GORO - Earnings call transcript Q2 2024 | Gold Resource Corporation

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Gold Resource Q2 2024 Earnings Call. [Operator Instructions] This call is being recorded on Wednesday, August 7, 2024.

I would now like to turn the conference over to Chet Holyoak. Please go ahead.

Chet Holyoak

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

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

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

Allen, answer Following be prepared call will we available questions. This and to Alberto is my remarks, conference being webcast.

the filed the issued also our following market, us a will XX-Q website can joining news later call webcast, and call to those at release the available now available also Allen. conference the website on with have are was of PDF of The on over replay on www.goldresourcecorp.com. I download event and EDGAR slides. will Form today. Yesterday's that accompanying the SEC for be turn you you the close of our the copy on For been

Allen Palmiere

then results. I'd the will Thank I with second and you quarter few address you, would a Chet like conference operations, by financial like morning, Chet, Alberto and for good first everyone. points call. thank followed to joining our to address

Following closing take their and remarks, make questions. I'll a few will comments, we

and public than to work was conditions in extremely due The by blockades over working with have weather conditions. results. the and ground seen second stoppages on past resulted that areas quarters continued production similar compounded planned. wet the we mine quarter few roads Limited lower This trends the challenging

our cover positive said, the flow year. balance and to anticipate being we are cash for continuing the costs of That

the well commodities. room various week. Gold markets in looking earlier meltdown fourth is productivity devaluation bright peso. in this alternatives off only and spot results the see The to the as and as quarter. The The hopefully, the are for we'll was elephant market the increase at capital significant We of Corp profitability Resource were

in you our As are denominated of XX% peso. operating the costs know, approximately

decline This relative in offsets in a commodity the the in corresponding the decrease rates operating So results partially in prices. costs. decline

ensure to at have first exercise and exciting it drilling QX. Longer to continues as an two. the very possible We balance to for undertaken areas the the a within to into us assumptions and the the be of continues are to we by are update to now for looking exercise over the key on and possible, operations. is The availability. the company. I'll forecast term, cash This a conservative, a be turn Sisters shows productivity predict Alberto what year. allow third planning we to call provide existing to to looks our can extent these exciting remains that, necessary is Three Cash the XXXX. in in the the Currently, is for our and focus to us This quarter results. areas tight Gloria. of mine of new year-to-date beginning mechanical This reflects effectively access potentially build access stope accelerate very

Alberto Reyes

safety. time concluded commitment incidents, to second demonstrating and our Thank our to unwavering quarter zero We good you, with successfully Allen, everyone. morning lost

resilience as significant program the safety have situations. team challenging showcasing of Our and progress, our navigate made they capability

cost the consistently creates continued we this Employee with our combined paid the key positive high. it have perfect success. DDGM's morale The forward. to of quarter. dedication observe, drive the synergy and operations when initiatives are remains dividends our discipline team's And reduction drivers attitude

development suppliers the Mining in offering shown terms improving chain, are already already negotiation Other through savings consignment. -- production basis. improving are a efficiencies consumables include meter showcasing showing cost others cycles. an of while XX% a initiatives supply have projects in increase costs introduction per cost the decrease in are and alternative Some our of

Our XX%. These approximately circuit on disrupted operations as ground storms blocks of conditions the operation our availability scale in challenges that smaller impacted consecutive that tonnage mechanical to impact QX as and supply atypical the production of and encounter well road critical our equipment. personnel challenges key by rotation that include in cycle the chain crushing tropical

in that am around equating to nearly over at X,XXX I X,XXX with our sold processing provided of we targets. tonnes plant opportunities recognize quarter and processed robustness. Production X critical confident approximately approximately is now that ounces report hurdles, to and and team ounces remain have pleased important their of rigorous XXXX line adjustments. insights this we XX,XXX these It's circumstances Despite procedures for strategic tonnes for gold equivalent reached over operating silver, maintained unpredictable per the The XX,XXX X,XXX has of tonnes. to XXX,XXX in ounces. ore, day, gold

