Gold Resource Corporation · AMEX:GORO
Gold Resource — Shareholder Meeting (June 2015)
46 slides from Gold Resource's shareholder meeting presentation, Jun 25, 2015
Slide 1: Annual General Meeting, June 25, 2015
Annual General Meeting, June 25, 2015 Gold Resource Corporation NYSE MKT: GORO
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: AGM Agenda
AGM Agenda 3 -2014 overview / milestones -Dore -Oaxaca Mining Unit -Project update -2015 and the year ahead -Cost reduction efforts -Switchback high-grade -Exploration update -Nevada Mining Unit -Precious metals space -Dividend distributions
Slide 4: 2014 Overview
2014 Overview 4 2014 was a year of success for the Company in an otherwise challenging bear market in the precious metal space. Our achievements included production of more gold, more silver and more base metals than we have ever produced annually. We achieved this while lowering costs, distributing
Slide 5: 2014 Highlights
2014 Highlights 5 -Record annual production of 35,552 gold ounces (4.7% increase over 2013) -Record annual production of 3,297,204 silver ounces (8.7% increase over 2013) -Record annual base metal production; 1,254 tonnes copper, 4,555 tonnes lead and 13,195 tonnes zinc -Reduced annual total cash co
Slide 6: 2014 Highlights
2014 Highlights 6 -$6.5 million annual dividends paid ($0.12 per share) -Achieved total dividend distributions milestone exceeding $100 million -Commissioned new doré facility at our Aguila mill -Continued high-grade drill intercepts from Switchback -Replaced tonnes mined back into a Proven and Prob
Slide 7: 2014 Dore Production
2014 Dore Production 7 2014; first Dore bar 18.9 kgs 55% Gold 43% Silver 2014 Don David Gold Mexico (DDGM): GRC’s 100% owned Mexican subsidiary
Slide 8: 2014 Dore Pour Video
2014 Dore Pour 8 Video; series of dore bars being poured
Slide 9: Focused on the Americas
Focused on the Americas 9 Nevada Mining Unit Exploration Stage Oaxaca Mining Unit Production & Exploration Stage Focused on the Americas Mining friendly jurisdictions High-grade gold & silver potential Undertaking numerous site visits in 2014-2015 looking for property opportunities this bear market
Slide 10: Oaxaca Mining Unit's Arista Underground Mine
10 Splay 05 Baja Vein Arista Vein Alta Vein Splay 03 ~600 meters Decline Ramp 10 Oaxaca Mining Unit’s Arista Underground Mine El Aguila
Slide 11: Arista Mine; 2015 targeted ore blocks
Arista Mine; 2015 targeted ore blocks Vein 3 Luz vein Candaleria Vein BAJA vein & SPLAY-66 Vein SANTA LUCIA Vein 1 SPLAY-05 ramp level 14.5-19 RAMPA GENERAL Internal ramp SPLAY-05 Level 10-9 BAJA “SE” Primary Ramp Access ramp Splay-05 NIVEL 14.5 SPLAY-05 ramp GENERAL Splay 5 vein
Slide 12: Arista Mine Ventilation Complexity
Arista Mine Ventilation Complexity 12 Ventilation raises Primary and secondary ramps
Slide 13: Phase III Tailings Dam Near Completion
Phase III Tailings Dam Near Completion 13 Phase III = ~2 years additional tailings capacity To be followed by phase IV for additional ~4 years Phase III Project is ~90% complete Liner installation underway, completion date ~July/August Older photo Current
Slide 14: 2015 The Year Ahead
2015 The Year Ahead 14 -Challenging time in a challenging industry -Volatile bear market in metals space continues -Suppressed metal prices compounds difficulty -Cost reduction measures stretch Company thin -We expect another challenging and difficult year ahead -WE ARE UP FOR THE CHALLENGE
Slide 15: 2015 The Year Ahead
2015 The Year Ahead 15 2015 Production: -Solid and successful Q1 production -Q2 challenges including a mine protest and work stoppage -Q2 production will be less than targeted preliminary production announced after final met balance -Working hard to overcome challenges in a tough marketplace
Slide 16: 2015 Cost Reduction Goals: Power Grid Project
2015 Cost Reduction Goals 16 Power Grid Project (probable 2016) ~$4 million estimated capital expenditure ( ~1 year project payback) Power Line to follow federal highway a total distance of 68 kilometers Estimated annual power cost savings of ~$4 million +/- Potential 2015 construction decision / 20
Slide 17: 2015 Cost Reduction Goals: Salina Cruz Port Project
2015 Cost Reduction Goals 17 Salina Cruz Port Project (probable 2015) Shorter distance to haul concentrates Military controlled port facility Potentially more secure route and port facility Possible cost savings Targeted goal, actual results may vary
