GORO - Earnings call 1 2021 | Gold Resource Corporation

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Gold Resource Corporation's First Quarter 2021 Conference Call. [Operator Instructions] I would now like to turn the conference call over to Ann Wilkinson, Vice President, Investor Relations and Corporate Affairs. Please go ahead.

Elizabeth Wilkinson

good and Holly, you, morning, everyone. Thank of to welcome behalf conference the quarter Gold like would call. I team, everyone results Resource XXXX On to first our

Form would are begin to statements certain numerous and are filings. as in made XX-Q management uncertainties housekeeping call, nature, we the be cover. described there risks by quarterly are Before matters note and the to report I SEC in subject team like today that and to Please such, on certain other our forward-looking as

the Allen On as Palmiere, and Chief Financial call our Officer. Perry, well as President today, we have Executive Kim Chief Officer;

Following is their answer call being to webcast. available they prepared will be conference your questions. This remarks,

a Materials today. Yesterday's and of from issued to of that all available and PDF call close slides those with call EDGAR. also under the stated. I event our tab conference website copy later note please news the will have the For unless us joining MD&A download Also, of the dollars the mentioned the over you SEC now ask-a-question the replay on be on will release tab. the for The the can webcast, in filed U.S. XX-Q following our accompanying call are amounts this been market Allen. otherwise in on contained statements in turn you financial

Allen Palmiere

to I to forward We'd results. you, us. our listeners our thank XXXX Thank look taking everyone. for time and like good join Ann, the to first morning, operating discussing quarter

picture plans the and closing take Officer, will then provide financial remarks, I your XXXX remarks, opening then our a will Chief Kim for a describe with and my Perry, our of few we'll Financial Following our questions. balance you results. of

and Ms. CEO Fortitude had Nevada New Corporation, spin-off now, Mr. I directors: the all on Lila of a new run Jason company whose Mining Mr. following all Little expertise aware implementing as assist governance. the management X Ron you're assets, to of The Reed's the Year, Finn Board Mexican Unit. Early the advisory and possess to members committee, Gold of we were first Spiteri. created Manassa Driscoll As Dale while receive departure unlocking Directors value technical our Murphy, to best-in-class January the leadership to over necessary independent Joe Joe who took X, by new the created a and in and

social operating I team results, Before award award. in recipients to but the This ESR neighbors. team and or testament the good our focused our truly on being is citizens discussing not annual only being efficient Mexico to congratulate responsible want of they're a and operations, for enterprise, seventh a corporate on

Additionally, operations it's year. no note the first lost-time of to had the quarter that this in accidents important

first approximately of the of X,XXX lead that XXX,XXX about of results ounces zinc. quarter tonnes silver, XXX I'm to ounces to X,XXX Resource and pleased tonnes report of Turning produced copper, Gold operations. of gold, X,XXX tonnes of

for per XX% the ore tonnes the we about consistent During year, plan our with day X,XXX of daily narrow rate in vein compared a we quarter, XXXX, on but at tonnes mineralization. with X,XXX lower, first more mine as focus processed day per

deposit fluctuation time. was modestly very of recoveries the and the grade grades gold at any the with recoveries depth slightly in is additional Our mine conditions as created. requiring zinc lower a ground plan, depending paste differed. is tonnage area way given of Ore The the ore the while we higher. to to being of revision is and was grades being worked on ground currently our mined mining grade We grades function silver, for encountered areas pumped a according and The are support. but poor sequence, in fill as the

base and to precious metal higher mining at decline. Switchback, levels future in As to years increase are grades of metal progresses expected grades

were the processed lower. last year, higher than silver with During gold the at The grades XX% average an paste XXX,XXX under processed about while same period quarter, X% first plan now about tailings. reducing has just we occurs ore tonnes complete grade surface method uninterrupted Paste effective providing allow ground future for ensure and safe support are a to and of in tailings resources. mineral manner to tailings an mining of mining and more of fill

significant XX% in be water this the tailings of will wastewater to paste reduce The the over by reclamation for pit of the addition, will as turn plant project, processed dry that, year. dry for open plant stack approximately stack of which water old In going progress call reuse. With provide early to the to consumption is available reduces construction mine, tailings and QX and overall of XX%. We filtration accelerate our Kim. targeted efficient storage tailings I'm made completion

Kimberly Perry

Thank working from David and you, closed $X.X Gold cash $XX nearly were over X% $XX.X XXXX, million morning, consisting Mine Don at everyone. of million Allen, XX, good debt. quarter balance million the a from capital Cash strong at increase We year-end. activities operating March and just of our with sheet, was no an and

