Gold Ressource Corporation (GORO): Scam or Hot Stock?

GORO: scam or hot stock

  • SCAM

    Votes: 1 33.3%

  • hot stock

    Votes: 2 66.7%
  • Total voters
    3

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swissaustrian

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I think it's a problem for the whole sector.

Sentiment towards miners is extremely negative despite the fact that earnings have been stellar. They have been the perfect target for short sellers. Ask anyone who was long SVM a few months ago.

While SVM turned out to be real, I have no clue on GORO. The fact they actually pay out dividends is showing you "something". Unless you visit the mine yourself, it's going to be hard to definitively say they aren't a fraud. Same type of slander could be made against any miner. Just do you homework and keep your position size appropriate and you'll be fine.
 
Gold Resource Corporation to Launch Gold and Silver Dividend
COLORADO SPRINGS, CO, Mar 12, 2012 (MARKETWIRE via COMTEX) -- Gold Resource Corporation is pleased to announce the scheduled launch of its innovative gold and silver dividend program. Gold Resource Corporation is a low-cost gold producer with operations in the southern state of Oaxaca, Mexico. The Company has paid 20consecutive monthly dividends since declaring commercial production totaling over $41 million returned to shareholders.
Gold Resource Corporation is scheduled to launch its gold and silver dividend program April 10th, 2012. The default company dividend will continue to be in cash, but this unique option will give shareholders the ability to convert their cash dividends into physical gold and/or silver. Shareholders may establish an "individual bullion account," whereby cash dividends are converted into Gold Resource Corporation "Double Eagle" one ounce .999 fine gold and/or one ounce .999 fine silver rounds (see image). Gold Bullion International (GBI), a leading institutional precious metals provider to individual investors and the wealth management industry, is facilitating the Company's cash dividend to physical conversion. The Company will direct GBI to draw gold and silver Gold Resource Corporation Double Eagles from the Company's minted physical treasury and distribute precious metals as directed by Company shareholders.
"A convenient and simple way of delivering precious metal dividends to shareholders has been a long-term goal of the Company," stated Jason Reid, President of Gold Resource Corporation. "With innovative assistance from Gold Bullion International, management of Gold Resource Corporation is pleased and excited to announce the launch of the Company's gold and silver dividend program, a dividend program unlike any other known program offered of its kind."
The program powered by Gold Bullion International's operational and technology platform will allow shareholders to fully manage their cash dividend conversions into gold, silver, or a desired percentage of each metal. After conversion into a physical metal dividend, shareholders may elect to store their physical within GBI's fully insured and audited storage facilities (for a nominal fee), take direct delivery of their precious metals, or direct the shipping of the metals to a vault of their choice.
For shareholders with monthly dividends totaling less than one ounce of silver or gold, the program will allow the shareholder's cash dividends to accrue until such time their account balance allows for conversion into one ounce denominations of silver and/or gold based on the investor's set allocation. For larger shareholders the accounts will allow percentage allocation between gold and silver or a focus on either.
The conversion date and price will be set at the London PM Fix on the Company's Record Date of dividend distribution (Record Dates are noted in each press release regarding dividend distribution). The shareholder must direct their individual bullion account for desired gold and silver allocation by midnight EST the day before the Record Date. Once the cash to physical conversion takes place, shareholder directed bullion accounts distribute the gold and silver on the dividend Pay Date (Pay Dates are noted in each press release regarding dividend distribution).
Shareholders interested in participating will be required to hold their shares directly with the Company's transfer agent, Computershare. This may entail moving shares from a brokerage account to Computershare by the Direct Registration System (DRS). After a DRS transfer is made and the shareholder's stock is registered with Computershare, they will be eligible to open an on-line Gold Resource Corporation "individual bullion" account with GBI. These steps will allow shareholder and position size verification. This verification will be required to participate in the Company's gold and silver dividend program. Shareholders will manage their own on-line "individual bullion" account and may opt-out at any time. Those choosing not to participate will continue to receive cash dividends as usual.
The gold and silver dividend program is not targeted as a revenue stream for the Company. Only the basic costs associated with owning physical metals which include minting, storage, shipping and handling are targeted to be passed to the shareholder. By offering cash to precious metal conversion at the London PM Fix, without adding a premium above the Company's own minting cost, the Company strives to offer its shareholders a competitive and attractive option for direct physical gold and silver ownership.
Mr. Reid stated, "Gold Resource Corporation provides premier precious metal exposure with an aggressive production growth profile of low cost ounces, growing cash and physical precious metal treasury, high-grade exploration prospects, distribution of a monthly dividend and in April 2012 another major milestone for the Company is being set as we prepare to launch the option for shareholders to receive gold and silver dividends."
Mr. Reid continued, "Gold Bullion International and Gold Resource Corporation are on the verge of a groundbreaking and monumental shift in how mining Companies may distribute dividends to their shareholders in gold and silver."
For additional details on Gold Resource Corporation's gold and silver dividend program, please visit the Program specific page on the Company's website at http://www.goldresourcecorp.com/gold-silver-dividends.php .
Click to expand...
http://www.marketwatch.com/story/go...to-launch-gold-and-silver-dividend-2012-03-12

