Gold Resource (US:GORO)2024-11-05 22:36Production and Sales - In Q3 2024, the Don David Gold Mine produced and sold 3,526 gold equivalent ounces, including 1,357 gold ounces and 181,434 silver ounces, at average sales prices of $2,561 and $30.61 per ounce, respectively[6]. - The mine's production estimates have been significantly impacted by equipment availability issues and weather-related challenges, leading to mining only one face at a time[7]. - Gold sales in Q3 2024 were 1,357 ounces, down 66% from the same period in 2023; silver sales decreased by 13% to 181,434 ounces[123]. - Year-to-date gold sales for 2024 were 7,638 ounces, down 48% compared to the same period in 2023[126]. - For the nine months ended September 30, 2024, total tonnes milled were 276,266, a 20% decrease from the same period in 2023[117]. - In Q3 2024, total tonnes milled were 83,690, representing a 28% decrease compared to Q3 2023[114]. Financial Performance - The net loss for Q3 2024 was $10.5 million, or $0.11 per share, primarily due to decreased net sales from production challenges and unfavorable weather conditions[6]. - For the nine months ended September 30, 2024, the net loss was $42.25 million, compared to a net loss of $12.96 million for the same period in 2023[17]. - The company has encountered a mine gross loss of $8.67 million for Q3 2024, compared to a loss of $4.41 million in Q3 2023[12]. - The company recorded a net loss of $42.3 million for the nine months ended September 30, 2024, compared to a net loss of $13.0 million during the same period in 2023, reflecting a $29.3 million increase in net loss[143]. - The company reported a total other expense of $2.977 million for the three months ended September 30, 2024, compared to $1.967 million for the same period in 2023[74]. Costs and Expenses - Total cash cost after co-product credits was $3,560 per AuEq ounce, while the all-in sustaining cost (AISC) was $5,072 per AuEq ounce for the quarter[6]. - Total cost of sales for Q3 2024 was $21.9 million, a decrease of 12% from $25.0 million in Q3 2023[132]. - Total cash cost after co-product credits per AuEq ounce sold was $3,560 in Q3 2024, significantly higher than $1,839 in Q3 2023[130]. - Total consolidated all-in sustaining cost after co-product credits per AuEq oz sold for the nine months ended September 30, 2024, was $3,037, compared to $1,852 for the same period in 2023[161]. - General and administrative expenses for the nine months ended September 30, 2024, were $3.0 million, down 42% from $5.1 million for the same period in 2023 due to cost-saving measures[151]. Cash and Working Capital - The company has $6.1 million in working capital and $1.4 million in cash as of September 30, 2024[6]. - Cash and cash equivalents decreased to $1.35 million as of September 30, 2024, down from $6.71 million at the end of September 2023[17]. - As of September 30, 2024, working capital decreased by $9.1 million, or 60%, to $6.1 million from $15.2 million as of December 31, 2023[171]. - The company is currently seeking financing to raise cash for working capital due to substantial doubt about its ability to continue as a going concern[23]. Investments and Capital Expenditures - The company anticipates needing approximately $7 million for additional mining equipment and mill upgrades, including $2.5 million for mill upgrades and $4.5 million for mining equipment[8]. - The company reported capital expenditures of $6.35 million for the nine months ended September 30, 2024, compared to $9.75 million for the same period in 2023[17]. - Total capital and exploration investments for the nine months ended September 30, 2024, amounted to $9.964 million, a decrease from $14.990 million in the same period of 2023[163]. Safety and Compliance - The company has a zero Lost Time Injury Frequency Rate (LTIFR) safety record year-to-date, emphasizing its commitment to safety[6]. - The company has no liability for uncertain tax positions as of September 30, 2024, despite a sanction notification from the Mexican Tax Administration Services amounting to approximately $17 million[31]. Market and Economic Conditions - The company's operations and financial condition are significantly influenced by the market prices of gold, silver, copper, lead, and zinc, which are subject to wide fluctuations due to various external factors[190]. - The company faces risks from commodity price fluctuations, foreign currency exchange rates, and provisional sales contract risks, which could materially impact its financial results[189]. - The company does not currently utilize derivative financial instruments to manage market risks but may consider such strategies in the future[189]. Future Outlook - The company plans to adopt new segment reporting disclosures effective for fiscal years beginning after December 15, 2023, which may enhance transparency in financial reporting[20]. - The company plans to release a resource estimate update in Q1 2025, indicating a positive increase in tonnage and higher grades in the Three Sisters and Gloria vein systems[105]. - The company is evaluating various financing options to fund necessary developments in the near term to avoid placing the mine on "care and maintenance" status[8].