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What changed in GOLD RESOURCE CORP's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of GOLD RESOURCE CORP's 2024 and 2025 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 2025 report.

+366 added−626 removedSource: 10-K (2026-03-18) vs 10-K (2025-04-08)

Top changes in GOLD RESOURCE CORP's 2025 10-K

366 paragraphs added · 626 removed · 221 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

12 edited+1 added−2 removed37 unchanged
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.
Biggest changeThe 2028 consensus was used for the remaining life of mine. The 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.
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.
Productive lives of the assets range from 1 to 15 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.
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 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, 2025, the Company has no liability. Please also see Item 8 . Financial Statements—Note 6.
Income Taxes . Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 63 ​ ​ Table of Contents ​
Income Taxes . ​ Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 64 ​ ​ Table of Contents ​
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.
In October 2023, the Company received a notification from the Mexican Tax Administration Services (“SAT”) with a sanction of 331 million pesos (approximately $18.4 million) as the result of a 2015 tax audit that began in 2021.
Investment demand for gold and silver can be influenced by several factors, including: the value of the U.S. dollar and other currencies, changing U.S. budget deficits, widening availability of exchange-traded funds, interest rate levels, the health of credit markets, and inflationary expectations.
Investment Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 61 ​ ​ Table of Contents ​ demand for gold and silver can be influenced by several factors, including: the value of the U.S. dollar and other currencies, changing U.S. budget deficits, widening availability of exchange-traded funds, interest rate levels, the health of credit markets, and inflationary expectations.
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.
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.
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.
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 62 ​ ​ 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.
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.
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 Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 63 ​ ​ Table of Contents ​ revisions to the estimates of either the timing or amount of the reclamation and remediation costs.
Other assumptions include future operating and capital costs, metal recoveries, production levels, commodity prices, Mineral Resource and Mineral Reserve quantities, engineering data, and other factors unique to each operation based on the life of mine plans.
Rarely, in instances where material new information is discovered, management may utilize other assumptions such as future operating and capital costs, metal recoveries, production levels, commodity prices, Mineral Resource and Mineral Reserve quantities, engineering data, and other factors unique to each operation based on the life of mine plans.
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.
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.
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.
Metals prices used in estimating Mineral Resources and Mineral Reserves for the Company’s Production Stage Properties are based on conservative estimates of the average median consensus prices for each of the three years starting in 2026 through 2028 as provided by Bloomberg’s consensus commodity price forecast as at November 21, 2025.
Removed
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.
Added
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.
Removed
Doré sales are recorded using quoted metal prices, net of refining charges.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Removed
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.
Added
Item 1A. Risk Factors—General Risks— Global and regional political and economic conditions could adversely impact the Company’s business.
Removed
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.
Added
Continuing increases in inflation could increase the costs of labor and other costs related to the business, which could have an adverse impact on the Company’s business, financial position, results of operations, and cash flows. ​ Gold Resource Corporation 23 ​ ​ ​ Table of Contents ​ 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.
Removed
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.
Added
The value of the peso increased by 12.8% in 2025 and decreased by 16.7% in 2024. In addition, fluctuations in currency exchange rates may have a significant impact on the Company’s financial results.
Removed
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.
Added
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.
Removed
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.
Added
The Company cannot assure you that currency fluctuations, inflation, and exchange control policies will not have an adverse impact on its 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.
Removed
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.
Added
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.
Removed
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.
Added
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 the Company’s business, financial condition, and results of operations.
Removed
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.
Added
Risks Related to the Company’s Common Stock Volatility in the Company’s stock price could result in shareholders losing part or all of their investment.
Removed
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.
Added
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 the Company’s common stock, including divergence between its actual or anticipated financial results and published expectations of analysts or the expectations of the market, the gain or loss of customers, announcements that the Company, its competitors or its customers may make regarding their operating results and other factors that are beyond the Company’s control, such as market conditions in the Company’s or its customers’ industry, new market entrants, technological innovations, and economic and political conditions or events.
Removed
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.
Added
Stock markets in general have experienced extreme price and volume fluctuations, and the market prices of individual securities have been highly volatile. These fluctuations are often unrelated to operating performance and may materially adversely affect the market price of the Company’s common stock. As a result, shareholders may be unable to sell their shares at a desired price.
Removed
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.
Added
Past payments of dividends on the Company’s common stock are not a guaranty of future payments of dividends. In 2010, the Company began paying cash dividends to the holders of its common stock, but in February 2023, in order to conserve cash for future development and exploration, the Company announced the suspension of quarterly dividends.
Removed
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.
Added
The Company’s 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.
Removed
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.
Added
Further, a portion of the Company’s cash flow is expected to be retained to finance operations, explorations, and development of mineral properties. There is no assurance that the Board will elect to re-institute a dividend payment in the near-term or at all.
Removed
The Company’s human capital resources objectives include, as applicable, identifying, recruiting, retaining, incentivizing, and integrating its existing employees and new hires.
Added
Issuances of the Company’s stock in the future could dilute existing shareholders and materially adversely affect the market price of its common stock.
Removed
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.
Added
The Company has 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 its common stock, in some cases without shareholder approval. As of March 16, 2026, there were 161,858,849 shares of common stock outstanding.
Removed
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 .
Added
Future issuances of the Company’s securities could be at prices substantially below the price paid for its common stock by current shareholders. The Company can issue significant blocks of its common stock without further shareholder approval.
Removed
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.
Added
Because the ​ Gold Resource Corporation 24 ​ ​ ​ Table of Contents ​ Company has issued less common stock than many of its larger peers, the issuance of a significant amount of common stock may have a disproportionately large impact on share price compared to larger companies.
Removed
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.
Added
General Risks The failure to complete our announced Transaction with Goldgroup could have a material adverse effect on our business, results of operations, financial condition, cash flows and stock price.
Removed
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.
Added
On January 26, 2026, the Company announced that it entered into the Arrangement Agreement with Goldgroup, whereby Goldgroup has agreed to acquire all of the issued and outstanding shares of the Company’s common stock.
Removed
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.
Added
The proposed Transaction will occur by way of a reverse triangular merger in which the Company will merge with a wholly owned subsidiary of Goldgroup under Colorado law and a plan of arrangement under the Business Corporations Act ( British Columbia ), with the Company surviving as a wholly owned subsidiary of Goldgroup.
Removed
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.
Added
The Transaction is expected to close in the second quarter of 2026, subject to customary closing conditions (including approval by the stockholders of each of the Company and Goldgroup and approval by the Mexican National Antitrust Commission).
Removed
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.
Added
There is no assurance that all of the conditions of the Arrangement Agreement will be satisfied, or that the Transaction will be completed on the announced terms, within the expected timeframe or at all.
Removed
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.
Added
The closing of the Transaction may be delayed, or the Transaction may not be completed, due to a number of factors, including as a result of the failure to obtain regulatory approval or to satisfy any other requisite closing conditions.
Removed
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.
Added
If the Transaction does not close, the Company could suffer consequences that may have an adverse effect on its business, financial condition, operating results, cash flows and stock price.
Removed
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.
Added
To the extent that the market price of the Company’s common stock reflects the assumption that the Transaction will be completed in the second quarter of 2026 or at all, the price of our stock could decline.
Removed
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.
Added
The Company may experience adverse effects or changes to relationships with customers, employees, suppliers or other parties resulting from the failure to complete the Transaction. Additionally, there may be potential litigation relating to the Merger that could be instituted against the Company.
Removed
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.
Added
The Company’s operations may be disrupted, and its financial results may be materially adversely affected by any future pandemic. Any pandemic may pose a risk to the business and operations.
Removed
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.
Added
If a significant portion of the Company’s workforce becomes unable to work or travel to the 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), the Company may be forced to reduce or suspend operations, exploration activities, and/or development projects, which may impact liquidity and financial results.
Removed
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.
Added
These restrictions have significantly disrupted economic activity in both the world, national, and local economies and have caused volatility in capital markets.
Removed
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.
Added
To the extent any pandemic materially adversely affects the Company’s 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 operation, indebtedness, and financing.
Removed
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 .
Added
The Company is unable to predict the ultimate adverse impact of any pandemic on the 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. ​ Gold Resource Corporation 25 ​ ​ ​ Table of Contents ​ Global and regional political and economic conditions could adversely impact the Company’s business.
Removed
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.
Added
Political and economic shifts, both domestic and international, may create uncertainty and pose risks to the Company’s operations. Policies related to populism, protectionism, economic nationalism, and attitudes toward multinational corporations could result in regulatory changes, trade barriers, or investment restrictions.
Removed
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.
Added
Additionally, international trade disputes—including tariffs, counter-tariffs, export controls, sanctions, and currency regulations—may increase costs and disrupt supply chain, operating model, and customer relationships. Further, market volatility, driven by shifts in U.S. and foreign trade policies, fluctuating interest rates, or currency controls may affect gold prices, capital availability, and investor confidence.
Removed
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 .
Added
Even the perception of these risks could lead to reduced investment, higher production costs, and operational challenges. If such trends continue, they may have a material adverse effect on the business and financial performance.
Removed
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.
Added
The Company may not be able to operate successfully if it is unable to recruit, hire, retain, and develop key personnel and maintain a qualified and diverse workforce. In addition, the Company is dependent upon its employees being able to safely perform their jobs, but there is risk of physical injuries or illness.
Removed
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.
Added
The Company depends upon the services of a number of key executives and management personnel. These individuals include executive officers and other key employees.
Removed
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.
Added
If any of these individuals were to die, become disabled, or leave the Company, the Company would be forced to identify and retain individuals to replace them but may be unable to hire a suitable replacement on favorable terms should that become necessary. The Company’s success is also dependent on the contributions of its highly skilled and experienced workforce.
Removed
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.
Added
The Company’s ability to achieve its operating goals depend upon the ability to recruit, hire, retain, and develop qualified and diverse personnel to execute on its strategy. There continues to be competition over highly skilled personnel in the industry.
Removed
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.
Added
If the Company loses key personnel or one or more members of senior management team; or if it fails to develop adequate succession plans; or if it fails to hire, retain, and develop qualified and diverse employees; the business, financial condition, results of operations, and cash flows could be harmed.
Removed
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.
Added
The Company is dependent on information technology systems, which are subject to certain risks, including cybersecurity risks, data leakage risks, and risks associated with implementation and integration. The Company is dependent upon information technology systems in the conduct of its business.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

1 edited+0 added−0 removed0 unchanged
Biggest changeITEM 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
Biggest changeITEM 1C: Cybersecurity ​ 27 ITEM 2: Properties ​ 29 ITEM 3 : Legal Proceedings ​ 45 ITEM 4 : Mine Safety Disclosures ​ 45 ​ ​ ​ ​ ​ PART II ​ ​ ​ ​ ​ ​ ITEM 5 : Market For Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities ​ 46

