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Yahoo
13-05-2025
- Business
- Yahoo
Gold Resource Corporation Reports Financial Results for the First Quarter of 2025
DENVER, May 12, 2025--(BUSINESS WIRE)--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. "While production was lower in Q1 2025 than in prior quarters, we're now seeing strong early traction," said Allen Palmiere, President and CEO. "We secured additional capital through ATM sales and received the anticipated tax refund, strengthening our balance sheet and placing us in a better position to move forward with the development of the Three Sisters system. As discussed on our year-end call, we're actively assessing equipment options and pursuing targeted purchases of high-quality rebuilt and/or overhauled equipment to accelerate development and reduce costs. We're also advancing contractor negotiations to fast-track access to new zones. These initiatives are part of a disciplined execution plan—and we're confident in our ability to deliver anticipated results." Don David Gold Mine: In the first quarter of 2025, DDGM produced and sold a total of 3,394 gold equivalent ("AuEq") ounces, comprised of 859 gold ounces and 230,320 silver ounces at an average sales price per ounce of $2,956 and $32.54, respectively. During the first quarter, underground definition and grade control drilling progressed positively at the Three Sisters vein system, targeting the Sandy 1, Sandy 2 and Sadie 1 veins. Additionally, some definition drilling was completed on the Marena, Santa Helena and Viridiana veins within the Arista system. The goal of this drilling is to maximize potential economic returns from near-term production from both of the vein systems. Although underground exploration drilling is currently suspended, additional step-out targets at the Three Sisters and Arista vein systems have been identified for future drill testing. Exploration drilling will resume once the necessary development is completed and the Company's working capital has increased. Corporate and Financial: The Company has $6.2 million in working capital and $4.9 million in cash as of March 31, 2025. Net loss was $8.3 million or $0.07 per share for the quarter, which was mainly attributable to lower production and a decrease in net sales. Production was significantly impacted by the aging mining fleet, with lessened availability of the critical mining equipment and the lack of alternative ore production headings. Total cash cost after co-product credits for the quarter was $2,494 per AuEq ounce, and total all-in sustaining cost ("AISC") after co-product credits for the quarter was $3,252 per AuEq ounce. Liquidity Update: Both the grade and tonnes produced from the mining operations at DDGM remained lower than previous years during the first quarter of 2025. There are several factors that caused these declines. The Company has encountered significant issues with equipment availability due to the age and condition of some of the critical mining equipment in use at the mine. Due to the continued challenges with equipment availability and the decreased cash due to prior production shortfalls, the Company was not able to maintain its projected timeline for the development of future production zones. As a result, the Company is currently mining only one face at a time in areas that are accessible. The current lack of other available production zones has placed additional pressure on the Company's ability to achieve its production estimates, as any problems encountered at the current production zone cannot be offset by production elsewhere in the mine. In addition, the mill experienced mechanical issues that resulted in lower throughput, and when combined with the lower tons mined, resulted in a production shortfall. To minimize the mechanical issues and return the mine to a positive cash flow position, capital is necessary to replace some of the mining fleet and upgrade the mill. The Company believes that the mine has potential to generate positive cash flow based on the information to date from the new areas of the Three Sisters, as well as other areas that have been discovered near the existing mining zones. In order to develop access and better define these new areas, an investment must be made in the equipment and mine plan. Without the addition of these areas to the life-of-mine plan, the Company does not believe that the mine will generate sufficient operating cash flow in the near term. The Company's inability to achieve its production estimates and lack of adequate liquidity has created substantial doubt about its ability to continue as a going concern. The Company previously announced that it would require approximately $7.0 million to obtain additional mining equipment and for mill upgrades. Management is currently looking to reduce the amount necessary for mining equipment purchases by purchasing good used equipment and using a third-party contractor that will provide its own equipment. In addition to the above-mentioned equipment and mill upgrades, the Company expects to require approximately $8.0 million in working capital over the next 12 months to fund the initial development to access the Three Sisters and Splay 31 systems, although not all of this capital will be required immediately. Due to the early 2025 production challenges described above, the Company does not believe that the mine will generate sufficient cash flow to fund these improvements. The