FORWARD LOOKING STATEMENTS

Transcription

1 July 1, 2016

2 FORWARD LOOKING STATEMENTS This presentation is to be read in conjunction with the most current 10K available at the Securities & Exchange Commission website or This brochure contains statements that plan for or anticipate the future. Forward-looking statements include statements about the Company's ability to develop and produce gold or other precious metals, statements about our future business plans and strategies, statements about future revenue and the receipt of working capital, and most other statements that are not historical in nature. Forward-looking statements are often identified by words such as "anticipate," "plan," "believe," "expect," "estimate," and the like. Because forward-looking statements involve future risks and uncertainties, there are factors that could cause actual results to differ materially from those expressed or implied, including those described in our filings with the SEC. Prospective investors are urged not to put undue reliance on these forward-looking statements. 2

3 INDUSTRY TRANSFORMATION Investor Demands Are Changing the Mining Industry Dismissing the Concept of Growth for Growth s Sake Changing to a Return on Capital Investment Standard Changing allocations of Cash Flow to include Dividends Gold Resource Corporation Welcomes The Change 3

4 MAXIMIZING SHAREHOLDER VALUE Shareholder Focused Precious Metal Producer Delivering a growth profile of low cost, high margin production Five consecutive years of profitability ( ) Demanding high returns on owner invested capital Distributing meaningful monthly dividends to maximize total return to owners 4

5 CORPORATE STRUCTURE Conservative Corporate Structure Only 54 million shares outstanding as a producer Last capital raise August 2010, 5 years organic growth Zero long-term debt 5

6 TWO MINING UNITS Nevada Mining Unit Exploration Stage Oaxaca Mining Unit Production & Exploration Stage Focused on the Americas Mining friendly jurisdictions High-grade gold & silver potential 6

7 GROWTH & INCOME EQUITY Growth Equity ~25 million MC to ~$175 million MC growth (since 2006) Income Equity Consecutive monthly dividends (since July 2010) Currently $0.02 per share/year $2.10 dividends distributed; 2006 $1.00/share $108 million in dividends returned to shareholders 7

8 COMMITTED TO GOLD & SILVER Diversified treasury with physical gold & silver ~$3.4 million of gold and silver bullion Providing dividend option: cash, gold, silver Cash: Currently $0.02 / share annually Gold and Silver option: one ounce.999 fine GRC Eagles rounds (shown below) GRC Eagles rounds 8

9 RETURN ON CAPITAL METRIC Aguila Project Return on Starting Capital (1 year payback target) Company operating philosophy established one year return on capital metric Generate Mine Gross Profit in initial 12 months of commercial production to pay back capital necessary to achieve first production El Aguila Project generated $36 million Mine Gross Profit in first 12 months on starting capital of $34 million (see Co s Q2 10Q 2011 filing for details) 9

10 OAXACAMINING UNIT 6 properties along a 55 kilometer mineralized trend Mining friendly jurisdiction 6 Potential high-grade Gold & Silver Properties 684 square kilometers 55 kilometer mineralized structural corridor Operating mine Arista underground Development mine Alta Gracia underground Property Interest Exploration Development Production El Aguila 100% Alta Gracia 100% Las Margaritas 100% El Chamizo 100% El Fuego 100% El Rey 100% 10

11 PRODUCTION PROFILE TARGET: 26,000 Gold (Au) Ounces, 1,900,000 Silver (Ag) Ounces* Precious Metal Gold Equivalent (AuEq) Ounces Ag:Au Ratio Dependent on actual market prices Precious Metal (AuEq) oz s , KozAu 2.1MozAg 90, KozAu 3.3MozAg 84,835 83, KozAu 3.0MozAg 35.5KozAu 3.3MozAg 63, KozAu 2.5MozAg Targeting 26KozAu 1.9MozAg Q KozAu 434KozAg Ag:Au T/D~ Ag:Au T/D~ Ag:Au T/D~ Ag:Au T/D~1, *2016 Annual Production Target Range = +/-5% AuEq= precious metal gold equivalent. T/D=tonnes per day. Mill capacity as built = ~1,500 T/D or ~525K T/YR. 73.1:1 Ag:Au T/D~1, :1 Ag:Au T/D~1,301 11

