Key Takeaways
- Reports record quarterly operating cash flow of $21.2 million
- Cash balance swells to $262.2 million, funding Los Ricos South project
- Net income jumps to $16.4 million from $3.4 million a year earlier
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GoGold posts record $21.2M cash flow on strong silver prices
GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) announced record operating cash flow of $21.2 million for its second quarter ended March 31, driven by a near-tripling of its realized silver-equivalent ounce price.
"Parral continues to provide excellent results, propelling the Company to record operating cash flows of $21.2 million," Brad Langille, President and CEO, said in a statement. "We ended the quarter with $262 million in cash, which along with our cash flow from Parral exceeds the initial capital expenditure of $227 million for Los Ricos South."
The Halifax-based miner reported revenue of $30.3 million from the sale of 383,695 silver-equivalent ounces (SEO) at an average realized price of $79.04 per ounce. This compares to revenue of $17.6 million in the year-ago quarter from 555,511 ounces sold at a realized price of $31.70. Net income for the quarter was $16.4 million, a significant increase from $3.4 million in the same period of 2025.
The strong cash generation from its Parral mine, which produced free cash flow of $14.6 million, has fully funded the initial capital requirement of $227 million for the company's Los Ricos South development project in Jalisco, Mexico. GoGold stated that permitting is the final step before development can begin, positioning the company for significant future production growth.
Production and Costs
Total production for the quarter was 394,605 SEO, consisting of 230,680 silver ounces, 2,549 gold ounces, and smaller amounts of copper and zinc. The company's all-in sustaining cost (AISC) rose to $30.30 per SEO, up from $22.98 in the year-ago quarter, reflecting higher input costs. GoGold's output is comparable to other junior silver producers in Mexico, which are also benefiting from higher precious metal prices to advance new projects.
The company noted that the calculation for silver equivalent ounces was heavily impacted by the strengthening of silver prices relative to gold. The gold-to-silver ratio used for equivalency changed from 90 in the prior-year quarter to 58 in the most recent period, making direct ounce-to-ounce comparisons less straightforward.
This article is for informational purposes only and does not constitute investment advice.
