Gold Resource Corporation Announces Strong Financial Results and Strong Balance Sheet for the First Quarter of 2022

• Cash balance of $31.2 million

• Net income of $4.0 million, or $0.05 EPS

• Revenue of $45.4 million

DENVER, May 09, 2022–(BUSINESS WIRE)–Gold Resource Corporation (NYSE American: GORO) (the “Company”) sold a total of 8,381 ounces of gold and 265,407 ounces of silver in the first quarter of 2022 for an equivalent total- 11,729 oz gold. In addition, the Company sold 4,359 tons of zinc, 408 tons of copper and 1,639 tons of lead.

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Dry-Pile Tailings Filtration Plant (Photo: Business Wire)

Allen Palmiere, President and Chief Executive Officer, said, “Our operations delivered excellent results in the first quarter of 2022. Quarter-over-quarter processing costs per ton remained stable despite a hyper environment. inflationary. Similarly, we reinvested $7.1 million in exploration and infrastructure improvements at the Don David Gold Mine during the quarter. An additional $1.1 million was invested to advance the feasibility study and licensing initiatives for the Back Forty project in Michigan. Our investments in Mexico and Michigan aim to positively impact our environmental, social and governance programs while creating efficiencies and longevity.”

HIGHLIGHTS OF Q1 2022

Additional highlights for the first quarter ended March 31, 2022 are summarized below:

Strategic

• For the eighth consecutive year, the Don David Gold Mine has won the prestigious Empresa Socialmente Responsable (“ESR”) award from the Mexican Center for Philanthropy (CEMEFI). Awards are given to organizations that demonstrate a commitment to supporting social and environmental protection programs within their local communities.

• During the quarter, the Company purchased and processed one thousand tonnes of tailings from a nearby community to ensure proper environmental treatment and storage of materials.

• Patrick Frenette was hired as Vice President, Technical Services and Steve Donohue was seconded as Vice President, Environmental and Regulatory Affairs (Michigan) to further de-risk the successful delivery of the Optimized Feasibility Study and permit applications for the Back Forty project.

• $0.9 million was distributed in dividends to shareholders this quarter, totaling $120.3 million since 2010.

The story continues

Operational

Financial

• Working capital was $32.4 million as of March 31, 2022, $3.1 million higher than December 31, 2021. The increase is primarily due to an increase in accounts receivable due to higher base metal prices and the shipping schedule in March.

• Total cash cost for the quarter was $(121) per gold equivalent ounce (“AuEq”) (after co-product credits) and total all-in sustaining cost for the quarter was $499 per ounce AuEq (after co-product credits). Both non-GAAP measures were favorably impacted by co-product credits for base metals.¹

Trending Highlights

Summary of 2022 Capital and Exploration Investments

The Company’s investment in Mexico continued in Q1 2022 for a total of $7.1 million. Our investment in Mexico aims to positively impact our environmental, social and governance programs while creating operational efficiency and longevity. Since the beginning of the year, at the Back Forty project, $1.1 million has been invested in feasibility and permitting initiatives.

Gold regrind project: Regrinding of zinc tailings is expected to increase gold recovery by 6% to 10%. The reground material will be leached to produce gold bars. Completion and commissioning are expected in the second quarter of 2022. As of March 31, 2022, a total of $1.6 million has been invested in this project, $1.1 million in 2021. Another 0.2 million dollars should be spent before completion.

Dry Tailings Storage Project: The construction of the water filtration plant and the dry tailings ponds was completed in 2021. During the first quarter of 2022, work continued to optimize the operations of the filtration plant. Until March 2022, 15,499 tons of residues have been treated in the plant. The dry stack facilities will conserve and recirculate water, eliminate the risks associated with traditional tailings facilities, accelerate the reclamation of certain areas of the open pit mine and extend the life of operations. Dry-piled tailings will accelerate the reclamation of certain areas of the open pit mine, extend the life of operations and reduce water consumption, as approximately 80% of process water will be available for reuse . As of March 31, 2022, a total of $14.8 million has been invested in this project, $14.0 million through 2021.

Underground development and exploration: Mine development during the quarter included ramps and access to various areas of the deposit and exploration development drifts. A total of 1,094 meters of development, at a cost of $2.4 million, were completed during the quarter. Underground mine development was $1.6 million and exploration development was $0.8 million (included in infill drilling and exploration development in the table above ). We plan to invest a total of $8.5-9.5 million in underground development and an additional $4.0-4.5 million in exploration development in 2022.

Back Forty Feasibility and permits: Work on the Optimized Feasibility Study progressed during the first quarter of 2022. Current initiatives are focused on mine planning and processing plant design. Environmental considerations are a key factor in the overall site layout and infrastructure decisions made. The feasibility study is expected to be released in the second half of 2022, followed by permit applications submitted to Michigan state agencies.

First Quarter 2022 Conference Call

The Company will host a conference call tomorrow, Tuesday, May 10, 2022 at 11:00 a.m. Eastern Time.

The conference call will be recorded and posted on the Company’s website later in the day following the conclusion of the call. Following the prepared remarks, Allen Palmiere, President and CEO, Alberto Reyes, Chief Operating Officer, and Kim Perry, Chief Financial Officer will host a live Q&A session. There are two ways to join the conference call.

To join the conference by webcast, please click on the following link:
https://app.webinar.net/DG5l9rQ3r7X

To join the call by phone, please use the following login information:
Toll free for participants: (888) 440-2094
International: (438) 803-0544
Conference ID: 2818458

Please connect to the conference call at least 10 minutes before the start time using one of the connection options listed above.

About RCMP:

Gold Resource Corporation is a gold and silver producer, developer and explorer with operations centered on the Don David Gold Mine in Oaxaca, Mexico. Led by an experienced Board of Directors and management team, the company’s goal is to unlock the significant growth potential of its existing infrastructure and extensive land surrounding the mine in Oaxaca, Mexico. , and to develop the Back Forty project in Michigan, USA. For more information, please visit GRC’s website, located at www.goldresourcecorp.com and read the company’s Form 10-K to understand the risk factors associated with its business.

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contacts

Kim Perry
Financial director
[email protected]
www.GoldResourcecorp.com