id=smartlink&url=http://www.sec.gov&esheet=54368992&newsitemid=20251203526388&lan=en- US&anchor=www.sec.gov&index=2&md5=51f25787114d50d9ed9a061696a783b2)*. DENVER--([BUSINESS WIRE](https://www.businesswire.com))--**Gold Resource Corporation (NYSE American: GORO)**(the "**Company**,†"**we**,†"**our**,†or "**GRC**†) is pleased to report strong production results for the past two weeks, as mining advances into the high-grade Three Sisters area at the Don David Gold Mine in Oaxaca, Mexico."The production valu ...

Core Insights - Gold Resource Corporation (NYSE:GORO) is identified as a strong investment opportunity in the silver mining sector, with a reaffirmed Buy rating and a price target of $1.25 per share by H.C. Wainwright [1][2] Financial Performance - In Q3 2025, Gold Resource reported a net loss of $4.7 million ($0.03 per share), which was slightly below analyst expectations due to reduced tons milled and lower gold equivalent ounces sold compared to the previous year [2] - Despite the net loss, total metal production increased year-over-year, with gold production rising to 1,646 ounces from 944 ounces and silver production increasing to 453,057 ounces from 194,525 ounces [2] Operational Highlights - The company's operations are primarily based at the Don David Gold Mine in Oaxaca, Mexico, which is the main source of its gold and silver production [3] - The Arista underground polymetallic deposit contributes to the production of gold and silver doré, as well as copper, lead, and zinc concentrates containing silver [3]

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Financial Data and Key Metrics Changes - The company concluded Q3 2025 with a strong cash position of over $9 million, reflecting successful capital raising efforts and disciplined cash management [9] - Mining gross profit was recorded during the quarter, indicating meaningful progress towards profitability [10] - Cash cost per gold equivalent ounce and all-in sustaining cost per gold equivalent ounce remain above long-term targets, but a downward trend was observed during Q3 [10] Business Line Data and Key Metrics Changes - Production ramped up significantly towards the end of Q3, with multiple shipments completed in late September [9] - The introduction of cut-and-fill mining methods has improved profitability by reducing dilution and enhancing ore grades delivered to the plant [6][10] - Metallurgical recoveries across all metals exceeded prior quarters, contributing to improved financial performance [7][10] Market Data and Key Metrics Changes - The company is benefiting from record-high metal prices, particularly in silver, which has positively impacted cash flow and overall financial performance [6][10] - The precious metal content in mined material has increased, further contributing to financial improvements [10] Company Strategy and Development Direction - The company is focused on executing strategic plans laid out earlier in the year, with a particular emphasis on mine development and exploration drilling [8][12] - Significant capital investments have been made in underground development and exploration, particularly in the Three Sisters area, to support long-term growth [11] - The Bat 40 project is now able to advance towards a production decision due to improvements at the mine [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the turnaround at operations in Mexico, with tangible benefits from strategic plans becoming evident [4][12] - The company anticipates that between 40% and 50% of total production will come from the Three Sisters area as they head into 2026 [17] - Management expects continued improvement in production volumes and profitability through the remainder of the year and into next [12][40] Other Important Information - The company engaged an external consultant to conduct a comprehensive safety assessment and audit following several lost-time injury incidents [7] - The contractor's progress in mine development has validated expectations, revealing good vein widths and high-grade mineralization [5][6] Q&A Session Summary Question: Development work at Three Sisters and future throughput targets - Management anticipates that between 40% and 50% of total production will come from Three Sisters, with at least 40% expected in Q1 2026 [17][18] Question: Thoughts on hedging to lock in higher credits - Management is actively considering hedging options but has been reticent in the past; they are looking at collars primarily [19] Question: Details on received equipment and uptime comparison - Approximately $4 million has been spent on a blend of new and used equipment, with uptime now running north of 80% [28][33] Question: Impact of cut-and-fill mining on cost per ton - The net result of cut-and-fill mining is an increase in revenue per ton mined, with a significant reduction in dilution and improved recoveries [35][36]

