GORO - Gold Resource Corporation: An Inferior Way To Play The Sector
- Gold Resource Corporation released its Q4 and FY2020 results last week, reporting a sharp decline in production on a year-over-year basis.
- Unfortunately, the FY2021 outlook isn't that exciting either, with the mid-point implying minimal growth from FY2020 levels.
- While investors had high hopes for Gold Resource Corporation with Isabella-Pearl set to allow for a significant upside re-rating, this thesis is gone given the spin-out of the Nevada assets.
- I continue to see Gold Resource Corporation as an Avoid given that it's now a single-asset miner in a Tier-2 jurisdiction, with a sub-10-year reserve life.
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Gold Resource Corporation: An Inferior Way To Play The Sector