Gold Resource (GORO) 10-Q 31 Jul 18 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 30, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Entity Registrant Name	GOLD RESOURCE CORP
Entity Central Index Key	1,160,791
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		57,592,052
Entity Current Reporting Status	Yes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 26,645	$ 22,390
Gold and silver rounds/bullion	3,664	3,812
Accounts receivable	1,727	2,884
Inventories, net	12,542	11,636
Prepaid expenses and other current assets	1,661	1,767
Total current assets	46,239	42,489
Property, plant and mine development, net	91,124	82,599
Deferred tax assets, net	7,951	6,854
Other non-current assets	835	981
Total assets	146,149	132,923
Current liabilities:
Accounts payable	11,798	6,904
Loan payable, current	581	568
Capital lease, current	393	382
Income taxes payable, net	1,179	1,944
Mining royalty taxes payable, net	1,554	2,359
Accrued expenses and other current liabilities	3,018	2,851
Total current liabilities	18,523	15,008
Reclamation and remediation liabilities	2,961	2,946
Loan payable, long-term	1,351	1,645
Capital lease, long-term	1,019	1,218
Total liabilities	23,854	20,817
Shareholders' equity:
Common stock - $0.001 par value, 100,000,000 shares authorized: 57,592,052 and 56,916,484 shares outstanding at June 30, 2018 and December 31, 2017, respectively	58	57
Additional paid-in capital	116,135	114,584
Retained earnings	13,157	4,520
Treasury stock at cost, 336,398 shares	(5,884)	(5,884)
Accumulated other comprehensive loss	(1,171)	(1,171)
Total shareholders' equity	122,295	112,106
Total liabilities and shareholders' equity	$ 146,149	$ 132,923

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Consolidated Balance Sheets
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares outstanding	57,592,052	56,916,484
Treasury stock, shares	336,398	336,398

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Consolidated Statements of Operations
Sales, net	$ 30,768	$ 21,391	$ 62,919	$ 45,727
Mine cost of sales:
Production costs	17,579	12,177	33,114	23,512
Depreciation and amortization	3,579	3,953	7,072	6,509
Reclamation and remediation	89	35	292	64
Total mine cost of sales	21,247	16,165	40,478	30,085
Mine gross profit	9,521	5,226	22,441	15,642
Costs and expenses:
General and administrative expenses	2,225	1,675	4,579	3,487
Exploration expenses	1,251	1,136	2,436	1,958
Other expense, net	510	609	788	1,073
Total costs and expenses	3,986	3,420	7,803	6,518
Income before income taxes	5,535	1,806	14,638	9,124
Provision for income taxes	1,781	942	5,427	3,884
Net income	$ 3,754	$ 864	$ 9,211	$ 5,240
Net income per common share:
Basic	$ 0.07	$ 0.02	$ 0.16	$ 0.09
Diluted	$ 0.06	$ 0.02	$ 0.16	$ 0.09
Weighted average shares outstanding:
Basic	57,315,472	56,839,823	57,218,389	56,818,406
Diluted	58,314,123	57,375,938	58,153,350	57,744,817

Consolidated Statements of Chan

Consolidated Statements of Changes In Shareholders' Equity - USD ($) $ in Thousands	Common Shares [Member]	Additional Paid-in Capital	Accumulated (Deficit)/ Retained Earnings	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance at Dec. 31, 2016		$ 112,034	$ 2,040	$ (5,884)	$ (1,171)	$ 107,076
Balance (in shares) at Dec. 31, 2016	56,903,272
Balance at Dec. 31, 2016	$ 57
Adjustment to retained earnings as a result of adoption of ASU 2016-16			(533)			(533)
Stock-based compensation		1,192				1,192
Stock options exercised		58				58
Stock options exercised (in shares)	25,000
Common stock issued for vested restricted stock units (in shares)	78,400
Common stock issued for the acquisition of mineral properties		1,300				1,300
Common stock issued for the acquisition of mineral properties	246,210
Dividends declared			(1,137)			(1,137)
Net income			4,150			4,150
Balance at Dec. 31, 2017	$ 57					57
Balance at Dec. 31, 2017		114,584	4,520	(5,884)	(1,171)	112,106
Balance (in shares) at Dec. 31, 2017	57,252,882
Stock-based compensation		485				485
Stock options exercised	$ 1	1,066				1,067
Stock options exercised (in shares)	660,604
Common stock issued for vested restricted stock units (in shares)	14,964
Dividends declared			(574)			(574)
Net income			9,211			9,211
Balance at Jun. 30, 2018	$ 58					58
Balance at Jun. 30, 2018		$ 116,135	$ 13,157	$ (5,884)	$ (1,171)	$ 122,295
Balance (in shares) at Jun. 30, 2018	57,928,450

Condensed Consolidated Statemen

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net income	$ 9,211	$ 5,240
Adjustments to reconcile net income to net cash from operating activities:
Deferred income taxes	(1,134)	1,097
Depreciation and amortization	7,386	6,727
Stock-based compensation	485	383
Other operating adjustments	364	148
Changes in operating assets and liabilities:
Accounts receivable	1,157	(646)
Inventories	(897)	(1,049)
Prepaid expenses and other current assets	7	1,086
Other noncurrent assets	134	25
Accounts payable and other accrued liabilities	4,564	2,324
Mining royalty and income taxes payable/receivable, net	(1,815)	(1,316)
Net cash provided by operating activities	19,462	14,019
Cash flows from investing activities:
Capital expenditures	(15,108)	(10,818)
Other investing activities	4	(187)
Net cash used in investing activities	(15,104)	(11,005)
Cash flows from financing activities:
Proceeds from the exercise of stock options	1,124
Dividends paid	(571)	(568)
Repayment of loan payable	(281)
Repayments of capital leases	(189)	(1)
Net cash provided by (used in) financing activities	83	(569)
Effect of exchange rate changes on cash and cash equivalents	(186)	(201)
Net increase (decrease) in cash and cash equivalents	4,255	2,244
Cash and equivalents at beginning of period	22,390	14,166
Cash and equivalents at end of period	26,645	16,410
Supplemental Cash Flow Information
Interest expense paid	94	13
Income and mining taxes paid	6,298	2,369
Non-cash investing activities:
(Decrease) increase in accrued capital expenditures	$ 918	4,328
Equipment purchased under capital lease		21
Common stock issued for the acquisition of mineral rights		$ 1,300

