Earnings call transcript Q3 2022

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Operator

Good morning, and welcome to the Gold Resource Corporation Third Quarter 2022 Financial and Operating Results Conference Call. At this time, all participants are in a listen-only mode.

Following management’s presentation, there will be a question-and-answer session open to financial analyst only. Instructions will be provided at that time for you to queue up for questions. [Operator Instructions]

remind November this a.m. X, to being call like today recorded XXXX would everyone conference that is I at XX:XX Time. Eastern

I Officer. conference Research the proceed. will Kim now Gold Perry, over Corporation, Perry, Ms. to Financial you may Chief turn

Kim Perry

good covering Sergio, everyone. to results. our team, QX and Gold you to On to would XXXX like Thank welcome of our Resource morning you behalf I conference call

a that couple to Before statements of risks matters, subject in we there report Form described begin today like note the to our as I in as on made address. be XX-K are Please looking nature, certain filings. call, to would numerous forward other such and uncertainties, annual housekeeping are and and are SEC

Allen is Palmiere, Chief today call our Reyes, and and the on Officer. me Operating CEO; our Alberto President Joining

Following prepared Allen, be answer questions. we available to will Alberto my remarks, and

is This conference call being webcast.

will PDF replay download conference those slides. our webcast today. later For can event be us on you of the of our website also a available joining The on for

are website release and note, in Yesterday's statements market available all the SEC the stated. and the with XX-Q call EDGAR, of this our Please in amounts been close financial the on and following unless are our on otherwise filed contained accompanying have at on MD&A dollars www.goldresourcecorp.com. issued Form mentioned also that news U.S.

turnover call turn call Allen. the the now -- I will over to

Allen Palmiere

everyone to this Thank taking you call. Kim. thank time for to Good like I'd us everyone. the join on morning,

Implementing and in XXXX. XXXX safety top has priority programs our been

support and exploration. approach mine The took additional on development measures and the DDGM had production we address impact disciplined at During issues. third ground volumes, to ventilation a temporary quarter,

XXXX cost on With track still to are that production said, and meet guidance. we

our will people cost production. at of safety temporary and always first the put We

point Gold to out related to to achievements Don operations. update to a our David over provide Alberto Back call Forty on before our Project few handing I'd an the like

Kim from financial proceed on results. our QX with We remarks will then [ph]

provide a closing and few then take remarks we we'll will participants. Lastly, questions from

progress couple engage Back study. tribal feasibility after metallurgy the community and continue into to follow Michigan, initial a leaders, the economic Forty the opportunities Work We to continue to provide to on made project. had Permit layout study. and In site leaders XXXX. we improvements applications feasibility with releasing model the including the final will local of will

I'll Alberto to now discuss David over pass the to results. operational Gold Don presentation

Alberto Reyes

Thank you Allen, and also all. morning good to

XXX,XXX nearly a results tonnes We of approximately report gold of tonnes XXX the copper, ounces Turning of we processed X.X over approximately of lead of X,XXX to gold that ounces to and pleased operations. silver sold zinc. XXX,XXX equivalent of tonnes thousand tonnes X,XXX equating of and sold further I'm ounces. to X,XXX and ore combined

to X. Turning Slide

earlier, meet Allen we operations, mentioned an for year. As as guidance on on to track for the update are

we However, our mention quarter the must faced of impacted that production. some headwinds this we

Our throughput to Mexican previous operation two experienced lower quarters. compared the a

crushing Oaxaca As received unusual the of impacting season moved slightly rain in, hurricane share activities. an

go down. to to are the to been changes copper causing recoveries to Those circuit and implement Furthermore, regrind changes back gold needed recoveries have processing and adjusted the plant normal.

ground On Phase connecting until system Level shaft level but XX front, vent the completion completed, the experienced II, XX Phase of the QX. ventilation mining was the adverse to delaying X conditions its

rollout and approach program certifications and safety safety standards, focused As of Allen, safety and improving internal earlier leadership and in on mentioned the health the for by health the an we strong initiated field. review

slowdown rehabilitate to underground operations work required to reduced September. week working in This the teams areas. some rates for the process mining of Some a

to QX, the over can with year. achieve the discuss for the are and to results. With results. now QX up picked in pass work financial the guidance I'll rates Kim workforce we Production that we invigorated all immediately confident after the seems presentation

