Goldgroup Mining Inc 10-Q, filed May 12, 2025

Goldgroup Mining Inc. (GORO)

10-Q 2025-05-12 For: 2025-03-31

Added on August 02, 2026

About this 10-Q

Goldgroup Mining Inc filed this 10-Q on May 12, 2025, covering the quarter ended March 31, 2025.

Headline figures

Quarter ended March 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $12.35M; down 33.9% from $18.7M a year earlier
Net loss: $8.32M; compared with a net loss of $5.68M a year earlier
Diluted EPS: -$0.07; compared with -$0.06 a year earlier

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a
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
	First Quarter 2025 Summary	3

	Part I - FINANCIAL INFORMATION	5
Item 1.	Condensed Consolidated Interim Financial Statements and Notes	5
	Ø Condensed Consolidated Interim Balance Sheets as of March 31, 2025 (unaudited) and December 31, 2024	5
	Ø Condensed Consolidated Interim Statements of Operations for the three months ended March 31, 2025 and 2024 (unaudited)	6
	Ø Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity for the three months ended March 31, 2025 and 2024 (unaudited)	7
	Ø Condensed Consolidated Interim Statements of Cash Flows for the three months ended March 31, 2025 and 2024 (unaudited)	8
	Ø Notes to the Condensed Consolidated Interim Financial Statements (unaudited)	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	49
Item 4.	Controls and Procedures	50

	Part II - OTHER INFORMATION	51
Item 1.	Legal Proceedings	51
Item 1A.	Risk Factors	51
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	51
Item 3.	Defaults upon Senior Securities	52
Item 4.	Mine Safety Disclosures	52
Item 5.	Other Information	52
Item 6.	Exhibits	52
Signatures		53


		As of		As of
		March 31,		December 31,
	Note	2025		2024
ASSETS
Current assets:
Cash and cash equivalents		$	4,891	$	1,628
Accounts receivable, net			3,234		2,184
Inventories, net	6		6,387		6,940
Prepaid expenses and other current assets	8		5,684		5,828
Total current assets			20,196		16,580
Property, plant, and mine development, net	9		127,330		128,389
Other non-current assets	10		130		905
Total assets		$	147,656	$	145,874
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	10,635	$	11,258
Mining royalty taxes payable, net			396		195
Accrued expenses and other current liabilities	11		3,012		3,031
Total current liabilities			14,043		14,484
Reclamation and remediation liabilities	13		10,950		10,669
Gold and silver stream agreements liability	12		78,253		74,432
Deferred tax liabilities, net	7		14,466		14,041
Contingent consideration	14		3,666		3,389
Other non-current liabilities	11		1,694		1,576
Total liabilities			123,072		118,591

Commitments and contingencies	14

Shareholders’ equity:
Common stock - $0.001 par value, 200,000,000 shares authorized: 120,442,686 and 95,324,949 shares outstanding at March 31, 2025 and December 31, 2024, respectively			121		96
Additional paid-in capital			120,914		115,319
Accumulated deficit			(89,396)		(81,077)
Treasury stock at cost, 336,398 shares			(5,884)		(5,884)
Accumulated other comprehensive loss			(1,171)		(1,171)
Total shareholders’ equity			24,584		27,283
Total liabilities and shareholders’ equity		$	147,656	$	145,874


		For the three months ended
		March 31,
	Note	2025		2024
				Restated

Sales, net	5	$	12,354	$	18,702
Cost of sales:
Production costs			10,708		16,108
Depreciation and amortization			2,704		4,210
Reclamation and remediation			394		553
Total cost of sales			13,806		20,871
Mine gross loss			(1,452)		(2,169)
Costs and expenses:
General and administrative expenses			1,144		955
Mexico exploration expenses			281		899
Michigan Back Forty Project expenses			204		205
Stock-based compensation	18		400		219
Other expense, net	19		4,311		3,117
Total costs and expenses			6,340		5,395
Loss before income taxes			(7,792)		(7,564)
Income tax provision (benefit)	7		527		(1,887)
Net loss		$	(8,319)	$	(5,677)
Net loss per common share:
Basic and diluted net loss per common share	20	$	(0.07)	$	(0.06)

