GoGold the undercover silver miner

GoGold is a silver miner cosplaying as a gold miner, especially at $90/oz silver. Here’s the breakdown: The Los Ricos mines have 115 million ounces of payable silver (47M at Los Ricos South and 68M at Los Ricos North), as opposed to 665k ounces of gold (424k at Los Ricos South and 221k at Los Ricos North). The AISC (all in sustaining cost), which is basically the average cost to produce one ounce of silver and keep the mine running long term, is only around $10–12 for both mines. That makes it one of the very few Tier-1 silver assets in the world, with decent margins when the feasibility study was conducted at sub $30/oz silver and insane margins above $90/oz.

Yet despite being a Tier-1 silver asset, while the silver price has been going nuts and every silver miner on the market has been going to the moon, GoGold has been lagging behind with the gold miners. Why? Because it’s relatively tiny in terms of market cap ($886M which is nuts if you’ve done a NAV calc at $90 silver), and most people seem to think it’s a gold miner… probably because it’s named “GoGold.”

Finally, while most development stage miners are cash black holes, GoGold is already profitable and generating positive cash flow due to its tailings project. That’s a great sign in an industry full of executives who don’t seem to believe their mines ever need to be profitable.

Anyway, if you feel like you missed the silver run up, this is a Tier-1 silver asset hiding in plain sight that hasn’t moved with silver.