Gold Resource Corp (GORO) Reports Q3 Operational Results Amidst Strategic Review
Gold Resource Corp (GORO) reports Q3 operational results in line with 2023 mine plan and guidance.
Company faces challenges due to strengthening Mexican Peso, increased local power costs, and lower metal prices.
Board of Directors initiates a review process to evaluate strategic alternatives, including a potential sale of the company.
Net loss for Q3 2023 stands at $7.341 million, with a loss per share of $0.08.
On November 7, 2023, Gold Resource Corp (GORO) released its third-quarter operational results and announced the initiation of a review to evaluate strategic alternatives. Despite the operational results aligning with the 2023 mine plan and guidance, the company's financial results continue to be lower than planned due to factors beyond their control.
Operational Performance and Challenges
Allen Palmiere, President and CEO for Gold Resource Corp (GORO), stated that the company's bottom line continues to be affected by a strengthening Mexican Peso, increased local power costs, and lower metal prices for co-product metals of copper, lead, and zinc. Despite these challenges, the company continues to identify and implement opportunities for cost reductions and operational efficiencies.
Financial Highlights
For the third quarter of 2023, Gold Resource Corp (GORO) reported a net loss of $7.341 million, with a loss per share of $0.08. The total sales for the quarter stood at $20.552 million, with production costs amounting to $18.957 million. The company sold 3,982 ounces of gold, 208,905 ounces of silver, 245 tonnes of copper, 947 tonnes of lead, and 2,571 tonnes of zinc during the quarter.
Review of Strategic Alternatives
In light of the continued challenges, the company's Board of Directors has decided to initiate a formal review process to evaluate strategic alternatives for the company. The comprehensive process will begin immediately and will evaluate a broad range of options to maximize shareholder value, including a potential sale of the company.
Outlook
Despite the challenges, Gold Resource Corp (GORO) remains committed to identifying and implementing cost reductions and operational efficiencies. The company's exploration drilling program continues to yield encouraging results, with the goal of increasing the average grade of the 2024 mine plan and life of mine resources.
About Gold Resource Corp (GORO)
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 mine in Oaxaca, Mexico, and to develop the Back Forty Project in Michigan, USA.
Explore the complete 8-K earnings release (here) from Gold Resource Corp for further details.
This article first appeared on GuruFocus.