Basis of Preparation of Financi

Basis of Preparation of Financial Statements	6 Months Ended
	Jun. 30, 2018
Basis of Preparation of Financial Statements
Basis of Preparation of Financial Statements	1. Basis of Preparation of Financial Statements The interim Condensed Consolidated Financial Statements (“interim financial statements”) of Gold Resource Corporation and its subsidiaries (collectively, the “Company”) are unaudited and have been prepared in accordance with the rules of the Securities and Exchange Commission for interim statements. Certain information and footnote disclosures required by United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been condensed or omitted although the Company believes that the disclosures included are adequate to make the information presented not misleading. In the opinion of management, all adjustments (including normal recurring adjustments) and disclosures necessary for a fair presentation of these interim financial statements have been included. The results reported in these interim financial statements are not necessarily indicative of the results that may be reported for the entire year. These interim financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2017 included in the Company’s annual report on Form 10-K. The year-end balance sheet data was derived from the audited financial statements. Unless otherwise noted, there have been no material changes to the footnotes from those accompanying the audited consolidated financial statements contained in the Company’s annual report on Form 10-K.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2018
Recent Accounting Pronouncements
Recent Accounting Pronouncements	2. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Accounting Standards Update No. 2014-09—Revenue from Contracts with Customers (Topic 606). On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued guidance that requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This ASU was further amended in August 2015, March 2016, April 2016, May 2016 and December 2016 by ASU No. 2015-14, No. 2016-08, No. 2016-10, No. 2016-12 and No. 2016-20, respectively. The guidance provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. On January 1, 2018, the Company adopted the new accounting guidance for all contracts using the retrospective approach. The adoption of this new guidance did not result in any changes to previously reported revenue amounts. Please see Note 3 for more information. In March 2018, the Company adopted Accounting Standards Update No. 2018-05—I ncome Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , which updates the income tax accounting in U.S. GAAP to reflect the Securities and Exchange Commission (“SEC”) interpretive guidance released on December 22, 2017, when the Tax Cuts and Jobs Act was signed into law. Please see Note 6 for additional information. Recently Issued Accounting Pronouncements Accounting Standards Update No. 2016-02 — Leases (Topic 842). I n February 2016, the FASB issued a new standard regarding leases. Lessees will be required to recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and a lease liability. Public business entities are required to adopt the new leasing standard for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For calendar year-end public entities, this means an adoption date of January 1, 2019. Early adoption is permitted. T he Company anticipates adopting the new guidance effective January 1, 2019 . The Company has begun its assessment of the new guidance and the impact it will have on the consolidated financial statements and disclosures and expects to complete its analysis in 2018. Management is still completing its assessment of the impacts; however, based on preliminary findings, the Company expects that the majority of its identified leases will be required to be reported on the Consolidated Balance Sheets. Based on the preliminary assessment, the Company expects there will be minimal impacts to the Consolidated Statements of Operations. The Company expects to have an update to the impacts of the standard in the third quarter of 2018. Accounting Standards Update No. 2018-07 — Compensation — Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting” (“ASU 2018-07”). In June 2018, the FASB issued new guidance regarding accounting for stock compensation. The new guidance expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from non-employees. ASU 2018-07 specifies that Topic 718 applies to all share-based payment transactions in which the grantor acquires goods and services to be used or consumed in its own operations by issuing share-based payment awards. ASU 2018-07 also clarifies that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC 606. ASU 2018-07 is effective for public entities beginning December 1, 2019, with early adoption permitted, but no earlier than the adoption of ASC 606. The Company is currently evaluating the potential impact of adopting this guidance on its consolidated financial statements.

Revenue

Revenue	6 Months Ended
	Jun. 30, 2018
Revenue
Revenue	3. Revenue The Company derives its revenue from the sale of d oré and concentrate. The following table presents the Company’s net sales disaggregated by source: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (in thousands) (in thousands) Doré sales, net Gold $ 1,722 $ 1,435 $ 3,631 $ 3,062 Silver 472 21 769 42 Less: Refining charges (38) (5) (63) (22) Total doré sales, net 2,156 1,451 4,337 3,082 Concentrate sales Gold 5,396 4,514 10,937 11,600 Silver 8,803 5,604 14,884 12,892 Copper 2,638 1,219 5,018 2,529 Lead 3,498 2,316 7,345 4,254 Zinc 11,841 7,790 25,225 13,846 Less: Treatment and refining charges (1,261) (1,479) (3,095) (2,987) Total concentrate sales, net 30,915 19,964 60,314 42,134 Realized/unrealized embedded derivative, net (2,303) (24) (1,732) 511 Total sales, net $ 30,768 $ 21,391 $ 62,919 $ 45,727 Doré Revenue Doré sales are recognized upon the satisfaction of performance obligations, which occurs when control of the doré transfers to the customer. Transfer of control occurs once the customer takes possession of the doré. Doré sales are recorded using quoted metal prices, net of refining charges. Concentrates Revenue Concentrate sales are initially recorded based on 100% of the provisional sales prices, net of treatment and refining charges, at the time of delivery to the customer at which point the performance obligations are satisfied and control of the product is transferred to the customer. Adjustments to the provisional sales prices are made to take into account the mark-to-market changes based on the forward prices of metals until final settlement occurs. The changes in price between the provisional sales price and final sales price are considered an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the concentrates at the quoted metal prices at the time of delivery. The embedded derivative, which does not qualify for hedge accounting, is adjusted to market through revenue each period prior to final settlement. Market changes in the prices of metals between the delivery and final settlement dates will result in adjustments to revenues related to previously recorded sales of concentrate. Sales are recorded net of charges for treatment, refining, smelting losses and other charges negotiated with the buyer. These charges are estimated upon delivery of concentrates based on contractual terms and adjusted to reflect actual charges at final settlement. Historically, actual charges have not varied materially from the Company’s initial estimates.

Gold and Silver Bullion

Gold and Silver Bullion	6 Months Ended
	Jun. 30, 2018
Gold and Silver Bullion
Gold and Silver Bullion	4. Gold and Silver Rounds/Bullion The Company periodically purchases gold and silver bullion on the open market for investment purposes and to use in its dividend exchange program under which shareholders may exchange their cash dividends for minted gold and silver rounds. During the six months ended June 30, 2018 and 2017, the Company purchased nil ounces and 151.55 ounces, respectively, of gold bullion. At June 30, 2018 and December 31, 2017, the Company’s holdings of rounds/bullion, using quoted market prices, consisted of the following: 2018 2017 Ounces Per Ounce Amount Ounces Per Ounce Amount (in thousands) (in thousands) Gold 1,904 $ 1,250 $ 2,380 1,905 $ 1,291 $ 2,459 Silver 80,099 $ 16.03 1,284 80,224 $ 16.87 1,353 Total holdings $ 3,664 $ 3,812

Inventories, net

Inventories, net	6 Months Ended
	Jun. 30, 2018
Inventories, net
Inventories, net	5. Inventories, net At June 30, 2018 and December 31, 2017, inventories, net consisted of the following: 2018 2017 (in thousands) Stockpiles - underground mine $ 1,165 $ 1,450 Stockpiles - open pit mine 132 101 Concentrates and doré 2,123 2,367 Materials and supplies (1) 9,122 7,718 Total $ 12,542 $ 11,636 (1) Net of reserve for obsolescence of $734 and $743, respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Taxes
Income Taxes	6. Income Taxes The Company recorded income tax expense of $1.8 million and $5.4 million for the three and six months ended June 30, 2018, respectively. For the three and six months ended June 30, 2017, the Company recorded income tax expense of $0.9 million and $3.9 million, respectively. The Company’s annualized effective rate differs from the U.S. corporate rate of 21% primarily due to differences in statutory rates for income and mining taxes in Mexico. On December 22, 2017, the U.S. government enacted comprehensive tax legislation (the “Tax Act”), which significantly revised the U.S. corporate income tax law by lowering the U.S. federal corporate income tax rate from 35% to 21%, implementing a territorial tax system, imposing a one-time tax on foreign unremitted earnings and setting limitations on deductibility of certain costs, among other things. The Company has not revised any of the 2017 provisional estimates under SAB No. 118 and ASU No 2018-05. The Company continues to gather information and is awaiting further guidance from the IRS, SEC and FASB on the Tax Act. The Company periodically transfers funds from its Mexican wholly-owned subsidiary to U.S. in the form of dividends. Mexico requires a 10% withholding tax on dividends to foreign parent companies on all post-2013 earnings. Dividends from earnings generated prior to 2014 were exempted from the new dividend withholding tax. The Company plans to distribute post-2013 earnings from Mexico beginning in 2018. According to the existing U.S. – Mexico tax treaty, the dividend withholding tax between these countries is limited to 5% if certain requirements are met. Based on the Company’s review of these requirements, it estimates it will pay a 5% withholding tax on dividends received from Mexico in 2018. The impact of the planned annual dividends for 2018 is reflected in the estimated annual effective tax rate. In 2015, the Mexican government approved a 2016 Federal Revenue Act that provides tax incentives, including tax credits on Mexican Excise Duty (a.k.a., IEPS), for the acquisition of combustible fossil fuels to be used in productive processes. The Company’s Mexican operations utilize a significant amount of diesel fuel for power generation that qualifies for such tax credits. These tax credits can be applied against income taxes payable, as well as other income tax withholdings during the year. In the three and six months ended June 30, 2018, the Company recorded $1.1 million and $2.1 million, respectively, of fuel tax credits. For the three and six months ended June 30, 2017, the Company recorded $0.9 million and $1.6 million, respectively, of fuel tax credits. These fuel tax credits were used to offset production costs and such credits were applied against the income tax payable. As of June 30, 2018, the Company believes that it has no liability for uncertain tax positions.

