- Gold Resource Corporation (GORO, Financial) reports operational and financial challenges for 2024, with declining production and cash reserves.
- The company needs approximately $15 million in additional funding to sustain operations and develop new mining areas.
- Without securing additional capital, operations at Don David Gold Mine may no longer be viable beyond the first half of 2025.
Gold Resource Corporation (GORO) has disclosed its financial results for 2024, highlighting significant operational and financial hurdles at its Don David Gold Mine in Mexico. The company reported a total production of 18,580 gold equivalent ounces, which included 8,598 gold ounces and 817,333 silver ounces. The gold and silver were sold at an average price of $2,354 and $28.75 per ounce, respectively.
Key financial indicators reveal a downturn in the company's condition. As of December 31, 2024, Gold Resource's cash balance decreased to $1.6 million, a $4.6 million drop year-over-year. The working capital also declined 86% to $2.1 million, primarily due to decreased gold production and increased costs.
Significant challenges have affected production levels, including aging equipment, restricted access to high-grade zones, and impacts from an unusually prolonged rainy season. These issues have resulted in all-in sustaining costs reaching an unsustainable $2,939 per gold equivalent ounce.
In order to continue its operations, the company requires approximately $15 million in additional funding. This includes $7 million earmarked for essential equipment and mill upgrades, and $8 million for working capital to develop the promising Three Sisters vein, which is expected to extend the mine's life and improve margins.
While GORO raised $6.4 million through direct offerings and an ATM program in early 2025, this falls short of the immediate capital required. The company remains focused on securing further financing to maintain its operations beyond the first half of 2025, as well as exploiting the newly discovered Three Sisters vein system.