Operational Highlights - Total tonnes processed in Q3 2025 were 65,131, with a daily processing rate of 1,124 tonnes[28] - Year-to-date 2025, the total tonnes processed reached 185,516, with a daily processing rate of 1,144 tonnes[28] - Gold ounces sold in Q3 2025 amounted to 1,422, and silver ounces sold were 417,710[28] - Year-to-date 2025, gold ounces sold totaled 3,159, and silver ounces sold reached 798,395[28] - Gold equivalent ounces sold in Q3 2025 were 6,298, and year-to-date 2025, they totaled 12,150[28] Financial Performance - The company's cash balance as of September 30, 2025, was $9.8 million[29] - Net sales for Q3 2025 were $24.9 million, and for the nine months ended September 30, 2025, net sales were $48.5 million[29] - The net loss for Q3 2025 was $(4.7) million, and for the nine months ended September 30, 2025, the net loss was $(24.5) million[29] - Mining gross profit for Q3 2025 was $6.2 million, while the mining gross profit for the nine months ended September 30, 2025, was $0.3 million[29] - Total cash costs per gold equivalent ounce for Q3 2025 were $2,116/oz, and for the nine months ended September 30, 2025, they were $2,594/oz[29] - Total all-in sustaining costs per gold equivalent ounce for Q3 2025 were $2,983/oz, and for the nine months ended September 30, 2025, they were $3,542/oz[29] Investment and Capital Allocation - Total capital and exploration investment for Q3 2025 was $7.705 million, and for the year-to-date 2025 period, it was $14.859 million[33] - Sustaining investments in Q3 2025 totaled $3.416 million, and year-to-date 2025, they amounted to $6.063 million[33] - Growth investments in Q3 2025 were $4.289 million, and year-to-date 2025, they reached $8.796 million[33]

Production and Sales - In Q3 2025, Gold Resource Corporation produced and sold a total of 6,298 gold equivalent ounces, consisting of 1,422 gold ounces and 417,710 silver ounces, with average sales prices of $3,546 per gold ounce and $41.39 per silver ounce[6]. - The average grade of gold produced in Q3 2025 was 1.11 g/t, while silver grades increased to 250 g/t[13]. Financial Performance - The company reported a net loss of $4.7 million, or $0.03 per share, primarily due to lower production and sales volumes[11]. - Year-to-date net losses reached $24.5 million, raising concerns about the company's ability to continue as a going concern[10]. - The total cash cost after co-product credits for the quarter was $2,116 per gold equivalent ounce, while the all-in sustaining cost was $2,983 per gold equivalent ounce[11]. Capital and Investments - As of September 30, 2025, the company had $12.8 million in working capital and $9.8 million in cash and cash equivalents[6]. - The company raised $11.4 million through a registered direct offering in September 2025, selling 25,315,954 shares at $0.45 per share[9]. - Sustaining investments for the nine months ended September 30, 2025, totaled $6.063 million, while growth investments amounted to $8.795 million[12]. Operational Strategy - The company is focusing on improving cash flow and has engaged a third-party contract miner to address equipment availability issues[7]. - The company anticipates positive operating income for the remaining months of 2025 based on improvements in the Three Sisters area and other zones[8].

Core Insights - Gold Resource Corporation reported a total production of 6,298 gold equivalent ounces in Q3 2025, consisting of 1,422 gold ounces and 417,710 silver ounces, with average sales prices of $3,546 per gold ounce and $41.39 per silver ounce [5][10] - The company is experiencing a turnaround at the Don David Gold Mine, with improvements in equipment availability and mining methods leading to increased production [2][8] - The company had a net loss of $4.7 million for the quarter, primarily due to lower production and sales, but anticipates positive operating income in the remaining months of 2025 [5][10] Production and Operations - The Don David Gold Mine produced 6,298 gold equivalent ounces in Q3 2025, with a breakdown of 1,422 gold ounces and 417,710 silver ounces [5] - The average grades for gold and silver were 1.11 g/t and 250 g/t respectively during Q3 2025, showing an increase in silver grades compared to previous quarters [12] - The company has transitioned to a cut-and-fill mining method in certain areas, which has significantly reduced dilution and improved production efficiency [2][5] Financial Performance - The company reported a net loss of $4.7 million, or $0.03 per share, for Q3 2025, attributed to lower tonnes produced and fewer ounces sold [5][10] - As of September 30, 2025, the company had $12.8 million in working capital and $9.8 million in cash and cash equivalents [5] - The total cash cost after co-product credits for the quarter was $2,116 per gold equivalent ounce, while the all-in sustaining cost was $2,983 per gold equivalent ounce [5] Capital and Investments - The company raised approximately $11.4 million through a registered direct offering in September 2025, which will be used to improve its financial position and fund ongoing operations [9][10] - For the nine months ended September 30, 2025, total capital and exploration investments amounted to $14.86 million, compared to $9.94 million in the same period of 2024 [11][12] - Sustaining investments for underground development were $2.62 million, while growth investments totaled $8.8 million, indicating a focus on both maintaining and expanding operations [11][12] Future Outlook - The company believes the mine has the potential to generate positive cash flow based on new discoveries and improvements in production methods [8] - The company is in the process of developing access to new areas for exploration and production, with plans for future drilling once financial conditions improve [7][10] - The management anticipates continued progress in production and financial performance for the remainder of 2025 [2][8]

