Gold Resource Corporation (NYSE American: GORO) (the "Company") announces an update to the operational and liquidity matters that were reported at the end of the third quarter.
During the month of November, the Company has seen an improvement in production at the Don David Gold Mine ("DDGM") as compared to earlier in the fourth quarter. Strategic mine planning succeeded in providing sufficient mining faces, and issues with the filter press and mill have been addressed for the time being. The improved production during the month, combined with high metal prices and the favorable US dollar to peso exchange rate, allowed the mine to operate at slightly better than break-even cash flow during the month. While the Company's available cash balance remains a concern, based on recent performance at the mine, the Company currently expects that operations at DDGM could continue through at least the first quarter of 2025 without immediate capital infusions.
The Company still requires additional funding for mining equipment, mill upgrades and working capital to develop the Three Sisters and Splay 31 areas that will be the basis for future production at DDGM. Without additional capital, the Company currently expects that DDGM will not be able to operate near break-even cash flow beyond the first quarter of 2025. If any significant unforeseen production or processing challenges were to materialize at DDGM, the Company's ability to continue to operate DDGM in the near-term would be further jeopardized. Various financing and funding options are currently being evaluated by the Company.
The Company has also identified an overpayment by DDGM of Mexico taxes in 2023 and has submitted a tax refund request for approximately $3.8 million ($76 million pesos). This amount is expected to be refunded to the Company in 2025, although the exact timing of payment is unpredictable.
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.
