Gold Resource Corporation

Good morning and welcome to the Gold Resource Corporation year-end 2021 and fourth quarter financial and operating results conference call. At this time, all participants are in a listen-only mode. Following management's presentation, there will be a question and answer session open to financial analysts only. Instructions will be provided at that time for you to queue up for questions. If anyone has any difficulties hearing the conference, please press star followed by zero for operator assistance at any time. I would like to remind everyone that this conference call is being recorded today, March 11, 2022, at 10 o'clock Eastern Time. I will now turn the conference over to Kim Perry, Gold Resource Corporation's Chief Financial Officer. Ms. Perry, you may proceed.

Thank you, Chris, and good morning to everyone. On behalf of the Gold Resource team, I would like to welcome you to our conference call covering our full year 2021 results. Before we begin the call, there are a couple housekeeping matters I would like to address. Please note that certain statements to be made today 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. Joining me on the call today is Alan Palmier, our President and CEO, and Alberto Reyes, our Chief Operating Officer. Following Alan, Alberto, and my prepared remarks, we will be available to answer questions. This conference call is being webcast. For those of you joining us on the webcast, you can download a PDF of the conference call slides. The event will also be available for replay on our website later today. Yesterday's news release issued following the close of the market and the accompanying financial statements and MD&A contained in our Form 10-K have been filed with the SEC on EDGAR and are also available on our website at www.goldresourcecorp.com and CDAR at www.cdar.com. Please note that all amounts mentioned in this call are in U.S. dollars unless otherwise noted. I will now turn the call over to Alan.

Thank you, Kim, and good morning, everyone. First, I would like to thank the listeners for taking the time to join us on this call. I'll look to point out a few 2021 accomplishments and provide an update on the Aquila acquisition before handing the call over to Alberto to provide an update on our Don David Gold operations. We will then proceed with remarks from Kim on our full year financial results and 2022 guidance. Lastly, we'll provide a few closing remarks, and then we'll take questions from participants. 2021 was a transformative year for the company. We brought in a new management team and a highly accomplished independent board of directors and closed the year with the successful acquisition of Aquila Resources and its PAC 40 project. With cultural and operational changes comes stress and uncertainty. I would like to thank our entire team for their efforts and their embrace of the new culture and strategy. I'm very proud of every one of our team and the way with which they are embracing change and a new dynamic environment. Concerning our Don David Gold operations in Mexico, we experienced a positive year and delivered strong operating cash flow despite some challenges. We continue to invest heavily in Mexico with 25 million spent in 2021 and completed both the filter press and dry stack tailings facilities. These projects, along with other capital and exploration initiatives, were either completed or progressed in 2021 and will significantly benefit us going forward from an operational, financial, and in many cases, an environmental standpoint. Lastly, I want to note that we published the first SK1300 report for our Don David Gold Mineral Resources and Mineral Reserves. Concerning Acheola, we're extremely excited about the backported project and what this asset offers in terms of diversification and life of mine production. We've provided details as to the acquisition and benefits provided to Gold Resource. in a number of presentations and press releases, which you can find on our website. Our short-term focus on this project is to complete the Definitive Feasibility Study in the second half of this year. We are completing a new block model and resource study, finalizing a new mine plan, and evaluating alternative process flow sheets to select the optimal process flow which will be reflected in the Definitive Feasibility Study. Concurrently, we've also initiated the process to prepare the applications for the necessary permits. The permitting process and detailed engineering are expected to run in parallel during 2023. Construction is expected to commence in 2024 with the target of initial production in 2025. All efforts are focused on delivering an environmentally friendly and socially responsible project. I'll now pass the presentation to Alberto to discuss Don David Gold's full-year operational results. Alberto?