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Gold Resource's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Now one of the main questions criticisms we have heard is why did you wait until after the quarter ended to release the lower production figures. Well we certainly did not expect going into this quarter that we would produce half of what we targeted. We had just come off our best quarter ever in Q1 primarily as a result of having developed strokes in our high-grade areas and we had seen days where the mill head grades were seven to nine grams gold or and 700 to 800 grams silver. When you have those kinds of days they can drastically increase production of metals for the month and ultimately the quarter in a short period of time. so even if the first month or even two months of the quarter of the low target, it is a fact that if you can bring in high grade to the mill for even one month, you can make a big difference to the quarter overall.

We were working on developing additional stopes in our high grade areas. At any point, had those stopes been able to come online, they would have changed the quarterly numbers drastically. It would have been incorrect to prematurely state we were going to have a below target quarter and they come back with the quarter that was not or not much low target. This is why we will only report quarterly reset our targets that because of the unpredictable nature of mining and especially in the new mine without much history, nobody knows in advance what the actual results will be. We expect to meet our targets more often than not but it is a fact sometimes we will not. As we have done with previous quarters, we announced our preliminary production as soon as we had finished the quarter and got comfortable with the calculated preliminary numbers.

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