Q3 Results, Production Increases by 54% Over Q2 GOLD RESOURCE CORPORATION REPORTS THIRD
QUARTER 2012 RESULTS; INCREASES PRODUCTION BY 54% OVER PRIOR
QUARTER
COLORADO SPRINGS – November 15, 2012 – Gold Resource Corporation (NYSE MKT:
GORO) (the Company) today announced results for its third quarter ending September 30,
2012. Gold Resource Corporation is a low-cost gold producer with operations in the southern state of Oaxaca, Mexico.
2012 Q3 HIGHLIGHTS
? 22,336 ounces precious metal gold equivalent (AuEq) produced
? 18,059 ounces (AuEq) sold
? 54% AuEq production increase over prior quarter
? $23.8 million mine gross profit generated
? $13.1 million pretax income, or $0.26 per share
? $7.3 million net income, or $0.14 per share
? $9.5 million dividend distribution, or $0.18 per share
? $6.6 million physical gold and silver in treasury
? Continued physical gold and silver dividend program
Overview of Third Quarter 2012 Results from El Aguila Project
Gold Resource Corporation’s El Aguila Project produced 22,336 ounces (AuEq) before payable metal deductions. The Company sold 18,059 ounces precious metal gold equivalent (AuEq) at a total cash cost of $459 per ounce AuEq in the third quarter. Average prices realized on sales during the quarter were $1,769 per ounce gold and $32 per ounce silver. Mine gross profit generated was $23.8 million. The Company paid $9.5 million to shareholders in dividends. The Company continued its physical dividend program where shareholders have the option to convert their cash dividends to physical gold and/or silver.
“Our 54% increase in third quarter production was the result of overcoming many challenges including increasing water, increasing CO2 gas and mine development hurdles,” stated Gold Resource Corporation’s President, Mr. Jason Reid. “We continued to upgrade our management team which I believe was in large part the reason behind the increase in production. The positive takeaway from the quarter should include increased production, continued profitability, lowered total cash costs, and returning $9.5 million in dividends to the owners of the Company,” stated Mr. Reid.
The Company will host a conference call at 11:00 a.m. EDT on Thursday, November 15 Conference call details can be found on the Company website at www.goldresourcecorp.com.
Below is a table of the key production statistics for our El Aguila Project during the three and nine months ended September 30, 2012:
Three Months
Ended September
30,
Three Months
Ended September
30,
Nine Months
Ended September
30,
Nine Months
Ended September
30,
2012 2011 2012 2011
Production Summary
Milled:
Tonnes Milled 76,786 57,156 211,792 112,372
Tonnes Milled per Day 835 621 773 621
Grade:
Average Gold Grade (g/t) 4.17 3.89 4.08 3.02
Average Silver Grade (g/t) 320 491 365 438
Average Copper Grade (%) 0.43 0.47 0 .44 0.44
Average Lead Grade (%) 2.14 1.30 1.88 1.18
Average Zinc Grade (%) 4.43 2.91 4.01 2.58
Recoveries:
Average Gold Recovery (%) 88 89 89 90
Average Silver Recovery (%) 94 93 93 93
Average Copper Recovery (%) 75 78 74 75
Average Lead Recovery (%) 64 77 69 78
Average Zinc Recovery (%) 80 77 77 73
Mill production (before payable metal deductions)(2)
Gold (ozs.) 9,047 6,371 24,611 9,855
Silver (ozs.) 739,576 841,820 2,317,110 1,472,486
Copper (tonnes) 245 211 6 87 369
Lead (tonnes) 1,051 569 2,734 1,027
Zinc (tonnes) 2,705 1,281 6,567 2,117
Payable metal sold(2)
Gold (ozs.) 7,287 5,605 20,317 13,219
Silver (ozs.) 599,501 780,317 1,982,868 1,356,806
Copper (tonnes) 214 189 5 96 270
Lead (tonnes) 869 497 2,231 888
Zinc (tonnes) 1,993 938 5,003 1,422
