Precious metals miner Gold Resources has initiated a formal review process to evaluate strategic alternatives, including a potential sale of the company, the US-headquartered firm announced on Monday.
Citing “continued challenges”, the board of directors stated that the review process would begin immediately and would evaluate a broad range of options.
Gold Resources has engaged Cormark Securities as financial adviser to assist in its review of strategic alternatives. David Graham Stubbs has been appointed legal adviser.
The decision to embark on a review process comes despite reporting technical successes at its Don David gold mine, in Mexico.
Year-to-date, Don David produced and sold 14 777 oz of gold and 777 977 oz of silver, as well as 8 772 t of zinc, 904 t of copper and 3 681 t of lead. Total cash costs after coproduct credits for the third quarter were $1 839 for each gold-equivalent ounce.
At the end of the September quarter, Gold Resources had a cash balance of $6.7-million with no debt and working capital of $13.8-million.
“Our quarterly operational results to date continue to remain in line with our 2023 mine plan and guidance even though our financial results continue to be lower than planned,” stated president and CEO Allen Palmiere.
“Factors that are out of our control continue to affect our bottom line, including a strengthening Mexican Peso to the US dollar, increased local power costs, and lower metal prices for our co-product metals of copper, lead and zinc. We continue to identify and implement opportunities for cost reductions and other operational efficiencies to offset these factors.”