the company's financial stability.

Gold Resource Business Overview & Revenue Model

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.

How the Company Makes Money

Gold Resource Corporation generates revenue primarily through the extraction and sale of precious and base metals, including gold, silver, copper, lead, and zinc. The company operates mines and processing facilities where these metals are extracted and processed for sale. Revenue is influenced by the production volume, market prices of metals, and operational efficiency. The company may also enter into strategic partnerships or joint ventures to optimize resource extraction and distribution. Additionally, GORO may engage in hedging activities to manage price volatility and protect its revenue streams.

Gold Resource Financial Statement Overview

Summary

Gold Resource is experiencing financial distress, with declining revenues, negative profit margins, and weakening balance sheet metrics. Immediate strategic changes are necessary to address operational inefficiencies and stabilize the company's financial health.

Income Statement

Gold Resource has faced significant challenges in recent years, with total revenue dropping to zero in 2024, indicating a severe downturn in operations. The net profit margin and gross profit margin have also suffered, being negative or zero in recent periods. EBIT and EBITDA margins show consistent losses, reflecting operational inefficiencies and financial distress.

Balance Sheet

The company’s balance sheet reveals a concerning financial position. Although total debt was reduced to zero in 2024, the substantial decline in stockholders' equity and total assets suggests declining financial stability. The equity ratio has weakened significantly over time, indicating increased financial risk.

Cash Flow

Cash flow analysis shows negative free cash flow with no significant improvement in operating cash flow, emphasizing liquidity issues. The operating cash flow to net income ratio indicates inefficiencies in generating cash from operations, which poses sustainability concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.81M	65.73M	97.73M	138.72M	125.20M	90.69M
Gross Profit	-21.36M	-20.49M	-5.32M	29.75M	36.75M	12.49M
EBITDA	-22.80M	-14.12M	5.15M	30.27M	33.64M	17.12M
Net Income	-44.55M	-56.50M	-16.02M	-6.32M	8.03M	-6.33M
Balance Sheet
Total Assets	155.14M	145.87M	183.89M	204.17M	215.76M	105.73M
Cash, Cash Equivalents and Short-Term Investments	12.67M	1.63M	6.25M	23.68M	34.30M	26.08M
Total Debt	88.01M	0.00	44.93M	43.47M	42.56M	13.00K
Total Liabilities	135.98M	118.59M	87.19M	92.41M	95.01M	15.20M
Stockholders Equity	19.16M	27.28M	96.69M	111.76M	120.75M	90.54M
Cash Flow
Free Cash Flow	-8.25M	-8.25M	-17.71M	-4.08M	14.17M	22.59M
Operating Cash Flow	-627.00K	-627.00K	-5.22M	14.16M	34.78M	35.40M
Investing Cash Flow	-6.44M	-6.44M	-12.49M	-19.44M	-22.97M	-14.45M
Financing Cash Flow	2.71M	2.71M	62.00K	-3.91M	-3.06M	-5.22M

Gold Resource Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GORO, the sentiment is Positive. The current price of 0.8 is above the 20-day moving average (MA) of 0.70, above the 50-day MA of 0.58, and above the 200-day MA of 0.49, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 62.06 is Neutral, neither overbought nor oversold. The STOCH value of 67.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GORO.

Gold Resource Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDR	70 Outperform	427.04M	45.98	18.02%	―	59.64%	61.41%
GORO	52 Neutral	$114.62M	―	-103.39%	―	-39.10%	9.45%
CTGO	50 Neutral	299.76M	-41.46	―	―	―	91.60%
PZG	45 Neutral	85.74M	-8.83	―	―	―	-10.14%
HYMC	31 Underperform	356.30M	-3.16	―	―	―	31.11%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Gold Resource Corporate Events

Gold Resource Appoints New COO Amid Leadership Change

Gold Resource Corporation announced the departure of its Chief Operating Officer, Alberto Reyes, effective April 21, 2025, and the appointment of Armando Alexandri as his successor, effective April 22, 2025. Alexandri, a mining engineer with over 40 years of experience, is expected to advance the company’s strategic goals, particularly in enhancing the operations of the Don David Gold Mine in Mexico.

Spark’s Take on GORO Stock

According to Spark, TipRanks’ AI Analyst, GORO is a Underperform.

Gold Resource Corporation is facing severe financial and operational challenges, with significant declines in revenue, negative profit margins, and a weak technical outlook. Despite the company’s strategic plans and recent positive developments in reserve replacement, the overall outlook remains precarious, resulting in a low overall score. Investors should be cautious as the company attempts to execute its turnaround strategy.

To see Spark’s full report on GORO stock, click here.

Gold Resource Boosts Reserves with Successful Drilling

On March 5, 2025, Gold Resource Corporation announced the release of the S-K 1300 Technical Report Summary for the Don David Gold Mine, highlighting a successful 2024 drilling program. The program resulted in a replacement of mined reserves and a 10% increase in Mineral Reserves, with a significant increase in the Three Sisters vein system. The report, prepared under S-K 1300 standards, enhances confidence in the reliability of the company’s Mineral Resources and Reserves.