Gold Resource Corporation (NYSE:GORO) Q1 2022 Earnings Conference Call May 10, 2022 11:00 AM ET Company Participants Kim Perry - Chief Financial Officer Allen Palmiere - President & Chief Executive Officer Alberto Reyes - Chief Operating Officer Conference Call Participants Heiko Ihle - H.C. Wainwright Operator Good morning, and welcome to the Gold Resource Corporation First Quarter 2022 Financial and Operating Results Conference Call. At this time, all participants are in a listen-only mode. Following mana ...

First Quarter 2022 Conference Call May 10, 2022 11:00 AM ET Allen Palmiere, President & Chief Executive Officer Alberto Reyes, Chief Operating Officer Kim Perry, Chief Financial Officer Cautionary Notes Cautionary Note Regarding Forward-Looking Statements Except for statements of historical fact relating to us, certain statements contained in this presentation constitute forward-looking information, future oriented financial information, or financial outlooks (collectively "forward-looking information") wit ...

[First Quarter 2022 Highlights](index=4&type=section&id=First%20Quarter%202022%20Highlights) Gold Resource Corporation achieved strong Q1 2022 financial and operational results, including **$4.0 million** net income, **$31.2 million** cash, and **11,729** gold equivalent ounces produced at a negative cash cost, while advancing the Back Forty Project [First Quarter 2022 Highlights](index=4&type=section&id=First%20Quarter%202022%20Highlights) Gold Resource Corporation achieved strong Q1 2022 financial and operational results, including **$4.0 million** net income, **$31.2 million** cash, and **11,729** gold equivalent ounces produced at a negative cash cost, while advancing the Back Forty Project Q1 2022 Financial Highlights | Metric | Value | | :--- | :--- | | Net Income | $4.0 million | | Earnings Per Share (EPS) | $0.05 | | Cash and Cash Equivalents (as of March 31, 2022) | $31.2 million | | Cash Flow from Operating Activities | $4.2 million | | Working Capital (as of March 31, 2022) | $32.4 million | | Shareholder Dividends Distributed | $0.9 million | Q1 2022 Operational & Cost Highlights | Metric | Value | | :--- | :--- | | Gold Equivalent Ounces Produced & Sold | 11,729 oz | | Gold Ounces Sold | 8,381 oz | | Silver Ounces Sold | 265,407 oz | | Total Cash Cost (after co-product credits) | ($121) per AuEq oz | | Total All-in Sustaining Cost (AISC) (after co-product credits) | $499 per AuEq oz | - Strategic initiatives in Q1 2022 included advancing the **Back Forty Project's** feasibility study, which is expected in **H2 2022**, and making key personnel appointments to de-risk the project. The company also demonstrated its environmental commitment by processing tailings material from a local community[12](index=12&type=chunk) [Part I - Financial Information](index=6&type=section&id=Part%20I%20-%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated interim financial statements and management's discussion and analysis for Q1 2022 [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q1 2022 financial statements show net sales increased to **$45.4 million**, net income to **$4.0 million**, and a strong balance sheet with **$216.6 million** in total assets [Condensed Consolidated Interim Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Interim%20Balance%20Sheets) The balance sheet as of March 31, 2022, shows total assets at **$216.6 million**, cash at **$31.2 million**, and shareholders' equity at **$123.7 million** Balance Sheet Summary (in thousands) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Current Assets** | **$60,683** | **$58,915** | | Cash and cash equivalents | $31,175 | $33,712 | | **Total Assets** | **$216,583** | **$215,762** | | **Current Liabilities** | **$28,319** | **$29,659** | | **Total Liabilities** | **$92,868** | **$95,012** | | **Total Shareholders' Equity** | **$123,715** | **$120,750** | [Condensed Consolidated Interim Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Operations) Q1 2022 net sales surged **67%** to **$45.4 million**, driving mine gross profit up **125%** to **$19.3 million** and net income to **$4.0 million** ($0.05 EPS) Statement of Operations Summary (in thousands, except per share data) | Account | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Sales, net | $45,417 | $27,268 | | Total cost of sales | $26,094 | $18,693 | | **Mine gross profit** | **$19,323** | **$8,575** | | Income before income taxes | $9,370 | $5,121 | | **Net income** | **$4,019** | **$2,527** | | **Basic and diluted EPS** | **$0.05** | **$0.03** | [Condensed Consolidated Interim Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) Q1 2022 saw **$4.2 million** cash from operations, offset by **$5.4 million** in investing and **$1.1 million** in financing activities, leading to a **$2.5 million** net cash decrease Cash Flow Summary (in thousands) | Activity | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,230 | $6,831 | | Net cash used in investing activities | ($5,416) | ($4,317) | | Net cash used in financing activities | ($1,129) | ($579) | | **Net (decrease) increase in cash** | **($2,537)** | **$1,825** | [Notes to the Condensed Consolidated Interim Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) Notes detail revenue composition, including **$42.1 million** from concentrate sales, a **$4.1 million** zinc collar loss, **$42.8 million** in stream liabilities, and segment performance Net Sales by Source (Q1 2022, in thousands) | Source | Amount | | :--- | :--- | | Total doré sales, net | $1,257 | | Total concentrate sales, net | $42,126 | | Realized/Unrealized gain on embedded derivative | $2,034 | | **Total sales, net** | **$45,417** | - The company has a zinc zero cost collar derivative to manage price risk. For Q1 2022, this resulted in a realized loss of **$1.6 million** and an unrealized loss of **$2.5 million**, recorded as a current liability[66](index=66&type=chunk)[67](index=67&type=chunk)[79](index=79&type=chunk) - Liabilities related to Gold and Silver Stream Agreements for the **Back Forty Project** totaled **$42.8 million** as of March 31, 2022. These agreements are with Osisko Bermuda Limited and are tied to future production[44](index=44&type=chunk)[58](index=58&type=chunk) Segment Net Income (Loss) (Q1 2022, in thousands) | Segment | Net Income (Loss) | | :--- | :--- | | Oaxaca, Mexico | $8,043 | | Michigan, USA | ($1,385) | | Corporate and Other | ($2,639) | | **Consolidated** | **$4,019** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q1 2022 performance to higher grades and metal prices, with net sales up **67%** to **$45.4 million**, a negative cash cost of **($121)** per AuEq ounce, and **$31.2 million** in cash [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Q1 2022 results show **83%** higher gold production to **11,187 ounces** due to improved grades, driving net sales up **67%** to **$45.4 million** and net income up **59%** to **$4.0 million** Production Statistics Comparison | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Tonnes Milled (Arista Mine) | 135,801 | 127,403 | | Average Gold Grade (g/t) | 3.00 | 1.68 | | Gold Production (oz) | 11,187 | 6,097 | | Silver Production (oz) | 332,292 | 307,610 | Sales & Financial Performance (in thousands) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Sales, net | $45,417 | $27,268 | | Total cost of sales | $26,094 | $18,693 | | Mine gross profit | $19,323 | $8,575 | | Net income | $4,019 | $2,527 | - The increase in cost of sales was primarily due to a **$2.6 million** increase in depreciation and a **$4.8 million** increase in production costs, which were impacted by higher consumable prices, royalties, and costs related to the Mexico Labor Reform[124](index=124&type=chunk) [Non-GAAP Measures](index=44&type=section&id=Non-GAAP%20Measures) Non-GAAP measures show Q1 2022 cost improvements, with total cash cost at **($121)** per AuEq ounce and AISC at **$499** per AuEq oz, driven by strong base metal prices Non-GAAP Cost Reconciliation (per AuEq oz sold) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Total cash cost after co-product credits | **$(121)** | $413 | | Total consolidated all-in sustaining cost (AISC) | **$499** | $943 | | Total all-in cost | **$811** | $1,275 | - The negative cash cost in Q1 2022 is attributed to the higher amount of co-product credits received from strong base metal prices and a **33%** increase in total gold equivalent ounces sold[135](index=135&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2022, the company has **$31.2 million** in cash and **$32.4 million** in working capital, with a **$2.5 million** net cash decrease due to investing and financing activities - Working capital increased by **$3.0 million** to **$32.4 million** at March 31, 2022, from **$29.3 million** at year-end 2021[161](index=161&type=chunk) - Cash and cash equivalents decreased by **$2.5 million** during Q1 2022, from **$33.7 million** to **$31.2 million**[165](index=165&type=chunk) - Long-term liquidity may be impacted by capital requirements to develop the **Back Forty Project**, with project financing expected in 2023 or 2024[164](index=164&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from commodity price fluctuations, foreign currency exposure (**50-60%** of expenses in non-USD), provisional sales contracts, and equity price risk - The company's primary market risk is the fluctuation in prices of gold, silver, copper, lead, and zinc[182](index=182&type=chunk) - A zinc zero cost collar is used to manage zinc price risk, but no other derivative contracts are in place for other metals[182](index=182&type=chunk)[183](index=183&type=chunk) - The company is exposed to foreign currency risk, as **50% to 60%** of its expenses are paid in currencies other than the U.S. dollar, primarily the Mexican peso[186](index=186&type=chunk) [Item 4. Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of March 31, 2022, due to a **material weakness** in internal control over financial reporting related to the Aquila acquisition - The Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were not effective as of March 31, 2022[191](index=191&type=chunk) - A **material weakness** exists related to review controls over the accounting and valuation of assets and liabilities from the **Aquila acquisition**, which involved complex valuations and a compressed timeframe[193](index=193&type=chunk)[195](index=195&type=chunk)[196](index=196&type=chunk) - Notwithstanding the material weakness, management has concluded that the financial statements in this quarterly report are fairly presented in conformity with U.S. GAAP[191](index=191&type=chunk) [Part II - Other Information](index=58&type=section&id=Part%20II%20-%20OTHER%20INFORMATION) This section provides other relevant information, including legal proceedings and updates on risk factors [Item 1. Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material legal proceedings against it, noting an ongoing injunction against the Mexican government regarding concession titles not impacting current operations - The company is not aware of any material legal proceedings against it[199](index=199&type=chunk) - An injunction was filed by a local community in **February 2020** against the Mexican government regarding certain concession titles. The Don David Gold Mine does not currently operate in the specific concessions mentioned[200](index=200&type=chunk) [Item 1A. Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's Form 10-K for the year ended December 31, 2021 - No material changes have occurred from the risk factors described in the company's annual report on Form 10-K for the year ended December 31, 2021[201](index=201&type=chunk)

Financial Data and Key Metrics Changes - The company reported net income of $8 million for the year, with net revenues of $125 million, which is 38% higher than 2020 revenues due to increased gold sales and higher average metal prices realized primarily on base metals [17] - Cash from operating activities was $34.8 million for the year, and working capital was $29.3 million at December 31 [17] - Total production costs increased by 13% to $88.4 million, primarily due to a 14% price increase in reagents consumed [18] Business Line Data and Key Metrics Changes - The Don David Gold operations sold approximately 23,000 ounces of gold and 1.1 million ounces of silver, equating to a combined 37,500 equivalent ounces of gold [13] - The total cash cost after co-product credit was $414 per gold equivalent ounce sold, and the total all-in sustaining cost was $922 per ounce, both significantly lower than the previous year [18] Market Data and Key Metrics Changes - The company experienced a positive year in gold and silver grades as conditions improved after addressing ground support issues [12] - The average throughput was impacted by a 12-day shutdown in August due to COVID-19, but operations improved significantly in Q4 [13][34] Company Strategy and Development Direction - The company aims to unlock value from the Arista Mine and existing infrastructure while focusing on the Back Forty Project, with significant investments planned for infrastructure and exploration [21] - The strategic focus includes completing the definitive feasibility study for the Back Forty Project and preparing necessary permit applications [11][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operational performance continuing into 2022, driven by ore grades and commodity prices [36][43] - The company plans to expand efforts in health, safety, community development, and overall ESG programs [24] Other Important Information - The company closed the year with a strong balance sheet, consisting of over $33.7 million in cash and no debt, while also paying dividends equating to 40% of net income [25] - A material weakness was identified in the control framework specific to the Aquila transaction, but all other controls were effective [19][20] Q&A Session Summary Question: What are the goals and objectives and expected timing of the definitive feasibility study for the Back Forty Project? - The study is anticipated to be completed in the second half of the year, likely late Q3 or early Q4 [30] Question: Can you quantify the cost savings in your operations with the new dry stack and filter press facilities? - Operating a dry stack is more expensive than thickened tailings, but it significantly reduces water consumption and accelerates reclamation [46] Question: What efforts are being made for new development in the Don David and Arista areas? - The company is focusing on underground drilling and has identified potential at depth under Arista and Switchback, along with the Three Sisters area [49][51]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) Gold Resource Corporation (Exact name of registrant as specified in its charter) Colorado 84-1473173 (State or other jurisdiction of incorporation or organization) 7900 E. Union Ave, Suite 320, Denver, Colorado 80237 (Address of Principal Executive Offices) (Zip Code) (303) 320-7708 (Registrant's telephone number including area code) Securities registered pursuant to Section 12(b) of the Act: | Tit ...