In approximately X,XXX addition, we XXX than of of lead more tonnes and sold copper, tonnes XXX zinc. of tonnes

approximately tonnes zinc. processed silver, approximately through over XX,XXX and over tonnes to sold the ounces ounces. nearly XX, tonnes equating XXX For June of X,XXX to of over ounces lead We of sold year-to-date further XXX,XXX of of ore, close tonnes X,XXX of XXX,XXX X,XXX we gold gold and copper, equivalent

growth the to development. year's Now underground Slide plan expenditures within QX results unit capital costs the Sustaining totaled in within drill drilling is $XXX,XXX, have $X.X initiatives as promising plan, hole projects. $X.X results, unit XX% expenditure invested million, that reduced Cost-saving investment million of were maintaining unit capital initial short investing $XXX,XXX costs. also $XXX,XXX by to well investment annual guidance. We XX%. DDGM's various our by in as cost turning including comparison infill with in XXXX's in Similarly, reduced reached while X. other were acknowledge closure sustaining capital fell projections. costs, development works smaller other TSF

safety this pass This the to period. our to commitment and team The reduced integrity. I'll highest upholding our underscores to the financial during now excellence highlight important ability team's costs is team discuss confidence standards presentation positive to demonstrated and it over navigate challenges drive while However, maintain the discipline effectively to in performance. Chet results. of operational by the

Chet Holyoak

Thank you, Alberto.

quarter, small is and During due The discussed. just we ended quarter the cash to we $X.X experienced cash decline the in as a our lower million. sales balance, we've decrease to with primarily production, second in lower due

Michigan Cash in year on provided Back spent by the $X.X to over optimization. million $X.X related $XXX,XXX operating Mexico million for includes spent activities was and in exploration Forty almost and

Mexico, a of interest $X.X the prices. to assets the net gold on increased streaming loss we liability allowance the million of a of due due million, of For write and million our quarter addition XXXX, in mainly second deferred tax to in valuation $XX.X reported $XX.X to off

period the than volumes During the of quarter, $XX.X to million lower in were XX% mainly metal due XXXX net sales sold. of lower same

and UOP of processed cost per than depreciation on for While period gold slightly the resulted unit tonne tonnes for production as lower costs processed for prior XXXX, a less the period as because sold. Depreciation significantly equivalent million $XX.X is quarter lower lower the of with gold the the year, tonnes unfavorable sold equivalent were result in mainly of ounce costs, depreciation mined. ounces cost per same lower than lower such along approximately impact an in

production the in XXXX, being is costs. mining not gross sales to primarily by profit proportionally due Finally, lower lower lower offset

credits and Don For Gold equivalent cost after Mine's sold. ounce sold gold all-in equivalent per ounce was gold $X,XXX sustaining co-product total cash total cost sold per $X,XXX David the was ounce quarter, per

reduction sold per Turning ore in cost The to to and Slide equivalent gold to X, lower a the cash explained are reduction quarter. and equivalent recoveries quarter. for sold we gold cash credits. mined drivers to key the ounces increase costs Alberto in the already and by tonnes in equivalent processed related realized will ounces due during grade discuss The gold two the are lower co-product due lower the and the reasons ounce

quarter, has the drivers an resulted in which are seeing peso, some for negative back offset of and strengthening prices impact impact. Allen, is above-mentioned to While a against the metal the in trend the dollar increasing the you. we

Allen Palmiere

Chet. Thanks,

well the for to continue many and production. and but ways We mine costs reduce looking with continually to is increase is challenges, team operating the responding at deal

there and call our We're happy us unlock I'll While for to that, opportunities marginal fixes, not in the questions. the operator no price with over look with move to the turn to are gains value. And quick share continue shareholder right direction. for

Operator

the Jake from [Operator of question Sekelsky from comes line Global Partners. Instructions] Your first Alliance

Jacob Sekelsky

I So mean that any are you should throughput throughput Is of here? the expect on wet you rates? the that? impact mentioned heavy and how ore rain we quarter. rates aid the looking provide Or you can at color QX to material other the during there

