Gold resource corporation reports robust financial results and strong balance sheet for the first quarter 2022
Denver--(business wire)--gold resource corporation (nyse american: goro) (the “company”) sold a total of 8,381 ounces of gold and 265,407 ounces of silver in q 1 2022 for a gold equivalent total of 11,729 ounces. additionally, the company sold 4,359 tonnes of zinc, 408 tonnes of copper, and 1,639 tonnes of lead. allen palmiere, president and ceo, said, “our operations delivered excellent results during the first quarter 2022. quarter over quarter processing costs per tonne held steady despite a hyper inflationary environment. likewise, we reinvested $7.1 million into exploration and infrastructure improvements at the don david gold mine during the quarter. another $1.1 million was invested to progress the feasibility study and permitting initiatives at the back forty project in michigan. our investments in both mexico and michigan are focused on favorably impacting our environment, social and governance programs while creating operational efficiencies and longevity.” q1 2022 highlights additional highlights for the first quarter ended march 31, 2022, are summarized below: strategic for the eighth consecutive year, the don david gold mine earned the prestigious empresa socialmente responsable (“esr”) award from the mexican center for philanthropy (cemefi). awards are given to organizations who demonstrate a commitment to supporting social and environmental protection programs within their local communities. during the quarter, the company purchased and processed a thousand tonnes of tailings material from a nearby community in an effort to ensure the proper environmental treatment and storage of the material. patrick frenette was hired as vice president, technical services and steve donohue was seconded as vice president, environmental and regulatory affairs (michigan) to further derisk the successful delivery of the optimized feasibility study and permit applications for the back forty project. $0.9 million was distributed in shareholder dividends this quarter, totaling $120.3 million since 2010. operational two lost time incidents occurred during the quarter. both incidents were thoroughly investigated, and the appropriate actions taken. financial working capital was $32.4 million at march 31, 2022, $3.1 million higher than at december 31, 2021. the increase is primarily due to an increase in accounts receivables as a result of higher base metal prices and timing of shipments in march. total cash cost for the quarter was $ (121) per gold equivalent (“aueq”) ounce (after co-product credits) and total all-in sustaining cost for the quarter was $499 per aueq ounce (after co-product credits). both non-gaap measures were favorably impacted by co-product credits for base metals.1 trending highlights 2021 2022 q1 q2 q3 q4 q1 operating data total tonnes milled 138,980 129,590 98,010 135,398 136,844 average grade gold (g/t) 1.68 1.93 2.68 1.93 3.00 silver (g/t) 72 77 91 82 81 copper (%) 0.43 0.36 0.37 0.38 0.41 lead (%) 1.70 1.63 2.29 2.17 1.97 zinc (%) 4.29 3.64 4.79 4.77 4.89 metal production (before payable metal deductions) gold (ozs.) 6,097 6,555 6,933 6,853 11,187 silver (ozs.) 307,610 295,979 265,829 330,873 332,292 copper (tonnes) 441 368 284 413 431 lead (tonnes) 1,737 1,654 1,808 2,345 2,073 zinc (tonnes) 4,377 3,683 3,920 5,349 5,562 metal produced and sold gold (ozs.) 5,019 5,697 5,809 6,119 8,381 silver (ozs.) 253,061 270,321 255,394 287,805 265,407 copper (tonnes) 382 365 268 405 408 lead (tonnes) 1,176 1,214 1,550 2,059 1,639 zinc (tonnes) 3,134 3,193 3,059 4,167 4,359 average metal prices realized gold ($ per oz.) 1,787 1,822 1,762 1,811 1,898 silver ($ per oz.) 26.77 26.88 23.19 23.51 23.94 copper ($ per tonne) 8,873 10,375 9,092 9,768 10,144 lead ($ per tonne) 2,082 2,162 2,397 2,339 2,347 zinc ($ per tonne) 2,797 2,945 3,032 3,466 3,842 precious metal gold equivalent ounces sold gold ounces 5,019 5,697 5,809 6,119 8,381 gold equivalent ounces from silver 3,791 3,999 3,356 3,736 3,348 total aueq oz 8,810 9,696 9,165 9,855 11,729 financial data ($'s in thousands except for per ounce) total sales, net $ 27,268 $ 30,836 $ 29,029 $ 38,063 $ 45,417 earnings from mining operations before depreciation and amortization 11,974 11,259 11,766 17,744 25,281 total cash cost after co-product credits per aueq oz sold 408 713 466 73 (121) total consolidated all-in sustaining cost after co-product credits per aueq oz sold 937 1,280 1,031 451 499 production costs 15,243 19,523 17,216 20,252 20,074 production costs/tonnes milled 110 151 176 150 147 earnings before interest, taxes, depreciation and amortization 8,520 7,413 7,402 10,304 15,328 operating cash flows 6,831 9,298 5,743 12,911 4,230 net income 2,527 1,283 1,529 2,689 4,019 earnings per share - basic $ 0.03 $ 0.02 $ 0.02 $ 0.03 $ 0.05 1 see management’s discussion and analysis of financial condition and results of operations – non-gaap measures below for a reconciliation of non-gaap measures to applicable gaap measures. 