Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Gold Resource Corporation Reports Results of Operations for the Year-Ended December 31, 2022 By: Gold Resource Corporation via Business Wire March 02, 2023 at 17:45 PM EST SOLD 42,757 GOLD EQUIVALENT OUNCES, EXCEEDING 2022 GUIDANCE NET LOSSES OF $6.3 MILLION AND EBITDA OF $29.5 MILLION STRONG CASH BALANCE OF $23.7 MILLION AT YEAR END MINERAL RESOURCE AND RESERVES REPLACED 88% AND 74%, RESPECTIVELY 2022 FINANCIAL RESULTS REMAIN UNAUDITED, BDO USA, LLP, STILL TO COMPLETE FINAL AUDIT PROCEDURES AND RESULTS WILL BE RELEASED WITH THE 10-K Gold Resource Corporation (NYSE American: GORO) (the “Company”) sold a total of 30,119 ounces of gold and 1,057,209 ounces of silver in 2022 for a total of 42,757 gold equivalent ounces. Additionally, during the year, the Company sold 14,157 tonnes of zinc, 1,348 tonnes of copper, and 5,391 tonnes of lead. For the year ended December 31, 2022, the company reported a net loss of $6.3 million with revenue of $138.7 million and mine gross profit of $29.7 million from operations. A total of $31.3 million was invested in the Don David Gold Mine and Back Forty Project. Allen Palmiere, President and CEO, said, “Despite global challenges faced this year, such as inflation, and localized challenges such as ground support and ventilation, gold and silver production at the Don David Gold Mine in Mexico still ended the year above guidance. We also made excellent strides with our operations, capital, and exploration programs. The results of the Q4 2022 drilling at DDGM are very promising and have confirmed the ongoing 2023 drill program is on the right track to potentially deliver higher grade resources into the near- and mid-term mine plan. With improved access and ventilation our team can now aggressively continue with the underground infill and expansion drilling to follow-up these positive results. While our grade profile is expected to decline in 2023, we continue to identify and implement productivity improvements. Work continues with the feasibility study to advance the Back Forty Project in Michigan with a deliberate and measured approach. Upon completion, preparation of State of Michigan permits will follow. In both Mexico and Michigan, we are focused on collaborating with local communities to ensure sustainability.” 2022 HIGHLIGHTS Additional highlights for the year ended December 31, 2022, are summarized below: Strategic: Cash inflow of $14.2 million from operating activities for 2022, which included $18.6 million of income tax payments for tax years 2021 and 2022. Distributions to shareholders of $3.5 million in shareholder dividends prior to the February 13th, 2023, announcement of the suspension of future quarterly dividends to protect our balance sheet and to focus capital resources on exploration and growth opportunities. Investments of Canadian dollar (“C$”) 2.4 million (approximately $1.7 million) in Maritime Resources Corp. (TSX-V: MAE.V) (“Maritime”) in exchange for 9.9% of Maritime’s shares in a private placement. Don David Gold Mine: The DDGM safety program aims to bolster the overall health and safety culture of our employees. There were six lost time incidents during 2022. The incidents were thoroughly investigated, and the appropriate actions were taken. The full year lost time injury frequency rate per million hours of 2.5 which is substantially below the 5.7 Camimex (Mexican Chamber of Mines) benchmark. Don David Gold Mine (“DDGM”) total cash costs (after co-product credits) and total all-in sustaining cost per gold equivalent (“AuEq”) ounce sold were $458 and $788, respectively (See “Reconciliation of Non-GAAP Financial Measures” below). During the year, exploration continued to focus on infill drilling with encouraging results from the Arista, Three Sisters, and Switchback vein systems. However, we faced localized ground conditions and ventilation challenges that slowed drift extensions to multiple underground drill stations. Those technical issues have been addressed, and we have commenced step-out drilling in multiple highly prospective areas. Back Forty Project: The feasibility study work for the Back Forty Project in Michigan, USA progressed during 2022. Work related to metallurgy and the economic model will continue with a deliberate and measured approach and is expected to be completed in the first half of 2023. Once the feasibility study is completed, the Company’s Board of Directors will evaluate the current economic climate and make a decision on how to move forward with the permitting and construction of the Back Forty Mine. The Company continues to meet with the community and government agencies to demonstrate the value of this project. Full Year 2022 Financial Results Financial Measures (Unaudited) ($’s in millions) Cash balance at December 31, 2022 $23.7 For the Year Ended December 31, 2022 Cash from continuing operating activities $14.2 