Goldgroup Mining Inc 10-Q, filed Apr 29, 2021

Goldgroup Mining Inc. (GORO)

10-Q 2021-04-29 For: 2021-03-31

Added on August 02, 2026

About this 10-Q

Goldgroup Mining Inc filed this 10-Q on April 29, 2021, covering the quarter ended March 31, 2021.

Headline figures

Quarter ended March 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $27.27M; up 23.1% from $22.15M a year earlier
Net income: $2.53M; compared with a net loss of $3.12M a year earlier

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Title of each class	Trading Symbol	Name of each exchange where registered
Common Stock	GORO	NYSE American



Large accelerated filer	◻	Accelerated filer	☒

Non-accelerated filer	◻	Smaller reporting company	☐

		Emerging growth company	☐

		Page
Part I - FINANCIAL INFORMATION
	First Quarter Highlights	1
Item 1.	Ø Financial Statements
	Ø Condensed Consolidated Balance Sheets at March 31, 2021 (unaudited) and December 31, 2020	2
	Ø Condensed Consolidated Statements of Operations for the three months ended March 31, 2021 and 2020 (unaudited)	3
	Ø Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three months ended March 31, 2021 and 2020 (unaudited)	4
	Ø Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020 (unaudited)	5
	Ø Notes to Condensed Consolidated Financial Statements (unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
Item 4.	Controls and Procedures	27

Part II - OTHER INFORMATION
Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 3.	Defaults upon Senior Securities	28
Item 4.	Mine Safety Disclosures	28
Item 5.	Other Information	28
Item 6.	Exhibits	29
Signatures		30


	March 31,		December 31,
	2021		2020
ASSETS
Current assets:
Cash and cash equivalents	$	27,230	$	25,405
Gold and silver rounds/bullion		593		671
Accounts receivable, net		3,533		4,226
Inventories, net		11,584		9,995
Prepaid expenses and other current assets		1,552		2,576
Total current assets		44,492		42,873
Property, plant and mine development, net		62,965		62,511
Deferred tax assets, net		347		309
Other non-current assets		44		41
Total assets	$	107,848	$	105,734
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	7,725	$	8,782
Income taxes payable, net		1,368		73
Mining royalty taxes payable, net		853		955
Accrued expenses and other current liabilities		2,087		2,275
Total current liabilities		12,033		12,085
Reclamation and remediation liabilities		3,029		3,098
Other non-current liabilities		364		13
Total liabilities		15,426		15,196
Shareholders' equity:
Common stock - $0.001 par value, 100,000,000 shares authorized:
74,439,206 and 74,376,958 shares outstanding at March 31, 2021 and December 31, 2020, respectively		75		75
Additional paid-in capital		84,966		84,865
Retained earnings		14,436		12,653
Treasury stock at cost, 336,398 shares		(5,884)		(5,884)
Accumulated other comprehensive loss		(1,171)		(1,171)
Total shareholders' equity		92,422		90,538
Total liabilities and shareholders' equity	$	107,848	$	105,734


	Three months ended March 31,
	2021		2020
Sales, net	$	27,268	$	22,149
Mine cost of sales:
Production costs		15,243		15,959
Depreciation and amortization		3,399		6,013
Reclamation and remediation		51		49
Total mine cost of sales		18,693		22,021
Mine gross profit		8,575		128
Costs and expenses:
General and administrative expenses		1,581		1,805
Exploration expenses		1,207		978
Restructuring expenses		496		-
Stock-based compensation		484		470
Other (income) expense, net		(314)		1,465
Total costs and expenses		3,454		4,718
Income (loss) before income taxes		5,121		(4,590)
Provision for income taxes		2,594		(1,372)
Net income (loss) from continuing operations		2,527		(3,218)
Net income (loss) from discontinued operations, net of income taxes		-		97
Net income (loss)	$	2,527	$	(3,121)
Net income per common share:
Basic and diluted net income (loss) per common share from continuing operations		0.03		(0.05)

Weighted average shares outstanding:
Basic		74,405,031		66,022,202
Diluted		74,761,882		66,022,202


	Three Months Ended March 31, 2021 and 2020
	Number of Common Shares	Par Value of Common Shares		Additional Paid- in Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		Total Shareholders' Equity
Balance, December 31, 2019	66,027,925	$	66	$	148,171	$	16,876	$	(5,884)	$	(1,171)	$	158,058
Stock-based compensation	-		-		470		-		-		-		470
Common stock issued for vested restricted stock units	-		-		-		-		-		-		-
Dividends declared	-		-		-		(665)		-		-		(665)
Issuance of stock, net of issuance costs	3,850,000		4		10,346		-		-		-		10,350
Net loss	-		-		-		(3,121)		-		-		(3,121)
Balance, March 31, 2020	69,877,925	$	70	$	158,987	$	13,090	$	(5,884)	$	(1,171)	$	165,092

