Gold Resource Corporation (NYSE American:
GORO) (the “Company”) is pleased to announce its
first quarter operational results from its Don David Gold Mine
(“DDGM”) near Oaxaca, Mexico, and a corporate update on its other
activities.
2024 Q1 Highlights include:
- Produced and sold 3,557 ounces of gold and 216,535 ounces of
silver
- Produced and sold 1,682 tonnes of zinc, 264 tonnes of copper,
and 667 tonnes of lead
- Cash balance of $5.7 million with no debt and working capital
of $13.6 million at March 31, 2024
“Work during the first quarter, included reparations for the
planned closure of the third cell of our tailings storage facility
(“TSF”) and solving fluctuations in the water quality returned to
the processing plant from the TSF pond. As a result, plant
throughput was reduced, and recoveries were lower during the first
few weeks of the quarter until solutions were achieved. Work will
continue during the second quarter to further improve recoveries.”
stated Allen Palmiere, President and CEO. “The Mexican peso
continued to remain strong against the US dollar and base metal
prices were lower than expected for the quarter. To offset most of
these challenges, the mine plan was adjusted to provide higher
grade ore and lower our costs. We also continued with our
exploration program to better define the areas that have been
returning very positive and encouraging results.”
Corporate and Financial:
- Net loss was $4.0 million or $0.05 per share for the quarter,
which was after $0.9 million in expenses for DDGM exploration
development and underground drilling.
- Total cash cost after co-product credits for the quarter was
$1,667 per gold equivalent (“AuEq”) ounce and total all-in
sustaining cost (“AISC”) after co-product credits for the quarter
was $2,295 per AuEq ounce. (See Item 2—Management’s Discussion and
Analysis of Financial Condition and Results of Operations –
Non-GAAP Measures for a reconciliation of non-GAAP measures to
applicable GAAP measures).
Don David Gold Mine:
- In the first quarter of 2024, DDGM produced and sold a total of
5,965 gold equivalent ounces, comprised of 3,557 gold ounces and
216,535 silver ounces at an average sales price per ounce of $2,094
and $23.29, respectively.
- The underground diamond drilling program progressed as planned
and on schedule during the first quarter, using two drill rigs with
continued positive results. During the first quarter, infill
drilling focused mainly on upgrading Inferred Resources to the
Measured and Indicated Resource categories with a specific focus on
the recently discovered Three Sisters and Gloria vein systems.
Infill drilling during the first quarter was successful in
identifying and defining high-grade ore shoots specifically in the
Sandy 1 and Sandy 2 veins of the Three Sisters system. Grade
control drilling continued on veins scheduled for production in
both the Arista and Switchback systems.
- There were no lost time incidents during the quarter, resulting
in a year-to-date Lost Time Injury Frequency Rate (“LTIFR”) safety
record of Zero. Safety at Gold Resource Corporation is paramount.
Even with a good track record at DDGM, the Company continues to
strive each quarter for improved measures, awareness, and
training.
2024 Capital and Exploration Investment Summary
For the three months ended
March 31, 2024
2024 full year
guidance
(in thousands)
Sustaining Investments:
Underground Development
Capital
$
1,350
Other Sustaining Capital
Capital
282
Infill Drilling
Capitalized Exploration
441
Surface and Underground Exploration
Development & Other
Capitalized Exploration
2
Subtotal of Sustaining Investments:
2,075
$
8.8 - 11.0 million
Growth Investments:
DDGM growth:
Surface Exploration / Other
Exploration
899
Back Forty growth:
Back Forty Project Optimization &
Permitting
Exploration
205
Subtotal of Growth Investments:
1,104
$
3.2 - 5.2 million
Total Capital and Exploration:
$
3,179
$
12.0 - 16.2 million
Trending Highlights
2023
2024
Q1
Q2
Q3
Q4
Q1
Operating Data
Total tonnes milled
117,781
113,510
116,626
111,254
98,889
Average Grade
-
Gold (g/t)
2.33
1.59
1.52
1.44
1.89
Silver (g/t)
94
86
73
85
88
Copper (%)
0.37
0.37
0.32
0.39
0.37
Lead (%)
1.73
1.64
1.29
1.39
1.25
Zinc (%)
3.88
3.72
3.24
2.95
2.82
Metal production (before payable metal
deductions)
Gold (ozs.)
7,171
4,637
4,443
4,077
4,757
Silver (ozs.)
322,676
289,816
247,159
282,487
251,707
Copper (tonnes)
336
334
276
341
280
Lead (tonnes)
1,559
1,389
1,048
1,072
812
Zinc (tonnes)
3,837
3,569
3,223
2,884
2,310
Metal produced and sold
Gold (ozs.)
