Gold Resource Corporation Announces Preliminary Fourth Quarter and Year-End Results

Rhea-AI Summary

Gold Resource Corporation (GORO) announces preliminary fourth quarter results, including the sale of 3,757 ounces of gold and 258,252 ounces of silver. The company sold 2,182 tonnes of zinc, 327 tonnes of copper, and 820 tonnes of lead. The president and CEO stated that production was lower due to lower average grades but the 2023 drill program showed positive results. The company faced challenges with lower metal prices and a strong Mexican peso against the US Dollar. The conference call will be held on March 14, 2024, to discuss the results.

Insights

Financial Analyst

The disclosed preliminary quarterly results of Gold Resource Corporation indicate a decrease in production and sales volumes compared to the previous year. The reduction in gold and silver ounces sold, as well as base metals like zinc, copper and lead, could signal a potential impact on the company's revenue and profitability for the quarter. The average realized prices for gold have improved, which may have partially offset the decline in volumes. However, the persistently strong Mexican peso against the US Dollar could negatively affect the cost structure and margins, given that the company's operations are in Mexico.

Investors should consider the company's efforts in cost reduction and operational efficiencies, which might enhance future financial performance. Furthermore, the 2023 drill program's positive results could signify potential for resource and reserve expansion, laying the groundwork for future production increases. Such developments are crucial for long-term value creation and may influence investor sentiment despite short-term challenges.

Market Research Analyst

From a market perspective, the performance of Gold Resource Corporation must be contextualized within the broader trends in commodity markets. The reported lower metal prices for most commodities, except gold, align with recent market fluctuations, potentially affecting investor confidence in the mining sector. The strong performance of gold towards the end of the year reflects its status as a safe-haven asset amidst economic uncertainty, which could be a favorable factor for companies with significant gold production.

It's important to monitor the company's future production and cost guidance, as these factors will likely influence stock performance. The company's ability to navigate the complex interplay of metal prices and currency exchange rates will be critical in maintaining competitive advantage and attracting investment.

Mining Industry Analyst

Within the mining industry, the grades of ore processed are a key determinant of production efficiency and cost-effectiveness. Gold Resource Corporation's reported decline in average grades is consistent with their mine plan, yet it remains a concern as lower grades typically result in higher costs per ounce of metal produced. The company's focus on identifying cost reduction opportunities and operational efficiencies are essential strategies to mitigate the impact of lower grades.

The positive exploration results are indicative of the company's potential to replenish and expand its mineral reserves. This is a critical aspect of sustainability for any mining company, as it ensures the longevity of production capabilities. Stakeholders should closely follow these developments, as reserve expansions can significantly impact future production profiles and investment attractiveness.

DENVER--(BUSINESS WIRE)-- Gold Resource Corporation (NYSE American: GORO) (the “Company”) announces its preliminary fourth quarter results that includes the sale of 3,757 ounces of gold and 258,252 ounces of silver resulting in total gold equivalent (AuEq) ounces of 6,768. Additionally, the company sold 2,182 tonnes of zinc, 327 tonnes of copper, and 820 tonnes of lead. During the year ending December 31, 2023, the company sold 31,085 AuEq ounces, 10,954 tonnes of zinc, 1,231 tonnes of copper, and 4,501 tonnes of lead.

“Production during the quarter was lower than the last four quarters mainly due to lower average grades as was expected in our 2023 mine plan. We continue to identify and implement opportunities for cost reductions and operational efficiencies. Our 2023 drill program resulted in encouraging positive results that demonstrate the potential to increase our resources and reserves that could lead to future increased production¹,” stated Allen Palmiere, President and CEO. “The last quarter has continued to present challenges beyond our control as the most metal prices have continued to be lower than planned and the Mexican peso has remained strong against the US Dollar. We did see an increase above plan in the gold price towards the end of the year which has helped to relieve some of the negative pressure from other metal prices.”

