Gold Resource Corporation (NYSE-A:GORO, ETR:GIH) posted a $1.5 million in profit in the third quarter, thanks to “significantly higher” gold grades from its Don David Gold Mine in Oaxaca, Mexico.
Don David generated $29 million in revenue on total production of 9,170 gold equivalent ounces.
The positive numbers came despite a temporary shutdown of operations due to the coronavirus (COVID-19) situation in Mexico.
READ: Gold Resource sees increase in 3Q production levels as gold output increases from its Mexico mine complex
In total, Gold Resource produced 5,809 gold ounces and 255,394 silver ounces at a cash cost of $466 per ounce of gold equivalent and all-in sustaining costs of $1,031 per ounce.
Cash flow from operating activities was $5.7 million in 3Q for a total of $21.9 million year-to-date.
The miner had a cash balance at the end of the quarter of $29.5 million.
CEO Allen Palmiere credited Gold Resource’s operations team as it “rose to the challenge” this quarter after a spike in COVID-19 cases led to a temporary ramp down of operations in mid-August and early September.
“Our investment in Mexico is focused on favorably impacting our environment, social and governance programs while creating operational efficiencies and longevity,” Palmiere said in a statement.
“While I've said this before it bears repeating, our strong operating cash flow per share and dividend yield puts us among the top of our peer group which is currently not reflected in our share price."
Palmiere also highlighted the $7.7 million investment into exploration and infrastructure improvements at the Don David Gold Mine, bringing its year-to-date investment to $18.9 million.
Construction of the water filtration plant and dry stack tailings facilities is 95% complete, according to the CEO. The dry stack facilities will conserve and recirculate water, eliminate risks related to traditional tailings facilities, accelerate reclamation of certain areas of the open-pit mine, and extend the life of the operations.
Gold Resource is also in the process of closing its acquisition of Aquila Resources Inc (TSX:AQA), which is expected to be finalized in late November.
Contact Angela at angela@proactiveinvestors.com
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