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What changed in GOLD RESOURCE CORP's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of GOLD RESOURCE CORP's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+743 added−326 removedSource: 10-K (2025-04-08) vs 10-K (2024-03-28)

Top changes in GOLD RESOURCE CORP's 2024 10-K

743 paragraphs added · 326 removed · 185 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

33 edited+1 added−5 removed17 unchanged
Biggest changeOf note, the metal price estimates are applied to both the Back Forty Mine Project Technical Report Summary and the DDGM Technical Report Summary. Our assessment of Mineral Resources and Mineral Reserves occurs at least annually. Mineral Reserves are a key component in the valuation of our property, equipment, mine development, and related depletion and depreciation rates.
Biggest changeThe Company’s assessment of Mineral Resources and Mineral Reserves at producing locations occurs at least annually. Mineral Reserves are a key component in the valuation of property, equipment, mine development, and related depletion and depreciation rates. Mineral Reserve estimates are used in determining appropriate rates of units-of-production depreciation, with net book value of many assets depreciated over remaining estimated reserves.
In that event, a loss will be recorded in our Consolidated Statements of Operations based on the difference between book value and the estimated fair value of the asset or asset group computed using discounted estimated future cash flows, or the application of an expected fair value technique in the absence of an observable market price.
In that event, a loss will be recorded in the Consolidated Statements of Operations based on the difference between book value and the estimated fair value of the asset or asset group computed using discounted estimated future cash flows, or the application of an expected fair value technique in the absence of an observable market price.
Significant judgment is involved in the determination of the estimated life of the assets. The Company’s estimates for Mineral Reserves is used in determining our UOP rates. The Company’s estimates of proven and probable ore reserves may change, possibly in the near term, resulting in changes to depreciation, depletion, and amortization rates in future reporting periods.
Significant judgment is involved in the determination of the estimated life of the assets. The Company’s estimates for Mineral Reserves is used in determining the UOP rates. The Company’s estimates of proven and probable ore reserves may change, possibly in the near term, resulting in changes to depreciation, depletion, and amortization rates in future reporting periods.
Market changes in the prices of metals between the delivery and final settlement dates will result in adjustments to revenues related to previously recorded sales of concentrate. Sales are recorded net of charges for treatment, refining, smelting losses, and other charges negotiated with the buyer.
Market changes in the prices of metals between the delivery and final settlement dates will result in adjustments to revenues related to previously recorded sales of concentrate. Sales are recorded net of charges for treatment charges, refining costs, smelting losses, and other charges negotiated with the buyer.
The investments in the construction industry, rising electrical and electronics production, and demand for industrial equipment are some of the major factors driving the demand for base metals and their prices. Mineral Resources and Mineral Reserves Critical estimates are inherent in the process of determining our Mineral Resources and Mineral Reserves.
The investments in the construction industry, rising electrical and electronics production, and demand for industrial equipment are some of the major factors driving the demand for base metals and their prices. Mineral Resources and Mineral Reserves Critical estimates are inherent in the process of determining Mineral Resources and Mineral Reserves.
Productive lives of the assets range from 1 to 10 years, but do not exceed the useful life of the individual asset. Please see Item 8. Financial Statements and Supplementary Data—Note 1. Nature of Operations and Summary of Significant Accounting Policies for depreciation rates of major asset categories.
Productive lives of the assets range from 1 to 10 years, but do not exceed the useful life of the individual asset. Please see Item 8. Financial Statements —Note 1. Nature of Operations and Summary of Significant Accounting Policies for depreciation rates of major asset categories.
Asset Retirement Obligation/Reclamation and Remediation Costs Our mining and exploration activities are subject to various laws and regulations, including legal and contractual obligations to reclaim, remediate, or otherwise restore properties at the time the property is removed from service.
Asset Retirement Obligation/Reclamation and Remediation Costs The Company’s mining and exploration activities are subject to various laws and regulations, including legal and contractual obligations to reclaim, remediate, or otherwise restore properties at the time the property is removed from service.
Accounting for reclamation and remediation obligations requires management to make estimates of the future costs that we will incur to complete the work required to comply with existing laws and regulations. Actual costs may differ from the amounts estimated.
Accounting for reclamation and remediation obligations requires management to make estimates of the future costs that the Company will incur to complete the work required to comply with existing laws and regulations. Actual costs may differ from the amounts estimated.
Our Mineral Resources and Mineral Reserves are affected largely by our assessment of future metals prices, as well as by engineering and geological estimates of ore grade, accessibility, and production costs.
The Mineral Resources and Mineral Reserves are affected largely by the assessment of future metals prices, as well as by engineering and geological estimates of ore grade, accessibility, and production costs.
Costs are added to stockpiles based on current mining costs, including applicable overhead, depreciation, and amortization relating to mining operations and removed at each stockpile’s average cost per recoverable unit as material is processed. We record stockpiles at the lower of average cost or net realizable value, and carrying values are evaluated at least quarterly.
Costs are added to stockpiles based on current mining costs, including applicable overhead, depreciation, and amortization relating to mining operations and removed at each stockpile’s average cost per recoverable unit as material is processed. The Company records stockpiles at the lower of average cost or net realizable value, and carrying values are evaluated at least quarterly.
Mineral Resources and Mineral Reserves are also key components in forecasts of estimated future cash flows, which we compare to current asset values in an effort to ensure that carrying values are reported appropriately, as well as assessment of the recoverability of deferred tax assets related to expectations of future taxable income.
Mineral Resources and Mineral Reserves are also key components in forecasts of estimated future cash flows, which the Company compares to current asset values in an effort to ensure that carrying values are reported appropriately, as well as assessment of the recoverability of deferred tax assets related to expectations of future taxable income.
We generally process the highest ore grade material first to maximize metal production; however, a blend of gold ore stockpiles may be processed to balance hardness and/or metallurgy in order to maximize throughput and recovery. Processing of lower grade stockpiled ore may continue after mining operations are completed.
The Company generally processes the highest ore grade material first to maximize metal production; however, a blend of gold ore stockpiles may be processed to balance hardness and/or metallurgy in order to maximize throughput and recovery. Processing of lower grade stockpiled ore may continue after mining operations are completed.
Each period, we evaluate the likelihood of whether some portion or all of each deferred tax asset will be realized and provide a valuation allowance for those deferred tax assets for which it is more likely than not that the related benefits will not be realized.
Each period, the Company evaluates the likelihood of whether some portion or all of each deferred tax asset will be realized and provide a valuation allowance for those deferred tax assets for which it is more likely than not that the related benefits will not be realized.
In addition, the calculation of income tax expense involves significant management estimation and judgment involving a number of assumptions. In determining these amounts, management interprets tax legislation in each of the jurisdictions in which we operate and makes estimates of the expected timing of the reversal of future tax assets and liabilities.
In addition, the calculation of income tax expense involves significant management estimation and judgment involving a number of assumptions. In determining these amounts, management interprets tax legislation in each of the jurisdictions in which the Company operates and makes estimates of the expected timing of the reversal of future tax assets and liabilities.
Mineral Resources and Mineral Reserves are a culmination of many estimates and are not guarantees that we will recover the indicated quantities of metals or that we will do so at a profitable level.
Mineral Resources and Mineral Reserves are a culmination of many estimates and are not guarantees that the Company will recover the indicated quantities of metals or that it will do so at a profitable level.
In October 2023, the Company received a notification from the Mexican Tax Administration Services (“SAT”) with a sanction of 331 million pesos (approximately $19.5 million) as the result of a 2015 tax audit that began in 2021.
In October 2023, the Company received a notification from the Mexican Tax Administration Services (“SAT”) with a sanction of 331 million pesos (approximately $16.1 million) as the result of a 2015 tax audit that began in 2021.
Income Taxes In preparing our consolidated financial statements, we estimate the actual amount of taxes currently payable or receivable, as well as deferred tax assets and liabilities attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.
Income Taxes In preparing the consolidated financial statements, the Company estimates the actual amount of taxes currently payable or receivable, as well as deferred tax assets and liabilities attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.
Conversely, if we determine that we will ultimately be able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced with a credit to income tax expense.
Conversely, if the Company determines that it will ultimately be able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced with a credit to income tax expense.
We make assumptions about future earnings, tax planning strategies, and the extent to which potential future tax benefits will be used. We are also subject to assessments by various taxation authorities, which may interpret tax legislation differently, which could affect the final amount or the timing of tax payments.
The Company makes assumptions about future earnings, tax planning strategies, and the extent to which potential future tax benefits will be used. The Company is also subject to assessments by various taxation authorities, which may interpret tax legislation differently, which could affect the final amount or the timing of tax payments.
When evaluating our valuation allowance, we consider historical and future expected levels of taxable income, the pattern and timing of reversals of taxable temporary timing differences that give rise to deferred tax liabilities, and tax planning initiatives.
When evaluating the valuation allowance, the Company considers historical and future expected levels of taxable income, the pattern and timing of reversals of taxable temporary timing differences that give rise to deferred tax liabilities, and tax planning initiatives.
Mining taxes represent federal and state taxes levied on mining operations. As the mining taxes are calculated as a percentage of mining profits, we classify them as income taxes.
Mining taxes represent federal and state taxes levied on mining operations. As the mining taxes are calculated as a percentage of mining profits, the Company classifies them as income taxes.
If we determine that all or a portion of the deferred tax assets will not be realized, a valuation allowance will be recorded with a charge to income tax expense.
If the Company determines that all or a portion of the deferred tax assets will not be realized, a valuation allowance is recorded with a charge to income tax expense.
It is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold and other commodity prices, production levels and costs, and capital are each subject to significant risks and uncertainties.
It is possible that actual future cash flows Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 62 ​ ​ Table of Contents ​ will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold and other commodity prices, production levels and costs, and capital are each subject to significant risks and uncertainties.
These consensus prices were subsequently compared to the actual 2023 closing spot price as at September 29, 2023 and the 36-month average as at August 28, 2023 and as per published exchanges (Comex for precious metals and London Metal Exchange (“LME”) for base metals) to ensure the prices used for the Mineral Resources and Mineral Reserves were still considered to be reasonably conservative estimates.
The prices were subsequently compared to the actual 2025 closing spot price as at January 7, 2025 as per published exchanges (Comex for precious metals and London Metal Exchange (“LME”) for base metals) to ensure the prices used for the Mineral Resources and Mineral Reserves were still considered to be reasonably conservative estimates.
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 59 ​ ​ Table of Contents ​ ​ Carrying Value of Stockpiles Stockpiles represent ore that has been extracted from the mine and is available for further processing. Mine sequencing may result in mining material at a faster rate than can be processed.
Carrying Value of Stockpiles Stockpiles represent ore that has been extracted from the mine and is available for further processing. Mine sequencing may result in mining material at a faster rate than can be processed.
Reclamation costs are allocated to expense over the life of the related assets and are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 60 ​ ​ Table of Contents ​ ​ of either the timing or amount of the reclamation and remediation costs.
Reclamation costs are allocated to expense over the life of the related assets and are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation and remediation costs.
In accordance with U.S. GAAP, the carrying value of a long-lived asset or asset group is considered impaired when the anticipated undiscounted cash flows from such asset or asset group are less than its carrying value.
The economic environment and commodity prices may be considered as impairment indicators for the purposes of these impairment assessments. In accordance with U.S. GAAP, the carrying value of a long-lived asset or asset group is considered impaired when the anticipated undiscounted cash flows from such asset or asset group are less than its carrying value.
Doré sales are recorded using quoted metal prices, net of refining charges. Depreciation and Amortization Capitalized costs are depreciated or amortized using the straight-line method or unit-of-production (“UOP”) method at rates sufficient to depreciate such costs over the shorter of estimated productive lives of such assets or the useful life of the individual assets.
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 61 ​ ​ Table of Contents ​ Depreciation and Amortization Capitalized costs are depreciated or amortized using the straight-line method or unit-of-production (“UOP”) method at rates sufficient to depreciate such costs over the shorter of estimated productive lives of such assets or the useful life of the individual assets.
Impairment of Long-Lived Assets We evaluate the carrying value of long-lived assets to be held and used using a fair-value based approach when events and circumstances indicate that the related carrying amount of our assets may not be recoverable. The economic environment and commodity prices may be considered as impairment indicators for the purposes of these impairment assessments.
Impairment of Long-Lived Assets The Company evaluates the carrying value of long-lived assets to be held and used using a fair-value based approach when events and circumstances indicate that the related carrying amount of its assets may not be recoverable, such as changes in future metals prices, production levels, and costs.
Management believes the 2015 tax return was prepared correctly, and that as of December 31, 2023, the Company has no liability. Please also see Item 8 . Financial Statements and Supplementary Data—Note 4. Income Taxes .
Management intends to use all legal avenues of protest, including filing a lawsuit with the Mexico court system if needed, to see that these adjustments are removed. Management believes the 2015 tax return was prepared correctly, and that as of December 31, 2024, the Company has no liability. Please also see Item 8 . Financial Statements —Note 7.
Management is in process of disputing this tax notification and sent a letter of protest to the tax authorities along with providing all requested documentation. Management intends to use all legal avenues of protest, including filing a lawsuit with the Mexico court system if needed, to see that these adjustments are removed.
The 2015 tax audit performed by SAT encompassed various tax aspects, including but not limited to intercompany transactions, mining royalty tax, and extraordinary mining tax. Management is in process of disputing this tax notification and sent a letter of protest to the tax authorities along with providing all requested documentation.
Metals prices used in estimating our Mineral Resources and Mineral Reserves closely approximate the average median consensus prices from analysts as at June 2023 for each of the five years starting 2024 through 2028. The consensus prices were based on estimates of 38 financial institutions compiled by the Company.
Metals prices used in estimating Mineral Resources and Mineral Reserves approximate the average median consensus prices for each of the three years starting 2025 through 2027 as provided by Bloomberg’s consensus commodity price forecast as at January 7, 2025. The 2027 consensus was used for the remaining life of mine.
The 2015 tax audit performed by SAT encompassed various tax aspects, including but not limited to intercompany transactions, Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 61 ​ ​ Table of Contents ​ ​ mining royalty tax, and extraordinary mining tax.
Income Taxes . Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 63 ​ ​ Table of Contents ​
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Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 58 ​ ​ Table of Contents ​ ​ Mineral Reserve estimates are used in determining appropriate rates of units-of-production depreciation, with net book value of many assets depreciated over remaining estimated reserves.
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Doré sales are recorded using quoted metal prices, net of refining charges.
Removed
Stock-based Compensation The Company accounts for stock-based employee compensation plans under the fair value recognition and measurement provisions in accordance with applicable accounting standards, which require all stock-based payments to employees, including grants of stock options, restricted stock units (“RSUs”), performance share units (“PSUs”), and deferred share units (“DSUs”) to be measured based on the grant date fair value of the awards.
Removed
The resulting expense is generally recognized on a straight-line basis over the period during which the employee is required to perform service in exchange for the award. For stock-based employee compensation that is expected to be settled in cash, a liability is established, and a quarterly mark-to-market adjustment is applied based on current stock price.
Removed
Stock-based compensation expense is recorded net of estimated forfeitures in our Consolidated Statements of Operations, and it is recorded for only those stock-based awards that we expect to vest. We estimate the forfeiture rate based on historical forfeitures of equity awards and adjust the rate to reflect changes in facts and circumstances, if any.
Removed
We will revise our estimated forfeiture rate if actual forfeitures differ from our initial estimates.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

0 edited+46 added−42 removed0 unchanged
Removed
Item 1A. Risk Factors—General Risks—The Israel-Palestinian conflict in Gaza, the conflict in Ukraine, and the related price volatility and geopolitical instability could negatively impact our business. Continuing increases in inflation could increase our costs of labor and other costs related to our business, which could have an adverse impact on our business, financial position, results of operations, and cash flows.
Added
Item 1A. Risk Factors below for additional information. Competitive Business Conditions The acquisition of gold and silver properties is subject to intense competition. Identifying and evaluating potential mining prospects is a costly and time-consuming endeavor. In 2021, the Company successfully acquired the Back Forty Project as discussed above.
Removed
At the same time, the peso has been subject to fluctuation, which may not have been proportionate to the inflation rate and may not be proportional to the inflation rate in the future. The value of the peso increased by 14.6% in 2023 and increased by 6.3% in 2022.
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The Company expects to continue significant investment in exploration and growth activities in the future; however, competition for acquiring mineral prospects will continue to be intense.
Removed
In addition, fluctuations in currency exchange rates may have a significant impact on our financial results. There can be no assurance that the Mexican government will maintain its current policies with regard to the peso or that the peso's value will not fluctuate significantly in the future.
Added
Government Regulations and Permits In connection with mining, milling, and exploration activities in Mexico, the Company is subject to Mexican federal, state, and local laws and regulations governing the protection of the environment, including laws and regulations relating to the protection of air and water quality, hazardous waste management, mine reclamation, as well as the protection of endangered or threatened species.
Removed
We cannot assure you that currency fluctuations, inflation, and exchange control policies will not have an adverse impact on our financial condition, results of operations, earnings, and cash flows. Lack of infrastructure could forestall or prevent further exploration and advancement. Exploration activities, as well as any advancement activities, depend on adequate infrastructure.
Added
The government department responsible for environmental protection in Mexico is Secretaria de Medio Ambiente y Recursos Naturales (“SEMARNAT”). SEMARNAT has broad authority over environmental regulations and standards. Potential areas of environmental consideration for mining companies include, but are not limited to, acid rock drainage, cyanide containment and handling, contamination of water sources, dust, and noise.
Removed
Reliable roads, bridges, power sources, and water supply are important factors that affect capital and operating costs and the feasibility and economic viability of a project.
Added
For operations at the Don David Gold Mine, the Company has secured and continues to maintain various regulatory permits from federal, state, and local agencies.
Removed
Unanticipated or higher than expected costs and unusual or infrequent weather phenomena, or government or other interference in the maintenance or provision of such infrastructure, could materially adversely affect our business, financial condition, and results of operations.
Added
These governmental and regulatory permits generally govern the processes being used to operate, the stipulations concerning air quality, water issues, hazardous and waste management, and the plans and obligations for reclamation of the properties at the conclusion of operations. These laws and regulations are continually changing and are generally becoming more restrictive.
Removed
Risks Related to our Common Stock Our stock price may be volatile, and as a result, shareholders could lose part or all of their investment.
Added
The Company’s production stage mines in Mexico have reclamation plans in place that it believes meet all applicable legal and regulatory requirements. As of December 31, 2024, $10.6 million has been accrued on the Company’s Consolidated Balance Sheets for reclamation costs relating to its production and exploration stage properties in Mexico.
Removed
In addition to other risk factors identified in this annual report on Form 10-K, and due to volatility associated with equity securities in general, the value of a shareholder’s investment could decline due to the impact of numerous factors upon the market price of our common stock, including: ● Changes in the worldwide price for the metals we mine; ● Adverse results from our exploration, development, or production efforts; ● Changes to the dividend program, including suspensions; ● Producing at rates lower than those targeted; ● Political and regulatory risks and social unrest, including the conflicts between Ukraine and Russia and in Gaza; ● Weather conditions and extreme weather events, including unusually heavy rains; ● Failure to meet our revenue or profit goals or operating budget; ● Decline in demand for our common stock; ● Downward revisions in securities analysts’ estimates or changes in global financial markets, global economies, and general market conditions; ● Technological innovations by competitors or in competing technologies; ● Investor perception of our industry or our prospects; ● Lawsuits; ● Economic impact from the spread of any disease; ● Our ability to integrate and operate the companies and the businesses that we acquire; ● Actions by government or central banks; and ● General economic trends. ​ Gold Resource Corporation 22 ​ ​ Table of Contents ​ ​ Stock markets in general have experienced extreme price and volume fluctuations, and the market prices of individual securities have been highly volatile.
Added
In addition, the Company accrued $0.1 million for drill-hole capping in Michigan. The State of Michigan has been delegated authority under federal environmental law to issue all necessary environmental permits required for the Back Forty Project.
Removed
These fluctuations are often unrelated to operating performance and may materially adversely affect the market price of our common stock. As a result, shareholders may be unable to sell their shares at a desired price. Past payments of dividends on our common stock are not a guaranty of future payments of dividends.
Added
The State of Michigan’s “Natural Resource Environmental Protection Act” provides rules and regulations for the State Department of Environment, Great Lakes and Energy (EGLE) to issue permits for mining, treated wastewater discharge, air emissions, and related environmental permits necessary for the Back Forty Project.
Removed
In 2010, we began paying cash dividends to the holders of our common stock. However, our ability to pay dividends in the future will depend on a number of factors, including free cash flow, expected operational performance, mine construction requirements and strategies, other acquisition and/or construction projects, spot metal prices, taxation, government-imposed royalties, and general market conditions.
Added
Customers During the year ended December 31, 2024, three customers accounted for 91% of the Company’s revenue from DDGM. In the event that the Company’s relationship with any of the customers is interrupted for any reason, the Company believes that it would be able to locate another entity to purchase its products in a timely manner on substantially similar terms.
Removed
Further, a portion of our cash flow is expected to be retained to finance our operations, explorations, and development of mineral properties. In February 2023, we announced the suspension of our quarterly dividends. There is no assurance that the Board will elect to re-institute a dividend payment in the near-term or at all.
Added
However, any interruption could temporarily disrupt the sale of the Company’s principal products and materially Gold Resource Corporation 10 ​ ​ ​ Table of Contents ​ adversely affect its operating results. The Company periodically reviews its options for alternative sales outlets to mitigate the concentration of risk in case of any unforeseen disruptions.
Removed
Issuances of our stock in the future could dilute existing shareholders and materially adversely affect the market price of our common stock. We have the authority to issue up to 200,000,000 shares of common stock, 5,000,000 shares of preferred stock, and to issue options and warrants to purchase shares of our common stock, in some cases without shareholder approval.
Added
Human Capital Resources The Company values excellence and recognizes that embracing the diverse backgrounds, skills, and perspectives of the local workforce will lead to a competitive advantage. The Company is committed to leading by example and maintaining a fair and inclusive work environment built on mutual respect and integrity.
Removed
As of March 20, 2024, there were 88,757,610 shares of common stock outstanding. Future issuances of our securities could be at prices substantially below the price paid for our common stock by our current shareholders. We can issue significant blocks of our common stock without further shareholder approval.
Added
Diversity means understanding, accepting, respecting, and valuing differences among people regardless of age, gender, race, ethnicity, culture, religion or spiritual practices, disabilities, sexual orientation, gender identity, family status, or veteran status. The Company believes it has good morale and a dedicated workforce.
Removed
Because we have issued less common stock than many of our larger peers, the issuance of a significant amount of our common stock may have a disproportionately large impact on our share price compared to larger companies. General Risks Our operations may be disrupted, and our financial results may be materially adversely affected by any future pandemic.
Added
The Company’s human capital resources objectives include, as applicable, identifying, recruiting, retaining, incentivizing, and integrating its existing employees and new hires.
Removed
Any pandemic may pose a risk to our business and operations.
Added
The principal purposes of the Company’s equity incentive plans are to attract, retain, and motivate selected employees and directors by granting stock-based compensation awards that align employee compensation with shareholder returns. ​ DDGM Employee Housing As of December 31, 2024, the Company had 465 employees at DDGM.
Removed
If a significant portion of our workforce becomes unable to work or travel to our operations due to illness or state or federal government restrictions (including travel restrictions and “shelter-in-place” and similar orders restricting certain activities that may be issued or extended by authorities), we may be forced to reduce or suspend exploration activities and/or development projects, which may impact liquidity and financial results.
Added
There were 15 full-time corporate employees, three of whom serve as executive officers, and three full-time employees in Michigan who are fully dedicated to progressing the Back Forty Project. ​ Gold Resource Corporation 11 ​ ​ ​ Table of Contents ​ ITEM 1A .
Removed
These restrictions have significantly disrupted economic activity in both the world, national and local economies and have caused volatility in capital markets.
Added
RISK FACTORS The Company’s business, and the mining industry in general, is influenced by significant risks and uncertainties. These risks include those described below and may include additional risks and uncertainties not presently known or currently deemed immaterial.
Removed
To the extent any pandemic materially adversely affects our business and financial results, as discussed above, it may also have the effect of heightening many of the other risks described in this “Risk Factors” section, such as those relating to our operation, indebtedness, and financing.
Added
The Company’s business, financial condition, and results of operations could be materially adversely affected by any of these risks, and the trading price of the Company’s common stock could decline by virtue of these risks. These risks should be read in conjunction with the other information in this annual report on Form 10-K.
Removed
We are unable to predict the ultimate adverse impact of any pandemic on our business, which will depend on numerous evolving factors and future developments, including the pandemic’s ongoing effect on the demand for silver and gold, as well as the response of the overall economy and the financial markets after the pandemic and response measures come to an end, the timing of which remains highly unpredictable.
Added
Financial Risks There is substantial doubt about whether the Company can continue as a going concern. At December 31, 2024, the Company’s aggregate cash and cash equivalents totaled approximately $1.6 million. As a result of challenges encountered in mining and processing at DDGM, the Company is not currently generating positive cash flow from its mining operations.
Removed
The Israel-Palestinian conflict in Gaza, the conflict in Ukraine, and the related price volatility and geopolitical instability could negatively impact our business. On October 7, 2023, the Palestinian Sunni Islamist group, Hamas, led surprise attacks against Israel from the Gaza Strip. In response to the attacks, Israel’s cabinet formally declared war on Hamas.
Added
The Company’s financial position and recent operating results, along with its inability to achieve its production estimates, raise substantial doubt about its ability to continue as a going concern.