12 PRODUCTION COSTS 2015 AuEq Total Cash Cost* $517 per ounce Gold Institute Total Cash Cost/Ounce *Precious Metal (AuEq) Total Cash Cost /oz :1 Au,Ag $517* GRC Q1-Q $707** Industry Avg All-In Sustaining Cost Per AuEq Ounce Sold *** Precious metal gold equivalent (AuEq) total cash cost/oz production including 5% royalties using industry standard base metal by-product credits of: Cu, Pb, Zn. Total Cash Cost as defined by The Gold Institute ** Thomson Reuters GFMS s Gold Survey 2015 ***All-in Sustaining cost is a non-gaap measure. The Company calculates all-in sustaining costs as defined by the World Gold Council guidance - June This non-gaap measure is intended to provide further transparency into the costs associated with producing gold. AISC Per AuEq* Ounce Sold :1 Au,Ag $1,013 GRC 2015 $1,208** Industry Avg 12

13 BY-PRODUCT CREDITS 2015 Base Metal By-Product Credits Base Metal Tonnes By-Product Credit Per Ounce By-Product credit by $ value Copper 1,238 $ 106 $ 6,472,000 Lead 3,857 $ 108 $ 6,627,000 Zinc 11,478 $ 345 $ 21,076,000 Total Credit Per AuEq* Ounce Sold $ 559 $ 34,175,000 *AuEq= Precious Metal Gold Equivalent 13

14 FINANCIAL PERFORMANCE Financial Performance 2015 Revenue Distribution U.S. $ M Sales Mine Gross Profit EBITDA Operating Income Net Income EPS (US$/ share) Precious Metals: Gold, Silver Base Metals: Copper, Lead, Zinc $34M (37%) $59M (63%) Dividend DPS (US$/ share) Retained Earnings (6) 2 (1) Exploration CONSECUTIVE YEARS OF PROFITABILITY 4 of which during progressively worse bear markets Cash Mine Gross Profit: sales cost of sales EBITDA: Earnings before income tax, depreciation, amortization DPS = Dividend per share 14

15 GROWTH El Aguila Mill Flexible mill design 2 production circuits Flotation Circuit Expanded in 2013 Nominal ~1,500 tonnes /day Agitated leach circuit (idle) Nominal ~300 tonnes /day Target first mill feed from Alta Gracia Q4 2016/Q

16 EL AGUILA PROJECT Arista Underground Mine Santiago Vein ~600 meters Arista Vein Baja Vein Splay 05 16

17 EL AGUILA PROJECT Arista Underground Mine Epithermal vein system Intermediate sulfidation High-Grade gold, silver deposit (polymetallic) Base metals; copper, lead and zinc Large +20 en echelon veins 17

18 ARISTA MINE; 2016 TARGETED ORE BLOCKS Arista Vein System Primary Ramp Splay - 05 Santiago L8.5 L13.0 Splay 05 Ramp L18.0 L21.0 L23.0 Internal Ramp SwitchBack Ramp Chuy & Viridiana Switchback Vein System Soledad Sabrina Baja & Splay-66 Vein 1 & Vein 3

19 ARISTA MINE 2016 PRODUCTION Net Smelter Return Values Baja Vein Economic Stopes Underground mining methods; Long hole stoping, Cut and fill 19 (Current 2013 Arista mine plan; year-end mine development may vary)

