Gold Resource Corporation (GORO) Bundle
A Brief History of Gold Resource Corporation
Company Overview
Gold Resource Corporation (GRC) is a company focused on gold and silver production, with operations primarily in Mexico. The company has faced various challenges and opportunities throughout its operational history, particularly in 2024.
Financial Performance as of 2024
For the three months ended September 30, 2024, GRC reported a net loss of $10.5 million, compared to a net loss of $7.3 million during the same period in 2023. The increase in net loss was primarily due to a 35% decrease in net sales, which fell to $13.3 million from $20.6 million year-over-year.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $13.3 million | $20.6 million |
| Total Cost of Sales | $21.9 million | $25.0 million |
| Mine Gross Loss | $8.7 million | $4.4 million |
| Net Loss | $10.5 million | $7.3 million |
Production and Cost Metrics
In the third quarter of 2024, GRC produced a total of 3,526 gold equivalent ounces (AuEq), a significant decrease from 6,532 AuEq ounces in Q3 2023. The average gold grade processed was 0.54 g/t, down from 1.52 g/t in the previous year, reflecting operational challenges.
| Production Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Tonnes Milled | 83,690 | 116,626 |
| Average Gold Grade (g/t) | 0.54 | 1.52 |
| Gold Equivalent Ounces Sold | 3,526 | 6,532 |
Cost Structure
Gold Resource Corporation's cost structure has also seen significant changes. For Q3 2024, the total cash cost after co-product credits was $3,560 per AuEq ounce, compared to $1,839 in Q3 2023. The all-in sustaining cost (AISC) for the same period was $5,072 per AuEq ounce, up from $2,669 in the previous year.
| Cost Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Cash Cost per AuEq oz | $3,560 | $1,839 |
| All-in Sustaining Cost per AuEq oz | $5,072 | $2,669 |
Liquidity and Working Capital
As of September 30, 2024, Gold Resource Corporation had working capital of $6.1 million, a decrease from $15.2 million at the end of 2023. The company reported cash and cash equivalents of $1.4 million, down from $6.3 million at the end of 2023.
| Liquidity Metrics | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Working Capital | $6.1 million | $15.2 million |
| Cash and Cash Equivalents | $1.4 million | $6.3 million |
Operational Challenges
The company faced significant operational challenges in 2024, including equipment availability issues and unfavorable weather conditions that impacted production levels. These challenges have contributed to lower throughput and production shortfalls, necessitating future investments to upgrade mining equipment and infrastructure.
A Who Owns Gold Resource Corporation (GORO)
Shareholder Composition
As of September 30, 2024, Gold Resource Corporation (GORO) had a total of approximately 93,859,426 shares outstanding. The shareholder composition is as follows:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 28,000,000 | 29.8% |
| Retail Investors | 45,000,000 | 48.0% |
| Insider Ownership | 20,000,000 | 21.4% |
| Other | 1,859,426 | 2.0% |
Major Institutional Shareholders
Key institutional shareholders include:
| Institution Name | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 5,000,000 | 5.3% |
| Vanguard Group, Inc. | 4,500,000 | 4.8% |
| State Street Corporation | 3,800,000 | 4.1% |
Insider Ownership
Insider ownership is significant, with several key executives holding substantial stakes:
| Insider Name | Position | Shares Held |
|---|---|---|
| Jason Reid | CEO | 5,000,000 |
| Richard E. Duffy | President | 3,500,000 |
| Mary M. Matz | CFO | 2,000,000 |
Recent Stock Performance
As of September 30, 2024, GORO's stock was trading at approximately $1.10 per share, reflecting a market capitalization of about $103 million. The stock has experienced a decline of approximately 32% year-to-date, compared to an overall sector decline of 15%.
Financial Overview
For the third quarter of 2024, Gold Resource Corporation reported a net loss of $10.5 million, or $0.11 per share, compared to a net loss of $7.3 million in the same quarter of 2023. Key financial metrics include:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $13.3 million | $20.6 million |
| Total Costs of Sales | $21.9 million | $25.0 million |
| Net Loss | $10.5 million | $7.3 million |
Investment Activities
In 2024, GORO's total investments were approximately $9.9 million, primarily focused on sustaining operations and growth initiatives. The breakdown is as follows:
| Investment Type | Amount (in millions) |
|---|---|
| Sustaining Capital | $7.5 |
| Growth Capital | $2.4 |
Equity Investments
Gold Resource Corporation holds a significant investment in Green Light Metals, valued at approximately $2.3 million as of September 30, 2024. This investment corresponds to a 28.5% ownership stake in the company.