Net loss $(6.3) Net sales $138.7 Production costs $80.9 Depreciation, amortization, & reclamation $28.0 Mining gross profit $29.7 EBITDA $29.5 2022 Capital and Exploration Investment Summary For the year ended December 31, 2022 (in thousands) Sustaining Investments: Underground Development Capital $ 6,619 Underground Exploration Development Capital 3,034 Infill Drilling Capital 3,459 Other Sustaining Capital Capital 3,227 Growth Investments: Surface Exploration & Other Exploration 1,929 Underground Exploration Drilling Exploration 2,315 Back Forty Feasibility Study & Permits Exploration 8,805 Gold Regrind Capital 745 Dry Stack Completion Capital 1,149 Total Capital and Exploration: $ 31,282 Reconciliations of Non-GAAP Financial Measures The calculations of cash cost after co-product credits per gold equivalent ounce and all-in sustaining cost after co-product credits per AuEq ounce are non-GAAP financial measures. The following table reconciles these non-GAAP measures to GAAP measures: For the year ended December 31, 2022 2021 (in thousands, except per oz) Gold equivalent ounces sold (oz) 42,757 37,526 Total production $ 80,949 $ 72,234 Treatment and refining charges 12,072 11,485 Co-product credits (73,442 ) (69,061 ) Total cash cost after co-product credits 19,579 14,658 Total cash cost after co-product credits per AuEq oz sold $ 458 $ 391 Sustaining - capitalized expenditure 13,305 11,307 Reclamation and remediation 801 219 Subtotal of DDGM sustaining costs 14,106 11,526 DDGM all-in sustaining cost after co-product credits per AuEq oz sold $ 788 $ 698 Sustaining - general and administrative, including stock-based compensation expenses 10,003 7,775 Consolidated all-in sustaining cost after co-product credits 43,688 33,959 Total consolidated all-in sustaining cost after co-product credits per AuEq oz sold $ 1,022 $ 905 Non-sustaining cost- capital expenditure 1,894 9,303 Non-sustaining cost- exploration expenditure 13,049 4,886 Subtotal of non-sustaining costs 14,943 14,189 Total all-in cost after co-product credits 58,631 48,148 Total all-in cost after co-product credits per AuEq oz sold $ 1,371 $ 1,283 2023 Guidance The Company’s focus continues to be on unlocking the value of the Don David Gold Mine, existing infrastructure, and large property position in Oaxaca, Mexico and therefore we plan to make significant investments for infrastructure and exploration in 2023. Measure 2023 Guidance Payable Production 17,000 to 19,000 Gold Ounces 900,000 to 1,000,000 Silver Ounces 30,000 to 31,000 Gold Equivalent Ounces Cash Costs after co-product credits per gold AuEq ounce (1) (2) $1,000 to $1,050 All-in Sustaining Costs after co-product credits per AuEq ounce (1) (2) $1,250 to $1,350 (DDGM) $1,650 to $1,750 (Consolidated) Capital Investment $6 to $7 million Exploration Commitment $3 to $4 million Sustaining $6 to $7 million Growth G & A, excluding Stock-based Compensation $8.5 million to $9.5 million (1) Calculations of cost after co-product credits per gold equivalent ounce and all-in sustaining cost after co-product credits per AuEq ounce are non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” above. (2) Co-product credits directly impact the Cash Costs and All-in Sustaining Costs per AuEq ounce calculation. Guidance is based on approximately 4,200 tonnes of lead sold at an $0.91 per pound metal price, approximately 1,200 tonnes of copper sold at a $3.80 per pound metal prices and 11,200 tonnes of zinc sold at a $1.40 per pound metal price. Trending Highlights (unaudited) 2021 2022 Q3 Q4 Q1 Q2 Q3 Q4 Full Year Operating Data Total tonnes milled 98,010 135,398 136,844 129,099 110,682 116,616 493,241 Average Grade Gold (g/t) 2.68 1.93 3.00 2.63 1.98 2.51 2.56 Silver (g/t) 91 82 81 64 80 109 83 Copper (%) 0.37 0.38 0.41 0.32 0.37 0.45 0.39 Lead (%) 2.29 2.17 1.97 1.99 1.59 1.58 1.80 Zinc (%) 4.79 4.77 4.89 4.00 4.21 4.27 4.36 Metal production (before payable metal deductions) Gold (ozs.) 6,933 6,853 11,187 9,317 5,851 7,767 34,122 Silver (ozs.) 265,829 330,873 332,292 249,088 261,256 370,768 1,213,404 Copper (tonnes) 284 413 431 303 296 406 1,436 Lead (tonnes) 1,808 2,345 2,073 2,020 1,249 1,323 6,665 Zinc (tonnes) 3,920 5,349 5,562 4,282 3,901 4,198 17,943 Metal produced and sold Gold (ozs.) 5,809 6,119 8,381 8,746 5,478 7,514 30,119 Silver (ozs.) 255,394 287,805 265,407 231,622 225,012 335,168 1,057,209 Copper (tonnes) 268 405 408 286 282 372 1,348 Lead (tonnes) 1,550 2,059 1,639 1,755 1,056 941 5,391 Zinc (tonnes) 3,059 4,167 4,359 3,590 2,943 3,265 14,157 Average metal prices realized Gold ($ per oz.) 1,762 1,811 $ 1,898 $ 1,874 $ 1,627 $ 1,734 1,801 Silver ($ per oz.) 23.19 23.51 $ 23.94 $ 22.05 $ 18.54 $ 21.25 21.53 Copper ($ per tonne) 9,092 9,768 $ 10,144 $ 9,275 $ 7,115 $ 8,221 8,795 Lead ($ per tonne) 2,397 2,339 $ 2,347 $ 2,168 $ 1,882 $ 1,954 2,129 Zinc ($ per tonne) 3,032 3,466 $ 3,842 $ 4,338 $ 3,186 $ 2,577 3,539 Precious metal gold