Gold Resource Corporation Reports Strong First Quarter Gold Production and a Strengthened Management Team at the Mine
April 25 2023 - 5:37PM
Business Wire
- MAINTAINED A SOLID BALANCE SHEET WITH $21.4 MILLION IN
CASH
- SOLD 10,055 GOLD EQUIVALENT OUNCES
- COMPLETED MORE THAN 2,500 METERS OF EXPANSION EXPLORATION
DRILLING
- EBITDA OF $6.3 MILLION
- NET LOSSES OF $1 MILLION, OR $0.01 PER SHARE
Gold Resource Corporation (NYSE American: GORO) (the “Company”)
sold a total of 6,508 ounces of gold and 294,815 ounces of silver
in the first quarter of 2023 for a total of 10,055 gold equivalent
ounces. Additionally, during the quarter, the Company sold 3,060
tonnes of zinc, 332 tonnes of copper, and 1,417 tonnes of lead. For
the quarter ended March 31, 2023, the company reported a net loss
of $1 million with revenue of $31.2 million and mine gross profit
of $3.9 million from operations. A total of $5 million was invested
in the Don David Gold Mine and Back Forty Project.
“Our 2023 annual production at the Don David Gold Mine is off to
a good start. This achievement is due to mining higher average
grades as a result of targeted infill drilling and mine
sequencing,” stated Allen Palmiere, President and CEO. “Underground
resource expansion drilling is progressing as planned. In addition,
the mine is managed by a new leadership team that is already
realizing improvements to maximize efficiencies and safety
protocols. At the Back Forty Project in Michigan, feasibility study
work related to metallurgical testing and refinement of capital
cost estimates continues.”
2023 HIGHLIGHTS
Additional highlights for the three months ended March 31, 2023,
are summarized below:
Financial
- Working capital was $24.1 million as of March 31, 2023, $2.7
million higher than as of December 31, 2022. The increase is
primarily due to a decrease in royalty taxes payable.
- Total cash cost for the quarter was $711 per gold equivalent
(“AuEq”) ounce (after co-product credits) and total all-in
sustaining cost for the quarter was $1,221 per AuEq ounce (after
co-product credits).
- The Company’s Annual Meeting of Shareholders will be held in
person on June 15, 2023. Information regarding notice, materials,
and voting can be found in the 2023 Proxy Statement that will be
filed with the SEC on April 28, 2023 and available at
https://www.sec.gov/edgar.
Don David Gold Mine
- The Don David Gold Mine (“DDGM”) safety program aims to bolster
the overall health and safety culture of our employees.
- There was one lost time incident during the first quarter of
2023.
- The year-to-date lost time injury frequency rate per million
hours of 1.96 is substantially below the Camimex (Mexican Chamber
of Mines) industry average of 4.52.
- For the ninth consecutive year, the Don David Gold Mine earned
the prestigious Empresa Socialmente Responsable (“ESR”) award from
the Mexican Center for Philanthropy (CEMEFI). Awards are given to
organizations who demonstrate a commitment to supporting social and
environmental protection programs within their local
communities.
- Exploration has progressed as planned during the first quarter
with work continuing to focus on infill drilling with encouraging
results. Our 2023 exploration objectives are to identify and define
additional mineral resources from the Three Sisters, South Soledad,
Sagrario, and Marena vein systems.
Back Forty Project
- The feasibility study work for the Back Forty Project in
Michigan, USA progressed during the first quarter of 2023. Work
related to metallurgy and the economic model will continue with a
deliberate and measured approach.
- Once the feasibility study work is completed, the Company’s
Board of Directors will evaluate the current economic climate and
make a decision on how to move forward with the Back Forty
Mine.
2023 Capital and Exploration Investment Summary
For the three months ended
March 31, 2023
2023 full year
guidance
(in thousands)
Sustaining Investments:
Underground Development
Capital
$
1,296
Infill Drilling
Capitalized Exploration
817
Other Sustaining Capital
Capital
475
Surface and Underground Exploration
Development & Other
Capitalized Exploration
548
Subtotal of Sustaining Investments:
3,136
$
9 - 11 million
Growth Investments:
DDGM growth:
Surface Exploration / Other
Exploration
766
Underground Exploration Drilling
Exploration
477
Underground Exploration Development
Exploration
146
Back Forty growth:
Back Forty Feasibility Study &
Permits
Exploration
450
Subtotal of Growth Investments:
1,839
$
6 - 7 million
Total Capital and Exploration:
$
4,975
$
15 - 18 million
Trending Highlights (unaudited)
2022
Q1
Q2
Q3
Q4
Q1
Operating Data
Total tonnes milled
136,844
129,099
110,682
116,616
117,781
Average Grade
Gold (g/t)
3.00
2.63
1.98
2.51
2.33
Silver (g/t)
81
64
80
109
94
Copper (%)
0.41
0.32
0.37
0.45
0.37
Lead (%)
1.97
1.99
1.59
1.58
1.73
Zinc (%)
4.89
4.00
4.21
4.27
3.88
Metal production (before payable metal
deductions)
Gold (ozs.)
