GoGold Resources – Construction Commenced At The Los Ricos South Underground Mine & Q3 Financials

The KE Report Aug 27, 2026

Summary

GoGold broke ground at Los Ricos South underground mine in Jalisco; fully funded with $260M capex and a June 2028 first-pour target.

Cash of $284M, zero debt, and the producing Parral tailings mine cover G&A and fund the build — no equity dilution needed.

Los Ricos South targets 7.2 million silver-equivalent ounces annually at AISC (all-in sustaining cost) below $12 per ounce.

Los Ricos North PEA adds 8.8 million more ounces; permit application targeted for Q1 next year, lifting GoGold to 15 to 17 million ounce mid-tier.

Q3 (quarter ending June 2026) set a record: $26.3M operating cash flow on $27.8M revenue, making Parral a $60M/year after-tax generator.

Construction has commenced at Los Ricos South underground mine on a 24-month build targeting first pour in June 2028, with the project fully funded by a ~$260M inflation-adjusted capex (originally $227M from an 18-month-old study) of which ~$7M has already been spent
Strong balance sheet positions the build without dilution or new debt: $284M cash at quarter-end and the Parral tailings operation generating ~$60M/year US after-tax free cash flow, with G&A effectively covered by interest on the cash balance
Production profile is set to jump to over 9M oz/year silver equivalent once Los Ricos South is in production (vs. ~1.8-2M oz/year today from Parral), with the Los Ricos North PEA adding another 8.8M oz for a district-wide target of 15-17M oz at AISC ~$12/oz silver equivalent
Mine life of 12 years underground (15 years total LOM) at Los Ricos South, with substantial exploration upside including a second horizon ~250m below current reserves reachable from underground and untested areas to the north of Los Ricos North
Shares are up over 50% in the month leading up to the interview, with Brad Langille attributing the rerate to the permit milestone plus a concurrent precious-metals rally

Top takeaway Frames the Los Ricos district as a sequenced build: Los Ricos South construction is underway now, and the team is targeting a Q1 next-year filing for the Los Ricos North permit to add another 8.8M oz/year of silver-equivalent production on top of South's 7.2M oz
Argues the build is unusually de-risked for a junior: cash on hand plus ~$60M/year US after-tax free cash flow from Parral covers G&A and capex without needing an equity raise or a large debt package
Leans on the team's operating track record as the differentiator — Los Ricos South will be the fifth mine the core group has built in Mexico, with the lead team having worked together for ~20 years and 30+ years of in-country experience
Flags water as the make-or-break issue for the Los Ricos North open-pit component, drawing a contrast to the recently permitted San Nicolas project (Agnico Eagle), and expects a hybrid underground/open-pit design that uses underground mine water and possibly treated water
Stays constructive on long-dated exploration upside even with the build underway, pointing to a deeper second horizon below Los Ricos South reserves and untouched ground north of Los Ricos North, and calls the asset generational