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Update: now it's up nearly 9%
Volume after just 40 minutes of trading is already above average daily volume during the last 3 months
 
Last edited:
When the PPT removes the boot, the prisoner takes a breath.
 
Holiday weekend approaches. Good time to hammer markets with thin trading volumes. Exercise caution.
 
Looks like somebody made a huge buy yesterday:

Volume yesterday:
510,637

Avg Vol (3m):
144,078

Despite the weakness in gold, there has been no significant selling during the days before.

14t6m1s.png
 
Now we know why they shot up more than 9% last week:
Gold Resource Corp posts record production in Q1, up 53% sequentiallyGold Resource Corp (AMEX:GORO) said Monday it has acheived record level production in the first quarter, up 53 percent from the previous three month period.
For the quarter that ended March 31, 2012, the gold producer made around 30,500 ounces of precious metal gold equivalent, an increase of 308 percent from the first quarter of 2011.
This was achieved with an 825 tonne per day average throughput, with increased long-hole stoping.
The US-based gold producer, which started production from its El Aguila project in Oaxaca, Mexico in July 2010, has paid 20 straight monthly dividends since declaring commercial production, totaling more than $43 million returned to shareholders.
The company also launched a gold and silver dividend program last month, which gives shareholders the option to convert their cash dividends into physical gold or silver.
Gold Resource Corp said its first quarter output is in line with its 2012 outlook for annual production of between 120,000 to 140,000 ounces of gold equivalent.
“We are pleased with the record production increase and will release the full financial results for the first quarter at the time we file our quarterly report on Form 10-Q with the Securities and Exchange Commission," said president Jason Reid in a statement Monday.
“The El Aguila Project and the hard work of its team members continue to impress management each month. First quarter record production sets a firm base from which to continue our growth trajectory of producing more low cost ounces.”
In March, Gold Resource Corp reported record annual results, with 2011 marking its first full year of production from its El Aguila operations in Mexico.
The gold company posted net income of $58.37 million, or $1.10 per share in the year to December 31, 2011, versus a loss of $23.07 million, or 46 cents per share in 2010.
El Aguila is located 120 kilometres southeast of the state capital city of Oaxaca, Mexico and has yielded several strong metal samples, including 36.0 grams per tonne (g/t) gold, and 3,100 g/t silver.
Last March, the company announced that it had begun the transition from processing lower grade, open pit ore, to processing underground ore from the high grade La Arista deposit at El Aguila.
Combined open pit and underground operations in 2011 yielded 66,159 ounces of gold equivalent production. This compares to the 10,493 gold equivalent ounces produced from the six months of open pit El Aguila operations in 2010.
As underground development continues, Gold Resource management said on a conference call in early March that it expects to mine more efficiently with greater tonnages and less dilution.
Cash costs in 2011 were $136 per ounce of gold equivalent, excluding royalty expense, 37 percent lower than $217 per ounce in the six month period in 2010.
This led to record annual revenue of more than $105 million in 2011 as the company realized much higher gold and silver prices for its combined operations of $1,596 per gold ounce, and $35 per silver ounce. Revenues in 2010 stood at $14.75 million.
The company's gross profit from the mine came in at $87.2 million, way up from $9.8 million the prior year.
Click to expand...
http://www.proactiveinvestors.com.a...roduction-in-q1-up-53-sequentially-27420.html
 
Anyone buying GORO? I've been pondering buying a bit. Any advice would be appreciated.
 
