Gold Resource Corp looking to reinvest capital into Mexico operation as it ends 2020 in strong cash position

Gold Resource Corporation (NYSEAMERICAN:GORO) told investors that it finished 2020 with a strong balance sheet, which will allow the miner to boost the productivity and life of its Mexico operations.

The precious metals producer completed the spin-off of its Nevada, USA business into a separate firm on the last day of last year in order to focus on Mexico and ended 2020 with $25.4 million in cash, it told investors.

READ: Gold Resource Corp completes Fortitude Gold spin-off as it unveils raft of leadership changes

Its Mexico unit produced around 20,473 gold ounces and 1,189,366 silver ounces in 2020, while in the fourth quarter, output was around 6,854 ounces of gold and 276,902 ounces of silver.

“Our Oaxaca Mining Unit delivered solid production results during a demanding 2020 amid the global pandemic,” said Allen Palmiere, GORO’s CEO in a statement.

“While COVID-19 is expected to remain a challenge in the short to medium term, our team has done an admirable job managing the situation. The company finished the year with a strong balance sheet, including $25.4 million in cash, which provides us with flexibility as we move to reinvest capital in Mexico to increase the productivity and the life of the operations.”

GORO withdrew its 2020 production outlook in April 2020 because of the uncertainties surrounding the coronavirus (COVID-19) pandemic and the temporary suspension of operations in Mexico.

The firm’s financial results and for the fourth-quarter and full-year to December 31, 2020, are expected to be filed with the Securities and Exchange Commission on March 2 this year, it added.

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Story by ProactiveInvestors