Gold Resource Corp GORO

Metals & Mining Gold

Gold Resource Corporation is a gold and silver producer, developer, and explorer with its operations centered on the Don David Gold Mine in Oaxaca, Mexico. The Company is focused on its existing infrastructure and large land position surrounding the mine in Oaxaca, Mexico, and to develop the Back Forty Project in Michigan, United States. Its Back Forty Project has a polymetallic (gold, silver, copper, lead, and zinc) Volcanogenic Massive Sulfide deposit. At its Don David Gold Mine, it has 100% interest in six properties, including two production stage properties and four exploration stage properties, located in Oaxaca, Mexico, along the San Jose structural corridor. Its properties span 55 continuous kilometers of this structural corridor. Its two production stage properties include Arista and Alta Gracia Mines. Its four exploration properties include Margaritas Property, Chamizo Property, Fuego Property and Rey Property. The Fuego property consists of approximately 2,554 hectares.

NYSEAM:GORO - Post by User

Gold Resource Corp

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Comment by watchout34on Oct 03, 2011 10:35am

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Post# 19111221

RE: Equal Time for the Short Seller Point of View

I just read the article. I just don't get it. The promoter (Ian Cassel) they are writing about, used a Formula to calculate Goro's share price. According to this formula Goro is ridiculously overpriced, at least that is what the author writes. Based on the formula a possible share price for the first year of production of $22 is calculated. Ian estimates a production of about 85.000 ounces and uses $1000 price for gold and $17 for silver. But if I use the current production estimate of 70.000 ounces and the current gold and silver prices, I get a fair price of $31 per share using the same formula. The current $17 doesn't look expensive certainly if you consider higher production figures the coming years.

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