20 MINERAL RESERVES & RESOURCES Reserve Class December 31, 2015 Arista Mine Proven & Probable Reserve Summary Tonnes Au g/t Ag g/t AuEq g/t Au oz Proven 1,155, ,100 6,617, , Probable 489, ,600 1,952,000 61, TOTAL 1,644, ,700 8,569, , Ag oz AuEq oz December 31, 2015 Additional Mineralized Material Summary Mineralized Zone Class Tonnes Au g/t Ag g/t Cu % Pb % Zn % Measured 308, Switchback Indicated 326, Total 634, Measured 118, Alta Gracia Indicated 66, Total 185, Total M&I Mineralized Material 819,700 Breakeven Net Smelter Return (NSR) cutoff grade of $100 tonne applied. AuEq using gold and silver only in AuEq calculation. Metallurgical recovery assumptions of 90% for gold and 93% for silver. Industry guide 7 SEC Proven and Probable Reserve standards Cu % Pb % Zn % SEC guided 3 year trailing average price assumptions per troy ounce; $1,279 gold $19.53 silver. AuEq calculated at 65.5:1 Ag:Au ratio Cu, Pb, Zn not included in AuEq. Base metal revenue used to offset precious metal production costs Full Report located on the Company s website: 3+ year mine 4.89 g/t average AuEq grade Arista deposit expansion potential. 20

21 ARISTA MINE PLAN VIEW N Arista Vein System Switchback Vein System Arista Mine Plan View -Mineralized veins -Past drill holes -Fault -Vein -Mine development 21

22 ARISTA MINE; 2016 SWITCHBACK HIGH-GRADE 71g/tAg 462g/tAg 212g/tAg 153g/tAg Switchback Vein System 191g/tAg 669g/tAg 114g/tAg 147g/tAg 151g/tAg Arista Vein System +630K tonnes in M&I Mineralized Dec. 31, 2015 Arista Mine Plan View -Mineralized veins -Past drill holes -Fault -Vein -Mine development -Meters down M hole

23 ARISTA MINE SWITCHBACK DEVELOPMENT AIRFLOW SCHEMATIC Arista Switchback Proposed ramp/raise development Fresh air intake Level 21 Level 21 crosscutting/development of Switchback vein system targeted for Q

24 LARGE EPITHERMAL SYSTEM Powerful Vein System 3 Meters of 6 Meter Wide Vein Back/ceiling view 24

25 OAXACAMINING UNIT; ALTA GRACIA DEVELOPMENT Alta Gracia Project Targeting Q / Q production Access mineral via historic mine workings Initial tonnes per day targeted Truck ore to Aguila mill for processing Alta Gracia Initial mineral access from existing workings

26 ALTA GRACIA Alta Gracia M&I Mineralized Material at Independencia: Mirador Splay: Mirador Vein: 38, g/t Au, 248 g/t Ag 9, g/t Au, 392 g/t Ag 25, g/t Au, 387 g/t Ag Hole # MIRADOR VEIN Angl e From Interval Au Ag deg Meters Meters g/t g/t ,383 incl incl incl incl incl ,010 incl incl , incl incl ,170 incl incl ,270 incl SAN JUAN VEIN , ,232 Incl , , ,000 EL HUAJE VEIN Meters downhole, not true width Assays by ALS Chemex, Vancouver, BC Canada

27 EXPLORATION 6 properties 684 square kilometers Large Consolidated Land Position 55 kilometer mineralized structural corridor High-grade gold and silver Epithermal deposits Intermediate polymetallic Skarn potential 132 g/t Au *4.01m@ 2.52 g/t Au 595 g/t Ag *2.85m@ 27.0 g/t Au 2600 g/t Ag +55 km mineralized structural corridor *Drill results include 3.18 g/t Au 292 g t Ag 0.87 % Cu 1.56 % Pb 4.26 % Zn 27

28 EL AGUILA PROJECT; EXPLORATION POTENTIAL Historic Open Pit Manto 2015 drill program expanded Manto (flat lying) vein to the north High grade gold mineralization Potential agitated leach mill feed Hole # NOTABLE El AGUILA OPEN PIT MANTO EXTENSION RESULTS Angle From Interval Au Ag Vein deg Meters Meters g/t g/t Manto Manto Manto Manto Manto Manto Manto Incl Manto Manto Manto Manto Incl Manto Manto Assays by ALS Chemex, Vancouver, BC Canada. Meters Down Hole, Not true width. Historic Open Pit 28

