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Gold Resource announces positive first-quarter results as earnings, revenue and cash increase

Last updated: 17:19 01 May 2018 EDT, First published: 09:04 01 May 2018 EDT

Gold bars
Cash and equivalents rose US$6.2mln

Gold Resource Corporation (NYSE:GORO) announced its first-quarter earnings after the bell on Tuesday.

The gold and silver producer reported earnings of US$0.10 per share on revenue of $32.2mln compared with US$0.08 EPS on revenue of US$24.3mln in the last year’s first quarter.

The company has US$28.6million in cash, an increase of US$6.2mln.

Gold Resource produced 6,647 gold ounces and 425,884 silver ounces.

READ: Gold Resource praises seventh consecutive year of profitability; updates mineral reserve at Oaxaca once again

In 2017, all of the production tonnage came from the Oaxaca Mining Unit, which consists of a group of six properties in the southern state of Oaxaca, Mexico, although it does operate in Nevada as well.

The Aguila project is the flagship operation and home to the Arista underground deposit – gold, silver, copper, lead and zinc – which accounted for 90% of production tonnage in 2017. The open pit mine at Aguila was responsible for about 8% of total production last year.

READ: Gold Resource shares higher as it expands Arista mineralisation; meets 2017 production targets

The Colorado-based company also has a second underground mine in operation known as the Mirador mine at the Alta Gracia project, which made up the remaining 2% of production tonnage.

In March, Gold Resource revealed an updated mineral reserve for Oaxaca.

Proven and probable reserves at Oaxaca now total 2.5mln tons grading 1.77 grams per ton (g/t) gold and 136 g/t silver. That equates to 142,400 gold ounces and almost 10.93mln silver ounces – a 32% year-on-year increase.

The company maintained its production outlook with a plus or minus 10% production of 27,000 gold ounces and 1.7 million silver ounces.

Shares of the company were up more than 3% to US$5.24 by the closing bell but were flat in pre-market trading.

Gold Resource CEO talks through operational changes to maximize...

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on 07/30/2021