equivalent ounces sold Gold Ounces 5,809 6,119 8,381 8,746 5,478 7,514 30,119 Gold Equivalent Ounces from Silver 3,356 3,736 3,348 2,729 2,564 4,107 12,638 Total AuEq oz 9,165 9,855 11,729 11,475 8,042 11,621 42,757 Financial Data ($’s in thousands except for per ounce) Total sales, net $ 29,029 $ 38,063 $ 45,417 $ 37,064 $ 23,869 $ 32,374 $ 138,724 Earnings from mining operations before depreciation and amortization 11,766 17,744 25,281 15,281 4,431 11,981 56,974 Total cash cost after co-product credits per AuEq oz sold 466 73 (121) 247 1,103 842 458 Total all-in sustaining cost after co-product credits per AuEq oz sold 1,031 451 499 799 1,831 1,226 1,022 Production Costs 17,216 20,252 20,074 21,722 19,380 19,773 80,949 Production Costs/Tonnes Milled 176 150 147 168 175 170 164 Earnings before interest, taxes, depreciation, depletion, and amortization 7,402 10,304 15,328 13,716 (3,338) 3,758 29,464 Operating Cash Flows 5,743 12,911 4,230 7,976 (4,292) 6,242 14,156 Net income (loss) 1,529 2,689 4,019 2,673 (9,730) (3,283) (6,321) Earnings per share – basic $ 0.02 $ 0.03 $ 0.05 $ 0.03 ($ 0.11) ($ 0.04) ($ 0.07) Year-End 2022 Conference Call The Company will host a conference call Friday, March 3, 2023, at 10:00 a.m. Eastern Time. Our 2022 Form 10-K will be filed at a future date, no later than March 15, 2023, once our External Audit Firm, BDO USA, LLP, completes their audit procedures. 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, Kim Perry, Chief Financial Officer and Alberto Reyes, Chief Operating 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://viavid.webcasts.com/starthere.jsp?ei=1594268&tp_key=1f4ada6e2c To join the call via telephone, please use the following dial-in details: Participant Toll Free: +1 (888) 886-7786 International: +1 (416) 764-8658 Conference ID: 38298670 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. Forward-Looking Statements: This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words “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, our ability to add to our mineral resource estimate at DDGM in the near- or mid-term; scope and timing of work at the Back Forty Project; and guidance for 2023, including payable production, cash costs after co-product credits, all-in sustaining costs, capital investment, exploration spending, and G&A spending. All forward- looking statements in this press release are based upon information available to Gold Resource Corporation on 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. Also, there can be no assurance that production will continue at any specific rate. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Company’s filings with the SEC. Additional factors that could cause or contribute to such differences include, but are not limited to, volatility in commodity prices; changes in interpretations of geological, metallurgical, mining or processing information; interpretations of the information resulting from exploration, analysis or mining and processing experience; unexpected increases in costs; general economic conditions; and other factors discussed in the periodic and current reports filed by the Company with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. View source version on businesswire.com: https://www.businesswire.com/news/home/20230302005906/en/Contacts Kim Perry Chief Financial Officer Kim.Perry@GRC-USA.com www.GoldResourcecorp.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Gold Resource Corporation Reports Results of Operations for the Year-Ended December 31, 2022 By: Gold Resource Corporation via Business Wire March 02, 2023 at 17:45 PM EST SOLD 42,757 GOLD EQUIVALENT OUNCES, EXCEEDING 2022 GUIDANCE NET LOSSES OF $6.3 MILLION AND EBITDA OF $29.5 MILLION STRONG CASH BALANCE OF $23.7 MILLION AT YEAR END MINERAL RESOURCE AND RESERVES REPLACED 88% AND 74%, RESPECTIVELY 2022 FINANCIAL RESULTS REMAIN UNAUDITED, BDO USA, LLP, STILL TO COMPLETE FINAL AUDIT PROCEDURES AND RESULTS WILL BE RELEASED WITH THE 10-K Gold Resource Corporation (NYSE American: GORO) (the “Company”) sold a total of 30,119 ounces of gold and 1,057,209 ounces of silver in 2022 for a total of 42,757 gold equivalent ounces. Additionally, during the year, the Company sold 14,157 tonnes of zinc, 1,348 tonnes of copper, and 5,391 tonnes of lead. For the year ended December 31, 2022, the company reported a net loss of $6.3 million with revenue of $138.7 million and mine gross profit of $29.7 million from operations. A total of $31.3 million was invested in the Don David Gold Mine and Back Forty Project. Allen Palmiere, President and CEO, said, “Despite global challenges faced this year, such as inflation, and localized challenges such as ground support and ventilation, gold and silver production at the Don David Gold Mine in Mexico still ended the year above guidance. We also made excellent strides with our operations, capital, and exploration programs. The results