This article is about Gold Resource Corp. (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...