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
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.