8-K
GOLD RESOURCE CORP (GORO)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 25, 2023
GOLD RESOURCE CORP ORATION
(Exact name of registrant as specified in its charter)
| Colorado | 001-34857 | 84-1473173 |
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| (State or other jurisdiction of<br><br>incorporation) | (Commission<br><br>File Number) | (I.R.S. Employer<br><br>Identification Number) |
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| 7900 E. Union Ave , Suite 320 | | |
| Denver , Colorado | | 80237 |
| (Address of principal executive offices) | | (Zip Code) |
Registrant’s telephone number including area code: (303) 320-7708
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br><br><br><br> |
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Securities registered pursuant to Section 12(b) of the Act:
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|---|---|---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which<br>registered |
| Common Stock | GORO | NYSE American |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻
1.01
Item 2.02 Results of Operations and Financial Condition.
On April 25, 2023, Gold Resource Corporation (“the Company”) issued a news release reporting its production and unaudited financial results for the first quarter of 2023. A copy of the news release is attached as Exhibit 99.1 to this report.
In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any of the Company’s filings or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are furnished with this report:
| 99.1 | News Release dated April 25, 2023 | |
|---|---|---|
| 104 | | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) |
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| | | GOLD RESOURCE CORPORATION | |
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| Date: April 25, 2023 | By: | /s/ Allen Palmiere | |
| Name: | Allen Palmiere | ||
| Title: | Chief Executive Officer and President |
3
Exhibit 99.1
| NEWS - FOR IMMEDIATE RELEASE | NYSE American: GORO |
|---|---|
| April 25, 2023 | |
GOLD RESOURCE CORPORATION REPORTS STRONG FIRST QUARTER GOLD PRODUCTION AND A STRENGTHENED MANAGEMENT TEAM AT THE MINE
| ● | MAINTAINED A SOLID BALANCE SHEET WITH $21.4 million IN CASH |
|---|---|
| ● | Sold 10,055 gold equivalent ounces |
| --- | --- |
| ● | COMPLETED MORE THAN 2,500 METERS OF EXPANSION EXPLORATION DRILLING |
| --- | --- |
| ● | EBITDA OF $6.3 million |
| --- | --- |
| ● | Net losses of $1 million, OR $0.01 Per Share |
| --- | --- |
Denver, Colorado – April 25, 2023 – Gold Resource Corporation (NYSE American: GORO) (the “Company”) sold a total of 6,508 ounces of gold and 294,815 ounces of silver in the first quarter of 2023 for a total of 10,055 gold equivalent ounces. Additionally, during the quarter, the Company sold 3,060 tonnes of zinc, 332 tonnes of copper, and 1,417 tonnes of lead. For the quarter ended March 31, 2023, the company reported a net loss of $1 million with revenue of $31.2 million and mine gross profit of $3.9 million from operations. A total of $5 million was invested in the Don David Gold Mine and Back Forty Project.
“Our 2023 annual production at the Don David Gold Mine is off to a good start. This achievement is due to mining higher average grades as a result of targeted infill drilling and mine sequencing,” stated Allen Palmiere, President and CEO. “Underground resource expansion drilling is progressing as planned. In addition, the mine is managed by a new leadership team that is already realizing improvements to maximize efficiencies and safety protocols. At the Back Forty Project in Michigan, feasibility study work related to metallurgical testing and refinement of capital cost estimates continues.”
2023 HIGHLIGHTS
Additional highlights for the three months ended March 31, 2023, are summarized below:
Financial:
| ● | Working capital was $24.1 million as of March 31, 2023, $2.7 million higher than as of December 31, 2022. The increase is primarily due to a decrease in royalty taxes payable. |
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| ● | Total cash cost for the quarter was $711 per gold equivalent (“AuEq”) ounce (after co-product credits) and total all-in sustaining cost for the quarter was $1,221 per AuEq ounce (after co-product credits). |
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| ● | The Company’s Annual Meeting of Shareholders will be held in person on June 15, 2023. Information regarding notice, materials, and voting can be found in the 2023 Proxy Statement that will be filed with the SEC on April 28, 2023 and available at https://www.sec.gov/edgar. |
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Don David Gold Mine:
| ● | The Don David Gold Mine (“DDGM”) safety program aims to bolster the overall health and safety culture of our employees. |
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| o | There was one lost time incident during the first quarter of 2023. |
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| o | The year-to-date lost time injury frequency rate per million hours of 1.96 is substantially below the Camimex (Mexican Chamber of Mines) industry average of 4.52. |
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| ● | For the ninth 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. |
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| ● | Exploration has progressed as planned during the first quarter with work continuing to focus on infill drilling with encouraging results. Our 2023 exploration objectives are to identify and define additional mineral resources from the Three Sisters, South Soledad, Sagrario, and Marena vein systems. |
| --- | --- |
Back Forty Project:
| ● | The feasibility study work for the Back Forty Project in Michigan, USA progressed during the first quarter of 2023. Work related to metallurgy and the economic model will continue with a deliberate and measured approach. |
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| ● | Once the feasibility study work is completed, the Company’s Board of Directors will evaluate the current economic climate and make a decision on how to move forward with the Back Forty Mine. |
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2023 Capital and Exploration Investment Summary
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| | | For the three months ended March 31, 2023 | | 2023 full year guidance | ||||||||
| | | (in thousands) | ||||||||||
| Sustaining Investments: | | | | | | | ||||||
| Underground Development | Capital | $ | 1,296 | | | | ||||||
| Infill Drilling | Capitalized Exploration | | 817 | | | | ||||||
| Other Sustaining Capital | Capital | | 475 | | | | ||||||
| Surface and Underground Exploration Development & Other | Capitalized Exploration | | 548 | | | | ||||||
| Subtotal of Sustaining Investments: | | | 3,136 | | 9 - 11 million | |||||||
| Growth Investments: | | | | | | | ||||||
| DDGM growth: | | | | | | | ||||||
| Surface Exploration / Other | Exploration | | 766 | | | | ||||||
| Underground Exploration Drilling | Exploration | | 477 | | | | ||||||
| Underground Exploration Development | Exploration | | 146 | | | | ||||||
| Back Forty growth: | | | | | | | ||||||
| Back Forty Feasibility Study & Permits | Exploration | | 450 | | | | ||||||
| Subtotal of Growth Investments: | | | 1,839 | | 6 - 7 million | |||||||
| Total Capital and Exploration: | | $ | 4,975 | | 15 - 18 million |
All values are in US Dollars.
