Gold Resource Corporation (GORO) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $1.59 million, or $ 0.03 a share in the quarter, against a net loss of $0.47 million, or $0.01 a share in the last year period.

Revenue during the quarter grew 9.93 percent to $21.37 million from $19.44 million in the previous year period. Gross margin for the quarter expanded 225 basis points over the previous year period to 25.10 percent. Operating margin for the quarter period stood at positive 11.49 percent as compared to a negative 1.45 percent for the previous year period.

Operating income for the quarter was $2.46 million, compared with an operating loss of $0.28 million in the previous year period.

The company has spent $12.20 million cash to meet investing activities during the nine month period as against cash outgo of $21.80 million in the last year period.

The company has spent $1.03 million cash to carry out financing activities during the nine month period as against cash outgo of $6 million in the last year period.

Cash and cash equivalents stood at $17.06 million as on Sep. 30, 2016, up 20.99 percent or $2.96 million from $14.10 million on Sep. 30, 2015.

Working capital increases sharply

Gold Resource Corporation has recorded an increase in the working capital over the last year. It stood at $26.29 million as at Sep. 30, 2016, up 48.33 percent or $8.56 million from $17.72 million on Sep. 30, 2015. Current ratio was at 3.89 as on Sep. 30, 2016, up from 1.96 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 6 days for the quarter from 25 days for the last year period. Days sales outstanding went down to 11 days for the quarter compared with 13 days for the same period last year.

Days inventory outstanding has decreased to 27 days for the quarter compared with 55 days for the previous year period. At the same time, days payable outstanding went down to 32 days for the quarter from 43 for the same period last year.