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	6 Months Ended
	Jun. 30, 2018
Prepaid Expenses And Other Current Assets
Prepaid Expenses and Other Current Assets	7. Prepaid Expenses and Other Current Assets At June 30, 2018 and December 31, 2017, prepaid expenses and other current assets consisted of the following: 2018 2017 (in thousands) Advances to suppliers $ 423 $ 163 Prepaid insurance 665 869 Vendor deposits 224 501 IVA taxes receivable, net 111 - Other current assets 238 234 Total $ 1,661 $ 1,767

Property, Plant and Mine Develo

Property, Plant and Mine Development, net	6 Months Ended
	Jun. 30, 2018
Property, Plant and Mine Development, net
Property, Plant and Mine Development – net	8. Property, Plant and Mine Development, net At June 30, 2018 and December 31, 2017, property, plant and mine development, net consisted of the following: 2018 2017 (in thousands) Asset retirement costs $ 969 $ 1,079 Construction-in-progress (1) 17,844 10,838 Furniture and office equipment 1,711 1,664 Land 242 242 Light vehicles and other mobile equipment 2,244 2,211 Machinery and equipment 23,960 22,916 Mill facilities and infrastructure 10,817 10,075 Mineral interests and mineral rights 17,958 17,658 Mine development 63,760 56,957 Software and licenses 1,659 1,678 Subtotal (2) (3) 141,164 125,318 Accumulated depreciation and amortization (50,040) (42,719) Total $ 91,124 $ 82,599 (1) Includes Isabella Pearl asset and development costs of $11.3 million and $7.4 million at June 30, 2018 and December 31, 2017, respectively. (2) Includes $1.6 million of assets recorded under capital leases at June 30, 2018 and December 31, 2017. Please see Note 12 for additional information. (3) Includes accrued capital expenditures of $2.0 and $1.0 million at June 30, 2018 and December 31, 2017, respectively. During three months ended June 30, 2018, the Company commenced development and construction of the mine and processing facilities at its Isabella Pearl property. As result of this decision, the Company began capitalizing development and construction costs associated with Isabella Pearl. The Company recorded depreciation and amortization expense of $3.7 million and $7.4 million for the three and six months ended June 30, 2018, respectively. For the three and six months ended June 30, 2017, the Company recorded $4.0 million and $6.7 million, respectively.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jun. 30, 2018
Accrued Expenses and Other Current Liabilities
Accrued Expenses and Other Current Liabilities	9. Accrued Expenses and Other Current Liabilities At June 30, 2018 and December 31, 2017, accrued expenses and other current liabilities consisted of the following: 2018 2017 (in thousands) Accrued insurance $ 88 $ 662 Accrued royalty payments 2,585 1,805 Dividends payable 96 95 IVA taxes payable, net - 274 Other payables 249 15 Total $ 3,018 $ 2,851

Reclamation and Remediation

Reclamation and Remediation	6 Months Ended
	Jun. 30, 2018
Reclamation And Remediation
Reclamation and Remediation	10. Reclamation and Remediation The Company’s reclamation and remediation obligations primarily relate to the Aguila Project. 2018 2017 (in thousands) Reclamation liabilities – balance at beginning of period $ $ 1,907 Changes in estimate - 10 Foreign currency exchange (gain) loss 88 Reclamation liabilities – balance at end of period 2,005 Asset retirement obligation – balance at beginning of period 518 Changes in estimate - 366 Accretion expense 35 Foreign currency exchange (gain) loss 22 Asset retirement obligation – balance at end of period 941 Total period end balance $ $ 2,946 The Company’s reclamation and remediation obligations as of June 30, 2018 and December 31, 2017 were discounted using a discount rate of 8%. The Company is required to post bonds with the Bureau of Land Management (“BLM”) for reclamation of planned mineral exploration and development programs associated with the Company’s mineral properties located on BLM lands in the United States. As a part of the permitting process for the Isabella Pearl project, the Company is currently required to have a reclamation bond of approximately $9.2 million held with the BLM. The Company purchased a surety contract for the reclamation bond which did not require any cash collateral. The Company is required to maintain the reclamation bond until all abandonment and remediation obligations have been completed to the satisfaction of the BLM. The surety contract names the Company’s subsidiary Walker Lane Minerals Corp. as an indemnitor to the surety agreement. The surety may require additional collateral to be placed into the reclamation deposit account at their discretion. As of June 30, 2018, the Company did not incur any significant disturbances related to the Isabella Pearl project, therefore no reclamation and remediation liability has been recorded.

Loan Payable

Loan Payable	6 Months Ended
	Jun. 30, 2018
Loan Payable
Loan Payable	11. Loan Payable On August 8, 2017, the Company entered into a 48-month loan agreement in the amount of $2.4 million for the purchase of certain equipment. The loan bears annual interest of 4.48%, is collateralized by the equipment, and requires monthly principal and interest payments of $0.05 million. As of June 30, 2018, there is an outstanding balance of $1.9 million which approximates its fair value. Scheduled minimum repayments are $0.3 million for the remainder of 2018, $0.6 million in 2019, $0.6 million in 2020, and $0.4 million in 2021. The loan is subject to a prepayment penalty, ranging from 1% to 3% of the outstanding loan balance at time of full repayment, depending on the time of repayment.

Capital Lease

Capital Lease	6 Months Ended
	Jun. 30, 2018
Capital Lease
Capital Lease	12. Capital Lease The Company has a capital lease agreement for certain equipment. The lease bears annual imputed interest of 5.95% and requires monthly principal, interest, and sales tax payments of $0.04 million. Scheduled minimum annual payments as of June 30, 2018 are as follows ( in thousands ): Year Ending December 31: 2018 $ 232 2019 461 2020 461 2021 397 Total minimum obligations 1,551 Interest portion (139) Present value of net minimum payments 1,412 Less: current portion (393) Non-current portion $ 1,019

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies
Commitments and Contingencies	13. Commitments and Contingencies Operating leases The Company also leases equipment and facilities under non-cancelable operating leases expiring at various dates through 2021. The Company also leases its office in Colorado Springs from a related party under a non-cancelable operating lease which expires in 2019. Future minimum lease payments under operating leases are as follows: Payments due by Period Total 2018 2019 2020 2021 2022 and (in thousands) Operating leases $ 361 $ 102 $ 113 $ 74 $ 72 $ - Other Commitments As of June 30, 2018, the Company has equipment purchase commitments aggregating approximately $2.3 million.

Embedded Derivatives

Embedded Derivatives	6 Months Ended
	Jun. 30, 2018
Embedded Derivatives
Embedded Derivatives	14. Embedded Derivatives Concentrate sales contracts contain embedded derivatives due to the provisional pricing terms for unsettled deliveries. At the end of each reporting period, the Company records an adjustment to accounts receivable and revenue to reflect the mark-to-market adjustments for outstanding provisional invoices based on metal forward prices. Please see Note 18 for additional information. The following table summarizes the Company’s unsettled sales contracts as of June 30, 2018 with the quantities of metals under contract subject to final pricing occurring through September 2018: Gold Silver Copper Lead Zinc (ounces) (ounces) (tonnes) (tonnes) (tonnes) Under contract 8,928 891,195 740 2,941 7,959 Average forward price (per ounce or tonne) $ 1,318 $ 16.61 $ 6,934 $ 2,440 $ 3,263

