U.S. markets closed
  • S&P 500

    4,128.80
    +31.63 (+0.77%)
     
  • Dow 30

    33,800.60
    +297.03 (+0.89%)
     
  • Nasdaq

    13,900.19
    +70.88 (+0.51%)
     
  • Russell 2000

    2,243.47
    +0.88 (+0.04%)
     
  • Crude Oil

    59.34
    -0.26 (-0.44%)
     
  • Gold

    1,744.10
    -14.10 (-0.80%)
     
  • Silver

    25.33
    -0.26 (-1.02%)
     
  • EUR/USD

    1.1905
    -0.0016 (-0.13%)
     
  • 10-Yr Bond

    1.6660
    +0.0340 (+2.08%)
     
  • GBP/USD

    1.3707
    -0.0028 (-0.20%)
     
  • USD/JPY

    109.6300
    +0.3660 (+0.33%)
     
  • BTC-USD

    59,586.80
    -1,296.37 (-2.13%)
     
  • CMC Crypto 200

    1,235.89
    +8.34 (+0.68%)
     
  • FTSE 100

    6,915.75
    -26.47 (-0.38%)
     
  • Nikkei 225

    29,768.06
    +59.08 (+0.20%)
     

Gold Resource Corporation Reports Third Quarter Results

COLORADO SPRINGS, CO--(Marketwired - Nov 3, 2015) - Gold Resource Corporation (NYSE MKT: GORO) (the "Company") reported production results for the third quarter ended September 30, 2015 of 6,825 ounces of gold, 561,985 ounces of silver ounces, or 14,133 precious metal gold equivalent (AuEq) ounces (calculated at actual sales price ratio of 77:1), which generated $19.4 million in net revenue for the quarter. Gold Resource Corporation is a gold and silver producer with operations in Oaxaca, Mexico and exploration in Nevada, USA. The Company has returned over $107 million to shareholders in monthly dividends since commercial production commenced July 1, 2010, and offers shareholders the option to convert their cash dividends and take delivery in physical gold and silver.

2015 Q3 HIGHLIGHTS

  • 14,133 ounces AuEq mill production

  • 12,773 ounces AuEq sold

  • $19.4 million sales, net

  • $603 total cash cost per ounce AuEq (after by-product credits)

  • $6.4 million adjusted cash flow from mine site operations

  • $8.3 million by-product credits, or $647 per ounce AuEq sold

  • $1.6 million dividend distributions, or $0.03 per share for quarter

Overview of Q3 2015 Aguila Project Results

Gold Resource Corporation's Aguila Project produced 14,133 ounces AuEq at a total cash cost of $603 per ounce (after by-product credits). Realized average metal price sales during the quarter were $1,115 per ounce gold and $14.50 per ounce silver. The Company recorded a net loss of $0.5 million, or $(0.01) per share. Adjusted cash flow from mine site operations totaled $6.4 million. The Company paid $1.6 million to shareholders in dividends, or $0.03 per share during the quarter. Cash and cash equivalents at quarter end totaled $14.1 million. Realized gold and silver prices decreased 14% and 28%, respectively, compared to the third quarter of 2014.

Production for the first three quarters of 2015 totaled 21,960 ounces of gold and 1,932,611 ounces of silver. With the weaker than expected 2015 second and third quarter performance, the Company confirms its prior announcement related to the revised 2015 Outlook which reduced annual production targets to 29,600 gold ounces and 2,500,000 silver ounces, a reduction of 6% for gold ounces, and 16% for silver ounces.

The following table summarizes certain information about our mining operations for the three and nine months ended September 30, 2015 and 2014:

Production and Sales Statistics - Arista Underground Mine

Three months ended September 30,

Nine months ended September 30,

2015

2014

2015

2014

Milled

Tonnes Milled

105,309

79,568

300,190

283,793

Tonnes Milled per Day

1,143

865

1,104

1,040

Grade

Average Gold Grade (g/t)

2.25

2.78

2.52

3.18

Average Silver Grade (g/t)

180

291

216

297

Average Copper Grade (%)

0.41

0.47

0.39

0.40

Average Lead Grade (%)

1.41

2.12

1.37

1.52

Average Zinc Grade (%)

4.02

5.67

3.78

3.97

Recoveries

Average Gold Recovery (%)

90

92

90

92

Average Silver Recovery (%)

92

92

93

92

Average Copper Recovery (%)

80

76

79

78

Average Lead Recovery (%)

75

80

75

76

Average Zinc Recovery (%)

83

85

82

83

Mill production (before payable metal deductions)(1)

Gold (ozs.)

6,825

6,523

21,960

26,687

Silver (ozs.)

