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 |

[Second Quarter 2025 Summary](index=4&type=section&id=Second%20Quarter%202025%20Summary) Operational challenges at Don David Gold Mine led to lower production, a $11.5 million net loss, and going concern doubt Q2 2025 Key Metrics | Metric | Value | | :--- | :--- | | Gold Equivalent (AuEq) Ounces Sold | 2,420 oz | | Net Loss | $11.5 million | | Net Loss per Share | $0.09 | | Cash Position (as of June 30, 2025) | $12.7 million | | Working Capital (as of June 30, 2025) | $10.4 million | | Total Cash Cost per AuEq ounce | $4,017 | | All-in Sustaining Cost (AISC) per AuEq ounce | $5,458 | - Production was significantly impacted by the reduced availability of critical mining equipment due to an aging fleet and a shortage of alternative ore production headings[9](index=9&type=chunk)[10](index=10&type=chunk) - The company executed a loan agreement for **$6.28 million** for working capital and issued a warrant for the purchase of **1,500,000 shares** at an exercise price of **$0.65 per share**[10](index=10&type=chunk)[16](index=16&type=chunk) - The company's inability to achieve production estimates and continued operating losses have created substantial doubt about its ability to continue as a going concern[14](index=14&type=chunk) [Part I - FINANCIAL INFORMATION](index=5&type=section&id=Part%20I%20-%20FINANCIAL%20INFORMATION) This section presents unaudited interim financial statements, MD&A, market risk disclosures, and internal control assessments [Item 1. Condensed Consolidated Interim Financial Statements and Notes](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Interim%20Financial%20Statements%20and%20Notes) This section presents unaudited interim financial statements and notes, detailing restatements and going concern uncertainty [Condensed Consolidated Interim Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Interim%20Balance%20Sheets) Total assets were $155.1 million, liabilities $136.0 million, with cash increasing to $12.7 million from financing activities Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | **$26,278** | **$16,580** | | Cash and cash equivalents | $12,673 | $1,628 | | **Total Assets** | **$155,142** | **$145,874** | | **Total Current Liabilities** | **$15,916** | **$14,484** | | **Total Liabilities** | **$135,984** | **$118,591** | | **Total Shareholders' Equity** | **$19,158** | **$27,283** | [Condensed Consolidated Interim Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Operations) Q2 2025 net loss was $11.5 million on $11.2 million sales, an improvement from restated Q2 2024 due to a tax provision Statements of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 (Restated) | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | :--- | :--- | | Sales, net | $11,228 | $20,782 | $23,582 | $39,484 | | Mine gross loss | $(4,420) | $(3,592) | $(5,872) | $(5,761) | | Net loss | $(11,486) | $(27,005) | $(19,805) | $(32,682) | | Net loss per share | $(0.09) | $(0.30) | $(0.16) | $(0.36) | [Condensed Consolidated Interim Statements of Changes in Shareholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity decreased to $19.2 million due to a $19.8 million net loss, partially offset by capital raises - For the six months ended June 30, 2025, the company raised approximately **$8.6 million** from its ATM Program, **$2.5 million** from a registered direct offering, and recorded **$0.4 million** related to warrants issued[32](index=32&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) [Condensed Consolidated Interim Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) Net cash provided by financing activities was $17.1 million, leading to an $11.0 million net cash increase for the period Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(2,135) | $1,419 | | Net cash used in investing activities | $(3,865) | $(4,008) | | Net cash provided by financing activities | $17,116 | $1,802 | | **Net increase (decrease) in cash** | **$11,045** | **$(912)** | [Notes to the Condensed Consolidated Interim Financial Statements](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) Notes detail restated 2024 financials, going concern uncertainty, a new $6.28 million loan, and segment reporting - Financial statements for the three and six months ended June 30, 2024 were restated due to errors in the application of U.S. GAAP related to interest accretion on liabilities associated with the Osisko Stream Agreements[43](index=43&type=chunk)[44](index=44&type=chunk) - The company's low production, net loss of **$19.8 million**, and net cash used in operations of **$2.1 million** for the first six months of 2025 raise substantial doubt about its ability to continue as a going concern[54](index=54&type=chunk) - On June 26, 2025, the company executed a loan agreement for **$6.28 million**, bearing interest at SOFR + **5.0%**, with principal and interest due in December 2026[90](index=90&type=chunk) - For the six months ended June 30, 2025, the Oaxaca, Mexico operating segment generated all **$23.6 million** of the company's net sales but recorded a loss before income taxes of **$7.9 million**[137](index=137&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A details Q2 2025 operational and financial challenges, including production