Gold Resource Corporation Announces Preliminary Results of 11,729 Gold Equivalent Ounces Produced and Sold in Q1 2022

Rhea-AI Summary

Gold Resource Corporation (GORO) reported robust Q1 2022 results, selling 8,381 ounces of gold and 265,407 ounces of silver, translating to a gold equivalent of 11,729 ounces. Other sales included 4,359 tonnes of zinc, 408 tonnes of copper, and 1,639 tonnes of lead, contributing to a cash balance exceeding $31 million. The Don David Gold Mine in Mexico showed strong production, while the Back Forty Project in Michigan advanced significantly during the quarter.

Positive

• Q1 2022 gold sales: 8,381 ounces, up from 5,019 ounces in Q1 2021.
• Silver sales increased to 265,407 ounces, compared to 253,061 ounces in Q1 2021.
• Strong cash position exceeding $31 million.
• Investment in capital and exploration progressed, including completion of filtration plant and dry stack facilities.
• Feasibility study for Back Forty Project advancing well.

Negative

• Average gold price realized decreased from $1,787 per ounce in Q1 2021 to $1,898 in Q1 2022.
• Silver prices realized dropped significantly from $26.77 in Q1 2021 to $23.94 in Q1 2022.

DENVER--(BUSINESS WIRE)-- Gold Resource Corporation (NYSE American: GORO) (the “Company”) sold a total of 8,381 ounces of gold and 265,407 ounces of silver in Q 1 2022 for a gold equivalent total of 11,729 ounces. Additionally, the Company sold 4,359 tonnes of zinc, 408 tonnes of copper, and 1,639 tonnes of lead contributing to a strong cash balance of over $31 million.

Allen Palmiere, President and CEO said “2022 is off to a good start with strong production results at the Don David Gold Mine in Mexico and the feasibility study advancing at the Back Forty Project in Michigan. Our investment in capital and exploration progressed during the quarter, including the completion of the filtration plant and dry stack facilities in January accelerating our environmental stewardship efforts.”

Sales Statistics

		Three months ended March 31,
		2022		2021
Metal sold
Gold (ozs.)		8,381		5,019
Silver (ozs.)		265,407		253,061
Copper (tonnes)		408		382
Lead (tonnes)		1,639		1,176
Zinc (tonnes)		4,359		3,134
Average metal prices realized(1)
Gold ($ per oz.)		1,898		1,787
Silver ($ per oz.)		23.94		26.77
Copper ($ per tonne)		10,144		8,873
Lead ($ per tonne)		2,347		2,082
Zinc ($ per tonne)		3,842		2,797
Precious metal gold equivalent ounces sold
Gold Ounces		8,381		5,019
Gold Equivalent Ounces from Silver		3,348		3,791
Total AuEq Ounces		11,729		8,810

(1) 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.

Trending Production Statistics

		For the three months ended:
		Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022
Arista Mine
Tonnes Milled		127,403		126,363		97,806		135,398		135,801
Average Gold Grade (g/t)		1.68		1.91		2.68		1.93		3.00
Average Silver Grade (g/t)		78		79		91		82		81
Average Copper Grade (%)		0.43		0.36		0.37		0.38		0.41
Average Lead Grade (%)		1.7		1.63		2.29		2.17		1.97
Average Zinc Grade (%)		4.29		3.64		4.79		4.77		4.89
Combined
Tonnes milled(1)		138,980		129,590		98,010		135,398		136,844
Tonnes Milled per Day(2)		1,604		1,506		1,353		1,559		1,590
Metal production (before payable metal deductions)(3)
Gold (ozs.)		6,097		6,555		6,933		6,853		11,187
Silver (ozs.)		307,610		295,979		265,829		330,873		332,292
Copper (tonnes)		441		368		284		413		431
Lead (tonnes)		1,737		1,654		1,808		2,345		2,073
Zinc (tonnes)		4,377		3,683		3,920		5,349		5,562

(1) Combined tonnes milled in Q1, Q2 and Q3 2021 included 11,577, 3,227 and 204 tonnes from the Open Pit Mine, respectively. The Open Pit Mine is no longer in production as of Q3 2021. Additionally, Q1 2022 combined tonnes milled includes 1,043 purchased tonnes related to an environmental initiative with a local community.
(2) Based on actual days the mill operated during the period.
(2) 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.

Q1 2022 Conference Call

The Company will issue a supplemental news release providing additional details regarding timing of the 10-Q filing with EDGAR for the period ended March 31, 2022 financial and operating results and details for a hosted 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 a new board and senior leadership, the company’s focus has been to unlock the significant upside potential of its existing infrastructure and large land position surrounding the mine and now that our acquisition of Aquila Resources Inc. is closed, 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-Q for an understanding of the risk factors associated with its business.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220414005847/en/

Kim Perry

Chief Financial Officer

Kim.Perry@GRC-USA.com

www.GoldResourcecorp.com

Source: Gold Resource Corporation

FAQ

What were Gold Resource Corporation's sales figures for Q1 2022?

In Q1 2022, Gold Resource Corporation sold 8,381 ounces of gold and 265,407 ounces of silver.

How much cash did Gold Resource Corporation have at the end of Q1 2022?

Gold Resource Corporation reported a cash balance exceeding $31 million at the end of Q1 2022.

What is the status of the Back Forty Project for GORO?

The feasibility study for the Back Forty Project in Michigan is advancing well.

How did gold and silver sales in Q1 2022 compare to Q1 2021?

Gold sales increased from 5,019 ounces in Q1 2021 to 8,381 ounces in Q1 2022, while silver sales rose from 253,061 ounces to 265,407 ounces.

What were the average metal prices realized by GORO in Q1 2022?

Gold average price realized was $1,898 per ounce, while silver average price was $23.94 per ounce.