561,985

687,240

1,932,611

2,506,466

Copper (tonnes)

343

284

929

891

Lead (tonnes)

1,114

1,350

3,071

3,273

Zinc (tonnes)

3,499

3,816

9,299

9,340

Payable metal sold

Gold (ozs.)

6,220

2,932

21,994

19,846

Silver (ozs.)

503,929

575,413

1,770,093

2,171,298

Copper (tonnes)

332

228

877

751

Lead (tonnes)

1,049

1,204

2,875

2,938

Zinc (tonnes)

2,905

2,976

7,668

7,383

Average metal prices realized (2)

Gold ($ per oz.)

1,115

1,295

1,177

1,287

Silver ($ per oz.)

14.50

20.24

16.09

19.77

Copper ($ per tonne)

4,883

7,103

5,436

6,920

Lead ($ per tonne)

1,619

2,238

1,746

2,157

Zinc ($ per tonne)

1,701

2,394

1,981

2,209

Precious metal gold equivalent ounces produced (mill production) (1)(3)(4)

Gold Ounces

6,825

6,523

21,960

26,687

Gold Equivalent Ounces from Silver

7,308

10,739

26,410

38,495

Total Precious Metal Gold Equivalent Ounces

14,133

17,262

48,370

65,182

Precious metal gold equivalent ounces sold (3)(4)

Gold Ounces

6,220

2,932

21,994

19,846

Gold Equivalent Ounces from Silver

6,553

8,991

24,189

33,348

Total Precious Metal Gold Equivalent Ounces

12,773

11,923

46,183

53,194

Total cash cost (before by-product credits) per precious metal gold equivalent ounce sold (including royalties) (5)

$

1,250

$

1,324

$

1,046

$

958

Total cash costs, after by-product credits, per precious metal gold equivalent ounce sold (including royalties) (5)

$

603

$

364

$

505

$

434

(1)

Mill production represents metal contained in concentrates produced at the mill, which is before payable metal deductions are levied by the buyer of our concentrates. Payable metal deduction quantities are defined in our contracts with the buyer of our concentrates and represent an estimate of metal contained in the concentrates produced at our mill which the buyer cannot recover through the smelting process. There are inherent limitations and differences in the sampling method and assaying of estimated metal contained in concentrates that are shipped, and those contained metal estimates are derived from sampling methods and assaying throughout the mill production process. The Company monitors these differences to ensure that precious metal mill production quantities are materially correct.

(2)

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.

(3)

For the three months ended September 30, 2015, precious metal gold equivalent mill production differs from gold equivalent ounces sold due principally to buyer (smelter) concentrate processing and other deductions of approximately 1,204 gold equivalent ounces and a decrease in gold equivalent ounces contained in ending inventory of approximately 121 ounces.

(4)

For the nine months ended September 30, 2015, precious metal gold equivalent mill production differs from gold equivalent ounces sold due principally to buyer (smelter) concentrate processing and other deductions of approximately 3,687 gold equivalent ounces and a decrease in gold equivalent ounces contained in ending inventory of approximately 279 ounces.

(5)

For a reconciliation of this non-GAAP measure to total mine cost of sales, which is the most comparable U.S. GAAP measure, please see Non-GAAP Measures.

About GRC:
Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in six potential high-grade gold and silver properties at its producing Oaxaca, Mexico Mining Unit and exploration properties at its Nevada, USA, Mining Unit. The Company has 54,179,369 shares outstanding, no warrants, no long term debt and has returned over $107 million back to shareholders since commercial production commenced July 1, 2010. Gold Resource Corporation offers 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.

See Accompanying Tables

The following information summarizes the results of operations for Gold Resource Corporation for the three and nine months ended September 30, 2015 and 2014, its financial condition at September 30, 2015 and December 31, 2014 and its cash flows for the nine months ended September 30, 2015 and 2014. The summary data for the three and nine months ended September 30, 2015 is unaudited; the summary data for the year ended December 31, 2014 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2014, 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 www.sec.gov.

The calculation of our cash cost per ounce contained in this press release is a non-GAAP financial measure. Please see "Management's Discussion and Analysis and Results of Operation" contained in the Company's most recent Form 10-Q and Form 10-K for a complete discussion and reconciliation of the non-GAAP measures.

