Release date- 10082012 – COLORADO SPRINGS – Gold Resource Corporation (NYSE MKT: GORO) today announced results for its second quarter ending June 30, 2012.
Gold Resource Corporation is a low-cost gold producer with operations in the southern state of Oaxaca, Mexico.
2012 Q2 HIGHLIGHTS
17,211 ounces precious metal gold equivalent (AuEq) sold
14,488 ounces AuEq produced
8% AuEq production increase over prior year quarter
$17.2 million mine gross profit generated
$3.6 million net income, or $0.07 per share
$8.2 million pretax income, or $0.15 per share
$9.5 million dividend distribution, or $0.18 per share
$5.5 million physical gold and silver treasury
Successfully implemented physical gold and silver dividend program
$0.8 million increase in cash and cash equivalents from first quarter
Overview of Second Quarter 2012 Results from El Aguila Project
Gold Resource Corporation’s El Aguila Project sold 17,211 ounces precious metal gold equivalent (AuEq) at a total cash cost of $509 per ounce AuEq in the second quarter. Average prices realized on sales during second quarter were $1,631 per ounce gold and $27 per ounce silver. The Company produced 14,488 ounces (AuEq) before payable metal deductions.
Mine gross profit generated was $17.2 million. The Company paid $9.5 million to shareholders in dividends and converted $1.3 million of its treasury into physical gold and silver. In addition, the Company successfully implemented its physical dividend program where shareholders have the option to convert their cash dividends to physical gold and/or silver.
‘The second quarter was a challenge as infrastructure requirements slowed the development and stoping of high-grade ore zones at La Arista,’ stated Gold Resource Corporation’s President, Mr. Jason Reid. ‘This resulted in processing diluted development ore and stoping from available lower grade ore zones.
Even with mill production for the quarter below our target, it is still impressive that we were profitable, we paid $9.5 million in dividends to the owners of the Company, and we were still able to put approximately $800,000 in the bank.’
Mr. Reid continued, ‘Our total cash cost per ounce of gold equivalent sold this quarter was high as a direct result of the lower production. Had we achieved our targeted production of 30,000 gold equivalent ounces, we believe total cash costs would have been equal to about half of the $509 per gold equivalent ounce we reported. We believe this higher total cash cost number to be temporary and will decrease with anticipated higher production in the current and future quarters.’
‘We expect increased production from high-grade ore zone blocks between levels 7 through 10 prepared in the second quarter, which we are now actively stoping,’ stated Mr. Reid. The Company will host a conference call at 11:00 a.m. EDT on Friday, August 10th. Conference call details can be found on the Company website at www.goldresourcecorp.com.
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 52,828,776 shares outstanding, no warrants and no debt.
Gold Resource Corporation is the only Company to offer its shareholders a dividend option to obtain physical gold or silver in addition to cash. 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.
Contact:
Greg Patterson
Tel: 303-320-7708
www.Goldresourcecorp.com