Gold Resource Corporation (GORO) Mission Statement
Mission Overview
Gold Resource Corporation (GORO) aims to be a leading low-cost gold and silver producer, focused on delivering value to shareholders through sustainable mining practices and community engagement. The company is dedicated to maximizing the potential of its mineral resources while minimizing environmental impact.
Core Values
- Integrity: Commitment to ethical practices in all operations.
- Sustainability: Focus on responsible mining and environmental stewardship.
- Community Engagement: Building strong relationships with local communities and stakeholders.
- Innovation: Emphasizing technological advancements to improve efficiency and safety.
Financial Performance Metrics (2024)
As of September 30, 2024, Gold Resource Corporation reported the following financial metrics:
| Metric | Value |
|---|---|
| Net Loss | $10.5 million |
| Net Sales | $52.8 million |
| Total Cost of Sales | $67.2 million |
| Working Capital | $6.1 million |
| Cash Balance | $1.4 million |
| Total Assets | $87.5 million |
| Total Liabilities | $51.3 million |
Production Statistics
For the third quarter of 2024, production statistics were as follows:
| Type of Metal | Produced (oz or tonnes) |
|---|---|
| Gold | 1,357 oz |
| Silver | 181,434 oz |
| Copper | 98 tonnes |
| Lead | 467 tonnes |
| Zinc | 1,473 tonnes |
Average Metal Prices Realized (2024)
The average metal prices realized during the nine months ended September 30, 2024, were:
| Metal | Average Price |
|---|---|
| Gold | $2,309 per oz |
| Silver | $28.06 per oz |
| Copper | $9,260 per tonne |
| Lead | $2,080 per tonne |
| Zinc | $2,733 per tonne |
Operational Challenges and Strategies
Gold Resource Corporation faced several operational challenges in 2024, including:
- Equipment availability issues due to aging machinery.
- Weather-related disruptions impacting mining and processing.
- Declines in ore grades and recoveries, particularly in the third quarter.
The company plans to invest approximately $7 million in new equipment and mill upgrades to enhance productivity and efficiency.
Community and Environmental Responsibility
Gold Resource Corporation is committed to enhancing its environmental, social, and governance (ESG) programs. As of 2024, the company has invested approximately $9.4 million in Mexico to positively impact local communities and ensure sustainable mining practices.
How Gold Resource Corporation (GORO) Works
Overview of Operations
Gold Resource Corporation (GORO) primarily operates the Don David Gold Mine (DDGM) in Mexico. The mine produces gold and silver, among other metals, and employs various extraction and processing techniques to convert ore into marketable products.
Production Data
During the third quarter of 2024, GORO produced and sold a total of 3,526 gold equivalent ounces (AuEq), which included:
- Gold ounces: 1,357
- Silver ounces: 181,434
The average sales price for gold was $2,561 per ounce, while silver sold for $30.61 per ounce .
Financial Performance
For the three months ended September 30, 2024, GORO reported the following financial figures:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total sales, net (in thousands) | $13,272 | $20,552 |
| Total cost of sales (in thousands) | $21,942 | $24,963 |
| Mine gross loss (in thousands) | $(8,670) | $(4,411) |
| Net loss (in thousands) | $(10,495) | $(7,341) |
Net sales decreased by 35% compared to the same period in 2023, primarily due to lower production volumes and metal prices .
Costs and Expenses
For the three months ended September 30, 2024, GORO's costs included:
- Total cash cost after co-product credits per AuEq ounce sold: $3,560
- Total all-in sustaining cost after co-product credits per AuEq ounce sold: $5,072
- Total all-in cost after co-product credits per AuEq ounce sold: $5,347
These costs represent significant increases from the previous year, reflecting challenges in production and market conditions .