Gold Resource Corporation (NYSE:GORO) Q3 2021 Earnings Conference Call October 28, 2021 11:00 AM ET Company Participants Ann Wilkinson - Vice President, Investor Relations and Corporate Affairs Allen Palmiere - President and Chief Executive Officer Kim Perry - Chief Financial Officer Conference Call Participants Heiko Ihle - H.C. Wainwright John Bair - Ascend Advisors Ron Aubrey - RJ Aubrey Investment Corp. Operator Welcome to Gold Resource Corporation's Third Quarter 2021 Conference Call. As a reminder, al ...

Third Quarter 2021 Highlights [Third Quarter 2021 Highlights](index=4&type=section&id=Third%20Quarter%202021%20Highlights) The company advanced its acquisition of Aquila Resources, produced 9,170 gold equivalent ounces, and maintained a strong financial position - Entered into a binding letter agreement and subsequent definitive arrangement agreement to acquire all common shares of Aquila Resources Inc[11](index=11&type=chunk) - The Don David Gold Mine produced and sold **9,170 gold equivalent ounces**, comprising 5,809 gold ounces and 255,394 silver ounces[11](index=11&type=chunk) - Construction of the water filtration plant and dry stack tailings facilities is **95% complete**, which will enhance water conservation and extend operational life[11](index=11&type=chunk) - Experienced a temporary 12-day reduction in activities at the Don David Gold Mine due to an increase in COVID-19 cases, with operations subsequently ramping back up under enhanced protocols[11](index=11&type=chunk) Q3 2021 Key Financial Metrics | Metric | Value | | :--- | :--- | | Cash Balance (as of Sep 30, 2021) | $29.5 million | | Year-to-date Operating Cash Flow | $21.9 million | | Net Income | $1.5 million | | Earnings Per Share (EPS) | $0.02 | | Total Cash Cost (after co-product credits) | $466 per AuEq ounce | | Total All-in Sustaining Cost (AISC) | $1,031 per AuEq ounce | Part I - Financial Information [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) The interim financial statements show total assets of $116.2 million and net income from continuing operations of $1.5 million for the quarter [Condensed Consolidated Interim Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Interim%20Balance%20Sheets) Total assets grew to $116.2 million, driven by increases in cash and net property, plant, and mine development Balance Sheet Summary (in thousands) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | **$48,925** | **$42,873** | | Cash and cash equivalents | $29,544 | $25,405 | | Property, plant and mine development, net | $66,317 | $62,511 | | **Total Assets** | **$116,181** | **$105,734** | | **Total Current Liabilities** | **$17,952** | **$12,085** | | **Total Liabilities** | **$21,974** | **$15,196** | | **Total Shareholders' Equity** | **$94,207** | **$90,538** | [Condensed Consolidated Interim Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Operations) Net sales for Q3 2021 reached $29.0 million, with net income from continuing operations turning to $1.5 million Statement of Operations Summary (in thousands, except per share amounts) | Metric | Q3 2021 | Q3 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | Sales, net | $29,029 | $26,435 | $87,133 | $61,105 | | Mine gross profit | $8,245 | $5,765 | $23,700 | $4,593 | | Income (loss) before income taxes | $3,881 | $2,680 | $12,036 | ($3,632) | | Net income (loss) from continuing operations | $1,529 | ($251) | $5,339 | ($3,212) | | Basic and diluted EPS from continuing operations | $0.02 | $0.01 | $0.07 | ($0.05) | [Condensed Consolidated Interim Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) Net cash from operating activities for the nine-month period was $21.9 million, a substantial increase from the prior year Cash Flow Summary for the Nine Months Ended Sep 30 (in thousands) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $21,872 | $12,088 | | Net cash used in investing activities | ($15,217) | ($6,413) | | Net cash (used in) provided by financing activities | ($2,215) | $8,989 | | **Net increase in cash and cash equivalents** | **$4,139** | **$13,191** | | **Cash and cash equivalents at end of period** | **$29,544** | **$23,401** | [Notes to the Condensed Consolidated Interim Financial