Removed
Although we do not have operations in the region, the extent and duration of the military action and resulting market disruptions could be significant and could Gold Resource Corporation 23 ​ ​ Table of Contents ​ ​ potentially have a substantial negative impact on the global economy and/or our business.
Added
Failure to raise some form of long-term debt or additional equity capital will cause the Company to further increase its working capital decline, and the Company may be compelled to place the mine on “care and maintenance” status and cease operations until sufficient capital is available.
Removed
The magnitude of these risks cannot be predicted, including the extent to which these conflicts may heighten other risks disclosed herein. In late February 2022, Russia launched significant military action against Ukraine, and the war remains ongoing.
Added
Additionally, even if the Company does raise sufficient capital to support its operating expenses and generate revenues, there can be no assurances that the revenue will be sufficient to enable it to achieve a level where it generates profits and positive cash flows from operations.
Removed
The extent and duration of the military action, sanctions, and resulting market disruptions could be significant and could potentially have a substantial negative impact on the global economy and/or our business for an unknown period of time.
Added
The Company’s consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Such adjustments could be material.
Removed
The ramifications of the hostilities and sanctions may not be limited to Russia, Ukraine, and Russian or Ukrainian companies, and may spill over to and negatively impact other regional and global economic markets (including in Europe and in the United States), companies in other countries (particularly those that have done business with Russia and Ukraine), and various sectors, industries, and markets for securities and commodities globally.
Added
The Company’s results of operations, cash flows, and the value of its properties are highly dependent on the market prices of gold, silver, and certain base metals, and these prices can be volatile.
Removed
Any such volatility and disruptions may also magnify the impact of other risks described in this “Risk Factors” section. We may not be able to operate successfully if we are unable to recruit, hire, retain, and develop key personnel and maintain a qualified and diverse workforce.
Added
The profitability of the Company’s mining operations and the value of its mining properties are directly related to the market price of gold, silver, copper, lead, and zinc. The price of gold and silver may also significantly influence the market price of the Company’s common stock.
Removed
In addition, we are dependent upon our employees being able to safely perform their jobs, but there is risk of physical injuries or illness. We depend upon the services of a number of key executives and management personnel. These individuals include our executive officers and other key employees.
Added
The market prices of these metals historically have fluctuated significantly and are affected by numerous factors beyond the Company’s control, including (i) global or regional consumption patterns; (ii) supply of and demand for gold, silver, and base metals on a worldwide basis; (iii) speculative and hedging activities; (iv) expectations for inflation; (v) political and economic conditions; (vi) supply of, and demand for, consumables required for extraction and processing of metals, and (vii) general economic conditions worldwide.
Removed
If any of these individuals were to die, become disabled, or leave our company, we would be forced to identify and retain individuals to replace them. We may be unable to hire a suitable replacement on favorable terms should that become necessary. Our success is also dependent on the contributions of our highly skilled and experienced workforce.
Added
Over the last five years (as reported on the London Bullion Market Association using the London PM Fix for gold and silver), gold prices have fluctuated from a low of $1,474 per ounce to a high of $2,778 per ounce, and silver prices have fluctuated from a low of $12.01 per ounce to a high of $34.51 per ounce.
Removed
Our ability to achieve our operating goals depend upon our ability to recruit, hire, retain, and develop qualified and diverse personnel to execute on our strategy. There continues to be competition over highly skilled personnel in our industry.
Added
On December 31, 2024, the London PM Fix gold price was $2,609 per ounce, and the London PM silver price was $28.91 per ounce. Currently, the Company does not use hedging transactions with respect to any of its metal production. Accordingly, the Company is fully exposed to price fluctuations in precious metals.
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If we lose key personnel or one or more members of our senior management team; or if we fail to develop adequate succession plans; or if we fail to hire, retain, and develop qualified and diverse employees; our business, financial condition, results of operations, and cash flows could be harmed.
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In the event metal prices decline or remain low for prolonged periods of time, the Company might be unable to develop its exploration properties, which may materially adversely affect its results of operations, financial performance, and cash flows.
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We are dependent on information technology systems, which are subject to certain risks, including cybersecurity risks, data leakage risks, and risks associated with implementation and integration. We are dependent upon information technology systems in the conduct of our business.
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An asset impairment charge may result from the occurrence of unexpected adverse events that impact the Company’s estimates of expected cash flows generated from its mining operations or the market value of its non-producing properties, including a material diminution in the price of metals.
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Any significant breakdown, invasion, virus, cyberattack, security breach, destruction, or interruption of these systems by employees, others with authorized access to our systems, or unauthorized persons could negatively impact our business.
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Gold Resource Corporation 12 ​ ​ ​ Table of Contents ​ The Company may not achieve profitability. The Company’s only production-stage property that produces revenue is DDGM in Mexico, and it may not generate sufficient cash flow to cover the Company’s operating, development, exploration, general and administrative, and other costs due to certain risk factors .
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To the extent any invasion, cyberattack, or security breach results in disruption to our business; such as loss or disclosure of, or damage to our data or confidential information; our reputation, business, results of operations, and financial condition could be materially adversely affected. We have implemented various measures to manage our risks related to information technology systems and network disruptions.
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Unexpected interruptions in the mining business may cause the Company to incur losses, or the revenue that is generated from extraction may not be sufficient to fund continuing operations, including exploration and mine development costs.
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However, given the unpredictability of the timing, nature, and scope of information technology disruptions, we could potentially be subject to production downtimes, operational delays, the compromising of confidential or otherwise protected information, destruction or corruption of data, security breaches, other manipulation or improper use of our systems, and networks or financial losses from remedial actions, any of which could have a material adverse effect on our cash flows, competitive position, financial condition, or results of operations.
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The Company’s failure to generate future profits may materially adversely affect the price of its common stock, and stockholders may lose all or part of their investment. Metal prices and foreign currency rates have a significant impact on the Company’s profit margin, and there is no assurance that the Company will be profitable in the future. Please see Item 1A.
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Our systems and insurance coverage for protecting against cyber security risks may not be sufficient. Although to date we have not experienced any material losses relating to cyberattacks, we may suffer such losses in the future. We may be required to expend significant additional resources to continue to modify or enhance our protective measures.
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Risk Factors—General Risks—The Company’s results of operations, cash flows, and the value of its properties are highly dependent on the market prices of gold, silver, and certain base metals and these prices can be volatile .
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We also may be subject to significant litigation, regulatory investigation, and remediation costs associated with any information security vulnerabilities, cyberattacks, or security breaches. We may also be materially adversely affected by system or network disruptions if new or upgraded information technology systems are defective, not installed properly, or not properly integrated into our operations.
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The Company requires access to additional capital in order to finance its business plans, and there is no guarantee the Company will have access to that capital on favorable terms, or at all.
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If we are unable to successfully implement system upgrades or modifications, we may have to rely on manual reporting processes and controls over financial reporting that have not been planned, designed, or tested.
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The Company requires significant funds to develop, access, and determine if Mineral Reserves exist at any of its non-producing properties, continue exploration, and if warranted, develop existing properties and identify and acquire additional properties to diversify its property portfolio.
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Various measures have been implemented to Gold Resource Corporation 24 ​ ​ Table of Contents ​ ​ manage our risks related to the system upgrades and modifications, but system upgrades and modification failures could have a material adverse effect on our business, financial condition, and results of operations and could, if not successfully implemented, adversely impact the effectiveness of our internal controls over financial reporting.
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The Company’s ability to obtain necessary funding for these purposes, in turn, depends upon several factors, including historical and prospective results of operations, the status of the national and worldwide economy, the price of gold, silver, and other metals, the condition of the debt and equity markets, the costs associated with extracting and acquiring minerals, and the market value for its common stock.
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Our business is subject to the U.S. Foreign Corrupt Practices Act and similar worldwide anti-bribery laws, a breach or violation of which could lead to civil and criminal fines and penalties, loss of licenses or permits, and reputational harm.
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The Company may not be successful in generating or obtaining the required financing, or if it can obtain such financing, such financing may not be on terms that are favorable to the Company and its shareholders. The Company also may be unable to obtain funding by monetizing additional non-core exploration or other assets at an acceptable price.
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We operate in certain jurisdictions that have experienced some degree of governmental and private sector corruption, and in certain circumstances, strict compliance with anti-bribery laws may conflict with certain local customs and practices. The U.S.
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The Company cannot provide assurance it will be able to obtain financing to fund its general and administrative costs and other working capital needs to fund continuing business activities in the future on favorable terms, or at all.
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Foreign Corrupt Practices Act and anti-bribery laws in other jurisdictions generally prohibit companies and their intermediaries from making improper payments for the purpose of obtaining or retaining business or other commercial advantages. Our Code of Ethics and other corporate governance mandate compliance with these anti-bribery laws, which often carry substantial penalties.
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Failure to obtain financing could result in delay or indefinite postponement of further mining operations, exploration, and construction, as well as the possible partial or total loss of the Company’s interest in its properties. The Company’s ability to recognize the benefits of deferred tax assets is dependent on future cash flows and taxable income.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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ITEM 1C. CYBERSECURITY Risk Management and Strategy We have established policies and processes for assessing, identifying, and managing material risk from cybersecurity threats and have integrated these processes into our overall risk management systems and processes.
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ITEM 1C: Cybersecurity ​ 26 ITEM 1B : Unresolved Staff Comments ​ 26 ITEM 2: Properties ​ 28 ITEM 3 : Legal Proceedings ​ 43 ITEM 4 : Mine Safety Disclosures ​ 43 ​ ​ ​ ​ ​ PART II ​ ​ ​ ​ ​ ​ ITEM 5 : Market For Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities ​ 44
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We routinely assess material risks from cybersecurity threats, including any potential unauthorized occurrence on or conducted through our information systems that may result in adverse effects on the confidentiality, integrity, or availability of our information systems or any information residing therein. ​ We conduct periodic risk assessments to identify cybersecurity threats, as well as assessments in the event of a material change in our business practices that may affect information systems that are vulnerable to such cybersecurity threats.
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These risk assessments include identification of reasonably foreseeable internal and external risks, the likelihood and potential damage that could result from such risks, and the sufficiency of existing policies, procedures, systems, and safeguards in place to manage such risks. ​ Governance One of the key functions of our Board of Directors is informed oversight of our risk management process, including risks from cybersecurity threats.
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Our Board is responsible for monitoring and assessing strategic risk exposure, and management is responsible for the day-to-day management of any material risks that may arise. The Board receives periodic updates from management regarding cybersecurity matters and is notified between such updates regarding any significant new cybersecurity threats or incidents.
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We do not believe that there are currently any known risks from cybersecurity threats that are reasonably likely to materially affect us or our business strategy, results of operations, or financial condition. Management is responsible for the operational oversight of company-wide cybersecurity strategy, policy, and standards across relevant departments to assess and help prepare us to address cybersecurity risks.
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As part of our overall Gold Resource Corporation 25 ​ ​ Table of Contents ​ ​ risk management system, we monitor and test our safeguards and train our employees on these safeguards. Personnel at all levels and departments are made aware of our cybersecurity policies through trainings.
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Cybersecurity Threats As of December 31, 2023, we have not identified an indication of a cybersecurity incident that would have a material impact on our business and consolidated financial statements. For further discussion of cybersecurity risks, please refer to Item 1A. Risk Factors . ​ ITEM 2.
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PROPERTIES Glossary The following terms used in this report shall have the following meanings: Andesite: An extrusive igneous, volcanic rock, of intermediate composition, with aphanitic to porphyritic texture characteristic of subduction zones, such as the western margin of South America. ​ ​ Concentrate: A product from a mineral processing facility, such as gravity separation or flotation, in which the valuable constituents have been upgraded and unwanted gangue materials rejected as waste. ​ ​ Doré: Composite gold and silver bullion, usually consisting of approximately 90% precious metals that will be further refined to separate pure metals. ​ ​ Drift: A horizontal tunnel generally driven within or alongside an ore body and aligned parallel to the long dimension of the ore. ​ ​ Epithermal: Used to describe gold deposits found on or just below the surface close to vents or volcanoes, formed at low temperature and pressure. ​ ​ Exploration: Prospecting, sampling, mapping, diamond-drilling, and other work involved in locating the presence of economic deposits and establishing their nature, shape, and grade. ​ ​ Grade: The concentration of an element of interest expressed as relative mass units (percentage, ounces per ton, grams per tonne (“g/t”), etc.). ​ ​ Hectare: A metric unit of measurement, for surface area.
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One hectare equals 1/200 th of a square kilometer, 10,000 square meters, or 2.47 acres. A hectare is approximately the size of a soccer field. ​ ​ Long-hole Stoping: Mining method which uses holes drilled by a production drill to a predetermined pattern by a mining engineer.
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Long-hole stoping is a highly selective and productive method of mining and can cater for varying ore thicknesses and dips (0 - 90 degree).
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Blasted rock is designed to fall into a supported drawpoint or be removed with remote control LHD (load, haul, dump machine). ​ ​ Net Smelter Return (“NSR”): The net revenue that the owner of a mining property receives from the sale of the mine's metal products, less transportation and refining costs.
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As a royalty, it refers to the fraction of net smelter return that a mine operator is obligated to pay the owner of the royalty agreement. ​ ​ Mineral Deposit: Rocks that contain economic amounts of minerals in them and that are expected to be profitably mined.
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Gold Resource Corporation 26 ​ ​ Table of Contents ​ ​ ​ ​ Tonne: A metric ton. One tonne equals 1000 kg .
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It is equal to approximately 2,204.62 pounds. ​ ​ Volcanogenic: Of volcanic origin. ​ ​ Volcanic domes: These are mounds that form when viscous lava is erupted slowly and piles up over the vent, rather than moving away as lava flow.
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The sides of most domes are very steep and typically are mantled with unstable rock debris formed during or shortly after dome emplacement.
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Most domes are composed of silica-rich lava, which may contain enough pressurized gas to cause explosions during dome extrusion. ​ Overview We classify our mineral properties into three categories: “Production Stage Properties,” “Development Stage Properties,” and “Exploration Stage Properties.” Production Properties are properties for which we operate a producing mine.
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At our Don David Gold Mine, we currently have 100% interest in six properties, including two Production Stage Properties and four Exploration Stage Properties, located in Oaxaca, Mexico, along the San Jose structural corridor. Because of their proximity and relatively integrated operations, we collectively refer to the six properties as the Don David Gold Mine.
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The two Production Stage Properties are the only two of the six properties that make up the Don David Gold Mine that we consider to be independently material at this time. Please see Item 2. Properties – Don David Gold Mine for further discussion of the properties.
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The Company also has 100% interest in the Back Forty Project, an advanced Exploration Stage Property, located in Menominee County, Michigan, USA. We do not consider the Back Forty Project to be independently material to the Company at this time. Please see

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeDon David Gold Mine – Summary of Gold, Silver, and Base Metal Mineral Resources at December 31, 2022 (1)(2)(3)(4) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Description ​ KTonnes ​ Gold g/t ​ Silver g/t ​ Copper % ​ Lead % ​ Zinc % ​ Cut-off grade ​ Metallurgical Recovery (%) Arista ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $/Tonne ​ Au ​ Ag ​ Cu ​ Pb ​ Zn Measured Mineral Resources ​ 259 ​ 1.70 ​ 152.58 ​ 0.38 ​ 1.36 ​ 3.95 ​ 80 ​ 82 ​ 91 ​ 71 ​ 70 ​ 84 Indicated Mineral Resources ​ 1,240 ​ 1.19 ​ 120.74 ​ 0.29 ​ 1.14 ​ 3.17 ​ 80 ​ 82 ​ 91 ​ 71 ​ 70 ​ 84 Measured + Indicated ​ 1,499 ​ 1.27 ​ 126.26 ​ 0.31 ​ 1.18 ​ 3.30 ​ 80 ​ 82 ​ 91 ​ 71 ​ 70 ​ 84 Inferred Mineral Resources ​ 1,916 ​ 0.80 ​ 110.98 ​ 0.25 ​ 1.18 ​ 3.03 ​ 80 ​ 82 ​ 91 ​ 71 ​ 70 ​ 84 Alta Gracia ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AuEq/tonne ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Measured Mineral Resources ​ 24 ​ 0.81 ​ 367.95 ​ - ​ - ​ - ​ 2.35 ​ 85 ​ 72 ​ - ​ - ​ - Indicated Mineral Resources ​ 90 ​ 0.61 ​ 327.18 ​ - ​ - ​ - ​ 2.35 ​ 85 ​ 72 ​ - ​ - ​ - Measured + Indicated ​ 114 ​ 0.65 ​ 335.82 ​ - ​ - ​ - ​ 2.35 ​ 85 ​ 72 ​ - ​ - ​ - Inferred Mineral Resources ​ 148 ​ 0.62 ​ 295.61 ​ - ​ - ​ - ​ 2.35 ​ 85 ​ 72 ​ - ​ - ​ - ​ Notes on Mineral Resources: 1.
Biggest changeIt is not merely an inventory of all mineralization drilled or sampled.” Gold Resource Corporation 29 ​ ​ ​ Table of Contents ​ The following tables summarize the estimated Mineral Resources at DDGM and at Back Forty: Don David Gold Mine – Summary of Gold, Silver, and Base Metal Mineral Resources at December 31, 2024 (1)(2)(3)(4)(5) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Description ​ KTonnes ​ Gold g/t ​ Silver g/t ​ Copper % ​ Lead % ​ Zinc % ​ Cut-off grade ​ Metallurgical Recovery (%) Arista ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $/Tonne ​ Au ​ Ag ​ Cu ​ Pb ​ Zn Measured Mineral Resources ​ 4 ​ 0.54 ​ 79.40 ​ 0.31 ​ 1.35 ​ 5.14 ​ 120 ​ 80 ​ 91 ​ 74 ​ 72 ​ 83 Indicated Mineral Resources ​ 201 ​ 1.02 ​ 164.52 ​ 0.29 ​ 0.94 ​ 2.54 ​ 120 ​ 80 ​ 91 ​ 74 ​ 72 ​ 83 Measured + Indicated ​ 205 ​ 1.01 ​ 163.00 ​ 0.29 ​ 0.95 ​ 2.59 ​ 120 ​ 80 ​ 91 ​ 74 ​ 72 ​ 83 Inferred Mineral Resources ​ 1,838 ​ 1.03 ​ 100.33 ​ 0.23 ​ 1.29 ​ 3.62 ​ 120 ​ 80 ​ 91 ​ 74 ​ 72 ​ 83 Alta Gracia ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AuEq/tonne ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Measured Mineral Resources ​ 27 ​ 0.81 ​ 370.58 ​ - ​ - ​ - ​ 2.35 ​ 85 ​ 72 ​ - ​ - ​ - Indicated Mineral Resources ​ 141 ​ 0.49 ​ 269.96 ​ - ​ - ​ - ​ 2.35 ​ 85 ​ 72 ​ - ​ - ​ - Measured + Indicated ​ 168 ​ 0.54 ​ 286.13 ​ - ​ - ​ - ​ 2.35 ​ 85 ​ 72 ​ - ​ - ​ - Inferred Mineral Resources ​ 148 ​ 0.62 ​ 259.61 ​ - ​ - ​ - ​ 2.35 ​ 85 ​ 72 ​ - ​ - ​ - ​ Notes on Mineral Resources: 1.
Mineral Resources estimated at December 31, 2023 are based on $1,800/oz for Gold, $23.30/oz for Silver, $3.90/pound Copper, $0.95/pound Lead and $1.25/pound Zinc. The metal prices used are based on the average median consensus prices for years 2024 through 2028 as provided by the Bank of Montreal in June 2023.
Mineral Resources estimated at December 31, 2023 are based on $1,800/oz for Gold, $23.30/oz for Silver, $3.90/pound for Copper, $0.95/pound for Lead and $1.25/pound for Zinc. The metal prices used are based on the average median consensus prices for years 2024 through 2028 as provided by the Bank of Montreal in June 2023.
Mineral Resources estimated at December 31, 2023 are based on $1,800/oz for Gold, $23.30/oz for Silver, $3.90/pound Copper, $0.95/pound Lead and $1.25/pound Zinc. The metal prices used are based on the average median consensus prices for years 2024 through 2028 as provided by the Bank of Montreal in June 2023.
Mineral Resources estimated at December 31, 2023 and 2024 are based on $1,800/oz for Gold, $23.30/oz for Silver, $3.90/pound for Copper, $0.95/pound for Lead and $1.25/pound for Zinc. The metal prices used are based on the average median consensus prices for years 2024 through 2028 as provided by the Bank of Montreal in June 2023.
The median price was based on the price estimates contributed by 38 participating financial institutions. These prices are also very similar to the three-year average. 2. The Arista Mine cut-off grades for Mineral Reserves are $120/tonne NSR. 3. Alta Gracia reserves reported December 31, 2022 have been downgraded to resources for the December 31, 2023 estimate. 4.
The median price was based on the price estimates contributed by 38 participating financial institutions. These prices are also very similar to the three-year average. 2. The Arista Mine NSR cut-off grades for Mineral Reserves are $120/tonne. 3. Alta Gracia reserves reported December 31, 2022 have been downgraded to resources for the December 31, 2023 estimate. 4.
According to the Mexican Geological Survey, the Servicio Geologico Mexicano (“SGM”) mining activity was initiated in the early 1880s in the Tlacolula mining district, producing some 300,000 ounces of gold and silver from an ore shoot in the La Leona mine. However, no separate amounts of production were reported for each metal.
According to the Mexican Geological Survey, the Servicio Geologico Mexicano (“SGM”), mining activity was initiated in the early 1880s in the Tlacolula mining district, producing some 300,000 gold and silver ounces from an ore shoot in the La Leona mine. However, no separate amounts of production were reported for each metal.
Permitting: The State of Michigan governs and regulates the permitting process as it relates to the Back Forty Project. Community: Tribal engagement has been very important to the Project, especially considering the cultural resources near the site.
Permitting: The State of Michigan governs and regulates the permitting process as it relates to the Back Forty Project. Community: Tribal engagement has been very important to the Back Forty Project, especially considering the cultural resources near the site.
Back Forty Project – Summary of Gold, Silver, and Base Metal Mineral Resources at December 31, 2023 (1)(2)(3)(4) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Description ​ KTonnes ​ Gold g/t ​ Silver g/t ​ Copper % ​ Lead % ​ Zinc % ​ Cut-off grade Back Forty - Open Pit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $/Tonne Measured Mineral Resources ​ - ​ - ​ - ​ - ​ - ​ - ​ - Indicated Mineral Resources ​ 9,360 ​ 2.41 ​ 28.06 ​ 0.36 ​ - ​ 3.74 ​ 33 Measured + Indicated ​ 9,360 ​ 2.41 ​ 28.06 ​ 0.36 ​ - ​ 3.74 ​ 33 Inferred Mineral Resources ​ 566 ​ 2.70 ​ 48.84 ​ 0.35 ​ - ​ 1.31 ​ 33 Back Forty - Underground ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AuEq/tonne Measured Mineral Resources ​ - ​ - ​ - ​ - ​ - ​ - ​ - Indicated Mineral Resources ​ 5,137 ​ 1.86 ​ 24.05 ​ 0.41 ​ - ​ 2.65 ​ 73 Measured + Indicated ​ 5,137 ​ 1.86 ​ 24.05 ​ 0.41 ​ - ​ 2.65 ​ 73 Inferred Mineral Resources ​ 627 ​ 2.00 ​ 26.10 ​ 0.37 ​ - ​ 2.89 ​ 73 ​ Notes on Mineral Resources: 1.
Back Forty Project – Summary of Gold, Silver, and Base Metal Mineral Resources at December 31, 2023 and 2024 (1) (2) (3) (4) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Description ​ KTonnes ​ Gold g/t ​ Silver g/t ​ Copper % ​ Lead % ​ Zinc % ​ Cut-off grade Back Forty - Open Pit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $/Tonne Measured Mineral Resources ​ - ​ - ​ - ​ - ​ - ​ - ​ - Indicated Mineral Resources ​ 9,360 ​ 2.41 ​ 28.06 ​ 0.36 ​ - ​ 3.74 ​ 33 Measured + Indicated ​ 9,360 ​ 2.41 ​ 28.06 ​ 0.36 ​ - ​ 3.74 ​ 33 Inferred Mineral Resources ​ 566 ​ 2.70 ​ 48.84 ​ 0.35 ​ - ​ 1.31 ​ 33 Back Forty - Underground ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AuEq/tonne Measured Mineral Resources ​ - ​ - ​ - ​ - ​ - ​ - ​ - Indicated Mineral Resources ​ 5,137 ​ 1.86 ​ 24.05 ​ 0.41 ​ - ​ 2.65 ​ 73 Measured + Indicated ​ 5,137 ​ 1.86 ​ 24.05 ​ 0.41 ​ - ​ 2.65 ​ 73 Inferred Mineral Resources ​ 627 ​ 2.00 ​ 26.10 ​ 0.37 ​ - ​ 2.89 ​ 73 ​ Notes on Mineral Resources: 1.
The median price was based on the price estimates contributed by 38 participating financial institutions. These prices are also very similar to the three-year average. 2. The definitions for Mineral Resources in S-K 1300 were followed which are consistent with CIM (2014) definitions and are exclusive of Mineral Reserves. 3.
The median price was based on the price estimates contributed by 38 participating financial institutions. These prices are also very similar to the three-year average. 2. The definitions for Mineral Resources in S-K 1300 were followed, which are consistent with definitions outlined CIM (2014) and are exclusive of Mineral Reserves. 3.
The median price was based on the price estimates contributed by 38 participating financial institutions. These prices are also very similar to the three-year average. 2. The definitions for Mineral Resources in S-K 1300 were followed which are consistent with CIM (2014) definitions and are exclusive of Mineral Reserves. 3.
