Gold Resource Corporation · AMEX:GORO
Gold Resource — Shareholder Meeting (June 2013)
54 slides from Gold Resource's shareholder meeting presentation, Jun 20, 2013
Slide 1: 2013 Annual Meeting
6-20-2013 2013 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: Today's Road Map
Today’s Road Map 2012 Highlights Milestones Stock Performance The Way Forward The Cost of Gold Mining Paper vs. Physical Gold Operations Update Exploration Update The Road Ahead
Slide 4: 2012 Performance Highlights
2012 Performance Highlights Precious Metal gold equivalent ounces: Dividends Declared: Sales of Metal Concentrates: *Dividends paid monthly. Monthly dividends ranged from $0.05 to $0.06 in 2012, from $0.03 to $0.05 in 2011, and $0.03 in 2010. +37% +38% +25%
Slide 5: 2012 Performance Highlights
2012 Performance Highlights Selected Financial Information: (in thousands, except share data) 2012 Annual Report Sales of Metal Concentrates: Mine Gross Profit: Dividends Per Share: Treasury Gold and Silver Bullion: 2012 2011 $105,163 $80,521 $0.50 $2,549 $131,794 $87,773 $0.69 $5,809
Slide 6: Mine: 2012 Performance Highlights
MINE 2012 Performance Highlights 2012 Revenue Distribution 82% 18% Precious Metals: Gold, Silver Base Metals: Copper, Lead, Zinc 2012 Average Arista Mill Head Grades Precious Metals: Gold: 4.30 grams/tonne Silver: 355 grams/tonne Base Metals: Copper: 0.45% Lead: 1.70% Zinc: 3.98% ARISTA UNDERGROUND
Slide 7: 2012 Major Milestones
$ 1.58 / share paid since “IPO” at $1.00 (Sept. 2006) $ 36.5 million in dividends paid to shareholders Fiscal discipline and commitment to shareholders now total $ 83 million in dividends since commercial production (July 2010) Dramatically lowered our accumulated deficit in 2012 to $9 million. Achi
Slide 8: 2012 Major Milestones
2012 Major Milestones Successfully launched only currently known cash to physical gold and silver dividend
Slide 9: 2012 Performance Highlights
2012 Performance Highlights 2012 Performance Highlights Missed Company targets (Aggressive higher targets) Precious metal space under pressure (pressure continued in 2013 with largest gold price drop in 30 years) Overcame adversity, 37% production increase, $36.5 million dividends, etc… Why the stoc
Slide 10: Peer Group Comparison
Peer Group Comparison GORO vs. GDXJ (~#80 peer group Co’s) 3-YEAR COMPARISON GORO -16% GDXJ -58%
Slide 11: The Way Forward
The Way Forward Way Forward Continue same business plan Focus on operations Cut costs where possible Position Company to weather potential metal market volatility Producers getting squeezed as costs increase and metal prices fall
Slide 12: Cost of Gold Mining
Cost Of Gold Mining Cost Of Gold Mining Source: Visual Capitalist
Slide 13: Cost of Gold Mining
Cost Of Gold Mining Cost Of Gold Mining Source: Visual Capitalist GORO in best cost region
Slide 14: Cost of Gold Mining; Barrick Gold Corp. Example
“TOTAL CASH COST” as defined by the Gold Institute Cost Of Gold Mining; Barrick Gold Corp. Example Source: Visual Capitalist ALL IN SUSTAINING CASH COST: yet to be defined by the World Gold Council
Slide 15: Cost of Gold Mining
Cost Of Gold Mining Cost Of Gold Mining Source: Visual Capitalist
Slide 16: Gold Institute Total Cash Cost/Ounce
Gold Institute Total Cash Cost/Ounce Gold Institute Total Cash Cost/Ounce • Precious metal gold equivalent (AuEq) total cash cost/oz production including 5% royalties using industry standard base metal by-product credits of: Cu, Pb, Zn. Total Cash Cost as defined by The Gold Institute ** Thomson Reu
Slide 17: All-In Sustaining Cost (AISC) / Ounce Sold
