-- Published: Thursday, 6 November 2014 | Print | Disqus
COLORADO SPRINGS, CO / ACCESSWIRE / November 6, 2014 / Gold Resource Corporation (NYSE MKT: GORO) (the "Company") reported production results for the third quarter ended September 30, 2014 of 17,262 ounces precious metal gold equivalent (AuEq) (calculated at actual sales price ratio of 65:1), which generated $21.1 million in revenue for the quarter. Gold Resource Corporation is a gold and silver producer with operations in the southern state of Oaxaca, Mexico. The Company has returned over $100 million to shareholders in monthly dividends since commercial production commenced July 1, 2010, and offers shareholders the option to convert their cash dividends and take delivery in physical gold and silver.
2014 Q3 HIGHLIGHTS
- 17,262 ounces AuEq mill production
- 11,923 ounces AuEq sold
- 5,878 ounces AuEq of high grade gold and silver concentrate produced and
stockpiled in ending inventory
- $364 total cash cost per ounce AuEq (after by-product credits and including 5% royalty)
- 52% decrease in total cash cost per ounce AuEq from Q3 2013
- $8.8 million Cash Flow from Mine Site Operations
- $11.4 million by-product credits, or $960 per ounce AuEq sold
- $1.6 million dividend distributions, or $0.03 per share for quarter
- $100 million in total dividends returned to shareholders since July 2010
- Completion and commissioning of the new Aguila mill Doré Facility
Overview of Q3 2014 El Aguila Project Results:
Gold Resource Corporation's El Aguila Project produced 17,262 ounces AuEq at a total cash cost of $364 per ounce. Realized average metal price sales during the quarter were $1,295 per ounce gold and $20 per ounce silver. The Company recorded a net loss of $(1.5) million, or $(0.03) per share, which if the Company had not stockpiled the 5,878 gold equivalent ounces of the high-grade gold and silver concentrates in its inventory, in preparation for processing in the new Aguila Mill Doré facility, the outcome would have resulted in net income instead of a net loss per share for the three months ended September, 30, 2014. Cash Flow from Mine Site Operations totaled $6.8 million. The Company paid $1.6 million to shareholders in dividends, or $0.03 per share during the quarter. Cash and cash equivalents at quarter end totaled $24.8 million, a 66% increase from December 31, 2013. Realized gold and silver prices increased 4% and 5%, respectively, from the third quarter of 2013.
"The Company delivered weaker than expected quarterly operating results with production levels approximately 24% lower in the quarter compared to the quarterly average of the first half of 2014," stated Gold Resource Corporation's CEO and President, Mr. Jason Reid. "The Company has implemented new mine management in response to these unsatisfactory results and believes that fourth quarter production can rebound, which puts the lower range of the Company's 2014 Outlook within reach. We stockpiled much of our high-grade gold and silver concentrates produced during the quarter in preparation for pouring Doré bars in our new Doré facility, which we began commissioning at the end of the quarter and which increased our unsold inventories. We recorded a $(0.03) per share loss which was contributed by unsold concentrate inventory as a result of stockpiling the high-grade concentrates for the Doré facility process. These inventoried ounces are planned to be processed and sold during the fourth quarter as Doré bars. By expanding our production methods, we expect to lower our treatment and royalty costs for the Doré ounces sold further optimizing operational costs. Total cash costs of $364 per precious metal gold equivalent ounce sold, calculated after by-product credits and including royalties, was 52% lower than third quarter of 2013 and in line with total cash costs the prior two quarters of this year. Though the third quarter was a challenging one, it was not without some measures of success as we reached a major Company milestone by returning an aggregate of over $100 million dollars back to shareholders in consecutive monthly dividends."
Below is a table of the key production statistics for our El Aguila Project during the three and nine months ended September 30, 2014 and 2013:
- Mill production represents metal contained in concentrates produced at the mill, which is before payable metal deductions are levied by the buyer of our concentrates. Payable metal deduction quantities are defined in our contracts with the buyer of our concentrates and represent an estimate of metal contained in the concentrates produced at our mill, for which the buyer cannot recover through the smelting process. There are inherent limitations and differences in the sampling method and assaying of estimated metal contained in concentrates that are shipped, and those contained metal estimates derived from sampling methods and assaying throughout the mill production process. The Company monitors these differences to ensure that precious metal mill production quantities are materially correct.
- Average metal prices realized vary from the market metal prices due to out of period settlement adjustments from our provisional invoices when they are settled. Our average metal prices realized will therefore differ from the market average metal prices in most cases.
- Precious metal gold equivalent mill production for the three months ended September 30, 2014 of 17,262 ounces differs from gold equivalent ounces sold for the same period of 11,923 due principally to buyer (smelter) concentrate processing deductions of approximately 1,466 gold equivalent ounces and an increase in gold equivalent ounces contained in ending inventory of approximately 3,872 ounces.
- Precious metal gold equivalent mill production for the nine months ended September 30, 2014 of 65,182 ounces differs from gold equivalent ounces sold for the same period of 53,194 principally due to buyer (smelter) concentrate processing deductions of approximately 6,918 gold equivalent ounces and an increase in gold equivalent ounces contained in ending inventory of approximately 5,070 ounces.
- Non-GAAP measure to total mine cost of sales reconciliation, which is the most comparable U.S. GAAP measure, can be found below in "Non-GAAP Measures."
About GRC:
Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in six potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The Company has 54,179,369 shares outstanding and no warrants. Gold Resource Corporation offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-K for an understanding of the risk factors involved.
Cautionary Statements:
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "plan", "target", "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that production will continue at any specific rate. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Company's 10-K filed with the SEC.
See Accompanying Tables
The following information summarizes the results of operations for Gold Resource Corporation for the three and nine months ended September 30, 2014 and 2013, its financial condition at September 30, 2014 and December 31, 2013 and its cash flows for the nine months ended September 30, 2014 and 2013. The summary data for the three and nine months ended September 30, 2014 is unaudited; the summary data for the year ended December 31, 2013 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2013, but do not include the footnotes and other information that is included in the complete financial statements. Readers are urged to review the Company's Form 10-K in its entirety, which can be found on the SEC's website at www.sec.gov.
The calculation of our cash cost per ounce contained in this press release is a non-GAAP financial measure. Please see "Management's Discussion and Analysis and Results of Operation" contained in the Company's most recent Form 10-Q and Form 10-K for a complete discussion and reconciliation of the non-GAAP measures.
CONTACT:Corporate Development
Greg Patterson
303-320-7708
www.Goldresourcecorp.com
SOURCE: Gold Resource Corporation
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-- Published: Thursday, 6 November 2014 | E-Mail | Print | Source: GoldSeek.com