Item 2. Properties

Properties — owned and leased real estate

86 edited+33 added−30 removed7 unchanged
Biggest changeDon 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.
Biggest changeMineral Resources do not have demonstrated economic viability . ​ Gold Resource Corporation 30 ​ ​ ​ 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, 2025 (1)(2)(3)(4)(5)(6) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Description ​ Tonnes (k/t) ​ Gold (g/t) ​ Silver (g/t) ​ Copper (%) ​ Lead (%) ​ Zinc (%) ​ Cut-off grade ​ Metallurgical Recovery (%) Arista ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $/Tonne ​ Au ​ Ag ​ Cu ​ Pb ​ Zn Measured Mineral Resources ​ 3 ​ 1.40 ​ 192.3 ​ 0.32 ​ 1.04 ​ 4.22 ​ 150 ​ 71.3 ​ 85.0 ​ 58.9 ​ 65.8 ​ 76.3 Indicated Mineral Resources ​ 60 ​ 1.66 ​ 248.6 ​ 0.27 ​ 1.78 ​ 5.41 ​ 150 ​ 71.3 ​ 85.0 ​ 58.9 ​ 65.8 ​ 76.3 Measured + Indicated ​ 63 ​ 1.65 ​ 245.7 ​ 0.28 ​ 1.74 ​ 5.35 ​ 150 ​ 71.3 ​ 85.0 ​ 58.9 ​ 65.8 ​ 76.3 Inferred Mineral Resources ​ 1,366 ​ 0.84 ​ 128.0 ​ 0.23 ​ 1.25 ​ 3.69 ​ 150 ​ 71.3 ​ 85.0 ​ 58.9 ​ 65.8 ​ 76.3 Alta Gracia ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AuEq (g/t) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Measured Mineral Resources ​ 27 ​ 0.81 ​ 370.6 ​ - ​ - ​ - ​ 2.35 ​ 85.0 ​ 72.0 ​ - ​ - ​ - Indicated Mineral Resources ​ 141 ​ 0.49 ​ 270.0 ​ - ​ - ​ - ​ 2.35 ​ 85.0 ​ 72.0 ​ - ​ - ​ - Measured + Indicated ​ 168 ​ 0.54 ​ 286.1 ​ - ​ - ​ - ​ 2.35 ​ 85.0 ​ 72.0 ​ - ​ - ​ - Inferred Mineral Resources ​ 148 ​ 0.62 ​ 295.6 ​ - ​ - ​ - ​ 2.35 ​ 85.0 ​ 72.0 ​ - ​ - ​ - ​ Notes on Mineral Resources: 1.
Mineral Resources estimated at December 31, 2024 are based on $2,200/oz for Gold, $28.00/oz for Silver, $4.52/pound for Copper, $1.00/pound for Lead and $1.22/pound for Zinc.
Mineral Resources estimated at December 31, 2024 are based on $2,200/oz for gold, $28.00/oz for silver, $4.52/pound for copper, $1.00/pound for lead and $1.22/pound for zinc.
The metal prices used are based on conservative estimates of 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. 2.
The metal prices used are based on conservative estimates of the average median consensus prices for each of the three years starting in 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. 2.
The metal prices used are based on conservative estimates of 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. 2.
The metal prices used are based on conservative estimates of the average median consensus prices for each of the three years starting in 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. 2.
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”).
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, 2025, which is incorporated by reference as Exhibit 96.2 to this Form 10-K (the “DDGM Technical Report Summary”).
According to the SGM, in 1892, two smelters were built and operated (Magdalena Teitipac and O’Kelly) near the village of Tlacolula for processing ores from the Alta Gracia La Soledad, San Ignacio y Anexas, La Leona, La Victoria, and San Rafael silver mines. Subsequently, in 1911, Mr.
According to the SGM, in 1892, two smelters were built and operated (Magdalena Teitipac and O’Kelly) near the village of Tlacolula to process ores from the Alta Gracia La Soledad, San Ignacio y Anexas, La Leona, La Victoria, and San Rafael silver mines. Subsequently, in 1911, Mr.
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.
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, 2025 is $150/tonne NSR. 4.
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.
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.
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.
The facility also has an agitated leach circuit capable of producing gold and silver doré. ​ Gold Resource Corporation 38 ​ ​ ​ Table of Contents ​ 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.
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.
Any future production from this concession would be subject to a 2% net smelter return royalty payable to Almaden. The Fuego property, which is located south of the Alta Gracia and Chamizo properties, was included in a property-wide airborne geophysical survey conducted in 2013.
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.
In November 2023, the royalty terms associated with the lease agreement were renegotiated, reducing the net smelter return (“NSR”) 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 Company 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. Two concessions are considered within the Arista Mine.
The Company also filed for and received additional concessions from the Mexican government that are not part of the concessions leased or acquired from the third-party. Of these, two concessions are considered part of the Arista Mine.
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.
Back Forty Project – Summary of Gold, Silver, and Base Metal Mineral Resources at December 31, 2024 and 2025 (1) (2) (3) (4) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Description ​ ​ ​ Tonnes (k/t) ​ ​ ​ 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 ​ 28.1 ​ 0.36 ​ - ​ 3.74 ​ 33 Measured + Indicated ​ 9,360 ​ 2.41 ​ 28.1 ​ 0.36 ​ - ​ 3.74 ​ 33 Inferred Mineral Resources ​ 566 ​ 2.70 ​ 48.8 ​ 0.35 ​ - ​ 1.31 ​ 33 Back Forty - Underground ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AuEq (g/t) Measured Mineral Resources ​ - ​ - ​ - ​ - ​ - ​ - ​ - Indicated Mineral Resources ​ 5,137 ​ 1.86 ​ 24.1 ​ 0.41 ​ - ​ 2.65 ​ 73 Measured + Indicated ​ 5,137 ​ 1.86 ​ 24.1 ​ 0.41 ​ - ​ 2.65 ​ 73 Inferred Mineral Resources ​ 627 ​ 2.00 ​ 26.1 ​ 0.37 ​ - ​ 2.89 ​ 73 ​ Notes on Mineral Resources: 1.
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.
According to the Mexican Geological Survey, the Servicio Geologico Mexicano (“SGM”), mining activity in the Tlacolula district began in the early 1880s and resulted in the production of approximately 300,000 ounces of gold and silver from an ore shoot in the La Leona mine. However, no separate production amounts were reported for each metal.
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.
Optimization work related to metallurgy and the economic model for the Back Forty Project was completed in 2023, and the Company issued an updated Back Forty Project Technical Report Summary in October 2023.
Mexican law recognizes mining as a land use generally superior to agriculture. However, the law also recognizes the rights of the Ejidos to compensation in the event mining activity interrupts or discontinues their use of the agricultural lands. Compensation is typically made in the form of a cash payment to the holder of the agricultural rights.
However, the law also recognizes the rights of the Ejidos to compensation in the event mining activity interrupts or discontinues their use of the agricultural lands. Compensation is typically made in the form of a cash payment to the holder of the agricultural rights.
Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information concerning mining operations at the Alta Gracia project.
Please see Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information concerning mining operations at the Alta Gracia project.
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.
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 decreased from 1.12 million tonnes at December 31, 2024 to 0.65 million tonnes at December 31, 2025.
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.
Mining methods, ground control, and other parameters were also reviewed. As a result of this review, measured and indicated Mineral Resources decreased from approximately 0.37 million tonnes at December 31, 2024 to approximately 0.23 million tonnes at December 31, 2025.
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 lies along a major paved highway approximately 120 kilometers southeast of Oaxaca City, the state capital, and approximately four kilometers northwest of the village of San Jose de Gracia.
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.
The Company may terminate the lease at any time upon written notice to the lessor, and the lessor may terminate the lease if the subsidiary fails to fulfill any of its obligations, which primarily consist of paying the appropriate royalty to the lessor. ​ Gold Resource Corporation 36 ​ ​ ​ Table of Contents ​ Initial drilling and exploration activities commenced at the Arista Mine in August 2003.
The amount of mining duties and annual assessments are set by regulation, may increase over the life of the concession, and include periodic adjustments for inflation. Failure to pay the mining duties can lead to the cancelation of the relevant concession.
The amount of mining duties and annual assessments are set by regulation, may increase over the life of the concession, and include periodic adjustments for inflation.
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.
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.
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.
Subsistence farming is practiced locally, with agave cactus cultivated as the primary agricultural crop for the production of mezcal. ​ Gold Resource Corporation 37 ​ ​ ​ Table of Contents ​ Geology and Mineralization: The Arista Mine is located within the San Jose de Gracia mining district in the state of Oaxaca, Mexico.
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.
A measured Mineral Resource estimate or a Mineral Reserve estimate have yet to be established for the Back Forty Project. ​ Gold Resource Corporation 32 ​ ​ ​ Table of Contents ​ 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, which is incorporated by reference as Exhibit 96.1 to this Form 10-K.
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.
Mineral Reserves Under Regulation 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, 2025 (1) (2) (3) (4) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recovery (%) Description ​ Tonnes (kt) ​ ​ 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 ​ 26 ​ 1.91 ​ 475.7 ​ 0.22 ​ 0.81 ​ 1.90 ​ 150 ​ 71.3 ​ 85.0 ​ 58.9 ​ 65.8 ​ 76.3 Probable Mineral Reserves ​ 626 ​ 1.16 ​ 183.9 ​ 0.18 ​ 0.82 ​ 2.52 ​ 150 ​ 71.3 ​ 85.0 ​ 58.9 ​ 65.8 ​ 76.3 Arista Mine Total ​ 652 ​ 1.19 ​ 195.7 ​ 0.18 ​ 0.82 ​ 2.49 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Alta Gracia Mine (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AuEq (g/t) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ ​ ​ ​ ​ ​ Probable Mineral Reserves ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ ​ ​ ​ ​ ​ Alta Gracia Mine Total ​ - ​ - ​ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Don David Gold Mine Total ​ 652 ​ 1.19 ​ 195.7 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Notes on Mineral Reserves: 1.
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.
The principal host rock for the three vein systems (Arista, Switchback and Three Sisters) that comprise the Arista mine is primarily andesite. 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.
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.
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 as of December 31, 2023 and remained classified as Mineral Resources as of December 31, 2024. 4.
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.
The Arista and Switchback vein systems each extend for more than 1.5 kilometers along strike and remain open along strike, and both up- and down-dip. The Three Sisters vein system, which currently comprises 24 veins and vein segments, including the Gloria vein, is located at the northern extent of the Arista Mine underground workings, between the Switchback and Arista systems.
It 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.
Don David Gold Mine – Summary of Gold, Silver, and Base Metal Mineral Resources at December 31, 2024 (1)(2)(3)(4)(5)(6) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Description ​ Tonnes (k/t) ​ 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 ​ 79.4 ​ 0.31 ​ 1.35 ​ 5.14 ​ 120 ​ 79.5 ​ 91.4 ​ 73.9 ​ 71.8 ​ 83.2 Indicated Mineral Resources ​ 201 ​ 1.02 ​ 164.5 ​ 0.29 ​ 0.94 ​ 2.54 ​ 120 ​ 79.5 ​ 91.4 ​ 73.9 ​ 71.8 ​ 83.2 Measured + Indicated ​ 205 ​ 1.01 ​ 163.0 ​ 0.29 ​ 0.95 ​ 2.59 ​ 120 ​ 79.5 ​ 91.4 ​ 73.9 ​ 71.8 ​ 83.2 Inferred Mineral Resources ​ 1,838 ​ 1.03 ​ 100.3 ​ 0.23 ​ 1.29 ​ 3.62 ​ 120 ​ 79.5 ​ 91.4 ​ 73.9 ​ 71.8 ​ 83.2 Alta Gracia ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AuEq (g/t) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Measured Mineral Resources ​ 27 ​ 0.81 ​ 370.6 ​ - ​ - ​ - ​ 2.35 ​ 85.0 ​ 72.0 ​ - ​ - ​ - Indicated Mineral Resources ​ 141 ​ 0.49 ​ 270.0 ​ - ​ - ​ - ​ 2.35 ​ 85.0 ​ 72.0 ​ - ​ - ​ - Measured + Indicated ​ 168 ​ 0.54 ​ 286.1 ​ - ​ - ​ - ​ 2.35 ​ 85.0 ​ 72.0 ​ - ​ - ​ - Inferred Mineral Resources ​ 148 ​ 0.62 ​ 295.6 ​ - ​ - ​ - ​ 2.35 ​ 85.0 ​ 72.0 ​ - ​ - ​ - ​ 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 definitions outlined CIM (2014) and are exclusive of Mineral Reserves. 3.
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. Mineral Resources that are not Mineral Reserves are materials of economic interest with reasonable prospects for economic extraction . 4.
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.
Don David Gold Mine – Summary of Gold, Silver and Base Metal Mineral Reserves at December 31, 2024 (1) (2) (3) (4) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recovery (%) Description ​ Tonnes (kt) ​ ​ 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 ​ 2.25 ​ 276.2 ​ 0.24 ​ 1.20 ​ 3.14 ​ 120 ​ 79.5 ​ 91.4 ​ 73.9 ​ 71.8 ​ 83.2 Probable Mineral Reserves ​ 1,057 ​ 1.21 ​ 135.6 ​ 0.17 ​ 0.70 ​ 2.19 ​ 120 ​ 79.5 ​ 91.4 ​ 73.9 ​ 71.8 ​ 83.2 Arista Mine Total ​ 1,117 ​ 1.26 ​ 143.1 ​ 0.18 ​ 0.73 ​ 2.24 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Alta Gracia Mine (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AuEq (g/t) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ ​ ​ ​ ​ ​ Probable Mineral Reserves ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ - ​ ​ ​ ​ ​ ​ Alta Gracia Mine Total ​ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Don David Gold Mine Total ​ 1,117 ​ 1.26 ​ 143.1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Notes on Mineral Reserves: 1.
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.
The Company holds certain properties as the concession holder and lease other properties from third parties.
Multiple volcanic domes of various scales, and likely non-vented intrusive domes, dominate the district geology. These volcanogenic features are imposed on a pre-volcanic basement of sedimentary rocks. Gold and silver mineralization in this district is related to the manifestations of this classic volcanogenic system and is considered epithermal in character.
District-scale geology is dominated by multiple volcanic domes of varying scales, including likely non-vented intrusive domes, which overlie a pre-volcanic sedimentary rock basement. Gold and silver mineralization within the district is related to the manifestations of this classic volcanogenic system and is classified as epithermal in character.
Mexican mining law does not require payment of finder’s fees to the government, except for a discovery premium in connection with national Mineral Reserves, concessions and claims, or allotments contracted directly from the Mexican Geological Survey. None of the claims held by DDGM are under such a discovery premium regime.
Failure to pay the mining duties can lead to the cancelation of the relevant concession. ​ Gold Resource Corporation 42 ​ ​ ​ Table of Contents ​ Mexican mining law does not require payment of finder’s fees to the government, except for a discovery premium in connection with national Mineral Reserves, concessions and claims, or allotments contracted directly from the Mexican Geological Survey.
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, 2024 and 2025 are based on metal price assumptions of $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.
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.
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. ​ Gold Resource Corporation 35 ​ ​ ​ 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 ​ ​ ​ ​ 2025 Maintenance Fees Paid ​ ​ ​ (in hectares) ​ ​ ​ (in thousands) Production Stage Properties: ​ ​ ​ ​ ​ ​ ​ ​ Arista ​ 18 ​ 24,372 ​ 2002 to 2016 ​ $ 565 ​ Alta Gracia ​ 3 ​ 5,175 ​ 2008 ​ ​ 119 ​ Total Production Stage Properties: ​ ​ ​ 29,547 ​ ​ ​ $ 684 ​ Exploration Stage Properties: ​ ​ ​ ​ ​ ​ ​ ​ Rey ​ 4 ​ 2,335 ​ 2002 to 2009 ​ $ 54 ​ Chamizo ​ 2 ​ 19,758 ​ 2011 to 2013 ​ ​ 462 ​ Margaritas ​ 1 ​ 925 ​ 2002 ​ ​ 21 ​ Fuego ​ 1 ​ 2,554 ​ 2013 ​ ​ 60 ​ Total Exploration Stage Properties: ​ ​ ​ 25,572 ​ ​ ​ $ 597 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total: ​ 29 ​ 55,119 ​ ​ ​ $ 1,281 ​ ​ Production Stage Properties Arista & Alta Gracia Mines History: The Arista and Alta Gracia Mines are located within the regional Tlacolula mining district in the state of Oaxaca, in southern Mexico.
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.
Alta Gracia Mine Background : In 2008, the Company was granted mineral claims adjacent to the Margaritas property in the Alta Gracia mining district through the filing of three mining concessions known as David Fracción I, David Fracción II, and La Herradura, totaling 5,175 hectares. ​ Gold Resource Corporation 39 ​ ​ ​ Table of Contents ​ As of December 31, 2016, Proven and Probable Mineral Reserves had been established for the Mirador vein at the Alta Gracia Mine.