Kim Perry

both the payments Thank million in and closed tax investment of at nearly million $X.X $X XX, made working $XX quarter Maritime projects due XXXX Resource investment to over project, of $XX strong cash XXXX, has and XXXX. $XX with declined September $XX.X a consisting capital you, capital and Forty million investment dividends. Back Alberto. sheet, We just million in distributed million and in million Cash the million a balance for in XXXX $X nearly a Corporation in in

primarily decline third increase in The plant depreciation the reported addition reserve the commodity quarter, net the the prices, mineral in These P&L. and an costs lower and driven million. being Gold we depreciation are a base. of of reflected expense addition the a For of reflects losses stack the $X.X as Forty an circuit facilities, project losses expense increase by in the depreciation filtration expense on dry and regrind Back

of well at sales lower due lower were a as prices. realized the same XXXX lower period. XX% are in higher over period sales the XX% nearly to increase primarily the as Total Net to the the in This production same DDGM related $XX for as costs result cost increase for $XX.X than of is the ore million in same of a million XX% XXXX. production than processed metal quarter volumes grades, period lower tonnes

gold lower $X,XXX costs cost sold lower realized significantly production and higher the are ounce. cash gold for credits were lower credits equivalent Don to sold quarter. the all-in base directly co-product per after base Gold prices and cost ounce metal costs metal These was and the total per and related David during equivalent Mines sustaining than ounce equivalent total $X,XXX XXXX

the costs. like $XXX in total cash of ounce $XXX for Even Allen, for consolidated QX, to all-in a would to per to costs guidance $X,XXX and $X,XXX ounce with sustaining you. per to higher cash cost realized reiterate full year back cost I

Allen Palmiere

Thank you, Kim.

and guidance, comfortable aware, making all challenges XXXX we cost challenging. to our we're As and prices for continues is pressures, the projections economic Back while the Forty present project are capital with with it commodity cost climate

the prices, with cost, work hard commodity declining environment Back inflationary at to escalating having we're an Forty. capital In optimizing very

say heard creating on we growth As disciplined value before, appropriate me and allocation. focused capital remain you've through

our as and I have health, programs. And to in to overall our expand this really initiatives continually comments, plan our strides development efforts commitment demonstrate advance tremendous area. opening community around noted We in ESG my we safety, to made

management forward With at and David Don a our producer our the Forty strong to to advancing the improvements we growth. with healthy Mine, project maintaining balance look while low-cost on Back a on team, sheet disciplined status as and continuing focus focus Gold

turn I'll over the operator the for to With that, questions. call

Operator

comes you. Wainwright. the question-and-answer will Heiko Ihle begin session. first Instructions] gentlemen, Thank Please H.C. and we Your Ladies ahead. question from from now [Operator go

Heiko Ihle

I for it. question. appreciate all Hey. Thank you taking my

Allen Palmiere

Heiko. morning, Good

Heiko Ihle

morning. Good

I'm job You bit big market at done this of a year. exploration bearish. maintaining fan least some on cutting seems you just at $X.X a wonderful the because site know not it that the Back Forty quite at at you've all And million like expenses is a spent

million. year to million mean flat $X.X in is projection implies Your $X spend full I QX. that

think much that XXXX, this of are just and at “work spending, basic can is at But of things a continue”. Maybe that with discretionary word related I to forced and little mean of And I expect pick? can expenditure that How economic some you let's to down, permitting spend? look ideas pertinent cut and please? quote, you bit that a better I model metallurgy question site for how the the much since much you is, find spending much especially, to longer trying site term. you how how

Allen Palmiere

-- not pressures. substantial is coming. the it's surprise it's cost any Heiko, sure you, not I'm to as coming but there

Forty. to feasibility. increase to looking attempt continuing to at testing for our it we And also potentially but justify zinc, recovery the the it's on met Back refining significant to are it's work release feel we We for particular in before enough gold

maintaining like. costs the then for related direct a appropriate deferred is at year about some $X.X year delayed estimates G&A our and go-forward achieving million. the until In to insurance Forty. cetera basis cost looking permitting million If some to expenditures of there's $X.X million the the probably the financial We're property that And on et we're next on terms and next security $X million in metallurgy year. directionally Back of results be $X will at for following $X.X million directionally model of

and not a it's burn this lower than So year. significantly big it's

Heiko Ihle

in Got not word if a the said, I'm site. giving like favor it. better up for of lack of on I And

a So you're slow keeping that in clarification some I'm and the was safety trying. get I'm were improve ground production to support to and appreciative of third sentence temporarily development release deliberately on trying during there specific quarter mine And the one and exploration other ventilation. XXXX And to thing then on.

