On Monday, H.C. Wainwright analyst adjusted the price target for Gold Resource Corp (NYSE:GORO) shares, bringing it down to $1.25 from the previous $1.75, while still maintaining a Buy rating on the stock. Currently trading at $0.44, GORO has shown remarkable momentum with a 160.76% gain year-to-date, according to InvestingPro data. The revision follows the release of the company’s S-K 1300 Technical Report Summary (TRS) for its principal operation, the Don David Gold Mine, on Sunday.
The TRS highlighted a successful drilling year for Gold Resource Corporation in 2024, which resulted in the replacement of all mined reserves during the year. Notably, there was a 10% increase in the tonnage of Mineral Reserves compared to the previous year. This substantial growth was primarily attributed to the discovery of the Three Sisters vein system. Despite these operational achievements, InvestingPro data reveals the company faces profitability challenges with a thin gross profit margin of 5.05% and revenue of $73.9M in the last twelve months.
The report detailed an 800% surge in Mineral Reserves, now totaling 526,152 tonnes, up from 57,890 tonnes. Concurrently, the site’s Mineral Resource experienced a 180% increase, reaching 662,749 tonnes from the previous 234,014 tonnes. The impressive expansion was driven by extensive drilling activities, with Gold Resource Corporation drilling 12,760 meters across 87 holes throughout the year.
H.C. Wainwright emphasized that the significant increase in Mineral Reserves and Resources demonstrates the success of the company’s recent drilling efforts. Looking forward, the firm anticipates further expansion of resources at the Don David Mine, which is expected to enhance the mine’s long-term economic prospects.
In their commentary, H.C. Wainwright reiterated their confidence in the stock by maintaining a Buy rating, despite the lowered price target. They underscored the importance of the recent drilling results, which point to an optimistic future for the company’s mining operations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.