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Gold Resource Corporation Reports Record Third Quarter Gold Production With Net Income of $3 Million, or $0.05 Per Share

October 30, 2019

Colorado Springs, CO - ( ) - October 29, 2019 - Gold Resource Corporation (NYSE American: GORO) (the “Company” or “GRC”) reported record gold production results for the third quarter ended September 30, 2019 of 11,165 ounces of gold.  In addition, the Company produced 477,297 ounces of silver, which along with base metal revenue generated $40.1 million in net revenue and $3.0 million, or $0.05 per share, in net income for the quarter.  The Company recently increased its 2019 global gold production outlook 42% to 38,400 ounces, as the Isabella Pearl mine in Mineral County, Nevada continues its production ramp up†.  The Company also maintains its 2019 Oaxaca Mining Unit (“OMU”) silver production outlook of 1.7 million ounces†.  Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA.  The Company has returned $112 million to its shareholders in consecutive monthly dividends since July 2010 and offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery.Q3 2019 HIGHLIGHTS$3.0 million net income, or $0.05 per share$8.8 million cash and cash equivalents$40.1 million net sales$9.3 million mine gross profitRecord gold production of 11,165 ounces477,297 silver ounces produced$197 total cash cost per gold equivalent ounce sold, after by-product credits (OMU)$520 total all-in sustaining cost per precious metal gold equivalent ounce sold (OMU)$4.2 million gold and silver bullion$20.6 million base metal by-product credits, or $1,888 per precious metal gold ounce sold (OMU)$0.3 million dividend distributions, or $0.005 per share for quarterNevada Mining Unit’s Isabella Pearl mine reached commercial production levels in SeptemberNo ATM share sales since July 30, 2019Overview of Q3 2019 ResultsThird quarter OMU production totaled 7,462 ounces of gold, 473,810 ounces of silver, 492 tonnes of copper, 2,459 tonnes of lead and 6,057 tonnes of zinc.  Through the first three quarters of 2019, OMU production numbers total 21,881 ounces of gold, 1,304,975 ounces of silver, 1,407 tonnes of copper, 6,916 tonnes of lead and 17,949 tonnes of zinc.  Third quarter production from the Company’s Nevada Mining Unit (NMU) totaled 3,703 ounces of gold.  Since producing first gold in April 2019, the NMU has produced 5,381 ounces of gold through September 30, 2019. The Company maintains its 2019 OMU annual outlook, targeting 27,000 gold ounces and 1,700,000 silver ounces†.  In addition, the Company’s NMU targets 6,000 ounces of gold production for the fourth quarter of 2019†.  This fourth quarter production target paired with 5,381 gold ounces produced year-to-date, increases the Company’s global 2019 annual gold production outlook to 38,400 ounces†.The Company sold 10,887 precious metal gold equivalent ounces at a total cash cost of $197 per ounce (after by-product credits) at its OMU, benefiting from strong base metal production and sales. OMU average realized metal prices during the quarter included $1,490 per ounce gold and $17.08 per ounce silver*.  The Company sold 4,044 gold ounces from its Isabella Pearl mine at an average realized price of $1,481 per gold ounce*.  The Company recorded net income of $3.0 million, or $0.05 per share, and paid $0.3 million to its shareholders in dividends, or $0.005 per share during the quarter. Cash and cash equivalents at quarter end totaled $8.8 million.“Our Oaxaca Mining Unit’s strong operational results, coupled with our continued ramp up of our Isabella Pearl mine, which recently declared commercial production, resulted in record gold production for the third quarter,” stated Mr. Jason Reid, President and CEO of Gold Resource Corporation.  “The Company is on a trajectory to increase its future global annual gold production by more than 100 percent.  We are also on a trajectory of shifting the Company’s primary revenue distribution to gold with continued excellent exposure to silver and base metals.  In addition, we have become a multi-jurisdictional mining company with two producing mining units and a vast property portfolio.  These and other positive results enabled the Company’s Board of Directors to increase the monthly instituted dividend 100 percent with last week’s October dividend declaration.”