"The new property Chamizo, located between Alta Gracia and El Rey, is a major increase to our land holdings along what we believe is a highly mineralized corridor.” “After much work and patience, we have methodically consolidated a dominant land position now connecting five properties on what we believe will become one of the most important mineralized structural corridors in southern Mexico,” said president Jason Reid. Gold Resource said it also staked a 2,000 hectare claim on the southeast end of the corridor, which increases the size of the Aguila project, home to the large, high grade La Arista polymetallic deposit. The company's Oaxaca mining unit now contains the El Aguila, El Rey, Alta Gracia, Las Margaritas, El Chamizo and Solaga properties. With this new acquisition, Gold Resource Corp has a 100% interest in 60,998 hectares in Oaxaca, Mexico. The property consists of several new claims the company staked, including El Chamizo, which consists of 26,386 hectares connecting its Alta Gracia property to the El Rey asset - effectively consolidating 48 kilometers along strike of the north 70 west regional structural corridor, it said.
Thank you for reading.Gold Resource Corp ( AMEX:GORO) said Monday that it has added a sixth potential high grade asset to its Oaxaca, Mexico holdings. Simply Wall St has no position in the stocks mentioned. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. If you spot an error that warrants correction, please contact the editor at This article by Simply Wall St is general in nature. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. We aim to bring you long-term focused research analysis driven by fundamental data.
Here is a free list of companies growing earnings rapidly.įor those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket. Gold Resource looks strong on this analysis, but there are plenty of other companies that could be a good opportunity. This is good to see, and with a sound ROCE, Gold Resource could be worth a closer look. What We Can Learn From Gold Resource's ROCE A fairly low level of current liabilities is not influencing the ROCE too much. Therefore its current liabilities are equivalent to approximately 12% of its total assets. Gold Resource has total assets of US$150m and current liabilities of US$18m. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets. Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. Story continues What Are Current Liabilities, And How Do They Affect Gold Resource's ROCE?Ĭurrent liabilities are short term bills and invoices that need to be paid in 12 months or less. Renowned investment researcher Michael Mauboussin has suggested that a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. Overall, it is a valuable metric that has its flaws.
Generally speaking a higher ROCE is better. ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Understanding Return On Capital Employed (ROCE) Last but not least, we'll look at what impact its current liabilities have on its ROCE. Next, we'll compare it to others in its industry.
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business.įirst of all, we'll work out how to calculate ROCE. Today we'll evaluate Gold Resource Corporation ( NYSEMKT:GORO) to determine whether it could have potential as an investment idea. Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!