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FOR IMMEDIATE RELEASE

NEWS

March 8, 2016

NYSE MKT: GORO

 

GOLD RESOURCE CORPORATION REPORTS 2015 $3.1M NET INCOME AND FIVE CONSECUTIVE YEARS OF PROFITABILITY; PROVIDES 2016 PRODUCTION OUTLOOK

 

COLORADO SPRINGS – March 8, 2016 – Gold Resource Corporation (NYSE MKT: GORO) (the “Company”) today announced it remained profitable during the precious metal bear market of 2015 reporting $3.1 million in net income and its fifth consecutive year of profitability. The Company also confirmed its previously announced 2015 annual mill production of 29,644 gold ounces and 2,506,337 silver ounces for 63,963 precious metal gold equivalent ounces (at a realized 73.1:1 silver-to-gold ratio). The Company announced its 2016 precious metal Outlook targeting a plus or minus 5 percent production range consisting of 26,000 ounces gold and 1.9 million ounces silver. Gold Resource Corporation is a gold and silver producer with operations in Oaxaca, Mexico and exploration in Nevada, USA. The Company has returned $108 million to shareholders in monthly dividends since commercial production began July 1, 2010, and offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery.

 

2015 Annual  Highlights

·

$3.1 million net income, or $0.06 per share

·

$92.7 million net sales

·

29,644 gold ounces produced

·

2,506,337 silver ounces produced 

·

63,963 precious metal gold equivalent ounces produced (73.1:1 realized silver-to-gold ratio)

·

61,095 precious metal gold equivalent ounces sold

·

1,310 tonnes copper, 4,174 tonnes lead and 13,900 tonnes zinc production

·

$517 total cash cost per precious metal gold equivalent ounce

·

$1,013 all in annual sustaining cash cost per ounce (“AISC”); Q4 AISC reduced to $891 per ounce 

·

$12.8 million cash and cash equivalents

·

$3.0 million physical gold and silver bullion treasury

·

$6.5 million annual dividends paid, or $0.12 per share

·

$108 million total dividends paid over 65 consecutive monthly distributions

·

Continued high-grade Arista and Switchback vein system intercepts in Mexico

·

Acquired Gold Mesa option doubling Nevada, U.S.A. exploration land position

2015 Aguila Project Overview

 

“Although 2015 proved to be another difficult and challenging year for both precious metals and precious metal producers, I am very proud that Gold Resource Corporation not only overcame many challenges, but delivered its fifth consecutive year of profitability, four of which were in bear markets,” stated Gold Resource Corporation CEO and President, Mr. Jason Reid. “While we watched several industry peers declare bankruptcy during 2015’s tough and volatile metal market, our Company posted annual net income of $3.1 million or $0.06 per share, returned $6.5 million

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back to our shareholders through dividends, and continued to invest in the Company’s future growth in Mexico and Nevada. We accomplished this without raising money and without going into debt. Though our Company performed well during the year given the circumstances, overall 2015 was difficult with precious metal prices under continued downward pressure which required occasional drastic action and modifications to our budget and business plan to adjust to the falling metals market. It is these difficult years that challenge companies to become leaner and more efficient, which positions them to survive and prosper during the next precious metal bull market to come.”

 

For the year ended December 31, 2015, the Company sold 61,095 precious metal gold equivalent ounces at a total cash cost of $517 per gold equivalent ounce. Realized 2015 average sales prices were $1,156 per ounce gold and $15.82 per ounce silver. The Company recorded revenues of $92.7 million, mine gross profit of $30.3 million, and net income of $3.1 million, or $0.06 per share. Base metal production generated $34.2 million in revenue for 2015.

 

The calculation of our cash cost per ounce contained in this press release is a non-GAAP financial measure. Please see "Management's Discussion and Analysis and Results of Operation" contained in the Company’s most recent Form 10-K for a complete discussion and reconciliation of the non-GAAP measures.

