Gold Resources Corporation Announces Second Quarter 2024 Financial Results

Denver, August 6, 2024–(Business Wire)–Gold Resources Corporation (NYSE American: Grounder) (“company) is pleased to announce second quarter operating results for its Don David Gold Mine (DDGM), located near Oaxaca, Mexico, as well as a corporate update on its other operations.

Highlights for Q2 2024 include:

• It produced and sold 2,724 ounces of gold and 234,560 ounces of silver.

• Produced and sold 1,771 tons of zinc, 197 tons of copper, and 491 tons of lead

• Cash balance of $5.3 million and working capital of $14.3 million as of June 30, 2024

“Our drilling program progressed with positive results during the quarter, leading to further expansion of our resources and reserves and extension of mine life, enhancing our future plans,” said President and CEO Allen Palmiere. “Circumstances outside of our control caused some delays in production, including excessive rain during hurricane season that made the ore too wet to process at the smelter, and various social issues leading up to the Mexican presidential elections that caused unusual work delays. These issues were offset by several positive factors, including the strengthening of the U.S. dollar against the peso and the metal we produced being sold at higher than budgeted prices.”

Corporate and Financial:

• Net loss for the quarter was $27.7 million, or $0.30 per share, after deducting a tax expense of $16.5 million from a valuation allowance recorded in the second quarter of 2024 against the DDGM deferred tax asset, $3.7 million of additional interest on streaming liabilities due to the increase in the gold consensus price in the second quarter, and a $1.2 million unrealized investment loss on Greenlight Metals shares.

Don David Goldmine:

• In the second quarter of 2024, DDGM produced and sold a total of 5,625 ounces of gold equivalent, consisting of 2,724 ounces of gold and 234,560 ounces of silver, at average selling prices of $2,465 and $30.49 per ounce, respectively.

• During the second quarter, the underground diamond drilling program progressed on schedule and as planned with good results produced using two drill rigs. Infill drilling continued to upgrade inferred resources to the measured and indicated resource categories, with particular focus on the recently discovered Three Sisters and Gloria vein systems. Infill drilling during this period continued to identify and define high-grade deposits in the Sandy 1 and Sandy 2 deposits in the Three Sisters system. In addition, grade control drilling continued to prove economic mineralization in deposits scheduled for production in both the Arista and Switchback systems.

• There were no lost time injuries during the quarter, bringing our Lost Time Injury Frequency Rate (LTIFR) for the year to “ZERO.” Safety is our number one priority at Gold Resources Corporation. While we have a good track record at DDGM, we strive to improve our safety practices, awareness and training each quarter.

2024 capital and exploration investment summary

Featured highlights

Q2 2024 Conference Call

The Company will hold a conference call on Wednesday, August 7, 2024 at 10:00 a.m. Mountain Standard Time.

The conference call will be recorded and posted on our website the same day after the conclusion of the call. Following prepared remarks, President and Chief Executive Officer Allen Palmiere, Chief Operating Officer Alberto Reyes and Chief Financial Officer Chet Holyoak will host a live question and answer session. There are two ways to join the conference call:

To join the call via webcast, please click on the following link:
https://onlin experience.com/Launch/QReg/ShowUUID=0D108D2F-3118-477B-B61A-9FF14F9AF182

To join the call by phone, use the following dial-in details:

Please connect to the conference call at least 10 minutes before the start time using one of the connection options above.

About GRC:

Gold Resources Corporation is a gold and silver production, development and exploration company whose operations are centered around the Don David gold mine in Oaxaca, Mexico. Base metals of critical importance to the United States are also produced as by-products. Under the direction of an experienced Board of Directors and senior management team, the company is focused on unlocking the significant potential benefits of the existing infrastructure and large tracts of land surrounding the mine in Oaxaca, Mexico, and developing the Back Forty Project in Michigan, USA. For more information, please visit GRC’s website at http://www.grc.com/. Gold Resources Corporation Please read the company’s Form 10-K to understand the risk factors associated with the company’s business.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by words such as “may,” “might,” “will,” “could,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “potential,” or the negative of these terms or other similar terminology, although not all forward-looking statements contain these terms. They are not historical facts and are not guarantees of future performance. Any express or implied statements contained in this announcement that are not statements of historical fact may be deemed to be forward-looking statements. These include, but are not limited to, statements regarding the timing and scope of the process of exploring strategic options for the company, including a possible sale of the company. The company’s actual results, financial situation and development may differ, possibly materially, from the expected results, development and financial situation indicated in these forward-looking statements. Management believes that these forward-looking statements are reasonable at the time they are made.You are cautioned, however, not to place undue reliance on such forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. These forward-looking statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties that could cause actual results to differ materially from expectations, including whether the objectives of the strategic alternatives review process will be achieved, the terms, structure, benefits and costs of the strategic transaction, the timing of the transaction and whether the transaction will be completed. risks that the review of strategic alternatives and the announcement of such review may have an adverse effect on the Company’s ability to retain and employ key personnel and maintain relationships with suppliers, employees, shareholders and other business relationships, as well as on the Company’s results of operations and business generally; the risk that the review of strategic alternatives may divert the attention and time of the Company’s management; the risk of unanticipated costs or expenses resulting from the review; the risk of litigation related to the review; and the risks and uncertainties described under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023 and from time to time in our future reports filed with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240806467990/en/

contact address

Chet Holyoak
CFO
email address:
Gold Resources Corporation