Gold Resource Corp (NYSEMKT:GORO)

Fiat currency vs. Au, go with the later.

Worst looking charts in years, got it's first ever downgrade from an analyst last October, and insider trade negative as well.

I'm All In.

Gold will return. This is the time we'll look back and say we should have stuck with gold when the going got tough. The sector is off huge in the last 12 months.

Collective easing and/or another crisis will push gold.

Price Target: $19

Solid company many drilling and exploration with positive results paying a 5.4% yield trading near its low showing support

With each quarter the warts get exposed. Going lower.

Down on misinterpretation of news should bounce back to 20+ after earnings in 1 month with target of 30

The key to this company is using base metals (copper, zinc, etc.) to cover the cost of mining, to essentially bring the cost of gold to zero. They have five properties with one in production, and others set to, so they can maintain the material "funnel" to keep increasing gold equivelent output. Another key is that gold price can drop 25% and the company can stay profitable.

It seems that it is a fraud, for the less the principal mining activity is not gold, as declared, but silver, and it seems that the management has a dubious past with a bankrupcy in the previous company they were managing.

The past few years have reminded me of the 90’s tech bubble. It seems that if you just put the word “gold” in your company name the stock is automatically worth a thousand times its fair value. This is the same trick used in the 90’s where all you had to do was put “dot com” in the company name and the stock price would shoot up to some ridiculous valuation. I was also very surprised to see that this company pays a dividend. Since this is still an exploration stage company and has obviously never been profitable, then why in the world would they pay a dividend? This is pretty much a legal Ponzi-scheme where the company uses the investors own money to pay them with. This is an awful company that doesn’t deserve to exist; I truly cannot understand why anyone would invest in this trash stock.

I am a civil engineer with an MBA from a top UK business school. I have been investing in gold since 2003, when I first bought the metal. Over the years I have research the market thoroughly and have met and discussed development with many board directors of several metals mining companies. By far the ones that have impressed me the most were the Reid team at Gold Resource Corp (GORO). As a consequence, I have had a large holding in this stock for over three years and obviously follow them very closely. As a management team they have done what they said they would do. They are qualified geologists and mining engineers who have put many successful mines into production. Now, with their own seed corn money, they are developing a gold/silver mining company that is leading the market in providing returns to their investors that is second to none. Many outsides don't understand the gold mining business and many of the accountant and PR types running other minerals companies would prefer the Ried's to conform to their lower standards rather than set such a high benchmark. The other miners are beginning to change in offering a dividend however they are still floundering in the wake of GORO's rate of return and genuine growth prospects. Having set out a clear strategy of "Focus on Cashflow and Dividends", the Reid's have no need to change.

I'm looking for GORO to fly in the first few weeks of January with a sustained continuous move up throughout 2012-13.

Regards

Gary Mellon
London, England.
27 Dec 2011

Just paid a dividend, though it doesn't show on Fool stats on Ticker page.

One of the best miners witht he best cash flow. They did not waist money proving up their resources which would have deluted thier capital structure. Have a tight capital structure and excellent management team focused on bringing the highest ash flow to the shareholder.

I bought into this 3 years ago. If i had paid attention to this groupe of investors a pile of money lost. The majority has stated underpreform for months, why, it is the only one of several I am following that has made a respectable move and made any profitable gains.........P

Production and dividend have begun. Looks to be very shareholder friendly. Use only limit orders and watch the spread.

How the hell does a company with 4 employees become worth more than 600 million dollars? How the hell do 4 guys even search for gold and silver? How the hell has this stock continued to go up despite losing money. This babies dropping at least 50%.

I've been holding this for over a year and despite the steep climb it still has room to run based on the resources (reserves in practice if not yet legally for dumb Forbes reporters) it has and not counting further exploration upside in this NAFTA country. I must say I get a smile from reading the comments of those who know nothing on how to value mining stocks but here's a free clue: NAV.