COLORADO SPRINGS, CO--(Marketwired - Oct 26, 2015) - Gold Resource Corporation (NYSE MKT: GORO) (the "Company") reports preliminary production results for the third quarter ended September 30, 2015 of approximately 6,825 ounces of gold and 561,985 ounces of silver, along with significant base metals. Based on softer than expected precious metal production totals through the third quarter, the Company is lowering its 2015 Outlook by approximately 6% for gold and 16% for silver. Gold Resource Corporation is a gold and silver producer with operations in Oaxaca, Mexico and exploration in Nevada, USA. The Company has returned over $107 million to shareholders in monthly dividends since commercial production commenced July 1, 2010, and offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery.
The Company saw improvements during the third quarter in mine development, water management and mining conditions, which were all prior second quarter challenges; however, overall production for the third quarter was less than targeted largely due to lower than projected grades and higher mining dilution sustained during the quarter predominantly in the month of August. Production during the third quarter was strongest in July, weakest in August, followed by a rebound in September.
During the first three quarters of 2015, the Company's preliminary production numbers totaled approximately 21,960 ounces of gold and approximately 1,932,611 ounces of silver, delivering approximately 93% of gold and 87% of silver, respectively, year to date against the low end of the range for the Company's 2015 Outlook, which was originally set at 31,500 gold ounces and 2,970,000 silver ounces at the beginning of the year.
The Company has revised its 2015 Outlook to 29,600 gold ounces and 2,500,000 silver ounces. The revised annual production ranges represent a reduction to the low end of the original 2015 Outlook of 6% for gold ounces produced and 16% for silver ounces produced. Production during the fourth quarter to date has thus far delivered within expected revised parameters.
"As a single mine operator, we see the effect of a tough month drastically impacting a quarter's production totals, as we sustained in the month of August," stated Mr. Jason Reid, Gold Resource Corporation's President and CEO. "A multi-mine company has some latitude to adjust several operations to smooth out the tough months. Based on fourth quarter performance so far, we are optimistic we will end the year within targeted parameters for the fourth quarter, but unfortunately we do not anticipate that the current quarter can make up for production shortfalls sustained in the second and third quarters and have therefore lowered our annual production Outlook, primarily as related to our targeted silver production. Our base metal production year to date, particularly in zinc, is exceeding our expectations, which we expect to offset some of the revenue loss from our silver production shortfall."
Full financial results for the third quarter will be available at the time the Company files its quarterly report on Form 10-Q with the Securities and Exchange Commission.
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 at its producing Oaxaca, Mexico Mining Unit and exploration properties at its Nevada, USA, Mining Unit. The Company has 54,179,369 shares outstanding, no warrants, no long term debt and has returned over $107 million back to shareholders since commercial production commenced July 1, 2010. 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.
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.