declines, increased costs, and liquidity concerns [Overview & Exploration Update](index=46&type=section&id=Overview%20%26%20Exploration%20Update) DDGM faced production challenges due to aging equipment, leading to contract miner engagement, while exploration remains suspended - DDGM continued to experience production challenges due to limited equipment availability, stemming from aging machinery and a lack of spare parts[147](index=147&type=chunk) - A third-party contract miner was engaged during the second quarter to advance production development in the Three Sisters system[148](index=148&type=chunk) - The exploration drill program remained suspended during Q2 2025 due to cash flow shortages[155](index=155&type=chunk) [Results of Operations](index=52&type=section&id=Results%20of%20Operations) Q2 2025 saw significant declines in tonnes milled and gold production, resulting in a 46% drop in net sales and higher AISC Production Comparison - Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Tonnes Milled | 63,479 | 93,687 | -32% | | Gold Production (oz) | 758 | 2,947 | -74% | | Silver Production (oz) | 196,435 | 263,023 | -25% | Financial Comparison - Q2 2025 vs Q2 2024 (in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $11,228 | $20,782 | -46% | | Total Cost of Sales | $15,648 | $24,374 | -36% | | Mine Gross Loss | $(4,420) | $(3,592) | +22% | Non-GAAP Cost Comparison per AuEq oz Sold - Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total cash cost after co-product credits | $4,017 | $1,950 | | Total consolidated all-in sustaining cost (AISC) | $5,458 | $2,652 | [Liquidity and Capital Resources](index=73&type=section&id=Liquidity%20and%20Capital%20Resources) Working capital improved to $10.4 million due to $21.3 million in H1 2025 capital raises, but going concern doubt persists - Working capital increased to **$10.4 million** as of June 30, 2025, a **395%** increase from **$2.1 million** at December 31, 2024, mainly due to an **$11.0 million** increase in cash from financing activities[237](index=237&type=chunk) - The company raised a total of **$21.3 million** in the first six months of 2025 through its ATM program, a direct offering, a tax refund, and a loan[249](index=249&type=chunk) - Management estimates it will require approximately **$7.0 million** for mining equipment and mill upgrades, plus an additional **$8.0 million** in working capital over the next 12 months[247](index=247&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=79&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from commodity price fluctuations, foreign currency exchange rates, and provisional sales - The company's primary market risks are changes in commodity prices for gold, silver, copper, lead, and zinc, as well as foreign currency exchange rates, particularly the Mexican peso[261](index=261&type=chunk)[262](index=262&type=chunk)[267](index=267&type=chunk) - The company does not currently use derivative financial instruments to manage market risk but may consider them in the future[261](index=261&type=chunk) [Item 4. Controls and Procedures](index=81&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were ineffective as of June 30, 2025, due to a material weakness in accounting for complex transactions - The CEO and CFO concluded that disclosure controls and procedures were not effective as of June 30, 2025[274](index=274&type=chunk) - The ineffectiveness is due to a material weakness in internal control over financial reporting related to the accounting for complex transactions[275](index=275&type=chunk) - A remediation plan is being implemented, which includes consulting with outside third-party accounting experts for non-routine or complex transactions[276](index=276&type=chunk)[281](index=281&type=chunk) [Part II - OTHER INFORMATION](index=60&type=section&id=Part%20II%20-%20OTHER%20INFORMATION) This section details legal proceedings, new risk factors, unregistered equity sales, and other required disclosures [Item 1. Legal Proceedings](index=60&type=section&id=Item%201.%20Legal%20Proceedings) A local community filed an injunction in 2020 seeking cancellation of DDGM concession titles, with no final ruling yet - In February 2020, a local Ejido community filed an injunction against the Mexican federal government seeking the cancellation of several DDGM concession titles, but the lawsuit has not progressed to a final ruling[279](index=279&type=chunk) [Item 1A. Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor highlights potential dilution from 1,500,000 warrants issued in June 2025, affecting stock price - A new risk factor was disclosed concerning the **1,500,000 warrants** issued in June 2025, which could result in dilution to existing stockholders and may adversely affect the stock's market price[284](index=284&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In June 2025, the company issued a warrant for 1,500,000 shares at $0.65 per share as part of a $6.28 million loan - On June 26, 2025, the company issued a common stock purchase warrant for up to **1,500,000 shares** at an exercise price of **$0.65 per share** in connection with a loan agreement, constituting an unregistered sale of equity securities[285](index=285&type=chunk) [Item 3. Defaults upon Senior Securities](index=61&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) None reported - None[286](index=286&type=chunk) [Item 4. Mine Safety Disclosures](index=61&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable as the Michigan exploration project is not yet subject to MSHA jurisdiction - Not applicable[287](index=287&type=chunk) [Item 5. Other Information](index=61&type=section&id=Item%205.