GLGDF - GoGold: Further Price Rallies Are Likely But Wait For Lower Prices
2024-06-02 11:26:49 ET
Summary
- GoGold Resources Inc. receives a "Hold" rating for its shares.
- The company's production and revenue are improving thanks to higher metal recoveries at the Parral Tailings mine in Chihuahua, Mexico.
- GoGold Resources Inc. targets growth in Jalisco, Mexico with its Los Ricos project.
- The company is making good progress on both fronts, supported by promising prospects for precious metals and copper prices. As stocks correlate with commodity cyclicality should see further price rallies.
- The outlook is rosy for the precious metal as a portfolio hedge against economic slowdown and geopolitical tensions. Copper is also expected to have its prices well supported by demand exceeding supply.
A “Hold” rating for shares of GoGold Resources Inc.
GoGold Resources Inc. ( OTCQX:GLGDF ) ( GGD:CA ) is a Canadian silver and gold producer with over 15 years of precious metals mining and exploration experience. The company operates the Parral Tailings mine, located 93 km southwest of Camargo, Chihuahua, Mexico. There, the company produced 375,745 silver equivalent ounces (or SEOs) in Q1 2024 (which for GoGold corresponds to the second fiscal quarter of 2024) at $24.20 in adjusted all-in sustaining costs per silver equivalent ounce (or "AISC/SEO").
How the company is Performing
Although production was still 6.1% lower year-on-year and AISCs/SEO were higher (up 22.5% year-on-year), SEO production improved in calendar Q1 2024 compared to the previous three quarters: To recover more ounces of silver and gold, a SART-zinc circuit technology was recently commissioned at the gold cyanidation plant, resulting in the first quarterly zinc production of 92 tonnes. As operations progress, further positive production results await because the implementation of the technology aims to achieve high recovery rates. Through the SART (or “sulfidation-acidification-recycling-thickening”) process, the metal is precipitated as a commercial concentrate, and the remaining free cyanide is returned to the gold mine cycle....
GoGold: Further Price Rallies Are Likely, But Wait For Lower Prices