Gold Resource Corporation (NYSE Amex: GORO) today announced record results for its third quarter ending September 30, 2011, including record profits and an increase of 88% in production of precious metal gold equivalent over the second quarter of 2011. Gold Resource Corporation is a low-cost gold producer with operations in the southern state of Oaxaca, Mexico. The Company has returned over $30 million to shareholders in monthly dividends since declaring commercial production July 1, 2010.
2011 Q3 HIGHLIGHTS
• Record production of 25,289 ounces precious metal gold equivalent (AuEq)
• Record 88% AuEq production increase over Q2, 2011
• Record revenue of $37.8 million
• Cash cost of $154 per ounce AuEq
• Record mine gross profit generated $31.2 million
• Record pretax income of $24.3 million or $0.46 per share
• Record net income of $15.2 million or $0.29 per share
• Record dividend distributions of $7.4 million, or $0.14 per share for quarter
• Physical gold and silver treasury of $1.7 million
• Stock repurchase of 51,000 shares
• Increased cash in bank to $45 million
Overview of Q3 2011 Results from El Aguila Project
Gold Resource Corporation’s El Aguila Project produced 25,289 ounces of precious metal gold equivalent (AuEq) at a cash cost of $154 per AuEq ounce and realized average prices of $1,702 per ounce gold and $38 per ounce silver for its sales during the third quarter. The mine generated gross profit of $31.2 million. The Company paid $7.4 million to shareholders in dividends, converted $2 million of its newly generated cash into physical treasury of gold and silver to potentially mint into coins and repurchased 51,000 shares at an average share price of $19.01, after which the Company increased its bank account by $2.9 million over the previous quarter. In addition, the Company had receivables of $14.7 million.
“Our excellent team at the Aguila Project continues to execute and build the Company. We believe that Gold Resource Corporation’s trajectory, with record production, record revenues and record dividends, is set on aggressive growth,” stated Gold Resource Corporation’s President, Mr. Jason Reid. “Optimization of our operations over last quarter includes a 40% increase in the average tonnes mined per day, increases of metal recoveries across the board, a 65% gold grade increase and 27% silver grade increase. In addition, gold production was up 134% and silver production up 82% compared to the second quarter 2011.
Mr. Reid continued, “We are on track to reach our production goal for 2011, targeting a range of 60,000 to 70,000 precious metal gold equivalent ounces.”
To read the entire press release and related financials click on or cut and paste the following link to your web browser: http://www.goldresourcecorp.com/releases/GRC-2011-11-09-1.pdf