Company raised $2.5 million through a registered direct offering in January 2025. Further, in February 2025, the Company sold its interest in Green Light Metals for $0.9 million. Year-to-date through May 8, 2025, the Company has raised $8.6 million through its ATM Program, after deducting the agent's commissions and other expenses, and may utilize the ATM Program further to raise capital, as required. A portion of these proceeds was used to fund operations during the first quarter of 2025. Additionally, on May 7, 2025, the Company received the previously disclosed tax refund of 76 million pesos from the overpayment of Mexico taxes by DDGM in 2023, plus an inflation adjustment, for a total of 79.6 million pesos (approximately $4.0 million). The Company continues to evaluate various financing options to fund its working capital needs for the next 12 months. If the Company is unable to obtain additional capital and successfully develop the new mining areas, the continued operation of the mine may not be possible beyond the third quarter of 2025. If continued operation of the mine is not possible, the Company may be compelled to place the mine on "care and maintenance" status, which would likely trigger significant severance and other costs, which the Company may not be able to pay. 2025 Capital and Exploration Investment Summary For the three months endedMarch 31, 2025 2025 2024 Sustaining Investments: Underground Development $ 468 $ 1,350 Other Sustaining Capital 50 282 Infill Drilling 109 441 Surface and Underground Exploration Development & Other 6 2 Subtotal of Sustaining Investments: 633 2,075 Growth Investments: DDGM growth: Surface Exploration / Other 281 899 Underground Exploration Development 1,188 - Back Forty growth: Back Forty Project Optimization & Permitting 204 205 Subtotal of Growth Investments: 1,673 1,104 Total Capital and Exploration: $ 2,306 $ 3,179 Trending Highlights 2024 2025 Q1 Q2 Q3 Q4 Q1 Operating Data Total tonnes milled 98,889 93,687 83,690 80,367 56,906 Average Grade Gold (g/t) 1.89 1.27 0.54 0.64 0.70 Silver (g/t) 88 102 83 94 169 Copper (%) 0.37 0.26 0.19 0.20 0.18 Lead (%) 1.25 1.00 1.01 1.12 0.72 Zinc (%) 2.82 2.59 2.63 2.73 1.68 Metal production (before payable metal deductions) Gold (ozs.) 4,757 2,947 944 1,258 903 Silver (ozs.) 251,707 263,023 194,525 210,581 257,285 Copper (tonnes) 280 181 93 88 54 Lead (tonnes) 812 616 576 678 272 Zinc (tonnes) 2,310 2,020 1,741 1,734 699 Metal produced and sold Gold (ozs.) 3,557 2,724 1,357 960 859 Silver (ozs.) 216,535 234,560 181,434 184,804 230,320 Copper (tonnes) 264 197 98 82 50 Lead (tonnes) 667 491 467 548 277 Zinc (tonnes) 1,682 1,771 1,473 1,360 617 Average metal prices realized Gold ($ per oz.) $ 2,094 $ 2,465 $ 2,561 $ 2,706 $ 2,956 Silver ($ per oz.) $ 23.29 $ 30.49 $ 30.61 $ 31.11 $ 32.54 Copper ($ per tonne) $ 8,546 $ 10,428 $ 8,832 $ 8,969 $ 9,656 Lead ($ per tonne) $ 1,977 $ 2,235 $ 2,065 $ 1,897 $ 1,950 Zinc ($ per tonne) $ 2,483 $ 2,871 $ 2,854 $ 3,062 $ 2,710 Gold equivalent ounces sold Gold Ounces 3,557 2,724 1,357 960 859 Gold Equivalent Ounces from Silver 2,408 2,901 2,169 2,125 2,535 Total AuEq oz 5,965 5,625 3,526 3,085 3,394 Year-End 2025 Conference Call Due to the proximity to the recent 2024 year-end call, the Company has elected to forego hosting a Q1 2025 conference call. 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 the Company's website, located at Forward-Looking Statements: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking words such as "plan," "target," "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, (i) the success and timing of the Company's contractor negotiations and equipment acquisitions; (ii) Company's anticipated near-term capital needs and potential sources of capital; (iii) the Company's expectations regarding cash flow, productivity and the resumption of exploration drilling; (iv) the Company's belief as to the cash flow potential of DDGM; and (v) the Company's ability to continue to operate the Don David Gold Mine in the absence of additional capital. All forward-looking statements in this press release are based upon information available to the Company as of the date of this press release, and the Company assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. Forward-looking statements are subject to risks and uncertainties. Additional risks related to the Company may be found in the periodic and current reports filed with the Securities and Exchange Commission by the Company, including the Company's Annual Report on Form 10-K for the year ended December 31, 2024, which are available on the SEC's website at View source version on Contacts Chet HolyoakChief Financial Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
National Post
12-05-2025
- Business
- National Post
Gold Resource Corporation Reports Financial Results for the First Quarter of 2025