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.
Location and Access: The Alta Gracia project is approximately 20 kilometers northeast of the village of San Pedro Totolapam, in the Municipality of San Pedro Totolapam, Oaxaca. Access to the project is by a gravel road that departs the paved highway approximately 13 kilometers east of the village of San Pedro Totolapam.
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.
In 2011, mining activities were completed in the open pit, and the pit is currently being backfilled and reclaimed using filtered dry-stack tailings deposition. Mineralization at the Arista underground mine is interpreted as intermediate-sulphidation epithermal in style and contains gold, silver, copper, lead, and zinc.
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.
As an exploration-stage property, the Company does not currently consider the Back Forty Project to be independently material to its operations. ​ Background: On December 10, 2021, the Company successfully completed the acquisition of all issued and outstanding common shares of Aquila. Aquila’s principal asset is its 100% interest in the Back Forty Project located in Menominee County, Michigan, USA.
Ejido Lands and Surface Right Acquisitions in Mexico Surface lands within DDGM are Ejido lands (agrarian cooperative lands granted by the federal government to groups of Campesinos pursuant to Article 27 of the Mexican Constitution of 1917). Prior to January 1, 1994, Ejidos could not transfer Ejido lands into private ownership.
None of the claims held by DDGM are under such a discovery premium regime. Ejido Lands and Surface Right Acquisitions in Mexico Surface lands within DDGM are Ejido lands (agrarian cooperative lands granted by the federal government to groups of Campesinos pursuant to Article 27 of the Mexican Constitution of 1917).
LEGAL PROCEEDINGS In February 2020, a local Ejido community (who claim to be an indigenous community) filed an injunction against the Mexican federal government through which they demanded the cancelation of several concession titles, including concessions currently granted to DDGM.
LEGAL PROCEEDINGS In February 2020, a local Ejido community (who claim to be an indigenous community) filed an injunction against the Mexican federal government alleging failure to conduct a prior consultation before granting mining concessions and seeking cancellation of several concessions, including certain concessions granted to DDGM.
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.
Additional detailed mapping, geochemical sampling, and target refinement activities are planned to support future surface and underground drilling campaigns. Exploration Properties Margaritas Property The Margaritas property is made up of the La Tehuana concession, which is approximately 925 hectares and is located within the 55-kilometer San Jose structural corridor, adjacent to the Arista Mine.
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.
The Company continues to evaluate exploration targets within the Chamizo property using available historical and compiled datasets while also focusing on identifying opportunities to strengthen relationships in the local communities. ​ Gold Resource Corporation 41 ​ ​ ​ Table of Contents ​ 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.
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.
Historically, the Company produced ore from two locations at the Arista Mine: an open pit operation and an underground mine. Mineralization mined from the open pit is interpreted as low-sulfidation epithermal in style, consisting predominantly of gold with some silver and no significant base metal content.
Aquila’s principal asset is its 100% interest in the Back Forty Project located in Menominee County, Michigan, USA. The Back Forty Project has a polymetallic (gold, silver, copper, lead, and zinc) Volcanogenic Massive Sulfide deposit. The Back Forty Project controls surface and mineral rights through ownership, leases with the State of Michigan, and royalties with private parties.
The Back Forty Project hosts a volcanogenic massive sulfide (“VMS”) deposit containing gold, silver, copper, lead, and zinc. The Company controls surface and mineral rights through a combination of ownership, leases with the State of Michigan, and royalty agreements with private parties.
For comparison, as at December 31, 2023, DDGM’s estimates of Mineral Resources, exclusive of Mineral Reserves, are provided in the below table.
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, 2024, DDGM’s estimates of Mineral Resources, exclusive of Mineral Reserves, are provided in the table below.
Gold Resource Corporation 32 ​ ​ ​ Table of Contents ​ For comparison, as at December 31, 2023, DDGM’s estimates of Mineral Reserves are presented in the table below.
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 33 ​ ​ ​ Table of Contents ​ For comparison, as at December 31, 2024, DDGM’s estimates of Mineral Reserves are presented in the table below.
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.
Prior to January 1, 1994, Ejidos could not transfer Ejido lands into private ownership. 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.
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.
Exploration Activities: In 2025, the Company successfully completed an underground diamond drilling program at the Arista Mine, consisting of 105 diamond drill holes totaling 13,418 meters. The program included 78 underground grade-control drill holes totaling 8,557 meters, which were focused on upgrading Mineral Resources to Mineral Reserves within multiple veins of the Arista, Three Sisters and Switchback vein systems.
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.
Rounding of tonnes, average grades, and contained ounces may result in apparent discrepancies with total rounded tonnes, average grades, and total contained ounces . 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.
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.
The lease commenced in 2012 and was renewed in December 2024 through the end of 2027. ​ Gold Resource Corporation 43 ​ ​ ​ 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.
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.
Outreach to local Tribes, including the Menominee Indian Tribe of Wisconsin, began in 2010. Aquila completed extensive archeological studies across areas potentially affected by the project as well as adjacent areas. In coordination with regulatory authorities, areas for permanent protection were identified and appropriate buffer zones established.
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 .
Office Facilities: In Michigan, the Company owns and operates an administrative office building in Stephenson, Michigan, and maintains a field office near the location of the potential future mine facilities. The Company also maintains an industrial-grade core storage, logging, and sampling facility near the Back Forty Project site. ITEM 3 .
The Company’s properties comprise 551 continuous square kilometers of ground along a 55 kilometer structural corridor, encompassing three historic mining districts in Oaxaca. The map below shows the general location of the properties: ​ The Company was granted concessions from the Mexican federal government to explore and mine the properties in Mexico. Please see below Item 2.
The map below shows the general location of the DDGM property areas. ​ The Company was granted concessions from the Mexican federal government to explore and mine the properties in Mexico. Please see below Item 2. Properties—Mining Concessions and Regulations in Mexico for additional information.
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.
The Company anticipates conducting a similar level of exploration and concession-maintenance work in 2026, subject to budgetary and operational considerations. 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.
This increase was primarily due to the reclassification of 0.43 million tonnes from Inferred Mineral Resources to proven and probable Mineral Reserves due to the successful results of the 2024 infill drilling program at the Three Sisters vein system and detailed engineering.
These reductions were partially offset by the reclassification of 0.30 million tonnes of Mineral Resources to Proven and Probable Mineral Reserves, driven by the results from the 2025 infill and grade-control drilling program at the Three Sisters and Arista vein systems and detailed engineering.
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.
Arista Mine Background: The Arista Mine consists of 18 mining concessions totaling 24,372 hectares. In 2002, the Company entered into lease agreements for three initial concessions from a third-party. Two of these concessions form part of the Arista Mine, while the third concession comprises the Margaritas property.
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.
Item 2. Properties— Back Forty Project for further discussion of the property. Mineral Resources Under Regulation 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.
The Three Sisters vein system currently has a defined strike length of over 750 meters, and remains open along strike, as well as up- and down-dip.
The Three Sisters system has a defined strike length of more than 750 meters and remains open along strike and both up- and down-dip. Infill and expansion drilling planned for 2026 will continue to prioritize resource expansion within the Three Sisters system, as well as the northern extensions of veins within the Arista system.
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.
In July 2017, mine development reached the economic ore zone of the Mirador vein, and underground mining commenced. Mining activities were suspended in 2019, and no Mineral Reserves are currently reported for the Alta Gracia Mine.
Geologic mapping and surface sampling have been conducted on the Fuego property, meeting the necessary work requirements to maintain the concession. While the Company does not anticipate significant exploration activities at Fuego in 2025, it plans to perform the required work to maintain the concession.
Geologic mapping and surface sampling have also been completed historically on the Fuego property to satisfy the minimum work requirements necessary to maintain the concession. No field-based exploration activities were conducted on the Fuego property during 2025.
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.
The concessions include El Rey, El Virrey, La Reyna, and El Marquez, and collectively cover 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, and obtained the remaining concessions through staking and filings with the Mexican government.
Sken Sanders investigated the Totolapam mining region with a particular interest in the Margaritas mine. Most of these historical mines are within DDGM’s mining concessions. While the DDGM Arista Mine and Alta Gracia Mine are in the smaller mining subdistricts of San Jose de Gracia and Alta Gracia, respectively, only small-scale artisanal mining was historically conducted in these areas’ subdistricts.
Although the DDGM Arista Mine and Alta Gracia Mine are situated within the smaller mining subdistricts of San Jose de Gracia and Alta Gracia, respectively, only small-scale artisanal mining was historically conducted in these areas. No reliable production records exist for the historic production from within the Arista and Alta Gracia Project areas.
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.
The haulage distance by road from Alta Gracia to the DDGM processing facility is approximately 32 kilometers. Geology and Mineralization: The sedimentary and volcanic units mapped at Alta Gracia closely resemble those at the Arista Mine. The district is characterized by Tertiary-age rhyolite flows and tuffs, underlain by andesite flows and tuffs.
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.
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. ​ Gold Resource Corporation 34 ​ ​ ​ Table of Contents ​ Don David Gold Mine The Company’s portfolio of properties comprising DDGM is located along a 55-kilometer, north-west trending stretch of the San Jose structural corridor within the Sierra Madre del Sur mountain range in the state of Oaxaca, Mexico.
Meanwhile, the Company will complete the necessary work to maintain the claims in good standing. 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.
Evaluation of historical surface and drill data continues, and the Company will reassess opportunities for additional exploration activities if access conditions and community approvals permit. 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.
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 Reserves estimated at December 31, 2025 are based on metal price assumptions of $3,000/oz for gold, $38.00/oz for silver, $4.54/pound for copper, $0.95/pound for lead and $1.25/pound for zinc.
Infill and expansion drilling in 2025 will continue to focus on expanding resources in the Three Sisters vein system as well as in the Splay 31 vein in the northern extension of the Arista vein system.
Expansion drilling is expected to focus on the Three Sisters vein system, including the Gloria vein, along strike to the northwest and down-dip, as well as on the northern and down-dip extensions of the Marena North and Splay 31 veins within the Arista vein system.
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.
Underground development was advanced to access the mineralization delineated by drilling completed in 2018 and 2019 on the Independencia vein. ​ Gold Resource Corporation 40 ​ ​ ​ Table of Contents ​ Ore from the Alta Gracia Mine, primarily silver-bearing material, was transported by contracted haul trucks to the DDGM processing facility, where it was processed through the agitated leach plant to produce doré as a final product.
The Arista Mine cut-off grade applied to Mineral Resources estimated at December 31, 2023 is $100/tonne NSR. 4. Alta Gracia Mineral Reserves reported December 31, 2022 have been downgraded to Mineral Resources for the December 31, 2023 estimate. 5.
The Arista Mine NSR cut-off grades for Mineral Reserves are $150/tonne. 3. Alta Gracia Mineral Reserves reported as of December 31, 2022 were reclassified as Mineral Resources as of December 31, 2023 and remain classified as Mineral Resources as of December 31, 2025. 4.
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.
Mineral Resources estimated at December 31, 2025 are based on $3,000/oz for gold, $38.00/oz for silver, $4.54/pound for copper, $0.95/pound for lead and $1.25/pound for zinc.
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.
Cumulatively, the Company has drilled 2,158 holes totaling 523,937 meters across the Arista Mine, Alta Gracia, Rey, and Margaritas properties. ​ DDGM Ore Terminal In 2010, the Company acquired additional concessions from a third-party at no additional cost, which are subject to a 2% royalty.
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.
Any future production from the San Pedro Fraccion 2 concession would be subject to a 2% net smelter return royalty payable to Almaden. In 2022, limited surface geologic mapping and geochemical rock and soil sampling were completed within the Jabali prospect area of the San Pedro Fraccion 2 concession.
The climate of the Arista Mine area is dry and warm to very warm with most rainfall occurring in June through September, and annual precipitation averaging 423.7 mm. The average yearly temperature is 26.6 degrees centigrade. The area is very rocky with arid vegetation.
The Company has constructed gravel and paved access roads from the village to the mine and processing facility, providing adequate access to the property. The climate in the Arista Mine area is dry and warm to very warm, with most rainfall occurring between June and September and average annual precipitation of 432 millimeters.
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.
The definitions for Mineral Resources in S-K 1300 were followed, which are consistent with definitions outlined by the 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.
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.
As of December 31, 2025, the Company has completed 1,992 diamond drill holes (including both surface and underground programs) totaling 509,570 meters. In addition, 166 reverse circulation drill holes have been completed for a total of 14,367 meters.
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. Additionally, a diesel power generation plant, a compressed air system, and a mine water pumping station were developed and put into service.
Facilities : In 2016, the Company received an operating permit authorizing production from the Mirador vein at Alta Gracia. During 2017, two mine portals were developed to provide access to the Mirador vein and supporting infrastructure, including mine site offices and a mobile equipment maintenance shop, was established.
Additionally, 22 underground infill drill holes, totaling 7,348 meters, were completed to upgrade previously defined inferred Mineral Resources to measured and indicated Mineral Resources. This effort delineated and better defined multiple sub-parallel veins within the Three Sisters and North Arista vein systems.
In addition, 27 underground infill drill holes totaling 4,861 meters were completed to upgrade previously defined Inferred Mineral Resources to Measured and Indicated Mineral Resource categories.