†All production outlook targets include a plus or minus 10 percent range.*Average realized metal prices include final settlement adjustments for previously unsettled provisional sales.  Provisional sales may remain unsettled from one quarter into the next.  Realized prices will therefore vary from average spot metal market prices upon final settlement.The following Production Statistics tables summarize certain information about our Oaxaca and Nevada Mining Units for the three and nine months ended September 30, 2019 and 2018:Oaxaca Mining Unit                Three months ended September 30,  Nine months ended September 30,   2019 2018 2019 2018Arista Mine            Milled            Tonnes Milled   163,259   143,110   469,167   410,697Grade            Average Gold Grade (g/t)   1.76   1.51   1.72   1.64Average Silver Grade (g/t)   85   72   84   106Average Copper Grade (%)   0.39   0.37   0.38   0.37Average Lead Grade (%)   1.92   1.82   1.91   1.64Average Zinc Grade (%)   4.70   4.21   4.71   4.23Aguila Open Pit Mine            Milled            Tonnes Milled   3,640   11,404   23,976   25,730Grade            Average Gold Grade (g/t)   1.49   2.30   1.76   2.11Average Silver Grade (g/t)   58   39   45   41Mirador Mine            Milled            Tonnes Milled   11,690   3,561   22,540   11,244Grade            Average Gold Grade (g/t)   0.76   1.41   0.95   1.40Average Silver Grade (g/t)   197   105   203   158Combined            Tonnes milled   178,589   158,075   515,683   447,671Tonnes Milled per Day (1)   2,007   1,796   1,967   1,724Metal production (before payable metal deductions) (2)            Gold (ozs.)   7,462   6,411   21,881   18,864Silver (ozs.)   473,810   321,590   1,304,975   1,341,429Copper (tonnes)   492   434   1,407   1,206Lead (tonnes)   2,459   2,119   6,916   5,274Zinc (tonnes)   6,057   4,970   17,949   14,236 Based on actual days the mill operated during the period.The difference between what we report as “ounces/tonnes produced” and “payable ounces/tonnes 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 incidental to shipping schedules, or variances in ore grades and recoveries which impact the amount of metals contained in concentrates produced and sold.Nevada Mining Unit                Three months ended September 30,  Nine months ended September 30,   2019 2018 2019 2018             Ore mined            Ore (tonnes)   82,169   -   770,446   -Gold grade (g/t)   0.75   -   0.70   -Low-grade stockpile (tonnes)            Ore (tonnes)   83,394   -   472,120   -Gold grade (g/t)   0.47   -   0.52   -Waste (tonnes)   1,248,891   -   2,947,339   -Metal production (before payable metal deductions) (1)            Gold (ozs.)   3,703   -   5,381   -Silver (ozs.)   3,487   -   4,459   - The difference between what we report as “ounces/tonnes produced” and “payable ounces/tonnes 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 incidental to shipping schedules, or variances in ore grades and recoveries which impact the amount of metals contained in concentrates produced and sold.The following Sales Statistics tables summarize certain information about our Oaxaca and Nevada Mining Units operations for three and nine months ended September 30, 2019 and 2018:Oaxaca Mining Unit                Three months ended September 30,  Nine months ended September 30,   2019 2018 2019 2018             Metal sold            Gold (ozs.)   6,175   5,721   17,201   16,744Silver (ozs.)   411,088   301,717   1,096,131   1,244,092Copper (tonnes)   451   378   1,220   1,101Lead (tonnes)   2,188   1,905   5,961   4,862Zinc (tonnes)   6,016   3,942   14,389   11,527Average metal prices realized (1)            Gold ($ per oz.)   1,490   1,183   1,391   1,275Silver ($ per oz.)   17.08   14.69   15.94   16.10Copper ($ per tonne)   5,659   5,593   6,027   6,526Lead ($ per tonne)   2,012   1,931   1,976   2,266Zinc ($ per tonne)   2,261   1,825   2,642   2,899Precious metal gold equivalent ounces sold            Gold Ounces   6,175   5,721   17,201   16,744Gold Equivalent Ounces from Silver   4,712   3,745   12,561   15,710Total Precious Metal Gold Equivalent Ounces   10,887   9,466   29,762   32,454Total cash cost before by-product credits per precious metal gold equivalent ounce sold $ 2,085 $ 1,954 $ 2,201 $ 1,687Total cash cost after by-product credits per precious metal gold equivalent ounce sold (2) $ 197 $ 582 $ 281 $ 97Total all-in sustaining cost per precious metal gold equivalent ounce sold $ 520 $ 1,338 $ 677 $ 724 Average metal prices realized vary from the market metal prices due to final settlement adjustments from our provisional invoices when they are settled. Our average metal prices realized will therefore differ from the market average metal prices in most cases.Total cash cost after by-product credits are significantly affected by base metals sales during the periods presented.Nevada Mining Unit                Three months ended September 30,  Nine months ended September 30,   2019 2018 2019 2018             Metal sold            Gold (ozs.)   4,044   -   5,175   -Silver (ozs.)   3,534   -   4,146   -Average metal prices realized (1)            Gold ($ per oz.)   1,481   -   1,455   -Silver ($ per oz.)   17.56   -   17.19   -Precious metal gold equivalent ounces sold            Gold Ounces   4,044   -   5,175   -Gold Equivalent Ounces from Silver   42   -   49   -Total Precious Metal Gold Equivalent Ounces   4,086   -   5,224   -Total cash cost before by-product credits per precious metal gold equivalent ounce sold $ 1,119 $ - $ 989 $ -Total cash cost after by-product credits per precious metal gold equivalent ounce sold $ 1,103 $ - $ 975 $ -Total all-in sustaining cost per precious metal gold equivalent ounce sold $ 1,125 $ - $ 992 $ - Average metal prices realized vary from the market metal prices due to final settlement adjustments from our provisional invoices when they are settled. Our average metal prices realized will therefore differ from the market average metal prices in most cases.See Accompanying TablesThe following information summarizes Gold Resource Corporation’s financial condition at September 30, 2019 and December 31, 2018, its results of operations including the three and nine months ended September 30, 2019 and 2018, and its cash flows for the nine months ended September 30, 2019 and 2018. The summary data as of September 30, 2019 and for the three and nine months ended September 30, 2019 and 2018 is unaudited; the summary data for the year ended December 31, 2018 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2018, but do not include the footnotes and other information that is included in the complete financial statements. Readers are urged to review the Company’s Form 10-K in its entirety, which can be found on the SEC’s website at  .The calculation of our cash cost per precious metal gold equivalent per ounce and total all-in sustaining cost per precious metal gold equivalent per ounce contained in this press release are non-GAAP financial measures. Please see “Management’s Discussion and Analysis and Results of Operations” contained in the Company’s most recent Form 10-K for a complete discussion and reconciliation of the non-GAAP measures.GOLD RESOURCE CORPORATIONCONSOLIDATED BALANCE SHEETS(U.S. dollars in thousands, except share and per share amounts)          September 30,  December 31,   2019 2018  (Unaudited)   ASSETS      Current assets:      Cash and cash equivalents $ 8,757 $ 7,762Gold and silver rounds/bullion   4,169   3,637Accounts receivable, net   7,800   1,744Inventories, net   24,065   14,342Prepaid taxes   1,921   1,126Prepaid expenses and other current assets   2,101   2,745Total current assets   48,813   31,356Property, plant and mine development, net   122,986   111,242Operating lease assets, net   9,484   -Deferred tax assets, net   6,357   7,372Other non-current assets   4,195   361Total assets $191,835 $ 150,331LIABILITIES AND SHAREHOLDERS’ EQUITY      Current liabilities:      Accounts payable $ 13,253 $ 12,429Loans payable, current   870   765Finance lease liabilities, current   440   412Operating lease liabilities, current   8,630   -Mining royalty taxes payable, net   846   1,926Accrued expenses and other current liabilities   2,280   2,030Total current liabilities   26,319   17,562Reclamation and remediation liabilities   4,907   3,298Loans payable, long-term   1,005   1,378Finance lease liabilities, long-term   549   831Operating lease liabilities, long-term   864   -Total liabilities   33,644   23,069Shareholders’ equity:      Common stock - $0.001 par value, 100,000,000 shares authorized:      65,691,527 and 58,850,431 shares outstanding at September 30, 2019 and December 31, 2018, respectively   136   69Additional