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): March 8, 2016
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 2.02 Results of Operations and Financial Condition.
On March 8, 2016, Gold Resource Corporation issued a news release reporting its financial results for the period ended December 31, 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 9.01 Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are furnished with this report:
99.1 |
News Release dated March 8, 2016 |
2
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.
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GOLD RESOURCE CORPORATION |
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Date: March 8, 2016 |
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By: |
/s/ Jason D. Reid |
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Name: |
Jason D. Reid |
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Title: |
Chief Executive Officer and President |
3
EXHIBIT INDEX
Exhibit Number |
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Description of Exhibit |
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99.1 |
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News Release dated March 8, 2016. |
4
FOR IMMEDIATE RELEASE |
NEWS |
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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
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$3.1 million net income, or $0.06 per share |
· |
$92.7 million net sales |
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29,644 gold ounces produced |
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2,506,337 silver ounces produced |
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63,963 precious metal gold equivalent ounces produced (73.1:1 realized silver-to-gold ratio) |
· |
61,095 precious metal gold equivalent ounces sold |
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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 |
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$3.0 million physical gold and silver bullion treasury |
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$6.5 million annual dividends paid, or $0.12 per share |
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$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
1
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:
2
Production and Sales Statistics - Arista Underground Mine
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Three months ended December 31, |
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Year ended December 31, |
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2015 |
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2014 |
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2015 |
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2014 |
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Milled |
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Tonnes Milled |
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113,436 |
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91,830 |
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413,626 |
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375,623 |
Tonnes Milled per Day (1) |
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1,350 |
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1,068 |
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1,220 |
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1,111 |
Grade |
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Average Gold Grade (g/t) |
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2.36 |
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3.30 |
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2.47 |
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3.21 |
Average Silver Grade (g/t) |
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169 |
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290 |
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203 |
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296 |
Average Copper Grade (%) |
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0.42 |
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0.50 |
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0.40 |
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0.43 |
Average Lead Grade (%) |
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1.37 |
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1.75 |
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1.37 |
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1.57 |
Average Zinc Grade (%) |
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4.73 |
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4.95 |
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4.04 |
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4.21 |
Recoveries |
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Average Gold Recovery (%) |
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89 |
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91 |
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90 |
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92 |
Average Silver Recovery (%) |
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93 |
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92 |
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93 |
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92 |
Average Copper Recovery (%) |
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80 |
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79 |
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80 |
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78 |
Average Lead Recovery (%) |
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71 |
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80 |
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74 |
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77 |
Average Zinc Recovery (%) |
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86 |
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85 |
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83 |
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83 |
Mill production (before payable metal deductions) (2) |
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Gold (ozs.) |
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7,684 |
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8,865 |
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29,644 |
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35,552 |
Silver (ozs.) |
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573,726 |
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790,738 |
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2,506,337 |
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3,297,204 |
Copper (tonnes) |
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382 |
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363 |
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1,310 |
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1,254 |
Lead (tonnes) |
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1,103 |
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1,282 |
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4,174 |
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4,555 |
Zinc (tonnes) |
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4,600 |
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3,856 |
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13,900 |
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13,195 |
Payable metal sold |
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Gold (ozs.) |
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7,430 |
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6,026 |
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29,424 |
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25,872 |
Silver (ozs.) |
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542,892 |
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827,386 |
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2,312,985 |
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2,998,685 |
Copper (tonnes) |
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361 |
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388 |
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1,238 |
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1,139 |
Lead (tonnes) |
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982 |
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1,270 |
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3,857 |
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4,208 |
Zinc (tonnes) |
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3,810 |
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3,450 |
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11,478 |
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10,833 |
Average metal prices realized (3) |
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Gold ($ per oz.) |
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1,091 |
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1,169 |
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1,156 |
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1,260 |
Silver ($ per oz.) |
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14.95 |
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15.07 |
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15.82 |
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18.48 |
Copper ($ per tonne) |
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4,716 |
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6,480 |
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5,226 |
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6,770 |
Lead ($ per tonne) |
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1,636 |
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1,927 |
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1,718 |
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2,088 |
Zinc ($ per tonne) |
