COLORADO SPRINGS, CO–(Marketwired – May 8, 2013) – Gold Resource Corporation (
2013 Q1 HIGHLIGHTS
- 22,330 ounces mill production, precious metal gold equivalent (AuEq)
- 24,972 precious metal AuEq ounces sold
- $25.9 million Cash Flow from Mine Site Operations
- Accumulated deficit reduced to zero
- Total cash cost of $515 per ounce AuEq (including 5% royalty)
- Net income of $7.4 million or $0.14 per share
- Dividend distributions of $9.5 million, or $0.18 per share for quarter
Overview of Q1 2013 Results from El Aguila Project
Gold Resource Corporation’s El Aguila Project produced 22,330 ounces of precious metal gold equivalent (AuEq) at a total cash cost of $515 per AuEq ounce and realized average prices of $1,648 per ounce gold and $31 per ounce silver for its sales during the first quarter. Gold and silver prices decreased 3.3% and 6.1%, respectively, from the first quarter of 2012. Cash Flow from Mine Site Operations was $25.9 million. The Company paid $9.5 million to shareholders in dividends.
“First quarter 2013 was on track with our annual production targets,” stated Gold Resource Corporation’s President, Mr. Jason Reid. “At this point, we are maintaining our 2013 production goal, targeting a range of 80,000 to 100,000 precious metal gold equivalent ounces.”
Mr. Reid continued, “The first quarter of 2013 marked a milestone for the Company as our accumulated deficit was reduced to zero. We achieved this milestone while distributing over $81 million to our shareholders. Both speak to our efficiency of capital deployed on behalf of our shareholders.”
Below is a table of the key production statistics for our El Aguila Project during the three months ended March 31, 2013.
| Production and Sales Statistics – La Arista Underground Mine | ||||
| Three months ended March 31, 2013 | ||||
| Production Summary | ||||
| Milled: | ||||
| Tonnes Milled | 76,184 | |||
| Tonnes Milled per Day | 846 | |||
| Grade: | ||||
| Average Gold Grade (g/t) | 3.67 | |||
| Average Silver Grade (g/t) | 345 | |||
| Average Copper Grade (%) | 0.39 | |||
| Average Lead Grade (%) | 1.10 | |||
| Average Zinc Grade (%) | 2.79 | |||
| Recoveries: | ||||
| Average Gold Recovery (%) | 88 | |||
| Average Silver Recovery (%) | 92 | |||
| Average Copper Recovery (%) | 84 | |||
| Average Lead Recovery (%) | 70 | |||
| Average Zinc Recovery (%) | 79 | |||
| Mill production (before payable metal deductions)(1) | ||||
| Gold (ozs.) | 7,898 | |||
| Silver (ozs.) | 777,671 | |||
| Copper (tonnes) | 248 | |||
| Lead (tonnes) | 586 | |||
| Zinc (tonnes) | 1,676 | |||
| Payable metal sold | ||||
| Gold (ozs.) | 8,953 | |||
| Silver (ozs.) | 863,152 | |||
| Copper (tonnes) | 305 | |||
| Lead (tonnes) | 642 | |||
| Zinc (tonnes) | 1,735 | |||
| Average metal prices realized | ||||
| Gold (oz.) | $ | 1,648 | ||
| Silver (oz.) | $ | 31 | ||
| Copper (tonne) | $ | 7,996 | ||
| Lead (tonne) | $ | 2,448 | ||
| Zinc (tonne) | $ | 2,154 | ||
| Precious metal gold equivalent ounces produced (millproduction)(1)(3) | ||||
| Gold Ounces | 7,898 | |||
| Gold Equivalent Ounces from Silver | 14,432 | |||
| Total Precious Metal Gold Equivalent Ounces | 22,330 | |||
| Precious metal gold equivalent ounces sold(2)(3) | ||||
| Gold Ounces | 8,953 | |||
| Gold Equivalent Ounces from Silver | 16,019 | |||
| Total Precious Metal Gold Equivalent Ounces | 24,972 | |||
| Total Cash Cost per Precious Metal Gold Equivalent Ounce Sold(2) | $ | 515 | ||
| (1) | Mill production represents metal contained in concentrates produced at the mill, which is before payable metal deductions are levied by the buyer of our concentrates. |
| (2) | A reconciliation of this Non-GAAP measure to mine cost of sales, the most comparable U.S. GAAP measure, can be found in the Company’s quarterly report on Form 10-Q for the period ended March 31, 2013 filed with the SEC and available at http://www.sec.gov/. |
| (3) | Precious metal gold equivalent mill production for the first quarter of 2013 of 22,330 ounces differs from gold equivalent ounces sold for 2013 of 24,972 due principally to buyer (smelter) concentrate processing deductions of approximately 2,255 gold equivalent ounces and a decrease in gold equivalent ounces contained in ending inventory of approximately 4,897 ounces. |
About GRC:
Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in six potential high-grade gold and silver properties in Mexico’s southern state of Oaxaca. The Company has 53,279,369 shares outstanding, no warrants and no debt. Gold Resource Corporation offers shareholders the option to convert their cash dividends into physical gold and silver. For more information, please visit GRC’s website, located at www.Goldresourcecorp.com and read the Company’s 10-K for an understanding of the risk factors involved.
