Gold Resource (US:GORO)2022-03-11 20:47Financial 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]