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

Battle for Control of Gold - video
By: Gary Savage

The US Economy: All Roads Lead To Gold
By: Stewart Thomson, Graceland Updates

Precious Metals Update Video: Gold is in a bounce
By: Ira Epstein

Plethora of Potential Crisis Triggers
By: Jim Willie, CB

Miners Are Facing Challenges Globally
By: Frank Holmes, US Funds

Repocalypse: The Little Crisis that Roared
By: David Haggith

The Perversity of Negative Interest
By: Keith Weiner, Monetary Metals

Cracks Spread in the Bullion Banks’ Price Management System
By: Clint Siegner

Precious Metals Update Video: Gold nearing a technical resistance test
By: Ira Epstein

Silver Equities Outperforming Year-to-Date
By: Ed Steer

 
Search

GoldSeek Web

 
Gold Resource Corporation Reports Record Third Quarter Gold Production With Net Income of $3 Million, or $0.05 Per Share


 -- Published: Wednesday, 30 October 2019 | Print  | Disqus 

Gold Resource Corporation Announces Third Quarter Conference Call

 

Gold Resource Corporation’s CEO Mr. Jason Reid will host the conference call Wednesday, October 30, 2019 at 11:00 a.m. Eastern Time.  Topics of discussion will include third quarter results and an update on current operations.  The conference call will be recorded and posted to the Company’s website in three to five business days from recording.

Q&A

Following Mr. Reid’s opening remarks, the Company will answer questions during a live Q&A period. 

Date:  Wednesday, October 30, 2019

Time:   11:00 AM Eastern (9:00 AM Mountain)

Attendee Access Information:

            Title:  Gold Resource Corporation Third Quarter Earnings Call

            Host Name:  Jason Reid

            Company Name:  Gold Resource Corporation

To Join the conference call, please click on the following link (“click to join” being the easiest):  view the complete list of access numbers and conference start times

Please connect to the conference call at least 10 minutes prior to the start time using the options listed above.

Gold Resource Corporation Reports Record Third Quarter Gold Production With Net Income of $3 Million, or $0.05 Per Share

 

COLORADO SPRINGS, Oct. 29, 2019 (GLOBE NEWSWIRE) --  Gold Resource Corporation (NYSE American: GORO) (the “Company” or “GRC”) reported record gold production results for the third quarter ended September 30, 2019 of 11,165 ounces of gold.  In addition, the Company produced 477,297 ounces of silver, which along with base metal revenue generated $40.1 million in net revenue and $3.0 million, or $0.05 per share, in net income for the quarter.  The Company recently increased its 2019 global gold production outlook 42% to 38,400 ounces, as the Isabella Pearl mine in Mineral County, Nevada continues its production ramp up.  The Company also maintains its 2019 Oaxaca Mining Unit (“OMU”) silver production outlook of 1.7 million ounces.  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.

Q3 2019 HIGHLIGHTS

  • $3.0 million net income, or $0.05 per share
  • $8.8 million cash and cash equivalents
  • $40.1 million net sales
  • $9.3 million mine gross profit
  • Record gold production of 11,165 ounces
  • 477,297 silver ounces produced
  • $197 total cash cost per gold equivalent ounce sold, after by-product credits (OMU)
  • $520 total all-in sustaining cost per precious metal gold equivalent ounce sold (OMU)
  • $4.2 million gold and silver bullion
  • $20.6 million base metal by-product credits, or $1,888 per precious metal gold ounce sold (OMU)
  • $0.3 million dividend distributions, or $0.005 per share for quarter
  • Nevada Mining Unit’s Isabella Pearl mine reached commercial production levels in September
  • No ATM share sales since July 30, 2019

 

Overview of Q3 2019 Results

Third quarter OMU production totaled 7,462 ounces of gold, 473,810 ounces of silver, 492 tonnes of copper, 2,459 tonnes of lead and 6,057 tonnes of zinc.  Through the first three quarters of 2019, OMU production numbers total 21,881 ounces of gold, 1,304,975 ounces of silver, 1,407 tonnes of copper, 6,916 tonnes of lead and 17,949 tonnes of zinc.  Third quarter production from the Company’s Nevada Mining Unit (NMU) totaled 3,703 ounces of gold.  Since producing first gold in April 2019, the NMU has produced 5,381 ounces of gold through September 30, 2019. 

