Gold Resource Corporation (NYSE-A:GORO, ETR:GIH) has said that in 2022 it sold a total of 30,119 ounces of gold and 1,057,209 ounces of silver for a total of 42,757 gold equivalent ounces.
“Despite global challenges faced this year, such as inflation, and localized challenges such as ground support and ventilation, gold and silver production at the Don David Gold Mine in Mexico still ended the year above guidance,” Allen Palmiere, president and CEO, said in a statement.
During 2022, the company also sold 14,157 tonnes of zinc, 1,348 tonnes of copper, and 5,391 tonnes of lead and for the year ended December 31, 2022, the company reported a net loss of $6.3 million with revenue of $138.7 million and mine gross profit of $29.7 million from operations while a total of $31.3 million was invested in the Don David Gold Mine (DDGM) and Back Forty Project.
READ: Gold Resource Corporation reports positive drill results at DDGM with potential to improve near-to-mid-term mine plan
“We also made excellent strides with our operations, capital, and exploration programs. The results of the Q4 2022 drilling at DDGM are very promising and have confirmed the ongoing 2023 drill program is on the right track to potentially deliver higher grade resources into the near- and mid-term mine plan,” added Palmiere.
“With improved access and ventilation our team can now aggressively continue with the underground infill and expansion drilling to follow-up these positive results. While our grade profile is expected to decline in 2023, we continue to identify and implement productivity improvements. Work continues with the feasibility study to advance the Back Forty Project in Michigan with a deliberate and measured approach. Upon completion, preparation of State of Michigan permits will follow. In both Mexico and Michigan, we are focused on collaborating with local communities to ensure sustainability," he concluded.
2022 Highlights:
Strategic:
- Cash inflow of $14.2 million from operating activities for 2022, which included $18.6 million of income tax payments for tax years 2021 and 2022.
- Distributions to shareholders of $3.5 million in shareholder dividends prior to February 13, 2023, announcement of the suspension of future quarterly dividends to protect the balance sheet and to focus capital resources on exploration and growth opportunities.
- Investments of C$2.4 million in Maritime Resources Corp in exchange for 9.9% of Maritime’s shares in a private placement.
Don David Gold Mine:
- The Don David Gold Mine safety program aims to bolster the overall health and safety culture of employees.
- There were six lost time incidents during 2022. The incidents were thoroughly investigated, and the appropriate actions were taken.
- The full-year lost time injury frequency rate per million hours of 2.5 which is substantially below the 5.7 Camimex (Mexican Chamber of Mines) benchmark.
- Don David Gold Mine total cash costs (after co-product credits) and total all-in sustaining cost per gold equivalent (AuEq) ounce sold were $458 and $788, respectively.
- During the year, exploration continued to focus on infill drilling with encouraging results from the Arista, Three Sisters, and Switchback vein systems. However, the company faced localized ground conditions and ventilation challenges that slowed drift extensions to multiple underground drill stations. Those technical issues have been addressed, and the company commenced step-out drilling in multiple highly prospective areas.
Back Forty Project:
- The feasibility study work for the Back Forty Project in Michigan, USA progressed during 2022. Work related to metallurgy and the economic model will continue with a deliberate and measured approach and is expected to be completed in the first half of 2023.
- Once the feasibility study is completed, the board will evaluate the current economic climate and make a decision on how to move forward with the permitting and construction of the Back Forty Mine.
- The company continues to meet with the community and government agencies to demonstrate the value of this project.
The company said it will host a conference call Friday, March 3, 2023, at 10.00am ET. To join the conference via webcast, interested parties can use the following link.
To join the call via telephone, the following dial-in details can be used:
- Participant Toll Free: +1 (888) 886-7786
- International: +1 (416) 764-8658
- Conference ID: 38298670
Gold Resource Corp is a gold and silver producer, developer, and explorer with its operations centered on the Don David Gold Mine in Oaxaca, Mexico. 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.
Contact the author at jon.hopkins@proactiveinvestors.com