Statements](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) Notes detail the spin-off of Fortitude Gold, new labor reform impacts, and the pending acquisition of Aquila Resources - The spin-off of Fortitude Gold Corporation (FGC) was completed on December 31, 2020, and its results are presented as discontinued operations for the 2020 periods[27](index=27&type=chunk) - New labor reform in Mexico required the company to record **$1.6 million** for employee profit sharing (PTU) and **$0.7 million** for statutory employee severance benefits in 2021[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) - The company uses zinc zero cost collars to manage near-term exposure to zinc price risks, resulting in an unrealized loss of **$0.1 million** as of September 30, 2021[53](index=53&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk) - Subsequent to the quarter's end, on October 6, 2021, the company entered into a definitive arrangement agreement to acquire Aquila Resources Inc[86](index=86&type=chunk) [Management's Discussion and Analysis (MD&A)](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strategic growth via acquisition, Q3 operational performance, updated guidance, and capital project progress [Overview and Strategic Initiatives](index=33&type=section&id=Overview%20and%20Strategic%20Initiatives) The company's strategy focuses on acquiring the Back Forty Project to drive growth and reduce jurisdictional risk - Announced the acquisition of Aquila Resources Inc to add the Back Forty Project, which is expected to be accretive and provide a **peer-leading growth profile** with lower jurisdictional risk[100](index=100&type=chunk) - Issued its 2020 Sustainability Report, highlighting a **38% decline** in greenhouse gas emissions and a **14.8% decline** in water withdrawn per tonne of ore processed compared to 2019[93](index=93&type=chunk)[94](index=94&type=chunk)[103](index=103&type=chunk) [Updated 2021 Guidance](index=38&type=section&id=Updated%20Guidance) Full-year 2021 guidance was revised, lowering silver production and capital investment while increasing cash cost projections Updated 2021 Guidance vs. Original | Measure | Original 2021 Guidance | Updated 2021 Guidance | | :--- | :--- | :--- | | Payable Silver Ounces | 1,700,000 - 1,800,000 | 1,100,000 - 1,300,000 | | Cash Costs per AuEq ounce | $210 - $225 | $250 - $290 | | All-in Sustaining Costs (AISC) | $800 - $900 | Maintained | | Capital Investment | $22.0 million | $16.0 million | [Results of Operations](index=39&type=section&id=Results%20of%20Operations) Q3 2021 saw a 47% YoY increase in gold production and higher mine gross profit, despite a 36% decrease in tonnes milled Q3 2021 vs Q3 2020 Production Statistics | Metric | Q3 2021 | Q3 2020 | Change | | :--- | :--- | :--- | :--- | | Tonnes Milled | 98,010 | 153,531 | -36% | | Average Gold Grade (g/t) | 2.68 | 1.25 | +114% | | Gold Production (ozs) | 6,933 | 4,728 | +47% | | Silver Production (ozs) | 265,829 | 324,592 | -18% | - Mine gross profit for Q3 2021 increased by **$2.5 million** compared to Q3 2020, primarily due to a $2.6 million increase in revenues resulting from lower concentrate treatment charges[120](index=120&type=chunk) - Treatment charges decreased by **44%** on a per-base-metal-tonne basis in Q3 2021 compared to Q3 2020, falling to $473 from $842 per tonne[121](index=121&type=chunk) [Capital and Exploration Investments](index=45&type=section&id=Capital%20and%20Exploration%20Investments) Year-to-date investments of $18.9 million focused on the Dry Stack Tailings and Gold Regrind projects, both near completion - The Dry Stack Tailings Project is **95% complete**, with $5.1 million invested in 2021 and commissioning expected to commence in November 2021[142](index=142&type=chunk) - The Gold Regrind Project, expected to increase gold recovery by **6% to 10%**, is anticipated to be completed in Q4 2021[141](index=141&type=chunk) - Underground exploration drilling has identified high-grade gold mineralization up to **80 meters** below the current mine level in the Switchback system[146](index=146&type=chunk) [Non-GAAP Measures](index=48&type=section&id=Non-GAAP%20Measures) The company reports lower cash costs and All-In Sustaining