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2018
Stock-Based Compensation.
Stock-Based Compensation	15. Stock-Based Compensation During 2016, the Company replaced its Amended and Restated Stock Option and Stock Grant Plan (the “Prior Plan”) with the Gold Resource Corporation 2016 Equity Incentive Plan (the “Incentive Plan”). The Incentive Plan allows for the issuance of up to 5 million shares of common stock in the form of incentive and non-qualified stock options, stock appreciation rights, RSUs, stock grants, stock units, performance shares, performance share units and performance cash. Additionally, pursuant to the terms of the Incentive Plan, any award outstanding under the Prior Plan that is terminated, expired, forfeited, or canceled for any reason, will be available for grant under the Incentive Plan. During the six months ended June 30, 2018, a total of 14,964 restricted stock units (“RSUs”) vested and shares were issued with an intrinsic and a fair value of $0.1 million. During the six months ended June 30, 2018, stock options to purchase an aggregate of 1,361,259 shares of the Company’s common stock were exercised at a weighted average exercise price of $3.14 per share. Of that amount, 945,000 of the options were exercised on a net exercise basis, resulting in 244,345 shares being delivered. The remaining 416,259 options were exercised for cash . Stock-based compensation expense for stock options and RSUs is as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (in thousands) Stock options $ 181 $ 133 $ 355 $ 264 Restricted stock units 68 50 130 119 Total $ 249 $ 183 $ 485 $ 383 Total stock-based compensation related to stock options and RSUs has been allocated between production costs, general and administrative expenses, and exploration expense as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (in thousands) Production costs $ 20 $ 15 $ 12 $ 29 General and administrative expenses 201 161 424 340 Exploration expense 28 7 49 14 Total $ 249 $ 183 $ 485 $ 383 The Company sponsors a short-term incentive plan for its executive officers that provides the grant of either cash or stock-based bonus awards payable upon achievement of specified performance metrics (the “STIP”). As of June 30, 2018, $0.2 million has been accrued and is included in accrued expenses and other current liabilities on the accompanying Condensed Consolidated Balance Sheet .

Other Expense, Net

Other Expense, Net	6 Months Ended
	Jun. 30, 2018
Other Expense, Net
Other Expense, Net	16. Other Expense, net Other expense, net, consisted of the following: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (in thousands) Unrealized currency exchange loss (gain) $ 1,100 $ (625) $ 74 $ (27) Realized currency exchange (gain) loss (735) 929 589 993 Unrealized loss (gain) from gold and silver rounds/bullion, net (1) 159 148 141 (156) Loss on disposal of fixed assets - 205 5 301 Other income (14) (48) (21) (38) Total $ 510 $ 609 $ 788 $ 1,073 (1) Gains and losses due to changes in fair value are non-cash in nature until such time that they are realized through cash transactions. For additional information regarding our fair value measurements and investments, please see Note 18 .

Net Income per Common Share

Net Income per Common Share	6 Months Ended
	Jun. 30, 2018
Net Income per Common Share
Net Income per Common Share	17. Net Income per Common Share Basic earnings per common share is calculated based on the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated based on the assumption that stock options outstanding, which have an exercise price less than the average market price of the Company’s common shares during the period, would have been exercised on the later of the beginning of the period or the date granted and that the funds obtained from the exercise were used to purchase common shares at the average market price during the period. All the Company’s restricted stock units are considered to be dilutive. The effect of the Company’s dilutive securities is calculated using the treasury stock method and only those instruments that result in a reduction in net income per common share are included in the calculation. Options to purchase 3.0 million and 2.8 million shares of common stock at weighted average exercise prices of $11.65 and $9.42 were outstanding at June 30, 2018 and 2017, respectively, but were not included in the computation of diluted weighted average common shares outstanding, as the exercise price of the options exceeded the average price of the Company’s common stock during those periods, and therefore are anti-dilutive. Basic and diluted net income per common share is calculated as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Net income (in thousands) $ 3,754 $ 864 $ 9,211 $ 5,240 Basic weighted average shares of common stock outstanding 57,315,472 56,839,823 57,218,389 56,818,406 Dilutive effect of share-based awards 998,651 536,115 934,961 926,411 Diluted weighted average common shares outstanding 58,314,123 57,375,938 58,153,350 57,744,817 Net income per share: Basic $ 0.07 $ 0.02 $ 0.16 $ 0.09 Diluted $ 0.06 $ 0.02 $ 0.16 $ 0.09

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Jun. 30, 2018
Fair Value Measurement
Fair Value Measurement	18. Fair Value Measurement Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Level 2 Level 3 As required by accounting guidance, assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table sets forth certain of the Company’s assets measured at fair value by level within the fair value hierarchy as of June 30, 2018 and December 31, 2017: 2018 2017 Input Hierarchy Level (in thousands) Cash and cash equivalents: Bank deposits $ 26,645 $ 22,390 Level 1 Gold and silver rounds/bullion 3,664 3,812 Level 1 Accounts receivable: Receivables from provisional concentrate sales 1,727 2,884 Level 2 $ 32,036 $ 29,086 Cash and cash equivalents consist primarily of cash deposits and are valued at cost, which approximates fair value. Gold and silver rounds/bullion consist of precious metals used for investment purposes and in the dividend program which are valued using quoted market prices. Please see Note 4 for additional information. The Company determined that it was not practicable to estimate the fair value of its non-current investment in equity securities of $0.2 million and as such, it is reported at cost. There have been no events or changes in circumstances that may have a significant adverse effect on the investment. Trade accounts receivable include amounts due to the Company for deliveries of concentrates and doré sold to customers. Concentrate sales contracts provide for provisional pricing as specified in such contracts. These sales contain an embedded derivative related to the provisional pricing mechanism which is bifurcated and accounted for as a derivative. At the end of each reporting period, the Company records an adjustment to sales to reflect the mark-to-market of outstanding provisional invoices based on the forward price curve. Because these provisionally priced sales have not yet settled as of the reporting date, the mark-to-market adjustment related to these invoices is included in accounts receivable as of each reporting date. At June 30, 2018 and December 31, 2017, the Company had an unrealized loss of $2.3 million and an unrealized gain of $0.4 million, respectively, included in its accounts receivable on the accompanying Condensed Consolidated Balance Sheets. Please see Note 14 for additional information. Gains and losses related to changes in the fair value of these financial instruments were included in the Company’s Condensed Consolidated Statements of Operations as shown in the following table: Three months Six months 2018 2017 2018 2017 Statement of Operations Classification (in thousands) Realized/unrealized derivative (loss) gain $ (2,303) $ (24) $ (1,732) $ 511 Sales, net Gold and silver rounds/bullion (loss) gain $ (160) $ (148) $ (144) $ 154 Other expense, net Realized/Unrealized Derivatives The following tables summarize the Company’s realized/unrealized derivatives (in thousands) . Gold Silver Copper Lead Zinc Total Three months ended June 30, 2018 Realized gain (loss) $ - $ - $ - $ - $ - $ - Unrealized (loss) gain $ (38) $ 13 $ (103) $ (138) $ (2,037) $ (2,303) Gold Silver Copper Lead Zinc Total Three months ended June 30, 2017 Realized gain (loss) $ 177 $ 236 $ 23 $ 12 $ (220) $ 228 Unrealized (loss) gain $ (138) $ (236) $ (7) $ 2 $ 127 $ (252) Gold Silver Copper Lead Zinc Total Six months ended June 30, 2018 Realized gain (loss) $ 14 $ (53) $ 53 $ (5) $ 991 $ 1,000 Unrealized gain (loss) $ 62 $ 162 $ (203) $ (161) $ (2,592) $ (2,732) Gold Silver Copper Lead Zinc Total Six months ended June 30, 2017 Realized gain (loss) $ 129 $ 190 $ 37 $ 48 $ (177) $ 227 Unrealized gain (loss) $ 32 $ (9) $ 19 $ 60 $ 182 $ 284

Supplementary Cash-Flow Informa

Supplementary Cash-Flow Information	6 Months Ended
	Jun. 30, 2018
Supplementary Cash-Flow Information
Supplementary Cash-Flow Information	19. Supplementary Cash Flow Information Other operating adjustments and write-downs within the net cash provided by operations on the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2018 and 2017 consisted of the following: 2018 2017 (in thousands) Unrealized loss (gain) on gold and silver rounds/bullion $ 141 $ (156) Unrealized foreign currency exchange loss (gain) 74 (27) Loss on disposition of fixed assets 5 301 Other 144 30 Total other operating adjustments $ 364 $ 148

