Gogold Resources Stock Price, News & Analysis

GoGold Resources Inc. (OTCQX: GLGDF) is a Canadian-based silver and gold producer with a focus on projects in Mexico. The company is described in multiple news releases as being engaged in operating, developing, exploring and acquiring high quality silver and gold projects. GoGold trades on the OTCQX market under the symbol GLGDF and on the Toronto Stock Exchange under the symbol GGD.

According to the company’s disclosures, GoGold operates the Parral Tailings mine in the state of Chihuahua, Mexico. This operation reprocesses tailings material to produce silver equivalent ounces that include contributions from silver, gold, copper and zinc. The company reports production and revenue from this operation in its financial results, and refers to Parral as an important source of cash flow that supports its broader project portfolio.

In addition to its producing operation, GoGold holds the Los Ricos South and Los Ricos North projects in the state of Jalisco, Mexico. These are described as exploration and development projects, and the company regularly reports drilling results, resource-related work and feasibility study activities at Los Ricos South, as well as step-out and near-mine drilling at Los Ricos North and surrounding zones. The company notes that it is building a portfolio of low cost, high margin projects, with Los Ricos presented as a key area of focus.

GoGold states that it is headquartered in Halifax, Nova Scotia. Its public communications emphasize a strategy centered on silver and gold production, project development and exploration in Mexico, supported by financing activities such as bought deal equity offerings. The company also highlights the use of non-GAAP performance measures such as adjusted cash costs per ounce and adjusted all-in sustaining costs per ounce in its analysis of mine performance, while cautioning that these measures do not have standardized meanings under IFRS.

Technical information in the company’s news releases related to its projects, including Parral and Los Ricos, is described as being reviewed and approved by qualified persons under National Instrument 43-101. GoGold’s continuous disclosure materials, including financial statements, management’s discussion and analysis, and an annual information form, are filed on SEDAR or SEDAR+ as referenced in its news releases.

Business focus and operations

GoGold’s business, as described in its public news releases, combines a producing asset with advanced exploration and development projects. The Parral Tailings mine generates silver equivalent production and revenue, and the company reports operating income, net income and cash flow from operations associated with this asset. Parral’s output includes silver, gold, copper and zinc, which are converted into silver equivalent ounces using metal price ratios disclosed in the company’s production tables.

The Los Ricos South project is described as a silver-gold project where GoGold has carried out feasibility study work, resource estimation and extensive drilling, including near-mine and geotechnical programs in zones such as Eagle, Abra (Main), South Abra, Los Lamas and Cerro Colorado. The company reports assay results, drill hole locations and geophysical survey information, and notes that certain drill holes were not included in initial mineral resource estimates or updated mineral resource estimates as of specific dates referenced in its releases.

The Los Ricos North project is also referenced as an exploration and development project in Jalisco. GoGold indicates that capital from operations and financings provides flexibility to advance Los Ricos North while it progresses Los Ricos South toward execution of mine plans, subject to permitting and other factors described in its forward-looking statements.

Project locations

• Parral Tailings mine: Located in the state of Chihuahua, Mexico. The company reports quarterly and annual production from this operation, including silver equivalent ounces and underlying metal outputs.
• Los Ricos South project: A silver-gold project located in the state of Jalisco, Mexico. GoGold reports drilling, feasibility study work, mineral resource estimates and geotechnical programs in this area.
• Los Ricos North project: An exploration and development project also located in the state of Jalisco, Mexico, referenced alongside Los Ricos South in the company’s description of its project pipeline.

Financial reporting and performance metrics

GoGold’s news releases present summarized consolidated financial information prepared under IFRS, including revenue, cost of sales, operating income, net income, and cash flow from operations. The company also discloses cash balances and other financial metrics at various reporting dates. It emphasizes that certain performance indicators such as adjusted cash costs per ounce and adjusted all-in sustaining costs per ounce are non-GAAP measures used by mining companies to assess gross margin and cash flow generation potential. These measures are calculated by allocating mining and processing costs, exploration, corporate and administrative expenses, share-based compensation and sustaining capital costs across ounces sold, as described in its cautionary sections.

GoGold notes that non-GAAP measures do not have standardized meanings under IFRS and may not be comparable to similar measures used by other companies. It refers readers to its management’s discussion and analysis documents for reconciliations between GAAP and non-GAAP measures and for additional detail on its financial performance.

