DENVER--(BUSINESS WIRE)--November 04, 2025--
Gold Resource Corporation (NYSE American: GORO) (the "Company") is pleased to announce its third quarter operational results from its Don David Gold Mine ("DDGM") near Oaxaca, Mexico.
"I'm pleased to report that we are beginning to see encouraging signs of a turnaround at the Don David Gold Mine in Mexico," said Allen Palmiere, President and CEO. "We've started receiving some of the gently used equipment that we ordered, and it is already operational within the mine. Development work by Cominvi is progressing according to plan in the Three Sisters area, and we're particularly encouraged by results which continue to validate our expectations of favorable vein widths and higher precious metal grades. Additionally, our transition to the cut-and-fill mining method in certain narrow vein areas has significantly reduced dilution. We are encouraged that these improvements are already yielding positive results, and we anticipate continued progress moving forward."
Don David Gold Mine:
-- In the third quarter of 2025, DDGM, located in Mexico, produced and sold
a total of 6,298 gold equivalent ("AuEq") ounces, comprised of 1,422 gold
ounces and 417,710 silver ounces, at an average sales price per ounce of
$3,546 and $41.39, respectively.
-- By the end of the third quarter, the Company began receiving newly
acquired equipment and, when combined with the strategic use of
third-party contractors, this enabled an increase in available headings
and a subsequent improvement in production.
-- Underground grade control and infill drilling advanced as planned at the
Three Sisters vein system, focused on the Sandy and Sadie vein sets.
Results from this work continue to refine and validate the geologic model,
supporting near-term production planning. Additional drilling targeted
the Splay 31, Marena North, Candelaria, and Viridiana veins in the Arista
system, and the Soledad South vein in the Switchback system. These
programs aim to optimize economic returns from near-term production
across multiple vein systems. Underground exploration drilling remains on
hold, with step-out targets at Three Sisters and Arista planned for
future drill testing following completion of necessary development and
improvements in the Company's working capital position.
Corporate and Financial:
-- The Company has $12.8 million in working capital and $9.8 million in cash
and cash equivalents as of September 30, 2025.
-- On September 8, 2025, the Company closed on a $11.4 million registered
direct offering for the sale of 25,315,954 shares of the Company's common
stock at a price of $0.45 per share. The Company issued 14,204,846 of
these shares, for the fair value of approximately $6.4 million, to fully
pay off the term loan received in June 2025 as a non-cash equity
settlement.
-- The Company had a net loss of $4.7 million, or $0.03 per share, for the
quarter, which was primarily the result of lower tonnes produced and less
ounces sold. Early in the quarter, output was constrained by limited
access to critical mining equipment, stemming from an aging fleet, and by
a shortage of alternative ore production headings, but by the end of the
third quarter, as mentioned above, the Company made improvements to
overcome some of these challenges, and thus increased production.
-- Total cash cost after co-product credits for the quarter was $2,116 per
AuEq ounce, and total all-in sustaining cost ("AISC") after co-product
credits for the quarter was $2,983 per AuEq ounce. (See Item
2--Management's Discussion and Analysis of Financial Condition and
Results of Operations--Non-GAAP Measures for a reconciliation of non-GAAP
measures to applicable U.S. GAAP measures).
Liquidity Update:
Tonnes produced from the mining operations at DDGM year-to-date 2025 remain lower than in the previous year and, except for silver, grades were lower as well. The Company continued to encounter significant issues with equipment availability partway into the third quarter due to the age and condition of some of the critical mining equipment in use at the mine. Due to the challenges with equipment availability, the Company was not able to maintain its projected timeline for mine development and had limited flexibility to mine alternate headings. In addition, the mill continued to experience mechanical issues that resulted in lower throughput, and when combined with the lower tonnes mined, resulted in a production shortfall. To minimize the mechanical issues and return the mine to a cash positive position, the Company engaged a third-party contract miner during the third quarter of 2025 and started to upgrade its mining fleet. As a result, by the end of the third quarter, the Company was able to increase production from a number of production headings.
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 is in the process of developing access to and drill-defining these new areas. With the improvements mentioned above, the Company is expecting the remaining months of 2025 to result in positive operating income.
In 2025, the Company has been focused on improving its cash position through the issuance of debt and equity. The Company raised $2.5 million through a registered direct offering in January 2025. In September 2025, the Company closed on a second registered direct offering of $11.4 million for the sale of 25,315,954 shares of the Company's common stock at a price of $0.45 per share. The Company issued 14,204,846 of these shares, for the fair value of approximately $6.4 million, to fully pay off the term loan received in June 2025 as a non-cash equity settlement. In February 2025, the Company sold its interest in Green Light Metals for $0.9 million in proceeds. On May 7, 2025, the Company received a tax refund of 79.6 million pesos (approximately $4.0 million) related to DDGM taxes paid in 2023. During the nine months ended September 30, 2025, the Company raised approximately $8.6 million through its At-The-Market Offering ("ATM") Program, after deducting the agent's commissions and other expenses.
Although the Company has significantly improved its financial position year to date, the lower production and grades from the mine through the third quarter of 2025 raise substantial doubt about the Company's ability to continue as a going concern, as reflected by the year-to-date net losses of $24.5 million and the cash used in operations of $2.5 million. Although the Company believes that there is adequate financing in place to cover the planned underground development and equipment improvements, there can be no assurances that the Company will achieve short-term production targets and therefore may continue with liquidity concerns.
2025 Sustaining and Growth Investments Summary
For the nine months ended
September 30, 2025
2025 2024
---------------- -------------
Sustaining Investments:
Underground Development $ 2,621 $ 3,812
Other Sustaining Capital 2,170 2,711
Infill Drilling 670 977
Surface and Underground Exploration
Development & Other 602 65
------------ ---------
Subtotal of Sustaining Investments: 6,063 7,565
------------ ---------
Growth Investments:
DDGM growth:
Surface Exploration / Other 1,649 1,812
Underground Exploration Drilling - 38
Underground Exploration Development 6,584 -
Back Forty growth:
Back Forty Project Optimization &
Permitting 562 524
------------ ---------
Subtotal of Growth Investments: 8,795 2,374
------------ ---------
Total Capital and Exploration: $ 14,858 $ 9,939
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2024 2025
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Operating Data
Total tonnes
milled 98,889 93,687 83,690 80,367 56,906 63,479 65,131
Average Grade
Gold (g/t) 1.89 1.27 0.54 0.64 0.70 0.56 1.11
Silver (g/t) 88 102 83 94 169 115 250
Copper (%) 0.37 0.26 0.19 0.20 0.18 0.13 0.16
Lead (%) 1.25 1.00 1.01 1.12 0.72 0.88 0.63
Zinc (%) 2.82 2.59 2.63 2.73 1.68 2.72 1.57
Metal production
(before payable
metal
deductions)
Gold (ozs.) 4,757 2,947 944 1,258 903 758 1,646
Silver (ozs.) 251,707 263,023 194,525 210,581 257,285 196,435 453,057
Copper (tonnes) 280 181 93 88 54 50 73
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November 04, 2025 18:54 ET (23:54 GMT)