Gold Resource Corporation (NYSE American:
GORO) (the “Company”) is pleased to announce its
second quarter operational results from its Don David Gold Mine
(“DDGM”) near Oaxaca, Mexico, and a corporate update on its other
activities.
2024 Q2 Highlights include:
- Produced and sold 2,724 ounces of gold and 234,560 ounces of
silver
- Produced and sold 1,771 tonnes of zinc, 197 tonnes of copper,
and 491 tonnes of lead
- Cash balance of $5.3 million and working capital of $14.3
million at June 30, 2024
“During the quarter our drilling program progressed with
positive results that will allow for further expansion of our
resources and reserves and lead to a longer mine life that will
strengthen our future planning for the company.” stated Allen
Palmiere, President and CEO. “We did experience some delays in
production due to circumstances beyond our control. Excessive rains
during the hurricane season resulted in ore too wet for the mill to
handle, and we experienced abnormal work delays due to various
social issues resulting from the lead up to the presidential
election in Mexico. There were some positive offsets to these
issues that included the US Dollar strengthening against the Peso
and the metals we produced sold at prices higher than we had
budgeted.”
Corporate and Financial:
- Net loss was $27.7 million or $0.30 per share for the quarter,
which was after $16.5 million tax expense due to the valuation
allowance recorded during the second quarter of 2024 on the DDGM
deferred tax assets, $3.7 million in additional interest on
streaming liabilities because of increased gold consensus prices in
the second quarter, and $1.2 million of unrealized investment loss
on Green Light Metals shares.
Don David Gold Mine:
- In the second quarter of 2024, DDGM produced and sold a total
of 5,625 gold equivalent ounces, comprised of 2,724 gold ounces and
234,560 silver ounces at an average sales price per ounce of $2,465
and $30.49, respectively.
- During the second quarter, the underground diamond drilling
program progressed as planned and on schedule, utilizing two drill
rigs generating positive results. Infill drilling continued to
upgrade Inferred resources to the Measured and Indicated resource
categories, particularly focusing on the recently discovered Three
Sisters and Gloria vein systems. Infill drilling during this period
continued to identify and give definition to high-grade ore shoots
in the Sandy 1 and Sandy 2 veins of the Three Sisters system.
Additionally, grade control drilling continued to prove up economic
mineralization in veins scheduled for production in both the Arista
and Switchback systems.
- There were no lost time incidents during the quarter, resulting
in a “ZERO” year-to-date Lost Time Injury Frequency Rate (“LTIFR”)
safety record. Safety at Gold Resource Corporation is paramount.
Even with a good track record at DDGM, the Company continues to
strive each quarter for improved safety measures, awareness, and
training.
2024 Capital and Exploration Investment Summary
For the six months ended June
30, 2024
2024 full year
guidance
(in thousands)
Sustaining Investments:
Underground Development
Capital
$
2,657
Other Sustaining Capital
Capital
851
Infill Drilling
Capitalized Exploration
786
Surface and Underground Exploration
Development & Other
Capitalized Exploration
2
Subtotal of Sustaining Investments:
4,296
$
8.8 - 11.0 million
Growth Investments:
DDGM growth:
Surface Exploration / Other
Exploration
1,045
Underground Exploration Drilling
Exploration
38
Back Forty growth:
Back Forty Project Optimization &
Permitting
Exploration
347
Subtotal of Growth Investments:
1,430
$
3.2 - 5.2 million
Total Capital and Exploration:
$
5,726
$
12.0 - 16.2 million
Trending Highlights
2023
2024
Q1
Q2
Q3
Q4
Q1
Q2
Operating Data
Total tonnes milled
117,781
113,510
116,626
111,254
98,889
93,687
Average Grade
-
Gold (g/t)
2.33
1.59
1.52
1.44
1.89
1.27
Silver (g/t)
94
86
73
85
88
102
Copper (%)
0.37
0.37
0.32
0.39
0.37
0.26
Lead (%)
1.73
1.64
1.29
1.39
1.25
1.00
Zinc (%)
3.88
3.72
3.24
2.95
2.82
2.59
Metal production (before payable metal
deductions)
Gold (ozs.)
7,171
4,637
4,443
4,077
4,757
2,947
Silver (ozs.)
322,676
289,816
247,159
282,487
251,707
263,023
Copper (tonnes)
336
334
276
341
280
181
Lead (tonnes)
1,559
1,389
1,048
1,072
812
616
Zinc (tonnes)
3,837
3,569
3,223
2,884
2,310
2,020
Metal produced and sold
Gold (ozs.)
6,508
4,287
3,982
3,757
3,557
2,724
Silver (ozs.)
294,815
274,257
208,905
258,252
216,535
234,560
Copper (tonnes)
332
327
245
327
264
197
Lead (tonnes)
1,417
1,317
947
820
667
491
Zinc (tonnes)
3,060
3,141
2,571
2,182
1,682
1,771
Average metal prices realized
Gold ($ per oz.)
$ 1,915
$ 2,010
$ 1,934
$ 1,985
$ 2,094
$ 2,465
Silver ($ per oz.)
$ 23.04
$ 24.93
$ 23.61
$ 23.14
$ 23.29
$ 30.49
Copper ($ per tonne)
$ 9,172
$ 8,397
$ 8,185
$ 8,205
$ 8,546
$ 10,428
Lead ($ per tonne)
$ 2,158
$ 2,153
$ 2,196
$ 2,122
$ 1,977
$2,235
Zinc ($ per tonne)
$ 3,195
$ 2,485
$ 2,195
$ 2,516
$ 2,483
$2,871
Gold equivalent ounces sold
Gold Ounces
6,508
4,287
3,982
3,757
3,557
2,724
Gold Equivalent Ounces from Silver
3,547
3,402
2,550
3,011
2,408
2,901
Total AuEq oz
10,055
7,689
6,532
6,768
5,965
5,625
Financial Data
Total sales, net (in thousands)
$ 31,228
$ 24,807
$ 20,552
$ 21,141
$ 18,702
$20,782
Production Costs (in thousands)
$ 19,850
$ 20,302
$ 18,957
$ 17,034
$ 16,108
$17,768
Production Costs/Tonnes Milled
$ 169
$ 179
$ 163
$ 153
$ 163
$ 190
Operating Cash Flows (in thousands)
$ 1,024
($ 551)
($ 7,475)
$ 1,783
$ 1,482
$(63)
Net loss (in thousands)
($ 1,035)
($ 4,584)
($ 7,341)
($ 3,057)
($ 4,021)
$(27,734)
Loss per share - basic
($ 0.01)
($ 0.05)
($ 0.08)
($ 0.03)
($ 0.05)
$(0.30)
Q2 2024 Conference Call
The Company will host a conference call Wednesday, August 7,
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=0D108D2F-3118-477B-B61A-9FF14F9AF182
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:
76141
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/20240806467990/en/
Chet Holyoak Chief Financial Officer Chet.holyoak@grc-usa.com
www.GoldResourceCorp.com
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