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): August 2, 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 2.02Results of Operations and Financial Condition.

On August 2, 2016, Gold Resource Corporation issued a news release reporting its financial results for the period ended June 30, 2016. 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 August 2, 2016

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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: August 2, 2016	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 August 2, 2016.

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EX-99.1

FOR IMMEDIATE RELEASE	NEWS
August 2, 2016	NYSE MKT: GORO

GOLD RESOURCE CORPORATION REPORTS SECOND QUARTER NET INCOME OF $5.6 MILLION, OR $0.10 PER SHARE; MAINTAINS 2016 PRODUCTION OUTLOOK

COLORADO SPRINGS – August 2, 2016 – Gold Resource Corporation (NYSE MKT: GORO) (the “Company”) reported production results for the second quarter ended June 30, 2016 of 10,011 ounces of gold and 572,499 ounces of silver, which along with base metal revenue generated $26.2 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 $108 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.

2016 Q2 HIGHLIGHTS

· 10,011 gold ounces produced

· 572,499 silver ounces produced

· $26.2 million net sales

· $317 total cash cost per gold equivalent ounce (after by-product credits)

· $15.5 million adjusted cash flow from mine site operations

· $9.8 million by-product credits, or $631 per ounce sold

· $0.3 million dividend distributions, or $0.005 per share for quarter

Overview of Q2 2016 Results

Gold Resource Corporation’s Aguila Project produced 17,706 gold equivalent ounces at a total cash cost of $317 per ounce (after by-product credits).  Realized average metal price sales during the quarter were $1,271 per ounce gold and $17.08 per ounce silver.  The Company recorded net income of $5.6 million, or $0.10 per share.  Adjusted cash flow from mine site operations totaled $15.5 million.  The Company paid $0.3 million to shareholders in dividends, or $0.005 per share during the quarter.  Cash and cash equivalents at quarter end totaled $13.3 million.  Realized gold and silver prices increased 6% and 2%, respectively, compared to the second quarter of 2015.

Production for the first half of 2016 included 16,474 ounces of gold and 1,006,640 ounces of silver.  The Company maintains its 2016 Annual Outlook of 26,000 gold ounces, 1,900,000 silver ounces, 1,100 tonnes of copper, 3,200 tonnes of lead and 12,900 tonnes of zinc.

The following table summarizes certain information about our mining operations for the three and six months ended June 30, 2016 and 2015:

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	Three months ended June 30,				Six months ended June 30,
	2016		2015		2016		2015
Milled
Tonnes Milled (1)		104,333		102,522		217,478		194,881
Tonnes Milled per Day (2)		1,228		1,127		1,265		1,077
Grade
Average Gold Grade (g/t)		3.27		2.25		2.68		2.66
Average Silver Grade (g/t)		182		189		156		235
Average Copper Grade (%)		0.40		0.35		0.30		0.38
Average Lead Grade (%)		1.40		1.24		1.20		1.35
Average Zinc Grade (%)		4.40		3.59		3.90		3.65
Recoveries
Average Gold Recovery (%)		92		92		91		91
Average Silver Recovery (%)		94		93		93		93
Average Copper Recovery (%)		77		82		76		79
Average Lead Recovery (%)		71		74		71		75
Average Zinc Recovery (%)		84		82		84		82
Mill production (before payable metal deductions) (3)
Gold (ozs.)		10,011		6,788		16,474		15,135
Silver (ozs.)		572,499		580,326		1,006,640		1,370,625
Copper (tonnes)		320		293		564		586
Lead (tonnes)		1,009		943		1,847		1,956
Zinc (tonnes)		3,813		3,038		7,074		5,800
Payable metal sold
Gold (ozs.)		8,197		7,096		14,413		15,774
Silver (ozs.)		548,537		538,848		927,331		1,266,164
Copper (tonnes)		319		268		539		546
Lead (tonnes)		974		907		1,737		1,827
Zinc (tonnes)		3,424		2,559		6,023		4,763
Average metal prices realized (4)
Gold ($ per oz.)		1,271		1,201		1,240		1,202
Silver ($ per oz.)		17.08		16.70		15.97		16.72
Copper ($ per tonne)		4,740		6,022		4,497		5,773
Lead ($ per tonne)		1,717		1,908		1,757		1,819
Zinc ($ per tonne)		1,940		2,275		1,844		2,152
Precious metal gold equivalent ounces produced (mill production) (3)
Gold Ounces		10,011		6,788		16,474		15,135
Gold Equivalent Ounces from Silver		7,695		8,070		12,971		19,069
Total Precious Metal Gold Equivalent Ounces		17,706		14,858		29,445		34,204
Precious metal gold equivalent ounces sold
Gold Ounces		8,197		7,096		14,413		15,774
Gold Equivalent Ounces from Silver		7,373		7,493		11,949		17,616
Total Precious Metal Gold Equivalent Ounces		15,570		14,589		26,362		33,390
Total cash cost before by-product credits per precious metal gold equivalent ounce sold (5)	$	948	$	1,162	$	1,088	$	969
Total cash cost after by-product credits per precious metal gold equivalent ounce sold (5)	$	317	$	533	$	459	$	469
Total all-in sustaining cost per precious metal gold equivalent ounce sold (5)	$	649	$	854	$	916	$	842
Total all-in cost per precious metal gold equivalent ounce sold (5)	$	755	$	1,368	$	1,035	$	1,112

(1) For the second quarter and first half of 2016, this includes 10,608 and 27,305 tonnes, respectively of low-grade stockpile open pit ore.