Cautionary Statements:
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words “plan,” “target,” “anticipate,” “believe,” “estimate,” “intend” and “expect” and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation’s strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company’s actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that production will continue at any specific rate. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Company’s 10-K filed with the SEC.
See Accompanying Tables
The following information summarizes the results of operations for Gold Resource Corporation for the three months ended March 31, 2013 and 2012, its financial condition at March 31, 2013 and December 31, 2012 and its cash flows for the three months ended March 31, 2013 and 2012. The summary data for the three months ended March 31, 2013 and 2012 is unaudited; the summary data for the year ended December 31, 2012 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2012, but do not include the footnotes and other information that is included in the complete financial statements. Readers are urged to review the Company’s Form 10-K in its entirety, which can be found on the SEC’s website at www.sec.gov.
The calculation of our cash cost per ounce contained in this press release is a non-GAAP financial measure. Please see “Management’s Discussion and Analysis and Results of Operation” contained in the Company’s most recent Form 10-Q and Form 10-K.
| GOLD RESOURCE CORPORATION | ||||||||||
| (An Exploration Stage Company) | ||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
| for the three months ended March 31, 2013 and 2012 | ||||||||||
| (U.S. dollars in thousands, except shares and per share amounts) | ||||||||||
| (Unaudited) | ||||||||||
| 2013 | 2012 | |||||||||
| Sales of metals concentrate, net | $ | 42,311 | $ | 36,665 | ||||||
| Mine cost of sales: | ||||||||||
| Production costs | 16,867 | 8,521 | ||||||||
| Depreciation and amortization | 536 | 232 | ||||||||
| Accretion | 29 | 20 | ||||||||
| Total mine cost of sales | 17,432 | 8,773 | ||||||||
| Mine gross profit | 24,879 | 27,892 | ||||||||
| Costs and expenses: | ||||||||||
| General and administrative expenses | 4,385 | 2,633 | ||||||||
| Exploration expenses | 3,299 | 1,353 | ||||||||
| Construction and development | 4,848 | 2,358 | ||||||||
| Production start-up expense, net | – | – | ||||||||
| Management contract expense | – | – | ||||||||
| Total costs and expenses | 12,532 | 6,344 | ||||||||
| Operating income | 12,347 | 21,548 | ||||||||
| Other (expense) income | (36 | ) | (1,989 | ) | ||||||
| Income before income taxes | 12,311 | 19,559 | ||||||||
| Provision for income taxes | 4,924 | 6,055 | ||||||||
| Net income before extraordinary item | 7,387 | 13,504 | ||||||||
| Extraordinary items: | ||||||||||
| Flood loss, net of income tax benefit of $750 | – | – | ||||||||
| Net income | $ | 7,387 | $ | 13,504 | ||||||
| Other comprehensive income: | ||||||||||
| Currency translation gain (loss) | 34 | 1,464 | ||||||||
| Comprehensive income | $ | 7,421 | $ | 14,968 | ||||||
| Net income per common share: | ||||||||||
| Basic: | $ | 0.14 | $ | 0.26 | ||||||
| Diluted: | $ | 0.13 | $ | 0.24 | ||||||
| Weighted average shares outstanding: | ||||||||||
| Basic | 52,679,369 | 52,898,984 | ||||||||
| Diluted | 55,586,031 | 56,362,916 | ||||||||
| GOLD RESOURCE CORPORATION | ||||||||||
| (An Exploration Stage Company) | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| (U.S. dollars in thousands, except shares) | ||||||||||
| March 31, | December 31, | |||||||||
| 2013 | 2012 | |||||||||
| (unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 29,026 | $ | 35,780 | ||||||
| Gold and silver bullion | 5,452 | 5,809 | ||||||||
| Accounts receivable | 11,570 | 6,349 | ||||||||
| Inventories | 6,538 | 7,533 | ||||||||
| Income tax receivable | 1,024 | 419 | ||||||||
| Deferred tax assets | 2,121 | 2,121 | ||||||||
| Prepaid expenses and other assets | 3,047 | 973 | ||||||||
| Total current assets | 58,778 | 58,984 | ||||||||
| Land and mineral rights | 227 | 227 | ||||||||
| Property and equipment – net | 17,079 | 14,050 | ||||||||