The median price was based on the price estimates contributed by 38 participating financial institutions. These prices are also very similar to the three-year average. 2. The definitions for Mineral Resources in S-K 1300 were followed, which are consistent with definitions outlined by CIM (2014) and are exclusive of Mineral Reserves . 3.
More information regarding the assumptions, methodologies, and procedures utilized in the estimation of Mineral Resources at Back Forty can be found in the Back Forty Technical Report Summary incorporated by reference as Exhibit 96.1 to this Form 10-K.
More information regarding the assumptions, methodologies, and procedures utilized in the estimation of Mineral Resources at Back Forty can be found in the Back Forty Project Technical Report Summary incorporated by reference as Exhibit 96.1 to this Form 10-K.
Gold Resource Corporation 34 ​ ​ Table of Contents ​ ​ Additional improvements at the site include electrical power lines connecting to the Mexican national power grid, installation of backup diesel generation power plants and switch gear, paving a three-kilometer section of the road from the mine to the processing facility, construction of a surface maintenance garage and fuel station, construction of haul roads from the mine site to the processing facility, office space at the processing facility, an assay lab, an exploration office, tailings impoundment facilities and lift, a paste fill plant, mine camp facilities, the filtration plant, the dry stack facility, and other infrastructure.
Gold Resource Corporation 37 ​ ​ ​ Table of Contents ​ Additional improvements at the site include electrical power lines connecting to the Mexican national power grid, installation of backup diesel generation power plants and switch gear, paving a three-kilometer section of the road from the mine to the processing facility, construction of a surface maintenance garage and fuel station, construction of haul roads from the mine site to the processing facility, office space at the processing facility, an assay lab, an exploration office, tailings impoundment facilities and lift, a paste fill plant, mine camp facilities, the filtration plant, the dry stack facility, and other infrastructure.
Mineral Resources estimated at December 31, 2023 are based on $1,800/oz for Gold, $23.30/oz for Silver, $3.90/pound Copper, $0.95/pound Lead and $1.25/pound Zinc . The metal prices used are based on the average median consensus prices for years 2024 through 2028 as provided by the Bank of Montreal in June 2023.
Mineral Reserves estimated at December 31, 2023 are based on $1,800/oz for Gold, $23.30/oz for Silver, $3.90/pound for Copper, $0.95/pound for Lead and $1.25/pound for Zinc. The metal prices used are based on the average median consensus prices for years 2024 through 2028 as provided by the Bank of Montreal in June 2023.
Mineral Resources Under S-K 1300, a Mineral Resource is defined as “a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction.” A Mineral Resource is a “reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable.
Mineral Resources Under S-K 1300, a “Mineral Resource” is defined as “a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction.” A “Mineral Resource” is a “reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable.
In 2021, mining activities were completed in the open pit, and it is now being backfilled and reclaimed by filtered dry stack tailings deposition. The Arista underground mine mineralization is considered intermediate epithermal-type consisting of gold, silver, copper, lead, and zinc. The host rock in the Arista vein system is primarily andesite.
In 2011, mining activities were completed in the open pit, and it is now being backfilled and reclaimed by filtered dry stack tailings deposition. The Arista underground mine mineralization is considered intermediate epithermal-type consisting of gold, silver, copper, lead, and zinc. The host rock in the Arista vein system is primarily andesite.
Results of the work indicate a more robust economic project with no planned impacts to wetlands that is more protective of the environment, which should facilitate a successful mine permitting process. The Board continues to evaluate options that could lead to the development of the Project. Please see Item 2. Properties for additional information.
Results of the work indicate a more robust economic project with no planned impacts to wetlands that is more protective of the environment, which should facilitate a successful mine permitting process. The Board continues to evaluate options that could lead to the development of the Back Forty Project. Please see Item 2. Properties for additional information.
Outreach to local Tribes, including the Menominee Indian Tribe of Wisconsin, began as early as June of Gold Resource Corporation 39 ​ ​ Table of Contents ​ ​ 2010. Aquila conducted extensive archeological studies throughout the affected and unaffected areas. As agreed with the authorities, Aquila identified areas for permanent protection and established appropriate buffers.
Outreach to local Tribes, including the Menominee Indian Tribe of Wisconsin, began as Gold Resource Corporation 42 ​ ​ ​ Table of Contents ​ early as June of 2010. Aquila conducted extensive archeological studies throughout the affected and unaffected areas. As agreed with the authorities, Aquila identified areas for permanent protection and established appropriate buffers.
Gold Resource Corporation 38 ​ ​ Table of Contents ​ ​ Back Forty Project The Back Forty Project is an advanced Exploration Stage Property located in Menominee County, Michigan, USA in the mineral rich Penokean Volcanic Belt. Our property is made up of approximately 1,304 hectares (3,222 acres) of private and public (State of Michigan) mineral lands.
Gold Resource Corporation 41 ​ ​ ​ Table of Contents ​ Back Forty Project The Back Forty Project is an advanced Exploration Stage Property located in Menominee County, Michigan, USA in the mineral rich Penokean Volcanic Belt. The property is made up of approximately 1,304 hectares (3,222 acres) of private and public (State of Michigan) mineral lands.
Facilities: The processing facility and other infrastructure at the Arista mine was constructed for approximately $35 million in 2009, and the processing facility was expanded in 2012 and 2013 for additional $23 million.
Facilities: The processing facility and other infrastructure at the Arista Mine was constructed for approximately $35.0 million in 2009, and the processing facility was expanded in 2012 and 2013 for an additional $23.0 million.
Exploration Properties Margaritas Property The Margaritas property is made up of the La Tehuana concession, which is approximately 925 hectares, located within the 55-kilometer San Jose structural corridor and adjacent to the Arista mine. In 2023, we continued to review results from previous surface drilling, surveying, detailed geological mapping, and rock chip channel sampling for the Margaritas property.
Exploration Properties Margaritas Property The Margaritas property is made up of the La Tehuana concession, which is approximately 925 hectares, located within the 55-kilometer San Jose structural corridor and adjacent to the Arista Mine. In 2024, the Company continued to review results from previous surface drilling, surveying, detailed geological mapping, and rock chip channel sampling for the Margaritas property.
We obtained the remaining concessions by staking claims and filing for concessions with the Mexican government. The Rey property is located approximately 64 kilometers by road from the Arista mine. There is no plant or equipment on the Rey property.
The Company obtained the remaining concessions by staking claims and filing for concessions with the Mexican government. The Rey property is located approximately 64 kilometers by road from the Arista Mine. Currently, there is no plant or equipment on the Rey property.
Amendments to Article 27 of the Mexican Constitution in 1994 now allow individual property ownership within Ejidos and allow Ejidos to enter into commercial ventures with individuals or entities, including foreign corporations. We have an agreement with the local San Pedro Totolapam Ejido, allowing exploration and exploitation of mineralization at the Arista mine and some of our surrounding properties.
Amendments to Article 27 of the Mexican Constitution in 1994 now allow individual property ownership within Ejidos and allow Ejidos to enter into commercial ventures with individuals or entities, including foreign corporations. The Company has an agreement with the local San Pedro Totolapam Ejido, allowing exploration and exploitation of mineralization at the Arista Mine and some of the surrounding properties.
Subsistence farming occurs, and the main agricultural crop is agave cactus that is cultivated for the production of mescal. Gold Resource Corporation 33 ​ ​ Table of Contents ​ ​ Geology and Mineralization: The Arista mine is located in the San Jose de Gracia Mining District in Oaxaca.
Subsistence farming occurs, and the main agricultural crop is agave cactus that is cultivated for the production of mezcal. Gold Resource Corporation 36 ​ ​ ​ Table of Contents ​ Geology and Mineralization: The Arista Mine is located in the San Jose de Gracia Mining District in Oaxaca.
Alta Gracia Mine Background : In 2008, we were granted claims adjacent to the Margaritas property in the Alta Gracia Mining District by filing three mining concessions known as the David Fracción I, the David Fracción II, and La Herradura, totaling 5,175 hectares.
Alta Gracia Mine Background : In 2008, the Company was granted claims adjacent to the Margaritas property in the Alta Gracia Mining District by filing three mining concessions known as the David Fracción I, the David Fracción II, and La Herradura, totaling 5,175 hectares.
More information regarding the assumptions, methodologies, and procedures utilized in the estimation of Mineral Reserves can be found in the DDGM Technical Report Summary filed as Exhibit 96.2 to this Form 10-K.
More information regarding the assumptions, methodologies, and procedures utilized in the estimation of Mineral Reserves can be found in the DDGM Technical Report Summary incorporated by reference as Exhibit 96.2 to this Form 10-K.
The project is centered at latitude 46 degrees 27 North and longitude 87 degrees 51 West.
The Back Forty Project is centered at latitude 46 degrees 27 North and longitude 87 degrees 51 West.
The facility also has an agitated leach circuit capable of producing gold and silver doré. We obtained water rights from the Mexican government for an amount of water that we believe is sufficient to meet our operating requirements and pump it approximately five kilometers to the site from a permitted well located near the Totolapam River.
The facility also has an agitated leach circuit capable of producing gold and silver doré. The Company obtained water rights from the Mexican government for an amount of water that it believes is sufficient to meet its operating requirements and pump it approximately five kilometers to the site from a permitted well located near the Totolapam River.
Two concessions are considered within the Arista mine. Location and Access: The Arista mine is located in the Sierra Madre del Sur Mountains of southern Mexico in the central part of the State of Oaxaca. The property is located along a major paved highway approximately 120 kilometers southeast of Oaxaca City, the state’s capital city.
Location and Access: The Arista Mine is located in the Sierra Madre del Sur Mountains of southern Mexico in the central part of the State of Oaxaca. The property is located along a major paved highway approximately 120 kilometers southeast of Oaxaca City, the state’s capital city.
The property is approximately four kilometers northwest from the village of San Jose de Gracia. We have constructed gravel and paved roads from the village to the mine and processing facility, which provide adequate access to the property.
The property is approximately four kilometers northwest from the village of San Jose de Gracia. The Company has constructed gravel and paved roads from the village to the mine and processing facility, which provide adequate access to the property.
Because of the exploratory nature of the property, we do not currently consider the Back Forty Project to be independently material to the Company. ​ Background: On December 10, 2021, the Company successfully completed the acquisition of all the issued and outstanding common shares of Aquila Resources Inc.
Because of the exploratory nature of the property, the Company does not currently consider the Back Forty Project to be independently material to the Company. ​ Background: On December 10, 2021, the Company successfully completed the acquisition of all the issued and outstanding common shares of Aquila.
Following the completion of the optimization work for the Back Forty Project, the Company published an update on Indicated and Inferred Mineral Resources in the Back Forty S-K1300 Technical Report filed on October 26, 2023. A Measured Mineral Resource estimate or a Mineral Reserve estimate have yet to be established for the Back Forty Project.
Following the completion of the optimization work for the Back Forty Project, the Company published an update on indicated and inferred Mineral Resources in the Back Forty Project Technical Report Summary released in October 2023. A measured Mineral Resource estimate or a Mineral Reserve estimate have yet to be established for the Back Forty Project.
Rey Property The Rey property consists of concessions on the far north-west end of our 55-kilometer structural corridor in the State of Oaxaca known as El Rey, El Virrey, La Reyna, and El Marquez, totaling 2,335 hectares. We acquired the El Virrey concession from a third-party, and it is subject to a 2% net smelter return royalty.
Rey Property The Rey property consists of concessions on the far north-west end of the 55-kilometer San Jose structural corridor in the State of Oaxaca known as El Rey, El Virrey, La Reyna, and El Marquez, totaling approximately 2,335 hectares. The Company acquired the El Virrey concession from a third-party, which is subject to a 2% net smelter return royalty.
Historically, we have produced ore from two locations on the Arista mine, the open pit mine and the underground mine. The open pit mineralization is considered low sulfidation epithermal-type with consisting primarily of gold with some silver and no base metals.
Historically, the Company has produced ore from two locations on the Arista Mine, the open pit mine and the underground mine. The open pit mineralization was considered low sulfidation epithermal-type consisting primarily of gold with some silver and no base metals.
As of December 31, 2016, proven and probable reserves had been established for the Mirador Underground Mine on our Alta Gracia property. In July 2017, mine development reached the economic ore zone of the Mirador vein, and mining began.
As of December 31, 2016, proven and probable Mineral Reserves had been established for the Mirador vein at the Alta Gracia Mine. In July 2017, mine development reached the economic ore zone of the Mirador vein, and mining began.
We completed the work required to maintain the claims during 2023, with work focused on analysis of spectral and geophysical information to identify new targets of interest. We expect to target a similar amount of work in 2024, along with identifying opportunities to strengthen our relationship in the local communities.
The Company completed the work required to maintain the claims during 2024, with work focused on analysis of spectral and geophysical information to identify new targets of interest. The Company expects to target a similar amount of work in 2025, along with identifying opportunities to strengthen its relationship in the local communities.
No reliable production records exist for the historic production performed in the Arista and Alta Gracia Project areas. Arista Mine Background: The Arista Mine currently holds 18 mining concessions aggregating 24,372 hectares. In 2002, the initial three concessions were leased from a third-party.
No reliable production records exist for the historic production performed in the Arista and Alta Gracia Project areas. Arista Mine Background: The Arista Mine currently holds 18 mining concessions aggregating 24,372 hectares. In 2002, three initial concessions were leased from a third-party. Two of the concessions are part of the Arista Mine, while the third concession comprises the Margaritas property.
It is not merely an inventory of all mineralization drilled or sampled.” Gold Resource Corporation 27 ​ ​ Table of Contents ​ ​ The following tables summarize the estimated Mineral Resources at DDGM and at Back Forty: Don David Gold Mine – Summary of Gold, Silver, and Base Metal Mineral Resources at December 31, 2023 (1)(2)(3)(4) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Description ​ KTonnes ​ Gold g/t ​ Silver g/t ​ Copper % ​ Lead % ​ ​ Zinc % ​ Cut-off grade ​ Metallurgical Recovery (%) Arista ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $/Tonne ​ Au ​ Ag ​ Cu ​ Pb ​ Zn Measured Mineral Resources ​ 68 ​ 1.49 ​ 109.69 ​ 0.42 ​ 1.42 ​ ​ 4.39 ​ 100 ​ 80 ​ 91 ​ 77 ​ 74 ​ 84 Indicated Mineral Resources ​ 489 ​ 1.10 ​ 131.89 ​ 0.28 ​ 1.33 ​ ​ 4.25 ​ 100 ​ 80 ​ 91 ​ 77 ​ 74 ​ 84 Measured + Indicated ​ 557 ​ 1.15 ​ 129.16 ​ 0.29 ​ 1.34 ​ ​ 4.26 ​ 100 ​ 80 ​ 91 ​ 77 ​ 74 ​ 84 Inferred Mineral Resources ​ 1,418 ​ 1.01 ​ 107.87 ​ 0.21 ​ 1.31 ​ ​ 3.68 ​ 100 ​ 80 ​ 91 ​ 77 ​ 74 ​ 84 Alta Gracia ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AuEq/tonne ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Measured Mineral Resources ​ 27 ​ 0.81 ​ 370.58 ​ ​ ​ ​ ​ ​ ​ ​ 2.35 ​ 85 ​ 72 ​ - ​ - ​ - Indicated Mineral Resources ​ 141 ​ 0.49 ​ 269.96 ​ ​ ​ ​ ​ ​ ​ ​ 2.35 ​ 85 ​ 72 ​ - ​ - ​ - Measured + Indicated ​ 168 ​ 0.54 ​ 286.13 ​ ​ ​ ​ ​ ​ ​ ​ 2.35 ​ 85 ​ 72 ​ - ​ - ​ - Inferred Mineral Resources ​ 148 ​ 0.62 ​ 259.61 ​ ​ ​ ​ ​ ​ ​ ​ 2.35 ​ 85 ​ 72 ​ - ​ - ​ - ​ Notes on Mineral Resources: 1.
Don David Gold Mine – Summary of Gold, Silver, and Base Metal Mineral Resources at December 31, 2023 (1)(2)(3)(4)(5) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Description ​ KTonnes ​ Gold g/t ​ Silver g/t ​ Copper % ​ Lead % ​ Zinc % ​ Cut-off grade ​ Metallurgical Recovery (%) Arista ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $/Tonne ​ Au ​ Ag ​ Cu ​ Pb ​ Zn Measured Mineral Resources ​ 68 ​ 1.49 ​ 109.69 ​ 0.42 ​ 1.42 ​ 4.39 ​ 100 ​ 80 ​ 91 ​ 77 ​ 74 ​ 84 Indicated Mineral Resources ​ 489 ​ 1.10 ​ 131.89 ​ 0.28 ​ 1.33 ​ 4.25 ​ 100 ​ 80 ​ 91 ​ 77 ​ 74 ​ 84 Measured + Indicated ​ 557 ​ 1.15 ​ 129.16 ​ 0.29 ​ 1.34 ​ 4.26 ​ 100 ​ 80 ​ 91 ​ 77 ​ 74 ​ 84 Inferred Mineral Resources ​ 1,418 ​ 1.01 ​ 107.87 ​ 0.21 ​ 1.31 ​ 3.68 ​ 100 ​ 80 ​ 91 ​ 77 ​ 74 ​ 84 Alta Gracia ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AuEq/tonne ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Measured Mineral Resources ​ 27 ​ 0.81 ​ 370.58 ​ - ​ - ​ - ​ 2.35 ​ 85 ​ 72 ​ - ​ - ​ - Indicated Mineral Resources ​ 141 ​ 0.49 ​ 269.96 ​ - ​ - ​ - ​ 2.35 ​ 85 ​ 72 ​ - ​ - ​ - Measured + Indicated ​ 168 ​ 0.54 ​ 286.13 ​ - ​ - ​ - ​ 2.35 ​ 85 ​ 72 ​ - ​ - ​ - Inferred Mineral Resources ​ 148 ​ 0.62 ​ 259.61 ​ - ​ - ​ - ​ 2.35 ​ 85 ​ 72 ​ - ​ - ​ - ​ Notes on Mineral Resources: 1.
More information regarding the assumptions, methodologies, and procedures utilized in the estimation of Mineral Resources at DDGM can be found in the updated Don David Gold Mine Technical Report Summary filed as Exhibit 96.2 to this Form 10-K (the “DDGM Technical Report Summary”).
More information regarding the assumptions, methodologies, and procedures utilized in the estimation of Mineral Resources at DDGM can be found in the updated Don David Gold Mine Technical Report Summary, effective as of December 31, 2024, which is incorporated by reference as Exhibit 96.2 to this Form 10-K (the “DDGM Technical Report Summary”).
We are required to pay concession fees to the Mexican government to maintain our interest in these concessions, and we pay concession fees for all our mineral properties, including those which are subject to the third-party lease.
The Company is required to pay concession fees to the Mexican government to maintain its interest in these concessions, and it pays concession fees for all the mineral properties, including those which are subject to the third-party lease.
Maintenance of concessions requires the semi-annual payment of mining duties (due in January and July) and the performance of assessment work, on a calendar year basis, with assessment work reports required to be filed in the month of May for the preceding calendar year.
Concessions grant the Company the right to explore and exploit all minerals found in the ground. Maintenance of concessions requires the semi-annual payment of mining duties (due in January and July) and the performance of assessment work, on a calendar year basis, with assessment work reports required to be filed in the month of May for the preceding calendar year.
The Cerro Colorado property is surrounded by our Chamizo concession, and we include it as part of the Chamizo property. The Chamizo Property is adjacent to the Alta Gracia property. Any future production from the Cerro Colorado concession is subject to a 2% net smelter return royalty in favor of Almaden.
The Cerro Colorado (Jabali) prospect is surrounded by the Chamizo concession, and the Company includes it as part of the Chamizo property. The Chamizo Property is adjacent to the Alta Gracia property. Any future production from the San Pedro Fraccion 2 concession is subject to a 2% net smelter return royalty in favor of Almaden.
Early in 2012, we completed a small amount of work to finish refurbishing and extending an existing shaft on the property to permit underground exploratory drilling. We ceased work at the Rey property during 2012, following a request to obtain additional approvals from local community agencies.
In early 2012, the Company completed a small amount of work to finish refurbishing and extending an existing shaft on the property to facilitate underground exploratory drilling. However, work ceased later that year following a request to obtain additional approvals from local community agencies.
Mineral Reserves Under S-K 1300, a Mineral Reserve is defined as “an estimate of tonnage and grade or quality of indicated and measured Mineral Resources that, in the opinion of the qualified person, can be the basis of an economically viable project.” Gold Resource Corporation 29 ​ ​ Table of Contents ​ ​ The following tables summarize the estimated Mineral Reserves at DDGM: Don David Gold Mine – Summary of Gold, Silver and Base Metal Mineral Reserves at December 31, 2023 (1) (2) (3) (4) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recovery Description ​ Tonnes ​ Gold g/t ​ Silver g/t ​ Cu (%) ​ Pb (%) ​ Zn (%) ​ Cut-off Grade ​ % Au ​ % Ag ​ % Cu ​ % Pb ​ % Zn Don David Gold Mine ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Arista Mine (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $/Tonne ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves ​ 90,000 ​ 2.91 ​ 176 ​ 0.50 ​ 1.65 ​ 5.02 ​ 120 ​ 79.5 ​ 91.1 ​ 76.6 ​ 73.9 ​ 83.9 Probable Mineral Reserves ​ 973,000 ​ 1.14 ​ 126 ​ 0.23 ​ 0.84 ​ 2.50 ​ 120 ​ 79.5 ​ 91.1 ​ 76.6 ​ 73.9 ​ 83.9 Arista Mine Total ​ 1,063,000 ​ 1.29 ​ 131 ​ 0.26 ​ 0.91 ​ 2.71 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Alta Gracia Mine (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AuEq/tonne ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ ​ ​ ​ ​ ​ Probable Mineral Reserves ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ ​ ​ ​ ​ ​ Alta Gracia Mine Total ​ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Don David Gold Mine Total ​ 1,063,000 ​ 1.29 ​ 131 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Notes on Mineral Reserves: 1.
Gold Resource Corporation 31 ​ ​ ​ Table of Contents ​ Mineral Reserves Under S-K 1300, a “Mineral Reserve” is defined as “an estimate of tonnage and grade or quality of measured and indicated Mineral Resources that, in the opinion of the qualified person, can be the basis of an economically viable project.” The following tables summarize the estimated Mineral Reserves at DDGM: Don David Gold Mine – Summary of Gold, Silver and Base Metal Mineral Reserves at December 31, 2024 (1) (2) (3) (4) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recovery Description ​ Tonnes Gold g/t Silver g/t Cu (%) ​ Pb (%) ​ Zn (%) Cut-off Grade (2) ​ % Au ​ % Ag ​ % Cu ​ % Pb ​ % Zn Don David Gold Mine ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Arista Mine (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $/Tonne ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves ​ 60,000 ​ 2.25 ​ 276 ​ 0.24 ​ 1.20 ​ 3.14 ​ 120 ​ 79.5 ​ 91.4 ​ 73.9 ​ 71.8 ​ 83.2 Probable Mineral Reserves ​ 1,057,000 ​ 1.21 ​ 136 ​ 0.17 ​ 0.70 ​ 2.19 ​ 120 ​ 79.5 ​ 91.4 ​ 73.9 ​ 71.8 ​ 83.2 Arista Mine Total ​ 1,117,000 ​ 1.26 ​ 143 ​ 0.18 ​ 0.73 ​ 2.24 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Alta Gracia Mine (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AuEq/tonne ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ ​ ​ ​ ​ ​ Probable Mineral Reserves ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ ​ ​ ​ ​ ​ Alta Gracia Mine Total ​ - ​ - ​ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Don David Gold Mine Total ​ 1,117,000 ​ 1.26 ​ 143 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Notes on Mineral Reserves: 1.
In addition, metallurgy, mining methods, ground control, and other parameters were Gold Resource Corporation 28 ​ ​ Table of Contents ​ ​ reviewed. As a result of this review, Measured and Indicated Mineral Resources decreased from approximately 1.6 million tonnes at December 31, 2022 to approximately 0.7 million tonnes at December 31, 2023.
In addition, metallurgy, mining methods, ground control, and other parameters were reviewed. As a result of this review, measured and indicated Mineral Resources decreased from approximately 0.73 million tonnes at December 31, 2023 to approximately 0.37 million tonnes at December 31, 2024.
Office Facilities: In Michigan, we own and operate an administrative office building in Stephenson, MI and another field office close to the location of the potential future mine facilities.
Office Facilities: In Michigan, the Company owns and operates an administrative office building in Stephenson, MI and another field office close to the location of the potential future mine facilities. ITEM 3 .
During 2022, surface mapping and geochemical sampling were begun in the Jabali prospect area. Results of this work were reviewed and analyzed in 2023 in order to plan additional detailed follow up geologic mapping and target evaluation.
In 2022, surface mapping and geochemical sampling commenced in the Jabali prospect area within the San Pedro Fraccion 2 concession. Results of this work were reviewed and analyzed in 2023 to plan further detailed follow-up geologic mapping and target evaluation.
The district is dominated by tertiary-age rhyolite flows and tuffs, which are underlain by andesite flows and tuffs. Granodiorite and felsic intrusives are observed to crop out to the north and east of the Mirador mine. Known vein occurrences at Alta Gracia are mainly hosted in andesite and rhyolite.
