Gold Resource Corporation · AMEX:GORO
Gold Resource — Shareholder Meeting (June 2014)
34 slides from Gold Resource's shareholder meeting presentation, Jun 19, 2014
Slide 1: Annual General Meeting: Monthly Dividends: Gold, Silver or Cash
June 19, 2014 Annual General Meeting Monthly Dividends: Gold, Silver or Cash Exhibit 99.1
Slide 2: Forward-looking statements
This brochure contains statements that plan for or anticipate the future. Forward-looking statements include statements about the Company's ability to develop and produce gold or other precious metals, statements about our future business plans and strategies, statements about future revenue and the
Slide 3: Volatile Mining Equity
Volatile Mining Equity Bear Market of 2013 Reached production target 84,800 ounces AuEq Expanded mill capacity Continued monthly dividends Paid 46 consecutive monthly dividends to date ~1500 t/d capacity
Slide 4: Total Cash Cost and All-In Sustaining Cost per Ounce
Gold Institute Total Cash Cost/Ounce All-In Sustaining Cost Per AuEq Ounce Sold *** First Quarter Of 2014 Lowered costs of production Solid production start in Q1 Much Stronger Positioned Company Potentially capitalize on opportunities * (**) (***) See Companies corporate presentation on its website
Slide 5: Oaxaca Mining Unit
Oaxaca Mining Unit Strong management team On track to reach targeted production range: 85,000 – 100,000 oz’s AuEq Optimizing operations
Slide 6: Oaxaca Mining Unit
Gown Resou ct Corporation OAXACA MINING UNIT GoRO
Slide 7: Multiple Parallel Veins
Multiple Parallel veins Open on strike and depth Splay 05 December 2012 Baja Vein Arista Vein Alta Vein Splay 03 February 2013
Slide 8: Arista Ridge Exploration
ARISTA RIDGE Oaxaca Mining Unit Exploration Arista deposit continues to expand New “Switchback” discovery a priority Multiple drill targets
Slide 9: Arista Vein System: Plan Map
Arista Vein System: Plan Map Drill hole Vein Projection ARISTA DEPOSIT El Aire Vein Santa Lucia Vein Socorro/Splay 5 Splay 6 Arista Deposit Plan View
Slide 10: Arista Vein System: Plan Map
Arista Vein System: Plan Map Drill hole Vein Projection 2.06m@ 1.36 g/tAu, 813 g/tAg 2.68m@ 11.72 g/tAu, 748 g/tAg 0.41m@ 22.90 g/tAu, 5,330 g/tAg 2.43m@ 3.85 g/tAu, 681 g/tAg 1.41m@ 3.93 g/tAu, 2,223 g/tAg 1.41m@ 3.96 g/tAu, 1,078 g/tAg ARISTA DEPOSIT 0.88m@ 2.95 g/tAu, 738 g/tAg El Aire Vein Santa
Slide 11: Drill intercepts on Socorro, Candelaria and other veins
0.41 meters of 22.90 g/t gold , 5,330 g/t silver , 1.89% copper, 3.28% lead & 7.42% zinc ( 118.25 g/t AuEq ) on Socorro Vein. 0.57 meters of 0.27 g/t gold, g/t silver, 0.10% copper, 3.60% lead & 11.20% zinc (9.07 g/t AuEq) on Un-Named Vein (Hanging Wall Baja Vein). Hole # 514015 (Termite) 0.65 meter
Slide 12: Arista Vein System: Switchback Discovery
Arista Vein System: Plan Map Drill hole Vein Projection ARISTA DEPOSIT El Aire Vein Santa Lucia Vein Socorro/Splay 5 Splay 6 Arista Deposit Plan View Switchback Discovery 15.47 m including 2.2 m 12.9 g/t Au and 410 g/t Ag
Slide 13: Switchback extension of Arista deposit
Switchback; extension of Arista deposit or parallel system 500 meters northeast
Slide 14: Switchback Longitudinal Section
16 L 514021* ~450 meters * Switchback Longitudinal Section AuEq is all metal gold equivalent for this slide only Target not reached due to fault and horizontal drill orientation
Slide 15: Preliminary Switchback mine design
NIVEL_20 NIVEL_19 NIVEL_21 NIVEL_22 NIVEL_23 NIVEL_24 NIVEL_18 NIVEL_14 NIVEL_10 NIVEL_17 NIVEL_16 NIVEL_15 NIVEL_25 PROYECTO RAMPA NORTE PROYECTO RAMPA SUR RAMPA GENERAL NIVEL_20 NIVEL_19 NIVEL_21 NIVEL_22 NIVEL_23 NIVEL_24 NIVEL_18 NIVEL_14 NIVEL_17 NIVEL_16 NIVEL_15 NIVEL_13 Preliminary switchbac
Slide 16: Large Consolidated Land Position
Large Consolidated Land Position +55 km mineralized structural corridor *Drill results include 6 properties • 684 square kilometers 55 kilometer mineralized structural corridor High-grade gold and silver • Epithermal deposits • Intermediate polymetallic • Skarn potential *1.2m @ 18 g/t Au g/t Ag 1.5
Slide 17: Zacatecas District Comparison
Gown Resou ct Corporation ZACATECAS DISTRICT COMPARISON YSE MT GORO PANUCO - MULEROS
Slide 18: Arista Expansion Potential
Gown Resource Corporation ARISTA EXPANSION POTENTIAL GoRO
Slide 19: Structural targets along North 70 West corridor
Amplitude Component Total Mag; Projected Depth From Surface is 500m. Local structures as blue lineaments. Red Stars = paleo-surface indicators of travertine La Arista Deposit Las Margaritas Searching for similar structural settings to Arista along North 70 West corridor
Slide 20: Las Margaritas Property