29 LAS MARGARITAS EXPLORATION POTENTIAL Hole # Angle Las Margaritas Property NOTABLE LAS MARGARITAS DRILL RESULTS Vein From Interval Au Ag deg Meters Meters g/t g/t Tapada Tapada Tapada Incl Incl Vein Vein Vein Assays by ALS Chemex, Vancouver, BC Canada. Meters Down Hole, Not true width. High-grade gold / silver district mined Pre-Mexican Revolution (1910) The Mines of Mexico Mex. Gov. Publication 1905 "...the place in which has been found some of the richest ores in Mexico, some of the ores having reached the value of 18,000 [silver] ounces to the ton, and ores are frequently found which assay 4,000 and 5,000 [silver] ounces to the ton." Historic workings Ghost town Las Margaritas 29

30 LAS MARGARITAS EXPLORATION POTENTIAL: LOS TRENES - Arista style ridge along N70W structure - Gold and silver anomalies in soil samples - Nearby road access - Exciting new target, potentially drilled in 2016 Gold Anomalies Los Trenes Silver Anomalies

31 EL REY EXPLORATION POTENTIAL El Rey Property High-grade gold vein system within 100 meters of surface Exploration/development underground NOTABLE EL REY DRILL RESULTS Hole # Angle From Interval Au Ag deg Meters Meters g/t g/t incl incl incl incl incl incl incl Assays by ALS Chemex, Vancouver, BC Canada. Meters Down Hole, Not true width. El Rey 31

32 NEVADAMINING UNIT; EXPLORATION STAGE Nevada Mining Unit Mining friendly jurisdiction Located in historic gold mining district Gold Mesa Property Option acquired December 2015 ~ 4,580 acres High-grade open pit potential Property Interest Exploration Development Production Gold Mesa Option 32

33 GOLD MESA Rawhide Mine 1.6MMoz.Au 17.5 MMoz.Ag Bruner Canamex drill results: Au July 2012 Mineral County NEVADA Paradise Peak Mine 2.6MMoz.Au 43 MMoz.Ag Round Mountain Mine 10MMoz.Au Calvada 3 Mine Santa Fe Mine Calvada 2 Mine.5MMoz.Au 1 MMoz.Ag Gold Mesa GRC s Gold Mesa claims Historic Mines Prospect (GRC a Canamex shareholder) Structural Interpretation 33 33

34 NEVADAMINING UNIT 2016 Drill Result Highlights Announced June 14 Include: Au Au Au Au Au Au

35 NEVADAMINING UNIT High-grade open pit potential Near surface mineralization 15.2M of 6.27g/t Au starting 9 meters down hole Drill data interpretation underway Second drill program planned Continued drill success eyes future production decision

36 EMPLOYEE SAFETY & HEALTH FOCUS Safety Commission Weekly Waste Collection & Recyclables First Aid Training Protections Labor Environment Studies Fire Brigade Protections Labor Environment Studies Fire Brigade 36

37 MINE CAMP; OAXACA MINING UNIT Green construction saved over 2 million plastic bottles from the landfill as recycled plastic block walls. 37

38 CORPORATE CITIZENSHIP Plant Nursery/ Reforestation Town Infrastructure Commitment to Hire Locally Plant Nursery/Reforestation Town Infrastructure Commitment to Hire Locally Health Clinic Dental Clinic Sustainable Development Student Scholarships Health & Dental Clinics Sustainable Development Student Scholarships 38

39 2016 SOCIAL / CORPORATE LICENSE Company was awarded the ESR seal for 2016 which acknowledges: -Socially responsible company -Positive social, environment & economic impact -Positive culture and business strategy -Employees, clients & business partners know Company has met ESR standards

40 DIVIDENDS A SHAREHOLDER FOCUSED PHILOSOPHY Income Equity 2011 dividends = US$26.5m 2012 dividends = US$36.5m 2013 dividends = US$25.5m 2014 dividends = US$6.5m 2015 dividends = US$6.5m 2016 Currently US$0.02/share/yr Our philosophy: return as much in dividends to the shareholders when possible, while balancing the growth needs of the Company MILLIONS USD / YEAR Consecutive Monthly Dividends $2.10 / share returned to shareholders Dividends may vary in amount and consistency or be discontinued at management s discretion depending on variables including but not limited to operational cash flows, Company development requirements, strategies, construction, spot gold and silver prices, taxation, general market conditions and other factors described in the Company s public filings. 40