Geology and Mineralization: The sedimentary and volcanic units mapped at Alta Gracia are similar to those observed at the Arista Mine. The district is dominated by tertiary-age rhyolite flows and tuffs, which are underlain by andesite flows and tuffs. Granodiorite and felsic intrusives are observed to crop out to the north and east of the Mirador vein.
Rounding of tonnes, average grades, and contained ounces may result in apparent discrepancies with total rounded tonnes, average grades, and total contained ounces. ​ Gold Resource Corporation 30 ​ ​ Table of Contents ​ ​ Proven and Probable Mineral Reserves decreased from 1.4 million tonnes at December 31, 2022 to 1.1 million tonnes at December 31, 2023.
Rounding of tonnes, average grades, and contained ounces may result in apparent discrepancies with total rounded tonnes, average grades, and total contained ounces. ​ Proven and probable Mineral Reserves increased from 1.06 million tonnes at December 31, 2023 to 1.12 million tonnes at December 31, 2024.
Chamizo Property In June 2011, we acquired an exploration concession from the Mexican government of approximately 17,898 hectares referred to as Chamizo. In March 2013, we acquired a property known as Cerro Colorado from Almaden Minerals, Ltd. (“Almaden”) consisting of approximately 1,860 hectares.
Chamizo Property In June 2011, the Company acquired the Chamizo exploration concession from the Mexican government, covering approximately 17,898 hectares. In March 2013, the Company acquired the San Pedro Fraccion 2 concession from Almaden Minerals, Ltd. (“Almaden”), consisting of approximately 1,860 hectares including the Cerro Colorado (also known as Jabali) prospect.
Gold Resource Corporation 31 ​ ​ Table of Contents ​ ​ The table below details information related to the mining concessions that comprise our properties in Oaxaca, Mexico: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Number of Concessions ​ Total Size ​ Acquisition Date Range ​ ​ 2023 Maintenance Fees Paid ​ ​ ​ (in hectares) ​ ​ ​ ​ ​ Production Stage Properties: ​ ​ ​ ​ ​ ​ ​ ​ Arista ​ 18 ​ 24,372 ​ 2002 to 2016 ​ $ 556,090 ​ Alta Gracia ​ 3 ​ 5,175 ​ 2008 ​ ​ 118,289 ​ Total Production Stage Properties: ​ ​ ​ 29,547 ​ ​ ​ $ 674,379 ​ Exploration Stage Properties: ​ ​ ​ ​ ​ ​ ​ ​ Rey ​ 4 ​ 2,335 ​ 2002 to 2009 ​ $ 53,368 ​ Chamizo ​ 2 ​ 19,758 ​ 2011 to 2013 ​ ​ 451,601 ​ Margaritas ​ 1 ​ 925 ​ 2002 ​ ​ 21,143 ​ Fuego ​ 1 ​ 2,554 ​ 2013 ​ ​ 58,377 ​ Total Exploration Stage Properties: ​ ​ ​ 25,572 ​ ​ ​ $ 584,489 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total: ​ 29 ​ 55,119 ​ ​ ​ $ 1,258,868 ​ ​ Production Stage Properties Arista & Alta Gracia Mines History: The Arista and Alta Gracia mines are in the regional Tlacolula mining district within Oaxaca State, in southern Mexico.
Gold Resource Corporation 34 ​ ​ ​ Table of Contents ​ The table below details information related to the mining concessions that comprise the properties in Oaxaca, Mexico: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Number of Concessions ​ Total Size ​ Acquisition Date Range ​ ​ 2024 Maintenance Fees Paid ​ ​ ​ (in hectares) ​ ​ ​ ​ ​ Production Stage Properties: ​ ​ ​ ​ ​ ​ ​ ​ Arista ​ 18 ​ 24,372 ​ 2002 to 2016 ​ $ 579,801 ​ Alta Gracia ​ 3 ​ 5,175 ​ 2008 ​ ​ 123,332 ​ Total Production Stage Properties: ​ ​ ​ 29,547 ​ ​ ​ $ 703,133 ​ Exploration Stage Properties: ​ ​ ​ ​ ​ ​ ​ ​ Rey ​ 4 ​ 2,335 ​ 2002 to 2009 ​ $ 55,643 ​ Chamizo ​ 2 ​ 19,758 ​ 2011 to 2013 ​ ​ 470,852 ​ Margaritas ​ 1 ​ 925 ​ 2002 ​ ​ 22,044 ​ Fuego ​ 1 ​ 2,554 ​ 2013 ​ ​ 60,865 ​ Total Exploration Stage Properties: ​ ​ ​ 25,572 ​ ​ ​ $ 609,404 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total: ​ 29 ​ 55,119 ​ ​ ​ $ 1,312,537 ​ ​ Production Stage Properties Arista & Alta Gracia Mines History: The Arista and Alta Gracia Mines are in the regional Tlacolula mining district within Oaxaca State, in southern Mexico.
Gold Resource Corporation 32 ​ ​ Table of Contents ​ ​ ​ DDGM Ore Terminal In 2010, additional concessions were acquired from a third-party at no additional cost, which are subject to a 2% royalty. We filed for and received additional concessions from the Mexican government which are also not part of the concessions leased or acquired from the third-party.
Gold Resource Corporation 35 ​ ​ ​ Table of Contents ​ ​ DDGM Ore Terminal In 2010, additional concessions were acquired from a third-party at no additional cost, which are subject to a 2% royalty.
Location and Access: The Alta Gracia project is approximately 20 kilometers northeast of the village of San Pedro Totalapam, in the Municipality of San Pedro Totolapam. Access to the project is by a gravel road that departs the paved highway approximately 13 kilometers east of the village of San Pedro Totalapam.
Access to the project is by a gravel road that departs the paved highway approximately 13 kilometers east of the village of San Pedro Totalapam. The haulage distance by road from Alta Gracia to the DDGM processing facility is approximately 32 kilometers.
Don David Gold Mine All of the properties that make up our Don David Gold Mine are located in Oaxaca, Mexico, in what is known as the San Jose structural corridor, which runs 70 degrees north-west. Our properties comprise 55 continuous kilometers along this structural corridor, which spans three historic mining districts in Oaxaca.
Gold Resource Corporation 33 ​ ​ ​ Table of Contents ​ Don David Gold Mine All of the properties that make up the Don David Gold Mine are located in Oaxaca, Mexico, in what is known as the San Jose structural corridor, which trends 70 degrees north-west.
Development was established to access the mineralization, delineated by drill campaigns completed during 2018 and 2019 on the Mirador’s Independencia vein. Ore from the Mirador Mine, primarily silver ore, was transported by contracted haul trucks to and processed at our agitated leach plant at the DDGM processing facility, with the final product being doré.
Ore from the Alta Gracia Mine, primarily silver ore, was transported by contracted haul trucks to and processed at the agitated leach plant at the DDGM processing facility, with the final product being doré.
We have established surface rights agreements with the San Pedro Totolapam Ejido and the individuals impacted by our proposed operations which allow disturbance of the surface where necessary for our exploration activities and mining operations. Office Facilities We constructed an administrative office building adjacent to the DDGM processing facility and a mine office adjacent to the Arista Mine portal.
The Company has established surface rights agreements with the San Pedro Totolapam Ejido and the individuals impacted by the proposed operations which allow disturbance of the surface where necessary for the exploration activities and mining operations.
Optimization work related to the metallurgy and the economic model for the Back Forty Project was completed, and the Company released the Back Forty Project Technical Report Summary, which is incorporated by reference as Exhibit 96.1 to this Form 10-K.
Optimization work related to the metallurgy and the economic model for the Back Forty Project was completed, and the Company released the Back Forty Project Technical Report Summary in October 2023.
We also lease approximately 3,000 square feet of office space in Oaxaca City, Oaxaca. The lease commenced in 2012 and was renewed in December 2021 through the end of 2024.
Office Facilities The Company constructed an administrative office building adjacent to the DDGM processing facility and a mine office adjacent to the Arista Mine portal. The Company also leases approximately 3,000 square feet of office space in Oaxaca City, Oaxaca. The lease commenced in 2012 and was renewed in December 2024 through the end of 2027.
If exploration is successful, any mining would probably require an underground mine where ore could be trucked to the DDGM processing facility for processing. To date, we have drilled 48 core holes for a total of 5,273 meters at the Rey property.
If exploration proves successful, any ore extraction will likely require an underground Gold Resource Corporation 40 ​ ​ ​ Table of Contents ​ mine, with the ore to be trucked to the DDGM facility for processing. To date, the Company has drilled 48 core holes, totaling 5,273 meters, at the Rey property.
Rounding of tonnes, average grades, and contained ounces may result in apparent discrepancies with total rounded tonnes, average grades, and total contained ounces . ​ For comparison, as at December 31, 2022, DDGM’s estimates of Mineral Resources, exclusive of Mineral Reserves, are provided in the below table.
For comparison, as at December 31, 2023, DDGM’s estimates of Mineral Resources, exclusive of Mineral Reserves, are provided in the below table.
Exploration Activities: In 2023, an extensive underground drilling campaign at the Arista mine was successfully executed, completing 168 diamond drill holes totaling 36,350 meters. This program included a total of 150 underground infill drill holes, totaling 26,057 meters, with a specific emphasis on upgrading Mineral Resources to Mineral Reserves and delineating the multiple sub-parallel veins within the Switchback system.
Exploration Activities: In 2024, an underground diamond drilling campaign at the Arista Mine was successfully executed, completing 87 diamond drill holes totaling 12,761 meters. This program included 63 underground ore-control drill holes, totaling 4,974 meters, focused on upgrading Mineral Resources to Mineral Reserves in multiple veins within the Arista and Switchback vein systems.
The map below shows the general location of our properties: ​ The Company was granted concessions from the Mexican federal government to explore and mine our properties in Mexico. Please see below Item 2. Properties—Mining Concessions and Regulations in Mexico below for additional information. We hold certain properties as the concession holder and lease other properties from third-parties.
Properties—Mining Concessions and Regulations in Mexico below for additional information. The Company holds certain properties as the concession holder and lease other properties from third parties.
Rounding of tonnes, average grades, and contained ounces may result in apparent discrepancies with total rounded tonnes, average grades, and total contained ounces. For comparison, as at December 31, 2022, DDGM’s estimates of Mineral Reserves are presented in the table below.
The Arista Mine NSR cut-off grades for Mineral Reserves are $120/tonne. 3. Alta Gracia Mineral Reserves reported at December 31, 2022 have been downgraded to Mineral Resources for the December 31, 2023 and 2024 estimates. 4. Rounding of tonnes, average grades, and contained ounces may result in apparent discrepancies with total rounded tonnes, average grades, and total contained ounces.
Rounding of tonnes, average grades, and contained ounces may result in apparent discrepancies with total rounded tonnes, average grades, and total contained ounces . ​ During 2023, we performed a comprehensive review of our geological database and interpretation of the mineralization, the block models derived from them, and ultimately the mine plan to ensure more reliable and accurate mine planning and forecasting.
Gold Resource Corporation 30 ​ ​ ​ Table of Contents ​ During 2024, the Company performed a comprehensive review of its geological database and interpretation of the mineralization, the block models derived from them, and ultimately the mine plan to ensure more reliable and accurate mine planning and forecasting.
Additionally, a diesel power generation plant, a compressed air system, and a mine water pumping station were developed and put into service. In 2018, old workings were improved to create a second access to the vein system called Independencia. The portal for this access is located approximately 500 meters southwest of the Mirador portal.
In 2018, old workings were improved to create a second access to the vein system called Independencia. The portal for this access is located approximately 500 meters southwest of the Mirador portal. Development was established to access the mineralization, delineated by drill campaigns completed during 2018 and 2019 on the Independencia vein.
The veins at Alta Gracia are considered low sulfidation epithermal mineralization with economic values only for gold and silver. Facilities: During 2016, we received our operating permit for the Mirador Mine. In 2017, two mine portals were developed to provide access to the Mirador vein. Mine site offices and a mobile equipment maintenance shop were established.
Known vein occurrences at Alta Gracia are mainly hosted in andesite and rhyolite. The veins at Alta Gracia are considered low sulfidation epithermal mineralization with economic values only for gold and silver. Facilities: During 2016, the Company received the operating permit to commence production from the Mirador vein at Alta Gracia.
Subject to meeting minimum exploration requirements, there is no expiration term for the lease. We may terminate it at any time upon written notice to the lessor, and the lessor may terminate it if we fail to fulfill any of our obligations, which primarily consist of paying the appropriate royalty to the lessor.
The Company may terminate the lease at any time upon written notice to the lessor, and the lessor may terminate it if the Company fails to fulfill any of its obligations, which primarily consist of paying the appropriate royalty to the lessor. In August 2003, initial drilling and exploration programs commenced at the Arista Mine.
Different targets within the Chamizo property will continue to be evaluated in 2024, while also looking to identify opportunities to strengthen our relationship in the local communities to facilitate future work. Fuego Property In March 2013, we acquired the Fuego property from Almaden subject to a 2% net smelter return royalty.
Different targets within the Chamizo property as a whole will continue to be evaluated in 2025, while also focusing on identifying opportunities to strengthen relationships in the local communities to facilitate future work. Fuego Property In March 2013, the Company acquired the San Pedro Fraccion 1 concession from Almaden, consisting of approximately 2,554 hectares including the Fuego property.
Mining Concessions and Regulations in Mexico Mineral rights in Mexico belong to the Mexican federal government and are administered pursuant to Article 27 of the Mexican Constitution. All of our mining concessions are exploitation concessions, which may be granted or transferred to Mexican citizens and corporations. Our leases or concessions are held by our Mexican subsidiary DDGM.
All of the mining concessions are exploitation concessions, which may be granted or transferred to Mexican citizens and corporations. The Company’s leases or concessions are held by the Mexican subsidiary DDGM. Exploitation concessions have a term of 50 years and can be renewed for another 50 years.
Don David Gold Mine – Summary of Gold, Silver and Base Metal Mineral Reserves at December 31, 2022 (1) (2) (3) (4) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recovery Description ​ Tonnes ​ Gold g/t ​ Silver g/t ​ Cu (%) ​ Pb (%) ​ Zn (%) ​ Cut-off Grade ​ % Au ​ % Ag ​ % Cu ​ % Pb ​ % Zn Don David Gold Mine ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Arista Mine (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $/Tonne ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves ​ 236,800 ​ 2.34 ​ 146 ​ 0.37 ​ 1.60 ​ 4.12 ​ 80 ​ 81.6 ​ 90.8 ​ 71.2 ​ 70.4 ​ 84.2 Probable Mineral Reserves ​ 1,120,300 ​ 0.92 ​ 83 ​ 0.24 ​ 0.84 ​ 2.75 ​ 80 ​ 81.6 ​ 90.8 ​ 71.2 ​ 70.4 ​ 84.2 Arista Mine Total ​ 1,357,100 ​ 1.17 ​ 94 ​ 0.26 ​ 0.97 ​ 2.99 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Alta Gracia Mine (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AuEq/tonne ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves ​ 3,000 ​ 0.85 ​ 392 ​ 0.01 ​ 0.12 ​ 0.25 ​ 2.35 ​ 85.0 ​ 72.0 ​ ​ ​ ​ ​ ​ Probable Mineral Reserves ​ 50,800 ​ 0.27 ​ 169 ​ 0.00 ​ 0.03 ​ 0.05 ​ 2.35 ​ 85.0 ​ 72.0 ​ ​ ​ ​ ​ ​ Alta Gracia Mine Total ​ 53,800 ​ 0.30 ​ 181 ​ 0.00 ​ 0.04 ​ 0.06 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Don David Gold Mine Total ​ 1,410,900 ​ 1.14 ​ 97 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Notes on Mineral Reserves: 1.
Don David Gold Mine – Summary of Gold, Silver and Base Metal Mineral Reserves at December 31, 2023 (1) (2) (3) (4) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recovery Description ​ Tonnes Gold g/t Silver g/t Cu (%) ​ Pb (%) ​ Zn (%) Cut-off Grade (2) ​ % Au ​ % Ag ​ % Cu ​ % Pb ​ % Zn Don David Gold Mine ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Arista Mine (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $/Tonne ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves ​ 90,000 ​ 2.91 ​ 176 ​ 0.50 ​ 1.65 ​ 5.02 ​ 120 ​ 79.5 ​ 91.1 ​ 76.6 ​ 73.9 ​ 83.9 Probable Mineral Reserves ​ 973,000 ​ 1.14 ​ 126 ​ 0.23 ​ 0.84 ​ 2.50 ​ 120 ​ 79.5 ​ 91.1 ​ 76.6 ​ 73.9 ​ 83.9 Arista Mine Total ​ 1,063,000 ​ 1.29 ​ 131 ​ 0.26 ​ 0.91 ​ 2.71 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Alta Gracia Mine (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AuEq/tonne ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ ​ ​ ​ ​ ​ Probable Mineral Reserves ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ ​ ​ ​ ​ ​ Alta Gracia Mine Total ​ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Don David Gold Mine Total ​ 1,063,000 ​ 1.29 ​ 131 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Notes on Mineral Reserves: 1.
Mineral Resources that are not Mineral Reserves are materials of economic interest with reasonable prospects for economic extraction . 4.
Mineral Resources that are not Mineral Reserves are materials of economic interest with reasonable prospects for economic extraction. 5. Rounding of tonnes, average grades, and contained ounces may result in apparent discrepancies with total rounded tonnes, average grades, and total contained ounces.
The deductions were partially offset by the reclassification of 0.7 million tonnes from Measured and Indicated Mineral Resources to Proven and Probable Mineral Reserves as a result of detailed engineering for the Arista Mine.
There was no appreciable conversion of measured and indicated Mineral Resources to proven and probable Mineral Reserves in 2024. Mineral Reserves were depleted by 0.35 million tonnes from 2024 mining activities and by an additional 0.03 million tonnes resulting from engineering deductions at the Arista Mine.
Our exploration efforts on the Arista, Alta Gracia, and other properties demonstrate our commitment to long-term investment and the potential to extend our operations into the future in Oaxaca, Mexico. Please see Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information concerning our mining operations at the Alta Gracia project.
Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information concerning mining operations at the Alta Gracia project.
In 2024, we plan to continue working with the local agencies to understand and address any concerns the community may have, but we have Gold Resource Corporation 37 ​ ​ Table of Contents ​ ​ no assurance that we will be able to resume our exploration activities in the near term.
In 2025, the Company plans to continue working with local agencies to understand and address any concerns of the community, but otherwise the Company has no assurance that exploration activities will resume in the near term. Once community support is secured, the Company plans to conduct follow-up drilling and exploration based on the 2007 and 2008 drilling results.
Two of the concessions are part of the Arista Mine, and the third concession comprises the Margaritas property. The lease agreement is subject to a 4% net smelter return royalty where production is sold in the form of gold/silver doré and 5% for production sold in concentrate form.
In November 2023, the royalties related to the lease agreement were renegotiated, reducing the net smelter return royalty from 4% to 3% for production sold in the form of gold/silver doré, and from 5% to 3% for production sold in concentrate form. Subject to meeting minimum exploration requirements, there is no expiration term for the lease.
The contributing factors to this decrease was the reclassification of Measured and Indicated Mineral Resource to Proven and Probable Reserves resulting in a decrease of 0.7 million tonnes, the application of economic constraining parameters (engineering) resulting in a decrease of 1.4 million tonnes, and change in the NSR cutoff grade from $80/tonne to $100/tonne resulting in a decrease of 0.6 million tonnes.
The primary factor for this decrease was the change in the NSR cutoff grade from $100/tonne to $120/tonne resulting in a decrease of 0.89 million tonnes.
The definitions for Mineral Resources in S-K 1300 were followed which are consistent with CIM (2014) definitions and are exclusive of Mineral Reserves. 3. Mineral Resources that are not Mineral Reserves are materials of economic interest with reasonable prospects for economic extraction . 4.
The definitions for Mineral Resources in S-K 1300 were followed, which are consistent with definitions outlined by the Canadian Institute of Mining’s Definition Standards for Mineral Resources & Mineral Reserves (“CIM (2014)”) and are exclusive of Mineral Reserves. 3. The Arista Mine cut-off grade applied to Mineral Resources estimated at December 31, 2024 is $120/tonne NSR. 4.
These reductions were partially offset by the addition of 1.8 million tonnes related to the 2023 infill and step-out drilling program. The total Inferred Mineral Resources decreased from approximately 2.1 million tonnes at December 31, 2022 to approximately 1.6 million tonnes at December 31, 2023.
These reductions were partially offset by a 0.02 million tonne increase due to higher metal prices and the conversion and addition of 0.51 million tonnes of inferred Mineral Resource to measured and indicated Mineral Resource, attributed to the 2024 infill and step-out drilling program.
The Fuego property consists of approximately 2,554 hectares and is located south of our Alta Gracia and Chamizo properties. In 2013, Fuego was included in the property-wide airborne geophysical survey. Geologic mapping and surface sampling have been conducted on the Fuego property, which allows us to meet the acceptable amount of work required to maintain the claims.
Any future production from this concession is subject to a 2% net smelter return royalty in favor of Almaden. The Fuego property, located south of the Alta Gracia and Chamizo properties, was included in the property-wide airborne geophysical survey conducted in 2013.
The Three Sisters vein system lies at the northern limit of the Arista mine underground workings and also between the Switchback and Arista vein systems. The Tree Sisters drilling during 2023 focused on the Sandy veins, which are open to the northwest and up- and down-dip.
Both the Arista and Switchback vein systems extend over 1.5 kilometers in strike length and remain open along strike, as well as up- and down-dip. The Three Sisters vein system, currently comprising 10 veins, including the recently discovered Gloria vein, is located at the northern limit of the Arista Mine underground workings, between the Switchback and Arista vein systems.
In August 2003, initial drilling and exploration program commenced at the Arista mine. Through the end of 2023, we have drilled a total of 1,794 core holes (both surface and underground) totaling 482,271 meters and 166 reverse circulation holes equaling 14,367 meters, for a total of 1,960 holes totaling 496,638 meters.
By the end of 2024, the Company had drilled a total of 1,881 core holes (both surface and underground) totaling 495,032 meters and 166 reverse circulation holes totaling 14,367 meters, for a grand total of 2,047 holes totaling 509,399 meters.
The decrease in Inferred Mineral Resources was mainly due to infill drilling and the reclassification of Inferred Mineral Resources to Measured and Indicated Mineral Resources along with optimized mine planning.
The total inferred Mineral Resources increased from approximately 1.56 million tonnes at December 31, 2023 to approximately 1.99 million tonnes at December 31, 2024. The increase in inferred Mineral Resources was mainly due to the successful 2024 infill and step-out drilling program at the Three Sisters vein system along with optimized mine planning.

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Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeGold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 45 ​ ​ Table of Contents ​ ​ Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 46 ​ ​ Table of Contents ​ ​ Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 47 ​ ​ Table of Contents ​ ​ Financial Measures The following table summarizes certain financial data of the Company for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended December 31, ​ ​ 2023 ​ 2022 ​ ​ (in thousands) Doré and concentrate sales ​ $ 109,386 ​ $ 151,159 Less: Treatment and refining charges ​ ​ (11,630) ​ ​ (12,072) Realized/unrealized derivatives, net ​ ​ (28) ​ ​ (363) Sales, net ​ ​ 97,728 ​ ​ 138,724 Total cost of sales ​ ​ 103,043 ​ ​ 108,976 Mine gross (loss) profit ​ ​ (5,315) ​ ​ 29,748 Other costs and expenses, including tax: ​ ​ 10,702 ​ ​ 36,069 Net loss ​ $ (16,017) ​ $ (6,321) ​ ​ ​ ​ ​ ​ ​ Other Non-GAAP Financial Measures: ​ ​ ​ ​ ​ ​ Total cash cost after co-product credits per AuEq oz sold (1) ​ $ 1,250 ​ $ 458 Total consolidated all-in sustaining cost after co-product credits per AuEq oz sold (1) ​ $ 1,864 ​ $ 1,093 Total all-in cost after co-product credits per AuEq oz sold (1) ​ $ 2,062 ​ $ 1,442 ​ (1) For a detailed description of each of the non-GAAP financial measures and a reconciliation to GAAP financial measures, please see the discussion under Item 7.
Biggest changeThe following table summarizes certain non-GAAP financial data of the Company for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended December 31, ​ ​ ​ 2024 2023 Other Non-GAAP Financial Measures: ​ (in thousands) ​ Total cash cost after co-product credits per AuEq oz sold (1) ​ $ 2,330 ​ $ 1,250 ​ Total consolidated all-in sustaining cost after co-product credits per AuEq oz sold (1) ​ $ 3,200 ​ $ 1,861 ​ Total all-in cost after co-product credits per AuEq oz sold (1) ​ $ 3,325 ​ $ 2,060 ​ (1) For a detailed description of each of the non-GAAP financial measures and a reconciliation to GAAP financial measures, please see the discussion under Item 7.
Transfer Agent Computershare Trust Company, N.A. is the transfer agent for our common stock. The principal office of Computershare is located at 6200 S. Quebec St., Greenwood Village, CO 80111, and its telephone number is (303) 262-0600. Correspondence should be mailed to P.O. Box 43078, Providence, RI 02940-3078 or couriered to 150 Royall St., Suite 101, Canton, MA 0202.
Transfer Agent Computershare Trust Company, N.A. is the transfer agent for the common stock. The principal office of Computershare is located at 6200 S. Quebec St., Greenwood Village, CO 80111, and its telephone number is (303) 262-0600. Correspondence should be mailed to P.O. Box 43078, Providence, RI 02940-3078 or couriered to 150 Royall St., Suite 101, Canton, MA 0202.