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

(3) 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.

(4) 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.

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(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

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 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 six months ended June 30, 2016 and 2015, its financial condition at June 30, 2016 and December 31, 2015 and its cash flows for the six months ended June 30, 2016 and 2015. The summary data for the six months ended June 30, 2016 is unaudited; the summary data for the year ended December 31, 2015 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.

The calculation of our cash cost per precious metal gold equivalent per ounce, total all-in sustaining cost per precious metal gold equivalent per ounce and total all-in cost per precious metal gold equivalent per ounce contained in this press release are non-GAAP financial measures. Please see "Management's Discussion and Analysis and Results of Operations" 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)

	June 30,		December 31,
	2016		2015
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	13,264	$	12,822
Gold and silver rounds/bullion		3,785		2,988
Accounts receivable		2,045		321
Inventories		10,055		8,753
IVA taxes receivable		780		1,332
Income tax receivable		2,074		3,794
Prepaid expenses and other current assets		2,334		2,608
Total current assets		34,337		32,618
Property, plant and mine development, net		52,523		51,637
Deferred tax assets		19,433		21,064
Investments in equity securities		231		231
Other non-current assets		902		985
Total assets	$	107,426	$	106,535
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	6,730	$	11,600
Accrued expenses and other current liabilities		2,086		2,140
Capital lease obligations		-		842
Mining royalty taxes payable		771		230
Dividends payable		90		90
Total current liabilities		9,677		14,902
Reclamation and remediation liabilities		2,583		2,815
Total liabilities		12,260		17,717
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 at June 30, 2016 and December 31, 2015		55		55
Additional paid-in capital		96,980		96,766
Accumulated retained earnings / (deficit)		5,186		(948)
Treasury stock at cost, 336,398 shares		(5,884)		(5,884)
Accumulated other comprehensive loss		(1,171)		(1,171)
Total shareholders' equity		95,166		88,818
Total liabilities and shareholders' equity	$	107,426	$	106,535

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GOLD RESOURCE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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

(Unaudited)

	Three months ended June 30,				Six months ended June 30,
	2016		2015		2016		2015
Sales, net	$	26,198	$	23,273	$	43,601	$	51,645
Mine cost of sales:
Production costs		10,707		14,117		21,803		27,051
Depreciation and amortization		3,054		2,224		5,860		3,616
Reclamation and remediation		44		7		91		30
Total mine cost of sales		13,805		16,348		27,754		30,697
Mine gross profit		12,393		6,925		15,847		20,948
Costs and expenses:
General and administrative expenses		1,670		2,388		3,848		5,119
Exploration expenses		642		2,894		1,146		4,606
Total costs and expenses		2,312		5,282		4,994		9,725
Operating income		10,081		1,643		10,853		11,223
Other income (expense), net		538		(543)		1,244		(1,047)
Income before income taxes		10,619		1,100		12,097		10,176
Provision for income taxes		5,011		288		5,692		4,311
Net income	$	5,608	$	812	$	6,405	$	5,865
Net income per common share:
Basic and diluted	$	0.10	$	0.01	$	0.12	$	0.11
Weighted average shares outstanding:
Basic		54,266,706		54,179,369		54,266,706		54,179,369
Diluted		54,670,594		54,179,369		54,372,705		54,179,369

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GOLD RESOURCE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands)

(Unaudited)

	Six months ended June 30,
	2016		2015
Cash flows from operating activities:
Net income	$	6,405	$	5,865
Adjustments to reconcile net income to net cash from operating activities:
Deferred income taxes		1,623		1,602
Depreciation, depletion and amortization		6,029		3,748
Stock-based compensation		486		1,913
Other operating adjustments		(815)		977
Changes in operating assets and liabilities:
Accounts receivable		(1,724)		728
Inventories		(1,302)		(1,195)
Prepaid expenses and other current assets		122		424
Accounts payable and other accrued liabilities		(1,571)		703
Mining and income taxes payable/receivable		2,256		(5,263)
Other noncurrent assets		41		(37)
Net cash provided by operating activities		11,550		9,465
Cash flows from investing activities:
Capital expenditures		(10,276)		(11,943)
Proceeds from the sale of equity investments		324		-
Other investing activities		3		28
Net cash used in investing activities		(9,949)		(11,915)
Cash flows from financing activities:
Dividends paid		(543)		(3,251)
Repayment of capital leases		(606)		(745)
Net cash used in financing activities		(1,149)		(3,996)
Effect of exchange rate changes on cash and cash equivalents		(10)		(72)
Net increase (decrease) in cash and cash equivalents		442		(6,518)
Cash and cash equivalents at beginning of period		12,822		27,541
Cash and cash equivalents at end of period	$	13,264	$	21,023
Supplemental Cash Flow Information
Interest expense paid	$	13	$	48
Income and mining taxes paid	$	256	$	7,321

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