Gold Resource Corporation Reports Q2 2021 Production

Rhea-AI Summary

Gold Resource Corporation (GORO) reported preliminary production results for Q2 2021, achieving 9,685 gold equivalent ounces sold, including 5,697 gold ounces and 270,321 silver ounces. The production faced challenges due to ground conditions, leading to a change in mine sequencing. Despite these difficulties, the company remains confident in its annual production guidance and cost management. Sales statistics show substantial increases in gold and silver ounces compared to Q2 2020, highlighting ongoing operational growth.

Positive

• 9,685 gold equivalent ounces sold in Q2 2021, up from 4,333 in Q2 2020.
• Gold ounces sold increased to 5,697 from 2,542 year-over-year.
• Silver production rose to 270,321 ounces compared to 189,866 ounces in the previous year.
• Management maintains confidence in annual production guidance despite challenges.

Negative

• Silver and base metal production is modestly behind forecast.
• Ground conditions have led to necessary changes in mine sequencing.

DENVER, CO / ACCESSWIRE / July 14, 2021 / Gold Resource Corporation (NYSE American:GORO) (the "Company") today announced preliminary second quarter 2021 production results.

Second Quarter 2021 Production Highlights

• 9,685 gold equivalent ounces ("Au eq oz") sold, inclusive of 5,697 gold ounces ("Au oz") and 270,321 silver ounces ("Ag oz"),
• 365 tonnes of payable copper,
• 1,214 tonnes of payable lead, and
• 3,193 tonnes of payable zinc.

Allen Palmiere, President and CEO, said "Gold production in the second quarter was as expected while silver and base metal production remain modestly behind forecast. We continue to address challenging ground conditions with a change in mine sequencing and the use of paste fill. We remain confident in our annual production guidance for gold equivalent ounces and our Total Cash and All-in Sustaining Costs."

Sales Statistics

		For the three months ended June 30,								For the six months ended June 30,
		2021				2020				2021				2020
Metal sold
Gold (ozs.)			5,697				2,542				10,716				7,534
Silver (ozs.)			270,321				189,866				523,382				545,094
Copper (tonnes)			365				215				747				643
Lead (tonnes)			1,214				1,014				2,390				2,978
Zinc (tonnes)			3,193				2,592				6,327				6,948
Precious metal gold equivalent ounces sold
Gold Ounces			5,697				2,542				10,716				7,534
Gold Equivalent Ounces from Silver			3,988				1,791				7,775				5,409
Total AuEq oz			9,685				4,333				18,491				12,943

Production Statistics

		For the three months ended June 30,								For the six months ended June 30,
		2021				2020				2021				2020
Arista Mine
Milled
Tonnes Milled			126,363				78,740				253,766				236,776
Grade
Average Gold Grade (g/t)			1.91				1.73				1.80				1.41
Average Silver Grade (g/t)			79				71				78				78
Average Copper Grade (%)			0.36				0.39				0.40				0.39
Average Lead Grade (%)			1.63				1.92				1.66				1.96
Average Zinc Grade (%)			3.64				4.92				3.97				4.75
Aguila Open Pit Mine
Milled
Tonnes Milled			3,227				3,579				14,804				17,827
Grade
Average Gold Grade (g/t)			2.58				1.46				1.86				1.29
Average Silver Grade (g/t)			47				50				33				41
Mirador Mine
Milled
Tonnes Milled			-				5,246				-				7,450
Grade
Average Gold Grade (g/t)			-				0.79				-				0.91
Average Silver Grade (g/t)			-				126				-				130
Combined
Tonnes milled			129,590				87,565				268,570				262,053
Tonnes Milled per Day(1)			1,506				1,943				1,555				1,976
Metal production (before payable metal deductions)(2)
Gold (ozs.)			6,555				2,441				12,652				8,891
Silver (ozs.)			295,979				185,330				603,589				587,872
Copper (tonnes)			368				246				809				734
Lead (tonnes)			1,654				1,140				3,391				3,654
Zinc (tonnes)			3,683				3,004				8,060				8,848

(1) 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.

Second Quarter Conference Call Reminder

As a reminder, the Company will issue a news release providing a summary of its financial and operating results for the second quarter ended June 30, 2021 on Tuesday, July 27, 2021 after the market close, file its 10Q with the financial and operating results for the period ended June 30, 2021 with EDGAR and host a conference call on Wednesday, July 28, 2021 at 11:00 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, 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://www.webcaster4.com/Webcast/Page/2361/42039.

To join the call via telephone please use one of the following dial-in details:

Participant Toll Free: 877-545-0320
Participant International: 973-528-0016
Entry Code: 758194

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 operations in Oaxaca, Mexico. Under the direction of a new board and senior leadership, the focus is to unlock the significant upside potential of its existing infrastructure and large land position surrounding the mine. For more information, please visit GRC's website, located at www.goldresourcecorp.com and read the Company's 10-K for an understanding of the risk factors involved.

CONTACT:
Ann Wilkinson
Vice President, Investor Relations and Corporate Affairs
Ann.Wilkinson@GRC-USA.com
www.GoldResourcecorp.com

SOURCE: Gold Resource Corporation

View source version on accesswire.com:
https://www.accesswire.com/655581/Gold-Resource-Corporation-Reports-Q2-2021-Production

FAQ

What were Gold Resource Corporation's Q2 2021 production results for GORO?

In Q2 2021, Gold Resource Corporation sold 9,685 gold equivalent ounces, including 5,697 gold ounces and 270,321 silver ounces.

How did GORO's gold and silver production compare to Q2 2020?

Gold production increased significantly from 2,542 ounces in Q2 2020 to 5,697 ounces in Q2 2021, while silver production rose from 189,866 ounces to 270,321 ounces.

What challenges did GORO face in its Q2 2021 production?

The company faced challenges related to ground conditions, prompting changes in mine sequencing and production strategies.

When will GORO announce its financial results for Q2 2021?

Gold Resource Corporation will announce its Q2 2021 financial results on July 27, 2021.

Will there be a conference call following GORO's Q2 2021 results announcement?

Yes, a conference call will be held on July 28, 2021, at 11:00 a.m. Eastern Time to discuss the results.