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 30, 2018
Segment Reporting
Segment Reporting	20. Segment Reporting The Company has organized its operations into two geographic regions. The geographic regions include Oaxaca, Mexico and Nevada, U.S.A. and represent the Company’s operating segments. Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. The Company’s business activities that are not considered operating segments are included in Corporate and Other. The financial information relating to the Company’s segments is as follows ( in thousands ): Mexico Nevada Corporate and Other Consolidated Three months ended June 30, 2018 Revenue $ 30,768 $ - $ - $ 30,768 Exploration expense 490 726 35 1,251 Net income (loss) 7,036 (791) (2,491) 3,754 Capital expenditures 5,832 3,055 - 8,887 Mexico Nevada Corporate and Other Consolidated Three months ended June 30, 2017 Revenue $ 21,391 $ - $ - $ 21,391 Exploration expense 226 873 37 1,136 Net income (loss) 3,629 (874) (1,891) 864 Capital expenditures 5,057 3,550 3 8,610 Mexico Nevada Corporate and Other Consolidated Six months ended June 30, 2018 Revenue $ 62,919 $ - $ - $ 62,919 Exploration expense 986 1,377 73 2,436 Net income (loss) 15,624 (1,499) (4,914) 9,211 Capital expenditures (1) 11,704 4,322 - 16,026 Mexico Nevada Corporate and Other Consolidated Six months ended June 30, 2017 Revenue $ 45,727 $ - $ - $ 45,727 Exploration expense 604 1,277 77 1,958 Net income (loss) 10,066 (1,286) (3,540) 5,240 Capital expenditures (2) 10,114 6,344 9 16,467 (1) Includes an increase in accrued capital expenditures of $918; consolidated capital expenditures on a cash basis were $15,108. (2) Includes an increase in accrued capital expenditures of $4,328 and non-cash additions of $1,321; consolidated capital expenditures on a cash basis were $10,818 . Total asset balances, excluding intercompany balances at June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (in thousands) Mexico $ 98,736 $ 87,739 Nevada 30,181 25,741 Corporate and Other 17,232 19,443 Consolidated $ 146,149 $ 132,923 Revenue Concentration During the three and six months ended June 30, 2018 and 2017, one customer accounted for 94% of the Company’s revenue.

Basis of Preparation of Finan27

Basis of Preparation of Financial Statements (Policy)	6 Months Ended
	Jun. 30, 2018
Basis of Preparation of Financial Statements
Basis of Presentation	The interim Condensed Consolidated Financial Statements (“interim financial statements”) of Gold Resource Corporation and its subsidiaries (collectively, the “Company”) are unaudited and have been prepared in accordance with the rules of the Securities and Exchange Commission for interim statements. Certain information and footnote disclosures required by United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been condensed or omitted although the Company believes that the disclosures included are adequate to make the information presented not misleading. In the opinion of management, all adjustments (including normal recurring adjustments) and disclosures necessary for a fair presentation of these interim financial statements have been included. The results reported in these interim financial statements are not necessarily indicative of the results that may be reported for the entire year. These interim financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2017 included in the Company’s annual report on Form 10-K. The year-end balance sheet data was derived from the audited financial statements. Unless otherwise noted, there have been no material changes to the footnotes from those accompanying the audited consolidated financial statements contained in the Company’s annual report on Form 10-K.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements (Policy)	6 Months Ended
	Jun. 30, 2018
Recent Accounting Pronouncements
Recently Issued Accounting Pronouncements	Recently Adopted Accounting Pronouncements Accounting Standards Update No. 2014-09—Revenue from Contracts with Customers (Topic 606). On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued guidance that requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This ASU was further amended in August 2015, March 2016, April 2016, May 2016 and December 2016 by ASU No. 2015-14, No. 2016-08, No. 2016-10, No. 2016-12 and No. 2016-20, respectively. The guidance provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. On January 1, 2018, the Company adopted the new accounting guidance for all contracts using the retrospective approach. The adoption of this new guidance did not result in any changes to previously reported revenue amounts. Please see Note 3 for more information. In March 2018, the Company adopted Accounting Standards Update No. 2018-05—I ncome Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , which updates the income tax accounting in U.S. GAAP to reflect the Securities and Exchange Commission (“SEC”) interpretive guidance released on December 22, 2017, when the Tax Cuts and Jobs Act was signed into law. Please see Note 6 for additional information. Recently Issued Accounting Pronouncements Accounting Standards Update No. 2016-02 — Leases (Topic 842). I n February 2016, the FASB issued a new standard regarding leases. Lessees will be required to recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and a lease liability. Public business entities are required to adopt the new leasing standard for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For calendar year-end public entities, this means an adoption date of January 1, 2019. Early adoption is permitted. T he Company anticipates adopting the new guidance effective January 1, 2019 . The Company has begun its assessment of the new guidance and the impact it will have on the consolidated financial statements and disclosures and expects to complete its analysis in 2018. Management is still completing its assessment of the impacts; however, based on preliminary findings, the Company expects that the majority of its identified leases will be required to be reported on the Consolidated Balance Sheets. Based on the preliminary assessment, the Company expects there will be minimal impacts to the Consolidated Statements of Operations. The Company expects to have an update to the impacts of the standard in the third quarter of 2018. Accounting Standards Update No. 2018-07 — Compensation — Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting” (“ASU 2018-07”). In June 2018, the FASB issued new guidance regarding accounting for stock compensation. The new guidance expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from non-employees. ASU 2018-07 specifies that Topic 718 applies to all share-based payment transactions in which the grantor acquires goods and services to be used or consumed in its own operations by issuing share-based payment awards. ASU 2018-07 also clarifies that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC 606. ASU 2018-07 is effective for public entities beginning December 1, 2019, with early adoption permitted, but no earlier than the adoption of ASC 606. The Company is currently evaluating the potential impact of adopting this guidance on its consolidated financial statements.

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue
Revenue from the sale of dore and concentrate	Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (in thousands) (in thousands) Doré sales, net Gold $ 1,722 $ 1,435 $ 3,631 $ 3,062 Silver 472 21 769 42 Less: Refining charges (38) (5) (63) (22) Total doré sales, net 2,156 1,451 4,337 3,082 Concentrate sales Gold 5,396 4,514 10,937 11,600 Silver 8,803 5,604 14,884 12,892 Copper 2,638 1,219 5,018 2,529 Lead 3,498 2,316 7,345 4,254 Zinc 11,841 7,790 25,225 13,846 Less: Treatment and refining charges (1,261) (1,479) (3,095) (2,987) Total concentrate sales, net 30,915 19,964 60,314 42,134 Realized/unrealized embedded derivative, net (2,303) (24) (1,732) 511 Total sales, net $ 30,768 $ 21,391 $ 62,919 $ 45,727

Gold and Silver Bullion (Tables

Gold and Silver Bullion (Tables)	6 Months Ended
	Jun. 30, 2018
Gold and Silver Bullion
Schedule of Company's Holdings	2018 2017 Ounces Per Ounce Amount Ounces Per Ounce Amount (in thousands) (in thousands) Gold 1,904 $ 1,250 $ 2,380 1,905 $ 1,291 $ 2,459 Silver 80,099 $ 16.03 1,284 80,224 $ 16.87 1,353 Total holdings $ 3,664 $ 3,812

Inventories, net (Tables)

Inventories, net (Tables)	6 Months Ended
	Jun. 30, 2018
Inventories, net
Summary of Inventories	2018 2017 (in thousands) Stockpiles - underground mine $ 1,165 $ 1,450 Stockpiles - open pit mine 132 101 Concentrates and doré 2,123 2,367 Materials and supplies (1) 9,122 7,718 Total $ 12,542 $ 11,636 Net of reserve for obsolescence of $734 and $743, respectively.

