COLORADO SPRINGS – May 1, 2018 – Gold Resource Corporation (NYSE American: GORO) (the “Company” or “GRC”) reported production results for the first quarter ended March 31, 2018 of 6,647 ounces of gold and 425,884 ounces of silver, which along with base metal revenue generated $32.2 million in net revenue and $5.5 million, or $0.10 per share in net income for the quarter. Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, U.S.A. The Company has returned $110 million to its shareholders in monthly dividends since commercial production commenced July 1, 2010 and offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery.
Q1 2018 HIGHLIGHTS
- $5.5 million net income, or $0.10 per share
- $28.6 million cash and cash equivalents (a $6.2 million increase)
- $32.2 million net sales
- 6,647 gold ounces produced
- 425,884 silver ounces produced
- Negative $316 total cash cost per gold equivalent ounce sold (after by-product credits)
- $347 total all-in sustaining cost per precious metal gold equivalent ounce sold
- $20.7 million base metal by-product credits, or $2,010 per precious metal gold ounce sold
- $0.3 million dividend distributions, or $0.005 per share for quarter
Overview of Q1 2018 Results
Gold Resource Corporation sold 10,275 precious metal gold equivalent ounces at a total cash cost of negative $316 per ounce (after by-product credits), benefiting from strong base metal production and sales. Average realized metal prices during the quarter included $1,342 per ounce gold and $16.58 per ounce silver*. The Company recorded net income of $5.5 million, or $0.10 per share. The Company 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 $28.6 million.
Production totals for the first quarter of 2018 included 6,647 ounces of gold, 425,884 ounces of silver, 385 tonnes of copper, 1,615 tonnes of lead and 4,793 tonnes of zinc. The Company maintains its 2018 Annual Outlook, targeting a plus or minus 10 percent production of 27,000 gold ounces and 1,700,000 silver ounces.
*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 table summarizes certain information about our mining operations for three months ended March 31, 2018 and 2017:
- Based on actual days the mill operated during the period.
- 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 and represent an estimate of metal contained in the concentrates which the buyer deducts from payment. 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. We monitor these differences to ensure that precious metal mill production quantities are materially correct.
The following Sales Statistics table summarizes certain information about our combined mining operations for the three months ended March 31, 2018 and 2017:
- 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.
- 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 NonGAAP Measures in the Company’s most recently filed 10-K.
- Total cash (credit) cost was significantly affected by unusually high base metals sales as compared to precious metals sales.
See Accompanying Tables
The calculation of our cash cost per precious metal gold equivalent per ounce sold, total all-in sustaining cost per precious metal gold equivalent per ounce sold and total all-in cost per precious metal gold equivalent per ounce sold 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.
The following information summarizes Gold Resource Corporation’s financial condition at March 31, 2018 and December 31, 2017, its results of operations including the three months ended March 31, 2018 and 2017, and its cash flows for the three months ended March 31, 2018 and 2017. The summary data for the three months ended March 31, 2018 is unaudited; the summary data for the year ended December 31, 2017 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2017, 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.
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 $110 million back to shareholders since commercial production commenced July 1, 2010, and 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 forwardlooking 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 forwardlooking 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.
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