%20Other%20Information) No director or Section 16 officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the quarter - No director or Section 16 officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the quarter[288](index=288&type=chunk) [Item 6. Exhibits](index=62&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including the new loan agreement and required certifications - Lists all exhibits filed with the report, including the Loan Agreement dated June 26, 2025, and certifications by the CEO and CFO[292](index=292&type=chunk)

Key Points - The article highlights significant stock movements in the Hong Kong and US markets, with various companies experiencing notable gains and losses due to recent developments and announcements [1][2][3][4][5] Hong Kong Market Highlights - China Rare Earth Holdings (03788) surged nearly 20%, with a year-to-date increase of 320%, as the company proposed a spin-off of its gold segment for independent listing on the Hong Kong Stock Exchange [1] - Innovent Biologics (09969) rose nearly 4% after announcing the clinical approval of its new ADC innovative drug ICP-B794 [1] - North Sea Kangcheng - B (01228) increased over 50%, with its stock price doubling in three days, marking it as a rare disease stock in the Hong Kong market [1] - Hong Kong Travel (00308) saw a rise of over 24%, achieving a year-to-date stock price doubling, driven by market speculation on stablecoin cross-border payment scenarios [1] - CSPC Pharmaceutical Group (01093) gained nearly 3% after receiving drug registration approval for Mesalazine enteric-coated tablets, enhancing its product line in the immune system treatment sector [1] - Ruian Real Estate (00272) rose over 4%, with a cumulative contract property sales amount for the first six months increasing by 457% year-on-year [1] - Cornerstone Pharmaceuticals - B (02616) increased over 3%, planning to raise HKD 467 million for clinical research on CS2009 [1] - Q Technology (01478) rose over 7%, with mobile camera module sales of 32.648 million units in June, a year-on-year increase of 1.5% [1] - Dekang Agriculture and Animal Husbandry (02419) increased by 6%, with a new cycle logic continuing to strengthen, and Tianfeng Securities set a target price of HKD 154 [1] - Contemporary Amperex Technology (03750) rose over 3%, reaching a new high since its listing, following a deepened strategic cooperation agreement with Geely Automobile [2] - Gaming stocks continued to rise, with Wynn Macau (01128) up 6.49%, New World Development (00200) up 6.15%, and others showing similar gains [2] - Gold stocks faced declines, with Golden Resources (GORO.US) dropping nearly 10% and others following suit [4] US Market Highlights - Stablecoin concept stocks continued to rise, with Tiger Brokers (TIGR.US) increasing over 8% [4] - Trump Media & Technology Group (DJT.US) rose over 2% as the company seeks SEC approval for a blue-chip cryptocurrency ETF [4] - Wolfspeed (WOLF.US) continued to rise, with stock prices increasing over 9% [4] - Intel (INTC.US) rose over 7% after announcing company-wide layoffs [4] - JD.com (JD.US) increased over 2% as it launched its "Double Hundred Plan" for its delivery service [4]

Production and Sales - In Q1 2025, the company produced and sold a total of 3,394 gold equivalent ounces, including 859 gold ounces and 230,320 silver ounces, at average sales prices of $2,956 and $32.54 per ounce, respectively[13]. - Mechanical issues at the mill and aging mining equipment have significantly impacted production estimates, leading to a current inability to achieve production targets[11]. - The company has identified additional step-out targets for future drilling at the Three Sisters and Arista vein systems, with exploration drilling expected to resume once working capital improves[13]. Financial Performance - The net loss for the quarter was $8.3 million, or $0.07 per share, primarily due to lower production and decreased net sales[13]. - Total cash cost after co-product credits for the quarter was $2,494 per AuEq ounce, while the all-in sustaining cost (AISC) was $3,252 per AuEq ounce[13]. - The company has $6.2 million in working capital and $4.9 million in cash as of March 31, 2025[13]. - A tax refund of 79.6 million pesos (approximately $4.0 million) was received on May 7, 2025, from overpaid taxes in 2023[17]. Capital Requirements and Future Operations - The company requires approximately $7.0 million for additional mining equipment and mill upgrades, and an estimated $8.0 million in working capital over the next 12 months for initial development[15][16]. - If the company cannot secure additional capital and develop new mining areas, continued operation of the mine may not be feasible beyond Q3 2025[18]. Currency Exposure - Approximately 50% to 60% of the company's expenses are paid in currencies other than the U.S. dollar, exposing it to foreign currency exchange rate fluctuations[220].