Slide 18: Switchback Expansion / Cross Section
Switchback Expansion / Cross Section El Aguila Arista Switchback
Slide 19: Switchback Expansion / Plan view
Switchback Expansion / Plan view El Aguila Arista Switchback
Slide 20: Switchback Drill Results
Qz Py 1 cm 1 cm Sph+Gn Clay 1 cm Sph+Gn+Cpp Qz Clay+Hem 1 cm Gn Cpp d) c) b) a) Switchback Drill Results Soledad vein intercept: Hole 515040 15.64 meters @ 2.85 g/t Au 169 g/t Ag 0.52 % Cu 1.60 % Pb 10.16 % Zn Step-out hole to the north Switchback Press Release Announced Today:
Slide 21: Switchback Development
-Significant step-out drill hole - Expanding high-grade gold, silver and base metals -Mineralized horizon may mirror Arista deposit, high grade Au & Ag at these and higher elevations -Fortunate ability to mine up on Switchback mineralization, leverage existing Arista mine development -Ongoing ramp d
Slide 22: Switchback Mine plan
Switchback Mine plan 22 Fresh air intake Level 23 Exhaust air exit Level 14 Fresh air intake Level 10 Arista Switchback
Slide 23: +55 km mineralized structural corridor
+55 km mineralized structural corridor *Drill results include Exploration Large Consolidated Land Position 6 properties 684 square kilometers 55 kilometer mineralized structural corridor High-grade gold and silver Epithermal deposits Intermediate polymetallic Skarn potential North70West ~55 km *1.2m
Slide 24: Exploration; Alta Gracia
Exploration; Alta Gracia Alta Gracia Property Alta Gracia MIRADOR VEIN Hole # Angle From Interval Au Ag deg Meters Meters g/t g/t 4140009 -47 133.10 5.06 1.53 1,383 incl. 133.10 0.31 0.34 365 incl. 133.41 0.36 1.06 845 incl. 133.77 1.35 0.39 155 incl. 135.12 0.35 0.81 609 incl. 135.47 0.54 1.78 1,01
Slide 25: Alta Gracia's Mirador Vein Plan View
Alta Gracia’s Mirador Vein Plan View 25 Alta Gracia Project Mirador Vein Prospect Alta Gracia Project Mirador Vein Prospect a) Alta Gracia Project Mirador Vein Prospect
Slide 26: Exploration; Las Margaritas
Exploration; Las Margaritas 27 Las Margaritas Property Historic workings Ghost town Drill intercepts include Gold Silver Meters (down hole) 27.90 g/t 2600 g/t 2.85 Rock chip samples include Gold Silver 6.29 g/t 4150 g/t 5.25 g/t 2000 g/t 7.76 g/t 1850 g/t 3.46 g/t 1330 g/t High-grade gold / silver d
Slide 27: Exploration; Las Margaritas
Exploration; Las Margaritas 28 Quartz-calcite veinlets with traces of base metal sulfides. Calcite vein associated with pyrite - base metal sulfide veining (ASSAYS PENDING). 0.37 meters of 3.49 g/t gold, 1,705 g/t silver, 0.01% copper, 0.85% lead & 1.71% zinc on Tapada Vein. Hole 313009 Hole 315001
Slide 28: Nevada Mining Unit (exploration)
29 Nevada Mining Unit (exploration) Paradise Peak Mine 2.6MMoz.Au 43 MMoz.Ag Rawhide Mine 1.6MMoz.Au 17.5 MMoz.Ag Round Mountain Mine 10MMoz.Au Bruner Canamex drill results: 118m@4.08g/t Au July 2012 Radar and Goose Calvada 2 Mine .5MMoz.Au 1 MMoz.Ag Calvada 3 Mine Santa Fe Mine GRC’s Radar & Goose
Slide 29: Nevada Mining Unit (exploration Drilling)
30 Nevada Mining Unit (exploration Drilling) Radar Goose
Slide 30: Priorities and Focus
Priorities and Focus 31 -Continue to expand Arista deposit -Expanding & developing towards Switchback -Cost reduction projects -Exploring and developing Alta Gracia -Exploring Las Margaritas -Exploring Radar / Goose -Evaluating new project opportunities Oaxaca Mining Unit: Nevada Mining Unit: Opport
Slide 31: Why Gold, Why Now
Why Gold, Why Now 32 History demonstrates gold as a form of money and store of wealth for thousands of years, far longer than any current or historic fiat currency has ever survived Gold historically and over the long term has been a store of wealth while being no one else's liability World governme
Slide 32: Incomprehensible U.S. Debt
33 Incomprehensible U.S. Debt The U.S. national debt alone is well over $18 trillion dollars All the talk is about when the Fed will raise rates (nobody’s talking debt payments) Each 1% increase in financing costs would be $180 Billion in additional interest owed 6+%, interest on national debt payme
Slide 33: Incomprehensible World Debt
34 Incomprehensible World Debt Total world debt has been calculated recently at $223 Trillion dollars World debt increased ~40% since crisis of 2008-2009 $223 Trillion is actual debt, and does not include the potential debt lying in derivate of this debt $555 Trillion in derivatives (amount greater