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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 57 ​ ​ Table of Contents ​ Trending Highlights ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2024 ​ Q1 Q2 Q3 Q4 ​ Q1 Q2 Q3 Q4 Operating Data ​ ​ ​ ​ ​ ​ ​ ​ ​ Total tonnes milled 117,781 113,510 116,626 111,255 ​ 98,889 93,687 83,690 80,367 Average Grade - ​ ​ ​ ​ ​ ​ ​ ​ Gold (g/t) 2.33 1.59 1.52 1.44 ​ 1.89 1.27 0.54 0.64 Silver (g/t) 94 86 73 85 ​ 88 102 83 94 Copper (%) 0.37 0.37 0.32 0.39 ​ 0.37 0.26 0.19 0.20 Lead (%) 1.73 1.64 1.29 1.39 ​ 1.25 1.00 1.01 1.12 Zinc (%) 3.88 3.72 3.24 2.95 ​ 2.82 2.59 2.63 2.73 Metal production (before payable metal deductions) ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold (ozs.) 7,171 4,637 4,443 4,077 ​ 4,757 2,947 944 1,258 Silver (ozs.) 322,676 289,816 247,159 282,487 ​ 251,707 263,023 194,525 210,581 Copper (tonnes) 336 334 276 341 ​ 280 181 93 88 Lead (tonnes) 1,559 1,389 1,048 1,072 ​ 812 616 576 678 Zinc (tonnes) 3,837 3,569 3,223 2,884 ​ 2,310 2,020 1,741 1,734 Metal produced and sold ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold (ozs.) 6,508 4,287 3,982 3,757 ​ 3,557 2,724 1,357 960 Silver (ozs.) 294,815 274,257 208,905 258,252 ​ 216,535 234,560 181,434 184,804 Copper (tonnes) 332 327 245 327 ​ 264 197 98 82 Lead (tonnes) 1,417 1,317 947 820 ​ 667 491 467 548 Zinc (tonnes) 3,060 3,141 2,571 2,182 ​ 1,682 1,771 1,473 1,360 Average metal prices realized ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold ($ per oz.) $ 1,915 $ 2,010 $ 1,934 $ 1,985 ​ $ 2,094 $ 2,465 $ 2,561 $ 2,706 Silver ($ per oz.) $ 23.04 $ 24.93 $ 23.61 $ 23.14 ​ $ 23.29 $ 30.49 $ 30.61 $ 31.11 Copper ($ per tonne) $ 9,172 $ 8,397 $ 8,185 $ 8,205 ​ $ 8,546 $ 10,428 $ 8,832 $ 8,969 Lead ($ per tonne) $ 2,158 $ 2,153 $ 2,196 $ 2,122 ​ $ 1,977 $ 2,235 $ 2,065 $ 1,897 Zinc ($ per tonne) $ 3,195 $ 2,485 $ 2,195 $ 2,516 ​ $ 2,483 $ 2,871 $ 2,854 $ 3,062 Gold equivalent ounces sold ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Ounces 6,508 4,287 3,982 3,757 ​ 3,557 2,724 1,357 960 Gold Equivalent Ounces from Silver 3,547 3,402 2,550 3,011 ​ 2,408 2,901 2,169 2,125 Total AuEq oz 10,055 7,689 6,532 6,768 ​ 5,965 5,625 3,526 3,085 ​ ​ Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 58 ​ ​ Table of Contents ​ Liquidity and Capital Resources As of December 31, 2024, working capital was $2.1 million, a decrease of $13.1 million from $15.2 million at December 31, 2023 .
Biggest changeGold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 58 ​ ​ Table of Contents ​ Trending Highlights ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 ​ 2025 ​ Q1 Q2 Q3 Q4 ​ Q1 Q2 Q3 Q4 Operating Data ​ ​ ​ ​ ​ ​ ​ ​ ​ Total tonnes milled 98,889 93,687 83,690 80,367 ​ 56,906 63,479 65,131 85,888 Average Grade ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold (g/t) 1.89 1.27 0.54 0.64 ​ 0.70 0.56 1.11 0.96 Silver (g/t) 88 102 83 94 ​ 169 115 250 298 Copper (%) 0.37 0.26 0.19 0.20 ​ 0.18 0.13 0.16 0.16 Lead (%) 1.25 1.00 1.01 1.12 ​ 0.72 0.88 0.63 0.58 Zinc (%) 2.82 2.59 2.63 2.73 ​ 1.68 2.72 1.57 1.22 Metal production (before payable metal deductions) ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold (ozs.) 4,757 2,947 944 1,258 ​ 903 758 1,646 1,993 Silver (ozs.) 251,707 263,023 194,525 210,581 ​ 257,285 196,435 453,057 687,523 Copper (tonnes) 280 181 93 88 ​ 54 50 73 87 Lead (tonnes) 812 616 576 678 ​ 272 373 241 306 Zinc (tonnes) 2,310 2,020 1,741 1,734 ​ 699 1,380 784 750 Metal produced and sold ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold (ozs.) 3,557 2,724 1,357 960 ​ 859 878 1,422 1,785 Silver (ozs.) 216,535 234,560 181,434 184,804 ​ 230,320 150,365 417,710 663,503 Copper (tonnes) 264 197 98 82 ​ 50 43 67 80 Lead (tonnes) 667 491 467 548 ​ 277 272 212 253 Zinc (tonnes) 1,682 1,771 1,473 1,360 ​ 617 1,060 645 618 Average metal prices realized ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold ($ per oz.) $ 2,094 $ 2,465 $ 2,561 $ 2,706 ​ $ 2,956 $ 3,350 $ 3,546 $ 4,234 Silver ($ per oz.) $ 23.29 $ 30.49 $ 30.61 $ 31.11 ​ $ 32.54 $ 34.35 $ 41.39 $ 55.06 Copper ($ per tonne) $ 8,546 $ 10,428 $ 8,832 $ 8,969 ​ $ 9,656 $ 9,619 $ 9,690 $ 11,224 Lead ($ per tonne) $ 1,977 $ 2,235 $ 2,065 $ 1,897 ​ $ 1,950 $ 1,887 $ 1,937 $ 1,981 Zinc ($ per tonne) $ 2,483 $ 2,871 $ 2,854 $ 3,062 ​ $ 2,710 $ 2,607 $ 2,841 $ 3,258 Gold equivalent ounces sold ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Ounces 3,557 2,724 1,357 960 ​ 859 878 1,422 1,785 Gold Equivalent Ounces from Silver 2,408 2,901 2,169 2,125 ​ 2,535 1,542 4,876 8,628 Total AuEq oz 5,965 5,625 3,526 3,085 ​ 3,394 2,420 6,298 10,413 ​ ​ Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 59 ​ ​ Table of Contents ​ Liquidity and Capital Resources As of December 31, 2025, working capital was $32.0 million, an increase of $29.9 million from $2.1 million at December 31, 2024 .
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.
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.
The actual amount of cash expenditures that the Company incurs during the twelve-month period ending December 31, 2025 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.
The actual amount of cash expenditures that the Company incurs during the twelve-month period ending December 31, 2026 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.
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.
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 02021.
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.
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. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Measures .
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 56 ​ ​ Table of Contents ​ Reconciliations to U.S.
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 57 ​ ​ Table of Contents ​ Reconciliations to U.S.
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.
Although production costs were lower for the year ended December 31, 2025, 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.
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.
RESERVED. ​ ​ ​ Gold Resource Corporation 46 ​ ​ ​ 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.
Differences can also arise from inventory changes incidental to shipping schedules, or variances in ore grades and recoveries, which impact the amount of metals contained in concentrates produced and sold.
Differences can also arise from inventory changes incidental to shipping schedules, or variances in ore grades and recoveries, which impacts the amount of metals contained in concentrates produced and sold.
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 .
The following discussion summarizes the results of operations for the two fiscal years ended December 31, 2025 and 2024 and the financial condition as of December 31, 2025 and 2024, with a particular emphasis on the year ended December 31, 2025 .
(2) Refer to Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—2024 Capital and Exploration Investment Summary .
(2) Refer to Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—2025 Capital and Exploration Investment Summary .
Off-Balance Sheet Arrangements As of December 31, 2024, the Company has off-balance sheet arrangements related to equipment purchase obligations of $1.5 million. Accounting Developments For a discussion of recently adopted and recently issued accounting pronouncements, please see Item 8. Financial Statements —Note 3. New Accounting Pronouncements below. Critical Accounting Estimates The preparation of financial statements in conformity with U.S.
Off-Balance Sheet Arrangements As of December 31, 2025, the Company has off-balance sheet arrangements related to equipment purchase obligations of $4.3 million. Accounting Developments For a discussion of recently adopted and recently issued accounting pronouncements, please see Item 8. Financial Statements —Note 2. New Accounting Pronouncements below. Critical Accounting Estimates The preparation of financial statements in conformity with U.S.
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.
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 project development, capital expenditures, and exploration, the Company suspended the quarterly dividend payments until such time that it may become practicable to reinstate them. ITEM 6.
The 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.
The following table summarizes certain non-GAAP financial data of the Company for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended December 31, ​ ​ 2025 ​ ​ ​ 2024 Other Non-GAAP Financial Measures: ​ (in thousands) Total cash cost after co-product credits per AuEq oz sold (1) ​ $ 2,205 ​ $ 2,330 Total consolidated all-in sustaining cost after co-product credits per AuEq oz sold (1) ​ $ 3,041 ​ $ 3,200 Total all-in cost after co-product credits per AuEq oz sold (1) ​ $ 3,540 ​ $ 3,325 (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.
At the Back Forty Project, $1.6 million was spent in 2023 to wrap up the optimization work and to release the Back Forty Project Technical Report Summary, which is incorporated by reference as Exhibit 96.1 to this Form 10-K. In 2024, minimal work was done for the Back Forty Project.
At the Back Forty Project, $0.4 million was spent in 2024 to wrap up the optimization work and to release the Back Forty Project Technical Report Summary, which is incorporated by reference as Exhibit 96.1 to this Form 10-K.
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.
Subsequent Events. Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 47 ​ ​ Table of Contents ​ Results of Operations Don David Gold Mine Production Statistics Mine activities during 2025 included development and ore extraction from the Arista Mine.
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.
Management’s Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Measures below. Full-year 2025 compared to full-year 2024 Total cash cost after co-product credits per AuEq oz sold: For the year ended December 31, 2025, the total cash cost after co-product credits per AuEq oz sold was $2,205 compared to $2,330 for 2024.
(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.
(2) 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.
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.
Introduction Gold Resource Corporation is a mining company that pursues gold and silver projects that are expected to achieve both low operating costs and high returns on capital. Through its wholly owned subsidiary, DDGM, the Company holds six properties and does mineral production primarily from the Arista underground mine.
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.
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 48 ​ ​ Table of Contents ​ Full-year 2025 compared to full-year 2024 Key drivers in the production and financial results for the year ended December 31, 2025, as compared to 2024, relate to the lower tonnes mined, lower metal grades (with the exception of silver), lower recoveries, and higher metal prices.
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.
Treatment and refining charges Treatment charges for the year ended December 31, 2025, were $3.4 million, or $809 per tonne of base metal produced and sold, as compared to $5.7 million, or $627 per tonne of base metal produced and sold for the same period in 2024.
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.
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 March 16, 2026, there were 161,858,849 outstanding shares of Gold Resource Corporation, which were held by approximately 200 holders of record.
A total of 1,922 meters of underground development and exploration development, at a cost of $4.7 million, was completed during the year, including access to new exploration drill stations for both infill and expansion programs.
A total of 4,178 meters of underground development and exploration development, at a cost of $13.9 million, was completed during the year, including access to new exploration drill stations for grade-control, infill and expansion programs.
The increase in cash inflows from financing activities is attributable to the increased ATM sales in 2024. While current macro risk factors, such as economic uncertainties and supply chain interruptions have not had a significant adverse impact on exploration plans, results of operations, financial position, and cash flows during the current fiscal year, future impacts are unknown.
While current macro risk factors, such as economic uncertainties and supply chain interruptions have not had a significant adverse impact on exploration plans, results of operations, financial position, and cash flows during the current fiscal year, future impacts are unknown.
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.
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 54 ​ ​ Table of Contents ​ Total consolidated all-in sustaining cost after co-product credits per AuEq oz sold: For the year ended December 31, 2025, the total consolidated all-in sustaining cost after co-product credits per AuEq oz sold was $3,041 compared to $3,200 for 2024.
The decrease in the Company’s working capital balance at December 31, 2024 is mainly attributable to the $4.6 million decrease in cash and cash equivalents, the $2.2 million lower accounts receivable, the $2.4 million lower inventory balance, and the $3.6 million higher accounts payable.
The increase in the Company’s working capital balance at December 31, 2025 is mainly attributable to the $23.4 million increase in cash and cash equivalents, the $11.1 million higher accounts receivable, the $1.3 million higher inventory balance, and the $3.9 million lower accounts payable.
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.
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 52 ​ ​ Table of Contents ​ 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.
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.
Metals produced and sold are lower than total metals produced because a portion of the metal content contained in shipped concentrates is withheld by the purchaser under the terms of the Company’s sales contracts.
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.
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 49 ​ ​ 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, ​ ​ 2025 ​ 2024 Net sales ( in thousands) ​ ​ ​ ​ ​ ​ Gold ​ $ 17,813 ​ $ 19,774 Silver ​ ​ 66,062 ​ ​ 23,146 Copper ​ ​ 2,436 ​ ​ 5,827 Lead ​ ​ 1,977 ​ ​ 4,402 Zinc ​ ​ 8,360 ​ ​ 17,313 Less: Treatment and refining charges ​ ​ (3,392) ​ ​ (5,706) Realized and unrealized gain - embedded derivative, net ​ ​ 6,503 ​ ​ 970 Total sales, net ​ $ 99,759 ​ $ 65,726 Metal produced and sold ​ ​ ​ ​ ​ ​ Gold (ozs.) ​ ​ 4,944 ​ ​ 8,598 Silver (ozs.) ​ ​ 1,461,898 ​ ​ 817,333 Copper (tonnes) ​ ​ 240 ​ ​ 641 Lead (tonnes) ​ ​ 1,014 ​ ​ 2,173 Zinc (tonnes) ​ ​ 2,940 ​ ​ 6,286 Average metal prices realized (1) ​ ​ ​ ​ ​ ​ Gold ($ per oz.) ​ $ 3,657 ​ $ 2,354 Silver ($ per oz.) ​ $ 45.48 ​ $ 28.75 Copper ($ per tonne) ​ $ 10,181 ​ $ 9,223 Lead ($ per tonne) ​ $ 1,938 ​ $ 2,034 Zinc ($ per tonne) ​ $ 2,817 ​ $ 2,804 Gold equivalent ounces sold ​ ​ ​ ​ ​ ​ Gold Ounces ​ ​ 4,944 ​ ​ 8,598 Gold Equivalent Ounces from Silver ​ ​ 18,181 ​ ​ 9,982 Total AuEq oz ​ ​ 23,125 ​ ​ 18,580 ​ (1) Average metal prices realized vary from the market metal prices due to final settlement adjustments from provisional invoices when they are settled.
