In 2021, the company produced and sold 22,644 ounces of gold, 1,066,581 ounces of silver, 1,420 tons of copper, 5,999 tons of lead and 13,553 tons of zinc.
Gold Resource Corporation (NYSE-A:GORO, ETR:GIH), the Mexico-focused producer, said it ended 2021 with a strong cash balance of $33.7 million after producing and selling 22,644 ounces of gold, 1,066,581 ounces of silver, 1,420 tons of copper, 5,999 tons of lead and 13,553 tons of zinc during the year.
For the year ended Dec. 31, 2021, the Denver-based gold and silver producer, whose operations are centered on the Don David gold mine in Oaxaca, Mexico, reported revenue of $125.2 million. Net profit was $8 million, with a gross mine profit of $36.7 million from operations.
The company noted that it has successfully implemented profit sharing with its employees. Meanwhile, $3.4 million was reportedly paid out in dividends to shareholders during the year, totaling more than $119 million in dividends since 2010.
READ: Gold Resource Corp ends 2021 with $34 million in cash; reaches the high end of the exit tips
Gold Resource said it invested $25.5 million in its flagship Don David gold mine. In a statement, Gold Resource CEO Allen Palmiere said, “Our operations have delivered excellent results in a year of transformation. We reinvested $6.6 million in exploration and infrastructure improvements at the Don David gold mine during the fourth quarter, bringing our year-to-date investment to $25.5 million .
The company said it aims to continue to unlock the “growth potential” of its existing infrastructure and extensive land position around the Don David gold mine. It plans to make “significant investments” for infrastructure and exploration in 2022, he added.
The company recently announced encouraging results from its exploration program at the Don David gold mine. Vein structures have been confirmed up to 250 meters (m) above the current producing zone and drilling has confirmed the potential for down dip extension of the Switchback vein system.
Palmiere said, “Our investment in Mexico aims to positively impact our environmental, social and governance programs while creating operational efficiencies and longevity. Construction of the filter press plant and dry tailings facilities is now complete. The dry stack facilities will conserve and recirculate water, eliminate the risks associated with traditional tailings management facilities, accelerate open pit mine reclamation and extend the life of operations.
He noted that the company’s “strong operating cash flow per share and dividend yield” place the company among the best in its peer group, which “is not currently reflected in our stock price. “.
Gold Resource also plans to invest “significant capital” in a feasibility study, permitting and exploration of its Michigan, US-based Back Forty project this year. The company completed the acquisition of all shares of Aquila Resources Inc (TSX:AQA) on December 10, through which it acquired Aquila’s main asset, the polymetallic (gold, silver, copper, silver, lead and zinc) Back Forty project.
Contact author Uttara Choudhury at [email protected]
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