Mon, May 12, 9:21 PM (35 days ago)
**Gold Resource Corporation (GORO) - Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $12.4 million, down 34% from Q1 2024 due to decreased production. - **Net Loss:** $8.3 million, up from $5.7 million in Q1 2024, primarily due to lower sales. - **Cash Flow:** Negative $0.8 million from operations, down from $1.5 million positive in Q1 2024. - **Cash Position:** $4.9 million as of March 31, 2025, up from $1.6 million in December 2024. - **Working Capital:** $6.2 million, up from $2.1 million in December 2024. **Production Metrics:** - **Gold Equivalent (AuEq) Ounces Sold:** 3,394 ounces, down from 5,965 ounces in Q1 2024. - **Total Cash Cost:** $2,494 per AuEq ounce, up from $1,667 in Q1 2024. - **All-In Sustaining Cost (AISC):** $3,252 per AuEq ounce, up from $2,304 in Q1 2024. **Operational Challenges:** - **Equipment Issues:** Aging machinery and lack of spare parts impacted operational efficiency. - **Production Shortfalls:** Lower grades and tonnes milled affected production. - **Capital Needs:** $7.0 million required for equipment and mill upgrades; $8.0 million in working capital needed over the next 12 months. **Future Operations Impact:** - **Funding:** Raised $2.5 million through a registered direct offering and $0.9 million from selling Green Light Metals. - **ATM Program:** Raised $8.6 million year-to-date, with plans to use it further. - **Tax Refund:** Received $4.0 million tax refund from Mexico. **Uncertainties:** - **Going Concern:** Substantial doubt about the ability to continue as a going concern beyond Q3 2025 if additional capital is not secured. - **Production Risks:** Equipment availability, grade declines, and mechanical issues pose risks to future production. **Market Risks:** - **Commodity Prices:** Fluctuations in gold, silver, copper, lead, and zinc prices. - **Currency Exchange:** Fluctuations in the Mexican peso relative to the U.S. dollar. - **Sales Contracts:** Provisional pricing mechanisms in concentrate sales contracts. **Management's Outlook:** - **Capital Requirements:** Seeking additional funding for equipment, development, and working capital. - **Production Goals:** Aiming to develop new mining areas to generate positive cash flow. - **Risk Management:** Evaluating strategies to manage market risks and ensure operational sustainability. **Ticker:** GORO