The Company maintains its 2019 OMU annual outlook, targeting 27,000 gold ounces and 1,700,000 silver ounces.  In addition, the Company’s NMU targets 6,000 ounces of gold production for the fourth quarter of 2019.  This fourth quarter production target paired with 5,381 gold ounces produced year-to-date, increases the Company’s global 2019 annual gold production outlook to 38,400 ounces.

The Company sold 10,887 precious metal gold equivalent ounces at a total cash cost of $197 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 $1,490 per ounce gold and $17.08 per ounce silver*.  The Company sold 4,044 gold ounces from its Isabella Pearl mine at an average realized price of $1,481 per gold ounce*.  The Company recorded net income of $3.0 million, or $0.05 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 $8.8 million.

“Our Oaxaca Mining Unit’s strong operational results, coupled with our continued ramp up of our Isabella Pearl mine, which recently declared commercial production, resulted in record gold production for the third quarter,” stated Mr. Jason Reid, President and CEO of Gold Resource Corporation.  “The Company is on a trajectory to increase its future global annual gold production by more than 100 percent.  We are also on a trajectory of shifting the Company’s primary revenue distribution to gold with continued excellent exposure to silver and base metals.  In addition, we have become a multi-jurisdictional mining company with two producing mining units and a vast property portfolio.  These and other positive results enabled the Company’s Board of Directors to increase the monthly instituted dividend 100 percent with last week’s October dividend declaration.”

All production outlook targets include a plus or minus 10 percent range.

*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 nine months ended September 30, 2019 and 2018:

Oaxaca Mining Unit

             
  Three months ended September 30,  Nine months ended September 30, 
  2019 2018 2019 2018
Arista Mine            
Milled            
Tonnes Milled   163,259   143,110   469,167   410,697
Grade            
Average Gold Grade (g/t)   1.76   1.51   1.72   1.64
Average Silver Grade (g/t)   85   72   84   106
Average Copper Grade (%)   0.39   0.37   0.38   0.37
Average Lead Grade (%)   1.92   1.82   1.91   1.64
Average Zinc Grade (%)   4.70   4.21   4.71   4.23
Aguila Open Pit Mine            
Milled            
Tonnes Milled   3,640   11,404   23,976   25,730
Grade            
Average Gold Grade (g/t)   1.49   2.30   1.76   2.11
Average Silver Grade (g/t)   58   39   45   41
Mirador Mine            
Milled            
Tonnes Milled   11,690   3,561   22,540   11,244
Grade            
Average Gold Grade (g/t)   0.76   1.41   0.95   1.40
Average Silver Grade (g/t)   197   105   203   158
Combined            
Tonnes milled   178,589   158,075   515,683   447,671
Tonnes Milled per Day (1)   2,007   1,796   1,967   1,724
Metal production (before payable metal deductions) (2)            
Gold (ozs.)   7,462   6,411   21,881   18,864
Silver (ozs.)   473,810   321,590   1,304,975   1,341,429
Copper (tonnes)   492   434   1,407   1,206
Lead (tonnes)   2,459   2,119   6,916   5,274
Zinc (tonnes)   6,057   4,970   17,949   14,236
  1. Based on actual days the mill operated during the period.
  2. The difference between what we report as "ounces/tonnes produced" and "payable ounces/tonnes sold" is attributable to the difference between the quantities of metals contained in the concentrates we produce versus the portion of those metals actually paid for according to the terms of our sales contracts. Differences can also arise from inventory changes incidental to shipping schedules, or variances in ore grades and recoveries which impact the amount of metals contained in concentrates produced and sold.

Nevada Mining Unit

             
  Three months ended September 30,  Nine months ended September 30, 
  2019 2018 2019 2018
             
Ore mined            
Ore (tonnes)   82,169   -   770,446   -
Gold grade (g/t)   0.75   -   0.70   -
Low-grade stockpile (tonnes)            
Ore (tonnes)   83,394   -   472,120   -
Gold grade (g/t)   0.47   -   0.52   -
Waste (tonnes)   1,248,891   -   2,947,339   -
Metal production (before payable metal deductions) (1)            
Gold (ozs.)   3,703   -   5,381   -
Silver (ozs.)   3,487   -   4,459   -
  1. The difference between what we report as "ounces/tonnes produced" and "payable ounces/tonnes sold" is attributable to the difference between the quantities of metals contained in the concentrates we produce versus the portion of those metals actually paid for according to the terms of our sales contracts. Differences can also arise from inventory changes incidental to shipping schedules, or variances in ore grades and recoveries which impact the amount of metals contained in concentrates produced and sold.

