GORO Gold Resource Corporation

Maintains 2023 Production Guidance

Gold Resource Corporation (NYSE American: GORO) (the “Company”) is pleased to announce its mid-year and quarterly operational results from its Don David Gold Mine (DDGM) near Oaxaca, Mexico, and a corporate update on its other activities.

Year to Date Highlights Include:

• Produced and sold 10,795 ounces of gold and 569,072 ounces of silver
• Produced and sold 6,201 tonnes of zinc, 659 tonnes of copper, and 2,734 tonnes of lead
• Total cash cost after co-product credits for the quarter was $1,333 per gold equivalent ounce
• Cash balance of $18 million with no debt and working capital of $20.8 million at June 30, 2023

“While our quarterly results are lower when compared to last year’s environment of higher base metal prices, our operational results to date remain in line with our 2023 mine plan and guidance,” stated Allen Palmiere, President and CEO for the Company. “Factors that are out of our control and affect our bottom line include a strengthening Mexican Peso to the US dollar, increased local power costs and lower metal prices for our co-product metals of copper, lead and zinc. To offset these factors, we continue to identify and implement opportunities for other cost reductions and operational efficiencies. We are pleased to report that we continue to have encouraging drill results from our underground exploration program at DDGM with the goal to increase the average grade of our life of mine resources and that of our 2024 mine plan.”

Second Quarter Operational Results

Don David Gold Mine

• No lost time incidents during the quarter. Our year-to-date LTIFR safety record is 0.22 as compared to the Mexican average of 0.88 (in US equivalent). Safety at Gold Resource Corporation is paramount. Even with a good track record at the Don David Gold Mine (“DDGM”), the Company continues to strive each quarter for improved measures, awareness, and training.
• The DDGM diamond drilling program has progressed as planned during the second quarter with encouraging results. Drilling continues to advance at DDGM on two fronts: (1) Infill drilling with the objective of upgrading defined Inferred resources to the Indicated category; and (2) Exploration drilling with the objective of identifying additional Inferred resources via step-out drilling along the South Soledad, Sagrario, Marena and Three Sisters vein systems, as well as on the recently identified Gloria vein system.

Back Forty Project

• Optimization work related to the metallurgy and the economic model for the Back Forty Project in Michigan, USA is near completion. The Company plans to release these updated results in a report during the third quarter.
• Updated site layout designs have focused on little to no impact on wetlands and being fully protective of the environment. The U.S. Supreme Court ruling in Sackett v. Environmental Protection Agency limits the federal government’s authority with regards to wetlands and will likely result in not needing a “dredge and fill” wetland permit. The “drawdown” of wetlands will be regulated by Michigan State authorities.

Financial

• Total cash cost after co-product credits for the quarter was $1,333 per gold equivalent (“AuEq”) ounce and total all-in sustaining cost (“AISC”) after co-product credits for the quarter was $1,990 per AuEq ounce. Although the year-to-date total cash cost after co-product credits of $979 and total AISC after co-product credits of $1,551 are within guidance, the strengthening of the peso and lower zinc prices may result in needing to revise the full year guidance later in the year. (See Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Measures below for a reconciliation of non-GAAP measures to applicable GAAP measures).
• The Company’s At The Market Offering Agreement with H.C. Wainwright & Co., LLC (the “Agent”), which was entered into in November 2019 (the “ATM Agreement”), pursuant to which the Agent agreed to act as the Company’s sales agent with respect to the offer and sale from time to time of the Company’s common stock having an aggregate gross sales price of up to $75.0 million was renewed in June 2023.

2023 Capital and Exploration Investment Summary

 

 

 

 

 

 

 

 

 

For the six months ended June 30, 2023

 

2023 full year guidance

 

 

(in thousands)

 

Sustaining Investments:

 

 

 

 

 

 

Underground Development

Capital

$

2,362

 

 

 

Infill Drilling

Capitalized Exploration

 

1,785

 

 

 

Other Sustaining Capital

Capital

 

628

 

 

 

Surface and Underground Exploration Development & Other

Capitalized Exploration

 

1,079

 

 

 

Subtotal of Sustaining Investments:

 

 

5,854

 

$

9 - 11 million

Growth Investments:

 

 

 

 

 

 

DDGM growth:

 

 

 

 

 

 

Surface Exploration / Other

Exploration

 

1,139

 

 

 

Underground Exploration Drilling

Exploration

 

1,295

 

 

 

Underground Exploration Development

Capitalized Exploration

 

147

 

 

 

Back Forty growth:

 

 

 

 

 

 

Back Forty Project Optimization & Permitting

Exploration

 

845

 

 

 

Subtotal of Growth Investments:

 

 

3,426

 

$

6 - 7 million

Total Capital and Exploration:

 

$

9,280

 

