Gold Resource Corporation Reports First Quarter Results

COLORADO SPRINGS, CO--(Marketwired - May 4, 2016) - Gold Resource Corporation (NYSE MKT: GORO) (the "Company") reported production results for the first quarter ended March 31, 2016 of 6,463 ounces of gold and 434,142 ounces of silver, which generated $17.4 million in net revenue for the quarter. Gold Resource Corporation is a gold and silver producer with operations in Oaxaca, Mexico and exploration in Nevada, USA. The Company has returned $108 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.

2016 Q1 HIGHLIGHTS

• $0.8 million net income, or $0.01 per share
• $17.4 million sales, net
• $667 total cash cost per ounce AuEq (after by-product credits)
• 6,463 gold ounces produced
• 6,215 gold ounces sold
• 434,142 silver ounces produced
• 378,794 silver ounces sold
• $6.4 million adjusted cash flow from mine site operations
• $0.3 million dividend distributions, or $0.005 per share for quarter

Overview of Q1 2016 Aguila Project Results

Gold Resource Corporation's Aguila Project produced 6,463 ounces of gold and 434,142 ounces of silver at a total cash cost of $667 per precious metal gold equivalent ounce (after by-product credits). Realized average metal price sales during the quarter were $1,199 per ounce gold and $14.38 per ounce silver. The Company recorded net income of $0.8 million, or $0.01 per share. Adjusted cash flow from mine site operations totaled $6.4 million. The Company paid $0.3 million to shareholders in dividends, or $0.005 per share during the quarter. Cash and cash equivalents at quarter end totaled $10.3 million. Realized silver prices decreased 14% compared to the first quarter of 2015.

The Company maintains its 2016 annual production Outlook which targets 26,000 gold ounces and 1,900,000 silver ounces.

The following table summarizes certain information about our mining operations for the three months ended March 31, 2016 and 2015:

Production and Sales Statistics
			Three months ended March 31,
			2016			2015
Milled
	Tonnes Milled (1)			113,145			92,359
	Tonnes Milled per Day (2)			1,301			1,026
Grade
	Average Gold Grade (g/t)			1.99			3.13
	Average Silver Grade (g/t)			131			287
	Average Copper Grade (%)			0.29			0.42
	Average Lead Grade (%)			1.06			1.46
	Average Zinc Grade (%)			3.43			3.71
Recoveries
	Average Gold Recovery (%)			89			90
	Average Silver Recovery (%)			91			93
	Average Copper Recovery (%)			74			76
	Average Lead Recovery (%)			70			75
	Average Zinc Recovery (%)			84			81
Mill production (before payable metal deductions) (3)
	Gold (ozs.)			6,463			8,348
	Silver (ozs.)			434,142			790,300
	Copper (tonnes)			244			293
	Lead (tonnes)			838			1,013
	Zinc (tonnes)			3,261			2,762
Payable metal sold
	Gold (ozs.)			6,215			8,678
	Silver (ozs.)			378,794			727,315
	Copper (tonnes)			220			277
	Lead (tonnes)			762			920
	Zinc (tonnes)			2,599			2,205
Average metal prices realized (4)
	Gold ($ per oz.)			1,199			1,203
	Silver ($ per oz.)			14.38			16.74
	Copper ($ per tonne)			4,146			5,532
	Lead ($ per tonne)			1,807			1,731
	Zinc ($ per tonne)			1,717			2,008
Precious metal gold equivalent ounces produced (mill production) (3)
	Gold Ounces			6,463			8,348
	Gold Equivalent Ounces from Silver			5,206			10,999
	Total Precious Metal Gold Equivalent Ounces			11,669			19,347
Precious metal gold equivalent ounces sold
	Gold Ounces			6,215			8,678
	Gold Equivalent Ounces from Silver			4,542			10,122
	Total Precious Metal Gold Equivalent Ounces			10,757			18,800
	Total cash cost (before by-product credits) per precious metal gold equivalent ounce sold (including royalties) (5)		$	1,295		$	818
	Total cash cost, after by-product credits, per precious metal gold equivalent ounce sold (including royalties) (5)		$	667		$	416

(1)		Includes 16,697 tonnes of low-grade stockpile open pit ore.
(2)		Based on actual days the mill operated during the year. Note that this includes 195 tonnes attributable to processing a portion of the low-grade stockpile open pit ore.
(3)		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 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 are 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.
(4)		Average metal prices realized vary from the market metal prices due to final 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.
(5)		For a reconciliation of this non-GAAP measure to total mine cost of sales, which is the most comparable U.S. GAAP measure, please see Non-GAAP Measures in the Company's most recently filed 10-Q.