of the Q4 2022 drilling at DDGM are very promising and have confirmed the ongoing 2023 drill program is on the right track to potentially deliver higher grade resources into the near- and mid-term mine plan. With improved access and ventilation our team can now aggressively continue with the underground infill and expansion drilling to follow-up these positive results. While our grade profile is expected to decline in 2023, we continue to identify and implement productivity improvements. Work continues with the feasibility study to advance the Back Forty Project in Michigan with a deliberate and measured approach. Upon completion, preparation of State of Michigan permits will follow. In both Mexico and Michigan, we are focused on collaborating with local communities to ensure sustainability.” 2022 HIGHLIGHTS Additional highlights for the year ended December 31, 2022, are summarized below: Strategic: Cash inflow of $14.2 million from operating activities for 2022, which included $18.6 million of income tax payments for tax years 2021 and 2022. Distributions to shareholders of $3.5 million in shareholder dividends prior to the February 13th, 2023, announcement of the suspension of future quarterly dividends to protect our balance sheet and to focus capital resources on exploration and growth opportunities. Investments of Canadian dollar (“C$”) 2.4 million (approximately $1.7 million) in Maritime Resources Corp. (TSX-V: MAE.V) (“Maritime”) in exchange for 9.9% of Maritime’s shares in a private placement. Don David Gold Mine: The DDGM safety program aims to bolster the overall health and safety culture of our employees. There were six lost time incidents during 2022. The incidents were thoroughly investigated, and the appropriate actions were taken. The full year lost time injury frequency rate per million hours of 2.5 which is substantially below the 5.7 Camimex (Mexican Chamber of Mines) benchmark. Don David Gold Mine (“DDGM”) total cash costs (after co-product credits) and total all-in sustaining cost per gold equivalent (“AuEq”) ounce sold were $458 and $788, respectively (See “Reconciliation of Non-GAAP Financial Measures” below). During the year, exploration continued to focus on infill drilling with encouraging results from the Arista, Three Sisters, and Switchback vein systems. However, we faced localized ground conditions and ventilation challenges that slowed drift extensions to multiple underground drill stations. Those technical issues have been addressed, and we have commenced step-out drilling in multiple highly prospective areas. Back Forty Project: The feasibility study work for the Back Forty Project in Michigan, USA progressed during 2022. Work related to metallurgy and the economic model will continue with a deliberate and measured approach and is expected to be completed in the first half of 2023. Once the feasibility study is completed, the Company’s Board of Directors will evaluate the current economic climate and make a decision on how to move forward with the permitting and construction of the Back Forty Mine. The Company continues to meet with the community and government agencies to demonstrate the value of this project. Full Year 2022 Financial Results Financial Measures (Unaudited) ($’s in millions) Cash balance at December 31, 2022 $23.7 For the Year Ended December 31, 2022 Cash from continuing operating activities $14.2 Net loss $(6.3) Net sales $138.7 Production costs $80.9 Depreciation, amortization, & reclamation $28.0 Mining gross profit $29.7 EBITDA $29.5 2022 Capital and Exploration Investment Summary For the year ended December 31, 2022 (in thousands) Sustaining Investments: Underground Development Capital $ 6,619 Underground Exploration Development Capital 3,034 Infill Drilling Capital 3,459 Other Sustaining Capital Capital 3,227 Growth Investments: Surface Exploration & Other Exploration 1,929 Underground Exploration Drilling Exploration 2,315 Back Forty Feasibility Study & Permits Exploration 8,805 Gold Regrind Capital 745 Dry Stack Completion Capital 1,149 Total Capital and Exploration: $ 31,282 Reconciliations of Non-GAAP Financial Measures The calculations of cash cost after co-product credits per gold equivalent ounce and all-in sustaining cost after co-product credits per AuEq ounce are non-GAAP financial measures. The following table reconciles these non-GAAP measures to GAAP measures: For the year ended December 31, 2022 2021 (in thousands, except per oz) Gold equivalent ounces sold (oz) 42,757 37,526 Total production $ 80,949 $ 72,234 Treatment and refining charges 12,072 11,485 Co-product credits (73,442 ) (69,061 ) Total cash cost after co-product credits 19,579 14,658 Total cash cost after co-product credits per AuEq oz sold $ 458 $ 391 Sustaining - capitalized expenditure 13,305 11,307 Reclamation and remediation 801 219 Subtotal of DDGM sustaining costs 14,106 11,526 DDGM all-in sustaining cost