Gold Resource Corp (GORO): Building Strength

Company Profile:

Gold Resource Corporation explores for and produces gold and silver in Mexico. It also explores for copper, lead, and zinc deposits. The companys flagship property includes the El Aguila project comprising 17 mining concessions aggregating approximately 30,074 hectares located in the State of Oaxaca. Gold Resource Corporation was founded in 1998 and is headquartered in Colorado Springs, Colorado.

Recent News:

On May 13, 2015, the Company announced the resignation of Mr. Joe Rodriguez, the Company’s Chief Financial Officer and has appointed Mr. John Labate to serve as interim Chief Financial Officer of the Company effective immediately.

The Company declared its monthly instituted dividend of $0.01 per common share for April 2015 payable on May 26, 2015 to shareholders of record as of May 11, 2015. It has returned over $103 million to shareholders in monthly dividends since commercial production commenced July 1, 2010.

The Company reported production results for the first quarter ended March 31, 2015 of 19,347 ounces precious metal gold equivalent (AuEq), which generated $5.1 million in net income for the quarter.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

GORO’s strengths can be seen in its strong growth, strong profitability and strong efficiency. Its revenue and net income have increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 54.91. The current P/E ratio indicates it is undervalued compared to the average P/E ratio of the sector. We rate Gold Resource Corp (GORO) a Strong BUY.