Trending Highlights (unaudited)
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|---|---|---|---|---|
| | | | | |
| | 2023 | |||
| | Q2 | Q3 | Q4 | Q1 |
| Operating Data | | | | |
| Total tonnes milled | 129,099 | 110,682 | 116,616 | 117,781 |
| Average Grade | ||||
| Gold (g/t) | 2.63 | 1.98 | 2.51 | 2.33 |
| Silver (g/t) | 64 | 80 | 109 | 94 |
| Copper (%) | 0.32 | 0.37 | 0.45 | 0.37 |
| Lead (%) | 1.99 | 1.59 | 1.58 | 1.73 |
| Zinc (%) | 4.00 | 4.21 | 4.27 | 3.88 |
| Metal production (before payable metal deductions) | **** | **** | **** | |
| Gold (ozs.) | 9,317 | 5,851 | 7,767 | 7,171 |
| Silver (ozs.) | 249,088 | 261,256 | 370,768 | 322,676 |
| Copper (tonnes) | 303 | 296 | 406 | 336 |
| Lead (tonnes) | 2,020 | 1,249 | 1,323 | 1,559 |
| Zinc (tonnes) | 4,282 | 3,901 | 4,198 | 3,837 |
| Metal produced and sold | ||||
| Gold (ozs.) | 8,746 | 5,478 | 7,514 | 6,508 |
| Silver (ozs.) | 231,622 | 225,012 | 335,168 | 294,815 |
| Copper (tonnes) | 286 | 282 | 372 | 332 |
| Lead (tonnes) | 1,755 | 1,056 | 941 | 1,417 |
| Zinc (tonnes) | 3,590 | 2,943 | 3,265 | 3,060 |
| Average metal prices realized | ||||
| Gold ( per oz.) | $ 1,874 | $ 1,627 | 1,734 | $ 1,915 |
| Silver ( per oz.) | $ 22.05 | $ 18.54 | 21.25 | $ 23.04 |
| Copper ( per tonne) | $ 9,275 | $ 7,115 | 8,221 | $ 9,172 |
| Lead ( per tonne) | $ 2,168 | $ 1,882 | 1,954 | $ 2,158 |
| Zinc ( per tonne) | $ 4,338 | $ 3,186 | 2,577 | $ 3,195 |
| Gold equivalent ounces sold | ||||
| Gold Ounces | 8,746 | 5,478 | 7,514 | 6,508 |
| Gold Equivalent Ounces from Silver | 2,729 | 2,564 | 4,107 | 3,547 |
| Total AuEq oz | 11,475 | 8,042 | 11,621 | 10,055 |
| Financial Data ('s in thousands except for per ounce) | **** | **** | **** | |
| Total sales, net | $ 37,064 | $ 23,869 | 32,374 | $ 31,228 |
| Earnings from mining operations before depreciation and amortization | $ 15,281 | $ 4,431 | 11,981 | $ 11,183 |
| Total cash cost after co-product credits per AuEq oz sold | $ 247 | $ 1,103 | 842 | $ 711 |
| Total consolidated all-in sustaining cost after co-product credits per AuEq oz sold | $ 799 | $ 1,831 | 1,226 | $ 1,221 |
| Production Costs | $ 21,722 | $ 19,380 | 19,773 | $ 19,850 |
| Production Costs/Tonnes Milled | $ 168 | $ 175 | 170 | $ 169 |
| Earnings before interest, taxes, depreciation, depletion, and amortization | $ 13,716 | $ (3,338) | 3,758 | $ 6,085 |
| Operating Cash Flows | $ 7,976 | $ (4,292) | 6,243 | $ 1,024 |
| Net income (loss) | $ 2,673 | $ (9,730) | (3,283) | $ (1,035) |
| Earnings (loss) per share - basic | $ 0.03 | $ (0.11) | (0.04) | $ (0.01) |
All values are in US Dollars.
Q1 2023 Conference Call
The Company will host a conference call Wednesday, April 26, 2023, at 10:00 a.m. Mountain 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://viavid.webcasts.com/starthere.jsp?ei=1609974&tp_key=2108468e9d
To join the call via telephone, please use the following dial-in details:
| Participant Toll Free: | +1 (888) 396-8049 |
|---|---|
| International: | +1 (416) 764-8646 |
| Conference ID: | 13462059 |
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.
For further information please contact:
Kim Perry
Chief Financial Officer
Kim.Perry@GRC-USA.com
www.GoldResourcecorp.com