Gold Resource Corporation Reports First Quarter 2024 Financial Results

DENVER – Gold Resource Corporation (NYSE American: GORO) (The “Pursue) is pleased to report first quarter operating results at its Don David Gold Mine (“DDGM”) near Oaxaca, Mexico, as well as a corporate update on its other operations.

Highlights of the first quarter of 2024 include:

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“First quarter work included repairs for the planned closure of the third cell of our Tailings Storage Facility (“TSF”) and addressing fluctuations in water quality returned from the TSF pond to the treatment plant. As a result, plant throughput was reduced and yields were lower in the first few weeks of the quarter until solution. Work will continue in the second quarter to further enhance the recovery,” stated Allen Palmiere, President and CEO. “The Mexican peso remained strong against the US dollar and base metal prices were lower than expected for the quarter. To address most of these challenges, the mine plan has been adjusted to provide higher quality ore and reduce our costs. We have also continued our exploration program to better define the areas, which have returned very positive and encouraging results.”

Business and Finance:

Net loss for the quarter was $4.0 million, or $0.05 per share, after $0.9 million in DDGM exploration development and underground drilling expenses.
Total cash costs after by-product credits for the quarter were $1,667 per gold equivalent ounce (“AuEq”) and total all-in sustaining costs (“AISC”) after by-product credits for the quarter were $2,295 per ounce AuEq. (See Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Measures for a reconciliation of non-GAAP measures with applicable GAAP measures).

Don David Goldmine:

During the first quarter of 2024, DDGM produced and sold a total of 5,965 ounces of gold equivalent, including 3,557 ounces of gold and 216,535 ounces of silver, at an average selling price per ounce of $2,094 and $23.29, respectively.
The underground diamond drilling program proceeded as planned and on schedule in the first quarter. Two drilling rigs were used and continued to achieve positive results. In the first quarter, infill drilling focused primarily on upgrading the Inferred Resources into Measured and Indicated resource categories, with particular emphasis on the recently discovered Three Sisters and Gloria vein systems. Infill drilling in the first quarter was successful in identifying and defining high-grade shoots, particularly in the Sandy 1 and Sandy 2 veins of the Three Sisters system. Grade control drilling continued on production-targeted veins in both the Arista and Switchback systems.
There were no downtime incidents during the quarter, resulting in a year-to-date Lost Time Injury Frequency Rate (“LTIFR”) safety record of zero. Safety is the number one priority at Gold Resource Corporation. Despite a good track record at DDGM, the company continues to strive for improved interventions, awareness and training every quarter.

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Summary of 2024 capital and exploration investments

		For the three Months ended March 31, 2024		2024 full year Guidance
			(in thousands)
Sustainable investments:
Underground development	Capital city	$	1,350
Other sustainable capital	Capital city		282
Infill drilling	Exploration writ large		441
Development of surface and underground exploration and others	Exploration writ large		2
Subtotal of sustainable investments:			2,075	$	8.8 – 11.0 million
Growth investments:
DDGM growth:
Surface exploration/other	Exploration		899
Back Forty Growth:
Back Forty project optimization and approval	Exploration		205
Subtotal of growth investments:			1,104	$	3.2 – 5.2 million
Total capital and exploration:		$	3,179	$	12.0 – 16.2 million