after co-product credits per AuEq oz sold $ 788 $ 698 Sustaining - general and administrative, including stock-based compensation expenses 10,003 7,775 Consolidated all-in sustaining cost after co-product credits 43,688 33,959 Total consolidated all-in sustaining cost after co-product credits per AuEq oz sold $ 1,022 $ 905 Non-sustaining cost- capital expenditure 1,894 9,303 Non-sustaining cost- exploration expenditure 13,049 4,886 Subtotal of non-sustaining costs 14,943 14,189 Total all-in cost after co-product credits 58,631 48,148 Total all-in cost after co-product credits per AuEq oz sold $ 1,371 $ 1,283 2023 Guidance The Company’s focus continues to be on unlocking the value of the Don David Gold Mine, existing infrastructure, and large property position in Oaxaca, Mexico and therefore we plan to make significant investments for infrastructure and exploration in 2023. Measure 2023 Guidance Payable Production 17,000 to 19,000 Gold Ounces 900,000 to 1,000,000 Silver Ounces 30,000 to 31,000 Gold Equivalent Ounces Cash Costs after co-product credits per gold AuEq ounce (1) (2) $1,000 to $1,050 All-in Sustaining Costs after co-product credits per AuEq ounce (1) (2) $1,250 to $1,350 (DDGM) $1,650 to $1,750 (Consolidated) Capital Investment $6 to $7 million Exploration Commitment $3 to $4 million Sustaining $6 to $7 million Growth G & A, excluding Stock-based Compensation $8.5 million to $9.5 million (1) Calculations of cost after co-product credits per gold equivalent ounce and all-in sustaining cost after co-product credits per AuEq ounce are non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” above. (2) Co-product credits directly impact the Cash Costs and All-in Sustaining Costs per AuEq ounce calculation. Guidance is based on approximately 4,200 tonnes of lead sold at an $0.91 per pound metal price, approximately 1,200 tonnes of copper sold at a $3.80 per pound metal prices and 11,200 tonnes of zinc sold at a $1.40 per pound metal price. Trending Highlights (unaudited) 2021 2022 Q3 Q4 Q1 Q2 Q3 Q4 Full Year Operating Data Total tonnes milled 98,010 135,398 136,844 129,099 110,682 116,616 493,241 Average Grade Gold (g/t) 2.68 1.93 3.00 2.63 1.98 2.51 2.56 Silver (g/t) 91 82 81 64 80 109 83 Copper (%) 0.37 0.38 0.41 0.32 0.37 0.45 0.39 Lead (%) 2.29 2.17 1.97 1.99 1.59 1.58 1.80 Zinc (%) 4.79 4.77 4.89 4.00 4.21 4.27 4.36 Metal production (before payable metal deductions) Gold (ozs.) 6,933 6,853 11,187 9,317 5,851 7,767 34,122 Silver (ozs.) 265,829 330,873 332,292 249,088 261,256 370,768 1,213,404 Copper (tonnes) 284 413 431 303 296 406 1,436 Lead (tonnes) 1,808 2,345 2,073 2,020 1,249 1,323 6,665 Zinc (tonnes) 3,920 5,349 5,562 4,282 3,901 4,198 17,943 Metal produced and sold Gold (ozs.) 5,809 6,119 8,381 8,746 5,478 7,514 30,119 Silver (ozs.) 255,394 287,805 265,407 231,622 225,012 335,168 1,057,209 Copper (tonnes) 268 405 408 286 282 372 1,348 Lead (tonnes) 1,550 2,059 1,639 1,755 1,056 941 5,391 Zinc (tonnes) 3,059 4,167 4,359 3,590 2,943 3,265 14,157 Average metal prices realized Gold ($ per oz.) 1,762 1,811 $ 1,898 $ 1,874 $ 1,627 $ 1,734 1,801 Silver ($ per oz.) 23.19 23.51 $ 23.94 $ 22.05 $ 18.54 $ 21.25 21.53 Copper ($ per tonne) 9,092 9,768 $ 10,144 $ 9,275 $ 7,115 $ 8,221 8,795 Lead ($ per tonne) 2,397 2,339 $ 2,347 $ 2,168 $ 1,882 $ 1,954 2,129 Zinc ($ per tonne) 3,032 3,466 $ 3,842 $ 4,338 $ 3,186 $ 2,577 3,539 Precious metal gold equivalent ounces sold Gold Ounces 5,809 6,119 8,381 8,746 5,478 7,514 30,119 Gold Equivalent Ounces from Silver 3,356 3,736 3,348 2,729 2,564 4,107 12,638 Total AuEq oz 9,165 9,855 11,729 11,475 8,042 11,621 42,757 Financial Data ($’s in thousands except for per ounce) Total sales, net $ 29,029 $ 38,063 $ 45,417 $ 37,064 $ 23,869 $ 32,374 $ 138,724 Earnings from mining operations before depreciation and amortization 11,766 17,744 25,281 15,281 4,431 11,981 56,974 Total cash cost after co-product credits per AuEq oz sold 466 73 (121) 247 1,103 842 458 Total all-in sustaining cost after co-product credits per AuEq oz sold 1,031 451 499 799 1,831 1,226 1,022 Production Costs 17,216 20,252 20,074 21,722 19,380 19,773 80,949 Production Costs/Tonnes Milled 176 150 147 168 175 170 164 Earnings before interest, taxes, depreciation, depletion, and amortization 7,402 10,304 15,328 13,716 (3,338) 3,758 29,464 Operating Cash Flows 5,743 12,911 4,230 7,976 (4,292) 6,242 14,156 Net income (loss) 1,529 2,689 4,019 2,673 (9,730) (3,283) (6,321) Earnings per share – basic $ 0.02 $ 0.03 $ 0.05 $ 0.03 ($ 0.11) ($ 0.04) ($ 0.07) Year-End 2022 Conference Call The Company will host a conference call Friday, March 3, 2023, at 10:00 a.m. Eastern Time. Our 2022 Form 10-K will be filed at a future date, no later than March 15, 2023, once our External Audit Firm, BDO USA, LLP, completes their audit procedures. 