8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November3, 2015

GOLD RESOURCE CORPORATION

(Exact name of registrant as specified in its charter)

Colorado	001-34857	84-1473173
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

2886 Carriage Manor Point, Colorado Springs, Colorado 80906

(Address of Principal Executive Offices) (Zip Code)

(303) 320-7708

(Registrant’s telephone number including area code) 

Check the appropriate box below if the form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

1.01

Item 2.02Results of Operations and Financial Condition.

On November3, 2015, Gold Resource Corporation issued a news release reporting its financial results for the period ended September  30,  2015. A copy of the news release is attached as Exhibit 99.1 to this report.

In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any of the Company’s filings or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01Financial Statements and Exhibits.

(d)Exhibits. The following exhibits are furnished with this report:

99.1 News Release dated November3, 2015

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SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

	GOLD RESOURCE CORPORATION
Date: November3, 2015	By:	/s/ Jason D. Reid
	Name:	Jason D. Reid
	Title:	Chief Executive Officer and President

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EXHIBIT INDEX

Exhibit Number	Description of Exhibit
99.1	News Release dated November3, 2015.

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EX-99.1

FOR IMMEDIATE RELEASE	NEWS
November3, 2015	NYSE MKT: GORO

GOLD RESOURCE CORPORATION REPORTS THIRD QUARTER RESULTS

COLORADO SPRINGS – November 3, 2015 – Gold Resource Corporation (NYSE MKT: GORO) (the “Company”) reported production results for the third quarter ended September 30, 2015 of 6,825 ounces of gold, 561,985 ounces of silver ounces, or 14,133 precious metal gold equivalent (AuEq) ounces (calculated at actual sales price ratio of 77:1), which generated $19.4 million in net revenue for the quarter.  Gold Resource Corporation is a gold and silver producer with operations in Oaxaca, Mexico and exploration in Nevada, USA.  The Company has returned over $107 million to shareholders in monthly dividends since commercial production commenced July 1, 2010, and offers shareholders the option to convert their cash dividends and take delivery in physical gold and silver.

2015 Q3 HIGHLIGHTS

· 14,133 ounces AuEq mill production

· 12,773 ounces AuEq sold

· $19.4 million sales, net

· $603 total cash cost per ounce AuEq (after by-product credits)

· $6.4 million adjusted cash flow from mine site operations

· $8.3 million by-product credits, or $647 per ounce AuEq sold

· $1.6 million dividend distributions, or $0.03 per share for quarter

Overview of Q3 2015 Aguila Project Results

Gold Resource Corporation’s Aguila Project produced 14,133 ounces AuEq at a total cash cost of $603 per ounce (after by-product credits).  Realized average metal price sales during the quarter were $1,115 per ounce gold and $14.50 per ounce silver.  The Company recorded a net loss of $0.5 million, or $(0.01) per share.  Adjusted cash flow from mine site operations totaled $6.4 million.  The Company paid $1.6 million to shareholders in dividends, or $0.03 per share during the quarter.  Cash and cash equivalents at quarter end totaled $14.1 million.  Realized gold and silver prices decreased 14% and 28%, respectively, compared to the third quarter of 2014.

Production for the first three quarters of 2015 totaled 21,960 ounces of gold and 1,932,611 ounces of silver.  With the weaker than expected 2015 second and third quarter performance, the Company confirms its prior announcement related to the revised 2015 Outlook which reduced annual production targets to 29,600 gold ounces and 2,500,000 silver ounces, a reduction of 6% for gold ounces, and 16% for silver ounces.