$XXX net sales set the from Gold result expected cost $XX revenue charge recent And and in over year-end. were are XX% charges per per $XXX to Net of million trend down XX% of of XXXX. are compared ounce, sold all-in metals we XXXX XXXX netted tonne Contributing tonne of which $X.X of costs for equivalent XXXX million just charges, expected costs million million. gross $X approximately This the benchmark these mining of Mine's tonne sustaining reported sales new agreements. even $XXX ounce per per million. the was sold costs. the year sold. Don against down co-product revenue. Treatment In higher was full just treatment with lower at zinc treatment concentrate David the first or first concentrate base was income $X.X zinc of decrease For credits $XXX XX% in of after quarter, cash a base was or to per gold profit charge with ounce, under net from quarter total because total, metals $X.X treatment a income first nearly the negotiations concentrate is of per of in quarter $XXX decrease in

We credits expect after maintain equivalent $XXX trend cost continue these between of all and between $XXX and gold and guidance of in-sustaining co-product lower in total per XXXX per equivalent cash full our to total ounce. costs to costs of ounce year and $XXX $XXX gold

since we distributed the XXXX to in the call shareholders, million. With totaled back Allen. During quarter, I have will which that, $XXX,XXX $XXX over over to nearly dividends turn

Allen Palmiere

Thanks, Kim.

and large is in in million the we of of last earlier growth the indicated that spent focus one the Don mine, is property value shareholders. Accordingly, spend our $X.X touched Mine providing a tailings to and initiatives exploration planned and infrastructure investments the call, it $X position unlocking we $XX I management's of million invested stack on David in As but million our infrastructure of filtration note area. I dry planned project in Gold existing underway. and $X.X plant million to the and

design access Our a we exploration on is of completed to of a quarter during is the The engineering the ramps in quarter Level to underground construction tailings and completed to new drilling circuit completed to September and closing, of solid gold be during regrind production our Oaxaca, including end and development ways development expected by mine process Gold certain XX. In the this included platforms deliver the circuit, year. initiated included continues and new plant, The X% parts David of results and between our testing to deposit. new project and by diamond metallurgical increase areas access commissioned expected Mine demanding located and The equipment. in XX%. In Don recovery time. Mexico, procuring

While to also as important taking COVID-XX our strong productivity to excellent over strains your the This Mexico to sheet, of of in work operator turn resilience prepared provides job company to stress the to our the the remain in. for now our capital time has will life the the the hard questions. to has challenge, call the us comment the a it operations. Thank of listen accomplished. the And reinvest move emergence is balance to is flexibility virus, I people we for safe. you I that a repeat remarks. and we keep managing Kim's expected want situation the variant increase Their which team monitor as mine's and concludes with truly back

Operator

today from Ihle. coming first your is pose Please your Heiko Instructions] [Operator then question for affiliation announce Your question.

Heiko Ihle

It's Heiko Wainwright. H.C. Ihle with

the that million $X.X your of You mine Obviously, was mentioned release during trendline don't total the spent in a really million development you quarter plan in year. the in that. that to invest $X.X

of above Have this thing? more second seen days you of a you the XX trending So have in Or what that? half the second quarter? first been is

Allen Palmiere

placed will I spent We in We're much -- a exploration. mine were for we're of development a deal on seems Heiko. year. to behind be it. the because doing emphasis the little underground track. on QX great bit That It's plan, of amount our fundamental end It trending pretty by above

Heiko Ihle

you'd the Completely of in press figured release. question. I that, paragraph like say given Fair. same especially it the something was different

the your focus time all, of come. I ESG. and a and building enacted do mean, far? of and of I helps think changed? purely just recommendations it long on for But share, your out What that technical you curiosity, license First advisory don't congratulations on to specific can this much will has likely I your how that on was and what but be thus missed? will what made think you When be actually know committee social should

Allen Palmiere

set to geology technical now. areas is focus. local has the a That's fresh been ongoing. Finn primary date a regional has drilling. and Dale of It's very assist in of there geology, on involved been committee eyes to identifying bringing focus potential that and advisory for to The been

involved operational. in is and he's right will operational The Joe him the but Spiteri other -- a travel aspect Canadian for little travel bit be complicated. now view, is an

mining Joe down the has early all of and our believe, looking will of recommendations or of inputs them we of be value the be very once are sizing a our from that and significant time at board It's also members at. too gaining, X has I We there committee. spending already We're equipment who not Driscoll, Joe the once methods. focused, things member advisory about and Driscoll some observations the to made mine. whether are of there adopted, down operational say board, the they -- at the but will alternative been observations and have looking Joe been is about

