Ben Kramer-Miller
Gold & precious metals, macro, research analyst, deep value

Why I Am Avoiding Gold Resource Corp.

This article is about Gold Resource Corp. (NYSEMKT:GORO), which is a gold and silver mining company operating in Mexico.

1: About Gold Resource Corp.

Gold Resource Corp. has market capitalization of around $400 million. The company owns properties in the Oaxaca region in Mexico, where it operates its high grade/low cost gold and silver mine--El Aguila. It is highly profitable and committed to returning capital to shareholders through its monthly dividend, which comes out to a 5% annual yield.

A major problem with Gold Resource Corp. as a long-term investment is that the company is mining the high-grade areas of El Aguila first and using a significant portion of the profits to pay dividends; however based upon current...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details