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, Kim Perry, Chief Financial Officer and Alberto Reyes, Chief Operating 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://viavid.webcasts.com/starthere.jsp?ei=1594268&tp_key=1f4ada6e2c To join the call via telephone, please use the following dial-in details: Participant Toll Free: +1 (888) 886-7786 International: +1 (416) 764-8658 Conference ID: 38298670 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. Forward-Looking Statements: This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words “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, our ability to add to our mineral resource estimate at DDGM in the near- or mid-term; scope and timing of work at the Back Forty Project; and guidance for 2023, including payable production, cash costs after co-product credits, all-in sustaining costs, capital investment, exploration spending, and G&A spending. All forward- looking statements in this press release are based upon information available to Gold Resource Corporation on 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. Also, there can be no assurance that production will continue at any specific rate. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Company’s filings with the SEC. Additional factors that could cause or contribute to such differences include, but are not limited to, volatility in commodity prices; changes in interpretations of geological, metallurgical, mining or processing information; interpretations of the information resulting from exploration, analysis or mining and processing experience; unexpected increases in costs; general economic conditions; and other factors discussed in the periodic and current reports filed by the Company with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. View source version on businesswire.com: https://www.businesswire.com/news/home/20230302005906/en/Contacts Kim Perry Chief Financial Officer Kim.Perry@GRC-USA.com www.GoldResourcecorp.com
SOLD 42,757 GOLD EQUIVALENT OUNCES, EXCEEDING 2022 GUIDANCE NET LOSSES OF $6.3 MILLION AND EBITDA OF $29.5 MILLION STRONG CASH BALANCE OF $23.7 MILLION AT YEAR END MINERAL RESOURCE AND RESERVES REPLACED 88% AND 74%, RESPECTIVELY 2022 FINANCIAL RESULTS REMAIN UNAUDITED, BDO USA, LLP, STILL TO COMPLETE FINAL AUDIT PROCEDURES AND RESULTS WILL BE RELEASED WITH THE 10-K
Gold Resource Corporation (NYSE American: GORO) (the “Company”) sold a total of 30,119 ounces of gold and 1,057,209 ounces of silver in 2022 for a total of 42,757 gold equivalent ounces. Additionally, during the year, the Company sold 14,157 tonnes of zinc, 1,348 tonnes of copper, and 5,391 tonnes of lead. For the year ended December 31, 2022, the company reported a net loss of $6.3 million with revenue of $138.7 million and mine gross profit of $29.7 million from operations. A total of $31.3 million was invested in the Don David Gold Mine and Back Forty Project. Allen Palmiere, President and CEO, said, “Despite global challenges faced this year, such as inflation, and localized challenges such as ground support and ventilation, gold and silver production at the Don David Gold Mine in Mexico still ended the year above guidance. We also made excellent strides with our operations, capital, and exploration programs. The results of the Q4 2022 drilling at DDGM are very promising and have confirmed the ongoing 2023 drill program is on the right track to potentially deliver higher grade resources into the near- and mid-term mine plan. With improved access and ventilation our team can now aggressively continue with the underground infill and expansion drilling to follow-up these positive results. While our grade profile is expected to decline in 2023, we continue to identify and implement productivity improvements. Work continues with the feasibility study to advance the Back Forty Project in Michigan with a deliberate and measured approach. Upon completion, preparation of State of Michigan permits will follow. In both Mexico and Michigan, we are focused on collaborating with local communities to ensure sustainability.” 2022 HIGHLIGHTS Additional highlights for the year ended December 31, 2022, are summarized below: Strategic: Cash inflow of $14.2 million from operating activities for 2022, which included $18.6 million of income tax payments for tax years 2021 and 2022. Distributions to shareholders of $3.5 million in shareholder dividends prior to the February 13th, 2023, announcement of the suspension of future quarterly dividends to protect our balance sheet and to focus capital resources on exploration and growth opportunities. Investments of Canadian dollar (“C$”) 2.4 million (approximately $1.7 million) in Maritime Resources Corp. (TSX-V: MAE.V) (“Maritime”) in exchange for 9.9% of Maritime’s shares in a private placement. Don David Gold Mine: The DDGM safety program aims to bolster the overall health and safety culture of our employees. There were six lost time incidents during 2022. The incidents were thoroughly investigated, and the