Exploration and technical work

The company provides detailed technical information on its exploration programs, particularly at Los Ricos South. This includes:

• Assay results from diamond drill holes, with intervals, grades and calculated silver equivalent values.
• Descriptions of zones such as the Eagle Zone, Abra Zone, South Abra Zone, Cerro Colorado and Los Lamas, and commentary on mineralization encountered in these areas.
• Use of induced polarization (IP) geophysical surveys to extend coverage and identify prospective structures along strike.
• Geotechnical drilling programs designed to support open pit and underground mine planning, with holes drilled across zones, in hanging wall or footwall rock, or along veins.
• Quality assurance and quality control procedures, including sample preparation, assay methods, and insertion of standards, blanks and duplicates.

Technical disclosures specify that silver equivalent values are based on stated gold-to-silver and other metal price ratios and assume 100% metal recoveries for the purpose of those calculations. The company also notes that certain drill holes were excluded from resource estimates or results tables for reasons such as being drilled along the vein for geotechnical purposes or not intercepting material mineralization.

Corporate and capital markets context

GoGold’s releases describe its participation in investment conferences and its use of equity financings to support project development. For example, the company reports closing a bought deal offering of units that included common shares and common share purchase warrants, with net proceeds earmarked for exploration and development of the Los Ricos projects and for general corporate purposes. It also highlights attendance and presentations at the New Orleans Investment Conference, an event focused on asset classes including metals and mining.

The company’s securities are subject to securities law considerations in Canada and the United States, and its releases contain cautionary statements regarding the offering and sale of securities, as well as extensive forward-looking information disclaimers. These sections outline risks related to exploration and development, commodity price volatility, mineral resource and reserve estimation, recovery rates, economic conditions and other factors that could cause actual results to differ from expectations.

Risk and disclosure framework

GoGold refers readers to its Annual Information Form and other continuous disclosure materials filed with securities regulators for detailed risk factor discussions. Its news releases emphasize that forward-looking information is based on assumptions that may prove to be incorrect and that there can be no assurance that projected outcomes, including project development timelines, production levels or economic results, will be realized. The company positions its non-GAAP measures as supplementary indicators and cautions that they should not be considered in isolation from IFRS measures.

FAQs about GoGold Resources Inc. (GLGDF)

• What does GoGold Resources Inc. do?
  

  GoGold Resources Inc. is a Canadian-based silver and gold producer focused on operating, developing, exploring and acquiring projects in Mexico. The company operates the Parral Tailings mine in Chihuahua and holds the Los Ricos South and Los Ricos North projects in Jalisco.

• Where are GoGold’s main projects located?
  

  According to the company’s public disclosures, GoGold operates the Parral Tailings mine in the state of Chihuahua, Mexico, and has the Los Ricos South and Los Ricos North exploration and development projects in the state of Jalisco, Mexico.

• What is the Parral Tailings mine?
  

  The Parral Tailings mine is a project in Chihuahua, Mexico, where GoGold reprocesses tailings material to produce silver equivalent ounces. The company reports production of silver, gold, copper and zinc from Parral and converts these metals into silver equivalent ounces using disclosed metal price ratios.

• What are the Los Ricos South and Los Ricos North projects?
  

  Los Ricos South and Los Ricos North are silver-gold exploration and development projects in Jalisco, Mexico. GoGold reports drilling, feasibility study work, mineral resource estimates and geotechnical programs at Los Ricos South, and refers to both South and North as key projects in its portfolio.

• Where is GoGold Resources headquartered?
  

  The company states that it is headquartered in Halifax, Nova Scotia, Canada. This is noted in multiple news releases describing the company and its projects.

• On which exchanges does GoGold trade?
  

  GoGold Resources Inc. is listed on the Toronto Stock Exchange under the symbol GGD and its shares trade on the OTCQX market in the United States under the symbol GLGDF.

• How does GoGold describe its project strategy?
  

  GoGold describes its strategy as focusing on operating, developing, exploring and acquiring high quality silver and gold projects in Mexico, and refers to building a portfolio of low cost, high margin projects that includes its producing Parral Tailings mine and the Los Ricos projects.

• What performance metrics does GoGold use in its reporting?
  

  In addition to IFRS measures such as revenue, operating income and net income, GoGold uses non-GAAP measures including adjusted cash costs per ounce and adjusted all-in sustaining costs per ounce. The company explains that these metrics are used to assess mine performance and cash flow generation but do not have standardized meanings under IFRS.

• Who reviews GoGold’s technical information?
  

  The company’s news releases state that technical information related to its projects, such as Parral and Los Ricos, is reviewed and approved by qualified persons under National Instrument 43-101, including individuals identified as professional engineers.

• What risks does GoGold highlight in its disclosures?
  

  GoGold’s forward-looking information sections cite risks such as exploration and development risks, the failure to establish estimated mineral resources or mineral reserves, volatility of commodity prices, variations in recovery rates and global economic conditions. The company refers readers to its Annual Information Form and other filings for a full discussion of risk factors.