Operator

is [ ] Aubrey. Ron question next from Your coming

Unknown Analyst

career, been grow CEO You've your late to why the really in to open mining GORO as company. mandate exciting the why joined one you as with XX-year very and

long-term So I have questions growth X regarding plan. your

reserves expand less been of has explored, mile package mine The the and company's significant exploration exploration. first with budget, hopefully, land tripling really than to year's square X% of date, to certainly and tied emphasis is To one this life. XXX

you walk could for then your So plans to follow-on have organic future path And question. growth? I this us through a

Allen Palmiere

be Ron. Sure. I'd happy,

There company has them, work As there one pulled very consistent our were as property little these ore the it focus The years all effectively you But XX wasn't much at so bit properties. a on indicated, potential. of XX, position been a that intercepts little very that so of exploration properties is most acquired was ago. grade of company's There the almost dividend of was on player, on a payer. each of proving explored. point being on done

available to never these adequately was money the areas. explore So

[indiscernible]. will be take are of But significantly expanding access we and underway permits. many in to to will year. work process X that areas private need is in owners, because this different gain obtain next drilling that the from we currently, need cases, We Now about time

I said, you have As significantly exploration year. budget this increased the

cash, constraints not However, was the was sites. expenditures it of our availability on drill

year, year, about increase on drill next working for we again additional understand that we directionally, will we obtaining probably the the already That will properties, what our budget in $XX got most additional we've area exactly would are attractive. time next and those in that and sites until we as areas continue million. anticipate such pursue We I the feel are will of that

Unknown Analyst

Excellent.

And of guidance. this -- produce is really ounces is equivalent the question to ounces. range. to tied end of based already to results gold XX,XXX on guidance XX the QX your upper Second XXXX at XX of

equivalent And favored." During had your reach Capital than doubling stated, presentation, gold a BMO ounce Market's are not production. company ounces, is goal more "Single you you XXX,XXX mine which then to companies

strategy could So longer-term possible please this opportunities and on growth? color provide M&A future including maybe you for some us

Allen Palmiere

over XX,XXX XX,XXX think will size be do I being diversify acquisition risk If like effectively operation, we at. saying we in in very in multiple mine, something unlock company. jurisdiction I become trying think is in I to focus next political very and something risk single-mind existing operating that we at suggest very, our quite time not organic is -- potentially or because perhaps. that that order acquisition a the presented associated believe at for months I identify primary a guess be would the a grow discount, We've would are like off I've it's acquire lines find XXX,XXX. would consistent year, any our value that can't duplicitous is on want time. we strengths. size effectively in I focus a that to within can because been are develop to close And Directionally, potential we they've also we to we opportunities I I think acquiring the by the that, if I jurisdictions. that with that bit to Mexico. opportunistic. of I would properties is something it it's we potential that produces to new a with to these the would we our looking ounces levers looking or Anybody acquisitive. look takes strictly significant, but the the have different need growth the make Reality unless up is -- undertake got Ideally, majors to and if the XX XX sense, a strategy to that give that have eliminate not that And be to acquisitions.

Our are a bandwidth. in Mexico, team and strengths very they technical in have area. really this got We've strong additional twofold

Rob? a the significantly strong in year-end, Does to acquisition. We be also question, I answer cash that by higher, would allow have balance that And to sheet. to think us your is position which any put going work

Unknown Analyst

I'll let back Yes, it some in ask is. perspective. others and I that get queue appreciate the questions.

Operator

coming is question Blair. next Your John from

John Bair

Bair, ounces award. And of follow-up. first or the and questions. quarter release, sold? silver safety Ascend X,XXX One X,XXX It's that treasury sold on held ESR production that B-A-I-R, a press "payable likewise, your Wealth your and in in X your in was Advisors. got your production? indicated ounces." Congratulations you was gold then with And is of is So I and a difference X,XXX not ounces, I've have

Allen Palmiere

in the purchaser, the concentrate transit delivered John, at all it's And in our passes concentrate got and inventory. times. inventory. ownership in We've is to until it's still

not do inventory in hold metals. we our precious So

occasion, on a couple will, kilograms, of shipment, accumulate. have as but We much kilograms few we a would awaiting of dore that is as ever

John Bair

Okay.

ounces short is So to be in in time, that sold difference of ultimately period a then...

