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Gold Resource Corp (AMEX:GORO) declared after markets closed Tuesday its monthly dividend of six cents per share for May.


The low-cost gold producer said it would payout the monthly dividend on June 25, to shareholders on record as of June 11.


Last month, the company increased its monthly dividend by 20 percent to six cents per common share.


The company offers shareholders the option to convert their monthly cash dividend into either physical gold or silver. Shareholders can now set up an “individual bullion account”, where cash dividends are converted into Gold Resource Corp “Double Eagle” one ounce .999 fine gold or one ounce .999 fine silver rounds.


Gold Resource started production from its El Aguila project in Oaxaca, Mexico in July 2010. The May dividend marks the 23rd straight monthly dividend declared by the company.


Earlier this month, the company announced record results for its first quarter that it said set a “strong base”, with gold equivalent production quadrupling year-over-year and mine gross profit more than tripling.


For the three months to March 31, the US-based gold producer recorded net income of $16.1 million, or 29 cents per diluted share, versus a profit of $2.03 million, or 4 cents per diluted share, a year earlier.


Gross profit from the company’s El Aguila mine in Oaxaca, Mexico totalled $33.7 million, up 281 percent from $8.84 million in the first quarter of 2011.


The company said it paid $7.9 million to shareholders in dividends for the quarter, or 15 cents per share, and converted $2.9 million of its treasury into physical gold and silver.


El Aguila is located 120 kilometres southeast of the state capital city of Oaxaca, Mexico and has yielded several strong metal samples, including 36.0 grams per tonne (g/t) gold, and 3,100 g/t silver.


In April, the company reported preliminary results from a resource estimate compiled from drilling data at its underground La Arista vein system at the El Aguila project in Mexico.


Measured and indicated resources, over a 10-year mine life, include roughly 1.4 million gold equivalent ounces at a one gram gold equivalent cut-off from 4.4 million tonnes grading 2.13 grams per tonne (g/t) gold, 212 g/t silver, 0.32% copper, 1.23% lead and 4.11% zinc.


In March of last year, the company announced that it had begun the transition from processing lower grade, open pit ore, to processing underground ore from the high grade La Arista deposit at El Aguila.


The company has 100 percent interest in six potential high-grade gold and silver properties in Mexico’s southern state of Oaxaca.

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