Gold Resource Corporation Reports Second Quarter Net Income of $1.8 Million, or $0.03 Per Share, and Positioned to Increase 2019 Production Outlook

COLORADO SPRINGS, Aug. 06, 2019 -- Gold Resource Corporation (NYSE American: GORO) (the “Company” or “GRC”) reported production results for the second quarter ended June 30, 2019 of 9,559 ounces of gold and 467,484 ounces of silver, which along with base metal revenue generated $29.4 million in net revenue and $1.8 million, or $0.03 per share, in net income for the quarter. The Company maintains its 2019 Oaxaca Mining Unit (“OMU”) production outlook and plans to increase its global production outlook once commercial production levels are reached at its Nevada Mining Unit (“NMU”) Isabella Pearl mine. The Company produced first gold at Isabella Pearl in just over ten months of breaking ground on the project, with the project now in the gold production ramp-up phase. Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. The Company has returned $112 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.

Second quarter production from the Company’s Oaxaca Mining Unit totaled 7,881 ounces of gold, 466,512 ounces of silver, 482 tonnes of copper, 2,304 tonnes of lead and 6,054 tonnes of zinc. Through the first half of 2019, the Company’s OMU production numbers total 14,419 ounces of gold, 831,165 ounces of silver, 915 tonnes of copper, 4,457 tonnes of lead and 11,892 tonnes of zinc. Second quarter production from the Company’s Nevada Mining Unit, which produced first project gold during the quarter, totaled 1,678 ounces of gold and 972 ounces of silver.

The Company maintains its 2019 OMU annual outlook, targeting a plus or minus ten percent production range of 27,000 gold ounces and 1,700,000 silver ounces. In addition, with its Isabella Pearl mine in the ramp-up phase, the Company is positioned to increase its 2019 annual production outlook in the near future once the project has reached commercial production levels.

The Company sold 12,060 precious metal gold equivalent ounces at a total cash cost of $291 per ounce (after by-product credits) at its OMU, benefiting from strong base metal production and sales. OMU average realized metal prices during the quarter included $1,338 per ounce gold and $14.94 per ounce silver*. The Company sold 1,131 gold ounces from its Isabella Pearl mine at an average realized price of $1,363 per gold ounce. The Company recorded net income of $1.8 million, or $0.03 per share, and 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 $7.9 million.

“Gold Resource Corporation has now achieved dual-jurisdictional precious metal producer status in two mining friendly jurisdictions in North America.” stated Mr. Jason Reid, President and CEO of Gold Resource Corporation. “We now approach important near-term catalysts to increase shareholder value, including our targeted 100% increase to the Company’s gold production profile once the Nevada mine is fully operational, and possible future monthly dividend increases.”

*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 tables summarize certain information about our Oaxaca and Nevada Mining Units for the three and six months ended June 30, 2019 and 2018:

The following Sales Statistics tables summarize certain information about our Oaxaca and Nevada Mining Units operations for three and six months ended June 30, 2019 and 2018:

The following information summarizes Gold Resource Corporation’s financial condition at June 30, 2019 and December 31, 2018, its results of operations including the three and six months ended June 30, 2019 and 2018, and its cash flows for the six months ended June 30, 2019 and 2018. The summary data as of June 30, 2019 and for the three and six months ended June 30, 2019 and 2018 is unaudited; the summary data for the year ended December 31, 2018 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2018, 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 precious metal gold equivalent per ounce and total all-in sustaining cost per precious metal gold equivalent per ounce 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.

GOLD RESOURCE CORPORATION
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except share and per share amounts)