| Inventories | 797 | 809 | ||||||||
| Deferred tax assets | 31,559 | 31,559 | ||||||||
| Total assets | $ | 108,440 | $ | 105,629 | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 5,077 | $ | 3,013 | ||||||
| Accrued expenses | 5,721 | 4,178 | ||||||||
| IVA taxes payable | 1,389 | 2,673 | ||||||||
| Income taxes payable | 857 | – | ||||||||
| Dividends payable | 3,161 | 3,161 | ||||||||
| Total current liabilities | 16,205 | 13,025 | ||||||||
| Asset retirement obligation | 2,970 | 2,790 | ||||||||
| Total liabilities | 19,175 | 15,815 | ||||||||
| Shareholders’ equity: | ||||||||||
| Preferred stock – $0.001 par value, 5,000,000 shares authorized: | ||||||||||
| no shares issued and outstanding | – | – | ||||||||
| Common stock – $0.001 par value, 100,000,000 shares authorized: | ||||||||||
| 53,015,767 shares issued and outstanding | 53 | 53 | ||||||||
| Additional paid-in capital | 96,240 | 102,674 | ||||||||
| (Deficit) accumulated during the exploration stage | – | (5,851 | ) | |||||||
| Treasury stock at cost, 336,398 shares | (5,884 | ) | (5,884 | ) | ||||||
| Accumulated other comprehensive – currency translation adjustment | (1,144 | ) | (1,178 | ) | ||||||
| Total shareholders’ equity | 89,265 | 89,814 | ||||||||
| Total liabilities and shareholders’ equity | $ | 108,440 | $ | 105,629 | ||||||
| GOLD RESOURCE CORPORATION | |||||||||
| (An Exploration Stage Company) | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
| for the three months ended March 31, 2013 and 2012 | |||||||||
| (U.S. dollars in thousands) | |||||||||
| (Unaudited) | |||||||||
| 2013 | 2012 | ||||||||
| Cash flows from operating activities: | |||||||||
| Net income | $ | 7,387 | $ | 13,504 | |||||
| Adjustments to reconcile net income to net cash | |||||||||
| from/(used in) operating activities: | |||||||||
| Depreciation and amortization | 653 | 296 | |||||||
| Accretion | 29 | 20 | |||||||
| Asset retirement obligation | – | – | |||||||
| Stock-based compensation | 1,512 | 2,056 | |||||||
| Management fee paid in stock | – | – | |||||||
| Related party payable paid in stock | – | – | |||||||
| Unrealized foreign currency exchange (gain) loss | (119 | ) | 1,983 | ||||||
| Unrealized loss (gain) from gold and silver bullion held | 178 | (198 | ) | ||||||
| Deferred tax assets | – | – | |||||||
| Other | – | – | |||||||
| Changes in operating assets and liabilities: | |||||||||
| Accounts receivable | (4,887 | ) | 842 | ||||||
| Inventories | 942 | (2,769 | ) | ||||||
| Prepaid expenses and other assets | (1,908 | ) | 129 | ||||||
| Accounts payable | 1,910 | (3,160 | ) | ||||||
| Accrued expenses | 1,469 | 3,134 | |||||||
| IVA taxes payable/receivable | (1,216 | ) | 1,184 | ||||||
| Income taxes payable/receivable | 263 | (12,656 | ) | ||||||
| Total adjustments | (1,174 | ) | (9,139 | ) | |||||
| Net cash provided by (used in) operating activities | 6,213 | 4,365 | |||||||
| Cash flows from investing activities: | |||||||||
| Capital expenditures | (3,682 | ) | (1,609 | ) | |||||
| Purchases of gold and silver bullion | (485 | ) | (2,879 | ) | |||||
| Proceeds from conversion of gold and silver bullion | 664 | – | |||||||
| Net cash used in investing activities | (3,503 | ) | (4,488 | ) | |||||
| Cash flows from financing activities: | |||||||||
| Proceeds from sales of common stock | – | – | |||||||
| Proceeds from exercise of stock options | – | – | |||||||
| Proceeds from debentures – founders | – | – | |||||||
| Dividends paid | (9,482 | ) | (7,935 | ) | |||||
| Treasury stock purchases | – | – | |||||||
| Proceeds from exploration funding agreement | – | – | |||||||
| Net cash (used in) provided by financing activities | (9,482 | ) | (7,935 | ) | |||||
| Effect of exchange rates on cash and equivalents | 18 | 102 | |||||||
| Net (decrease) increase in cash and cash equivalents | (6,754 | ) | (7,956 | ) | |||||
| Cash and equivalents at beginning of period | 35,780 | 51,960 | |||||||
| Cash and equivalents at end of period | $ | 29,026 | $ | 44,004 | |||||
| Supplemental Cash Flow Information | |||||||||
| Income taxes paid | $ | 3,496 | $ | 17,305 | |||||
