Gold Resource Corporation (NYSE-A:GORO, ETR:GIH), the Mexico-focused producer, said it ended 2021 with a strong cash balance of $33.7 million after having produced and sold 22,644 gold ounces, 1,066,581 silver ounces, 1,420 copper tonnes, 5,999 lead tonnes and 13,553 zinc tonnes during the year.
For the year ended December 31, 2021, the Denver-based gold and silver producer, with its operations focused on the Don David Gold Mine in Oaxaca, Mexico, reported revenue of $125.2 million. Net income was $8 million, with a mine gross profit of $36.7 million from operations.
The company noted that it successfully implemented profit-sharing with its employees. Meanwhile, $3.4 million was reportedly distributed in shareholder dividends during the year, totaling over $119 million in dividend payouts since 2010.
READ: Gold Resource Corp ends 2021 with US$34M in cash; achieves high end of output guidance
Gold Resource highlighted that it invested $25.5 million in its flagship Don David Gold Mine. In a statement, Gold Resource CEO Allen Palmiere said: “Our operations delivered excellent results during a transformative year. We reinvested $6.6 million into exploration and infrastructure improvements at the Don David Gold Mine during the fourth quarter, bringing our year-to-date investment to $25.5 million.”
The company said that it aims to continue unlocking the “upside potential” of its existing infrastructure and large land position around the Don David Gold Mine. It plans to make “significant investments” for infrastructure and exploration in 2022, it added.
The company recently announced encouraging results from its Don David Gold Mine exploration program. Vein structures were confirmed up to 250 meters (m) above the current production area and drilling confirmed the potential for the down-dip extension of the Switchback vein system.
Palmiere said: “Our investment in Mexico is focused on favorably impacting our environment, social and governance programs while creating operational efficiencies and longevity. Construction of the filter press plant and dry stack tailings facilities is now complete. The dry stack facilities will conserve and recirculate water, eliminate risks related to traditional tailings facilities, accelerate reclamation of the open pit mine, and extend the life of the operations.”
He noted the company’s “strong operating cashflow per share and dividend yield” puts the company among the top of its peer group, which is “currently not reflected in our share price.”
Gold Resource also plans to invest “significant capital” into a feasibility study, permitting applications, and exploration at its Michigan, US-based Back Forty project this year. The company completed the acquisition of all the shares of Aquila Resources Inc (TSX:AQA) on December 10 last year, thanks to which it acquired Aquila’s principal asset, the polymetallic (gold, silver, copper, silver, lead and zinc) Back Forty project.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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