Prepaid Expenses and Other Cu32

Prepaid Expenses and Other Current Assets (Tables)	6 Months Ended
	Jun. 30, 2018
Prepaid Expenses And Other Current Assets
Schedule of prepaid and other assets	2018 2017 (in thousands) Advances to suppliers $ 423 $ 163 Prepaid insurance 665 869 Vendor deposits 224 501 IVA taxes receivable, net 111 - Other current assets 238 234 Total $ 1,661 $ 1,767

Property, Plant and Mine Deve33

Property, Plant and Mine Development, net (Tables)	6 Months Ended
	Jun. 30, 2018
Property, Plant and Mine Development, net
Schedule of property, plant and mine development	2018 2017 (in thousands) Asset retirement costs $ 969 $ 1,079 Construction-in-progress (1) 17,844 10,838 Furniture and office equipment 1,711 1,664 Land 242 242 Light vehicles and other mobile equipment 2,244 2,211 Machinery and equipment 23,960 22,916 Mill facilities and infrastructure 10,817 10,075 Mineral interests and mineral rights 17,958 17,658 Mine development 63,760 56,957 Software and licenses 1,659 1,678 Subtotal (2) (3) 141,164 125,318 Accumulated depreciation and amortization (50,040) (42,719) Total $ 91,124 $ 82,599 (1) Includes Isabella Pearl asset and development costs of $11.3 million and $7.4 million at June 30, 2018 and December 31, 2017, respectively. (2) Includes $1.6 million of assets recorded under capital leases at June 30, 2018 and December 31, 2017. Please see Note 12 for additional information. (3) Includes accrued capital expenditures of $2.0 and $1.0 million at June 30, 2018 and December 31, 2017, respectively.

Accrued Expenses and Other Cu34

Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2018
Accrued Expenses and Other Current Liabilities
Schedule of Accrued Expenses and Other Current Liabilities	2018 2017 (in thousands) Accrued insurance $ 88 $ 662 Accrued royalty payments 2,585 1,805 Dividends payable 96 95 IVA taxes payable, net - 274 Other payables 249 15 Total $ 3,018 $ 2,851

Reclamation and Remediation (Ta

Reclamation and Remediation (Tables)	6 Months Ended
	Jun. 30, 2018
Reclamation And Remediation
Changes in Reclamation and Remediation	2018 2017 (in thousands) Reclamation liabilities – balance at beginning of period $ $ 1,907 Changes in estimate - 10 Foreign currency exchange (gain) loss 88 Reclamation liabilities – balance at end of period 2,005 Asset retirement obligation – balance at beginning of period 518 Changes in estimate - 366 Accretion expense 35 Foreign currency exchange (gain) loss 22 Asset retirement obligation – balance at end of period 941 Total period end balance $ $ 2,946

Capital Lease (Tables)

Capital Lease (Tables)	6 Months Ended
	Jun. 30, 2018
Capital Lease
Schedule Of Capital Lease Obligations	Year Ending December 31: 2018 $ 232 2019 461 2020 461 2021 397 Total minimum obligations 1,551 Interest portion (139) Present value of net minimum payments 1,412 Less: current portion (393) Non-current portion $ 1,019

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies
Schedule of Future Minimum Rental Payments for Operating Leases	Payments due by Period Total 2018 2019 2020 2021 2022 and (in thousands) Operating leases $ 361 $ 102 $ 113 $ 74 $ 72 $ -

Embedded Derivatives (Tables)

Embedded Derivatives (Tables)	6 Months Ended
	Jun. 30, 2018
Embedded Derivatives
Summary of unsettled sales contracts	Gold Silver Copper Lead Zinc (ounces) (ounces) (tonnes) (tonnes) (tonnes) Under contract 8,928 891,195 740 2,941 7,959 Average forward price (per ounce or tonne) $ 1,318 $ 16.61 $ 6,934 $ 2,440 $ 3,263

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2018
Stock-Based Compensation.
Stock-based compensation expense	Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (in thousands) Stock options $ 181 $ 133 $ 355 $ 264 Restricted stock units 68 50 130 119 Total $ 249 $ 183 $ 485 $ 383
Schedule Of Stock-Based Compensation Expense Allocated Between Production And General And Administrative Expense	Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (in thousands) Production costs $ 20 $ 15 $ 12 $ 29 General and administrative expenses 201 161 424 340 Exploration expense 28 7 49 14 Total $ 249 $ 183 $ 485 $ 383

Other Expense, Net (Tables)

Other Expense, Net (Tables)	6 Months Ended
	Jun. 30, 2018
Other Expense, Net
Schedule of Other (Expense) Income, Net	Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (in thousands) Unrealized currency exchange loss (gain) $ 1,100 $ (625) $ 74 $ (27) Realized currency exchange (gain) loss (735) 929 589 993 Unrealized loss (gain) from gold and silver rounds/bullion, net (1) 159 148 141 (156) Loss on disposal of fixed assets - 205 5 301 Other income (14) (48) (21) (38) Total $ 510 $ 609 $ 788 $ 1,073 Gains and losses due to changes in fair value are non-cash in nature until such time that they are realized through cash transactions. For additional information regarding our fair value measurements and investments, please see Note 18 .

Net Income per Common Share (Ta

Net Income per Common Share (Tables)	6 Months Ended
	Jun. 30, 2018
Net Income per Common Share
Net Income Per Share	Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Net income (in thousands) $ 3,754 $ 864 $ 9,211 $ 5,240 Basic weighted average shares of common stock outstanding 57,315,472 56,839,823 57,218,389 56,818,406 Dilutive effect of share-based awards 998,651 536,115 934,961 926,411 Diluted weighted average common shares outstanding 58,314,123 57,375,938 58,153,350 57,744,817 Net income per share: Basic $ 0.07 $ 0.02 $ 0.16 $ 0.09 Diluted $ 0.06 $ 0.02 $ 0.16 $ 0.09

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Measurement
Assets measured at fair value by level within fair value hierarchy	2018 2017 Input Hierarchy Level (in thousands) Cash and cash equivalents: Bank deposits $ 26,645 $ 22,390 Level 1 Gold and silver rounds/bullion 3,664 3,812 Level 1 Accounts receivable: Receivables from provisional concentrate sales 1,727 2,884 Level 2 $ 32,036 $ 29,086
Gains and Losses Related to Changes in Fair Value	Three months Six months 2018 2017 2018 2017 Statement of Operations Classification (in thousands) Realized/unrealized derivative (loss) gain $ (2,303) $ (24) $ (1,732) $ 511 Sales, net Gold and silver rounds/bullion (loss) gain $ (160) $ (148) $ (144) $ 154 Other expense, net
Realized and Unrealized Gain Losses on Derivatives	Gold Silver Copper Lead Zinc Total Three months ended June 30, 2018 Realized gain (loss) $ - $ - $ - $ - $ - $ - Unrealized (loss) gain $ (38) $ 13 $ (103) $ (138) $ (2,037) $ (2,303) Gold Silver Copper Lead Zinc Total Three months ended June 30, 2017 Realized gain (loss) $ 177 $ 236 $ 23 $ 12 $ (220) $ 228 Unrealized (loss) gain $ (138) $ (236) $ (7) $ 2 $ 127 $ (252) Gold Silver Copper Lead Zinc Total Six months ended June 30, 2018 Realized gain (loss) $ 14 $ (53) $ 53 $ (5) $ 991 $ 1,000 Unrealized gain (loss) $ 62 $ 162 $ (203) $ (161) $ (2,592) $ (2,732) Gold Silver Copper Lead Zinc Total Six months ended June 30, 2017 Realized gain (loss) $ 129 $ 190 $ 37 $ 48 $ (177) $ 227 Unrealized gain (loss) $ 32 $ (9) $ 19 $ 60 $ 182 $ 284

Supplementary Cash-Flow Infor43

Supplementary Cash-Flow Information (Tables)	6 Months Ended
	Jun. 30, 2018
Supplementary Cash-Flow Information
Schedule of Supplementary Cash Flow Information	2018 2017 (in thousands) Unrealized loss (gain) on gold and silver rounds/bullion $ 141 $ (156) Unrealized foreign currency exchange loss (gain) 74 (27) Loss on disposition of fixed assets 5 301 Other 144 30 Total other operating adjustments $ 364 $ 148