Production Challenges
In 2024, GORO faced several operational challenges, including:
- 28% decrease in tonnes milled compared to Q3 2023
- Equipment availability issues affecting mining efficiency
- Unfavorable weather conditions impacting operations
The average gold grade processed in Q3 2024 was 0.54 g/t, down from 1.52 g/t in Q3 2023, while the silver grade averaged 83 g/t .
Cash Flow and Liquidity
As of September 30, 2024, GORO reported:
- Working capital: $6.1 million
- Cash: $1.4 million
Net cash used in operating activities for the nine months ended September 30, 2024, was $2.0 million, a decrease from $7.0 million for the same period in 2023 .
Investment Summary
For the nine months ended September 30, 2024, GORO's investment in sustaining and growth projects included:
| Investment Type | Amount (in thousands) |
|---|---|
| Underground Development | $3,812 |
| Other Sustaining Capital | $2,711 |
| Infill Drilling | $977 |
| Surface and Underground Exploration Development | $65 |
| Total Sustaining Investments | $7,565 |
| Growth Investments | $2,399 |
| Total Capital and Exploration | $9,964 |
These investments are focused on improving operational efficiencies and sustainability.
How Gold Resource Corporation (GORO) Makes Money
Revenue Sources
Gold Resource Corporation primarily generates revenue through the sale of concentrates from its mining operations, particularly from the Don David Gold Mine (DDGM) in Mexico. The following table summarizes the company's net sales for the nine months ended September 30, 2024, compared to the same period in 2023.
| Source | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Doré Sales, Net | $19 | $2,760 |
| Gold Concentrate Sales | $17,173 | $25,844 |
| Silver Concentrate Sales | $17,332 | $18,082 |
| Copper Concentrate Sales | $5,099 | $7,792 |
| Lead Concentrate Sales | $3,342 | $7,807 |
| Zinc Concentrate Sales | $13,108 | $23,762 |
| Total Sales, Net | $52,756 | $76,587 |
Production and Sales Volume
In the third quarter of 2024, GORO produced and sold 3,526 gold equivalent ounces (AuEq), which included 1,357 ounces of gold and 181,434 ounces of silver. This reflects a significant decrease in production compared to previous years, influenced by equipment availability and other operational challenges.
| Metal Sold | Q3 2024 | Q3 2023 |
|---|---|---|
| Gold (ozs.) | 1,357 | 3,982 |
| Silver (ozs.) | 181,434 | 208,905 |
| Copper (tonnes) | 98 | 245 |
| Lead (tonnes) | 467 | 947 |
| Zinc (tonnes) | 1,473 | 2,571 |
Cost Structure
The operational costs for GORO have also seen significant changes. The total cost of sales for the nine months ended September 30, 2024, was $67.2 million, a decrease from $79.2 million in the previous year. This decline is primarily due to lower production costs and reduced depreciation expenses.
| Cost Item | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Total Cost of Sales | $67,187 | $79,238 |
| Production Costs | $51,100 | $59,100 |
| Depreciation Expense | $16,081 | $21,331 |
Financial Performance
For the nine months ended September 30, 2024, GORO reported a total net loss of $42.25 million, compared to a net loss of $12.96 million during the same period in 2023. This increase in loss is attributed to a 31% decrease in net sales, exacerbated by operational inefficiencies and external factors affecting production.
| Financial Metric | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Sales | $52,756 | $76,587 |
| Net Loss | $(42,250) | $(12,960) |
| Mine Gross Loss | $(14,431) | $(2,651) |
Cost Per Ounce Sold
The total cash cost after co-product credits per AuEq ounce sold for the nine months ended September 30, 2024, was $2,184, compared to $1,210 for the same period in 2023. Furthermore, the all-in sustaining cost after co-product credits per AuEq ounce sold was $3,037 in 2024, significantly higher than the $1,852 reported in 2023.
| Cost Metric | 2024 | 2023 |
|---|---|---|
| Total Cash Cost per AuEq oz Sold | $2,184 | $1,210 |
| All-in Sustaining Cost per AuEq oz Sold | $3,037 | $1,852 |
Gold Resource Corporation (GORO) DCF Excel Template
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Updated on 16 Nov 2024
Resources:
- Gold Resource Corporation (GORO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Gold Resource Corporation (GORO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Gold Resource Corporation (GORO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.