Gold Resource Corp (AMEX:GORO) said Monday it has acheived record level production in the first quarter, up 53 percent from the previous three month period.
the quarter that ended March 31, 2012, the gold producer made around
30,500 ounces of precious metal gold equivalent, an increase of 308
percent from the first quarter of 2011.
This was achieved with an 825 tonne per day average throughput, with increased long-hole stoping.
US-based gold producer, which started production from its El Aguila
project in Oaxaca, Mexico in July 2010, has paid 20 straight monthly
dividends since declaring commercial production, totaling more than $43
million returned to shareholders.
The company also launched a
gold and silver dividend program last month, which gives shareholders
the option to convert their cash dividends into physical gold or silver.
Gold Resource Corp
said its first quarter output is in line with its 2012 outlook for
annual production of between 120,000 to 140,000 ounces of gold
“We are pleased with the record production increase
and will release the full financial results for the first quarter at the
time we file our quarterly report on Form 10-Q with the Securities and
Exchange Commission," said president Jason Reid in a statement Monday.
El Aguila Project and the hard work of its team members continue to
impress management each month. First quarter record production sets a
firm base from which to continue our growth trajectory of producing more
low cost ounces.”
In March, Gold Resource Corp reported record annual results, with 2011 marking its first full year of production from its El Aguila operations in Mexico.
gold company posted net income of $58.37 million, or $1.10 per share in
the year to December 31, 2011, versus a loss of $23.07 million, or 46
cents per share in 2010.
El Aguila is located 120 kilometres
southeast of the state capital city of Oaxaca, Mexico and has yielded
several strong metal samples, including 36.0 grams per tonne (g/t) gold,
and 3,100 g/t silver.
Last March, 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
Combined open pit and underground operations in 2011
yielded 66,159 ounces of gold equivalent production. This compares to
the 10,493 gold equivalent ounces produced from the six months of open
pit El Aguila operations in 2010.
As underground development
continues, Gold Resource management said on a conference call in early
March that it expects to mine more efficiently with greater tonnages and
Cash costs in 2011 were $136 per ounce of gold
equivalent, excluding royalty expense, 37 percent lower than $217 per
ounce in the six month period in 2010.
This led to record annual
revenue of more than $105 million in 2011 as the company realized much
higher gold and silver prices for its combined operations of $1,596 per
gold ounce, and $35 per silver ounce. Revenues in 2010 stood at $14.75
The company's gross profit from the mine came in at $87.2 million, way up from $9.8 million the prior year.