August 28, 2024
Dear WRPC Member and Friends of the Menominee River,
The Gold Resource Corporation’s (GORO) Back Forty Project continues to be on indefinite hold. When CEO Allen Palmiere was recently asked whether the project was “in limbo” by an investor, he said that he didn’t like the term limbo but it was not inappropriate. “In the current financial climate for junior companies,” he said, “it would be virtually impossible for us to finance it. And rather than spend money on Back Forty currently, what we’ve chosen to do is spend the money on exploration in Don David (GORO’s Mexican mine) where we know we can generate cash flow.” GORO reported a net loss of $27.7 million for the second quarter of 2024 and a cash balance of $5.3 million. The longer GORO postpones the Back Forty permitting process, the more expensive it will be to resume the process when inflationary pressures have dramatically increased the cost of the project.