Good day, and thank you for joining Gold Resource Corporation First Quarter Conference. Mr. Jason Reid, CEO, will be hosting today's conference. Following Mr. Reid's opening remarks, there will be a question-and-answer period. And just a reminder, today's call is being recorded. Mr. Reid, please go ahead, sir.

Thank you. Good morning, everyone, and thank you for joining Gold Resource Corporation's 2015 First Quarter Conference Call. Today's call will include the first quarter overview of operations and exploration, followed briefly by a corporate matter and a few comments on gold and silver. Joining me on the call today for the Q&A portion will be Mr. Joe Rodriguez, our Chief Financial Officer. Let me remind everyone that certain statements made on this call are not historical facts and are considered forward-looking statements. These statements are subject to numerous risks and uncertainties, as described in our annual report on Form 10-K and other SEC filings, which could cause our actual results to differ materially from those expressed in or implied by our comments. Forward-looking statements in the earnings release that we issued yesterday, along with the comments on this call, are made only as of today, May 11, 2015, and we undertake no obligation to publicly update any of these forward-looking statements as actual events unfold. You can find a reconciliation of non-GAAP financial measures referred to in our remarks in our Form 10-K filed with the SEC for the year ended December 31, 2014. Precious metal prices continue to be under pressure with first quarter prices weakening year-over-year with the realized gold price dropping 7.2% and the realized silver price dropping 17.5%. Even with this continued price pressure, the company is pleased to deliver a strong quarter of profitability with production results in line with annual production targets. Q1 production from the Arista Mine totaled 19,347 ounces of precious metal gold equivalent at a realized 72:1 silver-to-gold ratio. We milled an average of 1,026 tonnes per day or 92,359 total milled tonnes for the quarter. For those tonnes -- from those tonnes, we produced 8,348 ounces of gold, 790,300…

Good morning Jason.

Operator, please take our first caller and question if there is one.

[Operator Instructions] Caller, please go ahead.

My name is Mark Smith [ph]. I'm definitely a long shareholder here. I liked the quarter. I have a couple of questions.

Sure.

The -- I think you touched on it, Jason. The tonnes per day milled was due to sort of a -- the new mining contractor getting its feed into the mine and getting up to speed, if that's correct? And then a second question, I guess, for Joe. Noticed the $2.4 million increase in the accounts payable. Could you comment on that, please?

Yes, Mark [ph], let me jump in here first before Joe addresses the $2.4 million increase. As far as the tonnes per day, we as a company do our mining. The Dumas is our development contractor and they do all the development work and we pay them on a meter basis. Now we did have kind of a rough transition from our past mine contractor to this one for the development portion. But coming back to the tonnes, they will vary quarter-on-quarter just as they function of the type of mining we are doing. The more long haul stoping we can do, the more tonnage we can pull. But every quarter will vary some, and what we're trying to do, though, is that at the end of the year have it all average out. So I wouldn't focus as much on the tonnes on a quarter-by-quarter basis just as long as we can pull enough to reach our year-end goals. So I just want to clarify that because Dumas does not do our mining, they just do our development.

Okay, I misunderstood that.

No problem. No, it's a great question, Mark. I appreciate it, and I'm glad that we were able to clarify it for you and anybody else. And Joe, I'll let you address the $2.4 million.

Yes. Yes, Mark, good question on your part. I think most of the increase is due to a timing. Sometimes, we have a lot of payables coming in at the same time and it's just a timing thing. So it just happened to be that in this quarter, we ended the quarter with some unpaid payables at the time. But it'll cycle through and I think we will come back to normal amounts.

[Operator Instructions] Gentlemen, it appears I have no further -- oh, I'm sorry, we do have another question.

My name is Jim Miller [ph]. I'm a long shareholder. I'm just curious about El Rey. Is there any kind of report on it?

Yes, no, good question. El Rey is a very exciting property. It's on our far northwest end of our trend. We have very high-grade gold there. We're optimistic at some point we'll be back there moving that forward. However, at this point, we're still working with the communities to gain access to it. If you'll recall, this was quite a while ago, we had some issues with community pushback. And it had less to do with our company and more to do with one of our neighbors, who I think, coincidentally, their actions caused some pushback in mining in general over in that area. And so we've been trying to overcome that. Rather than force our hand and say, "Look, we have the right to be here, move." We've taken the approach of, no, let's step back and get everybody comfortable, and that's what we're doing. So unfortunately, I don't have any update, Jim. But we're still working with them to gain access and we just want to do it in the most amiable terms possible. So that's what we're doing. So I don't have an update, but we're optimistic at some point we'll be back there pushing that forward.

We'll take the next question.

My name is Anthony Chiarenza, with Key Equity Investors. I have a question on the production level.

Are you a long or short, Tony?

I am long now. I'm long.

We don't short.

We get short callers, that's why I ask. Okay.