Management believes these measures may also be important to investors in evaluating our performance. For a detailed description of each of the non-GAAP financial measures, please see the discussion under Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations below.
Management believes these measures may also be important to investors in evaluating the Company’s performance. For a detailed description of each of the non-GAAP financial measures, please see the discussion under Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations below.
Introduction We are a mining company that pursues gold and silver projects that are expected to achieve both low operating costs and high returns on capital. DDGM holds six properties and includes mineral production primarily from the Arista underground mine.
Introduction The Company is a mining company that pursues gold and silver projects that are expected to achieve both low operating costs and high returns on capital. DDGM holds six properties and includes mineral production primarily from the Arista underground mine.
Our average metal prices realized will therefore differ from the market average metal prices in most cases.
The average metal prices realized will therefore differ from the market average metal prices in most cases.
The increase is due to the higher all-in sustaining costs discussed above, offset by lower Back Forty costs due to completion of the optimization work in October 2023. For a detailed description of each of the non-GAAP financial measures and a reconciliation to GAAP financial measures, please see the discussion below under
The 61% increase is due to the higher all-in sustaining costs discussed above, offset by lower Back Forty costs due to completion of the optimization work in October 2023. For a detailed description of each of the non-GAAP financial measures and a reconciliation to GAAP financial measures, please see the discussion below under Item 7.
The following discussion summarizes our results of operations for the two fiscal years ended December 31, 2023 and 2022 and our financial condition as of December 31, 2023 and 2022, with a particular emphasis on the year ended December 31, 2023 .
The following discussion summarizes the results of operations for the two fiscal years ended December 31, 2024 and 2023 and the financial condition as of December 31, 2024 and 2023, with a particular emphasis on the year ended December 31, 2024 .
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 42 ​ ​ Table of Contents ​ ​ Results of Operations Don David Gold Mine Production Statistics Mine activities during 2023 included development and ore extraction from the Arista mine.
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 45 ​ ​ Table of Contents ​ Results of Operations Don David Gold Mine Production Statistics Mine activities during 2024 included development and ore extraction from the Arista Mine.
The discussion also presents certain non-GAAP financial measures that are important to management in its evaluation of our operating results and which are used by management to compare our performance with what we perceive to be peer group mining companies and are relied on as part of management’s decision-making process.
The discussion also presents certain non-GAAP financial measures that are important to management in its evaluation of the operating results and which are used by management to compare the performance with what the Company perceives to be peer group mining companies and is relied on as part of management’s decision-making process.
This discussion and analysis of our financial condition and results of operations should be read in conjunction with the audited consolidated financial statements and related notes included in this report and with the understanding that our actual future results may be materially different from what we currently expect.
This discussion and analysis of the financial condition and results of operations should be read in conjunction with the audited consolidated financial statements and related notes included in this report and with the understanding that the actual future results may be materially different from what the Company currently expects.
Although production costs were lower for the twelve months ended December 31, 2023 compared to the same period last year, the strengthening peso and increased energy costs negatively impacted production costs and, therefore, the cost per tonne processed and the total cash cost after co-product credits per AuEq oz sold.
Although production costs were lower for the year ended December 31, 2024 compared to the same period last year, the increased energy costs negatively impacted production costs and, therefore, the cost per tonne processed and the total cash cost after co-product credits per AuEq oz sold.
Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Measures below. Full-year 2023 compared to full-year 2022 Total cash cost after co-product credits per AuEq oz sold: For the twelve months ended December 31, 2023, the total cash cost after co-product credits per AuEq oz sold was $1,250 compared to $458 for the same period in 2022.
Management’s Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Measures below. Full-year 2024 compared to full-year 2023 Total cash cost after co-product credits per AuEq oz sold: For the year ended December 31, 2024, the total cash cost after co-product credits per AuEq oz sold was $2,330 compared to $1,250 for the same period in 2023.
Back Forty Project expenses: For the year ended December 31, 2023, the Back Forty Project expenses totaled $1.6 million as compared to $8.8 million for the year ended December 31, 2022. Costs were lower in 2023, as the optimization work was completed in October 2023.
Back Forty Project expenses: For the year ended December 31, 2024, the Back Forty Project expenses totaled $0.4 million, as compared to $1.6 million for the year ended December 31, 2023. Costs were lower in 2024, as the optimization work was completed in October 2023.
Metals produced and sold is less than the amount of metals produced because a portion of the metals present in the materials shipped is withheld by the purchaser of our doré and concentrates under the terms of the Company’s sales contracts, as explained above.
Metals produced and sold is less than the amount of metals produced because a portion of the metals present in the materials shipped is withheld by the purchaser of concentrates under the terms of the Company’s sales contracts.
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 43 ​ ​ Table of Contents ​ ​ Full-year 2023 compared to full-year 2022 Key drivers in the production and financial results for the twelve months ended December 31, 2023, as compared to the same period in 2022, relate to the lower tonnes mined and changes in metal grades.
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 46 ​ ​ Table of Contents ​ Full-year 2024 compared to full-year 2023 Key drivers in the production and financial results for the year ended December 31, 2024, as compared to the same period in 2023, relate to the lower tonnes mined, lower metal grades, and lower recoveries.
The decrease in production costs is related to lower production in 2023 . ​ Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 48 ​ ​ Table of Contents ​ ​ Mine gross (loss) profit For the year ended December 31, 2023, mine gross loss and mine gross loss percent totaled $5.3 million and 5% respectively, as compared to a mine gross profit and mine gross profit percent of $29.7 million and 21% for the same period in 2022.
The decrease in production costs is related to lower production in 2024 . ​ Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 50 ​ ​ Table of Contents ​ Mine gross loss For the year ended December 31, 2024, mine gross loss and mine gross loss percent totaled $20.5 million and 31% respectively, as compared to a mine gross loss and mine gross loss percent of $5.2 million and 5% for the same period in 2023.
The percentage payable metal—the amount of metal sold as a percent of the metal produced—were higher for all metals for the twelve months ended December 31, 2023, compared to same period in 2022, due to the minerology of the material mined.
The percentage payable metal—the amount of metal sold as a percent of the metal produced—were lower for all metals except copper for the year ended December 31, 2024, compared to same period in 2023, due to the minerology of the material mined.
As grades decline, recoveries are expected to decline as well; however, there are other factors that may influence this general assumption . ​ Our base metal average grades for the twelve months ended December 31, 2023 were 0.36% for copper, 1.52% for lead, and 3.45% for zinc, compared to 0.39% for copper, 1.80% for lead, and 4.36% for zinc in 2022.
As grades decline, recoveries are expected to decline as well; however, there are other factors that may influence this general assumption . ​ The base metal average grades for the year ended December 31, 2024 were 0.26% for copper, 1.10% for lead, and 2.70% for zinc, compared to 0.36% for copper, 1.52% for lead, and 3.45% for zinc in 2023.
We produce gold and silver doré and metal concentrates which contain precious metals of gold and silver and base metals of copper, lead, and zinc.
The Company produces gold and silver doré and metal concentrates which contain precious metals of gold and silver and base metals of copper, lead, and zinc.
The increase is directly related to the higher cash costs per ounce discussed above, partially offset by lower sustaining capital expenditures.
The 72% increase is directly related to the higher cash costs per ounce discussed above, partially offset by lower sustaining capital expenditures, lower reclamation and remediation costs, and lower general and administrative expenses.
In our financial statements, we report the sale of all precious and base metals as revenue, and we periodically review our revenue streams to ensure that this treatment remains appropriate. We consider precious metals to be the long-term primary driver of our economic decisions and believe that base metals are secondary products for non-GAAP financial measures.
In the financial statements, the Company reports the sale of all precious and base metals as revenue, and it periodically reviews revenue streams to ensure that this treatment remains appropriate. The Company considers precious metals to be the long-term primary driver of its economic decisions and believes that base metals are secondary products for non-GAAP financial measures.
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 50 ​ ​ Table of Contents ​ ​ Other Non-GAAP Financial Measures Certain Non-GAAP financial measures are discussed below. For a detailed description of each of these measures and a reconciliation to GAAP financial measures, please see the discussion under Item 7.
For a detailed description of each of these measures and a reconciliation to GAAP financial measures, please see the discussion under Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Measures below.
Total consolidated all-in sustaining cost after co-product credits per AuEq oz sold: For the twelve months ended December 31, 2023, the total consolidated all-in sustaining cost after co-product credits per AuEq oz sold was $1,864 compared to $1,093 for the same period in 2022.
Total consolidated all-in sustaining cost after co-product credits per AuEq oz sold: For the year ended December 31, 2024, the total consolidated all-in sustaining cost after co-product credits per AuEq oz sold was $3,200 compared to $1,861 for the same period in 2023.
Treatment charges Treatment charges for the twelve months ended December 31, 2023, were $11.6 million, or $697 per tonne of base metal produced and sold, as compared to $12.1 million, or $578 per tonne of base metal produced and sold for the same period in 2022.
Treatment charges Treatment charges for the year ended December 31, 2024, were $5.7 million, or $627 per tonne of base metal produced and sold, as compared to $11.6 million, or $697 per tonne of base metal produced and sold for the same period in 2023.
(2) Based on actual days the mill operated during the period. (3) The difference between what we report as "ounces/tonnes produced" and "payable ounces/tonnes sold" is attributable to the difference between the quantities of metals contained in the concentrates we produce versus the portion of those metals actually paid for according to the terms of our sales contracts.
(2) Based on actual days the mill operated during the period. (3) The difference between what the Company reports as “ounces/tonnes produced” and “payable ounces/tonnes sold” is attributable to the difference between the quantities of metals contained in the concentrates it produces versus the portion of those metals actually paid for according to the terms of the sales contracts.
As shown in the DDGM Technical Report Summary filed as Exhibit 96.2 to this Form 10-K, gold and silver grades are expected to decline over time, in line with the life of mine average shown in the Mineral Reserve and Mineral Resource tables.
As shown in the DDGM Technical Report Summary, gold and silver grades are expected to decline over time, in line with the life of mine average shown in the Mineral Resources and Mineral Reserves tables.
This 21% cost increase in treatment charge per metal tonne sold due to a 32% increased contractual rate for copper treatment charges and for a 21% increase in zinc treatment charges which are based on spot and benchmark rates. These are slightly offset by a 30% decrease in contractual rate for lead treatment charges.
The lower treatment charge per metal tonne sold was due to a 28% decrease in contractual rate for copper treatment charges and because of a 32% decrease in zinc treatment charges which are based on spot and benchmark rates. These were partially offset by a 17% increase in contractual rate for lead treatment charges.
ITEM 5. MARKET FOR REGISTRANT’ S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information Our common stock trades on the New York Stock Exchange American (“NYSE”) under the symbol “GORO”. On March 20, 2024, there were 88,757,610 shares of Gold Resource Corporation, which were held by approximately 200 holders of record.
ITEM 5. MARKET FOR REGISTRANT’ S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information The Company’s common stock trades on the NYSE American under the symbol “GORO”. On April 4, 2025, there were 120,442,686 shares of Gold Resource Corporation, which were held by approximately 200 holders of record.
The following table summarizes certain production statistics about our Don David Gold Mine for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended December 31, ​ ​ 2023 ​ 2022 Arista Mine ​ ​ ​ ​ ​ ​ Milled ​ ​ ​ ​ ​ ​ Tonnes Milled ​ ​ 458,111 ​ ​ 491,983 Grade ​ ​ ​ ​ ​ ​ Average Gold Grade (g/t) ​ ​ 1.73 ​ ​ 2.56 Average Silver Grade (g/t) ​ ​ 85 ​ ​ 83 Average Copper Grade (%) ​ ​ 0.36 ​ ​ 0.39 Average Lead Grade (%) ​ ​ 1.52 ​ ​ 1.80 Average Zinc Grade (%) ​ ​ 3.45 ​ ​ 4.36 Recoveries ​ ​ ​ ​ ​ ​ Average Gold Recovery (%) ​ ​ 79.6 ​ ​ 83.9 Average Silver Recovery (%) ​ ​ 91.6 ​ ​ 92.0 Average Copper Recovery (%) ​ ​ 77.5 ​ ​ 75.6 Average Lead Recovery (%) ​ ​ 73.0 ​ ​ 75.4 Average Zinc Recovery (%) ​ ​ 85.4 ​ ​ 83.7 Combined ​ ​ ​ ​ ​ ​ Tonnes Milled (1) ​ ​ 459,171 ​ ​ 493,241 Tonnes Milled per Day (2) ​ ​ 1,436 ​ ​ 1,466 Metal production (3) ​ ​ ​ ​ ​ ​ Gold (ozs.) ​ ​ 20,328 ​ ​ 34,122 Silver (ozs.) ​ ​ 1,142,138 ​ ​ 1,213,404 Copper (tonnes) ​ ​ 1,287 ​ ​ 1,436 Lead (tonnes) ​ ​ 5,068 ​ ​ 6,665 Zinc (tonnes) ​ ​ 13,513 ​ ​ 17,943 Metal produced and sold (3) ​ ​ ​ ​ ​ ​ Gold (ozs.) ​ ​ 18,534 ​ ​ 30,119 Silver (ozs.) ​ ​ 1,036,229 ​ ​ 1,057,209 Copper (tonnes) ​ ​ 1,231 ​ ​ 1,348 Lead (tonnes) ​ ​ 4,501 ​ ​ 5,391 Zinc (tonnes) ​ ​ 10,954 ​ ​ 14,157 Percentage payable metal (3) ​ ​ ​ ​ ​ ​ Gold (%) ​ ​ 91 ​ ​ 88 Silver (%) ​ ​ 91 ​ ​ 87 Copper (%) ​ ​ 96 ​ ​ 94 Lead (%) ​ ​ 89 ​ ​ 81 Zinc (%) ​ ​ 81 ​ ​ 79 ​ (1) During the first and second quarter of 2022 and during the first quarter of 2023, tonnes milled includes 1,043, 215, and 1,060 purchased tonnes, respectively, related to a collaborative initiative with a local community to ensure the proper environmental treatment and storage of the material.
The following table summarizes certain production statistics about the Don David Gold Mine for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended December 31, ​ ​ 2024 ​ 2023 Arista Mine ​ ​ ​ ​ ​ ​ Milled ​ ​ ​ ​ ​ ​ Tonnes Milled ​ ​ 356,633 ​ ​ 458,111 Grade ​ ​ ​ ​ ​ ​ Average Gold Grade (g/t) ​ ​ 1.13 ​ ​ 1.73 Average Silver Grade (g/t) ​ ​ 92 ​ ​ 85 Average Copper Grade (%) ​ ​ 0.26 ​ ​ 0.36 Average Lead Grade (%) ​ ​ 1.10 ​ ​ 1.52 Average Zinc Grade (%) ​ ​ 2.70 ​ ​ 3.45 Recoveries ​ ​ ​ ​ ​ ​ Average Gold Recovery (%) ​ ​ 76.6 ​ ​ 79.6 Average Silver Recovery (%) ​ ​ 87.5 ​ ​ 91.6 Average Copper Recovery (%) ​ ​ 68.5 ​ ​ 77.5 Average Lead Recovery (%) ​ ​ 68.4 ​ ​ 73.0 Average Zinc Recovery (%) ​ ​ 81.1 ​ ​ 85.4 Combined ​ ​ ​ ​ ​ ​ Tonnes Milled (1) ​ ​ 356,633 ​ ​ 459,171 Tonnes Milled per Day (2) ​ ​ 1,277 ​ ​ 1,436 Metal production ​ ​ ​ ​ ​ ​ Gold (ozs.) ​ ​ 9,906 ​ ​ 20,328 Silver (ozs.) ​ ​ 919,836 ​ ​ 1,142,138 Copper (tonnes) ​ ​ 642 ​ ​ 1,287 Lead (tonnes) ​ ​ 2,682 ​ ​ 5,068 Zinc (tonnes) ​ ​ 7,805 ​ ​ 13,513 Metal produced and sold ​ ​ ​ ​ ​ ​ Gold (ozs.) ​ ​ 8,598 ​ ​ 18,534 Silver (ozs.) ​ ​ 817,333 ​ ​ 1,036,229 Copper (tonnes) ​ ​ 641 ​ ​ 1,231 Lead (tonnes) ​ ​ 2,173 ​ ​ 4,501 Zinc (tonnes) ​ ​ 6,286 ​ ​ 10,954 Percentage payable metal (3) ​ ​ ​ ​ ​ ​ Gold (%) ​ ​ 87 ​ ​ 91 Silver (%) ​ ​ 89 ​ ​ 91 Copper (%) ​ ​ 100 ​ ​ 96 Lead (%) ​ ​ 81 ​ ​ 89 Zinc (%) ​ ​ 81 ​ ​ 81 ​ (1) During the first quarter of 2023, tonnes milled includes 1,060 purchased tonnes, related to a collaborative initiative with a local community to ensure the proper environmental treatment and storage of the material.
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 44 ​ ​ Table of Contents ​ ​ Sales Statistics The following table summarizes certain sales statistics about the Don David Gold Mine operations for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended December 31, ​ ​ 2023 ​ 2022 Net sales ​ ​ ​ ​ ​ ​ Gold ​ $ 35,944 ​ $ 54,319 Silver ​ ​ 24,205 ​ ​ 22,757 Copper ​ ​ 10,472 ​ ​ 11,987 Lead ​ ​ 9,540 ​ ​ 11,626 Zinc ​ ​ 29,225 ​ ​ 50,470 Less: Treatment and refining charges ​ ​ (11,630) ​ ​ (12,072) Realized and unrealized gain (loss) - embedded derivative, net ​ ​ (28) ​ ​ (363) Total sales, net ​ $ 97,728 ​ $ 138,724 Metal produced and sold ​ ​ ​ ​ ​ ​ Gold (ozs.) ​ ​ 18,534 ​ ​ 30,119 Silver (ozs.) ​ ​ 1,036,229 ​ ​ 1,057,209 Copper (tonnes) ​ ​ 1,231 ​ ​ 1,348 Lead (tonnes) ​ ​ 4,501 ​ ​ 5,391 Zinc (tonnes) ​ ​ 10,954 ​ ​ 14,157 Average metal prices realized (1) ​ ​ ​ ​ ​ ​ Gold ($ per oz.) ​ $ 1,955 ​ $ 1,801 Silver ($ per oz.) ​ $ 23.68 ​ $ 21.53 Copper ($ per tonne) ​ $ 8,513 ​ $ 8,795 Lead ($ per tonne) ​ $ 2,158 ​ $ 2,129 Zinc ($ per tonne) ​ $ 2,621 ​ $ 3,539 Gold equivalent ounces sold ​ ​ ​ ​ ​ ​ Gold Ounces ​ ​ 18,534 ​ ​ 30,119 Gold Equivalent Ounces from Silver ​ ​ 12,551 ​ ​ 12,638 Total AuEq oz ​ ​ 31,085 ​ ​ 42,757 ​ (1) Average metal prices realized vary from the market metal prices due to final settlement adjustments from our provisional invoices when they are settled.
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 47 ​ ​ Table of Contents ​ Sales Statistics The following table summarizes certain sales statistics about the Don David Gold Mine operations for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended December 31, ​ ​ 2024 ​ 2023 Net sales ( in thousands) ​ ​ ​ ​ ​ ​ Gold ​ $ 19,774 ​ $ 35,944 Silver ​ ​ 23,146 ​ ​ 24,205 Copper ​ ​ 5,827 ​ ​ 10,472 Lead ​ ​ 4,402 ​ ​ 9,540 Zinc ​ ​ 17,313 ​ ​ 29,225 Less: Treatment and refining charges ​ ​ (5,706) ​ ​ (11,630) Realized and unrealized gain (loss) - embedded derivative, net ​ ​ 970 ​ ​ (28) Total sales, net ​ $ 65,726 ​ $ 97,728 Metal produced and sold ​ ​ ​ ​ ​ ​ Gold (ozs.) ​ ​ 8,598 ​ ​ 18,534 Silver (ozs.) ​ ​ 817,333 ​ ​ 1,036,229 Copper (tonnes) ​ ​ 641 ​ ​ 1,231 Lead (tonnes) ​ ​ 2,173 ​ ​ 4,501 Zinc (tonnes) ​ ​ 6,286 ​ ​ 10,954 Average metal prices realized (1) ​ ​ ​ ​ ​ ​ Gold ($ per oz.) ​ $ 2,354 ​ $ 1,955 Silver ($ per oz.) ​ $ 28.75 ​ $ 23.68 Copper ($ per tonne) ​ $ 9,223 ​ $ 8,513 Lead ($ per tonne) ​ $ 2,034 ​ $ 2,158 Zinc ($ per tonne) ​ $ 2,804 ​ $ 2,621 Gold equivalent ounces sold ​ ​ ​ ​ ​ ​ Gold Ounces ​ ​ 8,598 ​ ​ 18,534 Gold Equivalent Ounces from Silver ​ ​ 9,982 ​ ​ 12,551 Total AuEq oz ​ ​ 18,580 ​ ​ 31,085 ​ (1) Average metal prices realized vary from the market metal prices due to final settlement adjustments from provisional invoices when they are settled.
As shown in the DDGM Technical Report Summary filed as Exhibit 96.2 to this Form 10-K, future recoveries and grades are expected to be in line with the life of mine average shown in the Mineral Reserve and Mineral Resource tables.
As shown in the DDGM Technical Report, future recoveries and grades are expected to be in line with the life of mine average shown in the Mineral Resources and Mineral Reserves tables.
Production For the year ended December 31, 2023, the Oaxaca operations processed 459,171 tonnes of ore, at an average rate of 1,436 daily tonnes, a decrease of 7% in material processed and a decrease of 2% in tonnes milled per day from prior year. 20,328 gold ounces and 1,142,138 silver ounces were produced, reflecting a decrease of 40% and 6%, respectively, from the same period in 2022.
Production For the year ended December 31, 2024, the Oaxaca operations processed 356,633 tonnes of ore, at an average rate of 1,277 daily tonnes, a decrease of 22% in material processed and a decrease of 11% in tonnes milled per day from prior year. 9,906 gold ounces and 919,836 silver ounces were produced, reflecting a decrease of 51% and 19%, respectively, from the same period in 2023.
Total cost of sales Total cost of sales of $103.0 million in 2023 decreased by $5.9 million, or 5%, compared to 2022. The primary driver is the $4.8 million, or 6% decrease in production costs from $80.9 million in 2022 to $76.1 million in 2023, and a $1.1 million, or 4% decrease in depreciation expense.
Total cost of sales Total cost of sales of $86.2 million for the year ended December 31, 2024 decreased by $16.7 million, or 16%, compared to 2023. The primary driver is the $10.6 million, or 14%, decrease in production costs from $76.1 million in 2023 to $65.6 million in 2024, and a $8.0 million, or 31%, decrease in depreciation expense.
Grades & Recoveries During the twelve months ended December 31, 2023, we processed ore with an average gold grade of 1.73 g/t, as compared to 2.56 g/t for the same period in 2022. Full-year average gold grade was approximately 32% lower than the prior year, in line with our mine sequencing plan.
Grades & Recoveries During the year ended December 31, 2024, the Company processed ore with an average gold grade of 1.13 g/t, as compared to 1.73 g/t for the same period in 2023. Full-year average gold grade was approximately 35% lower than the prior year, due to approaching the extremities of the ore body and lower definition drilling.
The decrease in 2023 sales is the result of lower tonnes processed and lower grades for gold and base metals.
The decrease in 2024 sales is the result of lower tonnes processed and lower grades realized for gold and base metals, coupled with lower recoveries for all metals, partially offset by higher gold, silver, copper, and zinc prices.
Compared to the same period in 2022, the average metal price for gold, silver, and lead increased by 9%, 10%, and 1%, respectively, while the average metal price for copper and zinc decreased by 3% and 26%, respectively.
Compared to the same period in 2023, the average metal price for gold, silver, copper, and zinc increased by 20%, 21%, 8%, and 7% respectively, due to strong demand for these metals in the international markets. The average metal price for lead decreased by 6%.
Full-year 2023 compared to full-year 2022 ​ Metal Sold During the twelve months ended December 31, 2023, gold sales of 18,534 ounces, silver sales of 1,036,229 ounces, copper sales of 1,231 tonnes, lead sales of 4,501 tonnes, and zinc sales of 10,954 tonnes decreased by 38%, 2%, 9%, 17%, and 23%, respectively, as compared to the same period in 2022.
Full-year 2024 compared to full-year 2023 ​ Metal Sold During the year ended December 31, 2024, gold sales of 8,598 ounces, silver sales of 817,333 ounces, copper sales of 641 tonnes, lead sales of 2,173 tonnes, and zinc sales of 6,286 tonnes decreased by 54%, 21%, 48%, 52%, and 43%, respectively, as compared to the same period in 2023.
These treatment charge agreements are negotiated on an annual basis with the spot rate adjusted quarterly on zinc. The decrease in treatment charges in 2023 compared to 2022 was the result of lower metals production and therefor decreased revenue as compared to 2022 due to both reduced tonnes mined and processed, and lower grades realized on the tonnage.
The 51% decrease in treatment charges, or 10% decrease in treatment and refining charges cost per tonne of base metal produced and sold in 2024 compared to 2023, was the result of lower metals production and therefore decreased revenue as compared to 2023 due to both reduced tonnes mined and processed, and lower grades realized on the tonnage.
We expect grades to vary from period to period based on the annual mine plan. The gold grades are expected to trend downwards over time, toward the average grade of 1.29 g/t (exclusive of silver, copper, lead, and zinc contained grades), reflected in our Mineral Reserves estimate.