6,508
4,287
3,982
3,757
3,557
Silver (ozs.)
294,815
274,257
208,905
258,252
216,535
Copper (tonnes)
332
327
245
327
264
Lead (tonnes)
1,417
1,317
947
820
667
Zinc (tonnes)
3,060
3,141
2,571
2,182
1,682
Average metal prices realized
Gold ($ per oz.)
$ 1,915
$ 2,010
$ 1,934
$ 1,985
$ 2,094
Silver ($ per oz.)
$ 23.04
$ 24.93
$ 23.61
$ 23.14
$ 23.29
Copper ($ per tonne)
$ 9,172
$ 8,397
$ 8,185
$ 8,205
$ 8,546
Lead ($ per tonne)
$ 2,158
$ 2,153
$ 2,196
$ 2,122
$ 1,977
Zinc ($ per tonne)
$ 3,195
$ 2,485
$ 2,195
$ 2,516
$ 2,483
Gold equivalent ounces sold
Gold Ounces
6,508
4,287
3,982
3,757
3,557
Gold Equivalent Ounces from Silver
3,547
3,402
2,550
3,011
2,408
Total AuEq oz
10,055
7,689
6,532
6,768
5,965
Financial Data
Total sales, net (in thousands)
$ 31,228
$ 24,807
$ 20,552
$ 21,141
$ 18,702
Production Costs (in thousands)
$ 19,850
$ 20,302
$ 18,957
$ 17,034
$ 16,108
Production Costs/Tonnes Milled
$ 169
$ 179
$ 163
$ 153
$ 163
Operating Cash Flows (in thousands)
$ 1,024
($ 551)
($ 7,475)
$ 1,783
$ 1,482
Net loss (in thousands)
($ 1,035)
($ 4,584)
($ 7,341)
($ 3,057)
($ 4,021)
Loss per share - basic
($ 0.01)
($ 0.05)
($ 0.08)
($ 0.03)
($ 0.05)
Q1 2024 Conference Call
The Company will host a conference call Friday, May 3, 2024, 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 Chet
Holyoak, 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:
https://onlinexperiences.com/Launch/QReg/ShowUUID=617944F2-FF66-4B11-A082-3804BF9CF029
To join the call via telephone, please use the following dial-in
details:
Participant Toll Free:
+1 (800) 717-1738
International:
+1 (289) 514-5100
Conference ID:
45398
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. Base metals, critical to the
United States, are also produced as a by-product. 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.
Forward-Looking Statements:
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. In some cases, you can identify forward-looking statements by
the following words: "may," "might," "will," "could," "would,"
"should," "expect," "plan," "anticipate," "intend," "seek,"
"believe," "estimate," "predict," "potential," "continue,"
"contemplate," "possible," or the negative of these terms or other
comparable terminology, although not all forward-looking statements
contain these words. They are not historical facts, nor are they
guarantees of future performance. Any express or implied statements
contained in this announcement that are not statements of
historical fact may be deemed to be forward-looking statements,
including, without limitation, statements regarding the timing and
scope of a process to explore strategic alternatives for the
Company, including a potential sale of the Company. It is possible
that the Company’s actual results, financial condition, and
developments may differ, possibly materially, from the anticipated
results, developments, and financial condition indicated in these
forward-looking statements. Management believes that these
forward-looking statements are reasonable as of the time made.
However, caution should be taken not to place undue reliance on any
such forward-looking statements because such statements speak only
as of the date when made. Our Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise, except
as required by law. These forward-looking statements are neither
promises nor guarantees, but involve known and unknown risks and
uncertainties that could cause actual results to differ materially
from those projected, including, without limitation: whether the
objectives of the strategic alternative review process will be
achieved; the terms, structure, benefits and costs of any strategic
transaction; the timing of any transaction and whether any
transaction will be consummated at all; the risk that the strategic
alternatives review and its announcement could have an adverse
effect on the ability of the Company to retain and hire key
personnel and maintain relationships with suppliers, employees,
shareholders, and other business relationships, and on its
operating results and business generally; the risk the strategic
alternatives review could divert the attention and time of the
Company’s management; the risk of any unexpected costs or expenses
resulting from the review; the risk of any litigation relating to
the review; and the risks and uncertainties described in “Item 1A.
Risk Factors” in our Annual report on Form 10-K for the year ended
December 31, 2023, and those described from time to time in our
future reports filed with the Securities and Exchange
Commission.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240502192046/en/
Chet Holyoak Chief Financial Officer Chet.holyoak@grc-usa.com
www.GoldResourceCorp.com
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