Gold Resource (GORO) - 2024 Q4 - Annual Report

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$15.2 million at the end of 2023[22]. - Working capital at December 31, 2024, was $2.1 million, an 86$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].