Gold Resource Corporation · AMEX:GORO
Gold Resource — Shareholder Meeting (June 2011)
37 slides from Gold Resource's shareholder meeting presentation, Jun 22, 2011
Slide 1: 2011 Annual Meeting
6-21-11 2011 ANNUAL MEETING 2011 ANNUAL MEETING 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: High-Grade Asset Base with Significant Exploration Potential
High-Grade Asset Base with Significant Exploration Potential High-Grade Asset Base with Significant Exploration Potential Low Cost Gold Producer Focused on Growth Low Cost Gold Producer Focused on Growth Engineered To Maximize Shareholder Value Engineered To Maximize Shareholder Value Focused on Cas
Slide 4: Delivering Shareholder Value
Delivering Shareholder Value Delivering Shareholder Value
Slide 5: Recent events
Recent events Recent events Mine cleanup after rain /hail storm is complete Precautionary measures Mine development continues Stope (L4-L5) underway Descending benches Consider long hole stoping Decline progressing ~6 meters per day Progressing towards Level 7 Ore blending program during cleanup und
Slide 6: Recent events
Recent events Recent events Overcame adversity Optimizing operations Foresee Q2 record production, revenues and earnings Oaxaca Mining Unit Team Oaxaca Mining Unit Team
Slide 7: Aggressive Growth Profile
Aggressive Growth Profile Aggressive Growth Profile Calendar Year-end Production Targets Mill capacity as built = ~200,000 oz. Above targets do not include Company’s remaining open pit ore stockpiles and stated long term goal of increasing mill capacity to ~300,000 oz’s Internal Estimate, Not SEC Pr
Slide 8: Continued Lower costs
Continued Lower costs Continued Lower costs Cash Cost / Ounce Targets Cash Cost / Ounce Targets *Precious metals $0 cash cost / oz production targeted using industry standard base metal by-product credits of; Cu, Pb, Zn Internal Estimate, Not SEC Proven & Probable Reserves; see Risk Factors in Compa
Slide 9: Company's First Profit
Company’s First Profit Company’s First Profit Flotation Agitated leach Two mill circuits Q1 2011 First Company Profit
Slide 10: Descending Benches
Descending Benches Descending Benches Schematic of Mine Development Schematic of Mine Development Arista Underground Mine development Arista Underground Mine development Currently stoping between levels 4 and 5 L4 L 5 ~450-650 nominal tonnes per day Ore Pass
Slide 11: Arista Underground Mine development
Arista Underground Mine development Arista Underground Mine development Level 6 development: Multiple veins being mined
Slide 12: <Goy Resource Corporation
6 X <Goy Resource Corporation Sy Goro
Slide 13: Arista Mine Development
Arista Mine Development Arista Mine Development 2011 Arista Drilling focus has been mine development NI-43-101 support Underground development intercepts include (weighted avg. not true width) : Hole # from Meters Au g/t Ag g/t Cu% Pb% Zn% 5110004 79.47 33.81 18.49 1853 1.59 1.76 5.21 5110005 60.55
Slide 14: Strategy
Strategy Strategy Decisions based on financial performance Payback CAPEX less than 1 year/ IRR >100% Production at earliest possible date Build company with cash flow Limit shareholder dilution Distribute meaningful dividend (Disciplined Cap Structure) (Approx.1/3 Cash Flow)
Slide 15: Exploration; property acquired
Exploration; 6 property acquired Exploration; 6 property acquired New land acquisition* 48 kilometers on trend +200sq miles New Property * th
Slide 16: Exploration; New Land Acquisition
Exploration; New Land Acquisition Exploration; New Land Acquisition Oaxaca Mining Unit expansion Dominant land position 5 properties on N70W regional structural corridor
Slide 17: Exploration; Drill Rigs
Exploration; Drill Rigs Exploration; Drill Rigs Two drill companies currently contracted GeoDrill and Alta Drilling Additional drills being evaluated * The Company currently targets adding these drills subject to drill availability and / or order timeframes
Slide 18: Advancing Exploration
Advancing Exploration Advancing Exploration The El Rey Property Discovered high - grade gold vein syste m Exploration / development underground Mineralization within 100 meters of the surface Vein drill intercepts include (5 holes) (1) : 1 m of 132.5 g/t Au 1.4 m of 55.3 g/t Au 9 m of 19.4 g/t Au in
