Gold Resource Corporation (NYSE American: GORO) has released its operational results for the second quarter of 2024, showcasing resilience in the face of various challenges.
The company, which operates the Don David Gold Mine (DDGM) near Oaxaca, Mexico, reported significant production figures and positive drilling outcomes.
In Q2 2024, DDGM produced and sold 2,724 ounces of gold and 234,560 ounces of silver, along with 1,771 tonnes of zinc, 197 tonnes of copper, and 491 tonnes of lead.
The company achieved total sales of 5,625 gold equivalent ounces, with average sales prices of $2,465 per ounce for gold and $30.49 per ounce for silver.
As of June 30, 2024, Gold Resource Corporation maintained a solid financial footing with a cash balance of $5.3 million and a working capital of $14.3 million.
Allen Palmiere, President and CEO, acknowledged some production delays due to unforeseen circumstances, including excessive rainfall during hurricane season that resulted in the ore being too wet for mill processing.
Additionally, abnormal work delays stemmed from social issues related to the upcoming Mexican presidential election.
However, these challenges were partially offset by the strengthening of the US Dollar against the Mexican Peso and higher-than-budgeted metal selling prices.
The company reported encouraging progress in its drilling program, with underground diamond drilling continuing as planned and utilising two drill rigs.
Infill drilling successfully upgraded inferred resources to measured and indicated categories, focusing on the recently discovered Three Sisters and Gloria vein systems.
The identification of high-grade ore shoots in the Sandy 1 and Sandy 2 veins further demonstrated the potential of the site. Grade control drilling also confirmed economic mineralisation in veins scheduled for production.
Gold Resource Corporation maintained its commitment to safety, reporting zero lost time incidents during the quarter and achieving a year-to-date lost time injury frequency rate (LTIFR) of zero.
In terms of financial results, the company reported a net loss of $27.7 million or $0.30 per share for the quarter.
This figure included a $16.5 million tax expense due to a valuation allowance on DDGM deferred tax assets, $3.7 million in additional interest on streaming liabilities, and a $1.2 million unrealised investment loss on Green Light Metals shares.
Despite the challenges faced in Q2 2024, Gold Resource Corporation’s operational results demonstrate the company’s resilience and ongoing commitment to growth and safety in its mining operations.