 

Below are certain key operating statistics for our La Arista underground mine for 2015 and 2014:

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Production and Sales Statistics - Arista Underground Mine

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended  December 31, 

 

Year ended December 31, 

 

    

2015

    

2014

 

2015

 

2014

Milled

 

 

 

 

 

 

 

 

 

 

 

 

Tonnes Milled

 

 

113,436

 

 

91,830

 

 

413,626

 

 

375,623

Tonnes Milled per Day (1)

 

 

1,350

 

 

1,068

 

 

1,220

 

 

1,111

Grade

 

 

 

 

 

 

 

 

 

 

 

 

Average Gold Grade (g/t)

 

 

2.36

 

 

3.30

 

 

2.47

 

 

3.21

Average Silver Grade (g/t)

 

 

169

 

 

290

 

 

203

 

 

296

Average Copper Grade (%)

 

 

0.42

 

 

0.50

 

 

0.40

 

 

0.43

Average Lead Grade (%)

 

 

1.37

 

 

1.75

 

 

1.37

 

 

1.57

Average Zinc Grade (%)

 

 

4.73

 

 

4.95

 

 

4.04

 

 

4.21

Recoveries

 

 

 

 

 

 

 

 

 

 

 

 

Average Gold Recovery (%)

 

 

89

 

 

91

 

 

90

 

 

92

Average Silver Recovery (%)

 

 

93

 

 

92

 

 

93

 

 

92

Average Copper Recovery (%)

 

 

80

 

 

79

 

 

80

 

 

78

Average Lead Recovery (%)

 

 

71

 

 

80

 

 

74

 

 

77

Average Zinc Recovery (%)

 

 

86

 

 

85

 

 

83

 

 

83

Mill production (before payable metal deductions) (2)

 

 

 

 

 

 

 

 

 

 

 

 

Gold (ozs.)

 

 

7,684

 

 

8,865

 

 

29,644

 

 

35,552

Silver (ozs.)

 

 

573,726

 

 

790,738

 

 

2,506,337

 

 

3,297,204

Copper (tonnes)

 

 

382

 

 

363

 

 

1,310

 

 

1,254

Lead (tonnes)

 

 

1,103

 

 

1,282

 

 

4,174

 

 

4,555

Zinc (tonnes)

 

 

4,600

 

 

3,856

 

 

13,900

 

 

13,195

Payable metal sold

 

 

 

 

 

 

 

 

 

 

 

 

Gold (ozs.)

 

 

7,430

 

 

6,026

 

 

29,424

 

 

25,872

Silver (ozs.)

 

 

542,892

 

 

827,386

 

 

2,312,985

 

 

2,998,685

Copper (tonnes)

 

 

361

 

 

388

 

 

1,238

 

 

1,139

Lead (tonnes)

 

 

982

 

 

1,270

 

 

3,857

 

 

4,208

Zinc (tonnes)

 

 

3,810

 

 

3,450

 

 

11,478

 

 

10,833

Average metal prices realized (3)

 

 

 

 

 

 

 

 

 

 

 

 

Gold ($ per oz.)

 

 

1,091

 

 

1,169

 

 

1,156

 

 

1,260

Silver ($ per oz.)

 

 

14.95

 

 

15.07

 

 

15.82

 

 

18.48

Copper ($ per tonne)

 

 

4,716

 

 

6,480

 

 

5,226

 

 

6,770

Lead ($ per tonne)

 

 

1,636

 

 

1,927

 

 

1,718

 

 

2,088

Zinc ($ per tonne)

 

 

1,545

 

 

2,181

 

 

1,836

 

 

2,200

Precious metal gold equivalent ounces produced (mill production) (2)(4)

 

 

 

 

 

 

 

 

 

 

 

 

Gold Ounces

 

 

7,684

 

 

8,865

 

 

29,644

 

 

35,552

Gold Equivalent Ounces from Silver

 

 

7,864

 

 

10,192

 

 

34,319

 

 

48,351

Total Precious Metal Gold Equivalent Ounces

 

 

15,548

 

 

19,057

 

 

63,963

 

 

83,903

Precious metal gold equivalent ounces sold (4)

 

 

 

 

 

 

 

 

 

 

 

 

Gold Ounces

 

 

