Goldgroup Mining Inc 10-Q, filed May 9, 2022

Goldgroup Mining Inc. (GORO)

10-Q 2022-05-09 For: 2022-03-31

Added on August 02, 2026

About this 10-Q

Goldgroup Mining Inc filed this 10-Q on May 9, 2022, covering the quarter ended March 31, 2022.

Headline figures

Quarter ended March 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $45.42M; up 66.6% from $27.27M a year earlier
Net income: $4.02M; up 59.0% from net income of $2.53M a year earlier
Diluted EPS: $0.05; up 66.7% from $0.03 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


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 2022 Highlights	1

	Part I - FINANCIAL INFORMATION
Item 1.	Financial Statements	2
	Ø Condensed Consolidated Interim Balance Sheets at March 31, 2022 (unaudited) and December 31, 2021	2
	Ø Condensed Consolidated Interim Statements of Operations for the three months ended March 31, 2022 and 2021 (unaudited)	3
	Ø Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity for the three months ended March 31, 2022 and 2021 (unaudited)	4
	Ø Condensed Consolidated Interim Statements of Cash Flows for the three months ended March 31, 2022 and 2021 (unaudited)	5
	Ø Notes to the Condensed Consolidated Interim Financial Statements (unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	35

	Part II - OTHER INFORMATION
Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3.	Defaults upon Senior Securities	36
Item 4.	Mine Safety Disclosures	36
Item 5.	Other Information	36
Item 6.	Exhibits	37
Signatures		38


		As of		As of
		March 31,		December 31,
	Note	2022		2021
ASSETS
Current assets:
Cash and cash equivalents		$	31,175	$	33,712
Accounts receivable, net			11,647		8,672
Inventories, net	4		12,783		10,361
Promissory note	6		3,921		3,885
Prepaid expenses and other current assets	7		1,157		2,285
Total current assets			60,683		58,915
Property, plant and mine development, net	8		155,535		156,771
Other non-current assets			365		76
Total assets		$	216,583	$	215,762
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	10,558	$	13,308
Income taxes payable, net			4,141		6,801
Mining royalty taxes payable, net			1,804		2,975
Zinc zero cost collar	17		4,353		1,844
Accrued expenses and other current liabilities	9		7,463		4,731
Total current liabilities			28,319		29,659
Reclamation and remediation liabilities	11		3,230		3,112
Gold and silver stream agreements	10		42,774		42,560
Deferred tax liabilities, net	5		12,104		13,126
Contingent consideration	12		4,427		4,603
Other non-current liabilities	9		2,014		1,952
Total liabilities			92,868		95,012
Shareholders' equity:
Common stock - $0.001 par value, 200,000,000 shares authorized:
88,338,774 shares outstanding at March 31, 2022 and December 31, 2021			89		89
Additional paid-in capital			109,982		110,153
Retained earnings			20,699		17,563
Treasury stock at cost, 336,398 shares			(5,884)		(5,884)
Accumulated other comprehensive loss			(1,171)		(1,171)
Total shareholders' equity			123,715		120,750
Total liabilities and shareholders' equity		$	216,583	$	215,762


		For the three months ended
		March 31,
	Note	2022		2021


Sales, net	3	$	45,417	$	27,268
Cost of sales:
Production costs			20,074		15,243
Depreciation and amortization			5,958		3,399
Reclamation and remediation			62		51
Total cost of sales			26,094		18,693
Mine gross profit			19,323		8,575
Costs and expenses:
General and administrative expenses			1,899		1,581
Exploration expenses			2,305		1,207
Restructuring expenses			-		496
Stock-based compensation	16		774		484
Realized and unrealized loss on zinc zero cost collar	17		4,137		-
Other expense (income), net	18		838		(314)
Total costs and expenses			9,953		3,454
Income before income taxes			9,370		5,121
Provision for income taxes	5		5,351		2,594
Net income		$	4,019	$	2,527
Net income per common share:
Basic and diluted net income per common share	19	$	0.05	$	0.03

Weighted average shares outstanding:
Basic	19		88,338,774		74,405,031
Diluted	19		88,616,868		74,761,882


	For the three months ended March 31, 2022 and 2021
	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, 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
Common stock issued for vested restricted stock units	2,614		-		-		-		-		-		-
Dividends declared	-		-		-		(744)		-		-		(744)
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

Balance, December 31, 2021	88,675,172	$	89	$	110,153	$	17,563	$	(5,884)	$	(1,171)	$	120,750
Stock-based compensation	-		-		160		-		-		-		160
Stock options exercised - settled in cash	-		-		(331)		-		-		-		(331)
Dividends declared	-		-		-		(883)		-		-		(883)
Net income	-		-		-		4,019		-		-		4,019
Balance, March 31, 2022	88,675,172	$	89	$	109,982	$	20,699	$	(5,884)	$	(1,171)	$	123,715


		For the three months ended March 31,
	Note	2022		2021
Cash flows from operating activities:
Net income		$	4,019	$	2,527
Adjustments to reconcile net income to net cash from operating activities:
Deferred income tax (benefit) expense			(827)		43
Depreciation and amortization			6,003		3,437
Stock-based compensation			774		484
Other operating adjustments	21		2,551		340
Changes in operating assets and liabilities:
Accounts receivable			(2,975)		693
Inventories			(2,013)		(1,063)
Prepaid expenses and other current assets			1,179		592
Other noncurrent assets			340		(4)
Accounts payable and other accrued liabilities			(920)		(1,141)
Mining royalty and income taxes payable, net			(3,901)		923
Net cash provided by operating activities			4,230		6,831

