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Gold Resource Corporation Reports Second Quarter Net Income of $5.6 Million, or $0.10 per Share; Maintains 2016 Production Outlook

 -- Published: Tuesday, 2 August 2016 | Print  | Disqus 

COLORADO SPRINGS, CO--(Marketwired - Aug 2, 2016) -  Gold Resource Corporation ( NYSE MKT : GORO ) (the "Company") reported production results for the second quarter ended June 30, 2016 of 10,011 ounces of gold and 572,499 ounces of silver, which along with base metal revenue generated $26.2 million in net revenue for the quarter. Gold Resource Corporation is a gold and silver producer with operations in Oaxaca, Mexico and exploration in Nevada, USA. The Company has returned $108 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.

2016 Q2 HIGHLIGHTS

  • 10,011 gold ounces produced
  • 572,499 silver ounces produced
  • $26.2 million net sales
  • $317 total cash cost per gold equivalent ounce (after by-product credits)
  • $15.5 million adjusted cash flow from mine site operations
  • $9.8 million by-product credits, or $631 per ounce sold
  • $0.3 million dividend distributions, or $0.005 per share for quarter

Overview of Q2 2016 Results

Gold Resource Corporation's Aguila Project produced 17,706 gold equivalent ounces at a total cash cost of $317 per ounce (after by-product credits). Realized average metal price sales during the quarter were $1,271 per ounce gold and $17.08 per ounce silver. The Company recorded net income of $5.6 million, or $0.10 per share. Adjusted cash flow from mine site operations totaled $15.5 million. The Company paid $0.3 million to shareholders in dividends, or $0.005 per share during the quarter. Cash and cash equivalents at quarter end totaled $13.3 million. Realized gold and silver prices increased 6% and 2%, respectively, compared to the second quarter of 2015.

Production for the first half of 2016 included 16,474 ounces of gold and 1,006,640 ounces of silver. The Company maintains its 2016 Annual Outlook of 26,000 gold ounces, 1,900,000 silver ounces, 1,100 tonnes of copper, 3,200 tonnes of lead and 12,900 tonnes of zinc.

The following table summarizes certain information about our mining operations for the three and six months ended June 30, 2016 and 2015:

        
 Three months ended
June 30,
 Six months ended
June 30,
 2016 2015 2016 2015
Milled           
 Tonnes Milled (1) 104,333  102,522  217,478  194,881
 Tonnes Milled per Day (2) 1,228  1,127  1,265  1,077
Grade           
 Average Gold Grade (g/t) 3.27  2.25  2.68  2.66
 Average Silver Grade (g/t) 182  189  156  235
 Average Copper Grade (%) 0.40  0.35  0.30  0.38
 Average Lead Grade (%) 1.40  1.24  1.20  1.35
 Average Zinc Grade (%) 4.40  3.59  3.90  3.65
Recoveries           
 Average Gold Recovery (%) 92  92  91  91
 Average Silver Recovery (%) 94  93  93  93
 Average Copper Recovery (%) 77  82  76  79
 Average Lead Recovery (%) 71  74  71  75
 Average Zinc Recovery (%) 84  82  84  82
Mill production (before payable metal deductions) (3)           
 Gold (ozs.) 10,011  6,788  16,474  15,135
 Silver (ozs.) 572,499  580,326  1,006,640  1,370,625
 Copper (tonnes) 320  293  564  586
 Lead (tonnes) 1,009  943  1,847  1,956
 Zinc (tonnes) 3,813  3,038  7,074  5,800
Payable metal sold           
 Gold (ozs.) 8,197  7,096  14,413  15,774
 Silver (ozs.) 548,537  538,848  927,331  1,266,164
 Copper (tonnes) 319  268  539  546
 Lead (tonnes) 974  907  1,737  1,827
 Zinc (tonnes) 3,424  2,559  6,023  4,763
Average metal prices realized (4)           
 Gold ($ per oz.) 1,271  1,201  1,240  1,202
 Silver ($ per oz.) 17.08  16.70  15.97  16.72
 Copper ($ per tonne) 4,740  6,022  4,497  5,773
 Lead ($ per tonne) 1,717  1,908  1,757  1,819
 Zinc ($ per tonne) 1,940  2,275  1,844  2,152
Precious metal gold equivalent ounces produced (mill production) (3)           
 Gold Ounces 10,011  6,788  16,474  15,135
 Gold Equivalent Ounces from Silver 7,695  8,070  12,971  19,069
 Total Precious Metal Gold Equivalent Ounces 17,706  14,858  29,445  34,204
Precious metal gold equivalent ounces sold           
 Gold Ounces 8,197  7,096  14,413  15,774
 Gold Equivalent Ounces from Silver 7,373  7,493  11,949  17,616
 Total Precious Metal Gold Equivalent Ounces 15,570  14,589  26,362  33,390
 Total cash cost before by-product credits per precious metal gold equivalent ounce sold (5)$948 $1,162 $1,088 $969
 Total cash cost after by-product credits per precious metal gold equivalent ounce sold (5)$317 $533 $459 $469
 Total all-in sustaining cost per precious metal gold equivalent ounce sold (5)$649 $854 $916 $842
 Total all-in cost per precious metal gold equivalent ounce sold (5)$755 $1,368 $1,035 $1,112
             
(1)For the second quarter and first half of 2016, this includes 10,608 and 27,305 tonnes, respectively of low-grade stockpile open pit ore.
(2)Based on actual days the mill operated during the year.
(3)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 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 are 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.
(4)Average metal prices realized vary from the market metal prices due to final 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.
(5)For a reconciliation of this non-GAAP measure to total mine cost of sales, which is the most comparable U.S. GAAP measure, please see 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 at its producing Oaxaca, Mexico Mining Unit and exploration properties at its Nevada, USA, Mining Unit. The Company has 54,266,706 shares outstanding, no warrants, no long term debt and has returned $108 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.

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.


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 -- Published: Tuesday, 2 August 2016 | E-Mail  | Print  | Source: GoldSeek.com

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