In a new note to investors today, an analyst has provided a rating update for the Materials sector company, GoGold Resources (GGD). Analyst Heiko Ihle from H.C. Wainwright remains bullish on the stock and has a C$0.90 price target.
Ihle noted:
“We essentially maintain our FY19 estimates of 1.7 million tonnes of ore at an average silver grade of 33 grams per tonne (g/t) for total of 2.14 million silver equivalent ounces. We note this figure is above the 2Q19 runrate of 1.70 million silver equivalent ounces. Increased tonnage drives stronger production. The primary reason for the strong performance during the quarter was attributable to GoGold placing 478,874 tonnes of ore on the heap leach pad. This figure represents a 35% increase compared to 1Q19, and is also 9% higher than 2Q18. To maintain strong recoveries, the company continues to focus on quality agglomeration. We expect GoGold to build on its impressive growth during the year which is likely to drive another record year of production. We note that record production during FY18 was the result of stacking a second lift on the leach pad during 2Q18.”
According to TipRanks.com, Ihle is ranked 0 out of 5 stars with an average return of -2.7% and a 44.2% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Solitario Exploration & Royalty, Golden Star Resources Ltd, and Northern Dynasty Minerals.
Currently, the analyst consensus on GoGold Resources is a Moderate Buy with an average price target of C$0.90.
GoGold Resources’ market cap is currently C$53.25M and has a P/E ratio of 0. The company has a Price to Book ratio of 0.59.
Gogold Resources, Inc. engages in the exploration, development, and production of gold and silver. Its projects include Parral Tailings and Santa Gertrudis. The company was founded on January 18, 2008 and is headquartered in Halifax, Canada.
The company’s shares closed on Thursday at C$0.31.
