Gold Resource Corporation (GORO) has reported a 449.06 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $4.38 million, or $0.08 a share in the quarter, compared with $0.80 million, or $0.01 a share for the same period last year.

Revenue during the quarter surged 39.84 percent to $24.34 million from $17.40 million in the previous year period. Gross margin for the quarter expanded 2295 basis points over the previous year period to 42.80 percent. Total expenses were 68.02 percent of quarterly revenues, down from 95.56 percent for the same period last year. This has led to an improvement of 2754 basis points in operating margin to 31.98 percent.

Operating income for the quarter was $7.78 million, compared with $0.77 million in the previous year period.

The company has spent $6.14 million cash to meet investing activities during the quarter as against cash outgo of $5.52 million in the last year period.

The company has spent $0.28 million cash to carry out financing activities during the quarter as against cash outgo of $0.70 million in the last year period.

Cash and cash equivalents stood at $16.64 million as on Mar. 31, 2017, up 61.15 percent or $6.31 million from $10.32 million on Mar. 31, 2016.

Working capital increases sharply

Gold Resource Corporation has recorded an increase in the working capital over the last year. It stood at $22.45 million as at Mar. 31, 2017, up 25.78 percent or $4.60 million from $17.85 million on Mar. 31, 2016. Current ratio was at 3.26 as on Mar. 31, 2017, up from 2.30 on Mar. 31, 2016.

Cash conversion cycle (CCC) has increased to 19 days for the quarter from 16 days for the last year period. Days sales outstanding went down to 13 days for the quarter compared with 30 days for the same period last year.

Days inventory outstanding has decreased to 28 days for the quarter compared with 59 days for the previous year period. At the same time, days payable outstanding went down to 60 days for the quarter from 73 for the same period last year.