LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek.com to Launch New Website
By: GoldSeek.com

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA

 
Search

GoldSeek Web

 
Gold Resource Corporation (NYSE: GORO): Strong Base Metal Prices Help Bolster Healthy 1st Quarter Balance Sheet

 -- Published: Thursday, 3 May 2018 | Print  | Disqus 

By Nicholas LePan, GoldSeek.com

 

As the market for base metals over the past year has improved, along with steady improvements in the price of gold, companies that have base metal production in addition to gold and silver are seeing the gains on their balance sheets.  Some even where the additional base metal credits reduce the total cash cost of gold production.  

 

Gold Resource Corp. (NYSE: GORO) recently reported its first quarter results 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 (all figures in US dollars).

 

The company, which has been mining in Mexico for eight years, is just starting to see "negative" cash costs come into play at the project in the last two quarters because of improved base metal prices, especially zinc.    

 

Benefiting from strong base metal production and sales, the company sold 10,275 precious metal gold equivalent ounces at a total cash cost of negative $316 per ounce, after by-product credits of copper, lead and zinc.

 

The company reports production numbers as "precious metal gold equivalent" of gold and silver. The company does not include base metals in its production numbers, but uses the revenue generated from base metals as a credit towards precious metal gold equivalent (gold/silver) production.  This is the source of the company's negative $316 cash costs. 

 

Average realized metal prices during the quarter included $1,342 per ounce gold compared to $1,215 per ounce in the same quarter in 2017 and $16.58 per ounce silver compared to $17.29 in the same quarter in 2017.  Total all-in sustaining cost per precious metal gold equivalent ounce sold is $347.

 

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 is maintaining its 2018 production guidance, targeting a plus or minus 10 percent production of 27,000 gold ounces and 1,700,000 silver ounces. 

 

Gold Resource is also developing the Isabella Pearl project in Mineral County, Nevada.  The company recently released its maiden mineral reserve for the gold project increasing its company-wide gold reserves by 135%. 

 

Proven and probable (“P&P”) reserves included in the Isabella Pearl reserve report include 2,694,500 tonnes grading 2.22 grams per tonne (g/t) gold and 13 g/t silver, equating to 192,600 gold ounces and 1,129,100 silver ounces. 

 

Metal prices used for P&P reserves were $1,222 per ounce of gold and $16.62 per ounce of silver.  Silver is not considered an economic mineral of interest in the maiden reserve report and is not considered as part of the project feasibility study; only a minor amount is planned to be recovered.  The company is in the  in the final stages of permitting and 2018 should see the commencement of mine construction.   

 

When combined with the company’s Oaxaca Mining Unit’s December 31, 2017 mineral reserve, company-wide proven and probable reserve tonnes now total 5,195,600, an increase of 108 percent, while gold ounces in the proven and probable category total 335,000, an increase of 135 percent.

 

As of December 31, 2017, it increased proven and probable reserve tonnes by 32 percent, extending its Oaxaca Mining Unit’s mine-life. The company is currently conducting drilling on the Arista and Switchback vein systems and believes it will add more reserves in the future.  

 

The company has about ~57 million shares outstanding and an annual dividend of 0.02 cents (paid monthly).  The company has returned $110 million to its shareholders in monthly dividends since commercial production commenced July 1, 2010. It just recently declared its 95th dividend. It also offers its shareholders the option to convert their cash dividends into physical gold and silver for delivery.  

 

The company will benefit significantly from any further price increases in precious metals and increases in metal reserves, however in the meantime base metals are maintaining a healthy and profitable balance sheet. 

 

Legal Notice / Disclaimer: This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. GoldSeek.com, have based this document on information obtained from sources it believes to be reliable but which it has not independently verified; GoldSeek.com makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of GoldSeek.com only and are subject to change without notice. GoldSeek.com assume no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.

Additional Disclosure: The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. The author of this report is not a registered financial advisor. Readers should not view this material as offering investment related advice. Authors have taken precautions to ensure accuracy of information provided. Information collected and presented are from what is perceived as reliable sources, but since the information source(s) are beyond our control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. The information presented in stock reports are not a specific buy or sell recommendation and is presented solely for informational purposes only. The author/publisher may or may not have a position in the securities and/or options relating thereto, & may make purchases and/or sales of these securities relating thereto from time to time in the open market or otherwise outside of the trading timeframe listed above. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. The companies mentioned herein may be sponsor of GoldSeek.com. Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.

 


| Digg This Article
 -- Published: Thursday, 3 May 2018 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus







 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.