New update at www.goldsilverdata.comGoGold Resources has potential, but they will need to find a second mine. This is currently a silver mining company, but that could change with an acquisition. They will begin producing 1.8 million oz of silver in 2014 at projected all-in costs of $9 per oz. The Parral tailing project has 35 million oz silver equivalent (including gold). The capex was only $35 million, so it is a very economic mine. The cash flow from Parral will likely lead to an acquisition if silver prices increase. At $50 silver, they will have $35 x 1,800,000 = $63 million in annual cash flow.
GoGold is not cheap with a FD market cap of $137 million. Unless they find a second mine, this stock is not going to explode in value. But they do have an excellent management team who is quite capable of growing the company.
They have a second large property (175,000 acres) in the Sierra Madre belt in Mexico, called San Diego. They have just begun drilling and have two significant discoveries. Both the Breccia Hill deposit and Chispa deposit have returned promising drill results. It looks very likely they are going to find a second mine. They have $20 million in cash for exploration, so they won’t run out of cash anytime soon.