Cash flows from investing activities:
Capital expenditures			(5,949)		(4,320)
Proceeds from the sale of gold and silver rounds			533		3
Net cash used in investing activities			(5,416)		(4,317)

Cash flows from financing activities:
Proceeds (for) from the exercise of stock options			(246)		165
Dividends paid			(883)		(744)
Net cash used in financing activities			(1,129)		(579)
Effect of exchange rate changes on cash and cash equivalents			(222)		(110)

Net (decrease) increase in cash and cash equivalents			(2,537)		1,825
Cash and cash equivalents at beginning of period			33,712		25,405
Cash and cash equivalents at end of period		$	31,175	$	27,230

Supplemental Cash Flow Information
Interest expense paid		$	-	$	-
Income and mining taxes paid		$	13,857	$	1,328
Non-cash investing activities:
Change in capital expenditures in accounts payable		$	(927)	$	(259)
Change in estimate for asset retirement costs		$	-	$	7


	2022		2021

	(in thousands)
Reclamation liabilities – balance at beginning of period	$	1,833	$	1,890
Foreign currency exchange loss (gain)		54		(57)
Reclamation liabilities – balance at end of period		1,887		1,833

Asset retirement obligation – balance at beginning of period		1,279		1,208
Accretion		25		109
Foreign currency exchange loss (gain)		39		(38)
Asset retirement obligation – balance at end of period		1,343		1,279
Total period end balance	$	3,230	$	3,112


	Gold		Silver		Copper		Lead		Zinc			Total
	(ounces)		(ounces)		(tonnes)		(tonnes)		(tonnes)
Under contract		6,191		206,642		286		1,714		4,329
Average forward price (per ounce or tonne)	$	1,909	$	24.4	$	10,145	$	2,332	$	3,745
Unsettled sales contracts value (in thousands)	$	11,819	$	5,042	$	2,901	$	3,997	$	16,212	$	39,971


		For the three months ended March 31,				Statements of Operations Classification
		2022		2021
	Note
Realized and unrealized derivative gain (loss), net	14	$	2,034	$	(35)	Sales, net
Realized loss on zinc zero cost collar	17	$	(1,628)	$	-	Realized and unrealized loss on zinc zero cost collar
Unrealized loss on zinc zero cost collar	17	$	(2,509)	$	-	Realized and unrealized loss on zinc zero cost collar


	Oaxaca, Mexico		Michigan, USA		Corporate and Other		Consolidated
As of March 31, 2022
Total current assets	$	51,918	$	4,978	$	3,787	$	60,683
Total non-current assets		66,007		89,607		286		155,900
Total assets	$	117,925	$	94,585	$	4,073	$	216,583
Total current liabilities		25,972		1,566		781		28,319
Total non-current liabilities		900		62,689		960		64,549
Total shareholders' equity		91,053		30,330		2,332		123,715
Total liabilities and shareholders' equity	$	117,925	$	94,585	$	4,073	$	216,583

As of December 31, 2021
Total current assets	$	50,057	$	5,528	$	3,330	$	58,915
Total non-current assets		66,756		90,018		73		156,847
Total assets	$	116,813	$	95,546	$	3,403	$	215,762
Total current liabilities		25,833		2,459		1,367		29,659
Total non-current liabilities		1,436		63,438		479		65,353
Total shareholders' equity		89,544		29,649		1,557		120,750
Total liabilities and shareholders' equity	$	116,813	$	95,546	$	3,403	$	215,762


	Oaxaca, Mexico			Michigan, USA ⁽¹⁾			Corporate and Other			Consolidated

For the three months ended March 31, 2022
Sales, net	$	45,417	$		-	$		-	$	45,417
Total mine cost of sales		26,094			-			-		26,094
Exploration expense		1,237			1,068			-		2,305
Total other costs and expenses		4,692			317			2,639		7,648
Provision for income taxes (benefit)		5,351			-			-		5,351
Net income (loss)	$	8,043	$		(1,385)	$		(2,639)	$	4,019

For the three months ended March 31, 2021
Sales, net	$	27,268	$		-	$		-	$	27,268
Total mine cost of sales		18,693			-			-		18,693
Exploration expense		1,197			-			10		1,207
Total other costs and expenses		(378)			-			2,625		2,247
Provision for income taxes (benefit)		2,594			-			-		2,594
Net income (loss)	$	5,162	$		-	$		(2,635)	$	2,527


		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





Dry Stack Tailings Filtration Plant and Dry Stack Area	Filtration Plant Press



	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


	As of		As of
	March 31,		December 31,
	2022		2021

	(in thousands)
Asset retirement costs	$	1,065	$	1,065
Construction-in-progress ⁽¹⁾		3,290		15,854
Furniture and office equipment		1,717		1,685
Land		9,230		9,230
Mineral interest		79,543		79,964
Light vehicles and other mobile equipment		2,316		2,224
Machinery and equipment		38,821		33,213
Mill facilities and infrastructure		34,503		24,973
Mine Development		95,259		92,138
Software and licenses		1,592		1,592
Subtotal		267,336		261,938
Accumulated depreciation and amortization		(111,801)		(105,167)
Total	$	155,535	$	156,771


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, 2022, formatted in inline XBRL: (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.
104		Cover Page Interactive Data File (embedded within the XBRL document)


	GOLD RESOURCE CORPORATION

Dated: May 9, 2022		/s/ Allen Palmiere
	By:	Allen Palmiere,
		Chief Executive Officer, President and Director




Dated: May 9, 2022		/s/ Kimberly C. Perry
	By:	Kimberly C. Perry,
		Chief Financial Officer