7,430

 

 

6,026

 

 

29,424

 

 

25,872

Gold Equivalent Ounces from Silver

 

 

7,441

 

 

10,664

 

 

31,671

 

 

43,973

Total Precious Metal Gold Equivalent Ounces

 

 

14,871

 

 

16,690

 

 

61,095

 

 

69,845

Total cash cost (before by-product credits) per precious metal gold equivalent ounce sold (including royalties) (5)

 

$

1,170

 

$

1,298

 

$

1,076

 

$

1,025

Total cash costs, after by-product credits, per precious metal gold equivalent ounce sold (including royalties) (5)

 

$

551

 

$

550

 

$

517

 

$

449

(1)Based on actual days the mill operated during the year.

(2)Mill production represents metal contained in concentrates produced at the mill, which is before payable metal deductions are levied by the buyer of our concentrates. Payable metal deduction quantities are defined in our contracts with the buyer of our concentrates and represent an estimate of metal contained in the concentrates produced at our mill which the buyer cannot recover through the smelting process. There are inherent limitations and differences in the sampling method and assaying of estimated metal contained in concentrates that are shipped, and those contained metal estimates are derived from sampling methods and assaying throughout the mill production process. The Company monitors these differences to ensure that precious metal mill production quantities are materially correct.

(3)Average metal prices realized vary from the market metal prices due to final settlement adjustments from our provisional invoices when they are settled. Our average metal prices realized will therefore differ from the market average metal prices in most cases.

(4)For the twelve months ended December 31, 2015, precious metal gold equivalent mill production differs from gold equivalent ounces sold due principally to buyer (smelter) concentrate processing and other deductions of approximately 2,868 gold equivalent ounces and a decrease in gold equivalent ounces contained in ending inventory of approximately 677 ounces.

(5)For a reconciliation of this non-GAAP measure to total mine cost of sales, which is the most comparable U.S. GAAP measure, please see Non-GAAP Measures.

 

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2016 Production Outlook

 

In 2016, the Company is targeting production (with ranges based on plus or minus 5%) of approximately 26,000 ounces gold, 1.9 million ounces silver, 1,100 tonnes copper, 3,200 tonnes lead and 12,900 tonnes zinc. The target range was estimated based on the Company’s 2016 mine plan, the area of the deposit scheduled to be mined during the upcoming year and the estimated grade fluctuations.

 

In response to the continued bear market and challenging gold and silver prices, in 2016 the Company remains focused on mining tonnes based on net smelter return “NSR” values per tonne of all metals to maximize cash flow. The Company will continue to focus on overall margin from all metals and less specifically on precious metal ounces. Base metal production generally results in lower production costs per tonne and per ounce when used as a credit against precious production costs. The Company targets sufficient precious and base metal production in 2016 to support its plans for capital expenditures, exploration, dividends, taxes and future growth with a focus on increasing future gold and silver production when higher precious metal prices return.

 

Mr. Reid continued, “I am optimistic the recent upward turn in precious metals during the first months of 2016 may be indicative of a better year ahead for precious metals and the industry. Having said that, we are preparing the Company for another challenging year to come in the precious metal space as reflected in our December 2015 decrease in monthly dividend distributions and our lean 2016 operating budgets. As we prepare for the worst and hope for the best in 2016, it is our charge to not only survive what could be another difficult year ahead, but to do so once again at a profit which is exceptional for this industry right now. When a sustained bull market ultimately returns, we look forward to the potential options of bigger budgets, better outlooks and increased dividends.”

 

2016 Proven & Probable Reserve Update

 

The Company recently updated its Proven and Probable Reserve Report as of December 31, 2015 in which it replaced the tonnes mined during 2015 along with a small increase in reserve tonnage, maintaining a mine life in excess of three years at the Arista deposit, depending on future production levels. For additional details on the updated reserve report, please view the press release dated March 8, 2016. The updated reserve report will be available on the Company’s website.

