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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]

Operational Results - Total tonnes processed in Q2 2024 were 93,687[20], with a year-to-date (YTD) total of 192,576[20] - Gold ounces sold in Q2 2024 were 2,724[20], and YTD 2024 were 6,281[20] - Silver ounces sold in Q2 2024 reached 234,560[20], with a YTD figure of 451,095[20] - Copper tonnes sold were 197 in Q2 2024 and 461 YTD[20] - Lead tonnes sold were 491 in Q2 2024 and 1,158 YTD[20] - Zinc tonnes sold were 1,771 in Q2 2024 and 3,453 YTD[20] Financial Performance - The company's cash balance as of June 30, 2024, was $53 million[23] - Cash provided by operating activities totaled $14 million[23] - Net sales for the six months ended June 30, 2024, were $395 million[23] - The net loss for the six months ended June 30, 2024, was $(318) million[23] - Total cash costs per gold equivalent (AuEq) ounce were $1,950/oz for the three months ended June 30, 2024, and $1,789/oz for the six months ended June 30, 2024[23] - Total all-in sustaining cost (AISC) per AuEq ounce was $2,661/oz for the three months ended June 30, 2024, and $2,452/oz for the six months ended June 30, 2024[23] Investment and Exploration - Sustaining investments totaled $2221 thousand in Q2 2024 and $4296 thousand YTD, with a full-year guidance of $8800-$11000 thousand[21] - Growth investments amounted to $326 thousand in Q2 2024 and $1430 thousand YTD, with a full-year guidance of $3200-$5200 thousand[21] - The company drilled 30 exploration drill holes totaling over 2,652 meters and 16 infill drill holes totaling 5,949 meters at DDGM[17]

[Gold Resource Corporation H1 2025 Drilling Results and Operational Improvements](index=1&type=section&id=Gold%20Resource%20Corporation%20H1%202025%20Report) The report details H1 2025 high-grade drilling results, operational enhancements, and future exploration plans [Highlights](index=1&type=section&id=Highlights) The company reports high-grade drill results and outlines key operational improvements to enhance production and efficiency - Drill results from the Three Sisters Vein System show good width and grades, suggesting potentially **higher Net Smelter Return (NSR) values**[5](index=5&type=chunk) - Engaged experienced underground mining contractor, Cominvi Servicios S.A. de C.V., to accelerate development into the Three Sisters vein systems, completing **over 1,350 meters** of development since May[5](index=5&type=chunk) - Operational improvements include adopting **cut-and-fill mining**, ordering a third dry stack filter press, replacing older fleet, and optimizing the process plant to improve recoveries[5](index=5&type=chunk) [2025 Drilling Program and Results](index=3&type=section&id=2025%20Drilling%20Program%20and%20Results) The H1 2025 drilling program focused on the Three Sisters and Arista systems, confirming high-grade mineralization continuity H1 2025 Drilling Program Summary | Metric | Value | | :--- | :--- | | Total Drill Holes | 51 | | Total Meters Drilled | 6,615 m | | Primary Focus | Three Sisters & Arista vein systems | - The drilling program has increased confidence in the Three Sisters system, reinforcing its role as a **key contributor to future mine production** and a potential third major mineralized system for the mine[3](index=3&type=chunk)[7](index=7&type=chunk) - The company plans to initiate additional exploration development in H2 2025 to support further **infill and expansion drilling**, particularly northwest of the current Three Sisters – Gloria zone[8](index=8&type=chunk) [Three Sisters and Gloria Vein Systems](index=4&type=section&id=Three%20Sisters%20and%20Gloria%20Vein%20Systems) Focused drilling refined the geologic model, confirmed mineralization over a 350-meter strike, and identified two new veins Three Sisters System H1 2025 Drilling Focus | Metric | Value | | :--- | :--- | | Drill Holes | 36 (out of 51 total) | | Meters Drilled | 5,017 m | | Confirmed Strike