Average metal prices realized
Gold (oz.) $ 1,769 $ 1,702 $ 1,690 $ 1,553
Silver (oz.) $ 32 $ 38 $ 31 $ 37
Copper ( tonne) $ 8,161 $ 8,835 $ 8,162 $ 8,869
Lead (tonne) $ 2,107 $ 2,346 $ 2,080 $ 2,402
Zinc ( tonne) $ 1,999 $ 2,182 $ 1,997 $ 2,185
Gold equivalent ounces produced (mill production)(2)
Gold Ounces 9,047 6,371 24,611 9,397
Gold Equivalent Ounces from Silver 13,289 18,918 42,038 31,270
Total Gold Equivalent Ounces 22,336 25,289 66,649 40,667
Gold equivalent ounces sold(2)
Gold Ounces 7,287 5,605 20,317 13,219
Gold Equivalent Ounces from Silver 10,772 17,535 35,974 32,651
Total Gold Equivalent Ounces 18,059 23,140 56,291 45,870
Total Cash Cost per Gold Equivalent Ounce(1) $ 459 $ 260 $ 396 $ -
Production and Sales Statistics
La Arista Underground Mine La Arista Underground Mine
_________________________________________________
(1) A reconciliation of this non-GAAP measure to mine cost of sales, the most comparable GAAP measure, can be found below in Non-
GAAP Measures. Total cash cost per gold equivalent ounce sold for the combined La Arista underground mine and the El Aguila
open pit mine for the for the nine months ended September 30, 2011, can be found in the Non-GAAP Measures in the Form 10-Q for
the period ended September 30, 2012.
(2) Mill production represents metal contained in concentrates produced at the mill, which is before payable metal deductions are levied
by the buyer of the Company’s concentrates. In addition, mill production quantities fort the nine months ended September 30, 2012
do not reflect any deduction for 757 gold ounces and 43,435 silver ounces (approximately 1,800 gold equivalent ounces) resulting
from the settlement agreement with the buyer of the Company’s concentrates as discussed in Note 13 of the Consolidated Financial
Statements in the Form 10-Q for the period ended September 30, 2012. Gold equivalent ounces sold for the nine months ended
September 30, 2012 have been reduced by approximately 1,800 gold equivalent ounces as a result of the settlement.
El Aguila Open
Pit Mine
Nine Months
Ended September
30,
2011 (1)
Production Summary
Milled:
Tonnes Milled 46,409
Tonnes Milled per Day 829
Grade:
Average Gold Grade (g/t) 4.18
Average Silver Grade (g/t) 53
Recoveries:
Average Gold Recovery (%) 89
Average Silver Recovery (%) 75
Mill production (before payable metal deductions)
Gold (ozs.) 5,559
Silver (ozs.) 58,309
Payable metal sold
Gold (ozs.) 3,917
Silver (ozs.) 43,605
Average metal prices realized
Gold (oz.) $ 1,383
Silver (oz.) $ 34
Gold equivalent ounces produced (mill production)
Gold Ounces 5,559
Gold Equivalent Ounces from Silver (2) -
Total Gold Equivalent Ounces 5,559
Gold equivalent ounces sold
Gold Ounces 3,917
Gold Equivalent Ounces from Silver (2) -
Total Gold Equivalent Ounces 3,917
Production and Sales Statistics
(1) No activity for the three months ended September 30, 2011.
(2) Silver ounces were considered a by-product in arriving at the total cash cost per ounce equivalent.
(3) Total cash cost per gold equivalent ounce sold for the combined La Arista underground mine and the El Aguila open pit mine for the
for the nine months ended September 30, 2011 can be found in the Non-GAAP Measures in the Form 10-Q for the period ended
September 30, 2012.
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 52,679,369 shares outstanding, no warrants and no debt. Gold Resource Corporation is the only Company to offer its shareholders a dividend option to obtain physical gold or silver in addition to cash. 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.