Gold Resource Corporation (GRC) reported a net loss of $8.3 million, or $0.07 per share, for the first quarter of 2025, a significant increase from the net loss of $5.7 million, or $0.06 per share, recorded in the same period of 2024. The company's revenue for the quarter was $12.4 million, down 34% from $18.7 million in the prior year, primarily due to lower production volumes and challenges related to equipment availability. The total cash cost after co-product credits was $2,494 per gold equivalent ounce, compared to $1,667 in the first quarter of 2024, reflecting increased operational costs amid declining production.
Production at the Don David Gold Mine (DDGM) in Mexico was notably impacted, with total gold equivalent production falling to 3,394 ounces, comprised of 859 gold ounces and 230,320 silver ounces. This represents an 81% decrease in gold production compared to the previous year, attributed to the aging mining fleet and limited operational capacity. The average sales prices for gold and silver increased to $2,956 and $32.54 per ounce, respectively, which partially offset the decline in production volumes.
Operationally, GRC faced significant challenges, including mechanical issues with the mill and limited availability of critical mining equipment, which hindered the company's ability to achieve production estimates. The company is currently mining only one face at a time due to these constraints, which has created additional pressure on production capabilities. As a result, GRC has identified the need for approximately $7 million to upgrade its mining fleet and mill, alongside an estimated $8 million in working capital to fund initial development efforts for new mining areas.
In terms of liquidity, GRC reported working capital of $6.2 million as of March 31, 2025, a substantial increase from $2.1 million at the end of 2024. This improvement was driven by $5.5 million in cash inflows from financing activities, including a registered direct offering and sales through its At-The-Market (ATM) program. However, the company continues to evaluate various financing options to address its working capital needs and operational challenges. The outlook remains cautious, with management indicating that if additional capital is not secured, the continued operation of the mine may not be feasible beyond the third quarter of 2025.
About GOLD RESOURCE CORP
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