I own GORO. It's only indirectly related to McEwen, though, if at all. Run by Bill and Dave Reid, who sold US Gold to McEwen. High inside ownership, about 1/3, institutions 1/3, retail 1/3. After an upcoming financing, fully diluted will be 35 Million shares. And they hope to never have to dilute beyond that 35 Million. Scoping study suggested $100 cash cost/oz. Will produce in Mexico open pit, mostly gold and silver, may be some base metals. Plan 70,000 ozs. 1st full year, then 90,000 ozs, and 100,000 ozs in 3rd year (AU equivalent). While producing, will drill and expand their resource they haven't proven up more than 3 years worth, thus far. But it's clear, the gold and silver is there. They wouldn't get financed if the financiers thought there was only 3 years worth there.
Also will shell out 25%-33% earnings as dividends.
Production to begin mid-2008. Expect capex paid off in no more than 6 months.
It's a little bugger, but sweet. |