No problem, no, no, no. No interest in that. The question I have is on the production levels. So you had about -- a little bit over 19,000 in the first quarter, and you're projecting 80,000 to 90,000-level production for the year. What makes you confident that you're going to get in that level? Because the first quarter in general, I have spoken to people and they've kind of found it was a little bit low relative to what the expectations are. So what gives you the confidence that you're going to be in that 80,000 to 90,000?

Right. Well, first, we set out in the beginning of every year with a budget, and we look at the mine plan and we come up with our estimates from that. Now on the 80,000 to 90,000, that's based on a ratio and -- though unfortunately, or fortunately, right? The ratio varies day to day. And so we can't -- we don't have a crystal ball. So when we look forward, we put a 64 ratio on it. Now -- right now the ratio is closer to 67. Or actually, it's 72, is it not, Joe, I think? So...

Yes, 72:1, Jason.

Yes, 72:1. So that ratio jumps around. I think when we -- just looking at the 64, I think we're going to make that. Now the reality is that ratio is going to move. And when you're calculating a gold equivalent, which you're taking the silver and converting it into a dollar value, that dollar value back into gold, it skews the numbers at the end of day just because the ratio moves. So we're comfortable with the 80,000 to 90,000 at this point. And that's about all I can say on that. The actual amounts will totally be dependent on a gold equivalent basis based on what metal prices do by the end of the year or the average. And so that when it's -- when the metal prices are falling, like they did last year, that can hurt us. And if they're going up, it would obviously help us. But no, we're just shy of 20,000 and that would put us at -- for the first quarter, and that would put us at the 80,000 if they were all duplicated [ph] at that. So that's where we are today. But again, since we don't have a crystal ball and nobody can know where the metal prices is going to go, that is going to move. And that's why this year we took a bit of a different approach in that we called out every metal that we targeted to produce and the amount to try to draw your attention more on the actual amounts of metals as opposed to the ratio. The ratio will still be there, and everybody in this industry wants to hear that ratio. It's an easier number to digest. But we got hit last year in that we produced more gold, more silver, more copper, more lead and more zinc than we ever have had as a company, and yet because of the falling metal prices, that hurt our gold equivalent production number and we just missed it by hundreds of ounces. But that's just the world in which we live in with the fluctuating metal price. So hopefully, that answered your question, or addressed it anyway? Do you have another one?

Sure, sure. No, no. Now I just wanted to get a little bit of thought on Nevada and how -- and what your progress is at that point to actually getting some production at some point over the next several years?

Right. It's way too early to talk about production in Nevada. We are just getting our feet wet in Nevada, and we've picked up a couple of properties, and we're doing early exploration on them. This is a long-lead-time industry. On average, you're talking years and years from discovery to production. But we operate a little different than the norm in the industry, and we've fast-tracked. For instance, we put our El Aguila project in production in 3 years and 3 months from the date we made our production decision, which is lightning fast for this industry, and including the fact we had a year longer with permit delays than we thought or we would have done it even faster. So as far as Nevada is concerned, this is just all early exploration and it's too early to talk about any kind of production. We have to find something first. This is just early days.

And we do have one final question.

Jason, this is Chris Lewis [ph]. Obviously, I am long. Got a couple of things. Obviously, with the manipulation that's going on in the marketplace, and it is obvious, I've seen the articles and I think I've forwarded a couple to you, Greg, in fact, what are you guys -- or what can you do to further lower your costs, number one? And number two, what can you guys do to align the executive compensation to achieving those goals?

Okay. Okay, first of all, on the costs, now you're absolutely right, Chris [ph], that all we -- we just have to focus on getting our costs down so that we can sustain any metal price. We have had a lot of success in lowering our costs. We continue to strive to lower our costs, and there's 2 things we're looking at right now. One is where we truck our concentrates to and the other is power. So the first one, if we're able to truck our concentrates to a closer port -- and this port is much closer. In fact, it's less than half of the distance as the other one. The other one takes 2 days to get to its location. We could substantially lower our cost if we can get into that port. That's a big if. I want to caveat that. This has not been easy. We've been working on this for over a year. But if we can get into this new port, we could see our trucking costs hopefully go down substantially because of that. The other is power. We currently are -- as far as our operations are concerned, are 100% on diesel-generated power. We have 2 independent diesel generating power plants. We are working right now with the federal commission of electricity in Mexico, in Oaxaca, to try to get the power grid with an increased power line brought to our site. This is early days in this process, but we've been working on this for over a year as well. If we can get this power line hooked up, we could potentially cut our power cost, I'm going to just arm wave here, by potentially half just from our back of the envelope calculations thus far. So between power and trucking…

And there are no further questions at this time. Gentlemen, I'll turn the program back over to you for any additional or concluding remarks.

No, that's it. Thank you very much for the -- your attendance on this conference call. If you have any additional questions and your call did not make it in, please feel free to call myself or Greg at the office and we will be happy to take those calls. Thank you, have a good day.

Ladies and gentlemen, once again, that does conclude our conference for today. And again, thank you for joining us.