Gold Resource (US:GORO)2025-05-12 21:15Production 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].