2022 capital and exploration investment summary for the three months ended march 31, 2022 2022 full year guidance (in thousands) sustaining investments: underground development capital $ 1,582 $ 8.5 - 9.5 million infill drilling and exploration development capital 2,155 7.0 - 7.5 million other sustaining capital capital 859 4.0 - 4.5 million subtotal of sustaining investments: 4,596 growth investments: ddgm growth: gold regrind capital 571 - dry stack completion capital 782 - surface exploration / other exploration 730 2.5 – 3.0 million underground exploration drilling exploration 507 3.0 - 3.5 million back forty growth: back forty – feasibility study & permits exploration 1,068 8.0 -9.0 million subtotal of growth investments: 3,658 total capital and exploration: $ 8,254 $ 33.0 - 37.0 million the company’s investment in mexico continued in q1 2022 totaling $7.1 million. our investment in mexico is focused on favorably impacting our environment, social and governance programs while creating operational efficiencies and longevity. year-to-date at the back forty project, $1.1 million has been invested in feasibility and permitting initiatives. gold regrind project: regrinding of the zinc tailings is expected to increase gold recovery by 6% to 10%. the reground material will be leached to produce dorÉ bars. completion and commissioning are expected in q2 2022. as of march 31, 2022, a total of $1.6 million has been invested in this project, $1.1 million in 2021. another $0.2 million is expected to be spent before completion. dry stack tailings project: construction of the water filtration plant and dry stack tailings facilities was completed in 2021. during q1 2022, work continued to optimize the operations of the filtration plant. through march 2022, 15,499 tons of tailings were processed through the plant. the dry stack facilities will conserve and recirculate water, eliminate risks related to traditional tailings facilities, accelerate reclamation of certain areas of the open pit mine, and extend the life of the operations. the dry-stacked tailings will accelerate reclamation of certain areas of the open pit mine, extend the life of the operations, and reduce water consumption as approximately 80% of the process water will be available for reuse. as of march 31, 2022, a total of $14.8 million has been invested in this project, $14.0 million through 2021. underground and exploration development: mine development during the quarter included ramps and accesses to different areas of the deposit and exploration development drifts. a total of 1,094 meters of development, at a cost of $2.4 million, was completed during the quarter. underground mine development was $1.6 million and exploration development was $0.8 million (included in infill drilling and exploration development in the table above). we plan to invest a total of $8.5 million to $9.5 million in underground development and an additional $4.0 million to $4.5 million in exploration development in 2022. back forty feasibility and permitting: work on the optimized feasibility study progressed during q1 2022. current initiatives are focused on mine planning and process plant design. environmental considerations are a key factor in the overall site layout and infrastructure decisions being made. the feasibility study is expected to be released the second half of 2022 followed by permit applications being submitted with state agencies in michigan. q1 2022 conference call the company will host a conference call tomorrow, tuesday, may 10, 2022 at 11:00 a.m. eastern time. the conference call will be recorded and posted to the company’s website later in the day following the conclusion of the call. following prepared remarks, allen palmiere, president and chief executive officer, alberto reyes, chief operating officer and kim perry, 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://app.webinar.net/dg5l9rq3r7x to join the call via telephone, please use the following dial-in details: participant toll free: (888) 440-2094 international: (438) 803-0544 conference id: 2818458 please connect to the conference call at least 10 minutes prior to the start time using one of the connection options listed above. about grc: gold resource corporation is a gold and silver producer, developer, and explorer with its operations centered on the don david gold mine in oaxaca, mexico. under the direction of an experienced board and senior leadership team, the company’s focus is to unlock the significant upside potential of its existing infrastructure and large land position surrounding the mine in oaxaca, mexico and to develop the back forty project in michigan, usa. for more information, please visit grc’s website, located at www.goldresourcecorp.com and read the company’s form 10-k for an understanding of the risk factors associated with its business.