Costs (AISC) per ounce compared to the prior-year quarter Non-GAAP Cost Reconciliation per AuEq Ounce Sold | Metric | Q3 2021 | Q3 2020 | | :--- | :--- | :--- | | Total cash cost after co-product credits | $466 | $612 | | Total all-in sustaining cost (AISC) | $1,031 | $1,109 | | Total all-in cost after co-product credits | $1,564 | $1,350 | [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position with $29.5 million in cash and $21.9 million in operating cash flow year-to-date - As of September 30, 2021, the company had a cash balance of **$29.5 million** and working capital of **$31.0 million**[159](index=159&type=chunk)[162](index=162&type=chunk) - Net cash from operating activities for the first nine months of 2021 was **$21.9 million**, compared to $12.1 million for the same period in 2020[165](index=165&type=chunk) [Market Risk Disclosures](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks include commodity price volatility and foreign currency fluctuations, with zinc production partially hedged - The company's main market risks include commodity prices (gold, silver, base metals), foreign currency exchange rates, and provisional sales contract pricing[176](index=176&type=chunk) - In Q2 2021, the company began hedging zinc price risk, entering into a zero cost collar for **5,500 tonnes** (approx 43% of expected production) for June through December 2021[178](index=178&type=chunk) - Approximately **50% to 60%** of the company's expenses are paid in currencies other than the U.S. dollar, primarily the Mexican peso, creating foreign currency risk[182](index=182&type=chunk) [Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - Based on an evaluation by management, the company's disclosure controls and procedures were concluded to be effective as of the end of the period[187](index=187&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[188](index=188&type=chunk) Part II - Other Information [Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material legal proceedings, noting an ongoing injunction against the Mexican government that does not impact operations - The company is not aware of any material, existing or pending legal proceedings against it[190](index=190&type=chunk) - An injunction filed by a local community in February 2020 against the Mexican government regarding certain concession titles has not progressed to a final ruling and does not currently impact the Don David Gold Mine's operations[191](index=191&type=chunk) [Other Items (Risk Factors, Securities, Disclosures, etc.)](index=61&type=section&id=Other%20Items) This section confirms no material changes to risk factors and notes that mine safety disclosures are not applicable - There have been no material changes from the risk factors described in the company's Form 10-K for the year ended December 31, 2020[192](index=192&type=chunk) - Mine Safety Disclosures are not applicable as the company does not have mining operations in the U.S[193](index=193&type=chunk)

Gold Resource Corporation (NYSE:GORO) Aquila Resources Inc. Acquisition Conference Call September 8, 2021 10:00 AM ET Company Participants Ann Wilkinson - Vice President, Investor Relations and Corporate Affairs Allen Palmiere - President and Chief Executive Officer Kim Perry - Chief Financial Officer Conference Call Participants Heiko Ihle - H.C. Wainwright Stefan Ioannou - Cormark Securities Operator Thank you for standing by. This is the conference operator. Welcome to the Gold Resource Corporation's Co ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 2000 South Colorado Blvd, Tower One, Suite 10200, Denver, Colorado 80222 (Address of Principal Executive Offices) (Zip Code) (303) 320-7708 (Registrant's telephone number including area code) Securities registered pursuant to Section 12(b) of the Act: | Title of eac ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Gold Resource Corporation (Exact Name of Registrant as Specified in its charter) Colorado 84-1473173 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 2000 South Colorado Blvd, Tower One, Suite 10200, Denver, Colorado 80222 (Address of Principal Executive Offices) (Zip Code) (303) 320-7708 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SE ...