Slide 34: Incomprehensible World Debt
35 Incomprehensible World Debt Analogy for 1 trillion dollars 1 million dollars = spending $1 per second for 12 days* 1 billion dollars = spending $1 per second for 32 years* 1 trillion dollars = spending $1 per second for 32,000 years* U.S. Debt** = $ 18 Trillion World Debt** = $233 Trillion World
Slide 35: China Gold Accumulation
China Gold Accumulation 36 China is the world's biggest producer of gold and a top consumer of the precious metal China set up new gold fund Expected to raise an estimated 100 billion yuan ($16.13 billion) in three phases The fund's activities could take in the launch of gold-backed exchange-traded
Slide 36: Russia Gold Accumulation
Russia Gold Accumulation 37 http://www.goldcore.com/us/gold-blog/currency-wars-back-as-russia-buys-one-million-ounces-of-gold-in-march/ -Russia buys one million ounces and increases gold reserves by another 2.6% in March - Russia sees gold as important monetary and strategic asset in stealth currenc
Slide 37: Central Bank Gold Purchases
Central Bank Gold Purchases 38 World gold council date World Gold Council data showed central banks purchased 477 tonnes of gold during 2014 Second highest year for central bank net gold purchases in 50 years 17% higher than central bank purchases the prior year of 2013
Slide 38: Gold Repatriation
Gold Repatriation 39 Gold repatriations by Germany, Poland, Venezuela, Ecuador, Mexico, the Netherlands, are just a few of the countries that have recently repatriated their gold or hosted movements to do so. Lost faith in fiat currencies and lack of trust in bullion audits, foreign storage faciliti
Slide 39: Texas Gold Repatriation
Texas Gold Repatriation 40 http://news.goldseek.com/GoldSeek/1434459457.php Gold Bullion Worth $1 Billion To Be “Repatriated” From NY Fed To New Texas Bullion Depository - Texas creates state gold depository – bringing gold home from New York Fed - Move to remove gold from Federal Reserve highlights
Slide 40: Gold Manipulation
Gold Manipulation 41 Gold manipulators being exposed: Barclays Bank $43.9 million settlement for gold-fix are they the only one? Nov. 12, 2014 (Bloomberg) -- Switzerland’s regulator FINMA found “serious misconduct” and “clear attempt to manipulate precious metals” by UBS AG Bank. UBS fined $139 mill
Slide 41: Gold Manipulation
Gold Manipulation 42 Feb 23, 2015 (Bloomberg) – -The U.S. Justice Department is investigating the world’s biggest banks for manipulating prices of precious metals such as silver and gold (having already been caught and fined for manipulating LIBOR, FX, etc ) -At least 10 banks, including Barclays Pl
Slide 42: Gold Manipulation
Gold Manipulation 43 Proof That Gold Price Is Manipulated Using Paper Gold -Average intra-day price movements of gold over a 5-yr period -AM and PM fix suppressed http://news.goldseek.com/GoldSeek/1415210245.php London AM FIX London PM FIX NYC Globex Closes
Slide 43: Why Gold, Why Now
Why Gold, Why Now 44 “All the reasons gold went from $250 to $1,900 are still intact. In fact, they’ve been amplified tenfold.” - Frank Giustra, one of Canada’s wealthiest and most successful businessmen No one will accurately call the tipping point when precious metals take off and or world econom
Slide 44: Dividend & Yield
Dividend & Yield Source: Based on each company’s annual public filing and Bloomberg. *Please view each company’s annual public filing for specific and detailed information on annual production total calculations. Company 2014 Au Production* Annual Dividend Estimate (US$/ share) Yield Share price clo
Slide 45: Dividend Per Ounce
Dividend Per Ounce Source: Based on each company’s Annual Filings and Bloomberg. GRC targets, performance not guaranteed, see Risk Factors in Company’s 10K. 46 *Current dividend vs 2014 annual production PRODUCTION OUNCES REQUIRED TO GENERATE EACH $0.01 OF ANNUAL DIVIDEND* Source: Based on each comp
Slide 46: Thank You For Attending The 2015 AGM
Our goal for 2014 was to position the Company to emerge from this market volatility as a leaner, stronger, efficient and more profitable mining company, well positioned to generate cash at current metal prices, and in an even stronger position to generate more when the metal markets finally resume t