I've bought them back in November 2011 when I opened this thread.
As I said on 5-17, there WAS a buying opportunity 2 weeks ago. GORO shot up from 21 to 26 since then. On friday, something quite interesting happened. Despite the huge 4% spike in gold and the massive short squeeze in the miners, including the giants, GORO fell 2.75% against the trend. This means that there was no significant short covering and no strong buying by new longs going on. I would be hesitant to buy the stock right now therefore. Maybe wait a few days to see where the next move goes.
 
Goro is down 25% today on 15% lower guidance :flushed:
Might be a buying op. But I'd wait a few days...
 
David Morgan's silver investor newsletter is recomending GORO as of today.
Their calculations indicate a massive undervaluation of the stock.
My gut feeling is that they had it on watch for a while now and took the recent 25% raid as an opportunity to step in.
 
A class action lawsuit against GORO has been launched for misleading investors :paperbag: :

Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Gold Resource Corporation
Press Release: Robbins Geller Rudman & Dowd LLP
NEW YORK--(BUSINESS WIRE)--

Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/goldresource/) today announced that a class action has been commenced in the United States District Court for the District of Colorado on behalf of purchasers of Gold Resource Corporation (“Gold Resource” or the “Company”) (GORO) common stock during the period between January 30, 2012 and October 17, 2012 (the “Class Period”).

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/goldresource/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges Gold Resource and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Company, based in Colorado Springs, Colorado, mines, mills and produces metal concentrates that contain gold, silver, copper, lead and zinc at its El Aguila mining project in the southern state of Oaxaca, Mexico.

The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company’s operational status and financial projections. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (a) that overly aggressive expansion of Gold Resource’s underground mining operations in the first quarter of 2012 had created operational difficulties in the mine, which were lowering mine production; (b) that Gold Resource was mining in lower grade zones of the deposit; (c) that significant operational efficiency improvements were required at the mine, including the need to upgrade electric power throughout the mine, expand ventilation and handle increased ground water the deeper the mine went, which limited the Company’s ability to mine higher grade stopes; (d) that decreases in long-hole stoping were forcing the Company to process more diluted development ore and mine from areas of the deposit with lower metal grades; (e) that as a result of the foregoing, tonnes from stoping, as a percentage of milled ore, had decreased from an estimated year-to-date high of 55% during the first quarter of 2012 to an estimated year-to-date low of 15% during the second quarter of 2012; and (f) that during the third quarter of 2012, a dispute had arisen between the Company and the buyer of its metal concentrates, with the buyer claiming net adjustments (reductions) to the Company’s provisional third quarter 2012 invoices.

On July 19, 2012, Gold Resource announced preliminary production results for the second quarter ended June 30, 2012, stating that the Company’s second quarter production was lower than expected and the Company was dramatically slashing guidance for fiscal years 2012 and 2013. In response to these revelations, shares of the Company’s common stock fell from its July 19, 2012 closing price of $24.99 per share to $17.34 per share.

Then, on October 17, 2012, Gold Resource again shocked the market announcing preliminary production results for the third quarter ended September 30, 2012, reporting additional reasons for the Company’s now lower than expected third quarter 2012 results, including, but not limited to, a dispute with the buyer of the Company’s metal concentrates resulting in the buyer claiming net adjustments (reductions) to Gold Resources’ invoices. In response to the October 17, 2012 press release, the Company’s common stock fell from its October 17, 2012 closing price of $20.15 per share to $18.01 per share on October 18, 2012, on extremely high volume.

Plaintiff seeks to recover damages on behalf of all purchasers of Gold Resource common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries and has been ranked number one in the number of shareholder class action recoveries in MSCI’s Top SCAS 50 every year since 2003. According to Cornerstone Research, the firm’s recoveries have averaged 35% above the median for all firms over the past seven years (2005-2011). Please visit http://www.rgrdlaw.com for more information.

Contact:
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman / David A. Rosenfeld
800-449-4900
djr@rgrdlaw.com
Click to expand...
http://finance.yahoo.com/news/robbi...RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3
 
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