appropriate actions were taken. The full year lost time injury frequency rate per million hours of 2.5 which is substantially below the 5.7 Camimex (Mexican Chamber of Mines) benchmark. Don David Gold Mine (“DDGM”) total cash costs (after co-product credits) and total all-in sustaining cost per gold equivalent (“AuEq”) ounce sold were $458 and $788, respectively (See “Reconciliation of Non-GAAP Financial Measures” below). During the year, exploration continued to focus on infill drilling with encouraging results from the Arista, Three Sisters, and Switchback vein systems. However, we faced localized ground conditions and ventilation challenges that slowed drift extensions to multiple underground drill stations. Those technical issues have been addressed, and we have commenced step-out drilling in multiple highly prospective areas. Back Forty Project: The feasibility study work for the Back Forty Project in Michigan, USA progressed during 2022. Work related to metallurgy and the economic model will continue with a deliberate and measured approach and is expected to be completed in the first half of 2023. Once the feasibility study is completed, the Company’s Board of Directors will evaluate the current economic climate and make a decision on how to move forward with the permitting and construction of the Back Forty Mine. The Company continues to meet with the community and government agencies to demonstrate the value of this project. Full Year 2022 Financial Results Financial Measures (Unaudited) ($’s in millions) Cash balance at December 31, 2022 $23.7 For the Year Ended December 31, 2022 Cash from continuing operating activities $14.2 Net loss $(6.3) Net sales $138.7 Production costs $80.9 Depreciation, amortization, & reclamation $28.0 Mining gross profit $29.7 EBITDA $29.5 2022 Capital and Exploration Investment Summary For the year ended December 31, 2022 (in thousands) Sustaining Investments: Underground Development Capital $ 6,619 Underground Exploration Development Capital 3,034 Infill Drilling Capital 3,459 Other Sustaining Capital Capital 3,227 Growth Investments: Surface Exploration & Other Exploration 1,929 Underground Exploration Drilling Exploration 2,315 Back Forty Feasibility Study & Permits Exploration 8,805 Gold Regrind Capital 745 Dry Stack Completion Capital 1,149 Total Capital and Exploration: $ 31,282 Reconciliations of Non-GAAP Financial Measures The calculations of cash cost after co-product credits per gold equivalent ounce and all-in sustaining cost after co-product credits per AuEq ounce are non-GAAP financial measures. The following table reconciles these non-GAAP measures to GAAP measures: For the year ended December 31, 2022 2021 (in thousands, except per oz) Gold equivalent ounces sold (oz) 42,757 37,526 Total production $ 80,949 $ 72,234 Treatment and refining charges 12,072 11,485 Co-product credits (73,442 ) (69,061 ) Total cash cost after co-product credits 19,579 14,658 Total cash cost after co-product credits per AuEq oz sold $ 458 $ 391 Sustaining - capitalized expenditure 13,305 11,307 Reclamation and remediation 801 219 Subtotal of DDGM sustaining costs 14,106 11,526 DDGM all-in sustaining cost after co-product credits per AuEq oz sold $ 788 $ 698 Sustaining - general and administrative, including stock-based compensation expenses 10,003 7,775 Consolidated all-in sustaining cost after co-product credits 43,688 33,959 Total consolidated all-in sustaining cost after co-product credits per AuEq oz sold $ 1,022 $ 905 Non-sustaining cost- capital expenditure 1,894 9,303 Non-sustaining cost- exploration expenditure 13,049 4,886 Subtotal of non-sustaining costs 14,943 14,189 Total all-in cost after co-product credits 58,631 48,148 Total all-in cost after co-product credits per AuEq oz sold $ 1,371 $ 1,283 2023 Guidance The Company’s focus continues to be on unlocking the value of the Don David Gold Mine, existing infrastructure, and large property position in Oaxaca, Mexico and therefore we plan to make significant investments for infrastructure and exploration in 2023. Measure 2023 Guidance Payable Production 17,000 to 19,000 Gold Ounces 900,000 to 1,000,000 Silver Ounces 30,000 to 31,000 Gold Equivalent Ounces Cash Costs after co-product credits per gold AuEq ounce (1) (2) $1,000 to $1,050 All-in Sustaining Costs after co-product credits per AuEq ounce (1) (2) $1,250 to $1,350 (DDGM) $1,650 to $1,750 (Consolidated) Capital Investment $6 to $7 million Exploration Commitment $3 to $4 million Sustaining $6 to $7 million Growth G & A, excluding Stock-based Compensation $8.5 million to $9.5 million (1) Calculations of cost after co-product credits per gold equivalent ounce and all-in sustaining cost after co-product credits per AuEq ounce are non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” above. (2) Co-product credits directly impact the Cash Costs and All-in Sustaining Costs per AuEq ounce calculation. Guidance