Allen Palmiere

is an to up, which rain rainy mill. that abnormal the two it our June, happened tropical depressions mud turned get the notwithstanding back-to-back. fact plugged that What the feed basically into that it we crusher really in our and What ability did crusher The screens ore the to was through fines the inhibited that the in had of that amount to crusher had on material we was was season. result of the we and

get back but rain, were what occasional weather is The We to some we like experiencing normal. June. nothing in

anticipating stage, to QX. control impact this weather, although we're or not QX at the it I So don't

Jacob Sekelsky

peso foreign hedging you far just with Okay. to weakened has you That's And you a side, helpful. a exchange peso more where remind on the then if mentioned where weaken bit on seen us we've any hedging aggressive I getting mean, you might the bit. the And FX goes? a as Can the side? quite level as are start programs

Allen Palmiere

answer, is that Quick at discussion Board a had we meeting yesterday. our Jake,

hedges be term. to going are in for the We very peso seriously near some putting at the on looking very

anticipating this we And As but very, rapidly. not carry collapse of we you know, not has the trigger, as hedged occurred, because trade. in was a very were anticipating today, were but we that intentional that are perhaps

looking So place peso. in we hedging the be at will on some putting

to XX% cost it's operating peso. our XX% denominated of As you Mexican know, the directionally in is

move has cost. dramatic and So a been quite impact operating this our a it has on big

Operator

And next comes Heiko from your Ihle from Wainwright. line question of H.C. the

Heiko Ihle

listed season the on was rains an election the remarks election. since current done abnormal impacted in bit operations, in and Building the that the Obviously, the I excessive assume won't you obviously of the election from sort hurricane quarter a you delays inefficiencies in impact two your discussed factors prepared be from question, work June. Jake's during

and maybe those August? all July could factors impact if as been how well? two about has that in could And dollar you think impact the maybe for QX -- the But I I trouble you at had weather? you there mean, in any

Allen Palmiere

the and we're production That I said, the hurricane active with repetition. all first, deal do. We're but at and part all. still prognosticators the occasional is season than very It to significant question any going know they of season. nothing a not currently don't I'm impacting are better forecasting rains, anticipating it's We're significant, being rainy and stoppage. getting anticipating that easy that is any any not not still

you're quantification, of terms on tonnes But amount is In be a month. of through direct a would effectively is the we impact, that would at I mill. for ore try the putting largely it production going your almost in and looking a tonnes X/X Heiko. That's week in translate results X,XXX into continuing. on by production, did X/X XX,XXX-tonne to of while the of how about dollar your lose X,XXX what forecast, difficult. costs downstroke revenue are That quantify

Heiko Ihle

not than I to enough. public a going more you a was answer out that's get I'm fair lie I of going detailed That's to call. on much thought

XX see an for for maybe little the both current quarter, drilling webcast Nice What drilling, to holes, outlook the You XX seeing maybe QX? exploration had slide of infill with a bit you a across pricing in your strong holes. in for also focus the are but presentation.

Allen Palmiere

change has performed our a started months few for a contractor company us. it's well Well, been a made actually professional in We very and we've utilizing who ago. very drilling drilling And interesting. Mexican has

don't -- our particular with working decreased proactively any has are expecting is climb. us meter relationship and per contractor ensure not any has their go-forward that that happy of very with they a significant developed basis. We've significantly, I'm forecasting relatively result I'm we're The and this on drilling to and costs not them, a significant change. increase with good cost very

Operator

last John Bair your comes line Wealth And from Advisors. from Ascend question the of

John Bair

will prices, potential your seems And if metals that really here. will me increase and assume conditions in On What millage quarters needs help rate forth seeing your a I'm by are you are increased abate. what so it that weather to you and what way very in financial result? throughput in for way improvement of the the these seeing of bigger if I picture, grade, good. going increased mean, definitely that, to to any? grade few next benefited that's But happen the that's the