Weighted average shares outstanding:
Basic and diluted	20		112,442,135		88,707,430


	For the three months ended March 31, 2025 and 2024
	Number of Common Shares	Par Value of Common Shares		Additional Paid- in Capital		Retained Earnings (Accumulated Deficit)		Treasury Stock		Accumulated Other Comprehensive Loss		Total Shareholders' Equity
Balance, December 31, 2023	89,030,436	$	89	$	111,970	$	(24,576)	$	(5,884)	$	(1,171)	$	80,428
Stock-based compensation	-		-		128		-		-		-		128
Common stock issued for vested restricted stock units	160,736		-		-		-		-		-		-
Surrender of common stock for taxes due on vesting	(64,300)		-		(25)		-		-		-		(25)
Net loss	-		-		-		(5,677)		-		-		(5,677)
Balance, March 31, 2024 - Restated	89,126,872	$	89	$	112,073	$	(30,253)	$	(5,884)	$	(1,171)	$	74,854

Balance, December 31, 2024	95,661,347	$	96	$	115,319	$	(81,077)	$	(5,884)	$	(1,171)	$	27,283
Stock-based compensation	-				140		-		-		-		140
Common stock issued for vested restricted stock units	328,942		-				-		-		-		-
Issuance of common stock, net of issuance costs ⁽¹⁾	9,287,601		9		3,013		-		-		-		3,022
Surrender of common stock for taxes due on vesting	(123,806)		-		(42)		-		-		-		(42)
Registered Direct Offering ⁽²⁾	15,625,000		16		2,484								2,500
Net loss	-				-		(8,319)		-		-		(8,319)
Balance, March 31, 2025	120,779,084	$	121	$	120,914	$	(89,396)	$	(5,884)	$	(1,171)	$	24,584


		For the three months ended March 31,
	Note	2025		2024
				Restated
Cash flows from operating activities:
Net loss		$	(8,319)	$	(5,677)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Deferred income tax expense (benefit)			427		(2,132)
Depreciation and amortization			2,918		4,582
Stock-based compensation			400		219
Interest on streaming liabilities			3,821		2,868
Other operating adjustments, net	22		164		(230)
Changes in operating assets and liabilities:
Accounts receivable			(1,050)		174
Inventories			514		(211)
Prepaid expenses and other current assets			161		596
Other non-current assets			426		104
Accounts payable and other accrued liabilities			(454)		1,017
Cash settled liability awards			(33)		(67)
Mining royalty and income taxes payable, net			197		239
Net cash (used in) provided by operating activities			(828)		1,482

Cash flows from investing activities:
Capital expenditures			(2,182)		(1,994)
Proceeds from the sale of investment in Green Light Metals			854		-
Net cash used in investing activities			(1,328)		(1,994)

Cash flows from financing activities:
Proceeds from ATM Program sales, net of issuance costs			3,022		-
Proceeds from the Registered Direct Offerings			2,500		-
Other financing activities			(42)		(25)
Net cash provided by (used in) financing activities			5,480		(25)
Effect of exchange rate changes on cash and cash equivalents			(61)		(55)

Net increase (decrease) in cash and cash equivalents			3,263		(592)
Cash and cash equivalents at beginning of period			1,628		6,254
Cash and cash equivalents at end of period		$	4,891	$	5,662

Supplemental Cash Flow Information
Income and mining taxes paid		$	-	$	66
Non-cash investing or financing activities:
Value of common shares issued for RSU redemption		$	69	$	37
Balance of capital expenditures in accounts payable		$	339	$	295
Balance of equipment financing		$	539	$	-


	UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
	For the three months ended March 31, 2024
	As Previously Reported		Restatement Impacts		Restated