The gold grades are expected to trend downwards over time, toward the average grade of 1.26 g/t (exclusive of silver, copper, lead, and zinc contained grades), reflected in the Mineral Reserves estimate. However, as capital intensive mine development progresses and infill drilling occurs, opportunities to refine mining methods and eliminate dilution may have a favorable impact on future mined grades.
Total all-in cost after co-product credits per AuEq oz sold: For the twelve months ended December 31, 2023, the total all-in cost after co-product credits per AuEq oz sold was $2,062 compared to $1,442 for the same period in 2022.
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 53 ​ ​ Table of Contents ​ Total all-in cost after co-product credits per AuEq oz sold: For the year ended December 31, 2024, the total all-in cost after co-product credits per AuEq oz sold was $3,325 compared to $2,060 for the same period in 2023.
Our actual future results or actions may differ materially from these forward-looking statements for many reasons, including but not limited to the risks described in “Item 1A. Risk Factors” and elsewhere in this annual report and other reports filed by us with the SEC.
The Company cautions you not to put undue reliance on any forward-looking statements, which speak only as of the date of this report. See “Forward-Looking Statements” above. The Company’s actual future results or actions may differ materially from these forward-looking statements for many reasons, including but not limited to the risks described in “Item 1A.
MANAGEMENT’S DISCUSSION AND ANALYSI S OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Except for the historical information, the following discussion contains forward-looking statements that are subject to risks and uncertainties. We caution you not to put undue reliance on any forward-looking statements, which speak only as of the date of this report. See “Forward-Looking Statements” above.
RESERVED. ​ ​ Gold Resource Corporation 44 ​ ​ ​ Table of Contents ​ ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSI S OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Except for the historical information, the following discussion contains forward-looking statements that are subject to risks and uncertainties.
Other expense, net: For the year ended December 31, 2023, we recorded other expense of $3.4 million compared to $4.3 million during the year ended December 31, 2022.
Stock-based compensation : For both the years ended December 31, 2024 and 2023, stock-based compensation expense totaled $0.7 million. Other expense, net: For the year ended December 31, 2024, the Company recorded other expense, net, of $19.5 million compared to $11.7 million during the year ended December 31, 2023.
The increase is due to the lower amount of co-product credits we received during the twelve months ended December 31, 2023, the 27% decrease in total number of AuEq ounces sold, and the 4% decrease in treatment and refining charges as a result of an increase in the zinc treatment charge benchmark and spot price.
This 86% increase is due to the 11% higher total cash cost after co-product credits and the 40% decrease in total number of AuEq ounces sold. The higher total cash cost after co-product credits is the result of the 43% lower amount of co-product credits the Company received during the year ended December 31, 2024.
The production decrease for gold is directly related to the decrease in gold grade and recovery in 2023 as compared to the same periods in 2022. Production for copper, lead, and zinc decreased by 10%, 24%, and 25%, respectively, for the three months ending December 31, 2023, compared the same period in 2022.
Production for copper, lead, and zinc decreased by 50%, 47%, and 42%, respectively, for the year ended December 31, 2024, compared the same period in 2023. Production decreases are mostly related to the decrease in the remaining available mining areas in 2024 compared to the same periods in 2023.
These decreases were expected due to mine sequencing. Average metal prices realized During the twelve months ended December 31, 2023, the average metal prices were $1,955 per ounce for gold, $23.68 per ounce for silver, $8,513 per tonne for copper, $2,158 per tonne for lead, and $2,621 per tonne for zinc.
Average metal prices realized During the year ended December 31, 2024, the average metal prices were $2,354 per ounce for gold, $28.75 per ounce for silver, $9,223 per tonne for copper, $2,034 per tonne for lead, and $2,804 per tonne for zinc.
Net loss For the year ended December 31, 2023, we recorded a net loss from operations of $16.0 million, as compared to $6.3 million net loss during the same period in 2022.
Net cash used in investing activities for the year ended December 31, 2024 was $6.4 million compared to $12.5 million during the same period in 2023.
The change was attributable to the factors noted above. ​ ​ ​ Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 49 ​ ​ Table of Contents ​ ​ Other Costs and Expenses, Including Taxes ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended December 31, ​ ​ ​ 2023 ​ 2022 ​ ​ (in thousands) ​ Other costs and expenses: ​ ​ ​ ​ ​ ​ ​ General and administrative expenses ​ $ 6,583 ​ $ 8,048 ​ Mexico exploration expenses ​ ​ 4,167 ​ ​ 4,244 ​ Michigan Back Forty Project expenses ​ ​ 1,642 ​ ​ 8,805 ​ Stock-based compensation ​ ​ 681 ​ ​ 1,955 ​ Realized and unrealized loss on zinc zero cost collar ​ ​ - ​ ​ 170 ​ Other (income) expense, net ​ ​ 3,364 ​ ​ 4,288 ​ Total other costs and expenses ​ ​ 16,437 ​ ​ 27,510 ​ (Benefit) provision for income taxes ​ ​ (5,735) ​ ​ 8,559 ​ Total other costs, including taxes ​ $ 10,702 ​ $ 36,069 ​ ​ Full-year 2023 compared to full-year 2022 General and administrative expenses: For the year ended December 31, 2023, general and administrative expenses totaled $6.6 million compared to $8.0 million for the same period of 2022.
Other Costs and Expenses, Including Taxes ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended December 31, ​ ​ ​ ​ ​ ​ 2024 ​ 2023 ​ ​ ​ ​ ​ ​ ​ ​ Restated ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ ​ Other costs and expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ General and administrative expenses ​ $ 4,283 ​ $ 6,583 ​ ​ ​ ​ Mexico exploration expenses ​ ​ 1,959 ​ ​ 4,167 ​ ​ ​ ​ Michigan Back Forty Project expenses ​ ​ 378 ​ ​ 1,642 ​ ​ ​ ​ Stock-based compensation ​ ​ 677 ​ ​ 681 ​ ​ ​ ​ Other expense, net ​ ​ 19,452 ​ ​ 11,729 ​ ​ ​ ​ Total other costs and expenses ​ ​ 26,749 ​ ​ 24,802 ​ ​ ​ ​ Income tax provision (benefit) ​ ​ 9,261 ​ ​ (5,882) ​ ​ ​ ​ Total other costs and expenses, including taxes ​ $ 36,010 ​ $ 18,920 ​ ​ ​ ​ ​ Full-year 2024 compared to full-year 2023 General and administrative expenses: For the year ended December 31, 2024, general and administrative expenses totaled $4.3 million compared to $6.6 million for the same period of 2023.
The relationship between sales and operating costs, and therefore mine gross profit or loss, is not perfectly correlated to the tonnes of ore processed.
The mine gross profit or loss maintains a limited correlation to tonnes of ore processed; however, multiple factors will impact the net sales and operating costs figures contained within the mine gross profit or loss in comparison to the tonnes of ore processed.
The decrease in mine gross profit and loss and mine gross profit and loss percent of $35.1 million and 27%, respectively, when compared to the same period in 2022, primarily resulted from the $41.0 million decrease in net sales year-over-year.
This is an increase in mine gross loss and mine gross loss percent of $15.3 million and 26%, respectively, when compared to the same period in 2023.
As of February 13, 2023, to protect our balance sheet and to focus our capital resources on exploration and growth opportunities, thus to maximize shareholder value, the company suspended the quarterly dividend payments until such time that it may become practicable to reinstate. ITEM 6. RESERVED ​ Gold Resource Corporation 41 ​ ​ Table of Contents ​ ​ ITEM 7.
Dividend Policy Approximately $123.0 million in dividends have been returned to shareholders since commercial production began at DDGM in July 2010. As of February 13, 2023, to conserve cash for future development and exploration, thus maximizing shareholder value, the Company suspended the quarterly dividend payments until such time that it may become practicable to reinstate them. ITEM 6.
Please see Item 8. Financial Statements and Supplementary Data—Note 17. Other (Income) Expense, Net for additional information. Provision for income taxes. For the year ended December 31, 2023, income tax benefit increased to $5.7 million from an $8.6 million income tax expense for the same period in 2022.
Provision for income taxes. For the year ended December 31, 2024, income tax expense was $9.3 million, an increase of $15.2 million in expenses from a $5.9 million income tax benefit for the same period in 2023. This increase is primarily driven by the valuation allowance recorded during 2024 on the deferred tax assets of DDGM. Please see Item 8.
The decrease in 2023 net sales when compared to 2022 is explained by the 32% decrease in gold grade and the base metal grade decreases for copper, lead, and zinc of 8%, 16%, and 21%, respectively. The decrease in operating costs is explained chiefly by the targeted decreases in exploration and general and administrative expenses.
The lower net sales were further impacted by lower grades realized, including a 35% decrease in gold grade and base metal grade decreases for copper, lead, and zinc of 28%, 28%, and 22%, respectively.
Stock-based compensation : For the year ended December 31, 2023, stock-based compensation expense totaled $0.7 million as compared to $2.0 million for the year ended December 31, 2022. This decrease is due to personnel changes and lower share price in 2023.
DDGM Exploration expenses: For the year ended December 31, 2024, the DDGM exploration expenses totaled $2.0 million as compared to $4.2 million for the year ended December 31, 2023. Costs were lower in 2024, due to the suspension of exploration drilling beginning August 1, 2024, in order to preserve cash.
Removed
Dividend Policy Approximately $123 million in dividends have been returned to our shareholders since commercial production began at DDGM in July 2010.
Added
Risk Factors” and elsewhere in this annual report and other reports filed by the Company with the SEC.
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These results align with the 2023 mine plan and were considered in the 2023 guidance disclosed in the 2022 Annual Report. Financial results have also been impacted unfavorably by the strengthening Mexican peso and the lower zinc price realized in 2023.
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Although lower results were expected in accordance with the 2024 mine plan, additional factors included significant issues with equipment availability due to the age and condition of some of the critical mining equipment in use at the mine, and mechanical issues experienced within the mill and wet ore handling difficulties due to the unusually high rain fall this year.
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The average silver grade for the year ending 2023 increased 2% to 85 g/t. While silver grade and recovery were similar to prior year, recovery for gold declined 5% in 2023 and is in line as per mine plan.
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The average silver grade for the year ending 2024 increased 8% to 92 g/t. While silver grade increased, recovery was lower by 4%, compared to prior year, because of the unplanned mineralogy of the mineral, with higher silica-limestone contents. Recovery for gold declined 4% in 2024 due to lower grades.
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Copper, Lead and zinc grades for the 12 months ending December 31, 2023 declined by 8%, 16% and 21%, respectively, in line with our mine sequencing plan.
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Copper, lead and zinc grades for the year ended December 31, 2024 declined by 28%, 28% and 22%, respectively. Recoveries also decreased for all base metals due to the lower grades.
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Production decreases are mostly related to the decrease in base metal grades in 2023 compared to the same periods in 2022, as well as a result of lower tonnes processed, as expected and in line with the 2023 mine plan.
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The production decrease for gold is directly related to the decrease in gold grade and recovery in 2024 as compared to the same periods in 2023. The production decrease for silver is also affected by the unplanned mineralogy of the mineral, with higher silica-limestone contents.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations —— Non-GAAP Measures below. Full-year 2023 compared to full-year 2022 Sales, net DDGM net sales of $97.7 million for the year ended December 31, 2023 decreased by $41.0 million, or 30%, when compared to 2022.
Added
Decreases were expected due to mine sequencing, but the lower amount of metals produced and available for sale were due to significant issues with equipment availability due to the age and condition of some of the critical mining equipment in use at the mine, and mechanical issues experienced within the mill and wet ore handling difficulties due to the unusually high rainfall during the wet season.
Removed
While both sales and operating costs are impacted by the tonnes of ore processed, other factors—the grade of ore processed, metal commodity prices, and operating cost unit prices—tend to have a greater impact on the relationship to mine gross profit.
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Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 48 ​ ​ Table of Contents ​ Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 49 ​ ​ Table of Contents ​ Financial Measures The following table summarizes certain financial data of the Company for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended December 31, ​ ​ ​ 2024 ​ 2023 ​ ​ ​ ​ ​ ​ Restated ​ ​ (in thousands) ​ Doré and concentrate sales ​ $ 70,462 ​ $ 109,386 ​ Less: Treatment and refining charges ​ ​ (5,706) ​ ​ (11,630) ​ Realized/unrealized derivatives, net ​ ​ 970 ​ ​ (28) ​ Sales, net ​ ​ 65,726 ​ ​ 97,728 ​ Total cost of sales ​ ​ 86,217 ​ ​ 102,952 ​ Mine gross loss ​ ​ (20,491) ​ ​ (5,224) ​ Other costs and expenses, including taxes ​ ​ 36,010 ​ ​ 18,920 ​ Net loss ​ $ (56,501) ​ $ (24,144) ​ ​ Full-year 2024 compared to full-year 2023 Sales, net DDGM net sales of $65.7 million for the year ended December 31, 2024 decreased by $32.0 million, or 33%, when compared to 2023.
Removed
For example, in 2023, the volume of ore processed decreased 7% compared to 2022, with net sales also decreasing by 30% and operating costs decreasing by 40%.
Added
This 10% cost decrease in the per tonne of base metal produced and sold is due to both lower base metals produced and sold in 2024 as compared to 2023 and lower treatment charges per metal tonne.
Removed
However, as capital intensive mine development progresses and infill drilling occurs, opportunities to refine mining methods and eliminate dilution may have a favorable impact on future mined grades. One component of gross profit or loss is concentrate treatment charges, which are netted against concentrate sales.
Added
For example, concerning net sales, attributes of the tonnes of ore processed (including ore grade and processing recoveries) along with metal commodity prices can result in lower or higher sales.
Removed
The $1.4 million decrease in the twelve months ended December 31, 2023, as compared to the same period in 2022, is due allocating more job duties directly related to production at DDGM from corporate employees in 2023. DDGM Exploration expenses: For the years ended December 31, 2023 and 2022 DDGM exploration expenses remained flat at $4.2 million.
Added
Mine operating costs include variable costs that maintain a correlation to the tonnes both mined and processed (i.e., equipment usage, reagents, inventory consumables, royalties etc.) and further include fixed costs which maintain a lower correlation to the tonnes of ore processed (i.e. payroll, utilities, insurance, mining concessions, etc.).
Removed
The $0.9 million decrease from 2022 was due to $0.7 million lower realized and unrealized currency gains and losses and lower other expense that includes $0.7 million lower expense related to the contingent consideration, offset by $0.6 million higher interest on the streaming liabilities and $0.9 million higher severance payments in 2023 due to planned reduction of work force.
Added
The increase in the mine gross loss as shown in the table above between 2024 and 2023 is primarily explained by the impact of a 22% decrease in ore tonnes processed that results in lower net sales realized and partially offset by lower variable related mine operating costs.
Removed
The 2023 income tax benefit is primarily driven by the decrease in pre-tax income at DDGM. Please see Item 8. Financial Statements and Supplementary Data—Note 4. Income Taxes for additional information.
Added
The decrease in mine operating costs as shown in the table above are due to lower variable related mining and processing costs as related to the lower volume of ore processed. The Company expects grades to vary from period to period based on the annual mine plan.
Added
One component of gross profit or loss is the concentrate treatment charges, which are netted against concentrate sales. During 2024, the Company negotiated treatment charge agreements with buyers on both annual and spot terms.
Added
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 51 ​ ​ Table of Contents ​ Net loss For the year ended December 31, 2024, the Company recorded a net loss of $56.5 million, as compared to $24.1 million net loss during the same period in 2023. The change was attributable to the factors noted above.

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Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeITEM 6: Reserved ​ 41 ITEM 7 : Management’s Discussion and Analysis of Financial Condition and Results of Operations ​ 42 ITEM 7A : Quantitative and Qualitative Disclosures About Market Risk ​ 62 ITEM 8 : Financial Statements and Supplementary Data ​ 64 ITEM 9 : Changes in and Disagreements with Accountants on Accounting and Financial Disclosure ​ 99 ITEM 9A : Controls and Procedures ​ 99 ITEM 9B : Other Information ​ 99
Biggest changeITEM 6: Reserved ​ 44 ITEM 7 : Management’s Discussion and Analysis of Financial Condition and Results of Operations ​ 45 ITEM 7A : Quantitative and Qualitative Disclosures About Market Risk ​ 64 ITEM 8: Financial Statements ​ 66 ITEM 9 : Changes in and Disagreements with Accountants on Accounting and Financial Disclosure ​ 126 ITEM 9A : Controls and Procedures ​ 126 ITEM 9B : Other Information ​ 127

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Measures .
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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The Company may be required to repay a significant amount if it defaults under certain gold and silver stream agreements. In connection with the Aquila acquisition, the Company assumed substantial liabilities related to the Gold and Silver Stream Agreements with Osisko (the “Osisko Stream Agreements”).
Removed
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 51 ​ ​ Table of Contents ​ ​ 2023 Capital and Exploration Investment Summary ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended December 31, 2023 ​ 2023 full-year guidance ​ ​ (in thousands) Sustaining Investments: ​ ​ ​ ​ ​ ​ Underground Development Capital $ 4,386 ​ ​ ​ Infill Drilling Capitalized Exploration ​ 4,096 ​ ​ ​ Other Sustaining Capital Capital ​ 1,420 ​ ​ ​ Surface and Underground Exploration Development & Other Capitalized Exploration ​ 1,139 ​ ​ ​ Subtotal of Sustaining Investments: ​ ​ 11,041 ​ $ 9 - 11 million Growth Investments: ​ ​ ​ ​ ​ ​ DDGM growth: ​ ​ ​ ​ ​ ​ Surface Exploration / Other Exploration ​ 2,240 ​ ​ ​ Underground Exploration Drilling Exploration ​ 1,927 ​ ​ ​ Underground Exploration Development Capitalized Exploration ​ 357 ​ ​ ​ Back Forty growth: ​ ​ ​ ​ ​ ​ Back Forty Project Optimization & Permitting Exploration ​ 1,642 ​ ​ ​ Subtotal of Growth Investments: ​ ​ 6,166 ​ $ 6 - 7 million Total Capital and Exploration: ​ $ 17,207 ​ $ 15 - 18 million ​ The Company’s investment in Mexico totaled $15.1 million in 2023.
Added
Under the Osisko Stream Agreements, Osisko deposited a total of $37.2 million upfront in exchange for a portion of the future gold and silver production from the Back Forty Project. The Osisko Stream Agreements contain customary provisions regarding default and security.
Removed
Our investment in Mexico is focused on favorably impacting our environmental, social, and governance programs while creating operational efficiencies and longevity.
Added
In the event that the Company’s subsidiary defaults under the Osisko Stream Agreements, including by failing to achieve commercial production by an agreed upon date, it may be required to repay the deposit plus accumulated interest at a rate agreed with Osisko.
Removed
At the Back Forty Project, $1.6 million was spent to wrap up the optimization work and to release the Back Forty Project Technical Report Summary, which was filed as Exhibit 96.1 to the Form 8-K filed on October 26, 2023.
Added
If the Company fails to do so, Osisko may elect to enforce its remedies as a secured party and take possession of the assets that comprise the Back Forty Project. The Company’s revenues are concentrated among a select few customers. Any interruption in the Company’s relationship with such customers could materially affect the Company’s operating results.
Removed
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 52 ​ ​ Table of Contents ​ ​ ​ ​ ​ ​ ​ DDGM Ore Transportation Underground and Exploration Development: Mine development during the quarter included ramps and accesses to different areas of the deposit, vertical shafts, and exploration development drifts.
Added
During the year ended December 31, 2024, three customers accounted for 91% of the Company’s revenue from DDGM. In the event that the Company’s relationship with any of the customers is interrupted for any reason, the Company believes that it would be able to locate another entity to purchase its products in a timely manner on substantially similar terms.
Removed
A total of 2,420 meters of underground development and exploration development, at a cost of $5.9 million, was completed during the year, including access to new exploration drill stations for both infill and expansion programs. Back Forty Feasibility and Permitting: Work on optimizing the Back Forty Project was completed during the third quarter of 2023.
Added
However, any interruption could temporarily disrupt the sale of the Company’s principal products and materially adversely affect its operating results. Operational Risks The Company’s production is derived from a single operating unit, and any interruptions or stoppages in its mining activities at that operating unit would materially adversely affect revenue.
Removed
Mine planning, process plant design, site layout, and infrastructure were largely completed during 2022. As a result, the Company filed the Back Forty Project Technical Report Summary on October 26, 2023.
Added
The Company is dependent on revenues from a single operating unit to fund its operations. Any interruption in the Company’s ability to mine this location, such as a labor strike, natural disaster, or loss of permits would negatively impact its ability to generate revenue following such interruption.
Removed
Results of the work indicate a more robust economic project with no planned impacts to wetlands that is more protective of the environment, which should facilitate a successful mine permitting process. The Board continues to evaluate options that could lead to the development of the Project.
Added
Additionally, if the Company is unable to develop additional mines economically, it will eventually deplete the body of mineralized material and will no longer generate cash flow sufficient to fund its operations.
Removed
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 53 ​ ​ Table of Contents ​ ​ Non-GAAP Measures Throughout this report, we have provided information prepared or calculated according to U.S. GAAP and have referenced some non-GAAP performance measures which we believe will assist with understanding the performance of our business.
Added
A decrease in, or cessation of, the Company’s mining operations at this operating unit would materially adversely affect its financial performance and may eventually cause the Company to cease operations.
Removed
These measures are based on precious metal gold equivalent ounces sold and include cash cost before co-product credits per ounce, total cash cost after co-product credits per ounce, and total all-in sustaining cost per ounce (“AISC”). Because the non-GAAP performance measures do not have any standardized meaning prescribed by U.S.
Added
Gold Resource Corporation 14 ​ ​ ​ Table of Contents ​ Since the Company’s current property portfolio is limited to one operating unit, its ability to be profitable over the long-term will depend on the Company’s ability to (1) expand the known Arista, Switchback and Three Sisters vein systems and /or identify, explore, and develop additional properties in Mexico, (2) successfully develop the Back Forty Project in Michigan, USA, or (3) acquire and develop an alternative project.
Removed
GAAP, they may not be comparable to similar measures presented by other companies. Accordingly, these measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP. These non-GAAP measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP.
Added
Gold and silver producers must continually replace reserves depleted by production to maintain production levels over the long-term and provide a return on invested capital. Depleted reserves can be replaced in several ways, including expanding known ore bodies, locating new deposits, or acquiring interests in reserves from third parties.
Removed
For financial reporting purposes, we report the sale of base metals as part of our revenue. Revenue generated from the sale of base metals in our concentrates is considered a co-product of our gold and silver production for the purpose of our total cash cost after co-product credits for our Don David Gold Mine.
Added
Exploration is highly speculative in nature, capital intensive, involves many risks, and frequently unproductive. The Company’s current or future exploration programs may not result in new mineralization. Even if significant mineralization is discovered, it will likely take many years from the initial phases of exploration until commencement of production, during which time the economic feasibility of production may change.
Removed
We periodically review our revenues to ensure that our reporting of primary products and co-products remains appropriate.
Added
From time to time, the Company may acquire mineral interests from other parties. Such acquisitions are based on an analysis of a variety of factors, including historical exploration results, estimates and assumptions regarding the extent of mineralized material and/or reserves, the timing of production from such reserves, and cash and other operating costs.
Removed
Because we consider copper, lead, and zinc to be co-products of our precious metal production, the value of these metals continues to be applied as a reduction to total cash costs in our calculation of total cash cost after co-product credits per gold equivalent ounce sold.
Added
In addition, the Company may rely on data and reports prepared by third parties, which may contain information or data that the Company would be unable to independently verify or confirm. All of these factors are uncertain and may impact the Company’s ability to develop the mineral interests.
Removed
Gold equivalent is determined by taking gold ounces produced and sold, plus silver ounces produced and sold, converted to gold equivalent ounces using the gold to silver average realized price ratio for the period.
Added
As a result of these uncertainties, the Company’s exploration programs and any acquisitions which it may pursue may not result in the expansion or replacement of its current production with new ore reserves or operations, which could have a material adverse effect on the Company’s business, prospects, results of operations, and financial position.
Removed
We believe the identification of copper, lead, and zinc as co-product credits is appropriate because of their lower individual economic value compared to gold and silver and due to the fact that gold and silver are the primary products we intend to produce.
Added
Increased operating and capital costs have materially adversely impacted the Company’s results of operations and could continue to do so in the near term.
Removed
Total cash cost, after co-product credits, is a measure developed by the Gold Institute in an effort to provide a uniform standard for comparison purposes. AISC is calculated based on the current guidance from the World Gold Council.
Added
Costs at the Company’s mining properties are subject to fluctuation due to a number of factors, such as variable ore grade, changing metallurgy, and revisions to mine plans in response to the physical shape and location of the ore body, as well as the age and utilization rates for the mining and processing-related facilities and equipment.
Removed
Total cash cost before co-product credits includes all direct and indirect production costs related to our production of metals (including mining, milling, and other plant facility costs, royalties, and site general and administrative costs) less stock-based compensation allocated to production costs plus treatment and refining costs.
Added
In addition, costs are affected by the price and availability of input commodities, such as fuel, electricity, labor, chemical reagents, explosives, steel, concrete, and mining and processing related equipment and facilities. Commodity costs are often subject to volatile price movements, including increases that could make mineral extraction less profitable.
Removed
Total cash cost after co-product credits includes total cash cost before co-product credits, less co-product credits (revenues earned from base metals). AISC includes total cash cost after co-product credits plus other costs related to sustaining production, including sustaining allocated general and administrative expenses and sustaining capital expenditures.
Added
Further, changes in laws and regulations can affect commodity prices, uses, and transport. Reported costs may also be affected by changes in accounting standards. Increases in costs have materially adversely impacted the Company’s results of operations and operating cash flow and could continue to do so.