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting
Schedule of financial information relating to the Company segments	Mexico Nevada Corporate and Other Consolidated Three months ended June 30, 2018 Revenue $ 30,768 $ - $ - $ 30,768 Exploration expense 490 726 35 1,251 Net income (loss) 7,036 (791) (2,491) 3,754 Capital expenditures 5,832 3,055 - 8,887 Mexico Nevada Corporate and Other Consolidated Three months ended June 30, 2017 Revenue $ 21,391 $ - $ - $ 21,391 Exploration expense 226 873 37 1,136 Net income (loss) 3,629 (874) (1,891) 864 Capital expenditures 5,057 3,550 3 8,610 Mexico Nevada Corporate and Other Consolidated Six months ended June 30, 2018 Revenue $ 62,919 $ - $ - $ 62,919 Exploration expense 986 1,377 73 2,436 Net income (loss) 15,624 (1,499) (4,914) 9,211 Capital expenditures (1) 11,704 4,322 - 16,026 Mexico Nevada Corporate and Other Consolidated Six months ended June 30, 2017 Revenue $ 45,727 $ - $ - $ 45,727 Exploration expense 604 1,277 77 1,958 Net income (loss) 10,066 (1,286) (3,540) 5,240 Capital expenditures (2) 10,114 6,344 9 16,467 (1) Includes an increase in accrued capital expenditures of $918; consolidated capital expenditures on a cash basis were $15,108. (2) Includes an increase in accrued capital expenditures of $4,328 and non-cash additions of $1,321; consolidated capital expenditures on a cash basis were $10,818 .
Schedule of asset balances, excluding investments and intercompany	2018 2017 (in thousands) Mexico $ 98,736 $ 87,739 Nevada 30,181 25,741 Corporate and Other 17,232 19,443 Consolidated $ 146,149 $ 132,923

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Realized/unrealized embedded derivative, net	$ (2,303)	$ (24)	$ (1,732)	$ 511
Sales Revenue, Goods, Net, Total	30,768	21,391	$ 62,919	45,727
Concentrate Sale Percentage Based On Provisional Sales Price			100.00%
Dore [Member]
Disaggregation of Revenue [Line Items]
Less: Treatment and refining charges	(38)	(5)	$ (63)	(22)
Total sales, net	2,156	1,451	4,337	3,082
Dore [Member] | Gold
Disaggregation of Revenue [Line Items]
Sales	1,722	1,435	3,631	3,062
Dore [Member] | Silver
Disaggregation of Revenue [Line Items]
Sales	472	21	769	42
Concentrate [Member]
Disaggregation of Revenue [Line Items]
Less: Treatment and refining charges	(1,261)	(1,479)	(3,095)	(2,987)
Total sales, net	30,915	19,964	60,314	42,134
Concentrate [Member] | Gold
Disaggregation of Revenue [Line Items]
Sales	5,396	4,514	10,937	11,600
Concentrate [Member] | Silver
Disaggregation of Revenue [Line Items]
Sales	8,803	5,604	14,884	12,892
Concentrate [Member] | Copper
Disaggregation of Revenue [Line Items]
Sales	2,638	1,219	5,018	2,529
Concentrate [Member] | Lead
Disaggregation of Revenue [Line Items]
Sales	3,498	2,316	7,345	4,254
Concentrate [Member] | Zinc
Disaggregation of Revenue [Line Items]
Sales	$ 11,841	$ 7,790	$ 25,225	$ 13,846

Gold and Silver Bullion (Detail

Gold and Silver Bullion (Details) - oz	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Gold
Schedule Of Investments [Line Items]
Purchases of bullion	0	151.55

Gold and Silver Bullion - Bulli

Gold and Silver Bullion - Bullion Holdings (Details) $ in Thousands	Jun. 30, 2018USD ($)oz$ / oz	Dec. 31, 2017USD ($)oz$ / oz
Schedule of Investments [Line Items]
Total carrying value	$ 3,664	$ 3,812
Gold
Schedule of Investments [Line Items]
Ounces | oz	1,904	1,905
Carrying value per ounce | $ / oz	1,250	1,291
Total carrying value	$ 2,380	$ 2,459
Silver
Schedule of Investments [Line Items]
Ounces | oz	80,099	80,224
Carrying value per ounce | $ / oz	16.03	16.87
Total carrying value	$ 1,284	$ 1,353

Inventories, net (Details)

Inventories, net (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Inventories, net
Stockpiles - underground mine	$ 1,165	$ 1,450
Stockpiles - open pit mine	132	101
Concentrates and dore	2,123	2,367
Materials and supplies	9,122	7,718
Inventories - current	12,542	11,636
Inventory reserve	$ 734	$ 743

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Income Taxes
Effective tax rate			21.00%		35.00%
Income tax (benefit) expense	$ 1,781,000	$ 942,000	$ 5,427,000	$ 3,884,000
Fuel tax credits	1,100,000	$ 900,000	$ 2,100,000	$ 1,600,000
Withholding tax on dividends			10.00%
Dividend withholding tax between countries			5.00%
Liability for uncertain tax positions	$ 0		$ 0

Prepaid Expenses and Other Cu50

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Prepaid Expenses And Other Current Assets
Advances to suppliers	$ 423	$ 163
Prepaid insurance	665	869
Vendor deposits	224	501
IVA taxes receivable, net	111
Other current assets	238	234
Total	$ 1,661	$ 1,767

Property, Plant and Mine Deve51

Property, Plant and Mine Development, net - Summary of Property, Equipment and Mine Development (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Property, equipment and mine development - net
Property and equipment, gross	$ 141,164	$ 125,318
Accumulated depreciation, depletion and amortization	(50,040)	(42,719)
Total property, equipment and mine development - net	91,124	82,599
Asset and development costs	11,300	7,400
Capital lease obligations	1,551	1,600
Accrued capital expenditures	2,000	1,000
Asset retirement costs
Property, equipment and mine development - net
Property and equipment, gross	969	1,079
Construction-in-progress
Property, equipment and mine development - net
Property and equipment, gross	17,844	10,838
Furniture and office equipment
Property, equipment and mine development - net
Property and equipment, gross	1,711	1,664
Land
Property, equipment and mine development - net
Property and equipment, gross	242	242
Light vehicles and other mobile equipment
Property, equipment and mine development - net
Property and equipment, gross	2,244	2,211
Machinery and equipment
Property, equipment and mine development - net
Property and equipment, gross	23,960	22,916
Mill facilities and infrastructure
Property, equipment and mine development - net
Property and equipment, gross	10,817	10,075
Mineral Interests And Mineral Rights
Property, equipment and mine development - net
Property and equipment, gross	17,958	17,658
Mine development
Property, equipment and mine development - net
Property and equipment, gross	63,760	56,957
Software and licenses
Property, equipment and mine development - net
Property and equipment, gross	$ 1,659	$ 1,678

Property, Plant and Mine Deve52

Property, Plant and Mine Development, net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Property, Plant and Mine Development, net
Depletion, depreciation and amortization	$ 3,700	$ 4,000	$ 7,386	$ 6,727

Accrued Expenses and Other Cu53

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Accrued Expenses and Other Current Liabilities
Accrued insurance	$ 88	$ 662
Accrued royalty payments	2,585	1,805
Dividends payable	96	95
IVA taxes payable, net		274
Other payables	249	15
Accrued expenses and other current liabilities	$ 3,018	$ 2,851

Reclamation and Remediation (De

Reclamation and Remediation (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Asset Retirement Obligation, Roll Forward Analysis
Reclamation liabilities – balance at beginning of period	$ 2,005	$ 1,907
Changes in estimate		10
Foreign currency exchange loss	(15)	88
Reclamation liabilities – balance at end of period	1,990	2,005
Asset retirement obligation – balance at beginning of period	941	518
Changes in estimate		366
Accretion expense	40	35
Foreign currency exchange loss	(10)	22
Asset retirement obligation – balance at end of period	971	941
Total period end balance	$ 2,961	$ 2,946
Reclamation and remediation discount rate	8.00%	8.00%
Reclamation bond	$ 9,200

Loan Payable (Details)

Loan Payable (Details) - USD ($) $ in Thousands	Aug. 08, 2017	Jun. 30, 2018
Debt Instrument [Line Items]
Term loan	48 months
Loan amount	$ 2,400
Interest rate		4.48%
Periodic payment		$ 50
Outstanding loan		1,900
Minimum repayment in remainder of 2018		300
2,019		600
2,020		600
2,021		$ 400
Minimum
Debt Instrument [Line Items]
Repayment penalty, percentage		1.00%
Maximum
Debt Instrument [Line Items]
Repayment penalty, percentage		3.00%