paid-in capital   147,751   121,592Retained earnings   17,359   12,656Treasury stock at cost, 336,398 shares   (5,884)   (5,884)Accumulated other comprehensive loss   (1,171)   (1,171)Total shareholders’ equity   158,191   127,262Total liabilities and shareholders’ equity $ 191,835 $ 150,331 GOLD RESOURCE CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except share and per share amounts)(Unaudited)                Three months ended September 30,  Nine months ended September 30,   2019 2018 2019 2018Sales, net $40,066 $ 24,258 $ 96,018 $ 87,177Mine cost of sales:            Production costs  23,499   17,363   59,777   50,477Depreciation and amortization  7,229   3,515   14,916   10,587Reclamation and remediation  20   87   77   379Total mine cost of sales   30,748   20,965   74,770   61,443Mine gross profit   9,318   3,293   21,248   25,734Costs and expenses:            General and administrative expenses  2,194   2,140   6,913   6,719Exploration expenses  1,129   1,304   3,210   3,740Other expense, net   600   568   518   1,356Total costs and expenses   3,923   4,012   10,641   11,815Income (loss) before income taxes   5,395   (719)   10,607   13,919Provision for income taxes  2,417   62   4,949   5,489Net income (loss) $ 2,978 $ (781) $ 5,658 $ 8,430Net income (loss) per common share:            Basic $ 0.05 $ (0.01) $ 0.09 $ 0.15Diluted $ 0.05 $ (0.01) $ 0.09 $ 0.14Weighted average shares outstanding:            Basic   65,495,958   57,642,966   63,001,178   57,361,809Diluted   65,796,899   57,642,966   63,336,131   58,252,652 GOLD RESOURCE CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands)(Unaudited)          Nine months ended September 30,   2019 2018Cash flows from operating activities:      Net income $ 5,658 $ 8,430Adjustments to reconcile net income to net cash from operating activities:      Deferred income taxes   1,091   (467)Depreciation and amortization   15,273   11,096Stock-based compensation   1,581   1,090Other operating adjustments   314   706Changes in operating assets and liabilities:      Accounts receivable   (6,056)   1,456Inventories   (7,119)   (340)Prepaid expenses and other current assets   1,505   (390)Other non-current assets   (2,882)   132Accounts payable and other accrued liabilities   349   3,536Mining royalty and income taxes payable, net   (1,944)   (4,428)Net cash provided by operating activities   7,770   20,821       Cash flows from investing activities:      Capital expenditures   (29,166)   (26,085)Other investing activities   2   5Net cash used in investing activities   (29,164)   (26,080)       Cash flows from financing activities:      Proceeds from the exercise of stock options   98   1,261Proceeds from issuance of stock   24,449   -Dividends paid   (944)   (860)Repayment of loans payable   (597)   (424)Repayment of finance leases   (311)   (285)Net cash provided by (used in) financing activities   22,695   (308)       Effect of exchange rate changes on cash and cash equivalents   (306)   (222)Net increase (decrease) in cash and cash equivalents   995   (5,789)Cash and cash equivalents at beginning of period   7,762   22,390Cash and cash equivalents at end of period $ 8,757 $ 16,601       Supplemental Cash Flow Information      Interest expense paid $ 121 $ 140Income and mining taxes paid $ 3,743 $ 6,822Non-cash investing activities:      Change in accrued capital expenditures $ 158 $ 3,935Change in estimate for asset retirement costs $ 1,476 $ 527Equipment purchased through loan payable $ 330 $ 526Equipment purchased under finance leases $ 56 $ 17 About GRC:Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA.  The Company targets low capital expenditure projects with potential for generating high returns on capital.  The Company has returned $112 million back to its shareholders in consecutive monthly dividends since July 2010 and offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery.  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.Cautionary 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, the statements regarding Gold Resource Corporation’s strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. 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. In particular, 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 10-K filed with the SEC.Contacts:Corporate DevelopmentGreg Patterson303-320-7708www.Goldresourcecorp.com