580 0 Kommentare Gold Resource Corporation Reports Second Quarter Net Income of $7.8 Million, or $0.14 per Share; Maintains 2014 Production Outlook

COLORADO SPRINGS, CO--(Marketwired - Aug 7, 2014) - Gold Resource Corporation (NYSE MKT: GORO) (the "Company") reported production results for the second quarter ended June 30, 2014 of 24,172 ounces precious metal gold equivalent (AuEq) (calculated at actual sales price ratio of 67:1), which generated $33.7 million in revenues and net income of $7.8 million for the quarter, while decreasing its total cash cost per ounce AuEq by 32% over the second quarter of 2013. Gold Resource Corporation is a gold and silver producer with operations in the southern state of Oaxaca, Mexico. The Company has returned over $98 million to shareholders in monthly dividends since commercial production commenced July 1, 2010, and offers shareholders the option to convert their cash dividends and take delivery in physical gold and silver.

2014 Q2 HIGHLIGHTS

24,172 ounces AuEq mill production
20,647 ounces AuEq sold
$438 total cash cost per ounce AuEq (after by-product credits and including 5% royalty)
32% decrease in total cash cost per ounce AuEq from Q2 2013
$19.4 million Cash Flow from Mine Site Operations
$7.8 million net income, or $0.14 per share
$1.6 million dividend distributions, or $0.03 per share for quarter
$10.2 million Cash and Cash Equivalents increase from prior quarter to $29.6 million
1,098 tonnes milled per day, a 27% increase over 2013 annual average
$8.5 million by-product credits, or $411 per ounce AuEq sold

Overview of Q2 2014 El Aguila Project Results

Gold Resource Corporation's El Aguila Project produced 24,172 ounces AuEq at a total cash cost of $438 per ounce. Realized average metal price sales during the quarter were $1,276 per ounce gold and $19 per ounce silver. Net income totaled $7.8 million, or $0.14 per share. Cash Flow from Mine Site Operations totaled $19.4 million. The Company paid $1.6 million to shareholders in dividends or $0.03 per share during the quarter. Cash and cash equivalents at quarter end totaled $29.6 million, increasing 98% during the first six months of 2014. Gold and silver prices decreased 7.9% and 17.4%, respectively, from the second quarter of 2013.

"The Company delivered strong second quarter operating results with production increasing 2% compared to first quarter, and increasing 17% over second quarter of 2013," stated Gold Resource Corporation's CEO and President, Mr. Jason Reid. "Total cash costs of $438 per precious metal gold equivalent ounce sold, calculated after by-product credits and including royalties, was 32% lower than second quarter of 2013. The Aguila Project continues to generate profits even in today's lower precious metal price environment, allowing the Company to invest in its Oaxaca Mining Unit, build its treasury, and distribute monthly dividends to our shareholders. The Company remains on track to meet its annual production outlook of 85,000 to 100,000 ounces of precious metal gold equivalent."

Below is a table of the key production statistics for our El Aguila Project during the three and six months ended June 30, 2014 and 2013:



Production and Sales Statistics - La Arista Underground Mine

		Three months ended June 30,				Six months ended June 30,
		2014		2013		2014		2013
Production Summary
Milled:
	Tonnes Milled		99,876		72,740		204,225		148,924
	Tonnes Milled per Day		1,098		808		1,128		823
Grade:
	Average Gold Grade (g/t)		3.41		3.83		3.33		3.75
	Average Silver Grade (g/t)		315		349		300		347
	Average Copper Grade (%)		0.40		0.38		0.37		0.39
	Average Lead Grade (%)		1.34		1.12		1.28		1.11
	Average Zinc Grade (%)		3.18		2.61		3.31		2.70
Recoveries:
	Average Gold Recovery (%)		93		90		92		89
	Average Silver Recovery (%)		93		92		92		92
	Average Copper Recovery (%)		79		72		79		78
	Average Lead Recovery (%)		75		70		73		70
	Average Zinc Recovery (%)		82		74		82		77
Mill production (before payable metal deductions)⁽¹⁾
	Gold (ozs.)		10,205		8,015		20,163		15,913
	Silver (ozs.)		940,268		747,646		1,819,226		1,525,317
	Copper (tonnes)		314		202		606		450
	Lead (tonnes)		994		573		1,923		1,159
	Zinc (tonnes)		2,603		1,405		5,523		3,081
Payable metal sold
	Gold (ozs.)		8,328		7,297		16,914		16,250
	Silver (ozs.)		829,351		755,746		1,595,886		1,618,898
	Copper (tonnes)		264		194		523		499
	Lead (tonnes)		922		496		1,734		1,139
	Zinc (tonnes)		2,249		1,180		4,407		2,915
Average metal prices realized ⁽²⁾
	Gold (oz.)	$	1,276	$	1,386	$	1,286	$	1,530
	Silver (oz.)	$	19	$	23	$	20	$	27
	Copper (tonne)	$	6,742	$	7,114	$	6,840	$	7,652
	Lead (tonne)	$	2,109	$	2,127	$	2,101	$	2,308
	Zinc (tonne)	$	2,116	$	1,848	$	2,083	$	2,030
Precious metal gold equivalent ounces produced (mill production)^(1)(4)(5)
	Gold Ounces		10,205		8,015		20,163		15,913
	Gold Equivalent Ounces from Silver		13,967		12,559		27,733		27,086
	Total Precious Metal Gold Equivalent Ounces		24,172		20,574		47,896		42,999
Precious metal gold equivalent ounces sold^(3)(4)(5)
	Gold Ounces		8,328		7,297		16,914		16,250
	Gold Equivalent Ounces from Silver		12,319		12,695		24,327		28,748
	Total Precious Metal Gold Equivalent Ounces		20,647		19,992		41,241		44,998
	Total cash cost (before by-product credits) per precious metal gold equivalent ounce sold (including royalties) ⁽³⁾	$	849	$	876	$	828	$	822
	Total cash costs, after by-product credits, per precious metal gold equivalent ounce sold (including royalties) ⁽³⁾	$	438	$	645	$	430	$	547


(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. Payable metal deduction quantities are defined in our contracts with the buyer of our concentrates and represent an estimate of metal contained in the concentrates produced at our mill, for which the buyer cannot recover through the smelting process. There are inherent limitations and differences in the sampling method and assaying of estimated metal contained in concentrates that are shipped, and those contained metal estimates derived from sampling methods and assaying throughout the mill production process. The Company monitors these differences to ensure that precious metal mill production quantities are materially correct.
(2)	Average metal prices realized vary from the market metal prices due to out of period settlement adjustments from our provisional invoices when they are settled. Our average metal prices realized will therefore differ from the market average metal prices in most cases.
(3)	A reconciliation of this Non-GAAP measure to total mine cost of sales, the most comparable U.S. GAAP measure, can be found in Management's Discussion and Analysis contained in the report on Form 10-Q for the period ended June 30, 2014 filed with the Securities and Exchange Commission.
(4)	Precious metal gold equivalent mill production for the three months ended June 30, 2014 of 24,172 ounces differs from gold equivalent ounces sold for the same period of 20,647 due principally to buyer (smelter) concentrate processing deductions of approximately 3,341 gold equivalent ounces and an increase in gold equivalent ounces contained in ending inventory of approximately 184 ounces.
(5)	Precious metal gold equivalent mill production for the six months ended June 30, 2014 of 47,896 ounces differs from gold equivalent ounces sold for the same period of 41,241 principally due to buyer (smelter) concentrate processing deductions of approximately 5,459 gold equivalent ounces and an increase in gold equivalent ounces contained in ending inventory of approximately 1,196 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 54,179,369 shares outstanding and no warrants. Gold Resource Corporation offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery. 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 and six months ended June 30, 2014 and 2013, its financial condition at June 30, 2014 and December 31, 2013 and its cash flows for the six months ended June 30, 2014 and 2013. The summary data for the three and six months ended June 30, 2014 is unaudited; the summary data for the year ended December 31, 2013 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2013, 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 for a complete discussion and reconciliation of the non-GAAP measures.


GOLD RESOURCE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
for the three and six months ended June 30, 2014 and 2013
(U.S. dollars in thousands, except shares and per share amounts)
(Unaudited)


			Three months ended June 30,					Six months ended June 30,
			2014		2013			2014		2013

Sales of metals concentrate, net			$	33,669	$	26,660		$	64,821	$	68,971
Mine cost of sales:
	Production costs			14,801		14,931			29,021		30,642
	Depreciation and amortization			1,044		557			1,789		1,093
	Reclamation and remediation			-		28			-		57
		Total mine cost of sales		15,845		15,516			30,810		31,792
Mine gross profit				17,824		11,144			34,011		37,179
Costs and expenses:
	General and administrative expenses			2,249		3,457			5,262		7,842
	Exploration expenses			1,597		2,806			2,885		6,105
	Facilities and mine construction			-		5,649			-		11,654
		Total costs and expenses		3,846		11,912			8,147		25,601
Operating income (loss)				13,978		(768	)		25,864		11,578
Other income (expense)				214		(1,862	)		683		(1,898	)
Income (loss) before income taxes				14,192		(2,630	)		26,547		9,680
	Provision (benefit) for income taxes			6,384		(1,257	)		11,613		3,667
Net income (loss)			$	7,808	$	(1,373	)	$	14,934	$	6,013
Other comprehensive income (loss):
	Currency translation gain			-		(45	)		-		(11	)
Comprehensive income (loss)			$	7,808	$	(1,418	)	$	14,934	$	6,002
Net income (loss) per common share:
	Basic:		$	0.14	$	(0.03	)	$	0.28	$	0.11
	Diluted:		$	0.14	$	(0.03	)	$	0.27	$	0.11