Trend highlights

	2023								2024
	Q1		Q2		Q3		Q4		Q1
Operating data
Total tons milled		117,781		113,510		116,626		111,254		98,889
Average grade		–
Gold (g/t)		2.33		1.59		1.52		1.44		1.89
Silver (g/t)		94		86		73		85		88
Copper (%)		0.37		0.37		0.32		0.39		0.37
Lead (%)		1.73		1.64		1.29		1.39		1.25
Zinc (%)		3.88		3.72		3.24		2.95		2.82
Metal production (before payable metal deductions)
Gold (ounces)		7,171		4,637		4,443		4,077		4,757
Silver (ounces)		322,676		289,816		247,159		282,487		251,707
Copper (tons)		336		334		276		341		280
Lead (tons)		1,559		1,389		1,048		1,072		812
Zinc (tons)		3,837		3,569		3,223		2,884		2,310
Produces and sells metal
Gold (ounces)		6,508		4,287		3,982		3,757		3,557
Silver (ounces)		294,815		274,257		208,905		258,252		216,535
Copper (tons)		332		327		245		327		264
Lead (tons)		1,417		1,317		947		820		667
Zinc (tons)		3,060		3,141		2,571		2,182		1,682
Average realized metal prices
Gold ($per ounce)	$1,915		$2,010		$1,934		$1,985		$2,094
Silver ($per ounce)	$23.04		$24.93		$23.61		$23.14		$23.29
Copper ($per ton)	$9,172		$8,397		$8,185		$8,205		$8,546
Lead ($per ton)	$2,158		$2,153		$2,196		$2,122		$1,977
Zinc ($per ton)	$3,195		$2,485		$2,195		$2,516		$2,483
Gold equivalent ounces sold
Gold ounces		6,508		4,287		3,982		3,757		3,557
Gold equivalent ounces of silver		3,547		3,402		2,550		3,011		2,408
Total AuEq oz		10,055		7,689		6,532		6,768		5,965
Financial data
Total sales, net (in thousands)	$31,228		$24,807		$20,552		$21,141		$18,702
Production costs (in thousands)	$19,850		$20,302		$18,957		$17,034		$16,108
Production costs/tons milled	$169		$179		$163		$153		$163
Operating cash flow (in thousands)	$1,024		($551)		($7,475)		$1,783		$1,482
Net loss (in thousands)	($1,035)		($4,584)		($7,341)		($3,057)		($4,021)
Loss per share – underlying	($0.01)		($0.05)		($0.08)		($0.03)		($0.05)

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Conference call for the first quarter of 2024

The Company will host a conference call on Friday, May 3, 2024 at 10:00 a.m. Mountain Time.

The call will be recorded and posted on the Company’s website later in the day following the conclusion of the call. Following the prepared remarks, Allen Palmiere, President and Chief Executive Officer, Alberto Reyes, Chief Operating Officer and Chet Holyoak, Chief Financial 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://onlinexperiences.com/Launch/QReg/ShowUUID=617944F2-FF66-4B11-A082-3804BF9CF029

To participate in the conference call by telephone, please use the following dial-in details:

Free of charge for participants:			+1 (800) 717-1738
International:			+1 (289) 514-5100
Conference ID:			45398

Please connect to the conference call at least 10 minutes before it begins using one of the connection options listed above.

About GRC:

Gold Resource Corporation is a gold and silver producer, developer and explorer focused on the Don David Gold Mine in Oaxaca, Mexico. Base metals, which are of crucial importance for the USA, are also produced as a byproduct. Led by an experienced board and leadership team, the Company’s focus is on unlocking the significant growth potential of its existing infrastructure and large land holdings surrounding the mine in Oaxaca, Mexico, as well as the development of the Back Forty Project in Michigan, USA. For more information, visit the GRC website at www.goldresourcecorp.com and read the Company’s Form 10-K to learn more about the risk factors associated with its business.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by the following words: “may,” “could,” “will,” “could,” “would,” ” should”, “expect”, “plan”, “anticipate”, “intend”, “aim”, “believe”, “estimate”, “predict”, “potential”, “continue”, “consider”, “possible “ or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. They do not represent historical facts and are not guarantees of future performance. All statements, expressed or implied, contained in this release, other than statements of historical fact, may be deemed to be forward-looking statements, including, without limitation, statements regarding the timing and scope of a process to explore strategic alternatives for the Company, including a possible sale of the company. It is possible that the Company’s actual results, financial condition and developments could differ materially from the anticipated results, developments and financial condition indicated in these forward-looking statements. Management believes that these forward-looking statements are reasonable as of their date. However, caution should be exercised not to place undue reliance on such forward-looking statements, as such statements speak only as of the date on which they are made. Our company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. These forward-looking statements are neither promises nor guarantees, but are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those projected, including, but not limited to: whether the objectives of the… strategic alternative review process; the terms, structure, benefits and costs of each strategic transaction; the timing of a transaction and whether a transaction is completed at all; the risk that the review of strategic alternatives and their announcement could have an adverse impact on the Company’s ability to retain and hire key personnel and maintain relationships with suppliers, employees, shareholders and other business relationships, as well as on its operating results and business generally; the risk that the review of strategic alternatives could divert the attention and time of the Company’s management; the risk of unexpected costs or expenses arising from the review; the risk of litigation related to the review; and those in “Point 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, and those described from time to time in our future reports filed with the Securities and Exchange Commission.