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

Oaxaca Mining Unit

             
  Three months ended September 30,  Nine months ended September 30, 
  2019 2018 2019 2018
             
Metal sold            
Gold (ozs.)   6,175   5,721   17,201   16,744
Silver (ozs.)   411,088   301,717   1,096,131   1,244,092
Copper (tonnes)   451   378   1,220   1,101
Lead (tonnes)   2,188   1,905   5,961   4,862
Zinc (tonnes)   6,016   3,942   14,389   11,527
Average metal prices realized (1)            
Gold ($ per oz.)   1,490   1,183   1,391   1,275
Silver ($ per oz.)   17.08   14.69   15.94   16.10
Copper ($ per tonne)   5,659   5,593   6,027   6,526
Lead ($ per tonne)   2,012   1,931   1,976   2,266
Zinc ($ per tonne)   2,261   1,825   2,642   2,899
Precious metal gold equivalent ounces sold            
Gold Ounces   6,175   5,721   17,201   16,744
Gold Equivalent Ounces from Silver   4,712   3,745   12,561   15,710
Total Precious Metal Gold Equivalent Ounces   10,887   9,466   29,762   32,454
Total cash cost before by-product credits per precious metal gold equivalent ounce sold $ 2,085 $ 1,954 $ 2,201 $ 1,687
Total cash cost after by-product credits per precious metal gold equivalent ounce sold (2) $ 197 $ 582 $ 281 $ 97
Total all-in sustaining cost per precious metal gold equivalent ounce sold $ 520 $ 1,338 $ 677 $ 724


  1. 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.
  2. Total cash cost after by-product credits are significantly affected by base metals sales during the periods presented.

Nevada Mining Unit

             
  Three months ended September 30,  Nine months ended September 30, 
  2019 2018 2019 2018
             
Metal sold            
Gold (ozs.)   4,044   -   5,175   -
Silver (ozs.)   3,534   -   4,146   -
Average metal prices realized (1)            
Gold ($ per oz.)   1,481   -   1,455   -
Silver ($ per oz.)   17.56   -   17.19   -
Precious metal gold equivalent ounces sold            
Gold Ounces   4,044   -   5,175   -
Gold Equivalent Ounces from Silver   42   -   49   -
Total Precious Metal Gold Equivalent Ounces   4,086   -   5,224   -
Total cash cost before by-product credits per precious metal gold equivalent ounce sold $ 1,119 $ - $ 989 $ -
Total cash cost after by-product credits per precious metal gold equivalent ounce sold $ 1,103 $ - $ 975 $ -
Total all-in sustaining cost per precious metal gold equivalent ounce sold $ 1,125 $ - $ 992 $ -
  1. 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.

See Accompanying Tables

The following information summarizes Gold Resource Corporation’s financial condition at September 30, 2019 and December 31, 2018, its results of operations including the three and nine months ended September 30, 2019 and 2018, and its cash flows for the nine months ended September 30, 2019 and 2018. The summary data as of September 30, 2019 and for the three and nine months ended September 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)