Weighted average shares outstanding:
	Basic			54,179,369		53,272,776			54,057,822		52,977,712
	Diluted			54,556,217		53,272,776			54,629,512		55,434,474


GOLD RESOURCE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except shares)

			June 30,			December 31,
			2014			2013
ASSETS			(Unaudited)
Current assets:
	Cash and cash equivalents		$	29,627		$	14,973
	Gold and silver bullion			3,785			3,801
	Accounts receivable			6,083			2,307
	Inventories			6,358			7,468
	Income taxes receivable			-			6,488
	Deferred tax assets			3,973			3,973
	Prepaid expenses and other assets			5,374			5,808
		Total current assets		55,200			44,818
Land and mineral rights				227			227
Property, equipment and mine development - net				24,508			18,127
Inventories				903			903
Deferred tax assets				27,663			27,663
Investments (including $2,710 and nil, respectively, measured at fair value)				2,941			231
		Total assets	$	111,442		$	91,969
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Accounts payable		$	4,773		$	2,873
	Accrued expenses			4,796			5,613
	Capital lease obligations			1,484			1,469
	IVA taxes payable			1,131			925
	Income taxes payable			5,161			-
	Dividends payable			542			538
		Total current liabilities		17,887			11,418
Capital lease obligations				1,641			2,387
Reclamation and remediation liabilities				2,894			2,887
		Total liabilities		22,422			16,692
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: 54,515,767 and 54,115,767 shares issued and outstanding, respectively				55			54
Additional paid-in capital				90,095			88,044
Retained earnings/Accumulated (deficit)				5,925			(5,766	)
Treasury stock at cost, 336,398 shares				(5,884	)		(5,884	)
Accumulated other comprehensive (loss)				(1,171	)		(1,171	)
		Total shareholders' equity		89,020			75,277
		Total liabilities and shareholders' equity	$	111,442		$	91,969


GOLD RESOURCE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
for the six months ended June 30, 2014 and 2013
(U.S. dollars in thousands)
(Unaudited)



			2014			2013

Cash flows from operating activities:
	Net income		$	14,934		$	6,013
	Adjustments to reconcile net income to net cash from operating activities:
		Depreciation and amortization		1,895			1,188
		Reclamation and remediation		-			57
		Stock-based compensation		1,956			3,690
		Unrealized foreign currency exchange loss (gain)		10			217
		Impairment loss on gold and silver bullion		-			1,743
		Unrealized gain due to changes in fair value of investments		(802	)		-
	Changes in operating assets and liabilities:
		Accounts receivable		(3,796	)		3,086
		Inventories		1,104			363
		Prepaid expenses and other assets		433			(2,250	)
		Accounts payable		1,588			1,642
		Accrued expenses		(1,359	)		1,682
		IVA taxes payable/receivable		204			(370	)
		Income taxes payable/receivable		11,588			(6,081	)
	Net cash provided by operating activities			27,755			10,980
Cash flows from investing activities:
	Capital expenditures			(7,438	)		(5,113	)
	Purchases of gold and silver bullion			-			(806	)
	Proceeds from conversion of gold and silver bullion			16			1,048
	Investments			(1,805	)		(231	)
	Net cash used in investing activities			(9,227	)		(5,102	)
Cash flows from financing activities:
	Proceeds from exercise of stock options			100			150
	Dividends paid			(3,243	)		(15,876	)
	Proceeds from capital leases			-			4,501
	Repayment of capital leases			(731	)		-
	Net cash used in financing activities			(3,874	)		(11,225	)
Effect of exchange rates on cash and equivalents				-			(19	)
Net increase (decrease) in cash and cash equivalents				14,654			(5,366	)
Cash and equivalents at beginning of period				14,973			35,780
Cash and equivalents at end of period			$	29,627		$	30,414

Supplemental Cash Flow Information
Interest paid			$	96		$	-
Income taxes paid			$	-		$	9,823