Increased Production and Merger Plans
Gold Resource Corporation announced positive results for the first quarter of 2026, with a net income of $4.7 million. The Don David Gold Mine, located in Mexico, produced a notable 8,749 gold equivalent ounces. During the quarter, the mine achieved sales of 1,548 ounces of gold and 374,232 ounces of silver. Total cash costs were $2,164 per gold equivalent ounce, while the all-in sustaining cost reached $3,476 per gold equivalent ounce.
President and CEO Allen Palmiere expressed satisfaction with the strong quarter, stating, “We are pleased to report another strong quarter and returning the company to positive net income.” By March 31, 2026, the company reported $40.2 million in working capital and $31.0 million in cash and cash equivalents.
Operational Highlights and Merger Plans
The Don David Gold Mine saw a 31% increase in milled tonnes compared to the same period in 2025. Production of gold and silver rose significantly by 126% and 54%, respectively. Meanwhile, copper, lead, and zinc production increased by 39%, 36%, and 64%.
Merger plans with Goldgroup Mining Inc. are progressing, with an expected closure in the third quarter of 2026. This merger will allow Goldgroup to acquire all outstanding shares of Gold Resource Corporation. On April 27, 2026, the Mexican National Antitrust Commission gave unconditional approval to the merger. Stockholders will receive 1.4476 common shares of Goldgroup for each share of Gold Resource Corporation.
Exploration programmes continue to expand resources surrounding the mine. The company remains focused on disciplined execution, safety, cost and grade control, and delivering shareholder returns. During the first quarter, underground grade-control, infill, and selective expansion drilling targeted near-term production at Arista and the Alta Gracia project. Drilling supported production planning and refinement of the geologic model, particularly within the Arista system. Limited surface expansion drilling began, testing the Isabel SE target. Meanwhile, at the Alta Gracia Project, surface and underground infill and expansion drilling advanced evaluation of the Mirador and Independencia vein systems.
A conference call to discuss the first-quarter results is scheduled for May 12, 2026, at 10:00 a.m. Eastern Time. This will include a live Q&A session with company executives.