       
  September 30,  December 31, 
  2019 2018
  (Unaudited)   
ASSETS      
Current assets:      
Cash and cash equivalents $ 8,757 $ 7,762
Gold and silver rounds/bullion   4,169   3,637
Accounts receivable, net   7,800   1,744
Inventories, net   24,065   14,342
Prepaid taxes   1,921   1,126
Prepaid expenses and other current assets   2,101   2,745
Total current assets   48,813   31,356
Property, plant and mine development, net   122,986   111,242
Operating lease assets, net   9,484   -
Deferred tax assets, net   6,357   7,372
Other non-current assets   4,195   361
Total assets $191,835 $ 150,331
LIABILITIES AND SHAREHOLDERS' EQUITY      
Current liabilities:      
Accounts payable $ 13,253 $ 12,429
Loans payable, current   870   765
Finance lease liabilities, current   440   412
Operating lease liabilities, current   8,630   -
Mining royalty taxes payable, net   846   1,926
Accrued expenses and other current liabilities   2,280   2,030
Total current liabilities   26,319   17,562
Reclamation and remediation liabilities   4,907   3,298
Loans payable, long-term   1,005   1,378
Finance lease liabilities, long-term   549   831
Operating lease liabilities, long-term   864   -
Total liabilities   33,644   23,069
Shareholders' equity:      
Common stock - $0.001 par value, 100,000,000 shares authorized:      
65,691,527 and 58,850,431 shares outstanding at September 30, 2019 and December 31, 2018, respectively   136   69
Additional paid-in capital   147,751   121,592
Retained earnings   17,359   12,656
Treasury stock at cost, 336,398 shares   (5,884)   (5,884)
Accumulated other comprehensive loss   (1,171)   (1,171)
Total shareholders' equity   158,191   127,262
Total liabilities and shareholders' equity $ 191,835 $ 150,331

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

             
  Three months ended September 30,  Nine months ended September 30, 
  2019 2018 2019 2018
Sales, net $40,066 $ 24,258 $ 96,018 $ 87,177
Mine cost of sales:            
Production costs  23,499   17,363   59,777   50,477
Depreciation and amortization  7,229   3,515   14,916   10,587
Reclamation and remediation  20   87   77   379
Total mine cost of sales   30,748   20,965   74,770   61,443
Mine gross profit   9,318   3,293   21,248   25,734
Costs and expenses:            
General and administrative expenses  2,194   2,140   6,913   6,719
Exploration expenses  1,129   1,304   3,210   3,740
Other expense, net   600   568   518   1,356
Total costs and expenses   3,923   4,012   10,641   11,815
Income (loss) before income taxes   5,395   (719)   10,607   13,919
Provision for income taxes  2,417   62   4,949   5,489
Net income (loss) $ 2,978 $ (781) $ 5,658 $ 8,430
Net income (loss) per common share:            
Basic $ 0.05 $ (0.01) $ 0.09 $ 0.15
Diluted $ 0.05 $ (0.01) $ 0.09 $ 0.14
Weighted average shares outstanding:            
Basic   65,495,958   57,642,966   63,001,178   57,361,809
Diluted   65,796,899   57,642,966   63,336,131   58,252,652


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

       
  Nine months ended September 30, 
  2019 2018
Cash flows from operating activities:      
Net income $ 5,658 $ 8,430
Adjustments to reconcile net income to net cash from operating activities:      
Deferred income taxes   1,091   (467)
Depreciation and amortization   15,273   11,096
Stock-based compensation   1,581   1,090
Other operating adjustments   314   706
Changes in operating assets and liabilities:      
Accounts receivable   (6,056)   1,456
Inventories   (7,119)   (340)
Prepaid expenses and other current assets   1,505   (390)
Other non-current assets   (2,882)   132
Accounts payable and other accrued liabilities   349   3,536
Mining royalty and income taxes payable, net   (1,944)   (4,428)
Net cash provided by operating activities   7,770   20,821
       
Cash flows from investing activities:      
Capital expenditures   (29,166)   (26,085)
Other investing activities   2   5
Net cash used in investing activities   (29,164)   (26,080)
       
Cash flows from financing activities:      
Proceeds from the exercise of stock options   98   1,261
Proceeds from issuance of stock   24,449   -
Dividends paid   (944)   (860)
Repayment of loans payable   (597)   (424)
Repayment of finance leases   (311)   (285)
Net cash provided by (used in) financing activities   22,695   (308)
       
Effect of exchange rate changes on cash and cash equivalents   (306)   (222)
Net increase (decrease) in cash and cash equivalents   995   (5,789)
Cash and cash equivalents at beginning of period   7,762   22,390
Cash and cash equivalents at end of period $ 8,757 $ 16,601
       
Supplemental Cash Flow Information      
Interest expense paid $ 121 $ 140
Income and mining taxes paid $ 3,743 $ 6,822
Non-cash investing activities:      
Change in accrued capital expenditures $ 158 $ 3,935
Change in estimate for asset retirement costs $ 1,476 $ 527
Equipment purchased through loan payable $ 330 $ 526
Equipment purchased under finance leases $ 56 $ 17

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

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: Wednesday, 30 October 2019 | 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.