The Company believes that the mine has significant potential to generate positive cash flow based on the information to date from the new areas of the Three Sisters vein system, as well as other areas that have been discovered near the existing mining zones.
The Company believes that the mine has the potential to generate positive cash flow based on the information to date from the new Three Sisters area, as well as other zones that have been discovered near existing headings. The Company started developing access to and drill-defining these new areas.
For financial reporting purposes, the Company reports the sale of base metals as part of its revenue. Revenue generated from the sale of base metals in concentrates is considered a co-product of gold and silver production for the purpose of the total cash cost after co-product credits for the Don David Gold Mine.
Revenue generated from the sale of base metals in concentrates is considered a co-product of gold and silver production for the purpose of the total cash cost after co-product credits for the Don David Gold Mine. The Company periodically reviews its revenues to ensure that the reporting of primary products and co-products remains appropriate.
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.
Total cost of sales Total cost of sales of $73.0 million for the year ended December 31, 2025 decreased by $13.2 million, or 15%, compared to 2024. The primary driver is the $5.3 million, or 8%, decrease in production costs from $65.6 million in 2024 to $60.3 million in 2025, and a $6.9 million, or 38%, decrease in depreciation expense.
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.
Other Expense, Net for additional information. Income tax provision: For the year ended December 31, 2025, income tax expense was $3.4 million, a decrease of $5.9 million from a $9.3 million income tax expense for 2024. This decrease is primarily driven by the valuation allowance recorded during 2024 on the deferred tax assets of DDGM. Please see Item 8.
Back Forty Feasibility and Permitting: Work on optimizing the Back Forty Project was completed during the third quarter of 2023, and the Company released the Back Forty Project Technical Report Summary in October 2023.
Back Forty Feasibility and Permitting: Optimizing work related to metallurgy and the economic model for the Back Forty Project was completed during the third quarter of 2023, and the Company issued an updated Back Forty Project Technical Report Summary in October 2023.
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.
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 50 ​ ​ Table of Contents ​ Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 51 ​ ​ 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, ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (in thousands) Doré and concentrate sales ​ $ 96,648 ​ $ 70,462 Less: Treatment and refining charges ​ ​ (3,392) ​ ​ (5,706) Realized/unrealized derivatives, net ​ ​ 6,503 ​ ​ 970 Sales, net ​ ​ 99,759 ​ ​ 65,726 Total cost of sales ​ ​ 72,979 ​ ​ 86,217 Mine gross profit (loss) ​ ​ 26,780 ​ ​ (20,491) Other costs and expenses, including taxes ​ ​ 33,239 ​ ​ 36,010 Net loss ​ $ (6,459) ​ $ (56,501) ​ Full-year 2025 compared to full-year 2024 Sales, net DDGM net sales of $99.8 million for the year ended December 31, 2025 increased by $34.0 million, or 52%, when compared to 2024.
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.
Because the non-GAAP performance measures do not have any standardized meaning prescribed by U.S. 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.
The decrease of $4.6 million of cash and cash equivalents from December 31, 2023 is attributable to a cash outflow of $6.4 million for capital investments, and a cash outflow of $0.6 million from operating activities for 2024 that includes exploration investment of $2.0 million in DDGM, partially offset by $2.7 million in cash inflows from financing activities due to sales through the ATM Program, as reported in the Consolidated Statements of Cash Flows .
The increase of $23.4 million of cash and cash equivalents from December 31, 2024 is attributable to a cash inflow of $21.7 million from operating activities in 2025 and a $22.1 million cash inflow from financing activities due to the sales of common stock through registered direct offerings and through the ATM Program, partially offset by a cash outflow of $20.2 million for capital investments, as reported in the Consolidated Statements of Cash Flows .
The $7.8 million increase from 2023 was mainly due to $3.3 million in higher interest on the streaming liabilities, $1.8 million in higher net realized and unrealized currency gains and losses, and a $2.6 million unrealized loss on the Green Light Metals investment in 2024. Please see Item 8. Financial Statements—Note 19. Other Expense, Net for additional information.
The $2.3 million increase from 2024 was mainly due to the $3.3 million higher interest expense on the streaming liabilities, the $1.7 million higher other expenses, and the $0.5 million loss on the loan payoff in 2025, partially offset by the $3.0 million lower net realized and unrealized investment loss in 2025. Please see Item 8. Financial Statements—Note 19.
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, 2024 and 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ Note ​ For the year ended December 31, ​ ​ ​ 2024 ​ 2023 ​ ​ ​ ​ ​ ​ Restated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total cost of sales (1) ​ ​ $ 86,217 ​ $ 102,952 Less: Depreciation and amortization (1) ​ ​ ​ (18,120) ​ ​ (26,126) Less: Reclamation and remediation (1) ​ ​ ​ (2,545) ​ ​ (683) Refining charges for Doré sales 5 ​ ​ 6 ​ ​ 52 Treatment and refining charges for Concentrate sales 5 ​ ​ 5,700 ​ ​ 11,578 Co-product credits: ​ ​ ​ ​ ​ ​ ​ Concentrate sales - Copper 5 ​ ​ (5,827) ​ ​ (10,472) Concentrate sales - Lead 5 ​ ​ (4,402) ​ ​ (9,540) Concentrate sales - Zinc 5 ​ ​ (17,313) ​ ​ (29,225) Realized gain for embedded derivatives - Copper 21 ​ ​ (83) ​ ​ (6) Realized gain for embedded derivatives - Lead 21 ​ ​ (18) ​ ​ (174) Realized (gain) loss for embedded derivatives - Zinc 21 ​ ​ (316) ​ ​ 511 Total cash cost after co-product credits ​ ​ $ 43,299 ​ $ 38,867 Gold equivalent (AuEq) ounces sold (oz) ​ ​ ​ 18,580 ​ ​ 31,085 Total cash cost after co-product credits per AuEq oz sold ​ ​ $ 2,330 ​ $ 1,250 ​ ​ ​ ​ ​ ​ ​ ​ Total cash cost after co-product credits from above ​ ​ $ 43,299 ​ $ 38,867 Sustaining Investments - Capital: ​ ​ ​ ​ ​ ​ ​ Underground Development (2) ​ ​ ​ 4,634 ​ ​ 4,386 Other Sustaining Capital (2) ​ ​ ​ 2,970 ​ ​ 1,420 Sustaining Investments - Capitalized Exploration: ​ ​ ​ ​ ​ ​ ​ Infill Drilling (2) ​ ​ ​ 977 ​ ​ 4,096 Surface and Underground Exploration Development & Other (2) ​ ​ ​ 65 ​ ​ 1,139 Reclamation and remediation (1) ​ ​ ​ 2,545 ​ ​ 683 DDGM all-in sustaining cost after co-product credits ​ ​ $ 54,490 ​ $ 50,591 AuEq ounces sold (oz) ​ ​ ​ 18,580 ​ ​ 31,085 DDGM all-in sustaining cost after co-product credits per AuEq oz sold ​ ​ $ 2,933 ​ $ 1,628 ​ ​ ​ ​ ​ ​ ​ ​ DDGM all-in sustaining cost after co-product credits from above ​ ​ $ 54,490 ​ $ 50,591 Corporate Sustaining Expenses: ​ ​ ​ ​ ​ ​ ​ General and administrative expenses (1) ​ ​ ​ 4,283 ​ ​ 6,583 Stock-based compensation (1) ​ ​ ​ 677 ​ ​ 681 Consolidated all-in sustaining cost after co-product credits ​ ​ $ 59,450 ​ $ 57,855 AuEq ounces sold (oz) ​ ​ ​ 18,580 ​ ​ 31,085 Total consolidated all-in sustaining cost after co-product credits per AuEq oz sold ​ ​ $ 3,200 ​ $ 1,861 ​ ​ ​ ​ ​ ​ ​ ​ Consolidated all-in sustaining cost after co-product credits from above ​ ​ $ 59,450 ​ $ 57,855 Underground Exploration Development (2) ​ ​ ​ - ​ ​ 357 Growth Investments - Exploration: ​ ​ ​ ​ ​ ​ ​ Mexico exploration expenses (1) ​ ​ ​ 1,959 ​ ​ 4,167 Michigan Back Forty Project expenses (1) ​ ​ ​ 378 ​ ​ 1,642 Total all-in cost after co-product credits ​ ​ $ 61,787 ​ $ 64,021 AuEq ounces sold (oz) ​ ​ ​ 18,580 ​ ​ 31,085 Total all-in cost after co-product credits per AuEq oz sold ​ ​ $ 3,325 ​ $ 2,060 ​ (1) Refer to Item 8—Financial Statements: Consolidated Statements of Operations.
Financial Statements Note # ​ For the year ended December 31, ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total cost of sales (1) ​ ​ $ 72,979 ​ $ 86,217 Less: Depreciation and amortization (1) ​ ​ ​ (11,197) ​ ​ (18,120) Less: Reclamation and remediation (1) ​ ​ ​ (1,499) ​ ​ (2,545) Refining charges for Doré sales 4 ​ ​ 10 ​ ​ 6 Treatment and refining charges for Concentrate sales 4 ​ ​ 3,382 ​ ​ 5,700 Co-product credits: ​ ​ ​ ​ ​ ​ ​ Concentrate sales - Copper 4 ​ ​ (2,436) ​ ​ (5,827) Concentrate sales - Lead 4 ​ ​ (1,977) ​ ​ (4,402) Concentrate sales - Zinc 4 ​ ​ (8,360) ​ ​ (17,313) Realized gain for embedded derivatives - Copper 21 ​ ​ (4) ​ ​ (83) Realized loss (gain) for embedded derivatives - Lead 21 ​ ​ 10 ​ ​ (18) Realized loss (gain) for embedded derivatives - Zinc 21 ​ ​ 79 ​ ​ (316) Total cash cost after co-product credits ​ ​ $ 50,987 ​ $ 43,299 Gold equivalent (AuEq) ounces sold (oz) ​ ​ ​ 23,125 ​ ​ 18,580 Total cash cost after co-product credits per AuEq oz sold ​ ​ $ 2,205 ​ $ 2,330 ​ ​ ​ ​ ​ ​ ​ ​ Total cash cost after co-product credits from above ​ ​ $ 50,987 ​ $ 43,299 Sustaining Investments - Capital: ​ ​ ​ ​ ​ ​ ​ Underground Development (2) ​ ​ ​ 3,243 ​ ​ 4,634 Other Sustaining Capital (2) ​ ​ ​ 6,149 ​ ​ 2,970 Sustaining Investments - Capitalized Exploration: ​ ​ ​ ​ ​ ​ ​ Infill Drilling (2) ​ ​ ​ 1,289 ​ ​ 977 Surface and Underground Exploration Development & Other (2) ​ ​ ​ 1,746 ​ ​ 65 Reclamation and remediation (1) ​ ​ ​ 1,499 ​ ​ 2,545 DDGM all-in sustaining cost after co-product credits ​ ​ $ 64,913 ​ $ 54,490 AuEq ounces sold (oz) ​ ​ ​ 23,125 ​ ​ 18,580 DDGM all-in sustaining cost after co-product credits per AuEq oz sold ​ ​ $ 2,807 ​ $ 2,933 ​ ​ ​ ​ ​ ​ ​ ​ DDGM all-in sustaining cost after co-product credits from above ​ ​ $ 64,913 ​ $ 54,490 Corporate Sustaining Expenses: ​ ​ ​ ​ ​ ​ ​ General and administrative expenses (1) ​ ​ ​ 4,258 ​ ​ 4,283 Stock-based compensation (1) ​ ​ ​ 1,147 ​ ​ 677 Consolidated all-in sustaining cost after co-product credits ​ ​ $ 70,318 ​ $ 59,450 AuEq ounces sold (oz) ​ ​ ​ 23,125 ​ ​ 18,580 Total consolidated all-in sustaining cost after co-product credits per AuEq oz sold ​ ​ $ 3,041 ​ $ 3,200 ​ ​ ​ ​ ​ ​ ​ ​ Consolidated all-in sustaining cost after co-product credits from above ​ ​ $ 70,318 ​ $ 59,450 Underground Exploration Development (2) ​ ​ ​ 8,906 ​ ​ - Growth Investments - Exploration: ​ ​ ​ ​ ​ ​ ​ Mexico exploration expenses (1) ​ ​ ​ 1,857 ​ ​ 1,959 Michigan Back Forty Project expenses (1) ​ ​ ​ 793 ​ ​ 378 Total all-in cost after co-product credits ​ ​ $ 81,874 ​ $ 61,787 AuEq ounces sold (oz) ​ ​ ​ 23,125 ​ ​ 18,580 Total all-in cost after co-product credits per AuEq oz sold ​ ​ $ 3,540 ​ $ 3,325 ​ (1) Refer to Item 8—Financial Statements: Consolidated Statements of Operations.
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.
Other Costs and Expenses, Including Taxes ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended December 31, ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (in thousands) Other costs and expenses: ​ ​ ​ ​ ​ ​ General and administrative expenses ​ $ 4,258 ​ $ 4,283 Mexico exploration expenses ​ ​ 1,857 ​ ​ 1,959 Michigan Back Forty Project expenses ​ ​ 793 ​ ​ 378 Stock-based compensation ​ ​ 1,147 ​ ​ 677 Other expense, net ​ ​ 21,775 ​ ​ 19,452 Total other costs and expenses ​ ​ 29,830 ​ ​ 26,749 Income tax provision ​ ​ 3,409 ​ ​ 9,261 Total other costs and expenses, including taxes ​ $ 33,239 ​ $ 36,010 ​ Full-year 2025 compared to full-year 2024 General and administrative expenses: For the year ended December 31, 2025, general and administrative expenses totaled $4.3 million, in line with expenses for 2024.
Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Measures . 2024 Capital and Exploration Investment Summary ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended December 31, 2024 ​ 2024 full year guidance ​ ​ 2024 ​ 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sustaining Investments: ​ ​ ​ ​ ​ ​ ​ ​ ​ Underground Development ​ $ 4,634 ​ $ 4,386 ​ ​ ​ Other Sustaining Capital ​ ​ 2,970 ​ ​ 1,420 ​ ​ ​ Infill Drilling ​ ​ 977 ​ ​ 4,096 ​ ​ ​ Surface and Underground Exploration Development & Other ​ ​ 65 ​ ​ 1,139 ​ ​ ​ Subtotal of Sustaining Investments: ​ ​ 8,646 ​ ​ 11,041 ​ $ 8.8 - 11.0 million Growth Investments: ​ ​ ​ ​ ​ ​ ​ ​ ​ DDGM growth: ​ ​ ​ ​ ​ ​ ​ ​ ​ Surface Exploration / Other ​ ​ 1,921 ​ ​ 2,240 ​ ​ ​ Underground Exploration Drilling ​ ​ 38 ​ ​ 1,927 ​ ​ ​ Underground Exploration Development ​ ​ - ​ ​ 357 ​ ​ ​ Back Forty growth: ​ ​ ​ ​ ​ ​ ​ ​ ​ Back Forty Project Optimization & Permitting ​ ​ 378 ​ ​ 1,642 ​ ​ ​ Subtotal of Growth Investments: ​ ​ 2,337 ​ ​ 6,166 ​ $ 3.2 - 5.2 million Total Capital and Exploration: ​ $ 10,983 ​ $ 17,207 ​ $ 12.0 - 16.2 million ​ The Company’s capital investment in Mexico totaled $8.6 million in 2024.
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 55 ​ ​ Table of Contents ​ 2025 Capital and Exploration Investment Summary ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended December 31, 2025 ​ ​ 2025 ​ 2024 ​ ​ ​ ​ ​ ​ ​ Sustaining Investments: ​ ​ ​ ​ ​ ​ Underground Development ​ $ 3,243 ​ $ 4,634 Other Sustaining Capital ​ ​ 6,149 ​ ​ 2,970 Infill Drilling ​ ​ 1,289 ​ ​ 977 Surface and Underground Exploration Development & Other ​ ​ 1,746 ​ ​ 65 Subtotal of Sustaining Investments: ​ ​ 12,427 ​ ​ 8,646 Growth Investments: ​ ​ ​ ​ ​ ​ DDGM growth: ​ ​ ​ ​ ​ ​ Surface Exploration / Other ​ ​ 1,857 ​ ​ 1,921 Underground Exploration Drilling ​ ​ - ​ ​ 38 Underground Exploration Development ​ ​ 8,906 ​ ​ - Back Forty growth: ​ ​ ​ ​ ​ ​ Back Forty Project Optimization & Permitting ​ ​ 793 ​ ​ 378 Subtotal of Growth Investments: ​ ​ 11,556 ​ ​ 2,337 Total Capital and Exploration: ​ $ 23,983 ​ $ 10,983 ​ The Company’s capital investment in Mexico totaled $21.3 million in 2025.
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%.
Compared to 2024, the average metal price for gold, silver, copper, and zinc increased by 55%, 58%, 10%, and less than 1%, respectively, due to strong demand for these metals in the international markets. The average metal price for lead decreased by 5%.
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.
This is an increase in mine gross profit and mine gross profit percent of $47.3 million and 58%, respectively, when compared to 2024.
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.
Most of these decreases were expected due to mine sequencing, but the issues the Company experienced at the first half of 2025 with equipment availability due to the age and condition of some of the critical mining equipment, also resulted in lower amount of metals produced and available for sale.
