GoGold Resources (TSX:GGD) Net Margin Rebound Tests Bullish Profitability Narrative

GoGold Resources (TSX:GGD) just wrapped up FY 2025 with fourth quarter revenue of about $18.1 million and basic EPS of roughly $0.015, capping a trailing twelve months where revenue reached $72.5 million and EPS came in at $0.048 alongside net income of $17.3 million. Over the past few quarters the company has seen revenue move from $10.4 million in Q4 2024 to the $17 to $19 million range through FY 2025, while quarterly EPS shifted from near breakeven levels in early 2024 to low single cent territory through 2025. This leaves investors to focus squarely on how durable the company’s higher net margin profile really is.

See our full analysis for GoGold Resources.

With the headline numbers on the table, the next step is to see how this profitability story lines up with the dominant narratives around GoGold and where the latest results might force a rethink.

See what the community is saying about GoGold Resources

Net Margin Jumps To 23.9 Percent

• Over the last 12 months, GoGold turned a net profit of about $17.3 million on $72.5 million of revenue, which works out to a 23.9 percent net margin versus 4.3 percent in the prior year.
• What stands out for a bullish view is that this margin improvement sits on top of much stronger earnings, which grew 996.9 percent over the last year, even though the longer five year trend still shows average earnings shrinking 57.4 percent per year.
  • Backers of the bullish angle can point to the company moving from modest net income of roughly $1.6 million a year ago to $17.3 million over the latest 12 month stretch as evidence that recent operations are far more profitable than they used to be.
  • At the same time, the negative five year growth rate is a reminder that this margin profile is still relatively new, so bulls have to assume that the current 23.9 percent net margin can be maintained rather than treating it as a long run average.

Earnings Swing 996.9 Percent Higher

• Across the trailing 12 months, earnings grew 996.9 percent, with net income rising from around $1.6 million in the earlier 12 month period to $17.3 million, and basic EPS over that time stepping up to $0.048.
• From a general market perspective, that kind of earnings swing is a strong data point that reported performance has improved sharply, although the quarterly pattern shows that profits are still moving around, with net income running from a small loss of $0.1 million in Q1 2025 to $8.2 million in Q3 and then $5.9 million in Q4.
  • Investors who focus on consistency will notice that while Q4 2025 net income of $5.9 million is much higher than the $0.7 million reported in Q4 2024, it is also below Q3 2025 even though revenue in those two quarters stayed in a fairly tight $17 million to $18 million band.
  • Others will point out that the trailing numbers are built on more than one strong quarter, since revenue climbed from about $36.5 million in the earlier 12 month window to $72.5 million now, which helps explain how the company could deliver such a large earnings jump without any single quarter dominating the story.

📊 Read the full GoGold Resources Consensus Narrative.

Rich P E At 53.9 Times

• On valuation, GoGold trades at a trailing P E of 53.9 times, which is lower than its immediate peers at 63.8 times but far above the broader Canadian metals and mining group at 20.9 times, and this is after a year in which shareholders were substantially diluted.
• For a cautious, more bearish angle, the combination of a 53.9 times multiple, major dilution over the past year and a share price of $2.97 means investors are paying a high price for the 23.9 percent net margin and 996.9 percent earnings growth, even though analyst targets around $4.17 suggest roughly 40.3 percent upside from here.
  • Critics highlight that dilution can weaken per share ownership, so even though absolute net income rose to $17.3 million, each share now represents a smaller slice of that profit than it otherwise would have, which makes a high P E harder to justify.
  • On the other hand, the fact that the multiple is still below the 63.8 times peer average gives bears less room to argue that the stock is uniquely stretched, especially if the current margin and earnings levels are sustained into future periods.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for GoGold Resources on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A great starting point for your GoGold Resources research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

See What Else Is Out There

Despite a big earnings rebound, GoGold combines a rich P E, recent dilution and still volatile quarterly profits, which could challenge long term returns.

If those trade offs feel uncomfortable, use our these 905 undervalued stocks based on cash flows to quickly focus on companies where valuation looks more reasonable relative to earnings power and dilution risk.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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