All-In Sustaining Cost (AISC)** / Ounce Sold GRC’s AISC December 2012 ** All-in Sustaining cost is a non-GAAP measure. The Company’s methodology for calculating all-in sustaining costs may not be similar to methodology used by other precious metal producers that disclose all-in sustaining cost. The
Slide 18: Annual 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. Annual Dividend & Yield Review Company Gold Resource 2012 Au Production* Annual Dividend Estimate (US$/
Slide 19: Market Considerations: Paper vs. Physical Gold Demand
Market Considerations Market Considerations Gold vs. Physical Gold Demand Gold vs. Physical Gold Demand “Gold bears the brunt as funds withdraw $9.1bn in April” ‘The number-one driver of outflows remains the steady liquidation of physical backed gold investments’ i.e ETF’s The bulk of the net outflo
Slide 20: Dramatic price fall leads to surge in consumption
“Dramatic price fall leads to surge in consumption” • Middle East gold jewelry sales rise by 100% Financial Times June 8, 2013 • Demands surged, shortages in the supplies led to long queues across Asia, Europe and the US • US mint bullion coins one- tenth of an ounce rocketed by 118% over previous y
Slide 21: Dramatic price fall leads to surge in consumption
Financial Times June 8, 2013 “Consumers in Asia are again buying gold in record amounts, and this was particularly evident in physical investments, such as bars and coins, and also jewelry, with India and China seeing a year-on-year increase of 27 per cent and per cent respectively,” says Marcos Gru
Slide 22: Oaxaca Mining Unit / Operations: 2013 Mill Expansion
Oaxaca Mining Unit / Operations Oaxaca Mining Unit / Operations 2013 Mill Expansion 2013 Mill Expansion 2012 run rate of 773 tonnes/day El Aguila Mill expansion from 1200 tonnes/day to 1500 tonnes/day targeted by end of 2013 2013 YEAR OF MILL EXPANSION
Slide 23: Oaxaca Mining Unit / Operations: 2013 Mill Expansion
Oaxaca Mining Unit / Operations Oaxaca Mining Unit / Operations 2013 Mill Expansion 2013 Mill Expansion Flotation circuit second ball mill foundation
Slide 24: Oaxaca Mining Unit / Operations: 2013 Mill Expansion
Oaxaca Mining Unit / Operations Oaxaca Mining Unit / Operations 2013 Mill Expansion 2013 Mill Expansion Flotation circuit upgrades underway
Slide 25: Oaxaca Mining Unit: Arista Mine Development
Oaxaca Mining Unit Oaxaca Mining Unit Arista Mine Development Arista Mine Development Splay 03 February 2013 Alta Vein Arista Vein Baja Vein Splay 05 December 2012 El Aguila
Slide 26: Arista Mine Development Overview
Splay Alta Baja Arista Candelaria Luz Arista Mine Development Arista Mine Development Overview Overview (Veins; Baja, Arista, Alta, Candelaria, Luz, Splay 5) (Current Arista mine plan; year end mine development may vary) Multiple en echelon veins
Slide 27: Arista Mine Development Overview
Arista Mine Development Arista Mine Development Overview Overview Splay 5 Alta Baja Arista Candelaria Luz (Current Arista mine plan; year end mine development may vary)
Slide 28: Arista Mine Development: Ramp
Arista Mine Development Arista Mine Development Ramp Ramp (Current Arista mine plan; year end mine development may vary) Current Ramp Advancement
Slide 29: Arista Vein Production / Development
Arista Mine Development Arista Mine Development Arista Vein Production / Development Arista Vein Production / Development (Current Arista mine plan; year end mine development may vary) L10 L13 Current Arista Vein Ore Blocks
Slide 30: Baja Vein Production / Development
Arista Mine Development Arista Mine Development Baja Vein Production / Development Baja Vein Production / Development (Current Arista mine plan; year end mine development may vary) L10 L14 Current Baja Vein Ore Blocks
Slide 31: Arista Mine Development: Splay 5
