Gold Resource (GORO) Q1 2026 earnings summary

Executive summary

• Net income of $4.7 million ($0.03 per share) for Q1 2026, reflecting increased production, higher realized metal prices, and a return to profitability year-over-year.

• Achieved gold equivalent production of 10,765 oz at DDG, exceeding budget by 8% despite a 10% lower throughput, with 8,749 gold equivalent ounces sold in Q1 2026.

• Maintained strong liquidity with $40.2 million in working capital and $31.0 million in cash as of March 31, 2026.

• Entered a definitive merger agreement with Goldgroup Mining Inc.; shareholders to receive 1.4476 Goldgroup shares per share, adjusted to 0.3619 after consolidation; transaction expected to close in Q3 2026, with regulatory approval received from Mexican authorities.

• Mining operations commenced at Alta Gracia in February, with ongoing underground and surface drilling campaigns supporting production planning and resource expansion.

Financial highlights

• Net sales for Q1 2026 were $43.9 million, up 256% year-over-year, with net income of $4.7 million and mine gross profit of $19.0 million.

• Cash balance at March 31, 2026, stood at $31.0 million, and working capital was $40.2 million.

• Total cash costs per AuEq ounce were $2,164; all-in sustaining cost per AuEq ounce was $3,476.

• Average realized gold price was $5,098/oz and silver $98.09/oz, both significantly higher than Q1 2025.

• Cash provided by operating activities was $14.9 million, up from a $0.8 million outflow in Q1 2025.

Outlook and guidance

• Merger with Goldgroup Mining Inc. anticipated to close in Q3 2026, pending shareholder approval and customary conditions.

• Focus remains on optimizing DDGM operations, expanding exploration, and advancing the Back Forty Project, with feasibility and permitting activities underway.

• Ongoing exploration and drilling programs are expanding resources and improving margins.

• Disciplined execution, safety, cost, and grade control are priorities during the merger process.