Capital Lease (Details)

Capital Lease (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Capital Lease
Monthly principal, interest and sales tax payment	$ 40
Capital lease interest rate	5.95%
2,018	$ 232
2,019	461
2,020	461
2,021	397
Total minimum obligations	1,551	$ 1,600
Interest portion	(139)
Present value of net minimum payments	1,412
Less current portion	(393)	(382)
Non-current portion	$ 1,019	$ 1,218

Commitments and Contingencies57

Commitments and Contingencies (Narrative) (Details) $ in Millions	Jun. 30, 2018USD ($)
Commitments and Contingencies
Equipment purchase commitments	$ 2.3

Commitments and Contingencies58

Commitments and Contingencies (Minimum Rental Payments) (Details) $ in Thousands	Jun. 30, 2018USD ($)
Commitments and Contingencies
Operating leases, Total	$ 361
Operating leases, 2018	102
Operating leases, 2019	113
Operating leases, 2020	74
Operating leases, 2021	$ 72

Embedded Derivatives (Details)

Embedded Derivatives (Details)	6 Months Ended
	Jun. 30, 2018ozt$ / oz$ / t
Gold
Embedded Derivative [Line Items]
Under contract | oz	8,928
Average forward price | $ / oz	1,318
Silver
Embedded Derivative [Line Items]
Under contract | oz	891,195
Average forward price | $ / oz	16.61
Copper
Embedded Derivative [Line Items]
Under contract | t	740
Average forward price | $ / t	6,934
Lead
Embedded Derivative [Line Items]
Under contract | t	2,941
Average forward price | $ / t	2,440
Zinc
Embedded Derivative [Line Items]
Under contract | t	7,959
Average forward price | $ / t	3,263

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity Incentive plan shares for issuance authorized	5,000,000
Number of shares purchased	1,361,259
Stock options exercise price	$ 3.14
Number of shares exercised on a net exercise basis	945,000
Number of shares exercised and delivered	244,345
Number of shares exercised for cash	416,259
Accrued expenses and other current liabilities	$ 3,018	$ 2,851
STIP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accrued expenses and other current liabilities	$ 200
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options that vested	14,964
Total intrinsic value	$ 100
Fair value	$ 100

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Stock-Based Compensation.
Stock options	$ 181	$ 133	$ 355	$ 264
Restricted stock units	68	50	130	119
Total stock-based compensation	$ 249	$ 183	$ 485	$ 383

Stock-Based Compensation - Allo

Stock-Based Compensation - Allocation of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Stock-Based Compensation.
Production costs	$ 20	$ 15	$ 12	$ 29
General and administrative expenses	201	161	424	340
Exploration expense	28	7	49	14
Total stock-based compensation	$ 249	$ 183	$ 485	$ 383

Other Expense, Net (Details)

Other Expense, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Other Expense, Net
Unrealized currency exchange loss (gain)	$ 1,100	$ (625)	$ 74	$ (27)
Realized currency exchange (gain) loss	(735)	929	589	993
Unrealized (gain) loss from gold and silver rounds/bullion, net	159	148	141	(156)
Loss on disposal of fixed assets		205	5	301
Other (income) expense	(14)	(48)	(21)	(38)
Total	$ 510	$ 609	$ 788	$ 1,073

Net Income per Common Share - N

Net Income per Common Share - Narrative (Details) - $ / shares shares in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Net Income per Common Share
Stock options excluded from computation of diluted weighted average share outstanding	3	2.8
Shares excluded from weighted average shares outstanding, exercise price	$ 11.65	$ 9.42

Net Income per Common Share - P

Net Income per Common Share - Potential Dilutive Stock Options On Weighted Average Shares Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Net Income per Common Share
Net income	$ 3,754	$ 864	$ 9,211	$ 5,240	$ 4,150
Basic weighted average shares of common stock outstanding	57,315,472	56,839,823	57,218,389	56,818,406
Dilutive effect of stock-based awards	998,651	536,115	934,961	926,411
Diluted weighted average common shares outstanding	58,314,123	57,375,938	58,153,350	57,744,817
Net income per common share:
Basic	$ 0.07	$ 0.02	$ 0.16	$ 0.09
Diluted	$ 0.06	$ 0.02	$ 0.16	$ 0.09

Fair Value Measurement (Details

Fair Value Measurement (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Total	$ 32,036	$ 29,086
Fair value of non-current investment in equity securities	200
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash bank deposits	26,645	22,390
Gold and silver rounds/bullion	3,664	3,812
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivables from provisional concentrate sales	$ 1,727	$ 2,884

Fair Value Measurement - Statem

Fair Value Measurement - Statement Of Income Classification (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Fair Value Statement Of Income Classification [Line Items]
Derivative gain (loss)			$ (2,300)		$ 400
Sales
Fair Value Statement Of Income Classification [Line Items]
Derivative gain (loss)	$ (2,303)	$ (24)	(1,732)	$ 511
Other Operating Income (Expense)
Fair Value Statement Of Income Classification [Line Items]
Gold and silver rounds/bullion gain (loss)	$ (160)	$ (148)	$ (144)	$ 154

Fair Value Measurement - Realiz

Fair Value Measurement - Realized Unrealized Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Derivatives, Fair Value [Line Items]
Realized gain (loss)		$ 228	$ 1,000	$ 227
Unrealized gain (loss)	$ (2,303)	(252)	(2,732)	284
Gold
Derivatives, Fair Value [Line Items]
Realized gain (loss)		177	14	129
Unrealized gain (loss)	(38)	(138)	62	32
Silver
Derivatives, Fair Value [Line Items]
Realized gain (loss)		236	(53)	190
Unrealized gain (loss)	13	(236)	162	(9)
Copper
Derivatives, Fair Value [Line Items]
Realized gain (loss)		23	53	37
Unrealized gain (loss)	(103)	(7)	(203)	19
Lead
Derivatives, Fair Value [Line Items]
Realized gain (loss)		12	(5)	48
Unrealized gain (loss)	(138)	2	(161)	60
Zinc
Derivatives, Fair Value [Line Items]
Realized gain (loss)		(220)	991	(177)
Unrealized gain (loss)	$ (2,037)	$ 127	$ (2,592)	$ 182

Supplementary Cash-Flow Infor69

Supplementary Cash-Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Supplementary Cash-Flow Information
Unrealized (gain) loss on gold and silver rounds/bullion			$ 141	$ (156)
Unrealized foreign currency exchange loss (gain)Unrealized foreign currency exchange loss (gain)	$ 1,100	$ (625)	74	(27)
Loss on disposition of fixed assets			5	301
Other			144	30
Total other operating adjustments			$ 364	$ 148

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)segment	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Number of reportable segments | segment			2
Revenue	$ 30,768	$ 21,391	$ 62,919	$ 45,727
Exploration expenses	1,251	1,136	2,436	1,958
Net income (loss)	3,754	864	9,211	5,240	$ 4,150
Capital expenditures	8,887	$ 8,610	16,026	16,467
Accrued capital expenditures			(918)	(4,328)
Non - cash additions				1,321
Capital expenditures on a cash basis			15,108	$ 10,818
Assets	$ 146,149		$ 146,149		132,923
Concentration risk	94.00%	94.00%	94.00%	94.00%
Mexico
Revenue	$ 30,768	$ 21,391	$ 62,919	$ 45,727
Exploration expenses	490	226	986	604
Net income (loss)	7,036	3,629	15,624	10,066
Capital expenditures	5,832	5,057	11,704	10,114
Assets	98,736		98,736		87,739
Nevada
Exploration expenses	726	873	1,377	1,277
Net income (loss)	(791)	(874)	(1,499)	(1,286)
Capital expenditures	3,055	3,550	4,322	6,344
Assets	30,181		30,181		25,741
Corporate and Other
Exploration expenses	35	37	73	77
Net income (loss)	(2,491)	(1,891)	(4,914)	(3,540)
Capital expenditures		$ 3		$ 9
Assets	$ 17,232		$ 17,232		$ 19,443