2024 ANNUAL REPORT
FORM 10K
C O R P O R A T I O N
Letter to Shareholders
Dear Shareholders,
While 2024 presented a number of significant challenges at our Don David Gold Mine in
Mexico, we implemented some operational efficiencies, improved some incremental
cost controls, and further prioritized projects and initiatives that are necessary for us to
achieve future higher margin, long-term production targets. Amongst the most
outstanding achievements for the year must be our team’s resilience, dedication, and
the resulting Net-Zero Lost Time Injury record.
With a year of tighter capital markets and limited available financing, we focused much of
our capital on delineating higher-grade resources in our Three Sisters vein system, with the
hope that it could lead to higher margin reserves in the future. To access this area,
development capital is required to replace some of our aging mining fleet and to add a third
filter press to our processing plant. We are optimistic of our potential to secure sufficient
financing alternatives to reach this objective.
Our Board has remained small and dedicated to the task at hand, including a continued
focus on safety and corporate governance. There were no changes to our management
compensation policies, and we will continue to take measures to limit both cash and stock-
based compensation and capital dilution during periods of lower share price performance.
Furthermore, we have added new and active investors who are very much focused on the
same objectives and are familiar with the jurisdiction in which we operate. This we hope
will parlay into stronger local and political support in order to unlock the potential organic
growth of our resources from the large exploration land package surrounding Don David.
We will strive to maintain a safe, fair, and diversified workplace, along with our attention to
environmental stewardship and contributions to our local communities. Our efforts remain
fully committed to maintaining a disciplined balance sheet with a focus on improving our
near-term production targets, while we rebuild towards a higher margin production profile
for the future. We are grateful for our dedicated local workforce and the support of their
communities, in addition to that of shareholders and stakeholders.
Kind regards,
Ron Little
Interim Chair, Gold Resource Corporation
Dear Shareholders,
As the President and Chief Executive Officer of Gold Resource Corporation, I remain very
proud of our 2024 achievements and the efforts by our team on progressing our objectives
during the year despite operating in a very challenging environment in many respects. We
found 2024 to be a perfect storm for us. We experienced back-to-back hurricanes, political
road blockades, and a volatile market that impacted metal prices, production, capital costs,
and the execution of our strategic objectives, including financing. Other contributing factors
that resulted in the Company’s unfavorable performance as compared to original guidance for
the year included low ore grades realized in the Arista and Switchback extremities, equipment
constraints, and limited working faces.
To provide further context on our 2024 performance, three years ago, we realized that we
were facing two significant problems: our equipment fleet was wearing out and productivity
was suffering. Our reserves and resources had declined to the point where we couldn’t justify
the capital to upgrade the fleet and so we decided to focus all available capital into
exploration to increase the quality and quantity of our reserves. Fortunately, we were
successful and discovered a new system named Three Sisters. This new system is relatively
close to surface and close to the current mine entrance, which we expect to result in lower
mining costs through reduction of development cost and time. Due to the higher-grade
orebody and wider mineralized zones that we are currently projecting in this system, this
should allow for efficient mining and return excellent value in terms of production. Lastly,
Three Sisters provides for enhanced operational flexibility and thereby, offers alternatives to
the overall mining sequence.
As we progressed through 2024, the team assessed the impacts of these above noted
challenges along with other bottlenecks to our current and future operations. During the
second half, we initiated planning or a roadmap as to how to best execute our strategy
starting this year that includes (1) engaging a contractor to develop and produce from Three
Sisters, which will allow for improved mining efficiency and a balanced production strategy
along with equipment and personnel availability or utilization, (2) purchasing a mining fleet to
address mechanical availability and to improve productivity, and (3) adding a third filter for
our tailings filter plant and eliminating the constraint on mill throughput, which will
eventually increase production closer to 1,500 tonnes per day and improve profitability.
A few highlights experienced in 2024 include achievement of Zero Lost Time Injuries, which
reflects the collective commitment by our team to maintain a safe and secure workplace. The
team made a number of significant operational improvements, including improvements to
drilling and blasting practices that resulted in a reduction in mining costs and dilution.
Further, the processing plant reduced filter press cycling times, minimizing grinding media
consumption and increasing the solid percentage of our tails.
Letter to Shareholders
In closing, I remain very optimistic and excited about our future. We hold a high
value asset with an increased mine life, in a market that has become much more
focused on the production of precious and base metals. All of this sets a pathway for
future positive returns for our stakeholders.
Kind regards,
Allen Palmiere
President & CEO, Gold Resource Corporation
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