7/28/2022

speaker
Sarah
Conference Call Operator

Good day and thank you for standing by. Welcome to the Gold Resource Corporation Q2 Earnings Conference. All lines have been placed on mute to prevent any background noise. Should you require any assistance, please press star zero on your telephone keypad and an operator will assist you. During today's conference call, there will be a question and answer session. And if you would like to ask a question, simply press star one on your telephone keypad. I will now turn the conference over to Kim Perry, Gold Resource Chief Financial Officer. Please go ahead.

speaker
Kim Perry
Chief Financial Officer

Thank you, Sarah, and good morning to everyone. On behalf of the Gold Resource team, I would like to welcome you to our conference call covering our Q2 2022 results. Before we begin the call, there are a couple housekeeping matters I'd 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 copy 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-Q have been filed with the SEC and EDGAR and are also available on our website at www.goldresourcecorp.com. 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.

speaker
Alan Palmier
President and CEO

Thank you, Kim, and good morning, everyone. I want to thank the listeners for taking the time to join us on this call. The first half of 2022 has proven to be a solid start to the year. While we are expecting production results to dip lower in the second half as a result of grade, I would like to reiterate our full year guidance of 24,000 to 26,000 ounces of gold and 900,000 to 1 million ounces of silver. This is approximately 40,000 gold equivalent ounces. While the base metal prices in the first half of the year helped our cash cost and all-in sustaining costs, We expect that we will achieve our cost guidance. Finally, capital exploration and G&A forecasts remain on track for guidance. I'd like to point out a few achievements related to Q2 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 Q2 financial results. Lastly, we'll provide a few closing remarks and then we will take questions from participants. We continue to heavily invest in Mexico, which will benefit us going forward from an operational, financial, and in many cases, an environmental standpoint. With the completion of the filter plant and dry stack facility in late 2021, we are processing 85% of the tailings through the new plant. The residual 15% is used for paste fill and goes underground. The facilities not only conserve water, they reduce the traditional risks associated with the tailings storage facility and accelerate the reclamation of the open pit. We also processed over 200 tons of artisanal tailings from a local community. In addition to financially giving back to the community, we were able to ensure they were properly handled and stored. We are encouraged by the results of our investment in the infill drilling program, which is producing positive results. In Michigan, we continue to work on the feasibility study. The inflationary environment and capital cost pressures combined with lower commodity prices are creating challenges. We continue to work on alternatives and are working to optimize the value inherent in this world-class deposit. I'll now pass the presentation to Alberto to discuss Don David Gold's operational results.

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

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