Article content DENVER — 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. Article content Article content 'While production was lower in Q1 2025 than in prior quarters, we're now seeing strong early traction,' said Allen Palmiere, President and CEO. 'We secured additional capital through ATM sales and received the anticipated tax refund, strengthening our balance sheet and placing us in a better position to move forward with the development of the Three Sisters system. As discussed on our year-end call, we're actively assessing equipment options and pursuing targeted purchases of high-quality rebuilt and/or overhauled equipment to accelerate development and reduce costs. We're also advancing contractor negotiations to fast-track access to new zones. These initiatives are part of a disciplined execution plan—and we're confident in our ability to deliver anticipated results.' Article content Don David Gold Mine: Article content In the first quarter of 2025, DDGM produced and sold a total of 3,394 gold equivalent ('AuEq') ounces, comprised of 859 gold ounces and 230,320 silver ounces at an average sales price per ounce of $2,956 and $32.54, respectively. During the first quarter, underground definition and grade control drilling progressed positively at the Three Sisters vein system, targeting the Sandy 1, Sandy 2 and Sadie 1 veins. Additionally, some definition drilling was completed on the Marena, Santa Helena and Viridiana veins within the Arista system. The goal of this drilling is to maximize potential economic returns from near-term production from both of the vein systems. Although underground exploration drilling is currently suspended, additional step-out targets at the Three Sisters and Arista vein systems have been identified for future drill testing. Exploration drilling will resume once the necessary development is completed and the Company's working capital has increased. Article content The Company has $6.2 million in working capital and $4.9 million in cash as of March 31, 2025. Net loss was $8.3 million or $0.07 per share for the quarter, which was mainly attributable to lower production and a decrease in net sales. Production was significantly impacted by the aging mining fleet, with lessened availability of the critical mining equipment and the lack of alternative ore production headings. Total cash cost after co-product credits for the quarter was $2,494 per AuEq ounce, and total all-in sustaining cost ('AISC') after co-product credits for the quarter was $3,252 per AuEq ounce. Article content Liquidity Update: Article content Both the grade and tonnes produced from the mining operations at DDGM remained lower than previous years during the first quarter of 2025. There are several factors that caused these declines. The Company has encountered significant issues with equipment availability due to the age and condition of some of the critical mining equipment in use at the mine. Due to the continued challenges with equipment availability and the decreased cash due to prior production shortfalls, the Company was not able to maintain its projected timeline for the development of future production zones. As a result, the Company is currently mining only one face at a time in areas that are accessible. The current lack of other available production zones has placed additional pressure on the Company's ability to achieve its production estimates, as any problems encountered at the current production zone cannot be offset by production elsewhere in the mine. In addition, the mill experienced mechanical issues that resulted in lower throughput, and when combined with the lower tons mined, resulted in a production shortfall. To minimize the mechanical issues and return the mine to a positive cash flow position, capital is necessary to replace some of the mining fleet and upgrade the mill. Article content The Company believes that the mine has potential to generate positive cash flow based on the information to date from the new areas of the Three Sisters, as well as other areas that have been discovered near the existing mining zones. In order to develop access and better define these new areas, an investment must be made in the equipment and mine plan. Without the addition of these areas to the life-of-mine plan, the Company does not believe that the mine will generate sufficient operating cash flow in the near term. Article content The Company's inability to achieve its production estimates and lack of adequate liquidity has created substantial doubt about its ability to continue as a going concern. The Company previously announced that it would require approximately $7.0 million to obtain additional mining equipment and for mill upgrades. Management is currently looking to reduce the amount necessary for mining equipment purchases by purchasing good used equipment and using a third-party contractor that will provide its own equipment. In addition to the above-mentioned equipment and mill upgrades, the Company expects to require approximately $8.0 million in working capital over the next 12 months to fund the initial development to access the Three Sisters and Splay 31 systems, although not all of this capital will be required immediately. Due to the early 2025 production challenges described above, the Company does not believe that the mine will generate sufficient cash flow to fund these improvements. Article content The Company raised $2.5 million through a registered direct offering in January 2025. Further, in February 2025, the Company sold its interest in Green Light Metals for $0.9 million. Year-to-date through May 8, 2025, the Company has raised $8.6 million through its ATM Program, after deducting the agent's commissions and other expenses, and may utilize the ATM Program further to raise capital, as required. A portion of these proceeds was used to fund operations during the first quarter of 2025. Article content Additionally, on May 7, 2025, the Company received the previously disclosed tax refund of 76 million pesos from the overpayment of Mexico taxes