 

Project Update

 

A primary goal in 2015 was the continued development of the Arista underground mine to provide increased tonnage to the Aguila mill. During 2015 the Company mined 12 separate veins between levels 4 and 20, with the bulk of production coming from the 15 to 19 levels. In 2015, the Company averaged 1,220 tonnes per day milled or 413,626 tonnes for the year, a 10% increase over 2014 tonnages of 1,111 tonnes per day or 375,623 tonnes per year. The nominal design capacity at the Aguila mill is 1,500 tonnes per day.  

 

Arista’s primary decline ramp development has now passed level 21 and stopes are being developed on multiple levels. Infill and step-out drilling continues to expand the mineralized horizon at Arista with continued plans to drill vein extensions along strike, at depth and parallel to the main deposit. 

 

Arista mine development plans in 2016 include the completion of a second drift from the Arista vein system to the Switchback vein system, located approximately seven levels (140 meters) below the first drift driven to Switchback in 2015 from the fourteen level. Construction of this second drift to Switchback began in mid-January with a goal to complete it during the third quarter of 2016, development advancement timing dependent on drift progression, rock competency, and potential water courses that may be encountered during development. Once the second drift reaches Switchback, multiple levels are planned for development between these two drifts followed by preparation of ore blocks for future bulk tonnage mining.

 

4


 

Exploration Program

 

The highlight of 2015’s exploration program was the continued drilling and discovery of additional Arista Mine veins like the Viridiana vein at the Arista vein system and the Soledad and Sofia veins at the Switchback vein system, which now totals 27 veins and structures.  

 

A total of two exploration drills are currently in operation at the Company’s Oaxaca Mining Unit, both underground at the Arista deposit. The main exploration focus for 2016 continues to be the extensions of the Arista vein system and the Switchback vein system, both polymetallic epithermal vein systems which remain open along strike and at depth. The Company has budgeted approximately $2.1 million for exploration at its Oaxaca Mining Unit for 2016.

 

In 2015, the Company acquired the Gold Mesa property option which more than doubled its Nevada Mining Unit exploration land position. Gold Mesa is located approximately seventeen miles southwest of the Company’s Radar and Goose properties in the Walker Lane Mineral Belt, which is well known for its significant high-grade gold and silver production.  Gold Mesa, Radar and Goose are currently held for exploration purposes and the Company believes there is excellent potential for discovery of both bulk tonnage replacement-type and bonanza-grade vein-type gold deposits, similar to other gold deposits historically mined in the Paradise Peak and Goldfield districts of Nevada. The Company plans to begin its first drill campaign at the Gold Mesa property during the first half of 2016 subject to permit timing and drill contractor availability. The Company anticipates spending approximately $0.8 million on exploration in Nevada during 2016, primarily for surface drilling on the Gold Mesa property.

 

Dividends

 

On December 28, 2015 the Company announced the Board of Directors modified its monthly dividend, decreasing it from 1 cent per share per month (or 12 cents per year) to 1/6 of a cent per share per month (or 2 cents per year). Multiple factors for the decrease included continued weakness in precious and base metal commodity prices, future flexibility to advance corporate strategies and reallocation of capital to include the new Gold Mesa property. Having returned $108 million to shareholders as of the end of 2015 demonstrates the Company’s commitment to shareholder dividends.

 

About GRC:

 

Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in six potential high-grade gold and silver properties at its producing Oaxaca, Mexico Mining Unit and exploration properties at its Nevada, USA, Mining Unit. The Company has 54,266,706 shares outstanding, no warrants, no long term debt and has returned $108 million back to shareholders since commercial production commenced July 1, 2010. Gold Resource Corporation offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery. For more information, please visit GRC’s website, located at www.Goldresourcecorp.com and read the Company’s 10-K for an understanding of the risk factors involved.

 

Cautionary Statements:

 

This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words “plan”, “target”, "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation’s strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that

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production will continue at any specific rate. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Company’s 10-K filed with the SEC.