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.
GAAP and has referenced some non-GAAP performance measures which the Company believes will assist with understanding the performance of the business. 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”).
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.
This 5% decrease is because although there was an 18% higher total cash cost after co-product credits in 2025, the total number of AuEq ounces sold increased by 24%. The higher total cash cost after co-product credits is the result of the 55% lower amount of co-product credits the Company received during the year ended December 31, 2025.
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.
Total all-in cost after co-product credits per AuEq oz sold: For the year ended December 31, 2025, the total all-in cost after co-product credits per AuEq oz sold was $3,540 compared to $3,325 for 2024. The 6% increase is due to the higher non-sustaining exploration expenditures in 2025.
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 decrease in production costs is related to lower production in 2025 . ​ Mine gross profit (loss) ​ For the year ended December 31, 2025, mine gross profit and mine gross profit percent totaled $26.8 million and 27%, respectively, as compared to a mine gross loss and mine gross loss percent of $20.5 million and 31% for 2024.
Financial Statements—Note 7. Income Taxes for additional information. Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 52 ​ ​ Table of Contents ​ Other Non-GAAP Financial Measures Certain non-GAAP financial measures are discussed below.
Financial Statements—Note 6. Income Taxes for additional information. 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. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Measures below.
The cash outflow from operating activities is partially the result of the relatively higher fixed costs related to lower production and the higher energy prices due to inflation. The working capital balance fluctuates as the Company uses cash to fund operations, financing, and investing activities, including exploration and mine development. Please see Item 8. Financial Statements—Note 15.
The cash inflow from operating activities is mainly attributable to the higher net sales as a result of higher metal prices. The working capital balance fluctuates as the Company uses cash to fund operations, financing, and investing activities, including exploration and mine development. Please see Item 8. Financial Statements—Note 15. Shareholders’ Equity in for additional information about the ATM Program.
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 60 ​ ​ Table of Contents ​ Future Metals Prices Metals prices are key components in estimates that determine the valuation of some of the Company’s significant assets and liabilities, including properties, plant and equipment, deferred tax assets, and certain accounts receivable.
Future Metals Prices Metals prices are key components in estimates that determine the valuation of some of the Company’s significant assets and liabilities, including properties, plant and equipment, deferred tax assets, and certain accounts receivable. Metals prices are also an important component in the estimation of reserves. As shown above in
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.
As shown in the DDGM Technical Report Summary, gold and silver grades are projected, based on current life-of-mine planning assumptions, to trend toward the average grades outlined in the Mineral Resources and Mineral Reserves estimates.
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.
Average metal prices realized During the year ended December 31, 2025, the average metal prices were $3,657 per ounce for gold, $45.48 per ounce for silver, $10,181 per tonne for copper, $1,938 per tonne for lead, and $2,817 per tonne for zinc.
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.
Net loss For the year ended December 31, 2025, the Company recorded a net loss of $6.5 million, as compared to $56.5 million net loss during 2024. The change was attributable to the factors noted above.
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.
The percentage payable metal—the amount of metal sold as a percent of the metal produced—were higher for all metals with the exception of copper for the year ended December 31, 2025 compared to 2024, primarily reflecting mineralogical characteristics and concentrate quality of the material processed.
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.
As grades decline, recoveries are also expected to decline; however, recoveries may also be influenced by mineralogical characteristics, ore blending strategies, and processing conditions. ​ The base metal average grades for the year ended December 31, 2025 were 0.16% for copper, 0.69% for lead, and 1.75% for zinc, compared to 0.26% for copper, 1.10% for lead, and 2.70% for zinc in 2024.
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.
The following table summarizes certain production statistics about the Don David Gold Mine for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Arista Mine ​ ​ ​ ​ ​ ​ Milled ​ ​ ​ ​ ​ ​ Tonnes Milled ​ ​ 271,404 ​ ​ 356,633 Tonnes Milled per Day (1) ​ ​ 1,191 ​ ​ 1,277 Grade ​ ​ ​ ​ ​ ​ Average Gold Grade (g/t) ​ ​ 0.85 ​ ​ 1.13 Average Silver Grade (g/t) ​ ​ 217 ​ ​ 92 Average Copper Grade (%) ​ ​ 0.16 ​ ​ 0.26 Average Lead Grade (%) ​ ​ 0.69 ​ ​ 1.10 Average Zinc Grade (%) ​ ​ 1.75 ​ ​ 2.70 Recoveries ​ ​ ​ ​ ​ ​ Average Gold Recovery (%) ​ ​ 71.5 ​ ​ 76.6 Average Silver Recovery (%) ​ ​ 84.4 ​ ​ 87.5 Average Copper Recovery (%) ​ ​ 62.0 ​ ​ 68.5 Average Lead Recovery (%) ​ ​ 63.5 ​ ​ 68.4 Average Zinc Recovery (%) ​ ​ 76.1 ​ ​ 81.1 Metal production ​ ​ ​ ​ ​ ​ Gold (ozs.) ​ ​ 5,300 ​ ​ 9,906 Silver (ozs.) ​ ​ 1,594,300 ​ ​ 919,836 Copper (tonnes) ​ ​ 264 ​ ​ 642 Lead (tonnes) ​ ​ 1,192 ​ ​ 2,682 Zinc (tonnes) ​ ​ 3,613 ​ ​ 7,805 Metal produced and sold ​ ​ ​ ​ ​ ​ Gold (ozs.) ​ ​ 4,944 ​ ​ 8,598 Silver (ozs.) ​ ​ 1,461,898 ​ ​ 817,333 Copper (tonnes) ​ ​ 240 ​ ​ 641 Lead (tonnes) ​ ​ 1,014 ​ ​ 2,173 Zinc (tonnes) ​ ​ 2,940 ​ ​ 6,286 Percentage payable metal (2) ​ ​ ​ ​ ​ ​ Gold (%) ​ ​ 93 ​ ​ 87 Silver (%) ​ ​ 92 ​ ​ 89 Copper (%) ​ ​ 91 ​ ​ 100 Lead (%) ​ ​ 85 ​ ​ 81 Zinc (%) ​ ​ 81 ​ ​ 81 ​ (1) Based on actual days the mill operated during the period.
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.
The Company expects grades to vary from period to period based on the annual mine plan. The gold grades are expected to trend upwards 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.
Net cash used in operating activities for the year ended December 31, 2024 was $0.6 million, compared to net cash used in operating activities of $5.2 million in 2023. The decrease in the net cash used in operating activities is mainly attributable to the lower mining royalty and income taxes paid and the increase in accounts payable in 2024.
The increase in the net cash provided by operating activities is mainly attributable to the higher net sales as a result of higher metal prices, resulting in a lower net loss. Net cash used in investing activities for the year ended December 31, 2025 was $20.2 million compared to $6.4 million during 2024.
Project financing requirements will not be determined until the Company’s Board of Directors approve a decision to proceed on the Back Forty Project. The Board continues to evaluate options that could lead to the development of the Back Forty Project.
Project financing requirements will not be determined until the Company’s Board of Directors approve a decision to proceed with the Back Forty Project. The Company is currently in discussions to complete a feasibility study and to move forward with the permitting process for the Back Forty Project.
The decrease in investing activities is mainly attributed to planned reduction in investing activities to preserve cash, and in addition, the lower Back Forty expenses in 2024, due to completion of the optimization work in October 2023. Net cash provided in financing activities for the year ended December 31, 2024 was $2.7 million compared $0.1 million in 2023.
The increase in investing activities is mainly attributed to the increased capital expenditure to replace some of the old mining equipment and an increased mine development in 2025. Net cash provided in financing activities for the year ended December 31, 2025 was $22.1 million compared to $2.7 million in 2024.
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 in stock-based compensation is mainly due to the higher share price used in 2025 for mark-to-market adjustment for the cash-settled instruments. Other expense, net: For the year ended December 31, 2025, the Company recorded other expense, net, of $21.8 million compared to $19.5 million during the year ended December 31, 2024.
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.
Although lower production results were expected in accordance with the 2025 mine plan, additional offsetting factors were the higher metal prices, especially for gold and silver. Grades & Recoveries During the year ended December 31, 2025, the Company processed ore with an average gold grade of 0.85 g/t, as compared to 1.13 g/t for 2024.
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.
The 41% decrease in treatment and refining charges is due to fewer base metals produced and sold in 2025 as compared to the same period in 2024, partially offset by higher refining charges.
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.
The increase in the mine gross profit between 2025 and 2024 as shown in the table above is primarily explained by the higher net sales as a result of higher metals prices in 2025 compared to 2024 and lower production cost and depreciation due to lower production in 2025.
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.
In both years, exploration expenses were limited due to the availability of cash and the focus on upgrading some mining equipment. Michigan Back Forty Project expenses: For the year ended December 31, 2025, the Back Forty Project expenses totaled $0.8 million, as compared to $0.4 million for the year ended December 31, 2024.
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.
Recovery for gold declined 7% in 2025, primarily due to lower grades processed. ​ The average silver grade for the year ending 2025 increased 136% to 217 g/t.
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.
The increase in the 2025 net sales is the result of higher gold, silver, copper, and zinc average realized prices.
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.
Full-year 2025 compared to full-year 2024 ​ Metal produced and sold During the year ended December 31, 2025, the Company had gold sales of 4,944 ounces, silver sales of 1,461,898 ounces, copper sales of 240 tonnes, lead sales of 1,014 tonnes, and zinc sales of 2,940 tonnes.
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 increase is primarily due to the $22.1 million cash inflow from financing activities. Net cash provided by operating activities for the year ended December 31, 2025 was $21.7 million, compared to net cash used in operating activities of $0.6 million in 2024.
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.
Recoveries for all base metals also decreased during 2025, largely due to the lower grades processed.
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.
Costs were higher in 2025 due to increases in property taxes and increases in liability estimates related to Back Forty drillhole plugging accrued as consulting expense. Stock-based compensation : For the year ended December 31, 2025, stock-based compensation expense totaled $1.1 million as compared to $0.7 million for the year ended December 31, 2024.
Cash and cash equivalents as of December 31, 2024 decreased to $1.6 million from $6.3 million as of December 31, 2023, a net decrease in cash of $4.6 million. The decrease is primarily due to the $6.4 million cash spent on investing activities for capital investments and the $0.6 million cash outflows from operations.
The Board of Directors actively evaluates the options that could lead to the successful development of the project. Cash and cash equivalents as of December 31, 2025 increased to $25.0 million from $1.6 million as of December 31, 2024, a net increase in cash of $23.4 million.
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 54 ​ ​ Table of Contents ​ ​ ​ ​ ​ ​ DDGM Ore Transportation Underground and Exploration Development: Mine development during 2024 included ramps and accesses to different areas of the deposit, vertical shafts, and exploration development drifts.
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 53 ​ ​ Table of Contents ​ Mexico exploration expenses: For the year ended December 31, 2025, the DDGM exploration expenses totaled $1.9 million as compared to $2.0 million for the year ended December 31, 2024.
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.
As shown in the DDGM Technical Report Summary, future base metal grades and recoveries are projected, based on current life-of-mine planning assumptions, to be in line with the life of mine averages presented in the Mineral Resources and Mineral Reserves tables. ​ Production For the year ended December 31, 2025, the Oaxaca operations processed 271,404 tonnes of ore at an average rate of 1,191 tonnes per day, representing a decrease of 24% in total material processed and a decrease of 7% in average daily throughput compared to the prior year.
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.
During 2025, the Company negotiated treatment and refining charge agreements with buyers on both annual and spot terms. The 41% decrease in treatment and refining charges is due to the lower base metals produced and sold in 2025 as compared to the same period in 2024, partially offset by higher refining charges.
The Company has Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 59 ​ ​ Table of Contents ​ encountered significant issues with equipment availability due to the age and condition of some of the critical mining equipment in use at the mine.
Due to the age and condition of some of the critical mining equipment used at the mine, the Company started to encounter significant issues with equipment availability in 2024. To overcome this issue, the Company engaged a third-party contract miner during the third quarter of 2025 and also started to upgrade its mining fleet.
Removed
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.
Added
Recent Developments On January 26, 2026, the Company announced that it has entered into a definitive arrangement agreement and plan of merger with Goldgroup Mining Inc., whereby Goldgroup has agreed to acquire all of the issued and outstanding shares of the Company’s common stock. For additional information, please see Item 1. Business—Recent Developments and Item 8. Financial Statements—Note 24.
Removed
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.