Removed
We determined sustaining capital expenditures as those capital expenditures that are necessary to maintain current production and execute the current mine plan.
Added
The Company could have significant increases in capital and operating costs over the next several years in connection with developing new projects in challenging jurisdictions and sustaining and/or expanding existing mining and processing operations. Costs associated with capital expenditures may increase in the future as a result of factors beyond the Company’s control, such as inflation.
Removed
Cash cost before co-product credits per ounce, total cash cost after co-product credits per ounce, and AISC are calculated by dividing the relevant costs, as determined using the cost elements noted above, by precious metal gold equivalent ounces sold for the periods presented. ​ Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 54 ​ ​ Table of Contents ​ ​ Reconciliations to U.S.
Added
Increased capital expenditures may have an adverse effect on the results of operations and cash flow generated from existing operations, as well as the economic returns anticipated from new projects, or may make the development of future projects uneconomic. Competition in the mining industry is intense, and the Company has limited financial and personnel resources with which to compete.
Removed
GAAP The table below present reconciliations between the most comparable GAAP measure of Total cost of sales to the non-GAAP measures of C ash cost after co-product credits , All-in sustaining cost after co-product credits for DDGM and for the Company, and All-in Cost after co-product credits for the years ended December 31, 2023 and 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ Note ​ For the year ended December 31, ​ ​ ​ 2023 ​ 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total cost of sales (1) ​ ​ $ 103,043 ​ $ 108,976 Less: Depreciation and amortization (1) ​ ​ ​ (26,126) ​ ​ (27,226) Less: Reclamation and remediation (1) ​ ​ ​ (774) ​ ​ (801) Refining charges for Doré sales 2 ​ ​ 52 ​ ​ 59 Treatment and refining charges for Concentrate sales 2 ​ ​ 11,578 ​ ​ 12,013 Co-product credits: ​ ​ ​ ​ ​ ​ ​ Concentrate sales - Copper 2 ​ ​ (10,472) ​ ​ (11,987) Concentrate sales - Lead 2 ​ ​ (9,540) ​ ​ (11,626) Concentrate sales - Zinc 2 ​ ​ (29,225) ​ ​ (50,470) Realized (loss) gain for embedded derivatives - Copper 19 ​ ​ (6) ​ ​ 127 Realized (loss) gain for embedded derivatives - Lead 19 ​ ​ (174) ​ ​ 150 Realized gain for embedded derivatives - Zinc 19 ​ ​ 511 ​ ​ 364 Total cash cost after co-product credits ​ ​ $ 38,867 ​ $ 19,579 Gold equivalent (AuEq) ounces sold (oz) ​ ​ ​ 31,085 ​ ​ 42,757 Total cash cost after co-product credits per AuEq oz sold ​ ​ $ 1,250 ​ $ 458 ​ ​ ​ ​ ​ ​ ​ ​ Total cash cost after co-product credits from above ​ ​ $ 38,867 ​ $ 19,579 Sustaining Investments - Capital: ​ ​ ​ ​ ​ ​ ​ Underground Development (2) ​ ​ ​ 4,386 ​ ​ 6,619 Other Sustaining Capital (2) ​ ​ ​ 1,420 ​ ​ 3,227 Sustaining Investments - Capitalized Exploration: ​ ​ ​ ​ ​ ​ ​ Infill Drilling (2) ​ ​ ​ 4,096 ​ ​ 3,459 Surface and Underground Exploration Development & Other (2) ​ ​ ​ 1,139 ​ ​ 3,034 Reclamation and remediation (1) ​ ​ ​ 774 ​ ​ 801 DDGM all-in sustaining cost after co-product credits ​ ​ $ 50,682 ​ $ 36,719 AuEq ounces sold (oz) ​ ​ ​ 31,085 ​ ​ 42,757 DDGM all-in sustaining cost after co-product credits per AuEq oz sold ​ ​ $ 1,630 ​ $ 859 ​ ​ ​ ​ ​ ​ ​ ​ DDGM all-in sustaining cost after co-product credits from above ​ ​ $ 50,682 ​ $ 36,719 Corporate Sustaining Expenses: ​ ​ ​ ​ ​ ​ ​ General and administrative expenses (1) ​ ​ ​ 6,583 ​ ​ 8,048 Stock-based compensation (1) ​ ​ ​ 681 ​ ​ 1,955 Consolidated all-in sustaining cost after co-product credits ​ ​ $ 57,946 ​ $ 46,722 AuEq ounces sold (oz) ​ ​ ​ 31,085 ​ ​ 42,757 Total consolidated all-in sustaining cost after co-product credits per AuEq oz sold ​ ​ $ 1,864 ​ $ 1,093 ​ ​ ​ ​ ​ ​ ​ ​ Consolidated all-in sustaining cost after co-product credits from above ​ ​ $ 57,946 ​ $ 46,722 Growth Investments - Capital: ​ ​ ​ ​ ​ ​ ​ Gold Regrind (2) ​ ​ ​ - ​ ​ 745 Dry Stack Completion (2) ​ ​ ​ - ​ ​ 1,149 Growth Investments - Capitalized Exploration: ​ ​ ​ ​ ​ ​ ​ Underground Exploration Development (2) ​ ​ ​ 357 ​ ​ - Growth Investments - Exploration: ​ ​ ​ ​ ​ ​ ​ Mexico exploration expenses (1) ​ ​ ​ 4,167 ​ ​ 4,244 Michigan Back Forty Project expenses (1) ​ ​ ​ 1,642 ​ ​ 8,805 Total all-in cost after co-product credits ​ ​ $ 64,112 ​ $ 61,665 AuEq ounces sold (oz) ​ ​ ​ 31,085 ​ ​ 42,757 Total all-in cost after co-product credits per AuEq oz sold ​ ​ $ 2,062 ​ $ 1,442 ​ (1) Refer to Item 8—Financial Statements and Supplementary Data: Consolidated Statements of Operations.
Added
In the mining industry, competition for desirable properties, investment capital, and human capital is intense. Numerous companies headquartered in the United States, Canada, and worldwide compete for properties and human capital on a global basis. The Company is a small participant in the mining industry due to its limited financial and human capital resources.
Removed
(2) Refer to Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—2023 Capital and Exploration Investment Summary and the 2022 Annual Report Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—2022 Capital and Exploration Investment Summary .
Added
The Company presently operates with a limited number of people, and it anticipates operating in the same manner going forward. The Company competes with other companies in its industry to hire qualified employees and consultants when needed to operate its mines successfully and to advance its exploration properties.
Removed
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 55 ​ ​ Table of Contents ​ ​ Trending Highlights ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2023 ​ Q1 Q2 Q3 Q4 ​ Q1 Q2 Q3 Q4 Operating Data ​ ​ ​ ​ ​ ​ ​ ​ ​ Total tonnes milled 136,844 129,099 110,682 116,616 ​ 117,781 113,510 116,626 111,255 Average Grade ​ ​ ​ ​ ​ - ​ ​ ​ Gold (g/t) 3.00 2.63 1.98 2.51 ​ 2.33 1.59 1.52 1.44 Silver (g/t) 81 64 80 109 ​ 94 86 73 85 Copper (%) 0.41 0.32 0.37 0.45 ​ 0.37 0.37 0.32 0.39 Lead (%) 1.97 1.99 1.59 1.58 ​ 1.73 1.64 1.29 1.39 Zinc (%) 4.89 4.00 4.21 4.27 ​ 3.88 3.72 3.24 2.95 Metal production (before payable metal deductions) ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold (ozs.) 11,187 9,317 5,851 7,767 ​ 7,171 4,637 4,443 4,077 Silver (ozs.) 332,292 249,088 261,256 370,768 ​ 322,676 289,816 247,159 282,488 Copper (tonnes) 431 303 296 406 ​ 336 334 276 341 Lead (tonnes) 2,073 2,020 1,249 1,323 ​ 1,559 1,389 1,048 1,072 Zinc (tonnes) 5,562 4,282 3,901 4,198 ​ 3,837 3,569 3,223 2,884 Metal produced and sold ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold (ozs.) 8,381 8,746 5,478 7,514 ​ 6,508 4,287 3,982 3,757 Silver (ozs.) 265,407 231,622 225,012 335,168 ​ 294,815 274,257 208,905 258,252 Copper (tonnes) 408 286 282 372 ​ 332 327 245 327 Lead (tonnes) 1,639 1,755 1,056 941 ​ 1,417 1,317 947 820 Zinc (tonnes) 4,359 3,590 2,943 3,265 ​ 3,060 3,141 2,571 2,182 Average metal prices realized ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold ($ per oz.) $ 1,898 $ 1,874 $ 1,627 $ 1,734 ​ $ 1,915 $ 2,010 $ 1,934 $ 1,985 Silver ($ per oz.) $ 23.94 $ 22.05 $ 18.54 $ 21.25 ​ $ 23.04 $ 24.93 $ 23.61 $ 23.14 Copper ($ per tonne) $ 10,144 $ 9,275 $ 7,115 $ 8,221 ​ $ 9,172 $ 8,397 $ 8,185 $ 8,205 Lead ($ per tonne) $ 2,347 $ 2,168 $ 1,882 $ 1,954 ​ $ 2,158 $ 2,153 $ 2,196 $ 2,122 Zinc ($ per tonne) $ 3,842 $ 4,338 $ 3,186 $ 2,577 ​ $ 3,195 $ 2,485 $ 2,195 $ 2,516 Gold equivalent ounces sold ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Ounces 8,381 8,746 5,478 7,514 ​ 6,508 4,287 3,982 3,757 Gold Equivalent Ounces from Silver 3,348 2,729 2,564 4,107 ​ 3,547 3,402 2,550 3,011 Total AuEq oz 11,729 11,475 8,042 11,621 ​ 10,055 7,689 6,532 6,768 Financial Data ​ ​ ​ ​ ​ ​ ​ ​ ​ Total sales, net (in thousands) $ 45,417 $ 37,064 $ 23,869 $ 32,374 ​ $ 31,228 $ 24,807 $ 20,552 $ 21,141 Production Costs (in thousands) $ 20,074 $ 21,722 $ 19,380 $ 19,773 ​ $ 19,850 $ 20,302 $ 18,957 $ 17,034 Production Costs/Tonnes Milled $ 147 $ 168 $ 175 $ 170 ​ $ 169 $ 179 $ 163 $ 153 Operating Cash Flows (in thousands) $ 4,230 $ 7,976 ($ 4,292) $ 6,243 ​ $ 1,024 ($ 551) ($ 7,475) $ 1,783 Net income (loss) (in thousands) $ 4,019 $ 2,673 ($ 9,730) ($ 3,283) ​ ($ 1,035) ($ 4,584) ($ 7,341) ($ 3,057) Earnings (loss) per share - basic $ 0.05 $ 0.03 ($ 0.11) ($ 0.04) ​ ($ 0.01) ($ 0.05) ($ 0.08) ($ 0.03) ​ ​ Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 56 ​ ​ Table of Contents ​ ​ Liquidity and Capital Resources As of December 31, 2023, our working capital was $15.2 million, a decrease of $6.2 million from $21.4 million at December 31, 2022 .
Added
The Company may Gold Resource Corporation 15 ​ ​ ​ Table of Contents ​ be unable to attract the necessary human capital to fully explore, and if warranted, develop its properties and be unable to acquire other desirable properties.
Removed
Our working capital balance at December 31, 2023 reflects a decrease in cash, partially offset by a decrease in current liabilities related to income tax payable, accounts payable, and the contingent consideration.
Added
The Company believes that competition for acquiring mineral properties, as well as the competition to attract and retain qualified human capital, will continue to be intense in the future.
Removed
The decrease of $17.4 million of cash and cash equivalents from December 31, 2022 is attributable to a cash outflow of $12.5 million for capital investments, as well as a cash outflow of $5.2 million from operating activities for 2023 that includes $7.8 million of income tax payments for the tax years 2022 and 2023, exploration investment of $4.2 million in DDGM, and $1.6 million of spending on the Back Forty Project optimization work.
Added
Estimates of Proven and Probable Mineral Reserves and Measured and Indicated Mineral Resources include some uncertainty, such that the volume and grade of ore actually recovered may vary from the Company’s estimates.
Removed
The cash outflow from operating activities is partially the result of higher energy prices due to inflation and the strengthening of the Mexican Peso. Our working capital balance fluctuates as we use cash to fund our operations, financing, and investing activities, including exploration and mine development.
Added
The proven and probable Mineral Reserves stated in this report represent the amount of gold, silver, copper, lead, and zinc that the Company estimated at December 31, 2024, that could be economically and legally extracted or produced at the time of the reserve determination.
Removed
We believe that as a result of our cash balances, the performance of our current and expected operations, and current metals prices, we will be able to meet our obligations and other potential cash requirements during the next 12 months from the date of this report.
Added
Estimates of proven and probable Mineral Reserves and measured and indicated Mineral Resources are subject to considerable uncertainty. Such estimates are largely based on the prices of gold, silver, copper, lead, and zinc, as well as interpretations of geologic data obtained from drill holes and other exploration techniques. These prices and interpretations are subject to change.
Removed
The actual amount of cash receipts that we receive during the period from operations may vary significantly from the planned amounts due to, among other things: (i) unanticipated variations in grade, (ii) unexpected challenges associated with our proposed mining plan, (iii) decreases in commodity prices below those used in calculating the estimates shown above, (iv) variations in expected recoveries, or (v) interruptions in mining at DDGM.
Added
If the Company determines that certain estimated Mineral Reserves or Mineral Resources have become uneconomic, it may be forced to reduce its estimates. Actual production from proven and probable Mineral Reserves may be significantly less than the Company expects. There can be no assurance that estimates of Mineral Resources will be upgraded to Mineral Reserves or may ultimately be extracted.
Removed
The actual amount of cash expenditures that we incur during the twelve-month period ending December 31, 2024 may vary significantly from the planned amounts and will depend on a number of factors, including, among other things: (i) unexpected challenges in operations, including exploration and development, (ii) increases in operating costs above those used in calculating the estimates shown above, (iii) possible strategic transactions, and (iv) continued inflationary pressure.
Added
Any material changes in Mineral Resources and Mineral Reserves estimates and grades of mineralization may affect the economic viability of the Company’s current operations, a decision to place a new property into production, and/or such property’s return on capital.
Removed
Likewise, if cash expenditures are greater than anticipated or if cash receipts are less than anticipated, we may need to take certain actions to adjust our spending over the next twelve months. Although it is not likely, given the current share price, we may also utilize the At-The-Market Offering Agreement (“ATM”) program, if necessary. Please see Item 8.
Added
There can be no assurance that mineral recoveries in small-scale laboratory tests will be duplicated in a large-scale on-site operation in a production environment.
Removed
Financial Statements and Supplementary Data—Note 12. Shareholders’ Equity in for additional information about the ATM. Long-term liabilities assumed with the Aquila acquisition, capital requirements to develop the Back Forty Project, and potential project financing may have an impact on liquidity in the long term.
Added
Declines in market prices for contained metals may render portions of the Company’s Mineral Resources and Mineral Reserves estimates uneconomic and result in reduced reported mineralization or materially adversely affect the commercial viability of one or more of the Company’s properties.
Removed
These long-term liabilities are contingent upon the Back Forty Project securing project financing and achieving commercial production. Project financing requirements will not be determined until the Company Board of Directors approves a decision to proceed on the Project. The Board continues to evaluate options that could lead to the development of the Project.
Added
Any material reductions in estimates of mineralization, or of the Company’s ability to extract this mineralization, could have a material adverse effect on its results of operations or financial condition. Products processed from the Company’s operating mines or other mines in the future could contain higher than expected contaminants, thereby negatively impacting the Company’s financial condition.
Removed
Cash and cash equivalents as of December 31, 2023 decreased to $6.3 million from $23.7 million as of December 31, 2022, a net decrease in cash of $17.4 million.
Added
Contracts for treatment charges paid to smelters and refineries include penalties for certain deleterious elements that exceed contract limits. If the material mined from the Company’s operating mines includes higher than expected contaminants, the Company would incur higher treatment expenses and penalty charges that could increase costs and negatively impact the business, financial condition, and results of operations.
Removed
The decrease is primarily due to the $5.2 million cash outflows from operations and the $12.5 million cash spent on investing activities for capital investments, offset by $0.2 million increase in value due to the strengthening of the peso.
Added
This could occur due to unexpected variations in the occurrence of these elements in the material mined, problems occurring during blending of material from various locations in the mine prior to processing, and other unanticipated events. Continuation of the Company’s mining and processing activities is dependent on the availability of sufficient water supplies to support its mining activities.
Removed
Net cash used in operating activities for the years ended December 31, 2023 was $5.2 million, compared to net cash provided by operating activities of $14.2 million in 2022. The decrease is mainly attributable to reduced net sales resulting from lower mined and processed tonnages, lower grades realized on said tonnages, and lower realized metal prices for copper and zinc.
Added
Water is critical to the Company’s business, and the increasing pressure on water resources requires the Company to consider both current and future conditions in its management approach. Across the globe, water is a shared and regulated resource. Mining operations require significant quantities of water for mining, ore processing, and related support facilities.
Removed
Other attributable impacts to production costs included higher inflation and a stronger average Mexican Peso in 2023 as compared to 2022 that resulted in increased costs offset by lower mining and processing related costs resulting from lower tonnage.
Added
Many of the Company’s properties in Mexico are in areas where water is scarce, and competition among users for continuing access to water is significant. Continuous production and mine development depend on the Company’s ability to acquire and maintain water rights and defeat claims adverse to current water use in legal proceedings.
Removed
Net cash used in investing activities for the year ended December 31, 2023 was $12.5 million compared to $19.4 million during the same period in 2022.
Added
Although the Company believes that its operations currently have sufficient water rights and claims to cover operating demands, it cannot predict the potential outcome of future legal proceedings relating to water rights, claims, and uses. Water shortages may also result from weather or environmental and climate impacts beyond the Company’s control.
Removed
The decrease in investing activities is primarily attributable to non-recurring capital projects undertaken in 2022 (including efforts to improve stabilization and ventilation of the Don David mine and the completion of the filtration plant) and in addition, the lower Back Forty expenses related to the optimization work in 2023, as compared to 2022.
Added
Shortages in water supply could result in production and processing interruptions. In addition, the scarcity of water in certain regions could result in increased costs to obtain sufficient quantities of water to conduct the Company’s operations.
Removed
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 57 ​ ​ Table of Contents ​ ​ Net cash used in financing activities for the year ended December 31, 2023 was a net outflow of $0.1 million compared to a net outflow of $3.9 million in 2022.
Added
The loss of some or all water rights, in whole or in part, ongoing shortages of water to which the Company has rights, or significantly higher costs to obtain sufficient quantities of water (or the failure to procure sufficient quantities of water) could result in the Company’s inability to maintain mineral extraction at current or expected levels, require the Company to curtail or shut Gold Resource Corporation 16 ​ ​ ​ Table of Contents ​ down mining operations, and prevent it from pursuing expansion or any development opportunities.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

16 edited+275 added−2 removed0 unchanged
Biggest changeGold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 62 ​ ​ Table of Contents ​ ​ Provisional Sales Contract Risk We enter into concentrate sales contracts which, in general, provide for a provisional payment to us based upon provisional assays and prices.
Biggest changeProvisional Sales Contract Risk The Company enters into concentrate sales contracts which, in general, provide for a provisional payment to it based upon provisional assays and prices. The provisionally priced sales contracts contain an embedded derivative that is required to be separated from the host contract for accounting purposes.
ITEM 7A. QUANTITATIVE AND QUALITATIV E DISCLOSURES ABOUT MARKET RISK Our exposure to market risks includes, but is not limited to, the following risks: changes in commodity prices, foreign currency exchange rates, provisional sales contract risks, changes in interest rates, and equity price risks.
ITEM 7A. QUANTITATIVE AND QUALITATIV E DISCLOSURES ABOUT MARKET RISK The Company’s exposure to market risks includes, but is not limited to, the following risks: changes in commodity prices, foreign currency exchange rates, provisional sales contract risks, changes in interest rates, and equity price risks.
In addition to materially adversely affecting our reserve estimates, results of operations, and our financial condition, declining gold and silver prices could require a reassessment of the feasibility of a project. Even if a project is ultimately determined to be economically viable, the need to conduct such a reassessment may cause delays in the implementation of a project.
In addition to materially adversely affecting the Company’s reserve estimates, results of operations and/or its financial condition, declining gold and silver prices could require a reassessment of the feasibility of a project. Even if a project is ultimately determined to be economically viable, the need to conduct such a reassessment may cause delays in the implementation of a project.
When the value of the peso rises in relation to the U.S. Dollar, some of our costs in Mexico may increase, thus affecting our operating results. Alternatively, when the value of the peso drops in relation to the U.S. Dollar, peso-denominated costs in Mexico will decrease in U.S. Dollar terms.
When the value of the peso rises in relation to the U.S. dollar, some of the Company’s costs in Mexico may increase, thus materially adversely affecting the Company’s operating results. Alternatively, when the value of the peso drops in relation to the U.S. dollar, peso-denominated costs in Mexico will decrease in U.S. dollar terms.
As a result, there is a risk that we may not be able to sell our common stock at an acceptable price should the need for new equity funding arise. ​ Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 63 ​ ​ Table of Contents ​ ​ ​
As a result, there is a risk that the Company may not be able to sell its common stock at an acceptable price should the need for new equity funding arise. ​ Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 65 ​ ​ Table of Contents ​ ​ ITEM 8.
Such external economic factors are in turn influenced by changes in international investment patterns, monetary systems, and political developments. The price of gold and silver has fluctuated widely in recent years, and future price declines could cause a mineral project to become uneconomic, thereby having a material adverse effect on our business and financial condition.
Such external economic factors are, in turn, influenced by changes in international investment patterns, monetary systems, and political developments. The metal price markets have fluctuated widely in recent years, and future price declines could cause a mineral project to become uneconomic, thereby having a material adverse effect on the Company’s business and financial condition.
The level of interest rates, the rate of inflation, the state of the global or national economies, the stability of exchange rates, the world supply of and demand for gold, silver, and other metals, among other factors, can all cause significant fluctuations in commodity prices.
The level of interest rates, the rate of inflation, government fiscal and monetary policy, the stability of exchange rates, and the world supply of and demand for gold, silver, and other metals, among other factors, can all cause significant fluctuations in commodity prices.
We do not use derivative financial instruments as part of an overall strategy to manage market risk; however, we may consider such arrangements in the future as we evaluate our business and financial strategy.
Currently, the Company does not use derivative financial instruments as part of an overall strategy to manage market risk. However, the Company may consider such arrangements in the future as it evaluates its business and financial strategy.
Commodity Price Risk The results of our operations depend in large part upon the market prices of gold, silver, and base metal prices of copper, lead, and zinc. Gold and silver prices fluctuate widely and are affected by numerous factors beyond our control.
Commodity Price Risk The results of the Company’s operations, cash flows, and financial condition largely depend upon the market prices of gold, silver, copper, lead, and zinc. Metal prices fluctuate widely and are affected by numerous factors beyond the Company’s control.
We have not utilized market-risk sensitive instruments to manage our exposure to foreign currency exchange rates but may in the future actively manage our exposure to foreign currency exchange rate risk.
The Company has not utilized market-risk sensitive instruments to manage its exposure to foreign currency exchange rates. However, the Company may, in the future, actively manage its exposure to foreign currency exchange rate risk.
Foreign Currency Risk Foreign currency exchange rate fluctuations can increase or decrease our costs to the extent that we pay costs in currencies other than the U.S. dollar. We are primarily impacted by Mexican peso rate changes relative to the U.S. Dollar, as we incur approximately 55-60% of costs in peso in Mexico.
Foreign currency exchange rate fluctuations can increase or decrease the Company’s costs to the extent that it pays costs in currencies other than the U.S. dollar. The Company is primarily impacted by Mexican peso rate changes relative to the U.S. dollar, as the Company incurs some costs in the Mexican peso.
Financial Statements and Supplementary Data—Note 13. Derivatives for additional information. Interest Rate Risk None. Equity Price Risk We have in the past, and may in the future, seek to acquire additional funding by sale of common stock and other equity. The price of our common stock has been volatile in the past and may also be volatile in the future.
Equity Price Risk The Company has, in the past, and may in the future, seek to acquire additional funding by sale of common stock and other equity. The price of the Company’s common stock has been volatile in the past and may also be volatile in the future.
The provisionally priced sales contracts contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of concentrates determined at the quoted metal prices at the time of shipment.
The host contract is the receivable from the sale of concentrates determined at the quoted metal prices at the time of shipment. The embedded derivative, which does not qualify for hedge accounting, is adjusted to market through revenue each period prior to settlement.
The embedded derivative, which does not qualify for hedge accounting, is adjusted to market through revenue each period prior to settlement. Changes in the prices of metals between the shipment and the final settlement date will result in adjustments to revenues related to the sales of concentrate previously recorded upon shipment. Please see Item 8.
Changes in the prices Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 64 ​ ​ Table of Contents ​ of metals between the shipment and the final settlement date will result in adjustments to revenues related to the sales of concentrate previously recorded upon shipment. Please see Item 8. Financial Statements—Note 16.
These fluctuations do not impact our revenues since we sell our metals in U.S. dollars. Future fluctuations may give rise to foreign currency exposure, which may affect our financial results. As of December 31, 2023, we held 0.9 million Mexican Pesos ($0.1 million) and 0.2 million Canadian Dollars ($0.1 million).