 

Contacts:

Corporate Development

Greg Patterson

303-320-7708

www.Goldresourcecorp.com 

 

 

 

See Accompanying Tables

 

The following information summarizes Gold Resource Corporations financial condition at December 31, 2015 and 2014, its results of operations including the years ended December 31, 2015, 2014 and 2013, and its cash flows for the years ended December 31, 2015, 2014 and 2013. The summary data for the years ended December 31, 2015 and 2014 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2015, but do not include the footnotes and other information that is included in the complete financial statements. Readers are urged to review the Company’s Form 10-K in its entirety, which can be found on the SEC's website at www.sec.gov.

 

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GOLD RESOURCE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 

 

December 31, 

 

 

 

2015

 

2014

 

 

    

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

12,822

 

$

27,541

 

Gold and silver bullion

 

 

2,988

 

 

3,447

 

Accounts receivable

 

 

321

 

 

1,416

 

Inventories

 

 

8,753

 

 

7,295

 

IVA taxes receivable

 

 

1,332

 

 

575

 

Income tax receivable

 

 

3,794

 

 

 -

 

Prepaid expenses and other current assets

 

 

2,608

 

 

2,935

 

Total current assets

 

 

32,618

 

 

43,209

 

Property, plant and mine development, net

 

 

51,637

 

 

32,348

 

Deferred tax assets

 

 

21,064

 

 

26,197

 

Investments in equity securities

 

 

231

 

 

2,620

 

Other non-current assets

 

 

985

 

 

1,609

 

Total assets

 

$

106,535

 

$

105,983

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

11,600

 

$

3,892

 

Accrued expenses and other current liabilities

 

 

2,140

 

 

3,923

 

Capital lease obligations

 

 

842

 

 

1,498

 

Income taxes payable

 

 

 -

 

 

2,079

 

Mining royalty taxes payable

 

 

230

 

 

2,088

 

Dividends payable

 

 

90

 

 

542

 

Total current liabilities

 

 

14,902

 

 

14,022

 

Capital lease obligations

 

 

 -

 

 

834

 

Reclamation and remediation liabilities

 

 

2,815

 

 

2,993

 

Total liabilities

 

 

17,717

 

 

17,849

 

Shareholders' equity:

 

 

 

 

 

 

 

Preferred stock - $0.001 par value, 5,000,000 shares authorized:

 

 

 

 

 

 

 

no shares issued and outstanding

 

 

 -

 

 

 -

 

Common stock - $0.001 par value, 100,000,000 shares authorized:

 

 

 

 

 

 

 

54,603,104 and 54,266,706 shares issued and outstanding, respectively, at December 31, 2015 and 54,515,767 and 54,179,369 shares issued and outstanding, respectively, at December 31, 2014

 

 

55

 

 

55

 

Additional paid-in capital

 

 

96,766

 

 

93,094

 

Accumulated (deficit) / retained earnings

 

 

(948)

 

 

2,040

 

Treasury stock at cost, 336,398 shares

 

 

(5,884)

 

 

(5,884)

 

Accumulated other comprehensive loss

 

 

(1,171)

 

 

(1,171)

 

Total shareholders' equity

 

 

88,818

 

 

88,134

 

Total liabilities and shareholders' equity

 

$

106,535

 

$

105,983

 

 

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GOLD RESOURCE CORPORATION

CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME

for the years ended December 31, 2015, 2014 and 2013

(U.S. dollars in thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 

 

 

 

    

2015

    

2014

    

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales, net

 

$

92,701

 

$

115,405

 

$

125,784

 

 

Mine cost of sales:

 

 

 

 

 

 

 

 

 

 

 

Production costs

 

 

54,362

 

 

60,241

 

 

65,022

 

 

Depreciation and amortization

 

 

7,974

 

 

4,293

 

 

2,392

 

 

Reclamation and remediation

 

 

42

 

 

 -

 

 

112

 

 

Total mine cost of sales

 

 

62,378

 

 

64,534

 

 

67,526

 

 

Mine gross profit

 

 

30,323

 

 

50,871

 

 

58,258

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

10,254

 

 

12,336

 

 

16,260

 

 

Exploration expenses

 

 

7,150

 

 

6,947

 

 

9,470

 

 

Facilities and mine construction

 

 

 -

 

 

 -

 

 

22,198

 