The following table summarizes certain information about our mining operations for the three and ninemonths ended September 30, 2015 and 2014:

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Production and Sales Statistics - Arista Underground Mine

	Three months ended  September 30,				Nine months ended September 30,
	2015		2014		2015		2014
Milled
Tonnes Milled		105,309		79,568		300,190		283,793
Tonnes Milled per Day		1,143		865		1,104		1,040
Grade
Average Gold Grade (g/t)		2.25		2.78		2.52		3.18
Average Silver Grade (g/t)		180		291		216		297
Average Copper Grade (%)		0.41		0.47		0.39		0.40
Average Lead Grade (%)		1.41		2.12		1.37		1.52
Average Zinc Grade (%)		4.02		5.67		3.78		3.97
Recoveries
Average Gold Recovery (%)		90		92		90		92
Average Silver Recovery (%)		92		92		93		92
Average Copper Recovery (%)		80		76		79		78
Average Lead Recovery (%)		75		80		75		76
Average Zinc Recovery (%)		83		85		82		83
Mill production (before payable metal deductions)(1)
Gold (ozs.)		6,825		6,523		21,960		26,687
Silver (ozs.)		561,985		687,240		1,932,611		2,506,466
Copper (tonnes)		343		284		929		891
Lead (tonnes)		1,114		1,350		3,071		3,273
Zinc (tonnes)		3,499		3,816		9,299		9,340
Payable metal sold
Gold (ozs.)		6,220		2,932		21,994		19,846
Silver (ozs.)		503,929		575,413		1,770,093		2,171,298
Copper (tonnes)		332		228		877		751
Lead (tonnes)		1,049		1,204		2,875		2,938
Zinc (tonnes)		2,905		2,976		7,668		7,383
Average metal prices realized (2)
Gold ($ per oz.)		1,115		1,295		1,177		1,287
Silver ($ per oz.)		14.50		20.24		16.09		19.77
Copper ($ per tonne)		4,883		7,103		5,436		6,920
Lead ($ per tonne)		1,619		2,238		1,746		2,157
Zinc ($ per tonne)		1,701		2,394		1,981		2,209
Precious metal gold equivalent ounces produced (mill production) (1)(3)(4)
Gold Ounces		6,825		6,523		21,960		26,687
Gold Equivalent Ounces from Silver		7,308		10,739		26,410		38,495
Total Precious Metal Gold Equivalent Ounces		14,133		17,262		48,370		65,182
Precious metal gold equivalent ounces sold (3)(4)
Gold Ounces		6,220		2,932		21,994		19,846
Gold Equivalent Ounces from Silver		6,553		8,991		24,189		33,348
Total Precious Metal Gold Equivalent Ounces		12,773		11,923		46,183		53,194
Total cash cost (before by-product credits) per precious metal gold equivalent ounce sold (including royalties) (5)	$	1,250	$	1,324	$	1,046	$	958
Total cash costs, after by-product credits, per precious metal gold equivalent ounce sold (including royalties) (5)	$	603	$	364	$	505	$	434

(1) 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.

(2) 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.

(3) For the three months ended September 30, 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 1,204 gold equivalent ounces and a decrease in gold equivalent ounces contained in ending inventory of approximately 121 ounces.

(4) For the nine months ended September 30, 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 3,687 gold equivalent ounces and a decrease in gold equivalent ounces contained in ending inventory of approximately 279 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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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 54,179,369 shares outstanding, no warrants, no long term debt and has returned over $107 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 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 the results of operations for Gold Resource Corporation for the three and nine months ended September 30, 2015 and 2014, its financial condition at September 30, 2015 and December 31, 2014 and its cash flows for the nine months ended September 30, 2015 and 2014.  The summary data for the three and nine months ended September 30, 2015 is unaudited; the summary data for the year ended December 31, 2014 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2014, 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.

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-Q and Form 10-K for a complete discussion and reconciliation of the non-GAAP measures.

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GOLD RESOURCE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