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Item 6. [Reserved]

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

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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
Biggest changeITEM 6: Reserved ​ 46 ITEM 7 : Management’s Discussion and Analysis of Financial Condition and Results of Operations ​ 47 ITEM 7A : Quantitative and Qualitative Disclosures About Market Risk ​ 65 ITEM 8: Financial Statements ​ 67 ITEM 9 : Changes in and Disagreements with Accountants on Accounting and Financial Disclosure ​ 105 ITEM 9A : Controls and Procedures ​ 105 ITEM 9B : Other Information ​ 106

Item 7. Management's Discussion & Analysis

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

37 edited+11 added−25 removed73 unchanged
Biggest changeNevertheless, services provided by a refiner or smelter may be disrupted by operational issues; new or increased tariffs, duties, or other cross-border trade barriers; the bankruptcy or insolvency of one or more smelters or refiners; or the inability to agree on acceptable commercial or legal terms with a refiner or smelter.
Biggest changeNevertheless, services provided by a refiner or smelter may be disrupted by operational issues; new or increased tariffs, duties, or other cross-border trade barriers; the bankruptcy or insolvency of one or more smelters or refiners; or the inability to agree on acceptable commercial or legal terms with a refiner or smelter. ​ Gold Resource Corporation 18 ​ ​ ​ Table of Contents ​ Such an event or events may disrupt an existing relationship with a refiner or smelter or result in the inability to create a contractual relationship with a refiner or smelter, which may leave the Company with limited, uneconomical, or no access to smelting or refining services for short or long periods of time.
Regulatory Risks The Company’s operations are subject to ongoing permitting requirements, which could result in the delay, suspension, or termination of its operations. The Company’s operations, including ongoing exploration drilling programs and mining, require ongoing permits from governmental and local authorities. The Company may also be required to obtain certain property rights to access or use its properties.
Regulatory and Geopolitical Risks The Company’s operations are subject to ongoing permitting requirements, which could result in the delay, suspension, or termination of its operations. The Company’s operations, including ongoing exploration drilling programs and mining, require ongoing permits from governmental and local authorities. The Company may also be required to obtain certain property rights to access or use its properties.
Any material problems that the Company encounters in connection with such an acquisition could have a material adverse effect on its business, results Gold Resource Corporation 19 ​ ​ ​ Table of Contents ​ of operations, and financial position. These factors may materially adversely affect the trading price of the Company’s common stock.
Any material problems that the Company encounters in connection with such an acquisition could have a material adverse effect on its business, results ​ Gold Resource Corporation 20 ​ ​ ​ Table of Contents ​ of operations, and financial position. These factors may materially adversely affect the trading price of the Company’s common stock.
Should the impacts of climate change be material in nature or occur for lengthy periods of time in the areas in which the Company operates, financial condition or results of operations could be materially adversely affected. The Company’s continuing reclamation obligations at its operations could require significant additional expenditures .
Should the impacts of climate change be material in nature or occur for lengthy periods of time in the areas in which the Company operates, financial condition or results of operations could be materially adversely affected. The Company’s continuing reclamation obligations at its operations could require significant additional expenditure .
As a result, the Company’s operations are subject to a number of risks, some of which are outside of its control, including: ● Negotiating agreements with contractors on acceptable terms; ● New foreign or domestic legislation limiting or altering the ability to utilize contractors or outsourced resources; ● The difficulty and inherent delay in replacing a contractor and its equipment in the event that either party terminates the agreement; ● Reduced control and oversight over those aspects of the work which are the responsibility of the contractor; ● Failure of a contractor to perform under its agreement; ● Interruption of development and construction or increased costs in the event that a contractor ceases its business due to insolvency or other unforeseen events; ● Injuries or fatalities on the job as a result of the failure to implement or follow adequate safety measures; ● Failure of a contractor to comply with applicable legal and regulatory requirements, to the extent it is responsible for such compliance; and ● Problems of a contractor managing its workforce, labor unrest, or other related employment issues. ​ Gold Resource Corporation 18 ​ ​ ​ Table of Contents ​ In addition, the Company may incur liability to third parties as a result of the actions of its contractors.
As a result, the Company’s operations are subject to a number of risks, some of which are outside of its control, including: ● Negotiating agreements with contractors on acceptable terms; ● New foreign or domestic legislation limiting or altering the ability to utilize contractors or outsourced resources; ● The difficulty and inherent delay in replacing a contractor and its equipment in the event that either party terminates the agreement; ● Reduced control and oversight over those aspects of the work which are the responsibility of the contractor; ● Failure of a contractor to perform under its agreement; ● Interruption of development and construction or increased costs in the event that a contractor ceases its business due to insolvency or other unforeseen events; ● Injuries or fatalities on the job as a result of the failure to implement or follow adequate safety measures; ● Failure of a contractor to comply with applicable legal and regulatory requirements, to the extent it is responsible for such compliance; and ● Problems of a contractor managing its workforce, labor unrest, or other related employment issues. ​ In addition, the Company may incur liability to third parties as a result of the actions of its contractors.
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.
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, 2025 that could be economically and legally extracted or produced at the time of the reserve determination.
The Company’s operations are, and any future mining operations or construction that may be conducted will be, subject to all of the operating hazards and risks normally incident to exploring for and mining of mineral properties, such as, but not limited to: ● Fluctuation in production costs that make mining uneconomic; ● Fluctuation in commodity prices; ● Social, community, or labor force disputes resulting in work stoppages or delays, or related loss of social acceptance of community support; ● Changes to legal and regulatory requirements; ● Unanticipated variations in grade and other geologic problems; ● Environmental hazards, noxious fumes, and gases; ● Ground and water conditions; ● Difficult surface or underground conditions; ● Industrial accidents; ● Security incidents; ● Failure of unproven or evolving technologies or loss of information integrity or data; ● Metallurgical and other processing problems; ● Mechanical and equipment performance problems; ● Failure of pit walls, dams, declines, drifts, and shafts; ● Unusual or unexpected rock formations; ● Personal injury; ● Pandemics; ● Fire, flooding, cave-ins, seismic activity, landslides, or other inclement weather conditions, including those impacting operations or the ability to access and supply sites; and ● Decrease in the value of mineralized material due to lower gold, silver, and metal prices. ​ These occurrences could result in damage to—or destruction of—mineral properties, processing facilities, and equipment; personal injury or death; environmental damage; reduced extraction and processing; delays in mining; asset write-downs; monetary losses; and possible legal liability.
The Company’s operations are, and any future mining operations or construction that may be conducted will be, subject to all of the operating hazards and risks normally incident to exploring for and mining of mineral properties, such as, but not limited to: ● Fluctuation in production costs that make mining uneconomic; ● Fluctuation in commodity prices; ● Social, community, or labor force disputes resulting in work stoppages or delays, or related loss of social acceptance of community support; ● Changes to legal and regulatory requirements; ● Unanticipated variations in grade and other geologic problems; ● Environmental hazards, noxious fumes, and gases; ● Ground and water conditions; ​ Gold Resource Corporation 17 ​ ​ ​ Table of Contents ​ ● Difficult surface or underground conditions; ● Industrial accidents; ● Security incidents; ● Failure of unproven or evolving technologies or loss of information integrity or data; ● Metallurgical and other processing problems; ● Mechanical and equipment performance problems; ● Failure of pit walls, dams, declines, drifts, and shafts; ● Unusual or unexpected rock formations; ● Personal injury; ● Pandemics, tariffs, and wars that could affect input costs and revenues; ● Fire, flooding, cave-ins, seismic activity, landslides, or other inclement weather conditions, including those impacting operations or the ability to access and supply sites; and ● Decrease in the value of mineralized material due to lower gold, silver, and metal prices. ​ These occurrences could result in damage to—or destruction of—mineral properties, processing facilities, and equipment; personal injury or death; environmental damage; reduced extraction and processing; delays in mining; asset write-downs; monetary losses; and possible legal liability.
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.
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 materially adversely impacted the Company’s results of operations and operating cash flow in the past and may continue to do so in the future.
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.
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 down mining operations, and prevent it from pursuing expansion or any development opportunities.
In addition, changes in mining or investment policies or shifts in political attitudes in Mexico may materially adversely affect the Company’s business.
Changes in mining or investment policies or shifts in political attitudes in Mexico may also materially adversely affect the Company’s business.
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.
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.
Gold Resource Corporation 17 ​ ​ ​ Table of Contents ​ Revenue from the sale of metal concentrate may be materially adversely affected by loss or damage during shipment and storage at the Company’s buyer’s facilities. The Company relies on third-party transportation companies to transport its metal concentrate to each buyer’s facilities for processing and further refining.
Revenue from the sale of metal concentrate may be materially adversely affected by loss or damage during shipment and storage at the Company’s buyer’s facilities. The Company relies on third-party transportation companies to transport its metal concentrate to each buyer’s facilities for processing and further refining.
The occurrence of one or more of these risks could materially adversely affect the Company’s results of operations and financial position. Risks Related to the Company’s Exploration Activities The exploration of the Company’s mineral properties is highly speculative in nature, involves substantial expenditures, and is frequently non-productive.
The occurrence of one or more of these risks could materially adversely affect the Company’s results of operations and financial position. ​ Gold Resource Corporation 19 ​ ​ ​ Table of Contents ​ Risks Related to the Company’s Exploration Activities The exploration of the Company’s mineral properties is highly speculative in nature, involves substantial expenditures, and is frequently non-productive.
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.
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 ​ Gold Resource Corporation 16 ​ ​ ​ Table of Contents ​ properties.
In most of the countries where the Company operates, failure to comply with applicable laws and regulations relating to mineral right applications and tenure could result in loss, reduction or expropriation of entitlements, or the imposition of additional local or foreign parties as joint venture partners.
Furthermore, failure to comply with applicable laws and regulations relating to mineral right applications and tenure could result in loss, reduction or expropriation of entitlements, or the imposition of additional local or foreign parties as joint venture partners.
Gold Resource Corporation 20 ​ ​ ​ Table of Contents ​ Climate change and climate change legislation or regulations could impact the Company’s business. The Company is subject to physical risks associated with climate change, which could seriously harm its results of operations and increase costs and expenses.
Climate change and climate change legislation or regulations could impact the Company’s business. The Company is subject to physical risks associated with climate change, which could seriously harm its results of operations and increase costs and expenses.
Gold Resource Corporation 21 ​ ​ ​ Table of Contents ​ Mining concessions in Mexico give exclusive exploration and exploitation rights to the minerals located in the concessions but do not include surface rights to the real property, which requires that the Company negotiates the necessary agreements with surface landowners.
Mining concessions in Mexico give exclusive exploration and exploitation rights to the minerals located in the concessions but do not include surface rights to the real property, which requires that the Company negotiates the necessary agreements with surface landowners.
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.
In the event that the Company’s subsidiary, Aquila Resource Inc., defaults under the Osisko Stream Agreements, including by failing to acquire the required permits and achieve commercial production by the agreed upon dates, it may be required to repay the deposit plus accumulated interest at a rate agreed with Osisko.
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.
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. ​ Gold Resource Corporation 15 ​ ​ ​ Table of Contents ​ Increasing operating and capital costs may materially adversely impact the Company’s results of operations.
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.
In the event that the Company’s relationship with any of its 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.
Additionally, in 2014, new mining concessions became subject to additional review and approval by the Mexico Ministry of Energy, and in recent years, the federal government has been reluctant to issue new mining concessions.
Additionally, in 2014, new mining concessions became subject to additional review and approval by the Mexico Ministry of Energy, and in recent years, the federal government has been reluctant to issue new mining concessions. The Company’s concessions in Mexico are subject to continuing government regulation, and failure to adhere to such regulations will result in the termination of such concessions.
The Company must negotiate and maintain a satisfactory arrangement with these residents in order to disturb or discontinue their rights to farm.
The Company’s ability to mine minerals is subject to maintaining satisfactory arrangements and relationships with the Ejido. The Company must negotiate and maintain a satisfactory arrangement with these residents in order to disturb or discontinue their rights to farm.
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.
The Company may 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. 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.
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”).
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The Company’s subsidiary, Aquila Resource Inc., may be required to repay a significant amount if it defaults under certain gold and silver stream agreements.
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.
If the subsidiary 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. ​ Gold Resource Corporation 14 ​ ​ ​ Table of Contents ​ The Company’s revenues are concentrated among a select few customers.
These costs principally include electricity, labor, water, maintenance, local contractors, and fuel. The appreciation of the peso against the U.S. dollar increases expenses and the cost of purchasing capital assets in U.S. dollar terms in Mexico, which can adversely impact the Company’s operating results and cash flows.
The appreciation of the peso against the U.S. dollar increases expenses and the cost of purchasing capital assets in U.S. dollar terms in Mexico, which can adversely impact the Company’s operating results and cash flows. Conversely, the depreciation of the Mexican peso decreases operating costs and capital asset purchases in U.S. dollar terms.
Future changes in environmental regulation in the jurisdictions where the Company’s properties are located may materially adversely affect its business, make the business prohibitively expensive, or prohibit it altogether. The Company cannot predict what environmental legislation or regulations will be enacted or adopted in the future or how future laws and regulations will be administered or interpreted.
Future changes in environmental regulation in the jurisdictions where the Company’s properties are located may materially adversely affect its business, make the business prohibitively expensive, or prohibit it altogether.
The annual average inflation rate in Mexico was approximately 4.72% in 2024 and 5.55% in 2023. Current and future inflationary effects may be driven by, among other things, supply chain disruptions, governmental stimulus or fiscal policies, and geopolitical instability. For additional information, please see Item 1A.
Current and future inflationary effects may be driven by, among other things, supply chain disruptions, governmental stimulus or fiscal policies, and geopolitical instability. For additional information, please see
Many of the mining properties are subject to the Mexican Ejido system, requiring the Company to contract with the local communities surrounding the properties in order to obtain surface rights to land needed in connection with mining exploration activities. Please see Item 1A.
Many of the mining properties are subject to the Mexican Ejido system, which are groups of local inhabitants who were granted rights to conduct agricultural activities on the property, for access and surface disturbances, requiring the Company to contract with the local communities surrounding the properties in order to obtain surface rights to land needed in connection with mining exploration activities.
The Company’s ability to explore and operate its properties depends on the validity of its title to that property. Uncertainties inherent in mineral properties relate to such things as the sufficiency of mineral discovery, proper posting and marking of boundaries, assessment work and possible conflicts with other claims not determinable from public record.
Uncertainties inherent in mineral properties relate to such things as the sufficiency of mineral discovery, proper posting and marking of boundaries, assessment work and possible conflicts with other claims not determinable from public record. There may be valid challenges to the title to the Company’s properties which, if successful, could impair development and/or operations.
Conversely, the depreciation of the Mexican peso decreases operating costs and capital asset purchases in U.S. dollar terms. When inflation in Mexico increases without a corresponding devaluation of the Mexican peso, the Company’s financial position, results of operations, and cash flows could be materially adversely affected.
When inflation in Mexico increases without a corresponding devaluation of the Mexican peso, the Company’s financial position, results of operations, and cash flows could be materially adversely affected. The annual average inflation rate in Mexico was approximately 3.82% in 2025 and 4.72% in 2024.
Mineral rights derive from concessions granted—on a discretionary basis—by the Ministry of Economy, pursuant to the Mexican mining law and regulations thereunder. The Company’s concessions in Mexico are subject to continuing government regulation, and failure to adhere to such regulations will result in the termination of the concession.
Under the laws of Mexico, Mineral Resources belong to the United States of Mexico, and government concessions are required to explore for or exploit Mineral Reserves. Mineral rights derive from concessions granted—on a discretionary basis—by the Ministry of Economy, pursuant to the Mexican mining law and regulations thereunder.
There may be valid challenges to the title to the Company’s properties which, if successful, could impair development and/or operations. The resolution of disputes in foreign countries can be costly and time consuming. In a foreign country, the Company face the additional burden of understanding unfamiliar laws and procedures.
The resolution of disputes in foreign countries can be costly and time consuming. In a foreign country, the Company faces the additional burden of understanding unfamiliar laws and procedures. Not like in the U.S., the Company may not be entitled to a jury trial.
Title to mineral properties can be uncertain, and in the event of a dispute regarding the title to the Company’s Mexican properties, it will likely be necessary for the Company to resolve the dispute in Mexico, where it would be faced with unfamiliar laws and procedures.
Risk Factors—Regulatory Risks—Title to mineral properties can be uncertain and disputes regarding the title to the Company’s Mexican properties require the Company to litigate such disputes in Mexico, where it faces unfamiliar laws and procedures .
A significant amount of the Company’s mining properties are subject to exchange control policies, the effects of inflation, and currency fluctuations between the U.S. dollar and the Mexican peso. The Company’s revenue and external funding are primarily denominated in U.S. dollars. However, certain mining, processing, maintenance, and exploration costs are denominated in Mexican pesos.
The Company’s revenue and external funding are primarily denominated in U.S. dollars. However, certain mining, processing, maintenance, and exploration costs are denominated in Mexican pesos. These costs principally include electricity, labor, water, maintenance, local contractors, and fuel.
Not like in the U.S., the Company may not be entitled to a jury trial. Further, to litigate in any foreign country, the Company would be faced with the necessity of hiring lawyers and other professionals who are familiar with the foreign laws.
Further, to litigate in Mexico, the Company is faced with the necessity of hiring lawyers and other professionals who are familiar with the Mexican laws. For these reasons, the Company may incur additional unforeseen costs to resolve its disputes in Mexico.
Any such loss, reduction, or imposition of partners could have a material adverse effect on the Company’s financial condition, results of operations, and prospects. Under the laws of Mexico, Mineral Resources belong to the United States of Mexico, and government concessions are required to explore for or exploit Mineral Reserves.
Any such loss, reduction, or imposition of partners could have a material adverse effect on the Company’s financial condition, results of operations, and prospects. A significant amount of the Company’s mining properties are subject to exchange control policies, the effects of inflation, and currency fluctuations between the U.S. dollar and the Mexican peso.
Removed
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.
Added
In connection with the Aquila acquisition, the Company acquired Aquila Resource Inc. which had substantial liabilities related to the Gold and Silver Stream Agreements with Osisko (now called OR Royalties Inc.) (the “Osisko Stream Agreements”).
Removed
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.
Added
Any interruption in the Company’s relationship with such customers could materially affect the Company’s operating results. During the year ended December 31, 2025, two customers accounted for 99% of the Company’s revenue from DDGM.
Removed
Such an event or events may disrupt an existing relationship with a refiner or smelter or result in the inability to create a contractual relationship with a refiner or smelter, which may leave the Company with limited, uneconomical, or no access to smelting or refining services for short or long periods of time.
Added
Furthermore, the Company’s operations in Mexico may be subject to increased political and security risks stemming from civic unrest. Incidents of high-profile civic unrest—including cartel-related violence, extortion, and threats to personnel and infrastructure—could disrupt operations, increase security-related expenditures, and pose risks to the safety of employees and contractors.
Removed
For these reasons, the Company may incur unforeseen costs if it is forced to resolve a dispute in Mexico or any other foreign country.
Added
The Company cannot predict what environmental legislation or regulations will be enacted or adopted in the future or how future laws and ​ Gold Resource Corporation 21 ​ ​ ​ Table of Contents ​ regulations will be administered or interpreted.
Removed
Risk Factors—Regulatory Risks—The Company’s ability to develop its Mexican properties is subject to the rights of the Ejido (agrarian cooperatives) who use or own the surface for agricultural purposes. The Company’s ability to develop its Mexican properties is subject to the rights of the Ejido (agrarian cooperatives), who use or own the surface for agricultural purposes.
Added
The Company’s ability to develop its Mexican properties is subject to the rights of the Ejido (agrarian cooperatives), and violations of such rights could result in the Company’s loss of title in the subject properties, which would have a materially adverse effect on the Company’s business and financials.
Removed
The Company’s ability to mine minerals is subject to maintaining satisfactory arrangements and relationships with the Ejido for access and surface disturbances. Ejidos are groups of local inhabitants who were granted rights to conduct agricultural activities on the property.
Added
In February 2020, a local Ejido community (who claim to be an indigenous community) filed an injunction against the Mexican federal government alleging failure to conduct a prior consultation before granting mining concessions and seeking cancellation of several concessions, including certain concessions granted to DDGM.
Removed
Risk Factors—General Risks— Global and regional political and economic conditions could adversely impact the Company’s business. Continuing increases in inflation could increase the costs of labor and other costs related to the business, which could have an adverse impact on the Company’s business, financial position, results of operations, and cash flows.
Added
A federal suspension was issued in February 2020 prohibiting certain mining activities on the named concessions.
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 decreased by 16.7% in 2024 and increased by 14.6% in 2023.
Added
DDGM’s operations are conducted ​ Gold Resource Corporation 22 ​ ​ ​ Table of Contents ​ on a concession that was not part of the original lawsuit, and DDGM does not presently perform such works in the concessions in lands of the indigenous community named in the injunction.
Removed
In addition, fluctuations in currency exchange rates may have a significant impact on the Company’s 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
The lawsuit is filed with the First District Courthouse in the state of Oaxaca and the case remains pending.
Removed
The Company cannot assure you that currency fluctuations, inflation, and exchange control policies will not have an adverse impact on its 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
If the lawsuit is successful, affected concessions, including the concession where DDGM currently operates, could be cancelled, and the Company would need to complete a consultation process and reapply for the concessions, which would have a materially adverse effect on its operations and financial condition. Please see Item 1A.
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
Title to mineral properties can be uncertain and disputes regarding the title to the Company’s Mexican properties require the Company to litigate such disputes in Mexico, where it faces unfamiliar laws and procedures. The Company’s ability to explore and operate its properties depends on the validity of its title to that property.
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 the Company’s business, financial condition, and results of operations.
Removed
Gold Resource Corporation 22 ​ ​ ​ Table of Contents ​ Risks Related to the Company’s Common Stock Volatility in the Company’s stock price could result in shareholders losing part or all of their investment.
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 the Company’s common stock, including divergence between its actual or anticipated financial results and published expectations of analysts or the expectations of the market, the gain or loss of customers, announcements that the Company, its competitors or its customers may make regarding their operating results and other factors that are beyond the Company’s control, such as market conditions in the Company’s or its customers’ industry, new market entrants, technological innovations, and economic and political conditions or events.
Removed
Stock markets in general have experienced extreme price and volume fluctuations, and the market prices of individual securities have been highly volatile. These fluctuations are often unrelated to operating performance and may materially adversely affect the market price of the Company’s common stock. As a result, shareholders may be unable to sell their shares at a desired price.
Removed
Past payments of dividends on the Company’s common stock are not a guaranty of future payments of dividends. In 2010, the Company began paying cash dividends to the holders of its common stock.
Removed
However, the Company’s 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.
Removed
Further, a portion of the Company’s cash flow is expected to be retained to finance operations, explorations, and development of mineral properties. In February 2023, in order to conserve cash for future development and exploration, the Company announced the suspension of quarterly dividends.
Removed
There is no assurance that the Board will elect to re-institute a dividend payment in the near-term or at all. Issuances of the Company’s stock in the future could dilute existing shareholders and materially adversely affect the market price of its common stock.
Removed
The Company has 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 its common stock, in some cases without shareholder approval. As of April 4, 2025, there were 120,442,686 shares of common stock outstanding.
Removed
Future issuances of the Company’s securities could be at prices substantially below the price paid for its common stock by current shareholders. The Company can issue significant blocks of its common stock without further shareholder approval.
Removed
Because it has issued less common stock than many of its larger peers, the issuance of a significant amount of common stock may have a disproportionately large impact on share price compared to larger companies.
Removed
General Risks The Company has identified a material weakness in its internal control over financial reporting that has resulted in the restatement of certain previously issued financial statements.
Removed
If the Company is unable to remediate the material weakness, or if it identifies additional material weaknesses in the future or otherwise fails to maintain effective internal control over financial reporting or disclosure controls and procedures, it may result in future material misstatements of the Company’s consolidated financial statements or cause the Company to fail to meet its periodic reporting obligations, which may adversely affect the Company’s business, financial condition, and results of operations.
Removed
The Company is required to provide management’s attestation on internal controls. As disclosed in

