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Gold Resource Corp Message Board

  • matt.berry01 matt.berry01 Jun 17, 2011 12:53 PM Flag

    What's the long case for GORO?

    I don't get it.

    In GORO's own words, as filed with the SEC:
    "Our existing production is limited to a single property and our ability to become and remain profitable over the long term will depend on our ability to identify, explore and develop additional properties. Gold and silver properties are wasting assets. They eventually become depleted or uneconomical to continue mining. We do not anticipate that production from our El Aguila open pit mine will extend beyond approximately 12 months from the commencement of commercial production. Accordingly, our ability to become and remain profitable over the long term depends on our ability to finalize development of the La Arista underground vein and produce mineralization from that mine and/or identify and successfully develop one or more additional properties. The acquisition of gold and silver properties and their exploration and development are subject to intense competition. Companies with greater financial resources, larger staff, more experience and more equipment for exploration and development may be in a better position than us to compete for such mineral properties. If we are unable to find, develop, and economically mine new properties, we most likely will not be profitable on a long term basis and the price of our common stock may suffer."
    http://sec.gov/Archives/edgar/data/1160791/000107997311000188/goro_10k.htm

    For $22 a share? I don't see anything here. I am short Goro.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Well the huge expansion in acreage sure helped. JMHO

    • I am bullish on the price of gold, bearish on GORO. So what if gold has doubled...GORO doesn't have the ounces to capitalize on that.

    • Thanks, HOW_BOUT.

      My entry into CHBT had lots of ups and downs too. I think CHBT went up 20%+ right after my entry. But if I've got it right, it doesn't really matter that much what happens between the entry and an exit at .25 cents (as long as I stay solvent in the meantime and it doesn't take 5 years).

      I'm just getting started on GORO but am looking at some others too. Next week I'll have more time to drill down and pick one of these bad ideas to focus on.

    • What makes you think that absence of a NI43-101 means absence of minable gold/silver in the ground?

      The SEC requires mining companies to produce NI43-101 (or equivalent) paperwork if they are going to talk about "reserves" or "resources" or "measured" or "indicated" or "inferred". But that paperwork doesn't actually create any ore in the ground. It merely changes mental certainty/comfort levels. Oh - and the cost of producing it (tens of millions of dollars) dilutes shareholders in mining companies.

      If you can grasp why GORO chose to build the processing facilities instead of "building" some paperwork - then you'll understand one reason why I am long.

      The other two reasons I am long are derivative -- and named Hochschild and Tocqueville Gold Fund. Basically, re them I am very confident that they know more about assessing gold mining than institutional shorts do.

      • 2 Replies to yibberat
      • yibberat
        "What makes you think that absence of a NI43-101 means absence of minable gold/silver in the ground?"

        This is not my fallacy. This is your straw man. Never said that.

        RE: debating GORO. I simply quoted GORO's 10-K: "We do not anticipate that production from our El Aguila open pit mine will extend beyond approximately 12 months from the commencement of commercial production."

        Do you dispute GORO here? If you do not, what is your point?

        "I am very confident that they know more about assessing gold
        mining than institutional shorts do."

        Who is "they"? GORO? Again, from GORO's SEC filing: "We do not anticipate that production from our El Aguila open pit mine will extend beyond approximately 12 months from the commencement of commercial production."

        Do you trust GORO?

      • yibberat,

        the Reid's are explorers not miners. they don't have the technical expertise to run the mine and the earnings releases prove it. funding exploration thru mining sounds like a great idea but rarely works as intended.

        but what troubles me is your investing logic. you say that Hochschild and Tocqueville Gold Fund own GORO, therefore you bought it. I guess you discounted Rob McEwen's nasty comments about Hochschild. I think Rob McEwen knows more about gold than Hochshild, right? And big deal if Tocqueville Gold Fund owns a gold stock (GORO). That is what they are supposed to do!

        Funny how you folks only show up on green days. I suspect you folks won't be around after the next earnings release.

    • Matt, congratulations on your CHBT sleuthing... persistence, time and truth often produce good results.....

      you sniffing something amiss here?? sure you're timing wasn't perfect on the entry, but up here at $27 plus???

    • So what makes you think they are not pursuing these options to acquire more properties? Did you see that they are meeting with RBC, could this mean they may be looking for funding to expand their current operations or to acquire more properties?
      And, of course, all you bashers are short GORO.
      BTW are you the lunch break basher that takes over for Freedomis69 ans Revere when they go out to Taco Bell for chimichangas?

      • 4 Replies to rapier40
      • The chimichangas were delicious.

      • "what makes you think they are not pursuing these options to acquire more properties?"

        I believe they are pursuing other properties. The next mountain is integral to the GORO story.

        http://moneycentral.msn.com/investor/invsub/insider/trans.asp?symbol=US%3aGORO

        RECENT INSIDER TRADING ACTIVITY: GOLD RESOURCE CORPDate Name Transaction Num Shares Price(s) Value
        05/19/11 REID JASON D Sold 25,000 $28.47 711,625.00
        05/19/11 REID DAVID CHARLES Sold 27,000 $28.38 766,125.00
        05/17/11 REID DAVID CHARLES Sold 20,440 $27.63 564,655.00
        05/13/11 REID DAVID CHARLES Sold 14,261 $27.00 385,047.00
        05/11/11 REID DAVID CHARLES Sold 4,000 $27.00 108,000.00
        04/21/11 CONRAD BILL M Gift 660 NA NA
        04/20/11 CONRAD BILL M Sold 2,500 $30.10 75,250.00
        04/18/11 REID DAVID CHARLES Sold 31,000 $28.67 888,615.00
        04/14/11 REID DAVID CHARLES Sold 24,500 $27.10 663,950.00
        01/21/11 CONRAD BILL M Sold 12,500 $25.23 315,312.50
        12/13/10 REID DAVID CHARLES Sold 30,155 $26.87 810,264.88
        12/13/10 REID WILLIAM WALTER Sold 4,331 $27.95 121,051.45
        12/10/10 REID WILLIAM WALTER Sold 51,000 $26.98 1.38 Mil
        12/09/10 REID WILLIAM WALTER Sold 43,000 $26.00 1.12 Mil
        12/08/10 REID DAVID CHARLES Sold 18,745 $26.15 490,088.03
        12/07/10 REID WILLIAM WALTER Sold 22,000 $26.45 581,900.00
        12/07/10 REID WILLIAM WALTER* Sold 22,000 $26.45 581,900.00
        12/03/10 REID DAVID CHARLES Sold 31,100 $26.13 812,487.50
        11/30/10 REID DAVID CHARLES Sold 27,762 $25.47 706,959.31

      • Point is, this is an exploration stage company trading at a price worthy of a company with a stable revenue stream. Flipping a coin on the NEXT mountain should have better odds ... if you're going to make a smart long investment. If you concentrate on flipping the ODDS in your favor, instead of trying to guess which side of the coin is better, "heads" or "tails" ... or (loading the question against yourself) "Gold" or "lost dreams"?, you'll understand my short position.



        "BTW are you the lunch break basher that takes over for Freedomis69 ans Revere when they go out to Taco Bell for chimichangas?"

        RE: your speculation. I just got here. I use my real name. I short delusions, based upon the facts. Goro has presented its own case. Why should I dispute it? Why should you?

 
GORO
5.79-0.01(-0.17%)Sep 17 4:00 PMEDT

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