Financial Data and Key Metrics Changes - 2024 was a challenging year for the company, with a cash balance decrease of $4.7 million, attributed to exploration and overhead costs [23][20] - The company managed to cover operational costs despite lower production levels [24] Business Line Data and Key Metrics Changes - The introduction of the Three Sisters system is expected to improve mining efficiency and ore quality, with higher grades projected compared to existing areas [8][10] - The company plans to increase daily production from the current levels to 1,300 tons and eventually to 1,500 tons [13][18] Market Data and Key Metrics Changes - The company is currently negotiating with a contractor to enhance productivity and is evaluating funding sources to support operational improvements [11][13] Company Strategy and Development Direction - The company is focusing on exploration to increase reserves and has successfully discovered the Three Sisters system, which is expected to lower mining costs and improve profitability [8][10] - Plans are in place to mobilize a contractor in Q2 and to have new equipment operational by Q3, aiming to be cash positive by the end of Q3 [14][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the difficulties faced in 2024, including natural disasters and equipment constraints, but expressed confidence in the path forward with the Three Sisters development [6][25] - The company aims to restore profitability and shareholder value through planned operational improvements and increased production [25][74] Other Important Information - The company celebrated a milestone of one year without a lost time injury, reflecting a commitment to workplace safety [15] - A significant restatement of the BAC 40 project gold and silver stream liabilities was noted, which did not affect the company's cash position [21][22] Q&A Session Summary Question: Development cadence for the Three Sisters system - Management confirmed that they have already intersected the first vein structure and expect to ramp up production significantly by early next year [31][33] Question: Breakdown of the $8 million development capital - Development costs will be heavily weighted towards Q2 and Q3, with a total development budget exceeding $20 million for the year [36][37] Question: Long-term cost reduction strategies - Management discussed the contractor's role in increasing volume and reducing unit costs through fixed cost absorption and acquiring a new mining fleet to improve mechanical availability [43][44] Question: Dependence on buyers and insider buying - Management clarified that current buyers are not located in Asia and addressed concerns regarding insider buying, emphasizing the need for stability before executives can purchase shares [58][66] Question: Executive compensation tied to performance - Management confirmed that executive compensation includes performance-based incentives, but noted that there have been no awards in recent years due to the company's challenges [69]

Production and Sales - Gold Resource Corporation produced and sold a total of 18,580 gold equivalent ounces in 2024, comprising 8,598 gold ounces and 817,333 silver ounces, with average prices of $2,354 and $28.75 per ounce respectively[11]. - Gold Resource Corporation focuses on gold and silver production, with operations centered on the Don David Gold Mine in Oaxaca, Mexico[19]. Financial Performance - The company reported a cash and cash equivalent balance of $1.6 million as of December 31, 2024, a decrease of $4.6 million from the previous year, primarily due to capital investments of $6.4 million and operating cash outflows[11]. - Working capital decreased by 86% to $2.1 million from $15.2 million in 2023, driven by a decline in cash balance and lower annual gold production[11]. - Total cash costs per gold equivalent ounce sold were $2,330, while total all-in sustaining costs were $2,939[11]. - The company raised $2.5 million through a registered direct offering and $3.0 million through its ATM Program in early 2025 to support its financial needs[12]. Capital Expenditures and Development Plans - The company requires approximately $7.0 million for additional mining equipment and mill upgrades, along with $8.0 million in working capital over the next 12 months for initial development[10]. - The company plans to secure a third filter press to increase processing throughput from 1,300 tonnes/day to 1,500 tonnes/day, which is expected to significantly impact profitability due to fixed costs[5]. - Future development plans include the Back Forty Project in Michigan, USA[19]. - The company is negotiating with a contractor to develop and produce from the Three Sisters vein system, with operations expected to start in April 2025[5]. Safety and Operational Efficiency - The company achieved an Accident Free Full Year with a lost time injury frequency rate of zero, reflecting the effectiveness of its safety program[5]. - The exploration program successfully increased the potential resources and confidence in the Three Sisters vein system, despite suspending exploration drilling in August 2024 to conserve cash[6]. Strategic Initiatives and Leadership - The company has a dedicated leadership team to guide its strategic initiatives and operational goals[19]. - The company is currently negotiating with contractors and acquiring equipment, which are critical for its operations[20]. - Anticipated near-term capital needs and potential sources of capital are being evaluated[20]. - The company expects to maintain cash flow and productivity levels to support ongoing operations[20]. - There are risks and uncertainties associated with the company's forward-looking statements, which may affect actual results[20]. - The company will continue to file periodic reports with the SEC, providing updates on its financial status and operational performance[20]. Contact Information - For further inquiries, the Chief Financial Officer can be contacted directly[21].

