Gold Resource Corporation (NYSE:GORO) (the “Company” or “GRC”) reported production results for the second quarter ended June 30, 2018 of 5,806 ounces of gold and 593,955 ounces of silver, which along with base metal revenue generated $30.8 million in net revenue and $3.8 million, or $0.07 per share in net income for the quarter. Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, U.S.A. The Company has returned $111 million to its shareholders in monthly dividends since commercial production commenced July 1, 2010 and offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery.
Q2 2018 HIGHLIGHTS
- $3.8 million net income, or $0.07 per share
- $30.8 million net sales
- 5,806 gold ounces produced
- 593,955 silver ounces produced
- $70 total cash cost per precious metal gold equivalent ounce sold (after by-product credits)
- $577 total all-in sustaining cost per precious metal gold equivalent ounce sold
- $18.0 million base metal by-product credits, or $1,430 per precious metal gold ounce sold
- $0.3 million dividend distributions, or $0.005 per share for quarter
- $26.6 million cash and cash equivalents
- $3.7 million gold and silver bullion
- Received final permit and began construction of Isabella Pearl Gold Project, Nevada
Overview of Q2 2018 Results
During the second quarter of 2018, the Company sold 12,572 precious metal gold equivalent ounces at a total cash cost of $70 per ounce (after by-product credits), benefiting from strong base metal production and sales. Average realized metal prices during the quarter included $1,304 per ounce gold and $16.53 per ounce silver*. The Company recorded net income of $3.8 million, or $0.07 per share. The Company paid $0.3 million to its shareholders in dividends, or $0.005 per share during the quarter. Cash and cash equivalents at quarter end totaled $26.6 million.
Production totals for the first six months of 2018 included 12,453 ounces of gold, 1,019,839 ounces of silver, 772 tonnes of copper, 3,155 tonnes of lead and 9,266 tonnes of zinc. The Company maintains its 2018 Annual Outlook, targeting a plus or minus 10 percent production of 27,000 gold ounces and 1,700,000 silver ounces.
*Average realized metal prices include final settlement adjustments for previously unsettled provisional sales. Provisional sales may remain unsettled from one quarter into the next. Realized prices will therefore vary from average spot metal market prices upon final settlement.
The following Production Statistics table summarizes certain information about our mining operations for three and six months ended June 30, 2018 and 2017:
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||
| Arista Mine | ||||||||||||
| Milled | ||||||||||||
| Tonnes Milled | 136,798 | 102,540 | 267,587 | 175,149 | ||||||||
| Grade | ||||||||||||
| Average Gold Grade (g/t) | 1.51 | 1.90 | 1.71 | 2.23 | ||||||||
| Average Silver Grade (g/t) | 141 | 127 | 124 | 152 | ||||||||
| Average Copper Grade (%) | 0.36 | 0.37 | 0.37 | 0.38 | ||||||||
| Average Lead Grade (%) | 1.47 | 1.53 | 1.55 | 1.56 | ||||||||
| Average Zinc Grade (%) | 4.07 | 4.82 | 4.24 | 4.59 | ||||||||
| Recoveries | ||||||||||||
| Average Gold Recovery (%) | 78 | 86 | 78 | 87 | ||||||||
| Average Silver Recovery (%) | 91 | 92 | 91 | 93 | ||||||||
| Average Copper Recovery (%) | 79 | 77 | 78 | 77 | ||||||||
| Average Lead Recovery (%) | 77 | 77 | 76 | 78 | ||||||||
| Average Zinc Recovery (%) | 80 | 84 | 82 | 85 | ||||||||
| Aguila Open Pit Mine | ||||||||||||
| Milled | ||||||||||||
| Tonnes Milled | 9,218 | 11,250 | 14,326 | 39,971 | ||||||||
| Grade | ||||||||||||
| Average Gold Grade (g/t) | 1.84 | 1.08 | 1.95 | 1.55 | ||||||||
| Average Silver Grade (g/t) | 43 | 44 | 44 | 34 | ||||||||
| Recoveries | ||||||||||||
| Average Gold Recovery (%) | 77 | 76 | 80 | 73 | ||||||||
| Average Silver Recovery (%) | 82 | 78 | 83 | 81 | ||||||||
| Mirador Mine | ||||||||||||
| Milled | ||||||||||||
| Tonnes Milled | 4,491 | – | 7,683 | – | ||||||||
| Grade | ||||||||||||
| Average Gold Grade (g/t) | 1.56 | – | 1.39 | – | ||||||||
| Average Silver Grade (g/t) | 182 | – | 182 | – | ||||||||
| Recoveries | ||||||||||||
| Average Gold Recovery (%) | 78 | |||||||||||