 

Total costs and expenses

 

 

17,404

 

 

19,283

 

 

47,928

 

 

Operating income

 

 

12,919

 

 

31,588

 

 

10,330

 

 

Other expense, net

 

 

(2,466)

 

 

(322)

 

 

(1,355)

 

 

Income before income taxes

 

 

10,453

 

 

31,266

 

 

8,975

 

 

Provision for income taxes

 

 

7,391

 

 

16,230

 

 

3,641

 

 

Net income

 

$

3,062

 

$

15,036

 

$

5,334

 

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

Currency translation gain

 

 

 -

 

 

 -

 

 

7

 

 

Comprehensive income

 

$

3,062

 

$

15,036

 

$

5,341

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.06

 

$

0.28

 

$

0.10

 

 

Diluted

 

$

0.06

 

$

0.28

 

$

0.10

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

54,186,547

 

 

54,119,095

 

 

53,255,259

 

 

Diluted

 

 

54,259,312

 

 

54,620,332

 

 

55,299,475

 

 

 

8


 

 

 

 

 

 

 

 

GOLD RESOURCE CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

for the years ended December 31, 2015, 2014 and 2013

(U.S. dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 

 

    

2015

    

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities:

    

 

 

 

 

 

 

 

 

Net income

 

$

3,062

 

$

15,036

$

5,334

 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

 

 

 

 

Deferred income taxes

 

 

5,133

 

 

3,771

 

(3,196)

 

Depreciation, depletion and amortization

 

 

9,097

 

 

4,551

 

2,626

 

Stock-based compensation

 

 

3,472

 

 

4,951

 

7,617

 

Other operating adjustments

 

 

2,999

 

 

330

 

1,588

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

1,095

 

 

891

 

4,368

 

Inventories

 

 

(555)

 

 

(231)

 

(32)

 

Prepaid expenses and other current assets

 

 

233

 

 

930

 

(5,127)

 

Accounts payable and other accrued liabilities

 

 

3,357

 

 

(2,832)

 

(548)

 

Mining and income taxes payable/receivable

 

 

(7,721)

 

 

10,256

 

(5,756)

 

Other noncurrent assets

 

 

(2)

 

 

 -

 

 -

 

Net cash provided by operating activities

 

 

20,170

 

 

37,653

 

6,874

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(26,685)

 

 

(17,898)

 

(6,703)

 

Investments

 

 

 -

 

 

(1,805)

 

(231)

 

Purchases of gold and silver bullion

 

 

 -

 

 

 -

 

(1,050)

 

Proceeds from the conversion of gold and silver bullion

 

 

37

 

 

 -

 

1,316

 

Proceeds from sale of building

 

 

 -

 

 

1,763

 

 -

 

Proceeds from sale of subsidiary, net of distributions

 

 

 -

 

 

1,291

 

 -

 

Other investing activities

 

 

(92)

 

 

32

 

 -

 

Net cash used in investing activities

 

 

(26,740)

 

 

(16,617)

 

(6,668)

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

Dividends paid

 

 

(6,502)

 

 

(6,494)

 

(25,514)

 

Proceeds from exercise of stock options

 

 

 -

 

 

100

 

645

 

Proceeds from equipment financing

 

 

 -

 

 

 -

 

4,501

 

Repayment of capital leases

 

 

(1,501)

 

 

(1,469)

 

(645)

 

Net cash used in financing activities

 

 

(8,003)

 

 

(7,863)

 

(21,013)

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(146)

 

 

(605)

 

 -

 

Net (decrease) increase in cash and cash equivalents

 

 

(14,719)

 

 

12,568

 

(20,807)

 

Cash and cash equivalents at beginning of period

 

 

27,541

 

 

14,973

 

35,780

 

Cash and cash equivalents at end of period

 

$

12,822

 

$

27,541

$

14,973

 

Supplemental Cash Flow Information

 

 

 

 

 

 

 

 

 

Interest expense paid

 

$

78

 

$

149

$

102

 

Income and mining taxes paid

 

$

9,514

 

$

939

$

14,328

 

 

9