by DDGM in 2023, plus an inflation adjustment, for a total of 79.6 million pesos (approximately $4.0 million). The Company continues to evaluate various financing options to fund its working capital needs for the next 12 months. Article content If the Company is unable to obtain additional capital and successfully develop the new mining areas, the continued operation of the mine may not be possible beyond the third quarter of 2025. If continued operation of the mine is not possible, the Company may be compelled to place the mine on 'care and maintenance' status, which would likely trigger significant severance and other costs, which the Company may not be able to pay. Article content 2024 2025 Q1 Q2 Q3 Q4 Q1 Operating Data Total tonnes milled 98,889 93,687 83,690 80,367 56,906 Average Grade Gold (g/t) 1.89 1.27 0.54 0.64 0.70 Silver (g/t) 88 102 83 94 169 Copper (%) 0.37 0.26 0.19 0.20 0.18 Lead (%) 1.25 1.00 1.01 1.12 0.72 Zinc (%) 2.82 2.59 2.63 2.73 1.68 Metal production (before payable metal deductions) Gold (ozs.) 4,757 2,947 944 1,258 903 Silver (ozs.) 251,707 263,023 194,525 210,581 257,285 Copper (tonnes) 280 181 93 88 54 Lead (tonnes) 812 616 576 678 272 Zinc (tonnes) 2,310 2,020 1,741 1,734 699 Metal produced and sold Gold (ozs.) 3,557 2,724 1,357 960 859 Silver (ozs.) 216,535 234,560 181,434 184,804 230,320 Copper (tonnes) 264 197 98 82 50 Lead (tonnes) 667 491 467 548 277 Zinc (tonnes) 1,682 1,771 1,473 1,360 617 Average metal prices realized Gold ($ per oz.) $ 2,094 $ 2,465 $ 2,561 $ 2,706 $ 2,956 Silver ($ per oz.) $ 23.29 $ 30.49 $ 30.61 $ 31.11 $ 32.54 Copper ($ per tonne) $ 8,546 $ 10,428 $ 8,832 $ 8,969 $ 9,656 Lead ($ per tonne) $ 1,977 $ 2,235 $ 2,065 $ 1,897 $ 1,950 Zinc ($ per tonne) $ 2,483 $ 2,871 $ 2,854 $ 3,062 $ 2,710 Gold equivalent ounces sold Gold Ounces 3,557 2,724 1,357 960 859 Gold Equivalent Ounces from Silver 2,408 2,901 2,169 2,125 2,535 Total AuEq oz 5,965 5,625 3,526 3,085 3,394 Article content Year-End 2025 Conference Call Article content Due to the proximity to the recent 2024 year-end call, the Company has elected to forego hosting a Q1 2025 conference call. Article content About GRC: Article content 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 the Company's website, located at Article content Forward-Looking Statements: Article content This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking words such as 'plan,' 'target,' 'anticipate,' 'believe,' 'estimate,' 'intend' and 'expect' and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, (i) the success and timing of the Company's contractor negotiations and equipment acquisitions; (ii) Company's anticipated near-term capital needs and potential sources of capital; (iii) the Company's expectations regarding cash flow, productivity and the resumption of exploration drilling; (iv) the Company's belief as to the cash flow potential of DDGM; and (v) the Company's ability to continue to operate the Don David Gold Mine in the absence of additional capital. All forward-looking statements in this press release are based upon information available to the Company as of the date of this press release, and the Company assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. Forward-looking statements are subject to risks and uncertainties. Additional risks related to the Company may be found in the periodic and current reports filed with the Securities and Exchange Commission by the Company, including the Company's Annual Report on Form 10-K for the year ended December 31, 2024, which are available on the SEC's website at Article content Article content Article content Article content Article content
Yahoo
12-05-2025
- Business
- Yahoo
Gold Resource Corporation Reports Financial Results for the First Quarter of 2025
DENVER, May 12, 2025--(BUSINESS WIRE)--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. "While production was lower in Q1 2025 than in prior quarters, we're now seeing strong early traction," said Allen Palmiere, President and CEO. "We secured additional capital through ATM sales and received the anticipated tax refund, strengthening our balance sheet and placing us in a better position to move forward with the development of the Three Sisters system. As discussed on our year-end call, we're actively assessing equipment options and pursuing targeted purchases of high-quality rebuilt and/or overhauled equipment to accelerate development and reduce costs. We're also advancing contractor negotiations to fast-track access to new zones. These initiatives are part of a disciplined execution plan—and we're confident in our ability to deliver anticipated results." Don David Gold Mine: In the first quarter of 2025, DDGM produced and sold a total of 3,394 gold equivalent ("AuEq") ounces, comprised of 859 gold ounces and 230,320 silver ounces at an average sales price per ounce of $2,956 and $32.54, respectively. During the first quarter, underground definition and grade control drilling progressed positively at the Three Sisters vein system, targeting the Sandy 1, Sandy 2 and Sadie 1 veins. Additionally, some definition drilling was completed on the Marena, Santa Helena and Viridiana veins within the Arista system. The goal of this drilling is to maximize potential economic returns from near-term production from both of the vein systems. Although underground exploration drilling is currently suspended, additional step-out targets at the Three Sisters and Arista vein systems have been