	(U.S. dollars in thousands, except share and per share amounts)
Sales, net	$	18,702	$	-	$	18,702
Cost of sales:
Production costs		16,108		-		16,108
Depreciation and amortization		4,210		-		4,210
Reclamation and remediation		553		-		553
Total cost of sales		20,871		-		20,871
Mine gross (loss) profit		(2,169)		-		(2,169)
Costs and expenses:
General and administrative expenses		901		54		955
Mexico exploration expenses		899		-		899
Michigan Back Forty Project expenses		205		-		205
Stock-based compensation		219		-		219
Other expense, net		1,515		1,602		3,117
Total costs and expenses		3,739		1,656		5,395
Loss before income taxes		(5,908)		(1,656)		(7,564)
Income tax benefit		(1,887)		-		(1,887)
Net loss	$	(4,021)	$	(1,656)	$	(5,677)
Net loss per common share:
Basic and diluted net loss per common share	$	(0.05)	$	(0.01)	$	(0.06)

Weighted average shares outstanding:
Basic and diluted		88,707,430		-		88,707,430


	UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
As Previously Reported	For the three months ended March 31, 2024
	Number of Common Shares	Par Value of Common Shares		Additional Paid- in Capital		Retained Earnings (Accumulated Deficit)		Treasury Stock		Accumulated Other Comprehensive Loss		Total Shareholders' Equity

	(U.S. dollars in thousands, except share amounts)
Balance, December 31, 2023	89,030,436	$	89	$	111,970	$	(8,311)	$	(5,884)	$	(1,171)	$	96,693
Stock-based compensation	-		-		128		-		-		-		128
Common stock issued for vested restricted stock units	160,736		-		-		-		-		-		-
Surrender of common stock for taxes due on vesting	(64,300)		-		(25)		-		-		-		(25)
Net loss	-		-		-		(4,021)		-		-		(4,021)
Balance, March 31, 2024	89,126,872	$	89	$	112,073	$	(12,332)	$	(5,884)	$	(1,171)	$	92,775

Restatement Impacts
Balance, December 31, 2023	-	$	-	$	-	$	(16,265)	$	-	$	-	$	(16,265)
Stock-based compensation	-		-		-		-		-		-		-
Common stock issued for vested restricted stock units	-		-		-		-		-		-		-
Surrender of common stock for taxes due on vesting	-		-		-		-		-		-		-
Net loss	-		-		-		(1,656)		-		-		(1,656)
Balance, March 31, 2024	-	$	-	$	-	$	(17,921)	$	-	$	-	$	(17,921)

Restated
Balance, December 31, 2023	89,030,436	$	89	$	111,970	$	(24,576)	$	(5,884)	$	(1,171)	$	80,428
Stock-based compensation	-		-		128		-		-		-		128
Common stock issued for vested restricted stock units	160,736		-		-		-		-		-		-
Surrender of common stock for taxes due on vesting	(64,300)		-		(25)		-		-		-		(25)
Net loss	-		-		-		(5,677)		-		-		(5,677)
Balance, March 31, 2024	89,126,872	$	89	$	112,073	$	(30,253)	$	(5,884)	$	(1,171)	$	74,854


	2025		2024

	(in thousands)
Reclamation liabilities – balance at beginning of period	$	1,839	$	2,233
Foreign currency exchange gain		17		(394)
Reclamation liabilities – balance at end of period		1,856		1,839

Asset retirement obligation – balance at beginning of period		8,838		9,562
Changes in estimate ⁽¹⁾		-		512
Liability for Aquila drillhole capping		-		(329)
Accretion		180		793
Foreign currency exchange gain		84		(1,700)
Asset retirement obligation – balance at end of period		9,102		8,838
Total period end balance	$	10,958	$	10,677


	Gold		Silver		Copper		Lead		Zinc			Total
	(ounces)		(ounces)		(tonnes)		(tonnes)		(tonnes)
Under contract		1,076		338,556		33		1,073		1,623
Average forward price (per ounce or tonne)	$	2,832	$	32.02	$	9,753	$	1,988	$	2,933
Unsettled sales contracts value (in thousands)	$	3,047	$	10,841	$	322	$	2,133	$	4,760	$	21,103


	Stock Options	Weighted Average Exercise Price (per share)
Outstanding as of December 31, 2023	840,612	$	2.99
Granted, Exercised, Expired, or Forfeited	-		-
Outstanding as of March 31, 2024	840,612	$	2.99