ground people a read they know for Halloween. support I a late Obviously, and we're bit scared get day when

detours methods the and on only So your can not as what mining you on of means please? recoveries sort that well just stuff financially, expand of is that kind but impact really ore

Allen Palmiere

Happy to Heiko.

that anything good you First, current I'm and our in operating tell standards substantially as with better America. in comparable norm Mexico. -- the mining as our have the industry safety anywhere our not is target in safety target than said, That going being to is is a performance mine almost to twice North very to

work we continue certain mine we perspective, that Mexico, our a go. team, already better their amongst on complacency amount to is there's we're Because of need won't we it. from everybody considered a are than the do I So it have call but else in safe why still to to a perspective ways

all. we we workforce two it, make them it And we in in safety production. for period we weeks. over and we they we brought very some fact didn't we of our What and but that is a standard. a that in are the and is at bit did rehab weeks, standard to serious production And of And that them was shocking lose realize did and two meet went unusual basis, some looked what countries. And prioritizing chose about three basically went work in down where did until about it to to do them up we shut because

and a I start first willing production this and a mine for put do mine down. to fatality had be never work watch I want have in safety any be I countries my safety. don't showcase want to Some on We're that. at. I to not to

most checked release. it the So But the throughout those when immediate potentially I decisions we on have two those the a internal focused point audit That's driving items. appropriately. why if We weren't say on support the widely which they was was have ventilation could operation. we are the practices because -- when certain individual safety We that bus. operating we -- That press areas the of initially that view. from when safety effect was impact an where identified in did two what that focused we we say and we they ground made adverse focus XXX greatest

the of didn't refocus but it out out Production impact, even mine. the of we affect talked We coming mine, was it's the few we senior team. directionally or safely with volume in a challenge have more they expanded consciously. coming the did came fact, thousand tonnes And we about the We did happy could affect what up recoveries, actually than very and it. it how workforce we've very that with. operate of I'm -- outcome safety to

people much job. shift We very workplace, There we're anymore have having not do a good down that underground compliance. and a not Interestingly, complete doing every if pretty shut to have in they the it's is... to they're authority

Heiko Ihle

a everybody necessary, shut down workplace, would deem assume right? can if they it I

Allen Palmiere

really told workplace. everybody but They a the now started down question? take at from a it's shut a didn't fix, we mine we that that the culture it safety no, -- And to to a in going they've recognize that them manager, to serious is the about seem absolutely the long trend as your up But helper see past, realize Did they least, quick priority. embraced on that to Heiko. until a shutting it. not has time. And they workplaces. Is Everybody changing. down had are we right It's we whereby authority address

Heiko Ihle

much. you That queue. get went back above and very in here. Thank call take I'll a beyond will

Allen Palmiere

Okay.

very you. You’re Thank Heiko. welcome,

Heiko Ihle

care. Take

Allen Palmiere

Okay.

Operator

Thank are this you. at Instructions] further There time. questions [Operator no

may proceed. You

Allen Palmiere

move on thank to feasibility forward In quarter. it's robust Forty Financially, like the aware, accounting an for such which Back and Thank overly as this from us you, morning. it principles preclude we wasn't operator. study until the complete by, generally would time, participating everyone expenditures to construction. I you're capitalizing as it accepted driven part

be maintain my further be capitalized, in experience that Mexico, a in were they notwithstanding volume on able our resulted loss. not. the should yet the we I did like mind all exploration Forty. I personally would the high were Back which the to in to loss, point to and those but resources lower of our abnormally fact believe, that we contributed out The mines depleting work to our unfortunately depreciation the replaced Mexico, development still expense, that that in expenditures,

made a if like we in to joining the you morning, announce to should year-end a small certainly, Thank get I would Resources, look investment it And to not our Maritime this company when a in in and into toehold turn I results. thank opportunity. before speaking we us fact, a company you. for everyone called very forward to attractive

Operator

Thank and gentlemen, disconnect for ask you conference your today. thank you. and Ladies your concludes for lines. call this please that participating you We

Gold Resource (GORO) 1 Nov 222022 Q3 Earnings call transcript