is based on approximately 4,200 tonnes of lead sold at an $0.91 per pound metal price, approximately 1,200 tonnes of copper sold at a $3.80 per pound metal prices and 11,200 tonnes of zinc sold at a $1.40 per pound metal price. Trending Highlights (unaudited) 2021 2022 Q3 Q4 Q1 Q2 Q3 Q4 Full Year Operating Data Total tonnes milled 98,010 135,398 136,844 129,099 110,682 116,616 493,241 Average Grade Gold (g/t) 2.68 1.93 3.00 2.63 1.98 2.51 2.56 Silver (g/t) 91 82 81 64 80 109 83 Copper (%) 0.37 0.38 0.41 0.32 0.37 0.45 0.39 Lead (%) 2.29 2.17 1.97 1.99 1.59 1.58 1.80 Zinc (%) 4.79 4.77 4.89 4.00 4.21 4.27 4.36 Metal production (before payable metal deductions) Gold (ozs.) 6,933 6,853 11,187 9,317 5,851 7,767 34,122 Silver (ozs.) 265,829 330,873 332,292 249,088 261,256 370,768 1,213,404 Copper (tonnes) 284 413 431 303 296 406 1,436 Lead (tonnes) 1,808 2,345 2,073 2,020 1,249 1,323 6,665 Zinc (tonnes) 3,920 5,349 5,562 4,282 3,901 4,198 17,943 Metal produced and sold Gold (ozs.) 5,809 6,119 8,381 8,746 5,478 7,514 30,119 Silver (ozs.) 255,394 287,805 265,407 231,622 225,012 335,168 1,057,209 Copper (tonnes) 268 405 408 286 282 372 1,348 Lead (tonnes) 1,550 2,059 1,639 1,755 1,056 941 5,391 Zinc (tonnes) 3,059 4,167 4,359 3,590 2,943 3,265 14,157 Average metal prices realized Gold ($ per oz.) 1,762 1,811 $ 1,898 $ 1,874 $ 1,627 $ 1,734 1,801 Silver ($ per oz.) 23.19 23.51 $ 23.94 $ 22.05 $ 18.54 $ 21.25 21.53 Copper ($ per tonne) 9,092 9,768 $ 10,144 $ 9,275 $ 7,115 $ 8,221 8,795 Lead ($ per tonne) 2,397 2,339 $ 2,347 $ 2,168 $ 1,882 $ 1,954 2,129 Zinc ($ per tonne) 3,032 3,466 $ 3,842 $ 4,338 $ 3,186 $ 2,577 3,539 Precious metal gold equivalent ounces sold Gold Ounces 5,809 6,119 8,381 8,746 5,478 7,514 30,119 Gold Equivalent Ounces from Silver 3,356 3,736 3,348 2,729 2,564 4,107 12,638 Total AuEq oz 9,165 9,855 11,729 11,475 8,042 11,621 42,757 Financial Data ($’s in thousands except for per ounce) Total sales, net $ 29,029 $ 38,063 $ 45,417 $ 37,064 $ 23,869 $ 32,374 $ 138,724 Earnings from mining operations before depreciation and amortization 11,766 17,744 25,281 15,281 4,431 11,981 56,974 Total cash cost after co-product credits per AuEq oz sold 466 73 (121) 247 1,103 842 458 Total all-in sustaining cost after co-product credits per AuEq oz sold 1,031 451 499 799 1,831 1,226 1,022 Production Costs 17,216 20,252 20,074 21,722 19,380 19,773 80,949 Production Costs/Tonnes Milled 176 150 147 168 175 170 164 Earnings before interest, taxes, depreciation, depletion, and amortization 7,402 10,304 15,328 13,716 (3,338) 3,758 29,464 Operating Cash Flows 5,743 12,911 4,230 7,976 (4,292) 6,242 14,156 Net income (loss) 1,529 2,689 4,019 2,673 (9,730) (3,283) (6,321) Earnings per share – basic $ 0.02 $ 0.03 $ 0.05 $ 0.03 ($ 0.11) ($ 0.04) ($ 0.07) Year-End 2022 Conference Call The Company will host a conference call Friday, March 3, 2023, at 10:00 a.m. Eastern Time. Our 2022 Form 10-K will be filed at a future date, no later than March 15, 2023, once our External Audit Firm, BDO USA, LLP, completes their audit procedures. 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, Kim Perry, Chief Financial Officer and Alberto Reyes, Chief Operating 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://viavid.webcasts.com/starthere.jsp?ei=1594268&tp_key=1f4ada6e2c To join the call via telephone, please use the following dial-in details: Participant Toll Free: +1 (888) 886-7786 International: +1 (416) 764-8658 Conference ID: 38298670 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. Forward-Looking Statements: This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words “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, our ability to add to our mineral resource estimate at DDGM in the near- or mid-term; scope and timing of work at the Back Forty Project; and guidance for 2023, including payable production, cash costs after co-product credits, all-in sustaining costs, capital investment, exploration spending, and G&A spending. All forward- looking statements in this press release are based upon information available to Gold Resource Corporation on 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. Also, there can be no assurance that production will continue at any specific rate. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Company’s filings with the SEC. Additional factors that could cause or contribute to such differences include, but are not limited to, volatility in commodity prices; changes in interpretations of geological, metallurgical, mining or processing information; interpretations of the information resulting from exploration, analysis or mining and processing experience; unexpected increases in costs; general economic conditions; and other factors discussed in the periodic and current reports filed by the Company with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. 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