Slide 19: Advanced Exploration
Advanced Exploration Advanced Exploration Alta Gracia Property Developed many high - grade targets High up in the system May be above boiling point Old workings utilized for new exploration Surface samples (rock chip) include: # Meter Ag g/t Au g/t 101814 0.3 2590 4.75 101815 1.2 1.32 101817 0.3 1.0
Slide 20: Advanced Exploration
Advanced Exploration Advanced Exploration Drill rig Pad for mine works exploration Old workings
Slide 21: Overcame Adversity
Overcame Adversity Overcame Adversity Typical day at the mill
Slide 22: Overcame Adversity
Overcame Adversity Overcame Adversity Freak hail storm
Slide 23: Overcame Adversity
Gold Resource Corporation 2886 Carriage Manor Point Colorado Springs, CO. 80906 USA Office: (303) 320-7708 Fax: (303) 320-7835 Email: gregpatterson@goldresourcecorp.com Website: www.goldresourcecorp.com Overcame Adversity Overcame Adversity 10” of rain and hail in three hours
Slide 24: Overcame Adversity
Overcame Adversity Overcame Adversity Mill remained operational No serious injuries
Slide 25: p Resource Corporation
p Resource Corporation Goro
Slide 26: Overcame Adversity
Overcame Adversity Overcame Adversity Production continued Record production forecasted Q2
Slide 27: Overcame Adversity
Overcame Adversity Overcame Adversity
Slide 28: Gold Market / Equities pullback
Gold Market / Equities pullback Gold Market / Equities pullback
Slide 29: Gold Market / Equities Pullback
Gold Market Gold Market “While the party continues for gold bullion prices, stocks of gold companies have been a no-show.” Frank Holmes June 2011 “Gold equities underperformed gold bullion in 2000 and 2008 during times of extreme market negativity and uncertainty. These previous instances have been
Slide 30: Where We Are Going
Where We Are Going Where We Are Going Development of Expanded Oaxaca Mining Unit Development of Expanded Oaxaca Mining Unit Increase Shareholder Value Increase Shareholder Value Continue “Mainstream” Continue “Mainstream” Thrust for Institutional Investors Thrust for Institutional Investors Focused
Slide 31: Mainstream Exposure
Mainstream Exposure Mainstream Exposure
Slide 32: Mainstream Thrust
Mainstream Thrust Mainstream Thrust Formal Resource Report Formal Resource Report NYSE Amex Listing NYSE Amex Listing “Mainstream” “Mainstream” for Institutional Investors for Institutional Investors Coverage Coverage TSX Secondary Listing TSX Secondary Listing 2010 2011
Slide 33: Strike a balance
Strike a balance between ~Company Growth ~Return to Owners Measurement ~Cash balance for near term growth ~Cash generated by Mine Gross Profit Mine Gross Profit Dividends 7/1/2010-3/30/2011 $18 million $13 million SPECIAL CASH DIVIDENDS SPECIAL CASH DIVIDENDS GORO; Unique Gold Investment GORO; Uniqu
Slide 34: Cash flow and dividend focused
Cash flow (Mine Gross Profit) and dividend focused. Company long term estimate: ~ 1/3 cash flow for taxes ~ 1/3 cash flow targeted for growth ~ 1/3 cash flow targeted to be paid back to shareholders as dividends SPECIAL CASH DIVIDENDS SPECIAL CASH DIVIDENDS Special dividend declared Payable to share
Slide 35: Dividend & Yields
Company Annual Dividend Estimate Yield % Share Price Close 6/20/2011 Agnico Eagle U.S.$0.65 1.1% U.S.$60.98 Barrick U.S.$0.49 1.1% U.S.$43.17 Goldcorp U.S.$0.42 0.9% U.S.$47.35 Kinross U.S.$0.10 0.7% U.S.$14.88 Newmont U.S.$0.80 0.8% U.S.$51.82 Yamana U.S.$0.12 1.1% U.S.$11.32 Royal Gold U.S.$0.44 0
Slide 36: Cash Flow
Cash Flow Cash Flow Become the “Go To” Become the “Go To” Gold Investment Gold Investment Dividends Dividends Dividends Dividends “In Kind” “In Kind” Treasury % Treasury % in Physical in Physical Adding Ounces Adding Ounces Capitalize on Capitalize on Opportunities Opportunities Low Cost Low Cost Pr
Slide 37: Conclusion
Conclusion Conclusion Exploration of High-Grade Asset Base Exploration of High-Grade Asset Base Low Cost Gold Producer Low Cost Gold Producer Increasing Production Profile Increasing Production Profile