Balance, December 31, 2020	74,713,356	$	75	$	84,865	$	12,653	$	(5,884)	$	(1,171)	$	90,538
Stock-based compensation	-		-		141		-		-		-		141
Net stock options exercised	125,000		-		165		-		-		-		165
Dividends declared	-		-		-		(744)		-		-		(744)
Common stock issued for vested restricted stock units	2,614		-		-		-		-		-		-
Surrender of stock for taxes due on vesting	(65,366)		-		(205)		-		-		-		(205)
Net income	-		-		-		2,527		-		-		2,527
Balance, March 31, 2021	74,775,604	$	75	$	84,966	$	14,436	$	(5,884)	$	(1,171)	$	92,422


	Three months ended March 31,
	2020
	(Unaudited)
Sales, net	$	5,857
Mine cost of sales		6,300
Mine gross loss		(443)
Exploration expenses		177
Other expense, net		48
Loss before income taxes		(668)
Income tax benefit		(765)
Net income from discontinued operations	$	97


	Gold		Silver		Copper		Lead		Zinc
	(ounces)		(ounces)		(tonnes)		(tonnes)		(tonnes)
Under contract		4,531		302,534		534		1,398		4,842
Average forward price (per ounce or tonne)	$	1,806	$	26.13	$	8,386	$	2,004	$	2,759


	2021		2020		Input Hierarchy Level

	(in thousands)
Cash and cash equivalents	$	27,230	$	25,405	Level 1
Gold and silver rounds/bullion	$	593	$	671	Level 1
Accounts receivable, net	$	3,533	$	4,226	Level 2


	March 31, 2021		2021 full year guidance
Capital Investments:
Gold Regrind	$	4	$	1,900
Dry Stack Completion	$	1,708	$	6,200
Underground Development	$	1,088	$	9,800
Other Sustaining Capital	$	804	$	4,100
Exploration Investment:
Surface Exploration Expense	$	1,195	$	3,000
Underground Drilling	$	278	$	2,600
Exploration Development	$	430	$	1,600


Exhibit Number		Descriptions
31.1		Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Allen Palmiere.
31.2		Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Kimberly C. Perry.
32*		Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for Allen Palmiere and Kimberly C. Perry.
101		Financial statements from the Quarterly Report on Form 10-Q of Gold Resource Corporation for the three months ended March 31, 2021, formatted in inline XBRL: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Changes in Shareholders’ Equity, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) the Notes to the Condensed Consolidated Financial Statements.
104		Cover Page Interactive Data File (embedded within the XBRL document)


	GOLD RESOURCE CORPORATION

Dated: April 29, 2021		/s/ Allen Palmiere
	By:	Allen Palmiere,
		Chief Executive Officer, President and Director




Dated: April 29, 2021		/s/ Kimberly C. Perry
	By:	Kimberly C. Perry,
		Chief Financial Officer


	Three months ended March 31,
	2020
	(Unaudited)
Cash flows from discontinued operating activities:
Net income	$	97
Adjustments to reconcile net income to net cash from operating activities:
Deferred income taxes		(765)
Depreciation and amortization		1,422
Other operating adjustments		(11)
Changes in operating assets and liabilities:
Accounts receivable		(169)
Inventories		(1,786)
Prepaid expenses and other current assets		82
Other non-current assets		931
Accounts payable and other accrued liabilities		(1,030)
Net cash used in discontinued operating activities		(1,229)

Cash flows from discontinued investing activities:
Capital expenditures		(3,447)
Net cash used in discontinued investing activities		(3,447)

Cash flows from discontinued financing activities:
Cash transferred from Gold Resource Corporation prior to Spin-off		4,508
Repayment of loans payable		(216)
Repayment of finance leases		(107)
Net cash provided by discontinued financing activities		4,185


Supplemental Cash Flow Information Discontinued Operations
Non-cash investing activities:
Change in capital expenditures in accounts payable	$	516
Change in estimate for asset retirement costs	$	435


	Three months ended March 31,
	2021		2020

	(in thousands)
Doré sales, net
Gold	$	2,487	$	1,769
Silver		377		676
Less: Refining charges		(71)		(35)
Total doré sales, net		2,793		2,410
Concentrate sales
Gold		6,524		6,216
Silver		6,313		5,215
Copper		3,386		2,361
Lead		2,405		3,479
Zinc		8,766		9,040
Less: Treatment and refining charges		(2,884)		(5,834)
Total concentrate sales, net		24,510		20,477
Realized/unrealized embedded derivative, net		(35)		(738)
Total sales, net	$	27,268	$	22,149


	2021					2020
	(Unaudited)
	Ounces	Per Ounce		Amount		Ounces	Per Ounce		Amount
				(in thousands)					(in thousands)
Gold	184	$	1,691	$	311	189	$	1,888	$	357
Silver	11,750	$	24.00		282	11,842	$	26.49		314
Total holdings				$	593				$	671


	2021		2020
	(Unaudited)
	(in thousands)
Stockpiles - underground mine	$	461	$	648
Stockpiles - open pit mine		17		41
Concentrates		2,834		1,919
Doré, net ⁽¹⁾		1,107		459
Subtotal - product inventories		4,419		3,067
Materials and supplies ⁽²⁾		7,165		6,928
Total	$	11,584	$	9,995