GOLD RESOURCE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands, except share and per share amounts)

September 30,

December 31,

2015

2014

(Unaudited

)

ASSETS

Current assets:

Cash and cash equivalents

$

14,105

$

27,541

Gold and silver bullion

3,160

3,447

Accounts receivable

1,851

1,416

Inventories

9,347

7,295

IVA taxes receivable

1,870

575

Deferred tax assets

3,891

3,891

Prepaid expenses and other current assets

1,932

2,935

Total current assets

36,156

47,100

Property, plant and mine development, net

47,808

32,348

Deferred tax assets

27,040

25,519

Investments in equity securities

894

2,620

Other non-current assets

2,964

4,078

Total assets

$

114,862

$

111,665

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

8,201

$

3,892

Accrued expenses and other current liabilities

5,124

3,923

Capital lease obligations

1,220

1,498

Income taxes payable

3,348

7,907

Dividends payable

542

542

Total current liabilities

18,435

17,762

Capital lease obligations

-

834

Reclamation and remediation liabilities

2,537

2,993

Total liabilities

20,972

21,589

Shareholders' equity:

Preferred stock - $0.001 par value, 5,000,000 shares authorized:

no shares issued and outstanding

-

-

Common stock - $0.001 par value, 100,000,000 shares authorized:

54,515,767 shares issued and outstanding

55

55

Additional paid-in capital

96,387

93,094

Retained earnings

4,503

3,982

Treasury stock at cost, 336,398 shares

(5,884

)

(5,884

)

Accumulated other comprehensive loss

(1,171

)

(1,171

)

Total shareholders' equity

93,890

90,076

Total liabilities and shareholders' equity

$

114,862

$

111,665

GOLD RESOURCE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

for the three and nine months ended September 30, 2015 and 2014

(U.S. dollars in thousands, except share and per share amounts)

(Unaudited)

Three months ended September 30,

Nine months ended September 30,

2015

2014

2015

2014

Sales, net

$

19,437

$

21,052

$

71,082

$

85,873

Mine cost of sales:

Production costs

13,411

13,025

40,462

43,107

Depreciation and amortization

1,579

1,180

5,195

2,969

Reclamation and remediation

6

-

36

-

Total mine cost of sales

14,996

14,205

45,693

46,076

Mine gross profit

4,441

6,847

25,389

39,797

Costs and expenses:

General and administrative expenses

2,913

4,361

8,032

9,623

Exploration expenses

1,810

2,901

6,416

5,786

Total costs and expenses

4,723

7,262

14,448

15,409

Operating (loss) income

(282

)

(415

)

10,941

24,388

Other (expense) income, net

(1,033

)

69

(2,080

)

766

(Loss) income before income taxes

(1,315

)

(346

)

8,861

25,154

Provision for income taxes

(846

)

1,109

3,465

12,264

Net (loss) income

$

(469

)

$

(1,455

)

$

5,396

$

12,890

Net (loss) income per common share:

Basic

$

(0.01

)

$

(0.03

)

$

0.10

$

0.24

Diluted

$

(0.01

)

$

(0.03

)

$

0.10

$

0.24

Weighted average shares outstanding:

Basic

54,179,369

54,179,369

54,179,369

54,098,783

Diluted

54,179,369

54,179,369

54,201,274

54,698,748

GOLD RESOURCE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

for the nine months ended September 30, 2015 and 2014

(U.S. dollars in thousands)

(Unaudited)

2015

2014

Cash flows from operating activities:

Net income

$

5,396

$

12,890

Adjustments to reconcile net income to net cash from operating activities:

Depreciation, depletion and amortization

6,331

3,107

Stock-based compensation

3,293

3,847

Deferred income taxes

(1,522

)

-

Currency exchange (gain) loss

(326

)

545

Unrealized loss (gain) on investments

1,726

(1,504

)

Other operating adjustments

1,072

162

Changes in operating assets and liabilities:

Accounts receivable

(435

)

(3,699

)

Inventories

(1,149

)

(1,582

)

Prepaid expenses and other current assets

(897

)

1,354

Accounts payable and other accrued liabilities

5,069

(731

)

Income taxes payable/receivable

(4,528

)

11,907

Other noncurrent assets

466

-

Net cash provided by operating activities

14,496

26,296

Cash flows from investing activities:

Capital expenditures

(21,837

)

(10,524

)

Investments

-

(1,805

)

Proceeds from sale of building

-

1,737

Other investing activities

40

23

Net cash used in investing activities

(21,797

)

(10,569

)

Cash flows from financing activities:

Proceeds from exercise of stock options

-

100

Dividends paid

(4,876

)

(4,868

)

Repayment of capital leases

(1,123

)

(1,099

)

Net cash used in financing activities

(5,999

)

(5,867

)

Effect of exchange rate changes on cash and cash equivalents

(136

)

(33

)

Net (decrease) increase in cash and cash equivalents

(13,436

)

9,827

Cash and cash equivalents at beginning of period

27,541

14,973

Cash and cash equivalents at end of period

$

14,105

$

24,800

Supplemental Cash Flow Information

Interest expense paid

$

65

$

139

Income and mining taxes paid

$

8,464

$

-