COLORADO SPRINGS, CO — (Marketwire) — 05/10/12 — Gold Resource Corporation (NYSE Amex: GORO) today announced record results for its first quarter ending March 31, 2012, including an increase of 308% production of precious metal gold equivalent and an increase of 281% mine gross profit over the first quarter of 2011. Gold Resource Corporation is a low-cost gold producer with operations in the southern state of Oaxaca, Mexico.
Record production of 30,528 ounces precious metal gold equivalent (AuEq)
308% AuEq production increase over Q1, 2011
Record mine gross profit generated $33.7 million
281% mine gross profit increase over Q1, 2011
Total cash cost of $191 per ounce AuEq (including 5% royalty)
Record net income of $16.1 million or $0.30 per share
693% net income increase over Q1, 2011
Pretax income of $23.4 million or $0.44 per share
Dividend distributions of $7.9 million, or $0.15 per share for quarter
Physical gold and silver treasury of $5.6 million
Successfully launched physical gold and silver dividend program
Gold Resource Corporation-s El Aguila Project produced 30,528 ounces of precious metal gold equivalent (AuEq) at a total cash cost of $191 per AuEq ounce and realized average prices of $1,740 per ounce gold and $34 per ounce silver for its sales during the first quarter. The mine generated gross profit of $33.7 million. The Company paid $7.9 million to shareholders in dividends and converted $2.9 million of its treasury into physical gold and silver. In addition, the Company successfully launched its dividend program where shareholders have the option to convert their cash dividends to physical gold and/or silver.
„The first quarter set a strong base for the Company with record production, record revenues and dividends of $7.9 million while focusing on aggressive growth,“ stated Gold Resource Corporation-s President, Mr. Jason Reid. „We maintain our 2012 production goal, targeting a range of 120,000 to 140,000 precious metal gold equivalent ounces.“
Below is a table of the key production statistics for our El Aguila Project during the three months ended March 31, 2012.
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 52,911,516 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 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.
The following information summarizes the results of operations for Gold Resource Corporation for the three months ended March 31, 2012 and 2011, its financial condition at March 31, 2012 and December 31, 2011 and its cash flows for the three months ended March 31, 2012 and 2011. The summary data for the three months ended March 31, 2012 and 2011 is unaudited; the summary data for the year ended December 31, 2011 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2011, but do not include the footnotes and other information that is included in the complete financial statements. Readers are urged to review the Company-s Form 10-K in its entirety, which can be found on the SEC-s website at .
The calculation of our cash cost per ounce contained in this press release is a non-GAAP financial measure. Please see „Management-s Discussion and Analysis and Results of Operation“ contained in the Company-s most recent Form 10-Q and Form 10-K.
Corporate Development Greg Patterson 303-320-7708
Only registered users can comment.
