Gold Resource Corporation
Gold Resource Corporation (NYSE: GORO) is a mining company that produces precious and base metal concentrates and doré, including gold, silver, lead, and zinc. Its Mexican affiliate Don David Gold Mine has six projects, including the Arista underground mine at the Aguila project, which supplies ore to the Aguila complex's processing facilities.
Why should Investors Book Profits?
Valuation Methodology: EV/Sales Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
GORO's stock price had surged 30.18% in the past month and is currently leaning towards the mid-band of its 52-week range of USD 1.50 to USD 3.11. We have valued the stock using the EV/Sales-based relative valuation methodology and arrived at a target price of USD 1.75.
Considering the surge in the share price in a brief span, macro headwinds, industry lagging margins, current valuation, and associated risks, we recommend a "Sell" rating on the stock at the closing price of USD 2.20, as of March 14, 2022.
Three-Year Technical Price Chart (as of March 14, 2022). Source: REFINITIV, Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.