Monday, 30 April 2012

Gold Resource Corp boosts monthly dividend by 20%

Gold Resource Corp (AMEX:GORO) Monday increased its monthly dividend for April by 20 percent to six cents per common share, payable on May 23.
The US-based low-cost gold producer, with operations in southern Mexico, said the April dividend marks the 22nd straight monthly dividend declared by the company, and the increase represents a current annualized dividend of 72 cents per common share and a dividend yield of 2.7 percent based on Gold Resource Corp's Friday closing price.
The gold company has declared over $47 million in dividends since starting commercial production from its El Aguila mine in July 2010, and now offers shareholders the option to convert their cash dividends into physical gold and/or silver on a monthly basis.
"With record first quarter production, the increased April dividend to six cents per common share per month speaks to the positive outlook we have for the continued success and production trajectory of the Aguila Project," said president Jason Reid.
"We have set a strong base for our 2012 production goals, and our dividend policy continues to reward the owners of the company, its long term shareholders."
Last Thursday, 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 approximately 1.4 million gold equivalent ounces at a 1 gram gold equivalent cutoff 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 El Aguila project is located 120 kilometres southeast of the capital city of Oaxaca, Mexico and is a significant, newly discovered high-grade gold and silver system.
The company's exploration drilling is now focused on expansion of the Arista deposit, which remains open at both depth and along strike extensions. Currently, three underground and two surface drill rigs continue mine development and exploration of the Arista deposit.
For the quarter that ended March 31, 2012, the gold producer made around 30,500 ounces of precious metal gold equivalent from El Aguila, an increase of 308 percent from the first quarter of 2011.
Gold Resource Corp also said earlier this month that its first quarter output was in line with its 2012 outlook for annual production of between 120,000 to 140,000 ounces of gold equivalent.
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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