-- Published: Tuesday, 5 May 2020 | Print | Disqus
COLORADO SPRINGS, CO, May 05, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Gold Resource Corporation (NYSE American: GORO) (the “Company” or “GRC”) reported consolidated production results for the first quarter ended March 31, 2020 of 10,142 ounces of gold and 407,625 ounces of silver. In addition to precious metals, the Company produced base metals resulting in net revenue of $28 million and $5 million operating cash flow for the quarter. At the end of the quarter the Mexican government declared a country-wide health emergency and mandatory non-essential business suspension due to the novel coronavirus (COVID-19) global pandemic. The Company was required by the Mexican government to suspend its Mexico operations and the Company subsequently withdrew its 2020 production outlook. Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. The Company has returned $114 million to its shareholders in consecutive monthly dividends since July 2010 and offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery.
Q1 2020 HIGHLIGHTS
- Strong balance sheet with $18.4 million cash and cash equivalents;
- $28.0 million net sales;
- Operating cash flow of $5 million;
- Precious metal quarterly production on target with 10,142 gold ounces and 407,625 silver ounces produced;
- $4.1 million gold and silver bullion inventory; and
- $0.01 per share dividend distribution for quarter.
Overview of Q1 2020 Results
Production from both mining units were within targeted ranges prior to the Company withdrawing its 2020 production outlook due to the pandemic. First quarter Oaxaca Mining Unit (OMU) production totaled 6,450 ounces of gold, 402,542 ounces of silver, 488 tonnes of copper, 2,514 tonnes of lead and 5,844 tonnes of zinc. First quarter production from the Company’s Nevada Mining Unit (NMU) totaled 3,692 ounces of gold.
The Company sold 8,614 precious metal gold equivalent ounces at a total cash cost of $918 per ounce (after by-product credits) at its OMU. Falling base metal markets and record high treatment charges negatively impacted revenues and costs during the quarter. OMU average realized metal prices during the quarter included $1,670 per ounce gold and $17.03 per ounce silver*. The Company sold 3,755 gold ounces from its Isabella Pearl mine at a total cash cost of $1,327 per ounce (after by-product credits) at an average realized price of $1,575 per gold ounce*. The Company recorded a net loss of $3.1 million, or $0.05 per share because of lower revenues and higher non-cash depreciation and amortization. The Company generated $5 million in operating cash flow, and paid $0.7 million to its shareholders in dividends, or $0.01 per share during the quarter. Cash and cash equivalents at quarter end totaled $18.4 million.
Oaxaca Mining Unit operations were suspended on April 1, 2020 when the Mexican government declared a national emergency due to the COVID-19 global pandemic. At that time, the Company put its OMU operations into care and maintenance and withdrew its 2020 production outlook. The national emergency declaration is currently set to expire on May 30, 2020. Based on government signaling of potential early business restarts for less COVID-19 impacted zones, the Company has recently submitted its early-start proposal to the Mexican federal government due to Oaxaca being one of zones least impacted by the virus.
*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.
With the NMU continuing to operate, and in preparation for restarting our OMU, the Company strives to mitigate the spread of COVID-19 and protect the health and safety of our employees, contractors, and communities in which we operate. The Company has taken precautionary measures including specialized training, social distancing, a work-from-home mandate where possible, and close monitoring of national and regional COVID-19 impacts and governmental guidelines. To date, the Company is not aware of any cases of COVID-19 at its operations. With the ever changing and fluid nature of the pandemic impact, Company management analyzed various scenarios whereby a forced and/or prolonged suspension of one or both mining units were sustained.
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-- Published: Tuesday, 5 May 2020 | E-Mail | Print | Source: GoldSeek.com