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

	September 30,		December 31,
	2015		2014
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	14,105	$	27,541
Gold and silver bullion		3,160		3,447
Accounts receivable		1,851		1,416
Inventories		9,347		7,295
IVA taxes receivable		1,870		575
Deferred tax assets		3,891		3,891
Prepaid expenses and other current assets		1,932		2,935
Total current assets		36,156		47,100
Property, plant and mine development, net		47,808		32,348
Deferred tax assets		27,040		25,519
Investments in equity securities		894		2,620
Other non-current assets		2,964		4,078
Total assets	$	114,862	$	111,665
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	8,201	$	3,892
Accrued expenses and other current liabilities		5,124		3,923
Capital lease obligations		1,220		1,498
Income taxes payable		3,348		7,907
Dividends payable		542		542
Total current liabilities		18,435		17,762
Capital lease obligations		-		834
Reclamation and remediation liabilities		2,537		2,993
Total liabilities		20,972		21,589
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:
54,515,767 shares issued and outstanding		55		55
Additional paid-in capital		96,387		93,094
Retained earnings		4,503		3,982
Treasury stock at cost, 336,398 shares		(5,884)		(5,884)
Accumulated other comprehensive loss		(1,171)		(1,171)
Total shareholders' equity		93,890		90,076
Total liabilities and shareholders' equity	$	114,862	$	111,665

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GOLD RESOURCE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

for the three and ninemonths ended September  30, 2015 and 2014

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

(Unaudited)

	Three months ended  September 30,				Nine months ended September 30,
	2015		2014		2015		2014
Sales, net	$	19,437	$	21,052	$	71,082	$	85,873
Mine cost of sales:
Production costs		13,411		13,025		40,462		43,107
Depreciation and amortization		1,579		1,180		5,195		2,969
Reclamation and remediation		6		-		36		-
Total mine cost of sales		14,996		14,205		45,693		46,076
Mine gross profit		4,441		6,847		25,389		39,797
Costs and expenses:
General and administrative expenses		2,913		4,361		8,032		9,623
Exploration expenses		1,810		2,901		6,416		5,786
Total costs and expenses		4,723		7,262		14,448		15,409
Operating (loss) income		(282)		(415)		10,941		24,388
Other (expense) income, net		(1,033)		69		(2,080)		766
(Loss) income before income taxes		(1,315)		(346)		8,861		25,154
Provision for income taxes		(846)		1,109		3,465		12,264
Net (loss) income	$	(469)	$	(1,455)	$	5,396	$	12,890
Net (loss) income per common share:
Basic	$	(0.01)	$	(0.03)	$	0.10	$	0.24
Diluted	$	(0.01)	$	(0.03)	$	0.10	$	0.24
Weighted average shares outstanding:
Basic		54,179,369		54,179,369		54,179,369		54,098,783
Diluted		54,179,369		54,179,369		54,201,274		54,698,748

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GOLD RESOURCE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

for the nine months ended September  30, 2015 and 2014

(U.S. dollars in thousands)

(Unaudited)

	2015		2014
Cash flows from operating activities:
Net income	$	5,396	$	12,890
Adjustments to reconcile net income to net cash from operating activities:
Depreciation, depletion and amortization		6,331		3,107
Stock-based compensation		3,293		3,847
Deferred income taxes		(1,522)		-
Currency exchange (gain) loss		(326)		545
Unrealized loss (gain) on investments		1,726		(1,504)
Other operating adjustments		1,072		162
Changes in operating assets and liabilities:
Accounts receivable		(435)		(3,699)
Inventories		(1,149)		(1,582)
Prepaid expenses and other current assets		(897)		1,354
Accounts payable and other accrued liabilities		5,069		(731)
Income taxes payable/receivable		(4,528)		11,907
Other noncurrent assets		466		-
Net cash provided by operating activities		14,496		26,296
Cash flows from investing activities:
Capital expenditures		(21,837)		(10,524)
Investments		-		(1,805)
Proceeds from sale of building		-		1,737
Other investing activities		40		23
Net cash used in investing activities		(21,797)		(10,569)
Cash flows from financing activities:
Proceeds from exercise of stock options		-		100
Dividends paid		(4,876)		(4,868)
Repayment of capital leases		(1,123)		(1,099)
Net cash used in financing activities		(5,999)		(5,867)
Effect of exchange rate changes on cash and cash equivalents		(136)		(33)
Net (decrease) increase in cash and cash equivalents		(13,436)		9,827
Cash and cash equivalents at beginning of period		27,541		14,973
Cash and cash equivalents at end of period	$	14,105	$	24,800
Supplemental Cash Flow Information
Interest expense paid	$	65	$	139
Income and mining taxes paid	$	8,464	$	-

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