Length | ~350 m | | New Veins Identified | 2 (total now 12) | - The vein systems remain open to the northwest, up-dip, and at depth, with **additional exploration planned for Q3** to expand drilling beyond current resource limits[14](index=14&type=chunk) [Selected Drill Result Highlights](index=3&type=section&id=Selected%20Drill%20Result%20Highlights) Drilling in the Three Sisters system yielded significant high-grade intercepts, reinforcing the system's economic potential H1 2025 Selected High-Grade Drill Intercepts | Hole No. | Vein | NSR ($/t) | Est. True Width (m) | AuEq (g/t) | | :--- | :--- | :--- | :--- | :--- | | 525011 | Sadie 1 | $840 | 4.97 | 12.67 | | 525018 | Sandy 5 | $1,665 | 4.83 | 23.73 | | 525020 | Sandy 5 | $1,365 | 3.52 | 19.59 | | 525040 | Sandy 1 | $1,118 | 3.53 | 16.03 | [Operations Update](index=8&type=section&id=Operations%20Update) The company is implementing operational advancements including accelerated development, new mining methods, and equipment upgrades [Mine Development – Three Sisters](index=8&type=section&id=Mine%20Development%20%E2%80%93%20Three%20Sisters) Development was accelerated via a contractor, completing over 1,350 meters and accessing the vein system on three levels - Engaged contractor Cominvi Servicios S.A. de C.V. in May 2025 to accelerate development, completing **over 1,350 meters** of ramps and drifts by the end of Q2 2025[21](index=21&type=chunk) - Due to complex geometry, the mine has implemented **cut-and-fill mining methods** to reduce dilution and optimize resource recovery in the Three Sisters system[22](index=22&type=chunk) [Additional Improvements](index=8&type=section&id=Additional%20Improvements) Improvements include replacing aging equipment, adopting cut-and-fill mining, and optimizing the mill's process flow - Purchasing used equipment in good repair to replace the old fleet, aiming to **reduce significant maintenance requirements and low availability**[23](index=23&type=chunk) - Shifting from long-hole stoping to **cut-and-fill mining** in certain areas to minimize dilution and maintain higher grades in narrow veins[24](index=24&type=chunk) - Reviewing the mill's process flow to fine-tune reagent use has **already improved recoveries**, and a third filter press has been ordered to improve throughput[25](index=25&type=chunk) [Detailed Drill Results Tables](index=9&type=section&id=Select%202025%20Definition%20and%20Grade-Control%20Drill%20Results) This section provides comprehensive assay results from the H1 2025 drilling program for the Three Sisters and Arista systems - The report includes detailed tables of drill results from **51 holes** in the Three Sisters and Arista Vein Systems[26](index=26&type=chunk)[30](index=30&type=chunk) [Ancillary Information](index=13&type=section&id=Ancillary%20Information) This section contains corporate disclosures, including QA/QC procedures, conference call details, and forward-looking statements [Quality Assurance / Quality Control](index=13&type=section&id=Quality%20Assurance%20%2F%20Quality%20Control) The company maintains a rigorous QA/QC program with verifiable chain of custody and independent lab verification - Samples were assayed at the DDGM mine lab and the independent, **ISO-accredited ALS Global lab** in Vancouver[31](index=31&type=chunk) - The QA/QC program includes verifiable chain of custody, insertion of certified reference materials and blanks, and duplicate check assays, with **no material discrepancies identified**[31](index=31&type=chunk)[33](index=33&type=chunk) [Second Quarter 2025 Conference Call](index=13&type=section&id=Second%20Quarter%202025%20Conference%20Call) The company will host its Q2 2025 conference call on August 6, 2025, at 12:00 p,m, Eastern Time Conference Call Details | Item | Detail | | :--- | :--- | | Date | Wednesday, August 6, 2025 | | Time | 12:00 p.m. Eastern Time | | Toll Free | +1 (800) 717-1738 | | International | +1 (289) 514-5100 | | Conference ID | 49273 |