11,187
9,317
5,851
7,767
7,171
Silver (ozs.)
332,292
249,088
261,256
370,768
322,676
Copper (tonnes)
431
303
296
406
336
Lead (tonnes)
2,073
2,020
1,249
1,323
1,559
Zinc (tonnes)
5,562
4,282
3,901
4,198
3,837
Metal produced and sold
Gold (ozs.)
8,381
8,746
5,478
7,514
6,508
Silver (ozs.)
265,407
231,622
225,012
335,168
294,815
Copper (tonnes)
408
286
282
372
332
Lead (tonnes)
1,639
1,755
1,056
941
1,417
Zinc (tonnes)
4,359
3,590
2,943
3,265
3,060
Average metal prices realized
Gold ($ per oz.)
$ 1,898
$ 1,874
$ 1,627
$ 1,734
$ 1,915
Silver ($ per oz.)
$ 23.94
$ 22.05
$ 18.54
$ 21.25
$ 23.04
Copper ($ per tonne)
$ 10,144
$ 9,275
$ 7,115
$ 8,221
$ 9,172
Lead ($ per tonne)
$ 2,347
$ 2,168
$ 1,882
$ 1,954
$ 2,158
Zinc ($ per tonne)
$ 3,842
$ 4,338
$ 3,186
$ 2,577
$ 3,195
Gold equivalent ounces sold
Gold Ounces
8,381
8,746
5,478
7,514
6,508
Gold Equivalent Ounces from Silver
3,348
2,729
2,564
4,107
3,547
Total AuEq oz
11,729
11,475
8,042
11,621
10,055
Financial Data ($'s in thousands except
for per ounce)
Total sales, net
$ 45,417
$ 37,064
$ 23,869
$ 32,374
$ 31,228
Earnings from mining operations before
depreciation and amortization
25,281
15,281
4,431
11,981
11,183
Total cash cost after co-product credits
per AuEq oz sold
(163)
247
1,103
842
711
Total consolidated all-in sustaining cost
after co-product credits per AuEq oz sold
462
799
1,831
1,226
1,218
Production Costs
2,074
21,722
19,380
19,773
19,850
Production Costs/Tonnes Milled
147
168
175
170
169
Earnings before interest, taxes,
depreciation, depletion, and amortization
15,328
13,716
(3,338)
3,758
6,085
Operating Cash Flows
4,230
7,976
(4,292)
6,243
1,024
Net income
4,019
2,673
(9,730)
(3,283)
(1,035)
Earnings per share - basic
$ 0.05
$ 0.03
($ 0.11)
($ 0.04)
($ 0.01)
Q1 2023 Conference Call
The Company will host a conference call Wednesday, April 26,
2023, at 10:00 a.m. Mountain Time.
The conference call will be recorded and posted to the Company’s
website later in the day following the conclusion of the call.
Following prepared remarks, Allen Palmiere, President and Chief
Executive Officer, Alberto Reyes, Chief Operating Officer and Kim
Perry, Chief Financial Officer will host a live question and answer
(Q&A) session. There are two ways to join the conference
call.
To join the conference via webcast, please click on the
following link: Click Here To Join Webcast
To join the call via telephone, please use the following dial-in
details:
Participant Toll Free:
+1 (888) 396-8049
International:
+1 (416) 764-8646
Conference ID:
13462059
Please connect to the conference call at least 10 minutes prior
to the start time using one of the connection options listed
above.
About GRC:
Gold Resource Corporation is a gold and silver producer,
developer, and explorer with its operations centered on the Don
David Gold Mine in Oaxaca, Mexico. Under the direction of an
experienced board and senior leadership team, the company’s focus
is to unlock the significant upside potential of its existing
infrastructure and large land position surrounding the mine in
Oaxaca, Mexico and to develop the Back Forty Project in Michigan,
USA. For more information, please visit GRC’s website, located at
www.goldresourcecorp.com and read the company’s Form 10-K for an
understanding of the risk factors associated with its business.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230425006138/en/
Kim Perry Chief Financial Officer Kim.Perry@GRC-USA.com
www.GoldResourcecorp.com
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