GoGold Resources Inc. (TSX: GGD, OTCQX: GLGDF), a Canadian silver and gold producer focused on projects in Mexico, released its financial results for the quarter ending March 31, 2025, highlighting robust revenue generation and cash flow from its Parral Tailings mine in Chihuahua.
During the quarter, Parral produced 555,479 silver equivalent ounces, which include 210,289 ounces of silver, 3,279 ounces of gold, 155 tonnes of copper, and 160 tonnes of zinc. The company sold 555,511 silver equivalent ounces at an average realized price of $31.70 per ounce, generating $17.6 million in revenue. This performance contributed to operating cash flow of $5.1 million, surpassing expenditures related to the Los Ricos project and corporate costs and resulted in a $2 million increase in cash balance to $78.3 million by quarter-end.
Brad Langille, President and CEO of GoGold, emphasized the strength of the company’s financial position following a bought deal financing completed in April, which has boosted cash reserves to approximately $135 million. This liquidity enhances GoGold’s capacity to advance development at Los Ricos South, one of its key exploration projects in Jalisco.
In Q1 2025, the company achieved revenue of $17.6 million from silver equivalent ounce sales, demonstrating strong operational performance. Operating income reached $3.78 million, marking a significant turnaround from a loss in the same quarter of 2024. Net income increased to $3.36 million, up from $1.27 million in Q1 2024, while cash flow from operations improved dramatically to $5.15 million, reversing a negative cash flow of $4.64 million in the prior year. Production costs remained well-controlled, with a cash cost of $17.85 per silver equivalent ounce and all-in sustaining costs (AISC) of $22.98 per ounce, highlighting efficient cost management throughout the period.
The company processed 377,516 tonnes of material during the quarter, slightly lower than the previous year’s 423,977 tonnes, but achieved higher silver equivalent ounces sold, up from 374,140 ounces in Q1 2024. The realized silver price also improved significantly, rising from $23.90 to $31.70 per ounce, contributing to the revenue growth.
On a six-month basis ending March 31, 2025, GoGold reported revenue of $36.7 million and operating income of $7.45 million, compared to $15.7 million and a loss of $1.73 million respectively in the same period of 2024. Net income for the six months was $3.22 million, more than doubling the $1.46 million recorded a year earlier.
GoGold’s portfolio includes the Parral Tailings mine, which continues to be a strong cash generator, and the Los Ricos North and South projects in Jalisco, which are positioned for further development and growth. The company’s strategy centers on building a low-cost, high-margin asset base in Mexico’s prolific mining regions.
With a solid cash position and improving operational metrics, GoGold Resources is positioned to capitalize on market opportunities and advance its exploration and development activities in Mexico, supporting its growth trajectory in the silver and gold mining sector.