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1,545 |
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2,181 |
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1,836 |
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2,200 |
Precious metal gold equivalent ounces produced (mill production) (2)(4) |
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Gold Ounces |
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7,684 |
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8,865 |
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29,644 |
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35,552 |
Gold Equivalent Ounces from Silver |
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7,864 |
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10,192 |
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34,319 |
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48,351 |
Total Precious Metal Gold Equivalent Ounces |
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15,548 |
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19,057 |
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63,963 |
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83,903 |
Precious metal gold equivalent ounces sold (4) |
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Gold Ounces |
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7,430 |
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6,026 |
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29,424 |
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25,872 |
Gold Equivalent Ounces from Silver |
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7,441 |
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10,664 |
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31,671 |
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43,973 |
Total Precious Metal Gold Equivalent Ounces |
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14,871 |
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16,690 |
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61,095 |
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69,845 |
Total cash cost (before by-product credits) per precious metal gold equivalent ounce sold (including royalties) (5) |
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$ |
1,170 |
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$ |
1,298 |
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$ |
1,076 |
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$ |
1,025 |
Total cash costs, after by-product credits, per precious metal gold equivalent ounce sold (including royalties) (5) |
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$ |
551 |
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$ |
550 |
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$ |
517 |
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$ |
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.
3
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
5
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.
6
GOLD RESOURCE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except share and per share amounts)
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December 31, |
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December 31, |
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2015 |
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2014 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
12,822 |
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$ |
27,541 |
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Gold and silver bullion |
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2,988 |
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3,447 |
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Accounts receivable |
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321 |
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1,416 |
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Inventories |
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8,753 |
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7,295 |
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IVA taxes receivable |
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1,332 |
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|
575 |
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Income tax receivable |
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3,794 |
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- |
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Prepaid expenses and other current assets |
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2,608 |
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|
2,935 |
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Total current assets |
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32,618 |
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43,209 |
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Property, plant and mine development, net |
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51,637 |
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32,348 |
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Deferred tax assets |
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21,064 |
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26,197 |
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Investments in equity securities |
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231 |
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2,620 |
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Other non-current assets |
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|
985 |
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1,609 |
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Total assets |
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$ |
106,535 |
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$ |
105,983 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
11,600 |
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$ |
3,892 |
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Accrued expenses and other current liabilities |
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|
2,140 |
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|
3,923 |
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Capital lease obligations |
|
|
842 |
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|
1,498 |
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Income taxes payable |
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|
- |
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|
2,079 |
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Mining royalty taxes payable |
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|
230 |
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|
2,088 |
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Dividends payable |
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|
90 |
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|
542 |
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Total current liabilities |
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|
14,902 |
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|
14,022 |
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Capital lease obligations |
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|
- |
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|
834 |
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Reclamation and remediation liabilities |
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|
2,815 |
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|
2,993 |
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Total liabilities |
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|
17,717 |
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|
17,849 |
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Shareholders' equity: |
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|
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Preferred stock - $0.001 par value, 5,000,000 shares authorized: |
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no shares issued and outstanding |
|
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- |
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- |
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Common stock - $0.001 par value, 100,000,000 shares authorized: |
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|
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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 |
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|
55 |
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Additional paid-in capital |
|
|
96,766 |
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|
93,094 |
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Accumulated (deficit) / retained earnings |
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(948) |
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|
2,040 |
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Treasury stock at cost, 336,398 shares |
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(5,884) |
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(5,884) |
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Accumulated other comprehensive loss |
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(1,171) |
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|
(1,171) |
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Total shareholders' equity |
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|
88,818 |
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|
88,134 |
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Total liabilities and shareholders' equity |
|
$ |
106,535 |
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$ |
105,983 |
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7
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)
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|
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
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