Sales Statistics		Three months ended December 31,				Twelve months ended December 31,
		2023		2022		2023		2022
Metal sold
Gold (ozs.)		3,757		7,514		18,534		30,119
Silver (ozs.)		258,252		335,168		1,036,229		1,057,209
Copper (tones)		327		372		1,231		1,348
Lead (tonnes)		820		941		4,501		5,391
Zinc (tonnes)		2,182		3,265		10,954		14,157
Average metal prices realized(2)
Gold ($ per oz.)		1,985		1,734		1,955		1,801
Silver ($ per oz.)		23.14		21.25		23.68		21.53
Copper ($ per tonne)		8,205		8,221		8,513		8,795
Lead ($ per tonne)		2,122		1,954		2,158		2,129
Zinc ($ per tonne)		2,516		2,577		2,621		3,539
Precious metal gold equivalent ounces sold
Gold Ounces		3,757		7,514		18,534		30,119
Gold Equivalent Ounces from Silver		3,011		4,107		12,551		12,638
Total AuEq Ounces		6,768		11,621		31,085		42,757

 

Trending Production Statistics		For the three months ended:
		Q3 2022		Q4 2022		Q1 2023		Q2 2023		Q3 2023		Q4 2023
Arista Mine
Tonnes Milled		110,682		116,616		116,721		113,510		116,626		111,255
Average Gold Grade (g/t)		1.98		2.51		2.33		1.59		1.52		1.44
Average Silver Grade (g/t)		80		109		94		86		73		85
Average Copper Grade (%)		0.37		0.45		0.37		0.37		0.32		0.39
Average Lead Grade (%)		1.59		1.58		1.73		1.64		1.29		1.39
Average Zinc Grade (%)		4.21		4.27		3.88		3.72		3.24		2.95
Combined
Tonnes milled(3)		110,682		116,616		117,781		113,510		116,626		111,255
Tonnes Milled per Day(4)		1,361		1,389		1,420		1,395		1,557		1,379
Metal production (before payable metal deductions)(5)
Gold (ozs.)		5,851		7,767		7,171		4,637		4,443		4,077
Silver (ozs.)		261,256		370,768		322,676		289,816		247,159		282,488
Copper (tonnes)		296		406		336		334		276		341
Lead (tonnes)		1,249		1,323		1,559		1,389		1,048		1,072
Zinc (tonnes)		3,901		4,198		3,837		3,569		3,223		2,884

Year-End 2023 Conference Call

The Company will host a conference call Thursday, March 14, 2024 at 10:00 a.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: https://onlinexperiences.com/Launch/QReg/ShowUUID=F24608AC-00ED-4198-B37C-E83FCE95DDEB

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: 34193701

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. The company’s focus is to unlock the significant upside potential of its existing infrastructure and large land position surrounding the Don David mine 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.

¹ See the press release titled “Gold Resource Corporation Reports Continued Positive Drill Results at Don David Gold Mine” published September 12, 2023. The press release can be found at https://goldresourcecorp.com/news-releases/gold-resource-corporation-reports-continued-positi-6343/.
² Average metal prices realized vary from the market metal prices due to final settlement adjustments from our provisional invoices. Our average metal prices realized will therefore differ from the average market metal prices in most cases.
³ Combined tonnes in Q1 and Q2 2022 and Q1 2023 includes 1,043, 215, and 1,060 purchased tonnes, respectively, related to a collaborative initiative with a local community to ensure the proper environmental treatment and storage of the material.
⁴ Based on actual days the mill operated during the period.
⁵ The difference between what we report as "Metal Production" and "Metal Sold" is attributable to the difference between the quantities of metals contained in the concentrates we produce versus the portion of those metals actually paid for according to the terms of our sales contracts. Differences can also arise from inventory changes related to shipping schedules, or variances in ore grades and recoveries which impact the amount of metals contained in concentrates produced and sold.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240130673946/en/

Chet Holyoak

Chief Financial Officer

Chet.Holyoak@GRC-USA.com

www.GoldResourceCorp.com

Source: Gold Resource Corporation

FAQ

What is the ticker symbol for Gold Resource Corporation?

The ticker symbol for Gold Resource Corporation is GORO.

What were the preliminary fourth quarter results announced by Gold Resource Corporation?

Gold Resource Corporation announced the sale of 3,757 ounces of gold, 258,252 ounces of silver, 2,182 tonnes of zinc, 327 tonnes of copper, and 820 tonnes of lead.

When will the conference call to discuss the results be held?

The conference call to discuss the results will be held on March 14, 2024, at 10:00 a.m. Eastern Time.

Who will be hosting the live question and answer session during the conference call?

Allen Palmiere, President and Chief Executive Officer, Alberto Reyes, Chief Operating Officer, and Chet Holyoak, Chief Financial Officer will host the live question and answer session during the conference call.