Gold Resource Corporation

Thank you for standing by. This is the conference operator. Welcome to the Gold Resource Corporation's year-end 2020 conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the prepared remarks, there will be an opportunity to ask questions. If at any time you have any questions, you may press star 1 on your phone to join the queue. We do ask that if you are listening on a speakerphone to please pick up your handset to ensure optimal sound quality. I would now like to turn the conference call over to Anne Wilkinson, Vice President, Investor Relations and Corporate Affairs. Please go ahead.

Thank you, Kate, and good morning, everyone. On behalf of the Gold Resource Team, I would like to welcome everyone to our year-end 2020 results conference call. Before we begin the call, there are certain housekeeping matters I would like to cover. Please note that certain statements to be made today by the management team are forward-looking in nature and as such are subject to numerous risks and uncertainties as described in our annual report on Form 10-K and other SEC filings. On the call today, we have Alan Palmier, President and Chief Executive Officer as well as Kim Perry, Chief Financial Officer. Following their prepared remarks, they will be available to answer your questions. This conference call is being webcast. For those of you joining us on the webcast, you can download a PDF copy of the conference call slides from the Materials tab under the Ask a Question tab. The event will also be available for replay on our website later today. Yesterday's news released following the close of the market, and the accompanying financial statement and MD&A contained in our 10-K have been filed with the SEC on Edgar. Also, please note that all amounts mentioned in this call are in U.S. dollars, unless otherwise stated. I will now turn the call over to Alan.

Thank you, Anne, and good morning, everyone. I want to thank all of the listeners for taking the time to join us. I look forward to outlining some of the results of the company from 2020. Following my opening remarks, Kim Perry, our CFO, will describe our financial results. I will then provide you with a high-level view of our plans for 2021 and a few closing remarks, and then we'll take your questions. On December 31st, 2020, Gold Resource Corp. completed its spin-off of the Nevada Mining Unit to Fortitude Gold Corporation. a separate public company. The separation was completed by way of a pro-rata distribution of the outstanding shares of the newly created subsidiary to our shareholders on December 31st, 2020. I took over as CEO following Jason Reid's departure to run Fortitude, and early in the new year, we added three new independent directors. Ms. Lila Manassa Murphy, Mr. Joe Driscoll, and Mr. Ron Little to the board of directors. These additions to the company's leadership add the expertise necessary to focus on unlocking the value of our Mexican assets while implementing best-in-class governance. Turning to our Mexican operations, I'm pleased to report the gold resource produced approximately 20,500 ounces of gold, 1.2 million ounces of silver, about 1,600 tons of copper, 7,700 tons of lead, and 19,700 tons of zinc, despite the two-month mandatory shutdown in 2020 of the Don David Gold Mine in response to the COVID-19 pandemic. 2020 marked two milestones, 10 years of production and over $1 billion in revenues to date. During the fourth quarter, we processed ore at an average rate of 1,700 tons per day compared to 2,000 tons per day in 2019, largely because of lost workdays related to COVID-19 protocols and safety measures to keep our workforce safe. As expected, overall recoveries declined in 2020 by approximately 5% due to the impact of a plant being shut down in the second quarter due to the pandemic, which accounted for 80% of the drop. and the nature of where we are mining in the deposit accounted for the balance of the decline. During the year, we realized about 3.3 million in cost savings and reduced diesel fuel consumption by close to 69% as a result of connecting to the power grid for cheaper, more efficient electricity. The project to connect to the power grid also improved local infrastructure. and allowed access to electricity for approximately 25,000 families along the transmission route for the first time. The base fill plant, which was completed in 2019, processed 136,000 tons of tailings. Base tailings are an effective method of recycling. They primarily provide additional ground support to ensure future mining operations occur in a safe and uninterrupted manner. Construction of the dry stack tailings filtration plant continued during the year. These facilities are expected to be complete by mid-year 2021. The dry stack facilitate and will accelerate reclamation of certain areas of the open pit mine, as well as allow for the efficient and safe storage of tailings. Finally, I want to note that the Don David Gold Mine earned I'm going to just give the English version, the Socially Responsible Enterprise Award for the sixth consecutive year. That is an accomplishment that we are very, very proud of. With that, I will turn the call over to Kim.