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

7 edited+1 added−274 removed10 unchanged
Biggest changeThe 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.
Biggest changeThe 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.
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.
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 66 ​ ​ Table of Contents ​ ​
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 price of the Company’s common stock has been volatile in the past and may also be volatile in the future.
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).
Future fluctuations may give rise to foreign currency exposure, which may affect the Company’s financial results. Approximately 40% to 50% of expenses are paid in currencies other than the U.S. dollar.
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.
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. Financial Statements—Note 16.
Provisional 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.
However, the Company may, in the future, actively manage its exposure to foreign currency exchange rate risk. Provisional 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.
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.
Derivatives for additional information. Interest Rate Risk The Company considers its interest rate risk exposure to be insignificant at this time. 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.
Removed
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.
Added
Gold Resource Corporation—Management’s Discussion and Analysis of Financial Condition and Results of Operations 65 ​ ​ Table of Contents ​ As of December 31, 2025, the Company held approximately 0.6 million Mexican pesos (or $32,000) and approximately 18,000 Canadian dollars (“C$”) (or $13,000). The Company has not utilized market-risk sensitive instruments to manage its exposure to foreign currency exchange rates.
Removed
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”).
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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”).
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
We have served as the Company's auditor since 2022.
Removed
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.
Removed
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.
Removed
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.
Removed
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”).
Removed
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.
Removed
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.
Removed
Segment Reporting below for additional information. Use of Estimates The preparation of financial statements in conformity with U.S.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
Cash held in Mexican pesos or Canadian dollars is converted to U.S. dollars at the closing exchange rate at year end.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
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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.
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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.
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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.
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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.
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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.
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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 .
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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.
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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.
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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.
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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.
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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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Treasury Stock Treasury stock represents shares of the Company’s common stock which have been repurchased on the open market at the prevailing market price at the time of purchase and have not been canceled. Treasury stock is shown at cost as a separate component of shareholders’ equity. Revenue Recognition The Company recognizes revenue from doré and concentrate sales.
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Doré sales : Doré sales are recognized upon the satisfaction of performance obligations, which occurs upon delivery of doré and when the price and quantity are agreed with the customer. Doré sales are recorded using quoted metal prices, net of refining charges.
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Concentrate sales : Concentrate sales are initially recorded based on 100% of the provisional sales prices, net of treatment and refining charges, at the time of delivery to the customer, at which point the performance obligations are satisfied and control of the product is transferred to the customer.
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Adjustments to the provisional sales prices are made to take into account the mark-to-market changes based on the forward prices of metals until final settlement occurs. The changes in price between the provisional sales price and final sales price are considered an embedded derivative that is required to be separated from the host contract for accounting purposes.
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The host contract is the receivable from the sale of the concentrates at the quoted metal prices at the time of delivery. The embedded derivative, which does not qualify for hedge accounting, is adjusted to market through revenue each period prior to final settlement.
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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.
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These charges are estimated upon delivery of concentrates based on contractual terms and adjusted to reflect actual charges at final settlement, which normally occurs within three months. Historically, actual charges have not varied materially from the Company’s initial estimates.
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Production Costs Production costs include labor and benefits, royalties, concentrate and doré shipping costs, mining costs, fuel and lubricants, legal and professional fees related to mine operations, stock-based compensation attributable to mine workers, materials and supplies, repairs and maintenance, explosives, site support, housing and food, insurance, reagents, travel, medical services, security equipment, office rent, tools, and other costs that support mining operations.
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Exploration Costs Exploration costs are charged to expense as incurred. Costs to identify new Mineral Resources and to evaluate potential Mineral Resources are considered exploration costs. Exploration activities conducted within the defined Mineral Resources are capitalized. Stock-Based Compensation The Company accounts for stock-based compensation under the fair value recognition and measurement provisions of U.S. GAAP.
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Those provisions require all stock-based payments, including grants of stock options, restricted stock units Gold Resource Corporation 77 Table of Contents ​ (“RSUs”), performance share units (“PSUs”), and deferred share units (“DSUs”) to be measured based on the grant date fair value of the awards, with the resulting expense generally recognized on a straight-line basis in the Consolidated Statements of Operations over the period during which services are performed in exchange for the award.
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The majority of the awards are earned over a service period of three years. DSUs are earned immediately at grant and are expected to be paid out in cash in the future. PSUs and DSUs are considered liability instruments and marked-to-market each reporting period.

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