Production and Sales - In Q3 2025, the Company produced and sold a total of 6,298 gold equivalent ounces, consisting of 1,422 gold ounces and 417,710 silver ounces, with average sales prices of $3,546 and $41.39 per ounce, respectively[12]. - The Company faced significant challenges with equipment availability and mechanical issues, impacting production levels[11]. - The Company is in the process of developing access to new areas for potential production, particularly in the Three Sisters area[14]. Financial Performance - The Company reported a net loss of $4.7 million, or $0.03 per share, primarily due to lower tonnes produced and fewer ounces sold[12]. - Year-to-date net losses totaled $24.5 million, raising concerns about the Company's ability to continue as a going concern[16]. - Total cash cost after co-product credits for the quarter was $2,116 per AuEq ounce, while total all-in sustaining cost (AISC) was $2,983 per AuEq ounce[12]. Capital and Funding - As of September 30, 2025, the Company had $12.8 million in working capital and $9.8 million in cash and cash equivalents[12]. - The Company closed a $11.4 million registered direct offering on September 8, 2025, selling 25,315,954 shares at $0.45 per share[15]. - The Company raised approximately $8.6 million through its At-The-Market Offering (ATM) Program during the nine months ended September 30, 2025[15]. Future Outlook - The Company expects positive operating income for the remaining months of 2025 based on improvements in production and cash flow[14].

Core Points - Gold Resource Corporation will host a conference call on November 5, 2025, at 12:00 p.m. Eastern Time to discuss its financial results and operational updates [1][2] - The company is focused on its Don David Gold Mine in Oaxaca, Mexico, and aims to unlock the potential of its existing infrastructure and land position [3] Financial Offering - Gold Resource Corporation is pursuing a registered direct offering for the sale of up to 25,315,960 shares at a price of $0.45 per share, aiming for estimated gross proceeds of approximately $11.4 million [5] Operational Updates - The company reported lower production in the second quarter of 2025 but is beginning to see improvements from operational efforts [6] - Highlights from the 2025 underground drilling campaign at the Don David Gold Mine indicate consistent results from the new Three Sisters Vein System, suggesting potentially higher Net Smelter Return values [7]

Financial Data and Key Metrics Changes - The company faced production constraints due to limited availability of aging mobile mine equipment and insufficient mining phases, leading to a decline in production levels for the first half of 2025 [5][6] - Despite challenges, the company managed to secure funding through a private placement, significant income tax refunds, and a loan, which will support its operational plans [6] Business Line Data and Key Metrics Changes - The company is focusing on infill and exploration drilling near known resources, with significant success reported in the Three Sisters vein system, which is expected to contribute 50% of production by year-end [7][11] - A transition to a cut and fill mining method is underway, which has reduced dilution from 40% to 17%, leading to lower mining and milling costs while maintaining metal recovery [12] Market Data and Key Metrics Changes - The company is acquiring used equipment to replace its aging mobile mining fleet, which is critical for improving operational efficiency [13] - A third dry stack filter press has been ordered to expand processing capacity, which is expected to enhance metal recovery and profitability [15] Company Strategy and Development Direction - The company is implementing a controlled strategy focused on enhancing production efficiency, improving processing capabilities, and exploring new resources [17] - The acceleration of the Three Sisters project and the arrival of newer equipment are key developments positioning the company strongly for future growth [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2024 and early 2025 but expressed confidence in the company's ability to execute its plans successfully [5][17] - The company believes that the Don David mine will become a significant cash generator again, supported by ongoing enhancements and exploration success [17] Other Important Information - The company is conducting a comprehensive analysis of reagent usage and process flow within the processing plant, leading to improved metal recovery and payability [16] Q&A Session Summary - There were no questions during the Q&A session, indicating that the management's explanations were clear and comprehensive [18][19]