On July 13, GoGold Resources (TSX: GGD) announced their second quarter production results. The company said it produced 213,495 silver ounces, 3,081 gold ounces, and 98 tonnes of copper for a silver equivalent production total of 509,796 ounces.

Brad Langille, the company’s CEO and President, said “Parral production continues to trend higher to normal rates and continues to provide meaningful cash flow contributing to the general and administrative costs and the Los Ricos exploration expenditures.”

There are currently 5 analysts covering GoGold with an average 12-month price target of C$4.15, or an upside of 140%. Out of the 5 analysts, 1 has a strong buy rating while the other 4 analysts have buy ratings. The street high price target sits at C$5.05, which represents an upside of 190%.

In BMO Capital Markets’ note on the production results, they reiterate their outperform rating but lower their 12-month price target on the stock to C$3.50 from C$4.10.

On the production results, BMO said that they generally came in line with their estimate of 501,000 silver equivalent ounces. With them expecting 224,000 ounces of silver produced, 2,700 ounces of gold, and 124 tonnes of copper. They note that this is the best production results out of GoGold for the last 2 quarters.

BMO believes that the mine will produce $3 million in free cash flow, up from $2.8 million previously. They add that the main reason for the price cut is due to the market, with GoGold’s share price declining almost 50% in the last 3 months.

Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.