Allen Palmiere

the will we're end we're improve prepared balance indicated I'm That remarks, by misleading the static will I months, cash will be -- they related of the what forecasting is while rebuild better. to to extremely then QX. relatively next our grades is you. QX, for my XX directly the they most a in little stay for grades, are grades again, grade, not anticipating beginning no, QX, John, of and XXXX. bit and high

We're of are and mineable QX is experiencing. earlier, with It this currently at resulted ago been what very actively we years ore higher the what what be is, currently has calling significantly we have the Three that that Effectively, a discovered and forecasting exploring. about grades, zone mineralized and identification X.X good already getting we of new in than XXXX hopefully into Gloria Sisters will area. we're

reason that new mine. success continued will the believe Don We of have will we and be the every exploration that zone future to have David

the that in familiar we've mined increased the mill. identified to of through that area workings. with It's was And that area. is the is by Switchback. Sisters foresee can the Arista followed going you're when any Gloria mineralized If existing called the it, without mineralization close very grades system qualification, area first This Three I discrete third system, we

improvements see the XX a expected that's change. We over when step of to a will I some months, bit see but next am

John Bair

released don't me have some assuming first and sisters... core of Yes, to in there. new results I Okay. and probably but the it the -- front -- mines the the look, familiar you've have with for And I'm of back go few I ongoing I'm here,

Allen Palmiere

few drill results dealing from We a last have, of months in couple fact, releases area. the issued primarily with Three Sisters press the over Gloria

John Bair

Right.

at at I'll look and I'll Okay. those. and go Yes, back those. back go look

Okay.

Allen Palmiere

indicator John. They you about a good pretty grade, true will and give thickness

John Bair

Right.

think it stand with good. towards what's Or reference to Kind Can $XXX,XXX little you question limbo now? Then Back going any Forty. other -- is on right the it release. press you my Okay. it updates on Very in I is, a was where wasn't There us give that? in there? was of

Allen Palmiere

like it's not don't limbo, but term inappropriate. the I

John Bair

progressed hasn't it Well, unfortunately.

Allen Palmiere

next Back companies, And financial is And at David, can us spend than step concluding we're for be into impossible state and study virtually would right. rather generate it. absolutely permitting the cash what exploration be you're current in No, climate currently, -- the will to we've finance for In doing a a getting now on the where do junior it chosen on the feasibility where spend money to money Forty we Don we flow. know exercise.

to going things. two on be dependent It's

is junior financed. our out second us to generate defined state one, going the the of So hopefully to the and Mexico. sector cash markets the capital for of ability excess one resource And it get broadly be to enable

John Bair

Is one aspect back that any with there. there Okay. the And that, the then so push course, And that's dealing with, and there's environmental that's another the in of speak? climate you've to and aspect, too. been change

Allen Palmiere

around no there's reality permits. permitting, John, for controls There is professional mining. permitting. the very jurisdiction noise state controls EPA strictly but Michigan of knowledgeable within a -- one state very all they're the about always that agency is the regulated And all the involvement. them. good of I The and know It's is

to my have process. job there's go ability in to but them it's our confident -- won't timely relatively mind, It's as risk always We've feel low my And as risk, permits I our now a I But get we long in basis. do in mind. the years. on is through -- with several -- had we dialogue an very for ongoing the properly,

John Bair

and forward looking monitoring to progress. Okay. Fair enough. following your And

Allen Palmiere

John, news hope to and in the better have pleasure, I My future.

Operator

concludes session. our closing for you. I'll call Thank Palmiere the to That now question-and-answer remarks. hand back any Allen Mr.

Allen Palmiere

forward to you everyone call. And good QX to and you. to day, beautiful Thank Thank I scheduled early today. It afternoon. join is the And too thank November. our to have I will at would be not look a conference It time speaking hot. taking for all a like summer hopefully you for us again,

Operator

Thank concludes participating. for this call. you And today's you. Thank

disconnect. You may all

Gold Resource (GORO) 7 Aug 242024 Q2 Earnings call transcript