Outstanding as of December 31, 2024	840,612	$	2.99
Granted, Exercised, Expired, or Forfeited	-		-
Outstanding as of March 31, 2025	840,612	$	2.99

Vested and exercisable as of March 31, 2025	840,612	$	2.99


	Restricted Stock Units	Fair Value (in thousands)
Nonvested as of December 31, 2023	847,255	$	319
Vested but not redeemed (deferred)	(134,257)
Vested and redeemed	(96,436)
Vested and forfeited for net settlement	(64,300)
Forfeited	(28,359)
Nonvested as of March 31, 2024	523,903	$	228

Nonvested as of December 31, 2024	1,931,258	$	444
Vested but not redeemed (deferred)	(397,782)
Vested and redeemed	(205,136)
Vested and forfeited for net settlement	(123,806)
Nonvested as of March 31, 2025	1,204,534	$	614


	Performance Share Units		Liability Balance (in thousands)
Outstanding as of December 31, 2023	880,926	$	164
Redeemed	(201,258)
Outstanding as of March 31, 2024	679,668	$	132

Outstanding as of December 31, 2024	1,328,922	$	148
Redeemed	(241,195)
Outstanding as of March 31, 2025	1,087,727	$	109


	Deferred Stock Units		Liability Balance (in thousands)
Outstanding as of December 31, 2023	586,291	$	223
Granted in lieu of board fees	64,584
Outstanding as of March 31, 2024	650,875	$	280

Outstanding as of December 31, 2024	883,384	$	203
Granted in lieu of board fees	35,008
Outstanding as of March 31, 2025	918,392	$	468


	For the three months ended March 31,
	2025		2024

	(in thousands)
Doré sales, net
Gold	$	-	$	24
Silver		-		1
Less: Refining charges		-		(6)
Total doré sales, net		-		19
Concentrate sales
Gold		2,485		7,399
Silver		7,452		5,068
Copper		472		2,241
Lead		539		1,364
Zinc		1,751		4,122
Less: Treatment and refining charges		(447)		(1,577)
Total concentrate sales, net		12,252		18,617
Realized gain - embedded derivative, net ⁽¹⁾		24		23
Unrealized gain - embedded derivative, net		78		43
Total sales, net	$	12,354	$	18,702


	As of		As of
	March 31,		December 31,
	2025		2024

	(in thousands)
Asset retirement costs (“ARO asset”)	$	6,740	$	6,740
Construction-in-progress		2,203		1,165
Furniture and office equipment		1,713		1,722
Land		9,033		9,033
Mineral interest		79,543		79,543
Light vehicles and other mobile equipment		2,118		2,118
Machinery and equipment		45,058		44,858
Mill facilities and infrastructure		36,462		36,463
Mine development		121,488		120,906
Software and licenses		1,554		1,554
Subtotal		305,912		304,102
Accumulated depreciation and amortization		(178,582)		(175,713)
Total	$	127,330	$	128,389


	2025		2024

	(in thousands)
Beginning Balance of contingent consideration:
Non-current contingent consideration	$	3,389	$	3,404

Change in valueof contingent consideration - Non-current		277		(15)

Ending Balance of contingent consideration:
Non-current contingent consideration	$	3,666	$	3,389


		For the three months ended March 31,				Statements of Operations Classification
		2025		2024
	Note
Realized and unrealized derivative (loss) gain, net	16	$	102	$	66	Sales, net


	Oaxaca, Mexico		Michigan, USA		Corporate and Other		Total
For the three months ended March 31, 2025
Sales, net	$	12,354	$	-	$	-	$	12,354
Production costs		10,708		-		-		10,708
Depreciation and amortization		2,673		26		5		2,704
Reclamation and remediation		394		-		-		394
Mine gross loss		(1,421)		(26)		(5)		(1,452)
Exploration expense		281		204		-		485
G&A expenses, including Stock-based compensation		-		-		1,544		1,544
Other segment items ⁽¹⁾		246		4,096		(31)		4,311
Loss before income taxes		(1,948)		(4,326)		(1,518)		(7,792)
Income tax provision								527
Net loss							$	(8,319)