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 at its producing Oaxaca, Mexico Mining Unit and exploration properties at its Nevada, USA, Mining Unit. The Company has 54,266,706 shares outstanding, no warrants, no long term debt and has returned $108 million back to shareholders since commercial production commenced July 1, 2010. 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 months ended March 31, 2016 and 2015, its financial condition at March 31, 2016 and December 31, 2015 and its cash flows for the three months ended March 31, 2016 and 2015. The summary data for the three months ended March 31, 2016 is unaudited; the summary data for the year ended December 31, 2015 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2015, 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 Operations" 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 BALANCE SHEETS
(U.S. dollars in thousands, except share and per share amounts)
				March 31,				December 31,
				2016				2015
				(Unaudited)
ASSETS
Current assets:
	Cash and cash equivalents			$	10,325			$	12,822
	Gold and silver bullion				3,413				2,988
	Accounts receivable				907				321
	Inventories				9,318				8,753
	IVA taxes receivable				1,331				1,332
	Income tax receivable				3,887				3,794
	Prepaid expenses and other current assets				2,434				2,608
		Total current assets			31,615				32,618
Property, plant and mine development, net					53,073				51,637
Deferred tax assets					20,494				21,064
Investments in equity securities					231				231
Other non-current assets					937				985
	Total assets			$	106,350			$	106,535
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Accounts payable			$	10,901			$	11,600
	Accrued expenses and other current liabilities				2,079				2,140
	Capital lease obligations				696				842
	Mining royalty taxes payable				3				230
	Dividends payable				90				90
		Total current liabilities			13,769				14,902
Capital lease obligations					24				-
Reclamation and remediation liabilities					2,795				2,815
		Total liabilities			16,588				17,717
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: 54,603,104 and 54,266,706 shares issued and outstanding, respectively, at March 31, 2016 and December 31, 2015				55				55
	Additional paid-in capital				96,913				96,766
	Accumulated deficit				(151	)			(948	)
	Treasury stock at cost, 336,398 shares				(5,884	)			(5,884	)
	Accumulated other comprehensive loss				(1,171	)			(1,171	)
		Total shareholders' equity			89,762				88,818
		Total liabilities and shareholders' equity		$	106,350			$	106,535

GOLD RESOURCE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
for the three months ended March 31, 2016 and 2015
(U.S. dollars in thousands, except share and per share amounts)
(Unaudited)
				Three months ended March 31,
				2016			2015
Sales, net				$	17,403		$	28,372
Mine cost of sales:
	Production costs				11,096			12,934
	Depreciation and amortization				2,806			1,392
	Reclamation and remediation				47			23
		Total mine cost of sales			13,949			14,349
Mine gross profit					3,454			14,023
Costs and expenses:
	General and administrative expenses				2,178			2,731
	Exploration expenses				504			1,712
		Total costs and expenses			2,682			4,443
Operating income					772			9,580
Other income (expense), net					706			(504	)
Income before income taxes					1,478			9,076
	Provision for income taxes				681			4,023
Net income				$	797		$	5,053
Net income per common share:
	Basic and diluted			$	0.01		$	0.09
Weighted average shares outstanding:
	Basic and diluted				54,266,706			54,179,369

GOLD RESOURCE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
for the three months ended March 31, 2016 and 2015
(U.S. dollars in thousands)
(Unaudited)
				Three months ended March 31,
				2016				2015
Cash flows from operating activities:
	Net income			$	797			$	5,053
	Adjustments to reconcile net income to net cash from operating activities:
		Deferred income taxes			515				6
		Depreciation, depletion and amortization			2,856				1,457
		Stock-based compensation			418				1,066
		Other operating adjustments			(608	)			286
	Changes in operating assets and liabilities:
		Accounts receivable			(586	)			(6,043	)
		Inventories			(566	)			(724	)
		Prepaid expenses and other current assets			394				(24	)
		Accounts payable and other accrued liabilities			815				1,046
		Mining and income taxes payable/receivable			(331	)			(1,255	)
		Other noncurrent assets			26				-
	Net cash provided by operating activities				3,730				868
Cash flows from investing activities:
		Capital expenditures			(5,687	)			(4,937	)
		Proceeds from the sale of equity investments			163				-
		Other investing activities			2				7
	Net cash used in investing activities				(5,522	)			(4,930	)
Cash flows from financing activities:
		Dividends paid			(271	)			(1,625	)
		Repayment of capital leases			(424	)			(372	)
	Net cash used in financing activities				(695	)			(1,997	)
Effect of exchange rate changes on cash and cash equivalents					(10	)			(38	)
Net decrease in cash and cash equivalents					(2,497	)			(6,097	)
Cash and cash equivalents at beginning of period					12,822				27,541
Cash and cash equivalents at end of period				$	10,325			$	21,444
Supplemental Cash Flow Information
	Interest expense paid			$	8			$	24
	Income and mining taxes paid			$	256			$	5,239

Contacts:
Corporate Development
Greg Patterson
303-320-7708
www.Goldresourcecorp.com