$

15 - 18 million

 

Trending Highlights

2022

2023

 

Q1

Q2

Q3

Q4

Q1

Q2

Operating Data

 

 

 

 

 

 

 

Total tonnes milled

136,844

129,099

110,682

116,616

117,781

113,510

Average Grade

 

 

 

 

 

-

 

Gold (g/t)

3.00

2.63

1.98

2.51

2.33

1.59

Silver (g/t)

81

64

80

109

 

94

86

Copper (%)

0.41

0.32

0.37

0.45

0.37

0.37

Lead (%)

1.97

1.99

1.59

1.58

 

1.73

1.64

Zinc (%)

4.89

4.00

4.21

4.27

3.88

3.72

Metal production (before payable metal deductions)

 

 

 

 

 

 

 

Gold (ozs.)

11,187

9,317

5,851

7,767

7,171

4,637

Silver (ozs.)

332,292

249,088

261,256

370,768

 

322,676

289,816

Copper (tonnes)

431

303

296

406

336

334

Lead (tonnes)

2,073

2,020

1,249

1,323

 

1,559

1,389

Zinc (tonnes)

5,562

4,282

3,901

4,198

3,837

3,569

Metal produced and sold

 

 

 

 

 

 

 

Gold (ozs.)

8,381

8,746

5,478

7,514

6,508

4,287

Silver (ozs.)

265,407

231,622

225,012

335,168

 

294,815

274,257

Copper (tonnes)

408

286

282

372

332

327

Lead (tonnes)

1,639

1,755

1,056

941

 

1,417

1,317

Zinc (tonnes)

4,359

3,590

2,943

3,265

3,060

3,141

Average metal prices realized

 

 

 

 

 

 

 

Gold ($ per oz.)

$ 1,898

$ 1,874

$ 1,627

$ 1,734

$ 1,915

$ 2,010

Silver ($ per oz.)

$ 23.94

$ 22.05

$ 18.54

$ 21.25

 

$ 23.04

$ 24.93

Copper ($ per tonne)

$ 10,144

$ 9,275

$ 7,115

$ 8,221

$ 9,172

$ 8,397

Lead ($ per tonne)

$ 2,347

$ 2,168

$ 1,882

$ 1,954

 

$ 2,158

$ 2,153

Zinc ($ per tonne)

$ 3,842

$ 4,338

$ 3,186

$ 2,577

$ 3,195

$ 2,485

Gold equivalent ounces sold

 

 

 

 

 

-

 

Gold Ounces

8,381

8,746

5,478

7,514

6,508

4,287

Gold Equivalent Ounces from Silver

3,348

2,729

2,564

4,107

 

3,547

3,402

Total AuEq oz

11,729

11,475

8,042

11,621

10,055

7,689

Financial Data ($'s in thousands except for per ounce)

 

 

 

 

 

 

 

Total sales, net

$ 45,417

$ 37,064

$ 23,869

$ 32,374

$ 31,228

$ 24,807

Total cash cost after co-product credits per AuEq oz sold

$ (163)

$ 247

$ 1,103

$ 842

 

$ 711

$ 1,333

Total consolidated all-in sustaining cost after co-product credits per AuEq oz sold

$ 462

$ 799

$ 1,831

$ 1,226

$ 1,221

$ 1,990

Production Costs

$ 20,074

$ 21,722

$ 19,380

$ 19,773

 

$ 19,850

$ 20,302

Production Costs/Tonnes Milled

$ 147

$ 168

$ 175

$ 170

$ 169

$ 179

Operating Cash Flows

$ 4,230

$ 7,976

$ (4,292)

$ 6,243

 

$ 1,024

$ (551)

Net income (loss)

$ 4,019

$ 2,673

$ (9,730)

$ (3,283)

$ (1,035)

$ (4,584)

Earnings (loss) per share - basic

$ 0.05

$ 0.03

$ (0.11)

$ (0.04)

 

$ (0.01)

$ (0.05)

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.

Q2 2023 Conference Call

The Company will host a conference call Thursday, July 27, 2023 at 10:00 a.m. Mountain Time.

The conference call will be recorded and posted to the Company’s website later in the day following the conclusion of the call. Following prepared remarks, Allen Palmiere, President and Chief Executive Officer, Alberto Reyes, Chief Operating Officer and Kim Perry, Chief Financial Officer will host a live question and answer (Q&A) session. There are two ways to join the conference call.

To join the conference via webcast, please click on the following link: https://viavid.webcasts.com/starthere.jsp?ei=1624501&tp_key=3623edd13a

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:

11731488

Please connect to the conference call at least 10 minutes prior to the start time using one of the connection options listed above.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230726190363/en/

Kim Perry Chief Financial Officer Kim.Perry@GRC-USA.com www.GoldResourcecorp.com