Gold Resource (GORO) Q3 2025 earnings summary

Executive summary

• Operational turnaround at the Mexico mine is underway, with new equipment, contractor engagement, and mining method changes driving improved production and higher ore grades, especially in the Three Sisters area.

• Record-high gold and silver prices, along with higher ore grades, are supporting improved financial performance, though year-to-date output and grades (except silver) remain lower than 2024.

• Safety incidents prompted a comprehensive external safety audit and risk assessment at Don David Gold Mine.

• Alta Gracia mine commissioning preparations began, with targeted start in early Q1 2026.

• Net loss for Q3 2025 was $4.7 million ($0.03/share), mainly due to lower tonnes produced and ounces sold, though losses narrowed from the prior year.

Financial highlights

• Q3 2025 net sales were $24.9 million, up 87% year-over-year, driven by higher gold and silver prices and lower treatment/refining charges.

• Ended Q3 2025 with $9.8 million in cash and $12.8 million in working capital.

• Total cash cost per gold equivalent ounce was $2,116 in Q3 2025; all-in sustaining cost was $2,983/oz.

• Mine gross profit for Q3 2025 was $6.2 million, compared to a gross loss of $8.7 million in Q3 2024.

• Year-to-date net loss was $24.5 million, improved from $45.4 million loss in 2024.

Outlook and guidance

• Three Sisters is expected to contribute 40–50% of total production in 2026, with at least 40% by Q1 and higher by Q2.

• Management anticipates continued operational and financial improvements through year-end and into 2026, with positive operating income expected for the remainder of 2025.

• Ongoing development and infill drilling at Three Sisters and Arista aim to optimize near-term production.

• Alta Gracia mine commissioning targeted for early Q1 2026.

• Bat 40 project feasibility and permitting to commence soon, enabled by improved cash flow.