Arista Mine Development Arista Mine Development Splay 5 Splay 5 (Current Arista mine plan; year end mine development may vary) L10 Current ramp development for Splay 5 vein
Slide 32: Arista Mine Development: Luz Vein
Arista Mine Development Arista Mine Development Luz Vein Luz Vein Current ramp development for Luz Vein (Current Arista mine plan; year end mine development may vary) L10
Slide 33: Arista Mine Development: Candelaria Vein
Arista Mine Development Arista Mine Development Candelaria Vein Candelaria Vein Current ramp development for Candelaria Vein (Current Arista mine plan; year end mine development may vary)
Slide 34: Oaxaca Mining Unit: Exploration
Oaxaca Mining Unit Oaxaca Mining Unit Exploration Exploration GRC now controls 57,868 hectares, or 223 squares miles in Oaxaca, Mexico, with 48 kilometers, or 30 miles, along an important mineralized North 70 West structural corridor 99% of properties yet to be drilled.
Slide 35: 48 Kilometer Mineralized Trend
Oaxaca Mining Unit Oaxaca Mining Unit 48 kilometer mineralized trend 48 kilometer mineralized trend g/t Au 1853 g/t Ag 1.59 % Cu 1.76 % Pb 5.21 % Zn 1m @ 132 g/t Au 2.85m@ 27.0 g/t Au 2600 g/t Ag +48 km mineralized structural corridor
Slide 36: Arista Deposit Expansion Potential
La Arista Underground Mine El Aguila Open Pit Mine Arista Deposit Expansion Potential Arista Deposit Expansion Potential Drill hole Surface sample Arista Mine development El Aguila Splay 05 December 2012 Baja Vein Arista Vein Alta Vein Splay 03 February 2013
Slide 37: Arista Vein System Plan View
Arista Vein System Plan View Primary Arista & Baja Veins 500 meters deep x 500 meters on strike Open on strike and depth South East North Splay 05 Splay 03 / Santiago Vein Splay 13 Splay 08 Splay 25 Splay 31 Splay 39 Splay 12 Vein Arista Vein Baja Vein Alta Vein Splays Existing Development Arista Ve
Slide 38: Arista Vein System Plan View
Arista Vein System Plan View South East North Splay 05 Splay 03 / Santiago Vein Splay Splay 25 Splay 12 Vein Arista Vein Baja Vein Alta Vein Splays Existing Development Intercepts Including: 4.59 g/t Au, 22 g/t Ag, 0.34% Cu, 1.95% Pb & 10.85% Zn (9.94 g/t AuEq) over 1.2 m from Hole 113705. Arista De
Slide 39: Arista Vein System Plan View
Arista Vein System Plan View South East Splay 05 Splay 39 Vein Arista Vein Baja Vein Alta Vein Splays Existing Development Arista Vein System Plan View Splay 05 All metal AuEq g/t Arista Deposit Expansion Potential Arista Deposit Expansion Potential
Slide 40: Splay 5 Longitudinal Section
62551 62552 62553 62554 62555 62556 Splay 5 longitudinal section Splay 5 drill highlights include SampleNumber From To Interval Ag g/t Au g/t Cu% Pb% Zn% 207.10 207.72 0.62 17,362 10.70 2.01 1.77 2.49 207.72 208.04 0.32 0.59 0.10 0.24 0.32 208.04 208.93 0.89 2.08 0.54 3.28 3.99 208.93 209.92 0.99 1,
Slide 41: El Aguila Project Geology and Targets
El Aguila Project El Aguila Project Geology and Targets Geology and Targets West Target NW Target El Aguila Arista Mine/ Deposit
Slide 42: Arista Expansion: New Mineralized Potential / Discovery
Arista Vein System Plan View South East North Splay 05 Splay 13 Splay 08 Splay 25 Splay 31 Splay 39 Splay 12 Vein Arista Vein Baja Vein Alta Vein Splays Existing Development Switchback Switchback Vein Switchback Vein 15 meter intercept down hole 15 meter intercept down hole N Arista Vein System Plan
Slide 43: Switchback Vein Discovery
Hole Angle From Length Au Ag Cu Pb Zn # 513024 513028 Assays by Gold Resource Corporation, Oaxaca, Mexico. S WITCHBACK S WITCHBACK V EIN V EIN D ISCOVERY D ISCOVERY (deg) Meters Meters g/t g/t % % % -20 591.46 4.19 1.23 0.66 3.44 4.17 -44 589.10 15.47 2.95 0.44 0.84 2.09 Including 2.20 12.91 1.20 2.
