Gold Resource (GORO) investor relations material

Executive summary

• Production in H1 2025 declined due to aging equipment and limited mining phases, with Q2 2025 gold equivalent output at 2,420 ounces and a net loss of $11.5 million.

• Management changes included a new COO and board member, with a focus on mine development, equipment upgrades, and operational improvements.

• Strategic initiatives include new equipment orders, a third dry stack filter press, and engaging a contractor to accelerate development.

• Cash management prioritized, with $21.3 million raised YTD 2025 through equity offerings, tax refund, and a $6.28 million loan.

• Positive momentum is building as key initiatives and exploration are underway, but substantial doubt remains about the ability to continue as a going concern.

Financial highlights

• Q2 2025 net loss was $11.5 million ($0.09 per share), with net sales of $11.2 million, down 46% from Q2 2024.

• Working capital at June 30, 2025, was $10.4 million; cash was $12.7 million.

• Total cash cost per AuEq ounce sold was $4,017; AISC was $5,458, both up sharply year-over-year.

• Mine gross loss for Q2 2025 was $4.4 million, up 22% from Q2 2024.

• Net loss for the six months ended June 30, 2025 was $19.8 million, compared to $32.7 million in the prior year period.

Outlook and guidance

• By year-end, 50% of production is expected from the Three Sisters vein, accelerating access to higher-grade ore.

• Transition to cut and fill mining method is expected to reduce dilution and costs, with benefits seen by Q3 end.

• Additional $7 million needed for equipment and mill upgrades, and $8 million in working capital required over the next 12 months.

• If new mining areas are not developed, operations may not continue beyond Q3 2026, potentially leading to mine care and maintenance.

• Exploration drilling remains suspended until working capital improves, but new targets have been identified for future testing.