Las Margaritas Property Historic workings Ghost town Drill intercepts include Gold Silver Meters (down hole) 27.90 g/t g/t 2.85 Rock chip samples include Gold Silver 6.29 g/t g/t 5.25 g/t g/t 7.76 g/t g/t 3.46 g/t g/t High-grade gold / silver district mined Pre-Mexican Revolution (1910) The Mines of
Slide 21: China
CHINA Now the largest gold producer and one of the largest importers of gold New middle class Unwinding their dollar exposure Encouraging citizens to purchase gold Buying hard assets including mines http://seekingalpha.com/article/2014211-a-true-statistical-mystery-what-happened-to-the-missing-chine
Slide 22: Russia
Russia Increasing gold reserves since 2007 and just bought an additional 900,000 ounces gold ($1.2 billion) in April 2014 Significantly reducing U.S. treasuries, $50 billion between October and March 2014. http://seekingalpha.com/article/2232763-russian-gold-reserves-increase-by-a-massive-amount-in-
Slide 23: U.S. bankers and media on gold's bull market
Many U.S. Bankers and major media calling for gold’s long term bull market end but what are the banks buying? Gold manipulators being exposed: Barclays recent $43.9 million settlement for gold-fix…are they the only one? Which Side Of Goldman Sachs Is Right About Gold? Oct. 9, 2013 7:57 AM ET | …”The
Slide 24: Central banking investors in equity markets
“A cluster of central banking investors has become major players on world equity markets,” says a report to be published this week by the Official Monetary and Financial Institutions Forum (Omfif), a central bank research and advisory group. The trend “could potentially contribute to overheated asse
Slide 25: Financial Times June 15, 2014
Financial Times June 15, 2014 Posted June 16th, 2014 at 2:07 PM (CST) by Jim Sinclair “OK, in perspective, the value of all stock markets on the planet added together are about $ 62 trillion , now it is revealed that $ 29 trillion or so has come from the world’s central banks. How did this happen? D
Slide 26: Central banks buying stocks
Central Banks around the world are buying stocks in increasing size. To summarize, the global equity market is now one massive Ponzi scheme in which the dumb money are central banks themselves, the same banks who inject the liquidity to begin with. That would explain this. http://www.zerohedge.com/n
Slide 27: Gold's bull market and bear market correction
Gold’s 12 year bull market Healthy 2 year bear market correction 15 year gold price history in US dollars per ounce http://goldprice.org/gold-price-history.html#10_year_gold_price Recent bear market correction for gold mining equities has created an attractive entry point for those that missed gold’
Slide 28: Why Gold, Why Now
Gown Resou ct Corporation WHy GOLD, WHY Now «) GORO | ‘i bs Reasons toown ~~ ) Physical Gold, Gold Miners and Explorers in 2014 oT
Slide 29: Middle class growth and gold demand
According to a Pew Research Centre report, the middle class of the US has fallen from 61% of its population in the 1970's to 50% in 2012. But whilst the middle classes of both the US and Europe shrink, those of India and China are expected to continue growing at an almost incomprehensible rate. Alre
Slide 30: Gold demand in India and China 2013
Gold demand in India and China 2013 % change 12 months ended Q4 2013 INDIA ME. 5% y/y oe CHINA 32% y/y m2 fos og yn 15 Over the past decade Russia's central bank has bought more gold than anyother coun) aia Total tonnage 12 months ended Q4 2013, yn 42. Gold stocks are selling at almost 10 year lows
Slide 31: Consecutive Monthly Dividends Income Equity
Consecutive Monthly Dividends Income Equity Dividends may vary in amount and consistency or be discontinued at management’s discretion depending on variables including but not limited to operational cash flows, Company development requirements, strategies, construction, spot gold and silver prices,
Slide 32: Dividend yield comparison with gold producers
33 Source: Based on each company’s annual public filing and Bloomberg. *Please view each company’s annual public filing for specific and detailed information on annual production total calculations. Company 2013 Au Production* Annual Dividend Estimate (US$/ share) Yield Share price close (5/12/2014,
Slide 33: Dividends Generated per Ounce of Annual Production
DIVIDENDS GENERATED PER OUNCE OF ANNUAL PRODUCTION* Source: Based on each company’s Annual Filings and Bloomberg. GRC targets, performance not guaranteed, see Risk Factors in Company’s 10K. PRODUCTION OUNCES REQUIRED TO GENERATE EACH $0.01 OF ANNUAL DIVIDEND n/a 358,300 510,000 80,000 45,000 34,354
Slide 34: GRC Eagles
“GRC Eagles” rounds Shareholder Focused Precious Metal Producer Delivering a growth profile of low cost , high margin production Demanding high returns on owner invested capital Distributing meaningful monthly dividends to maximize total return to owners