Gold Resource Corporation (NYSE-A:GORO, ETR:GIH) told investors it remains on track to meet its full year 2022 production guidance, despite the miner deliberately slowing production and mine development in its latest third quarter.
The company, which produces metals from its Don David mine in Mexico, said in the three months to September 30 this year, operations and exploration was "deliberately and temporarily" slowed to improve safety issues at the mine in Oaxaca.
That said, it still generated 5,851 ounces of gold, 261,256 ounces of silver and 296 tonnes of copper in the three months compared to 6,933 ounces, 265,829 ounces and 284 tonnes, respectively, in the year earlier quarter.
Total gold-equivalent ounces sold in the quarter came in at 8,042 ounces, compared to 9,165 gold-equivalent ounces in Q3, 2021.
READ: Gold Resource Corporation holds $22M cash balance following robust 3Q metals sales
That led to total net sales of US$23.8 million, down from US$29 million in the third quarter last year.
"The implementation of safety programs has been our top priority in 2021 and 2022 to address ground support and ventilation issues," said Allen Palmiere, CEO of GORO in a statement.
"The disciplined approach had an impact on production volumes, mine development and exploration. With that said, we are still on track to meet our 2022 guidance."
Palmiere said the miner was putting "safety first" at the temporary cost of production and that during the quarter, it had also continued to advance the feasibility study and permitting initiatives at the company's Back Forty Project in Michigan.
The net loss for the quarter was US$9.7 million, down from a profit of US$1.5 million in Q3, 2021, which the company put down to lower metals prices, a higher depreciation expense due to the lower mineral reserve and expenses for the Black Forty asset.
The average realized gold price for the three months was US$1,627 per ounce, compared to US$1,762 per ounce in the year-earlier quarter. Total all-in sustaining cost (AISC) for the quarter was US$1,831 per gold-equivalent ounce, compared to US$1,031 in Q3, 2021.
Working capital was US$28.9 million as of September 30, which is US$0.4 million lower than at the end of 2021, the company noted.
GORO said it plans to invest a total of between US$7 million and US$8 million in underground development and a further US$3.5 million to US$4 million in exploration development for 2022.
Contact the writer at giles@proactiveinvestors.com