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Gold Resource (GORO) - 2023 Q2 - Quarterly Report

Financial Performance - Net sales for the three months ended June 30, 2023, were 24,807,000,adecreaseof32.924,807,000, a decrease of 32.9% compared to 37,064,000 for the same period in 2022[15]. - The company reported a net loss of 4,584,000forthethreemonthsendedJune30,2023,comparedtoanetincomeof4,584,000 for the three months ended June 30, 2023, compared to a net income of 2,673,000 for the same period in 2022[15]. - For the six months ended June 30, 2023, the company reported a net loss of 5.619millioncomparedtoanetincomeof5.619 million compared to a net income of 6.692 million for the same period in 2022[25]. - Total sales for the six months ended June 30, 2023, were 56.035million,downfrom56.035 million, down from 82.481 million in 2022, representing a decline of approximately 32%[31]. - Mine gross profit decreased by 25.6million,or9425.6 million, or 94%, for the six months ended June 30, 2023, primarily due to a 26.4 million decrease in net sales[161]. - The company recorded a net loss of 5.6millionforthesixmonthsendedJune30,2023,comparedtonetincomeof5.6 million for the six months ended June 30, 2023, compared to net income of 6.7 million during the same period in 2022[165]. Assets and Liabilities - Total assets decreased from 204,171,000asofDecember31,2022,to204,171,000 as of December 31, 2022, to 191,072,000 as of June 30, 2023, representing a decline of approximately 6.4%[13]. - The company's retained earnings decreased from 7,706,000asofDecember31,2022,to7,706,000 as of December 31, 2022, to 2,087,000 as of June 30, 2023, reflecting a decline of approximately 72.9%[13]. - Total current liabilities decreased from 24,682,000asofDecember31,2022,to24,682,000 as of December 31, 2022, to 19,115,000 as of June 30, 2023, a reduction of about 22.5%[13]. - Total current assets as of June 30, 2023, were 39,962,000,adecreasefrom39,962,000, a decrease from 46,099,000 as of December 31, 2022, representing a decline of approximately 13.5%[108]. - Total shareholders' equity as of June 30, 2023, was 106,701,000,adecreasefrom106,701,000, a decrease from 111,764,000 as of December 31, 2022, reflecting a decline of approximately 4.5%[108]. Cash Flow and Investments - Net cash provided by operating activities decreased significantly to 473thousandfrom473 thousand from 12.206 million in the prior year[25]. - As of June 30, 2023, cash and cash equivalents were 17.957million,downfrom17.957 million, down from 33.335 million at the end of the previous year[25]. - The investment in Maritime Resources Corp. was valued at 1.4millionasofJune30,2023,downfrom1.4 million as of June 30, 2023, down from 1.6 million at the end of 2022, representing a 12.8% decrease[42]. - The value of the investment in Green Light Metals was 3.7millionasofJune30,2023,comparedto3.7 million as of June 30, 2023, compared to 3.6 million as of December 31, 2022, reflecting a 2.8% increase[45]. Production and Operational Metrics - Gold production in Q2 2023 was 4,637 ounces, down 50% from 9,317 ounces in Q2 2022[130]. - Silver production increased by 16% to 289,816 ounces in Q2 2023 compared to 249,088 ounces in Q2 2022[130]. - Total tonnes milled in Q2 2023 were 113,510, a 12% decrease compared to Q2 2022[130]. - Gold equivalent ounces sold decreased to 7,689 oz in Q2 2023 from 11,475 oz in Q2 2022, representing a 32.4% decline[202]. Costs and Expenses - Total cost of sales decreased by 2% to 54.3millionforthesixmonthsendedJune30,2023,primarilyduetoa54.3 million for the six months ended June 30, 2023, primarily due to a 1.6 million decrease in production costs[160]. - General and administrative expenses increased by 11% to 2.1millionforthethreemonthsendedJune30,2023,comparedto2.1 million for the three months ended June 30, 2023, compared to 1.9 million for the same period in 2022[167]. - Total cash cost after co-product credits per AuEq oz sold increased to 1,333forthethreemonthsendedJune30,2023,from1,333 for the three months ended June 30, 2023, from 247 in the same period of 2022, attributed to lower co-product credits and a 33% decrease in AuEq ounces sold[183]. - Total consolidated all-in sustaining cost after co-product credits per AuEq oz sold rose to 1,990forthethreemonthsendedJune30,2023,comparedto1,990 for the three months ended June 30, 2023, compared to 805 for the same period in 2022[184]. Future Outlook and Strategic Initiatives - The company suspended future quarterly dividends on February 13, 2023, to protect its balance sheet and focus on exploration and growth opportunities[18]. - The exploration focus for 2023 includes the Three Sisters and Gloria vein systems, with ongoing drilling aimed at expanding mineral reserves and resources[124]. - Work on optimizing feasibility for the Back Forty Project is ongoing, with current initiatives focused on finalizing financial models and considering environmental factors[195]. - The company has implemented several operational initiatives resulting in cost savings and improved efficiencies, partially offsetting increased costs due to currency fluctuations[115].