identified for future drill testing. Exploration drilling will resume once the necessary development is completed and the Company's working capital has increased. Corporate and Financial: The Company has $6.2 million in working capital and $4.9 million in cash as of March 31, 2025. Net loss was $8.3 million or $0.07 per share for the quarter, which was mainly attributable to lower production and a decrease in net sales. Production was significantly impacted by the aging mining fleet, with lessened availability of the critical mining equipment and the lack of alternative ore production headings. Total cash cost after co-product credits for the quarter was $2,494 per AuEq ounce, and total all-in sustaining cost ("AISC") after co-product credits for the quarter was $3,252 per AuEq ounce. Liquidity Update: Both the grade and tonnes produced from the mining operations at DDGM remained lower than previous years during the first quarter of 2025. There are several factors that caused these declines. The Company has encountered significant issues with equipment availability due to the age and condition of some of the critical mining equipment in use at the mine. Due to the continued challenges with equipment availability and the decreased cash due to prior production shortfalls, the Company was not able to maintain its projected timeline for the development of future production zones. As a result, the Company is currently mining only one face at a time in areas that are accessible. The current lack of other available production zones has placed additional pressure on the Company's ability to achieve its production estimates, as any problems encountered at the current production zone cannot be offset by production elsewhere in the mine. In addition, the mill experienced mechanical issues that resulted in lower throughput, and when combined with the lower tons mined, resulted in a production shortfall. To minimize the mechanical issues and return the mine to a positive cash flow position, capital is necessary to replace some of the mining fleet and upgrade the mill. The Company believes that the mine has potential to generate positive cash flow based on the information to date from the new areas of the Three Sisters, as well as other areas that have been discovered near the existing mining zones. In order to develop access and better define these new areas, an investment must be made in the equipment and mine plan. Without the addition of these areas to the life-of-mine plan, the Company does not believe that the mine will generate sufficient operating cash flow in the near term. The Company's inability to achieve its production estimates and lack of adequate liquidity has created substantial doubt about its ability to continue as a going concern. The Company previously announced that it would require approximately $7.0 million to obtain additional mining equipment and for mill upgrades. Management is currently looking to reduce the amount necessary for mining equipment purchases by purchasing good used equipment and using a third-party contractor that will provide its own equipment. In addition to the above-mentioned equipment and mill upgrades, the Company expects to require approximately $8.0 million in working capital over the next 12 months to fund the initial development to access the Three Sisters and Splay 31 systems, although not all of this capital will be required immediately. Due to the early 2025 production challenges described above, the Company does not believe that the mine will generate sufficient cash flow to fund these improvements. The Company raised $2.5 million through a registered direct offering in January 2025. Further, in February 2025, the Company sold its interest in Green Light Metals for $0.9 million. Year-to-date through May 8, 2025, the Company has raised $8.6 million through its ATM Program, after deducting the agent's commissions and other expenses, and may utilize the ATM Program further to raise capital, as required. A portion of these proceeds was used to fund operations during the first quarter of 2025. Additionally, on May 7, 2025, the Company received the previously disclosed tax refund of 76 million pesos from the overpayment of Mexico taxes by DDGM in 2023, plus an inflation adjustment, for a total of 79.6 million pesos (approximately $4.0 million). The Company continues to evaluate various financing options to fund its working capital needs for the next 12 months. If the Company is unable to obtain additional capital and successfully develop the new mining areas, the continued operation of the mine may not be possible beyond the third quarter of 2025. If continued operation of the mine is not possible, the Company may be compelled to place the mine on "care and maintenance" status, which would likely trigger significant severance and other costs, which the Company may not be able to pay. 2025 Capital and Exploration Investment Summary For the three months endedMarch 31, 2025 2025 2024 Sustaining Investments: Underground Development $ 468 $ 1,350 Other Sustaining Capital 50 282 Infill Drilling 109 441 Surface and Underground Exploration Development & Other 6 2 Subtotal of Sustaining Investments: 633 2,075 Growth Investments: DDGM growth: Surface Exploration / Other 281 899 Underground Exploration Development 1,188 - Back Forty growth: Back Forty Project Optimization & Permitting 204 205 Subtotal of Growth Investments: 1,673 1,104 Total Capital and Exploration: $ 2,306 $ 3,179 Trending Highlights 2024 2025 Q1 Q2 Q3 Q4 Q1 Operating Data Total tonnes milled 98,889 93,687 83,690 80,367 56,906 Average Grade Gold (g/t) 1.89 1.27 0.54 0.64 0.70 Silver (g/t) 88 102 83 94 169 Copper (%) 0.37 0.26 0.19 0.20 0.18 Lead (%) 1.25 1.00 1.01 1.12 0.72 Zinc (%) 2.82 2.59 2.63 2.73 1.68 Metal production (before payable metal deductions) Gold (ozs.) 4,757 2,947 944 1,258 903 Silver (ozs.) 251,707 263,023 194,525 210,581 257,285 Copper (tonnes) 280 181 93 88 54 Lead (tonnes) 812 616 576 678 272 Zinc (tonnes) 2,310 2,020 1,741 1,734 699 Metal produced and sold Gold (ozs.) 3,557 2,724 1,357 960 859 Silver (ozs.) 216,535 234,560 181,434 184,804 230,320 Copper (tonnes) 264 197 98 82 50 Lead (tonnes) 667 491 467 548 277 Zinc (tonnes) 1,682 1,771 1,473 1,360 617 Average metal prices realized Gold ($ per oz.) $ 2,094 $ 2,465 $ 2,561 $ 2,706 $ 2,956 Silver ($ per oz.) $ 23.29 $ 30.49 $ 30.61 $ 31.11 $ 32.54 Copper ($ per tonne) $ 8,546 $ 10,428 $ 8,832 $ 8,969 $ 9,656 Lead ($ per tonne) $ 1,977 $ 2,235 $ 2,065 $ 1,897 $ 1,950 Zinc ($ per tonne) $ 2,483 $ 2,871 $ 2,854 $ 3,062 $ 2,710 Gold equivalent ounces sold Gold Ounces 3,557 2,724 1,357 960 859 Gold Equivalent Ounces from Silver 2,408 2,901 2,169 2,125 2,535 Total AuEq oz 5,965 5,625 3,526 3,085 3,394 Year-End 2025 Conference Call Due to the proximity to the recent 2024 year-end call, the Company has elected to forego hosting a Q1 2025 conference call. 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 the Company's website, located at Forward-Looking Statements: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking words such as "plan," "target," "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, (i) the success and timing of the Company's contractor negotiations and equipment acquisitions; (ii) Company's anticipated near-term capital needs and potential sources of capital; (iii) the Company's expectations regarding cash flow, productivity and the resumption of exploration drilling; (iv) the Company's belief as to the cash flow potential of DDGM; and (v) the Company's ability to continue to operate the Don David Gold Mine in the absence of additional capital. All forward-looking statements in this press release are based upon information available to the Company as of the date of this press release, and the Company assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. Forward-looking statements are subject to risks and uncertainties. Additional risks related to the Company may be found in the periodic and current reports filed with the Securities and Exchange Commission by the Company, including the Company's Annual Report on Form 10-K for the year ended December 31, 2024, which are available on the SEC's website at View source version on Contacts Chet HolyoakChief Financial Sign in to access your portfolio
Associated Press
08-04-2025
- Business
- Associated Press
Gold Resource Corporation Reports Financial Results for 2024 Year End
Gold Resource Corporation ( NYSE American: GORO) (the 'Company') is pleased to announce its year end operational results from its Don David Gold Mine ('DDGM') near Oaxaca, Mexico. 'Although the 2024 mine plan was based on lower grade ore, our aging mining fleet resulted in less tonnes mined and reduced our ability to access or develop into higher-grade areas,' stated Allen Palmiere, President and CEO. 'This, when combined with a rainy season that was longer and wetter than normal that in part reduced our plant capacity, meant that there was no alternative to offset the lower grades by processing more ore. We were, however, successful in conserving our cash to focus on the successful discovery and delineation of the new higher grade Three Sisters vein system, which is anticipated to extend our mine life and improve our potential margins. Three Sisters shows higher grade, with good widths and is closer to the surface, which is expected to result in lower mining costs.' To develop into Three Sisters, we are planning the following: As previously announced, we are currently negotiating with a contractor to develop and produce from the Three Sisters. The contractor is anticipated to start in April. This is expected to facilitate the productivity we need in terms of development and production in the Three Sisters. While it could result in somewhat higher operational costs, we anticipate it to be partially offset with higher tonnage. We plan to purchase a gently used fleet of mining equipment that is right-sized, with low hours of use and, after inspection, appears to be in very good condition. The acquisition will help to address our critical equipment availability and should improve our productivity. The new equipment is expected to be on site and working early in the third quarter. With respect to the processing plant, we are working to secure a third filter press to increase our throughput initially to 1,300 tonnes/day and thereafter to 1,500 tonnes/day. As close to 50% of our costs are fixed, the increased tonnage will have a significant impact on profitability. To help us implement the potential solutions outlined above, we are currently evaluating several sources of additional funding. We are optimistic that production will increase with these plans, and that the Company can achieve positive cash flow again by the end of the third quarter. Don David Gold Mine: The Company achieved an Accident Free Full Year, with a lost time injury frequency rate per million hours of