Slide 44: El Aguila Project Target: Salina Blanca
E L E L A GUILA P ROJECT T ARGET; A GUILA P ROJECT T ARGET; S ALINA B LANCA S ALINA B LANCA Drill intercepts include Silver Meters (down hole) 1470 g/t 0.74 El Aguila
Slide 45: Las Margaritas Drill Highlights
L AS L AS M ARGARITAS M ARGARITAS D RILL D RILL H IGHLIGHTS H IGHLIGHTS 3.49 g/t Au, 1,705 g/t Ag, 0.01% Cu, 0.85% Pb & 1.71% Zn (36.52 AuEq g/t) over 0.37 m in Hole 313009 Previous drill intercepts include Gold Silver Meters (down hole) 27.90 g/t 2600 g/t 2.85 Las Margaritas
Slide 46: El Aguila Las Margaritas Property: Geologic Model
El Aguila Las Margaritas Property Geologic Model / High-Grade Skarn Potential Geologic Model / High-Grade Skarn Potential El Aguila Las Margarita s Arista Deposit Porphyry Cu, Au, Mo Distal Skarn Au/Zn-Pb Carbonate- replacement Zn-Pb-Ag+Au (or Cu) Sediment hosted distal disseminated Au-As+Sb+Hg Skar
Slide 47: Geologic Model / High-Grade Skarn Potential
Geologic Model / High-Grade Skarn Potential Geologic Model / High-Grade Skarn Potential
Slide 48: Geologic Model: High-Grade Skarn Potential
Geologic Model Geologic Model High-Grade Skarn Potential High-Grade Skarn Potential Short note: Review from DH 112701 and the skarn potential at Arista Project DH 112701 from 0.00 to 116.26 m shows a series of volcanic andesitic units from andesite flow to lapilli tuff with strong argillic alteratio
Slide 49: Regional Airborne Magnetic Survey
Regional Airborn Magnetic survey Regional Airborn Magnetic survey Flyover area Dr. Ellis 2013
Slide 50: Regional Airborne Magnetic Survey
Regional Airborn Regional Airborn Magnetic survey Magnetic survey Arista Deposit Dr. Ellis 2013
Slide 51: El Aguila Project Skarn Potential
El Aguila Project El Aguila Project Skarn Potenital Skarn Potenital Large Intrusive 3D Combined Chargeability 3D Combined Chargeability Arista Vein System Skarn? Dr. Ellis 2013
Slide 52: 3D Combined Chargeability
3D Combined Chargeability El Aguila Project El Aguila Project Skarn Potential Skarn Potential Dr. Ellis 2013
Slide 53: The Road Traveled and Road Ahead
The Road Traveled and Road Ahead The Road Traveled and Road Ahead 2012 Overcame adversity 37% production increase $36.5 million paid in dividends 2013 Remain focused on current business model and business plan A year of expansion Position Company to weather metal market volatility
Slide 54: Thank You For Your Support
Thank You For Your Support Thank You For Your Support