Gold Resource Corp confirms record production in Q3

Gold Resource Corp (AMEX:GORO) confirmed Thursday afternoon its record production forecast for the third quarter, with preliminary results of roughly 25,200 ounces of gold equivalent ouput.

The production result for the three month period ending September 30 represents an 87% increase from the previous quarter, the gold producer said.

The company, which has operations at its El Aguila project in the southern state of Oaxaca, Mexico, has returned over $28 million to shareholders in monthly dividends since declaring commercial production in July 2010.   

The level of production during the third quarter represents a current annual run rate of over 100,000 gold equivalent ounces, with continued mill optimization of metallurgical recovery and increasing average head grades from the Arista Mine contributing to these record production levels,  the company said.

Gold Resource Corp’s 87% production increase keeps the company in line with its current annual production target of 60,000 to 70,000 ounces of gold equivalent for the year.

“We are excited by these developments and will release the full financial results for the third quarter at the time we file our quarterly report with the Securities and Exchange Commission," said president Jason Reid.

"The El Aguila Project and the hard work of its team members continue to impress management each month. We look forward to a strong finish for 2011 and to a significant continued production ramp up for 2012 targeting 140,000 ounces of precious metal gold equivalent.

“We are well positioned on an exciting production and cash flow trajectory.”

In the second quarter, the company produced 13,457 ounces of gold equivalent at a cash cost of $156 per ounce from El Aguila, generating a $17.2 million gross profit from the mine. Revenue in the last quarter was $20.7 million, versus $11.3 million in the first quarter.
Last night, the company declared its instituted monthly dividend of $0.05 per common share for September payable on October 24, 2011 to shareholders of record as of October 17, 2011. This is the fifteenth dividend in as many months of commercial production and ninth of 2011.