-- Posted Thursday, 9 August 2012 | | Disqus
NYSE MKT: GORO
COLORADO SPRINGS – August 9, 2012 – Gold Resource Corporation (NYSE MKT: GORO) today announced results for its second quarter ending June 30, 2012. Gold Resource Corporation is a low-cost gold producer with operations in the southern state of Oaxaca, Mexico.
2012 Q2 HIGHLIGHTS
• 17,211 ounces precious metal gold equivalent (AuEq) sold
• 14,488 ounces AuEq produced
• 8% AuEq production increase over prior year quarter
• $17.2 million mine gross profit generated
• $3.6 million net income, or $0.07 per share
• $8.2 million pretax income, or $0.15 per share
• $9.5 million dividend distribution, or $0.18 per share
• $5.5 million physical gold and silver treasury
• Successfully implemented physical gold and silver dividend program
• $0.8 million increase in cash and cash equivalents from first quarter
Overview of Second Quarter 2012 Results from El Aguila Project
Gold Resource Corporation’s El Aguila Project sold 17,211 ounces precious metal gold equivalent (AuEq) at a total cash cost of $509 per ounce AuEq in the second quarter. Average prices realized on sales during second quarter were $1,631 per ounce gold and $27 per ounce silver. The Company produced 14,488 ounces (AuEq) before payable metal deductions. Mine gross profit generated was $17.2 million. The Company paid $9.5 million to shareholders in dividends and converted $1.3 million of its treasury into physical gold and silver. In addition, the Company successfully implemented its physical dividend program where shareholders have the option to convert their cash dividends to physical gold and/or silver.
“The second quarter was a challenge as infrastructure requirements slowed the development and stoping of high-grade ore zones at La Arista,” stated Gold Resource Corporation’s President, Mr. Jason Reid. “This resulted in processing diluted development ore and stoping from available lower grade ore zones. Even with mill production for the quarter below our target, it is still impressive that we were profitable, we paid $9.5 million in dividends to the owners of the Company, and we were still able to put approximately $800,000 in the bank.”
Mr. Reid continued, “Our total cash cost per ounce of gold equivalent sold this quarter was high as a direct result of the lower production. Had we achieved our targeted production of 30,000 gold equivalent ounces, we believe total cash costs would have been equal to about half of the $509 per gold equivalent ounce we reported. We believe this higher total cash cost number to be temporary and will decrease with anticipated higher production in the current and future quarters.”
“We expect increased production from high-grade ore zone blocks between levels 7 through 10 prepared in the second quarter, which we are now actively stoping,” stated Mr. Reid.
The Company will host a conference call at 11:00 a.m. EDT on Friday, August 10th. Conference call details can be found on the Company website at www.goldresourcecorp.com.
To view the entire press release, click on or cut and paste the following link to your web browser: http://goldresourcecorp.com/releases/GRC-2012-08-09-1.pdf
-- Posted Thursday, 9 August 2012 | Digg This Article
| Source: GoldSeek.com