zero. This hallmark is a direct result of the dedication of the Company's team and the DDGM safety program, which aims to bolster the overall health and safety culture of the employees. The Company's exploration program progressed as planned with positive results through the first three quarters of 2024. The primary focus was on infill drilling of targets in the Three Sisters and North Arista vein systems. To preserve cash, exploration drilling was suspended on August 1, 2024. However, the infill drilling completed in 2024 successfully increased both the potential resources of and confidence in the economic mineralization contained within the Three Sisters vein system, as well as in the Splay 31 vein of the North Arista vein system. Diamond drilling for grade control at the Arista Mine continued uninterrupted throughout the year, focusing on the delineation of reserves in both the Arista and Switchback vein systems. DDGM received the Mexican Empresa Socialmente Responsable ('ESR') award in 2024 for the tenth consecutive year. DDGM produced and sold a total of 18,580 gold equivalent ounces, comprising of 8,598 gold ounces and 817,333 silver ounces, sold at an average price per ounce of $2,354 and $28.75, respectively. Corporate and Financial: The Company closed the year with a $1.6 million cash and cash equivalent balance as at December 31, 2024. The decrease of $4.6 million from December 31, 2023 is mainly attributable to a cash outflow of $6.4 million for capital investments and $0.6 million from operating activities for 2024, which included $1.1 million of income tax payments for the tax years 2023 and 2024, exploration investment of $2.0 million at DDGM, and $0.4 million in maintaining the Back Forty Project. Working capital at December 31, 2024, was $2.1 million, an 86% decrease from the December 31, 2023 working capital of $15.2 million. The decrease is primarily driven by the decline in cash balance discussed above in combination with a lower level of annual gold production. DDGM total cash costs (after co-product credits) and total all-in sustaining cost per gold equivalent ('AuEq') 1 ounce sold for the year were $2,330 and $2,939, respectively. During 2024, an aggregate of 6,510,914 shares of the Company's common stock were sold and settled through the ATM Program for net proceeds to the Company of $2.7 million, after deducting $0.1 million for agent's commissions and other expenses. Liquidity Update: Tonnes and grade, with respect to the Company's mining operations at DDGM, have declined during 2024 and are below guidance. There are several factors that caused these declines. The Company has encountered significant issues with equipment availability due to the age and condition of some of the critical mining equipment in use at the mine. Due to the continued challenges with equipment availability and the decreased cash due to prior production shortfalls, the Company was not able to maintain its projected timeline for the development of future production zones. As a result, the Company is currently mining only one face at a time in areas that are accessible. The current lack of other available production zones has placed additional pressure on the Company's ability to achieve its production estimates, as any problems encountered at the current production zone cannot be offset by production elsewhere in the mine. In addition, the mill also experienced some mechanical issues and wet ore handling difficulties due to unusually high rain fall during the year that resulted in lower throughput and a production shortfall. To minimize the mechanical issues and return the mine to a cash positive position, capital is necessary to replace some of the mining fleet and upgrade the mill. The Company believes that the mine has significant potential to generate positive cash flow based on the information to date from the new areas of the Three Sisters, as well as other areas that have been discovered near the existing mining zones. In order to develop access and better define these new areas, an investment must be made for equipment and mine development. Without the addition of these areas to the life-of-mine plan, the Company does not believe that the mine will generate sufficient free cash flow in the near term. Despite production improving in the fourth quarter, the Company's inability to achieve its production estimates and lack of adequate liquidity has created substantial doubt about its ability to continue as a going concern. The Company previously announced that it would require approximately $7.0 million to obtain additional mining equipment and for mill upgrades. Management is currently looking to reduce the amount necessary for mining equipment purchases by looking for good used equipment and/or using a third-party contractor that will provide its own equipment. The Company also expects to require approximately $8.0 million in working capital over the next 12 months in order to fund the initial development to access the Three Sisters and Splay 31 systems, although not all of this capital will be required immediately. Due to the 2024 production challenges described above, the Company does not believe that the mine will generate sufficient cash flow to fund these improvements. The Company is evaluating various financing options in order to fund this development in the near term. The Company raised $2.5 million through a registered direct offering in January 2025. Additionally, the