Gold Resource Corporation (GRC) is a mining company focused on exploration, development, and production of gold, silver, and base metals in Mexico and the United States.

# Company Summary: Gold Resource Corporation

## Business Overview
- **Nature of Business**: Gold Resource Corporation (GRC) is a mining company focused on the exploration, development, and production of gold, silver, and base metals (copper, lead, zinc). It operates in Mexico and the United States.
- **Main Operations**:
  - **Mexico**:  
    - **Don David Gold Mine (DDGM)** in Oaxaca, Mexico, consisting of 6 properties:
      - 2 Production Stage Properties (Arista and Alta Gracia mines)
      - 4 Exploration Stage Properties (Rey, Chamizo, Margaritas, Fuego)
    - Produces gold, silver, copper, lead, and zinc concentrates and doré bullion.
    - In 2024, produced 18,580 gold equivalent ounces, sold at an average price of $2,354 per ounce of gold.
  - **United States**:
    - **Back Forty Project**: Located in Michigan, USA; an advanced exploration stage polymetallic (gold, silver, copper, lead, zinc) volcanogenic massive sulfide deposit.
    - Acquired through a merger with Aquila Resources Inc in December 2021.
    - Optimization work completed in October 2023 indicating a more robust project with environmental protections; no current production but ongoing evaluations for development.

## Employees and Workforce
- **Employees at DDGM**: 465 employees as of December 31, 2024.
- **Corporate Employees**: 15 full-time corporate staff.
- **Michigan (Back Forty)**: 3 full-time employees dedicated to the project.

## Revenue and Financials (2024)
- **Total Revenue** (from DDGM): $65.7 million
- **Sales Volume**:
  - Gold ounces sold: 8,598
  - Silver ounces sold: 817,333
  - Copper: 641 tonnes
  - Lead: 2,173 tonnes
  - Zinc: 6,286 tonnes
- **Average Realized Prices**:
  - Gold: $2,354 per ounce
  - Silver: $28.75 per ounce
  - Copper: $9,223 per tonne
  - Lead: $2,034 per tonne
  - Zinc: $2,804 per tonne
- **Cash and Cash Equivalents**: $1.6 million as of December 31, 2024
- **Net Loss**: $56.5 million for 2024
- **Market Capitalization**: Market value of non-affiliate holdings: ~$34.1 million (as of June 30, 2024)
- **Shares Outstanding**: 120,442,686 shares as of April 4, 2025

## Key Operations and Focus
- Achieved zero lost time injury rate for the year at DDGM.
- Focused on infill drilling at Three Sisters and North Arista vein systems; exploration suspended in August 2024 to conserve cash.
- Experienced production challenges due to equipment availability, mechanical issues, and high rainfall.
- Exploring financing options, including raised $2.5 million via registered direct offering in January 2025 and $3 million through ATM program.
- Sold its interest in Green Light Metals for approximately $0.9 million in February 2025.
- Continues evaluating development of the Back Forty Project, with environmental and permitting work in progress.

## Business Risks Identified
- Operations dependent on commodity prices, which are volatile.
- Production shortfalls and equipment issues impact revenue.
- Heavily reliant on a few customers; three customers accounted for 91% of 2024 revenue.
- Financial sustainability challenged; substantial doubt about ongoing business viability without new capital.
- Exploration is highly speculative with uncertain future reserves.
- Permitting and regulatory risks, especially in Mexico and Michigan.
- Operational hazards typical of mining, including environmental, technical, and safety risks.
  
This summary encapsulates GRC’s core activities, operational scope, employment figures, revenue details, and financial health based on 2024 data, with specific focus on their two main mining operations and strategic acquisitions.

Gold Resource Corporation is a mining company that focuses on the exploration, development, and production of gold, silver, and base metals while adhering to sustainable practices to enhance shareholder value.

# Gold Resource Corporation Overview

**Company Name:** Gold Resource Corporation (GRC)  
**Location:** Headquartered in Denver, Colorado, USA, with operations primarily in Oaxaca, Mexico, and the Back Forty Project in Michigan, USA.

## Business Activities

Gold Resource Corporation is a mining company engaged in the exploration, development, and production of gold and silver, along with base metals such as copper, lead, and zinc. The company focuses on developing its mineral properties through sustainable mining practices to maximize shareholder value.

### Main Assets

1. **Don David Gold Mine (DDGM)** 
   - **Location:** Oaxaca, Mexico
   - **Properties:** The DDGM consists of six mineral properties located along the San Jose structural corridor, covering a total of 55 continuous kilometers. It includes two primary production stage properties:
     - **Arista Mine:** An underground mine that produces gold and silver doré, as well as metal concentrates.
     - **Alta Gracia Mine:** In active exploration, previously produced silver ore.
   - **Production Commencement:** 2010
   - **2023 Production Results:**
     - 20,328 ounces of gold
     - 1,142,138 ounces of silver
     - 1,287 tonnes of copper
     - 5,068 tonnes of lead
     - 13,513 tonnes of zinc

2. **Back Forty Project**
   - **Location:** Menominee County, Michigan, USA
   - **Asset Description:** A polymetallic (gold, silver, copper, lead, and zinc) Volcanogenic Massive Sulfide deposit. The project is in the optimization phase, with a Technical Report Summary filed in October 2023 highlighting its economic viability and environmental considerations.

## Financial Performance

- **2023 Revenue:** $97.7 million
- **2023 Net Loss:** $16.0 million (attributable mainly to inflation and currency fluctuations, particularly the strengthening of the Mexican Peso, affecting production and capital costs).
- **Mine Gross Loss for 2023:** $5.3 million

## Human Resources

- **Total Employees:** 507
  - **At DDGM:** 488 employees
  - **Corporate Office:** 16 full-time employees (including executive officers)
  - **In Michigan:** 3 full-time employees focused on the Back Forty Project

## Customer Base

- **Key Customers:** Three customers accounted for **98%** of GRC's revenue from the DDGM in 2023. 
- **Sales Structure:** GRC primarily sells its products in the form of doré and concentrates, with a focus on establishing relationships to mitigate customer concentration risks.

## Exploration and Development Focus

In 2023, exploration activities were concentrated on:
- Drilling programs at the **Arista** (168 drill holes) and **Switchback vein systems**.
- Strategic drilling planned for the **Gloria vein system** in 2024.
- Exploration activities aimed at expanding the resource base at both the Don David Gold Mine and the Back Forty Project.

## Environmental and Community Engagement

GRC actively engages in community relations and environmental protection, receiving an ESR award from the Mexican Center for Philanthropy for nine consecutive years in recognition of its commitment to social and environmental programs.

## Summary

Gold Resource Corporation is a responsible and growth-oriented mining company, committed to producing precious and base metals while balancing environmental stewardship and community engagement. Its ongoing exploration and optimization projects illustrate its strategy for sustainable growth and shareholder value.

GOLD RESOURCE CORP

10-K / April 8, 2025

10-K / March 28, 2024

10-K / April 8, 2025

Company Summary: Gold Resource Corporation

Business Overview

Employees and Workforce

Revenue and Financials (2024)

Key Operations and Focus

Business Risks Identified