Production and Sales - The Company produced and sold a total of 18,580 gold equivalent ounces, consisting of 8,598 gold ounces and 817,333 silver ounces, sold at average prices of $2,354 and $28.75 per ounce, respectively[22]. - The Company produced and sold a total of 18,580 gold equivalent ounces, including 8,598 gold ounces and 817,333 silver ounces, at average prices of $2,354 and $28.75 per ounce, respectively[22]. Financial Performance - The cash and cash equivalent balance at year-end 2024 was $1.6 million, a decrease of $4.6 million from the previous year, primarily due to $6.4 million in capital investments and $0.6 million in operating activities[22]. - The cash and cash equivalent balance decreased by $4.6 million to $1.6 million as of December 31, 2024, primarily due to a cash outflow of $6.4 million for capital investments and $0.6 million from operating activities[22]. - Working capital at December 31, 2024, was $2.1 million, reflecting an 86% decrease from $15.2 million at the end of 2023[22]. - Working capital at December 31, 2024, was $2.1 million, an 86% decrease from $15.2 million at December 31, 2023, driven by a decline in cash balance and lower annual gold production[22]. - Total cash costs per gold equivalent ounce sold for the year were $2,330, while the all-in sustaining cost was $2,939[22]. - Total cash costs per gold equivalent ounce sold for the year were $2,330, while total all-in sustaining costs were $2,939[22]. - The Company anticipates requiring approximately $7.0 million for additional mining equipment and mill upgrades, along with $8.0 million in working capital over the next 12 months[25]. - The Company requires approximately $7.0 million for additional mining equipment and mill upgrades, and expects to need about $8.0 million in working capital over the next 12 months for initial development[25]. - The Company raised $2.5 million through a registered direct offering and $3.0 million through its ATM Program in early 2025[25]. - The Company raised $2.5 million through a registered direct offering in January 2025 and $3.0 million through its ATM Program in January and February 2025[25]. Operational Challenges - The Company faced significant declines in tonnes and grade at the Don David Gold Mine due to equipment availability issues and mechanical problems, impacting production estimates[23]. - The Company is currently mining only one face at a time due to equipment availability issues, which has impacted production estimates[23]. - The Company believes that without investment in new areas, it will not generate sufficient free cash flow in the near term[24]. - If the Company cannot secure additional capital, continued operation of the mine may not be possible beyond the first half of 2025[26]. - The Company is evaluating various financing options to fund the development of new mining areas, as continued operation of the mine may not be possible beyond the first half of 2025 without additional capital[26]. Exploration and Development - The exploration program was suspended on August 1, 2024, but infill drilling completed in 2024 increased resource potential and confidence in the Three Sisters and North Arista vein systems[22]. - The exploration program showed positive results, particularly in the Three Sisters and North Arista vein systems, although exploration drilling was suspended on August 1, 2024, to preserve cash[22]. - The Company received the Mexican Empresa Socialmente Responsable ("ESR") award for the tenth consecutive year in 2024[22].

Sales Performance - In Q3 2024, Gold Resource Corporation sold 1,357 ounces of gold and 181,434 ounces of silver, totaling 3,526 gold equivalent ounces (AuEq) sold[1]. - For the nine months ending September 30, 2024, the company sold 15,325 AuEq ounces, a decrease from 24,306 AuEq ounces in the same period of 2023, representing a decline of approximately 37%[2]. Pricing Trends - Average realized gold price in Q3 2024 was $2,561 per ounce, up 32% from $1,934 per ounce in Q3 2023[2]. - Average realized silver price in Q3 2024 was $30.61 per ounce, an increase of 29.5% compared to $23.61 per ounce in Q3 2023[2]. Production Challenges - The company faced significant production challenges due to equipment availability issues and mechanical problems, leading to a decline in tonnes milled and average grades[4]. Financial Needs and Risks - The company anticipates needing approximately $7 million for mining equipment and mill upgrades, along with $8 million in working capital for initial development of new mining areas[6]. - If the company cannot secure additional capital, continued operation of the mine may not be feasible beyond November 2024[7]. - The company is evaluating various financing options to address short-term liquidity concerns due to production shortfalls[6]. Future Potential - The Don David Gold Mine has potential for positive cash flow, but requires investment in equipment and mine planning to access new areas[5]. Communication Decisions - The company has decided not to host a Q3 2024 conference call[8].