Company raised $3.0 million through its ATM Program in January and February 2025 and plans to utilize it further to raise additional capital as needed throughout the year. Further, in February 2025, the Company sold its interest in Green Light Metals for approximately $0.9 million. If the Company is unable to obtain this additional capital and successfully develop these new mining areas, the continued operation of the mine may not be possible beyond the first half of 2025. If continued operation of the mine is not possible, the Company may be compelled to place the mine on 'care and maintenance' status, which would likely trigger significant severance and other costs, which the Company may not be able to pay. 2024 Capital and Exploration Investment Summary For the year ended December 31, 2024 2024 full year guidance 2024 2023 Sustaining Investments: Underground Development $ 4,634 $ 4,386 Other Sustaining Capital 2,970 1,420 Infill Drilling 977 4,096 Surface and Underground Exploration Development & Other 65 1,139 Subtotal of Sustaining Investments: 8,646 11,041 $ 8.8 - 11.0 million Growth Investments: DDGM growth: Surface Exploration / Other 1,921 2,240 Underground Exploration Drilling 38 1,927 Underground Exploration Development - 357 Back Forty growth: Back Forty Project Optimization & Permitting 378 1,642 Subtotal of Growth Investments: 2,337 6,166 $ 3.2 - 5.2 million Total Capital and Exploration: $ 10,983 $ 17,207 $ 12.0 - 16.2 million Trending Highlights 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Operating Data Total tonnes milled 117,781 113,510 116,626 111,255 98,889 93,687 83,690 80,367 Average Grade - Gold (g/t) 2.33 1.59 1.52 1.44 1.89 1.27 0.54 0.64 Silver (g/t) 94 86 73 85 88 102 83 94 Copper (%) 0.37 0.37 0.32 0.39 0.37 0.26 0.19 0.20 Lead (%) 1.73 1.64 1.29 1.39 1.25 1.00 1.01 1.12 Zinc (%) 3.88 3.72 3.24 2.95 2.82 2.59 2.63 2.73 Metal production (before payable metal deductions) Gold (ozs.) 7,171 4,637 4,443 4,077 4,757 2,947 944 1,258 Silver (ozs.) 322,676 289,816 247,159 282,487 251,707 263,023 194,525 210,581 Copper (tonnes) 336 334 276 341 280 181 93 88 Lead (tonnes) 1,559 1,389 1,048 1,072 812 616 576 678 Zinc (tonnes) 3,837 3,569 3,223 2,884 2,310 2,020 1,741 1,734 Metal produced and sold Gold (ozs.) 6,508 4,287 3,982 3,757 3,557 2,724 1,357 960 Silver (ozs.) 294,815 274,257 208,905 258,252 216,535 234,560 181,434 184,804 Copper (tonnes) 332 327 245 327 264 197 98 82 Lead (tonnes) 1,417 1,317 947 820 667 491 467 548 Zinc (tonnes) 3,060 3,141 2,571 2,182 1,682 1,771 1,473 1,360 Average metal prices realized Gold ($ per oz.) $ 1,915 $ 2,010 $ 1,934 $ 1,985 $ 2,094 $ 2,465 $ 2,561 $ 2,706 Silver ($ per oz.) $ 23.04 $ 24.93 $ 23.61 $ 23.14 $ 23.29 $ 30.49 $ 30.61 $ 31.11 Copper ($ per tonne) $ 9,172 $ 8,397 $ 8,185 $ 8,205 $ 8,546 $ 10,428 $ 8,832 $ 8,969 Lead ($ per tonne) $ 2,158 $ 2,153 $ 2,196 $ 2,122 $ 1,977 $ 2,235 $ 2,065 $ 1,897 Zinc ($ per tonne) $ 3,195 $ 2,485 $ 2,195 $ 2,516 $ 2,483 $ 2,871 $ 2,854 $ 3,062 Gold equivalent ounces sold Gold Ounces 6,508 4,287 3,982 3,757 3,557 2,724 1,357 960 Gold Equivalent Ounces from Silver 3,547 3,402 2,550 3,011 2,408 2,901 2,169 2,125 Total AuEq oz 10,055 7,689 6,532 6,768 5,965 5,625 3,526 3,085 Year-End 2024 Conference Call The Company will host a conference call Wednesday, April 9, 2025, at 12:00 p.m. Eastern 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: To join the call via telephone, please use the following dial-in details: 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 the Company's website, located at Forward-Looking Statements: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking words such as 'plan,' 'target,' 'anticipate,' 'believe,' 'estimate,' 'intend' and 'expect' and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, (i) the success and timing of the Company's contractor negotiations and equipment acquisitions; (ii) Company's anticipated near-term capital needs and potential sources of capital; (iii) the Company's expectations regarding cash flow and productivity; and (iv) the Company's ability to continue to operate the Don David Gold Mine in the absence of additional capital. All forward-looking statements in this press release are based upon information available to the Company as of the date of this press release, and the Company assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. Forward-looking statements are subject to risks and uncertainties. Additional risks related to the Company may be found in the periodic and current reports filed with the Securities and Exchange Commission by the Company, including the Company's Annual Report on Form 10-K for the year ended December 31, 2024, which are available on the SEC's website at Chief Financial Officer [email protected] INDUSTRY KEYWORD: MINING/MINERALS NATURAL RESOURCES SOURCE: Gold Resource Corporation Copyright Business Wire 2025. PUB: 04/08/2025 05:50 PM/DISC: 04/08/2025 05:51 PM
Globe and Mail
07-04-2025
- Business
- Globe and Mail
Gold Resource Corporation Announces Year End 2024 Conference Call
Gold Resource Corporation (NYSE American: GORO) (the 'Company') announces that it will host a conference call on Wednesday, April 9, 2025, at 12:00 p.m. Eastern Time. The conference call will be recorded and posted on 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: 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: 07674 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 the Company's website, located at