Expenditures for long-lived assets	$	1,821	$	-	$	-	$	1,821

	Oaxaca, Mexico		Michigan, USA		Corporate and Other		Total
	Restated		Restated		Restated		Restated
For the three months ended March 31, 2024
Sales, net	$	18,702	$	-	$	-	$	18,702
Production costs		16,108		-		-		16,108
Depreciation and amortization		4,174		28		8		4,210
Reclamation and remediation		553		-		-		553
Mine gross loss		(2,133)		(28)		(8)		(2,169)
Exploration expense		899		205		-		1,104
G&A expenses, including Stock-based compensation		-		-		1,174		1,174
Other segment items ⁽¹⁾		300		3,140		(323)		3,117
Loss before income taxes		(3,332)		(3,373)		(859)		(7,564)
Income tax benefit								(1,887)
Net loss								(5,677)

Expenditures for long-lived assets	$	2,075	$	-	$	-	$	2,075


	2024				2025
	Q1	Q2	Q3	Q4	Q1
Operating Data
Total tonnes milled	98,889	93,687	83,690	80,367	56,906
Average Grade
Gold (g/t)	1.89	1.27	0.54	0.64	0.70
Silver (g/t)	88	102	83	94	169
Copper (%)	0.37	0.26	0.19	0.20	0.18
Lead (%)	1.25	1.00	1.01	1.12	0.72
Zinc (%)	2.82	2.59	2.63	2.73	1.68
Metal production (before payable metal deductions)
Gold (ozs.)	4,757	2,947	944	1,258	903
Silver (ozs.)	251,707	263,023	194,525	210,581	257,285
Copper (tonnes)	280	181	93	88	54
Lead (tonnes)	812	616	576	678	272
Zinc (tonnes)	2,310	2,020	1,741	1,734	699
Metal produced and sold
Gold (ozs.)	3,557	2,724	1,357	960	859
Silver (ozs.)	216,535	234,560	181,434	184,804	230,320
Copper (tonnes)	264	197	98	82	50
Lead (tonnes)	667	491	467	548	277
Zinc (tonnes)	1,682	1,771	1,473	1,360	617
Average metal prices realized
Gold ($ per oz.)	$ 2,094	$ 2,465	$ 2,561	$ 2,706	$ 2,956
Silver ($ per oz.)	$ 23.29	$ 30.49	$ 30.61	$ 31.11	$ 32.54
Copper ($ per tonne)	$ 8,546	$ 10,428	$ 8,832	$ 8,969	$ 9,656
Lead ($ per tonne)	$ 1,977	$ 2,235	$ 2,065	$ 1,897	$ 1,950
Zinc ($ per tonne)	$ 2,483	$ 2,871	$ 2,854	$ 3,062	$ 2,710
Gold equivalent ounces sold
Gold Ounces	3,557	2,724	1,357	960	859
Gold Equivalent Ounces from Silver	2,408	2,901	2,169	2,125	2,535
Total AuEq oz	5,965	5,625	3,526	3,085	3,394


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 Chet Holyoak.
32*		Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for Allen Palmiere and Chet Holyoak.
101		The following items from the Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 are furnished herewith, formatted in inline XBRL: (A) the following financial statements: (i) the Condensed Consolidated Interim Balance Sheets, (ii) the Condensed Consolidated Interim Statements of Operations, (iii) the Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity, (iv) the Condensed Consolidated Interim Statements of Cash Flows, and (v) the Notes to the Condensed Consolidated Interim Financial Statements; and (B) Rule 10b5-1 Trading Arrangements
104		Cover Page Interactive Data File (embedded within the XBRL document)


	GOLD RESOURCE CORPORATION

Dated: May 12, 2025		/s/ Allen Palmiere
	By:	Allen Palmiere,
		Chief Executive Officer, President and Director




Dated: May 12, 2025		/s/ Chet Holyoak
	By:	Chet Holyoak,
		Chief Financial Officer