Future fluctuations may give rise to foreign currency exposure, which may affect the Company’s financial results. Approximately 50% to 60% of expenses are paid in currencies other than the U.S. dollar. As of December 31, 2024, the Company held approximately 0.8 million Mexican pesos (or $40,000) and approximately 300 Canadian dollars (“C$”) (or $200).
We have not entered into derivative contracts to protect the selling price for gold or silver. We may in the future more actively manage our exposure through derivative contracts or other commodity price risk management programs.
Currently, the Company is not utilizing derivative contracts to protect the selling price for gold, silver, copper, lead, or zinc. The Company may, in the future, more actively manage its exposure through additional derivative contracts, although the Company has no intention of doing so in the near term.
Removed
Effective May 18, 2021, the Company entered into a Trading Agreement with Auramet International LLC that govern non-exchange traded, over-the-counter, spot, forward, and option transactions on both a deliverable and non-deliverable basis involving various metals and currencies. Subsequently, the Company entered into zinc zero cost collars. These derivatives are not designated as hedges.
Added
Foreign Currency Risk The Company’s foreign operation sells its gold, silver, copper, lead, and zinc production based on U.S. dollar metal prices. Fluctuations in foreign currency exchange rates do not have a material impact on the Company’s revenue since gold, silver, copper, lead, and zinc are sold worldwide in U.S. dollars.
Removed
The zero cost collars were used to manage the Company’s near-term exposure to cash flow variability from zinc price risks; however, the current zinc program concluded on December 21, 2022. We do not currently use financial instruments with respect to any of the other base metal production either.
Added
Derivatives for additional information. Interest Rate Risk The Company considers its interest rate risk exposure to be insignificant at this time, as the Company’s interest rate is related and embedded in immaterial payments for office leases.
Added
FINANCIAL STATEMENTS ​ ​ ​ ​ ​ Page Index to Financial Statements: ​ ​ ​ Report of Independent Registered Public Accounting Firm (BDO USA, P.C.; Spokane, Washington; PCAOB ID#243) ​ 67 ​ Consolidated Balance Sheets at December 31, 2024 and 2023 ​ 70 ​ Consolidated Statements of Operations for the years ended December 31, 2024 and 2023 ​ 71 ​ Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, 2024 and 2023 ​ 72 ​ Consolidated Statements of Cash Flows for the years ended December 31, 2024 and 2023 ​ 73 ​ Notes to Consolidated Financial Statements ​ 74 ​ ​ Gold Resource Corporation—Audited Consolidated Financial Statements and Notes 66 ​ ​ Table of Contents ​ Report of Independent Registered Public Accounting Firm Shareholders and Board of Directors Gold Resource Corporation Denver, Colorado Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Gold Resource Corporation (the “Company”) as of December 31, 2024 and 2023, the related consolidated statements of operations, changes in shareholders’ equity, and cash flows for each of the years then ended, and the related notes (collectively referred to as the “consolidated financial statements”).
Added
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended , in conformity with accounting principles generally accepted in the United States of America.
Added
Restatement to Correct 2023 Misstatements As discussed in Note 2 to the consolidated financial statements, the 2023 financial statements have been restated to correct misstatements. Going Concern Uncertainty The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern.
Added
As discussed in Note 4 to the consolidated financial statements, the Company has suffered recurring losses from operations and lacks adequate liquidity that raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 4.
Added
The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits.
Added
We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
Added
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
Added
The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.
Added
Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.
Added
Our audits also included evaluating Gold Resource Corporation—Audited Consolidated Financial Statements and Notes 67 ​ ​ Table of Contents ​ the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Added
Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.
Added
The communication of the critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Added
Accounting for Gold and Silver Stream Agreements Liability As described in Notes 1, 2 and 12 of the Company’s consolidated financial statements, the Company’s gold and silver stream agreements liability (“streaming liabilities”) were $74.4 million and $61.2 million as of December 31, 2024 and December 31, 2023, respectively.
Added
As discussed in the “Restatement to Correct 2023 Misstatements” section of our report, management identified that the streaming liabilities were incorrectly presented in the 2023 consolidated financial statements due to errors in the application of accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Added
It was determined that the streaming liabilities should be accounted for under ASC 606, Revenue from Contracts with Customers , and that a significant financing component is present that should be accreted using the effective interest method.
Added
Periodic interest expense is based on a fixed market rate of interest, which is reviewed quarterly if there are any contractual amendments to the streaming agreements.
Added
We identified the accounting for streaming liabilities as a critical audit matter due to the evaluation of whether the liabilities fell within the scope of ASC 470, Debt , or ASC 606, Revenue from Contracts with Customers . Specifically, the determination of the appropriate accounting treatment under U.S.
Added
GAAP required management to use significant judgment in evaluating the contracts and provisions within the contracts, and the determination of the fixed market rate of interest used to accrete the streaming liabilities is subjective.
Added
Auditing these elements involved especially complex auditor judgment due to the terms of the applicable agreements and the audit effort required to address these matters, including the extent of specialized skills and knowledge needed.
Added
The primary procedures we performed to address this critical audit matter included: ● Obtaining all contracts related to the streaming liabilities to identify all terms impacting the accounting of these liabilities. ● Utilizing personnel with expertise in relevant technical accounting guidance to assist in evaluating the appropriateness of the Company’s application of U.S.
Added
GAAP. ● Utilizing personnel with specialized skills and knowledge in valuation to assist in evaluating the appropriateness of management’s determination of the fixed market rate of interest applied to the streaming liabilities. ​ Gold Resource Corporation—Audited Consolidated Financial Statements and Notes 68 ​ ​ Table of Contents ​ Property, Plant and Mine Development, net - Assessment of Whether Indicators of Impairment Exist As described in Notes 1 and 9 of the Company’s consolidated financial statements, the Company’s property, plant and mine development, net, balance was $128.4 million as of December 31, 2024.
Added
The Company evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable, such as changes in future metals prices and production levels and costs.
Added
We identified the assessment of whether indicators of impairment exist for property, plant and mine development assets as a critical audit matter due to the significant judgment and assumptions used by management in this process. Auditing these assumptions involved especially challenging auditor judgment due to the nature and extent of audit evidence and effort required to address this matter.
Added
The primary procedures we performed to address this critical audit matter included: ● Evaluating the future metals prices for silver, gold and copper by comparing management’s forecasts to published industry data. ● Evaluating whether there were any significant changes in the extent or manner in which the assets are being utilized by assessing any significant decreases in production or changes in costs by considering the technical reports and production results compared to historical actual results. ​ /s/ BDO USA, P.C.
Added
We have served as the Company's auditor since 2022.
Added
Spokane, Washington April 8, 2025 ​ ​ ​ Gold Resource Corporation—Audited Consolidated Financial Statements and Notes 69 ​ ​ Table of Contents ​ ​ GOLD RESOURCE CORPORATION CONSOLIDATED BALANCE SHEET S (U.S. dollars in thousands, except share and per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of ​ As of ​ ​ December 31, ​ December 31, ​ Note 2024 ​ 2023 ​ ​ ​ ​ Restated ASSETS ​ ​ ​ ​ ​ ​ Current assets: ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 1,628 ​ $ 6,254 Accounts receivable, net ​ ​ 2,184 ​ ​ 4,335 Inventories, net 6 ​ 6,940 ​ ​ 9,294 Prepaid expenses and other current assets 8 ​ 5,828 ​ ​ 6,612 Total current assets ​ ​ 16,580 ​ ​ 26,495 Property, plant, and mine development, net 9 ​ 128,389 ​ ​ 138,748 Deferred tax assets, net 7 ​ - ​ ​ 13,267 Other non-current assets 10 ​ 905 ​ ​ 5,464 Total assets ​ $ 145,874 ​ $ 183,974 LIABILITIES AND SHAREHOLDERS’ EQUITY ​ ​ ​ ​ ​ ​ Current liabilities: ​ ​ ​ ​ ​ ​ Accounts payable ​ $ 11,258 ​ $ 7,614 Mining royalty taxes payable, net ​ ​ 195 ​ ​ 1,199 Accrued expenses and other current liabilities 11 ​ 3,031 ​ ​ 2,512 Total current liabilities ​ ​ 14,484 ​ ​ 11,325 Reclamation and remediation liabilities 13 ​ 10,669 ​ ​ 11,795 Gold and silver stream agreements liability 12 ​ 74,432 ​ ​ 61,187 Deferred tax liabilities, net 7 ​ 14,041 ​ ​ 14,319 Contingent consideration 14 ​ 3,389 ​ ​ 3,404 Other non-current liabilities 11 ​ 1,576 ​ ​ 1,516 Total liabilities ​ ​ 118,591 ​ ​ 103,546 ​ ​ ​ ​ ​ ​ ​ Commitments and contingencies 14 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shareholders’ equity: ​ ​ ​ ​ ​ ​ Common stock - $0.001 par value, 200,000,000 shares authorized: ​ ​ ​ ​ ​ ​ 95,324,949 and 88,694,038 shares outstanding at December 31, 2024 and December 31, 2023, respectively ​ ​ 96 ​ ​ 89 Additional paid-in capital ​ ​ 115,319 ​ ​ 111,970 Accumulated deficit ​ ​ (81,077) ​ ​ (24,576) Treasury stock at cost, 336,398 shares ​ ​ (5,884) ​ ​ (5,884) Accumulated other comprehensive loss ​ ​ (1,171) ​ ​ (1,171) Total shareholders’ equity ​ ​ 27,283 ​ ​ 80,428 Total liabilities and shareholders’ equity ​ $ 145,874 ​ $ 183,974 ​ ​ ​ The accompanying notes are an integral part of these consolidated financial statements. ​ Gold Resource Corporation—Audited Consolidated Financial Statements and Notes 70 ​ ​ Table of Contents ​ GOLD RESOURCE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS for the years ended December 31, 2024 and 2023 (U.S. dollars in thousands, except share and per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended ​ ​ ​ December 31, ​ Note ​ 2024 ​ 2023 ​ ​ ​ ​ ​ ​ Restated ​ ​ ​ ​ ​ ​ ​ ​ Sales, net 5 ​ $ 65,726 ​ $ 97,728 Cost of sales: ​ ​ ​ ​ ​ ​ ​ Production costs ​ ​ ​ 65,552 ​ ​ 76,143 Depreciation and amortization ​ ​ ​ 18,120 ​ ​ 26,126 Reclamation and remediation ​ ​ ​ 2,545 ​ ​ 683 Total cost of sales ​ ​ ​ 86,217 ​ ​ 102,952 Mine gross loss ​ ​ ​ (20,491) ​ ​ (5,224) Costs and expenses: ​ ​ ​ ​ ​ ​ ​ General and administrative expenses ​ ​ ​ 4,283 ​ ​ 6,583 Mexico exploration expenses ​ ​ ​ 1,959 ​ ​ 4,167 Michigan Back Forty Project expenses ​ ​ ​ 378 ​ ​ 1,642 Stock-based compensation 18 ​ ​ 677 ​ ​ 681 Other expense, net 19 ​ ​ 19,452 ​ ​ 11,729 Total costs and expenses ​ ​ ​ 26,749 ​ ​ 24,802 Loss before income taxes 7 ​ ​ (47,240) ​ ​ (30,026) Income tax provision (benefit) 7 ​ ​ 9,261 ​ ​ (5,882) Net loss ​ ​ $ (56,501) ​ $ (24,144) Net loss per common share: ​ ​ ​ ​ ​ ​ ​ Basic and diluted net loss per common share 20 ​ $ (0.61) ​ $ (0.27) ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding: ​ ​ ​ ​ ​ ​ ​ Basic and diluted 20 ​ ​ 91,949,110 ​ ​ 88,514,243 ​ ​ ​ The accompanying notes are an integral part of these consolidated financial statements. ​ ​ Gold Resource Corporation—Audited Consolidated Financial Statements and Notes 71 ​ ​ Table of Contents ​ GOLD RESOURCE CORPORATION CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUIT Y for the years ended December 31, 2024 and 2023 (U.S. dollars in thousands, except share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Common Shares ​ Par Value of Common Shares ​ Additional Paid- in Capital ​ Retained Earnings (Accumulated Deficit) ​ Treasury Stock ​ Accumulated Other Comprehensive Loss ​ Total Shareholders' Equity Balance, December 31, 2022 - Restated ​ 88,734,507 ​ $ 89 ​ $ 111,024 ​ $ (432) ​ $ (5,884) ​ $ (1,171) ​ $ 103,626 Stock-based compensation ​ - ​ ​ - ​ ​ 879 ​ ​ - ​ ​ - ​ ​ - ​ ​ 879 Common stock issued for vested restricted stock units ​ 130,238 ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ - Issuance of common stock, net of issuance costs ​ 195,872 ​ ​ - ​ ​ 85 ​ ​ - ​ ​ - ​ ​ - ​ ​ 85 Surrender of common stock for taxes due on vesting ​ (30,181) ​ ​ - ​ ​ (18) ​ ​ - ​ ​ - ​ ​ - ​ ​ (18) Net loss ​ - ​ ​ - ​ ​ - ​ ​ (24,144) ​ ​ - ​ ​ - ​ ​ (24,144) Balance, December 31, 2023 - Restated ​ 89,030,436 ​ $ 89 ​ $ 111,970 ​ $ (24,576) ​ $ (5,884) ​ $ (1,171) ​ $ 80,428 Stock-based compensation ​ - ​ ​ - ​ ​ 647 ​ ​ - ​ ​ - ​ ​ - ​ ​ 647 Common stock issued for vested restricted stock units ​ 196,991 ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ - Issuance of common stock, net of issuance costs ​ 6,510,914 ​ ​ 7 ​ ​ 2,733 ​ ​ - ​ ​ - ​ ​ - ​ ​ 2,740 Surrender of common stock for taxes due on vesting ​ (76,994) ​ ​ - ​ ​ (31) ​ ​ - ​ ​ - ​ ​ - ​ ​ (31) Net loss ​ - ​ ​ - ​ ​ - ​ ​ (56,501) ​ ​ - ​ ​ - ​ ​ (56,501) Balance, December 31, 2024 ​ 95,661,347 ​ $ 96 ​ $ 115,319 ​ $ (81,077) ​ $ (5,884) ​ $ (1,171) ​ $ 27,283 ​ ​ The accompanying notes are an integral part of these consolidated financial statements. ​ Gold Resource Corporation—Audited Consolidated Financial Statements and Notes 72 ​ ​ Table of Contents ​ GOLD RESOURCE CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOW S for the years ended December 31, 2024 and 2023 (U.S. dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended December 31, ​ Note 2024 ​ 2023 ​ ​ ​ ​ ​ Restated Cash flows from operating activities: ​ ​ ​ ​ ​ Net loss ​ $ (56,501) ​ $ (24,144) Adjustments to reconcile net loss to net cash used in operating activities: ​ ​ ​ ​ ​ ​ Deferred income tax expense (benefit) ​ ​ 9,131 ​ ​ (6,835) Depreciation and amortization ​ ​ 19,877 ​ ​ 26,126 Stock-based compensation ​ ​ 677 ​ ​ 681 Interest on streaming liabilities ​ ​ 13,245 ​ ​ 9,974 Other operating adjustments, net 22 ​ 6,245 ​ ​ 591 Changes in operating assets and liabilities: ​ ​ ​ ​ ​ ​ Accounts receivable ​ ​ 2,151 ​ ​ 750 Inventories ​ ​ 1,822 ​ ​ 2,611 Prepaid expenses and other current assets ​ ​ (470) ​ ​ 1,568 Other non-current assets ​ ​ 42 ​ ​ (863) Accounts payable and other accrued liabilities ​ ​ 3,815 ​ ​ (8,723) Cash settled liability awards ​ ​ (67) ​ ​ - Mining royalty and income taxes payable, net ​ ​ (594) ​ ​ (6,955) Net cash used in operating activities ​ ​ (627) ​ ​ (5,219) ​ ​ ​ ​ ​ ​ ​ Cash flows from investing activities: ​ ​ ​ ​ ​ ​ Capital expenditures ​ ​ (7,621) ​ ​ (12,487) Proceeds from the sale of investment in Maritime ​ ​ 1,178 ​ ​ - Net cash used in investing activities ​ ​ (6,443) ​ ​ (12,487) ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities: ​ ​ ​ ​ ​ ​ Proceeds from ATM Program sales, net of issuance costs ​ ​ 2,740 ​ ​ 85 Other financing activities ​ ​ (33) ​ ​ (23) Net cash provided by financing activities ​ ​ 2,707 ​ ​ 62 Effect of exchange rate changes on cash and cash equivalents ​ ​ (263) ​ ​ 223 ​ ​ ​ ​ ​ ​ ​ Net decrease in cash and cash equivalents ​ ​ (4,626) ​ ​ (17,421) Cash and cash equivalents at beginning of period ​ ​ 6,254 ​ ​ 23,675 Cash and cash equivalents at end of period ​ $ 1,628 ​ $ 6,254 ​ ​ ​ ​ ​ ​ ​ Supplemental Cash Flow Information ​ ​ ​ ​ ​ ​ Income and mining taxes paid ​ $ 1,104 ​ $ 7,751 Non-cash investing or financing activities: ​ ​ ​ ​ ​ ​ Value of common shares issued for RSU redemption ​ $ 49 ​ $ 79 Balance of capital expenditures in accounts payable ​ $ 495 ​ $ 214 Balance of equipment financing ​ $ 744 ​ $ - Change in estimate for asset retirement costs ​ $ 512 ​ $ (1,221) ​ The accompanying notes are an integral part of these consolidated financial statements.
Added
Gold Resource Corporation 73 Table of Contents ​ GOLD RESOURCE CORPORATION NOTES TO CONSOLIDATED F INANCIAL STATEMENTS December 31, 2024 and 2023 1. Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Gold Resource Corporation (the “Company”) was organized under the laws of the State of Colorado on August 24, 1998.
Added
The Company is a producer of metal concentrates that contain gold, silver, copper, lead, and zinc in Oaxaca, Mexico. The Company also has 100% interest in the Back Forty Project, an advanced Exploration Stage Property, located in Menominee County, Michigan, USA.
Added
Significant Accounting Policies Basis of Presentation The Consolidated Financial Statements included herein are expressed in United States dollars and conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Added
The Consolidated Financial Statements include the accounts of the Company, its Mexican subsidiary, Don David Gold Mexico S.A. de C.V., and Aquila Resources Inc (“Aquila”) and its subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Segment Reporting The Company has two reporting segments, based on geographic regions.
Added
Oaxaca, Mexico represents the Company’s only operating segment with a production stage property. The Company’s other reporting segment is Michigan, U.S.A., with an advanced exploration stage property. The Company’s business activities that are not considered production stage or advanced exploration stage properties are included in Corporate and Other . Please see Item 8. Financial Statements—Note 23.
Added
Segment Reporting below for additional information. Use of Estimates The preparation of financial statements in conformity with U.S.
Added
GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods.
Added
The more significant areas requiring the use of management estimates and assumptions relate to Mineral Resources and Mineral Reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of-production depreciation calculations; future ore grades, throughput, and recoveries; future metal prices; future capital and operating costs; environmental remediation, reclamation and closure obligations; the Back Forty Project Gold and Silver Stream Agreements with Osisko Bermuda Limited (“Osisko”); contingent consideration liabilities; permitting and other regulatory considerations; asset impairments; the valuation of the Company’s investments in equity securities; future foreign exchange rates, inflation rates, and applicable tax rates; and deferred tax asset valuation and allowances.
Added
Management routinely makes judgments and estimates about the effects of matters that are inherently uncertain and bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances.
Added
Actual results could differ from these estimates. ​ Gold Resource Corporation 74 Table of Contents ​ Cash and Cash Equivalents Cash and cash equivalents consist of all cash balances and highly liquid investments with a remaining maturity of three months or less when purchased.
Added
Cash held in Mexican pesos or Canadian dollars is converted to U.S. dollars at the closing exchange rate at year end.
Added
Accounts Receivable, net Accounts receivable consists of trade receivables, which are recorded net of allowance for credit losses from the sale of doré and metals concentrates, as well as net of an embedded derivative based on mark-to-market adjustments for outstanding provisional invoices based on forward metal prices. Please see Item 8. Financial Statements—Note 16. Derivatives and Item 8.
Added
Financial Statements—Note 21. Fair Value Measurement for additional information related to the embedded derivative. As of both December 31, 2024 and 2023, the allowance for credit losses was nil. Inventories The major inventory categories are set forth below: Stockpile Inventories : Stockpile inventories represent ore that has been mined and is available for further processing.
Added
Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, an estimate of the contained metals (based on assay data), and the estimated metallurgical recovery rates. Costs are allocated to stockpiles based on relative values of material stockpiled and processed using current mining costs incurred, including applicable overhead, depreciation, and amortization relating to mining operations.
Added
Material is removed at each stockpile’s average cost per tonne. Stockpiles are carried at the lower of average cost or net realizable value. Net realizable value represents the estimated future sales price of the product based on current and long-term metals prices, less the estimated costs to complete production and to bring the product to sale.
Added
Concentrate Inventories : Concentrate inventories include metal concentrates located either at the Company’s facilities or in transit to its customer’s port. Inventories consist of copper, lead, and zinc metal concentrates, which also contain gold and silver mineralization. Concentrate inventories are carried at the lower of cost of production or net realizable value based on current metals prices.
Added
Doré Inventory: Doré includes gold and silver doré bars held at the Company’s facility. Doré inventories are carried at the lower of cost of production or net realizable value based on current metals prices. Materials and Supplies Inventories : Materials and supplies inventories consist of chemical reagents, parts, fuels, and other materials and supplies. Cost includes applicable taxes and freight.
Added
Materials and supplies inventory is carried at the lower of average cost or net realizable value. Write-downs of inventory, when needed, are charged to production costs on the Consolidated Statements of Operations . Property, Plant, and Mine Development Land and Mineral Interests : The costs of acquiring land, mineral rights, and mineral interests are considered tangible assets.
Added
Administrative and holding costs to maintain an exploration property are expensed as incurred. If a mineable mineral deposit is discovered, such capitalized costs are amortized when production begins using the units of production (“UOP”) method.
Added
If no mineable mineral deposit is discovered, or such rights are otherwise determined to have diminished value, costs are expensed in the period in which this determination is made.
Added
Gold Resource Corporation 75 Table of Contents ​ Mine Development : This includes the cost of engineering and metallurgical studies; drilling and other related costs to delineate an ore body; and the cost of building access ways, shafts, lateral access, drifts, ramps, and other infrastructure.
Added
Costs incurred before mineralization is classified as Mineral Resources are expensed and classified as exploration expenses. Capitalization of mine development project costs that meet the definition of an asset begins once mineralization is classified as Mineral Resources. Drilling costs incurred during the production phase for operational ore control are recorded as mine development and amortized using UOP.
Added
All other drilling and related costs are expensed as incurred. Mine development costs are amortized using the UOP method based on estimated recoverable ounces in Mineral Reserves. Property and Equipment : All items of property and equipment are carried at cost. Normal maintenance and repairs are expensed as incurred, while expenditures for major maintenance and improvements are capitalized.
Added
Gains or losses on disposition are recognized in other expense, net. Construction in Progress : Expenditures for new facilities or equipment are capitalized and recorded at cost. Once completed and ready for its intended use, the asset is transferred to property and equipment to be depreciated or amortized.
Added
Depreciation and Amortization : Capitalized costs are depreciated or amortized using the straight-line or UOP method at rates sufficient to depreciate such costs over the shorter of estimated productive lives of such assets or the useful life of the individual assets. The estimates for Mineral Reserves are a key component in determining the UOP depreciation rates.
Added
The estimates of Mineral Reserves may change, possibly in the near term, resulting in significant changes to depreciation and amortization rates in future reporting periods.
Added
The following are the estimated economic lives of depreciable assets: ​ ​ ​ ​ ​ ​ Range of Lives ​ Asset retirement costs ​ UOP ​ Furniture, computer and office equipment ​ 3 to 10 years ​ Light vehicles and other mobile equipment ​ 4 years ​ Machinery and equipment ​ UOP to 8 years ​ Mill facilities and related infrastructure ​ UOP ​ Mine development and mineral interests ​ UOP ​ Buildings and infrastructure ​ UOP to 4 years ​ ​ Impairment of Long-Lived Assets The Company evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable.
Added
Asset impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset. If an impairment is indicated, a determination is made whether an impairment has occurred.
Added
Impairment losses are measured either 1) as the excess of carrying value over the total discounted estimated future cash flows, or 2) as the excess of carrying value over the fair value, using the expected fair value technique in the absence of an observable market price. Losses are charged to expense on the Company’s Consolidated Statements of Operations .
Added
In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. Existing Mineral Resources and Mineral Reserves are included when estimating the fair value in determining whether the assets are impaired.
Added
The Company’s estimates of future cash flows are based on numerous assumptions, including expected gold and other commodity prices, production levels and costs, processing recoveries, capital requirements, and estimated salvage values.
Added
It is possible that actual future cash flows will be significantly different from the estimates, as actual future quantities of recoverable minerals, gold and other commodity prices, production levels and costs, and capital requirements are each subject to significant risks and uncertainties.
Added
Gold Resource Corporation 76 Table of Contents ​ Fair Value of Financial Instruments The recorded amounts of cash and cash equivalents, receivables from provisional concentrate sales, and accounts payable approximate fair value because of the short maturity of those instruments.
Added
The recorded amount for the equity investment in the common shares of Maritime Resources Corp. at the end of 2023 is based on the closing share price of MAE.V on TSX-V. These investments were sold in 2024.The Company elected the fair value measurement option as the measurement basis for the equity investment in the common shares of Green Light Metals.

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