41 DIVIDEND & YIELD Company 2015 Au Production* Annual Dividend Estimate (US$/ share) Yield Share price open (7/1/2016, US$) Total longterm Debt 2015 Dilution (not including options) Agnico Eagle 1,671, % $1.1B 9.7% Barrick 6,120, % $10B 0% Goldcorp 3,464, % $2.5B 0% Kinross 2,600,000 *Suspended 7/31/13 n/a 5.07 $2.0B 0% Newmont 5,700, % $6.2B 5.8% Yamana 1,280, % 5.32 $1.6B 7.3% Royal Gold *N/A % $322M 0% Average 0.6% Gold Resource 63, % 3.65 $0 0.1% Source: Based on each company s annual public filing and Bloomberg. *Please view each company s annual public filing for specific and detailed information on annual production total calculations. 41

42 DIVIDEND PER OUNCE PRODUCTION OUNCES REQUIRED TO GENERATE EACH $0.01 OF ANNUAL DIVIDEND* n/a 570, , ,000 Production Ounces Dividend suspended 433,000 52,200 31,982 0 Kinross Newmont Barrick Yamana Goldcorp Agnico GORO Source: Based on each company s Annual Filings and Bloomberg. GRC targets, performance not guaranteed, see Risk Factors in Company s 10K. *Current $0.02/year GORO dividend using 2015 annual production 42

43 A TIGHT CAPITAL STRUCTURE Present Capitalization Shares Outstanding 54,603,104 Treasury Shares (336,398) Options Outstanding 5,550,000 Warrants Outstanding 0 Shares Fully Diluted 60,153,104 Debt (capital equipment leases) US$696K Hedging 0 Bullion: (1,623 oz Au; 91,416 oz Ag) ~US$3.4m Net Cash ( ) US$10m Market Cap (US$3/share) US$160m Average Daily Volume (3m as of ) ~725,000 GORO Shareholders and Analyst Coverage Substantial Shareholders Management ~ 8% Van Eck (GDXJ) ~ 8% Vanguard ~ 3% Renaissance Technologies ~ 3% Killen Group ~ 3% GSA Capital Partners ~ 1% BlackRock Fund Advisors ~ 1% Analyst Coverage - unpaid Sterne Agee GLD/GOLD PRICE 43

44 A COMPREHENSIVE GOLD INVESTMENT Cash / Return on Capital Growth Curve Dividends Gold & Silver Dividend Adding Ounces Physical Treasury Exploration Upside Low Cost Producer 44 (GRC targets, performance not guaranteed, see Risk Factors in Company s 10K)

45 CONCLUSION Shareholder Focused Precious Metal Producer Delivering a growth profile of low cost, high margin production Demanding high returns on owner invested capital Distributing meaningful monthly dividends to maximize total return to owners GRC Eagles rounds 45

46 CORPORATE HEADQUARTERS Gold Resource Corporation 2886 Carriage Manor Point Colorado Springs, CO USA Office: (303) Fax: (303) Website: 46

47 ARISTA MINE; SWITCHBACK DRILL HIGHLIGHTS NOTABLE SWITCHBACK DRILL RESULTS Hole # Angle From Interval Au Ag Cu Pb Zn deg Meters Meters g/t g/t % % % Incl , Incl Incl Incl Incl Incl , Incl Incl Incl Incl Incl Assays by ALS Chemex, Vancouver, BC Canada. Meters Down Hole, Not True Width. Hole # NOTABLE SWITCHBACK DRILL RESULTS (cont.) Angle From Interval Au Ag Cu Pb Zn deg Meters Meters g/t g/t % % % Incl Incl incl incl , Incl Incl Incl incl Incl incl incl Assays by ALS Chemex, Vancouver, BC Canada. Meters Down Hole, Not True Width.