Gold Resource Corporation

Good morning and welcome to the Gold Resource Corporation Second Quarter 2023 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. Instructions will be provided at the time for you to queue up for questions. If anyone has any difficulties during the conference, please press the star 5 by 0 for operator assistance at any time. I would like to remind everyone that this conference call is being recorded today, July 27, 2023, at 10 a.m. Mountain Time. I will now turn the conference over to Kim Perry, Gold Resource Corporation Chief Financial Officer. Ms. Perry, you may proceed.

Thank you, Ina. And good morning to everyone. On behalf of the Gold Resource team, I would like to welcome you to our conference call covering our second quarter 2023 results. Before we begin the call, there are a couple of 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 2022 annual report on Form 10-K and other SEC filings. Please note, all amounts referenced during the presentation are in U.S. dollars, unless otherwise stated. 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 form 10Q have been filed with the SEC on EDGAR and are also available on our website at www.goldresourcecorp.com. I will now turn the call over to Alan.

Thank you, Kim, and good morning, everyone. I'd like to thank all of the listeners for taking the time to join us on this call, and I hope everyone's enjoying their summer. I'd like to start by addressing safety at the Don David Gold Mines. Year-to-date, we have experienced only one lost-time injury. This makes us one of the safest mines in Mexico when we are approaching North American safety standards. This is our highest priority, and our focus is beginning to show the results that we require. As I noted on both the 2022 year-end and the first quarter earnings call, we continue to face several challenges impacting our Don David Gold mine. Some of these challenges were unanticipated and uncontrollable, such as declining base metal prices, the appreciation of the peso against the U.S. dollar, and persistent inflation in Mexico. As I previously indicated, the mining sequence for the year has resulted in lower metal grades and metal production. While the year-over-year comparison is negative, I have to point out that our production guidance remains intact, And so far this year, our costs are in line with forecast. Notwithstanding external pressures, the team has performed well and are achieving or surpassing all of their key operational objectives. To continue to address these challenges, we are identifying and implementing measures for cost reduction and operational efficiency. Concerning our operational results for both the quarter and year to date, Tons milled, ore grades, and metal produced and sold were lower than the respective 2022 periods. However, they are in line with our 2023 mine plan in which this was anticipated. For the remainder of this year, our management team is focused on identifying opportunities to improve our production profile. Concerning leadership, I do want to stress that our new management team at the Don David Goldmine has done an excellent job during the first half of this year in improving the safety culture, rolling out best practices and operational standards, along with identifying efficiencies that will ultimately increase productivity. With this team now in place, I'm confident that we will be able to continue to deliver positive results for our stakeholders well into the future. Moving into the remainder of the presentation, I will provide an update on our Q2 exploration results and then turn the presentation over to Alberto Reyes for an update of our Don, Dave and Gold operations and then to Kim for an update on our quarterly and year-to-date financial results. Following Kim's prepared remarks, I will then provide an update on our Back 40 project. Lastly, we'll provide a few closing remarks and then we'll take questions from participants. Now, please turn to slide four and I'll provide an update on our Q2 exploration results. During the quarter, our diamond drilling program progressed as per our plan and on two fronts. While the objective exploration drilling to identify additional inferred resources and infill drilling with the objective of upgrading to find inferred resources into the indicated category. The results to date have been very encouraging with several new areas of mineralization being identified and targeted. Exploration efforts to date include 12 exploration holes drilling totaling more than 6,900 meters and 63 infill drill holes totaling nearly 10,700 meters. For the quarter, this included eight exploration drill holes totaling 4,425 meters. and 37 infill drill holes totaling 5,700 meters. During the quarter, exploration was focused on the northwest extension of the switchback system, and we have confirmed the continuation of the system. Drilling was also performed in the Three Sister and Gloria vein systems. In the second half of this year, we will continue to focus on these systems along with the down dip extensions of the Soledad vein south and the Morena zone. In-field drilling was focused on the Arista and Switchback vein systems, including defining mineralization along strike and down dip of existing workings. In-field drilling continues to confirm zones of high-grade mineralization within the resource model, as well as additional mineralized structures outside of the existing models, including Splay 31, Morena, and the Soledad South and Susanna North veins. We'll now turn the call over to Alberto for an update on the operations.