Allen Palmiere

It probably at, you're in numbers March has XX, late because we're looking the it April. now been already and by -- at

converted. been it's So

John Bair

of the the Okay. or offset offset to of an specifically, recent permits on then was Very sites you either the -- wanted proceeded a And lot test I to what fault But exploration concept good. to and of previous potentially more aspect. covered follow-up kind is ask mine. delineate question. drill there A of have --

the northwest of bit kind the it's close more? a you focusing of operations and holdings? acreage to along your a little to are kind more I out or Is the where step more of holdings it operations existing of session think or

Allen Palmiere

John, of thank near our The that I exploration you is mine. bulk year to this for clarify need question. that.

area and the to the to is north. Underground, strike into the long strike holes northwest new to again, been of long we're for underground. as surface, as of drift mine the for of objective extensions both look So intent we're to both the we've the literally from or drilling Switchback is areas. From extensions well years and exploring The northwest outside driving The that of the drifts mineralized our we're a for the to, and further to just Arista surface southeast. a drift trying test southeast of the drill many a get gates. to the to

X long one to And past, almost we the of completed. would investors probably drill got there near-mine the lot could We're got only We've is identified could focus of you year is, oftentimes, we're You X like for years more starting or But testing years years, and than such structure site. that that and years it's I in But mine I to rock the up X years, nature we're the that drilling I really a the X They like our is west. one and have it. mine our that that gate to mineralization of the from the throw This up or ahead are going possible, a X There resources -- to But recognizes effectively, us. The just ahead. common had question holes. or operating X the is is to you. to away. investing only build will because ahead to and a of if it's -- by ahead has this build ensure not second reserves you've now. be would, it. to mine this never continually X going to been X keep of public XX

So is other be in drilled primarily focus going that's this the or to mine. X properties, that's is on our our There focus some not of why year. but X holes

John Bair

last One good. quick Very Okay. one.

into the period a going fully had had really it. say, you hold, the of but Or to that exploration ticking time land any you risk hold that clock Do extensive have -- you of haven't acreage? concessions explore, that on that those you of the have to away? is concession there opportunity or With in any kind concession currently let's even amount get

Allen Palmiere

No. I've concessions. expiry on of at the the dates all looked

up bureaucratic lose that is for no have of that process. issues. concessions, likelihood virtually going John. small speak. one the to any of that's as no those But absolutely renewal sort There's we're think We There we concession I is

John Bair

on of to is so a date any get and... on begin And have right something you of these essentially things, the of do speak? -- So if first refusal an you right do there first expiration it,

Allen Palmiere

It's in keep the can almost and then it. else an standing, long automatic touch rollover. can come as good as could. we obviously, somebody we else it drop concession, take it. Nobody If in But nobody

Operator

Your question Instructions] ] is Harvey coming [ Volen. from [Operator next

Unknown Shareholder

as Corporation. time say I but company that in merely recognize a now it's Gold see I the company and from a to it was I'm that before. ago critique, investor hard the Resource year an as long frankly, a observation. And don't

wondering, obvious, management, how change all are people, in this that ground? the made of pretty very for on about to technical ground of been which the I'm the there of addition team you Mexico, same that has is on the the Or have changes years? number So is the people in last the much

Allen Palmiere

the that changed has in very at to been We're there And team. it team put in is that same need. many any tell are strong was an extremely has developed the I making changes. Harvey, over not plans not they And Mexico resources team to the you I is them place, provide years. think It am all. happy only

Unknown Shareholder

Good Well, I old the the in obviously, pudding, is proof the cliché Okay. goes. know. as to guess

but it's the So ahead. better you in with the fact, exploration forward, some can, we forward the some for to and has and whatever unlocked, plans as that progress you languished moving unlocked we has look the company -- no growth value secret have, see languished the reason, of that of stock it, times also put be hopefully,

Allen Palmiere

[ I perspective. (sic) understand Harvey John ], your

time intent team value period inherent the this that And it. Board in over entire the it next think grow intent you certainly present the for is unlock that company and to and will there the be that opportunities the I management and of will of my observe themselves. growth

to least company the and operate continually, level. You're different. is and today It's will corporate we things make a we manner it management that But right, very the different a it at the grow team commitment the Board was than aggressive company. be the in that at is in disclose very trying transparent and will

Operator

further are no questions. There

Elizabeth Wilkinson

are look again you no to would answers. call, forward are further There the ones. that on the there quarter. questions you for As to quite technical lend attending but to thank to themselves again like questions website talking we and easy next We

Operator

and Thank gentlemen. call. conclude ladies does you, today's This conference

disconnect you may a have time, You day. your your Thank lines for phone wonderful and participation. at this

Gold Resource (GORO) 29 Apr 212021 Q1 Earnings call transcript