	June 30,			December 31,
	2019			2018
	*(Unaudited)*
ASSETS
Current assets:
Cash and cash equivalents	$	7,939		$	7,762
Gold and silver rounds/bullion		3,874			3,637
Accounts receivable		5,630			1,744
Inventories, net		26,531			14,342
Prepaid taxes		3,342			1,126
Prepaid expenses and other current assets		3,786			2,745
Total current assets		51,102			31,356
Property, plant and mine development, net		120,154			111,242
Operating lease assets, net		11,043			-
Deferred tax assets, net		6,284			7,372
Other non-current assets		3,144			361
Total assets	$	191,727		$	150,331
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	17,149		$	12,429
Loans payable, current		862			765
Finance lease liabilities, current		434			412
Operating lease liabilities, current		8,207			-
Mining royalty taxes payable, net		849			1,926
Accrued expenses and other current liabilities		2,909			2,030
Total current liabilities		30,410			17,562
Reclamation and remediation liabilities		4,055			3,298
Loans payable, long-term		1,226			1,378
Finance lease liabilities, long-term		661			831
Operating lease liabilities, long-term		2,842			-
Total liabilities		39,194			23,069
Shareholders' equity:
Common stock - $0.001 par value, 100,000,000 shares authorized:
64,811,555 and 58,850,431 shares outstanding at June 30, 2019 and December 31, 2018, respectively		128			69
Additional paid-in capital		144,750			121,592
Retained earnings		14,710			12,656
Treasury stock at cost, 336,398 shares		(5,884	)		(5,884	)
Accumulated other comprehensive loss		(1,171	)		(1,171	)
Total shareholders' equity		152,533			127,262
Total liabilities and shareholders' equity	$	191,727		$	150,331

GOLD RESOURCE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share amounts)
(Unaudited)

	Three months ended June 30,					Six months ended June 30,
	2019			2018		2019			2018
Sales, net	$	29,374		$	30,768	$	55,952		$	62,919
Mine cost of sales:
Production costs		18,599			17,579		36,278			33,114
Depreciation and amortization		4,243			3,579		7,687			7,072
Reclamation and remediation		41			89		57			292
Total mine cost of sales		22,883			21,247		44,022			40,478
Mine gross profit		6,491			9,521		11,930			22,441
Costs and expenses:
General and administrative expenses		2,708			2,225		4,719			4,579
Exploration expenses		631			1,251		2,081			2,436
Other (income) expense, net		(107	)		510		(82	)		788
Total costs and expenses		3,232			3,986		6,718			7,803
Income before income taxes		3,259			5,535		5,212			14,638
Provision for income taxes		1,461			1,781		2,532			5,427
Net income	$	1,798		$	3,754	$	2,680		$	9,211
Net income per common share:
Basic	$	0.03		$	0.07	$	0.04		$	0.16
Diluted	$	0.03		$	0.06	$	0.04		$	0.16
Weighted average shares outstanding:
Basic		62,778,445			57,315,472		61,729,871			57,218,389
Diluted		63,066,616			58,314,123		62,079,859			58,153,350

GOLD RESOURCE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
(Unaudited)

	Six months ended June 30,
	2019			2018
Cash flows from operating activities:
Net income	$	2,680		$	9,211
Adjustments to reconcile net income to net cash from operating activities:
Deferred income taxes		1,275			(1,134	)
Depreciation and amortization		7,921			7,386
Stock-based compensation		1,214			485
Other operating adjustments		(293	)		364
Changes in operating assets and liabilities:
Accounts receivable		(3,886	)		1,157
Inventories		(8,744	)		(897	)
Prepaid expenses and other current assets		97			7
Other non-current assets		(2,012	)		134
Accounts payable and other accrued liabilities		6,183			4,564
Mining royalty and income taxes payable, net		(3,328	)		(1,815	)
Net cash provided by operating activities		1,107			19,462

Cash flows from investing activities:
Capital expenditures		(21,438	)		(15,108	)
Other investing activities		1			4
Net cash used in investing activities		(21,437	)		(15,104	)

Cash flows from financing activities:
Proceeds from the exercise of stock options		98			1,124
Proceeds from issuance of stock		21,807			-
Dividends paid		(617	)		(571	)
Repayment of loan payable		(385	)		(281	)
Repayment of finance leases		(204	)		(189	)
Net cash provided by financing activities		20,699			83

Effect of exchange rate changes on cash and cash equivalents		(192	)		(186	)
Net increase in cash and cash equivalents		177			4,255
Cash and cash equivalents at beginning of period		7,762			22,390
Cash and cash equivalents at end of period	$	7,939		$	26,645

Supplemental Cash Flow Information
Interest expense paid	$	79		$	94
Income and mining taxes paid	$	2,897		$	6,298
Non-cash investing activities:
Change in accrued capital expenditures	$	(1,214	)	$	918
Change in estimate for asset retirement cost	$	638		$	-
Equipment purchased through loan payable	$	330		$	-
Equipment purchased under finance leases	$	56		$	-

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 $112 million back 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. 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.

Contacts:

Corporate Development
Greg Patterson
303-320-7708
www.Goldresourcecorp.com

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