Friday 23 August 2013

Gold Resource declares dividend, shares rise

Gold Resource Corp. (NYSEMKT:GORO) is surging 5.4% on Friday morning after declaring a monthly three cent dividend. 
The Colorado Springs, Colorado-based company, which has a 100% interest in six properties in the Mexican state Oaxaca, paid its first dividend three years ago. As of the end of July, Gold Resource had returned $86 million to shareholders.
The dividend will be paid on August 23. The ex-date for the payout is August 8, while the date of record is August 12.
The stock, which has exploded eight-fold since it began trading publically in 2006, has a yield of about 4%.
Earlier this month, Gold Resource reported a 42% rise in production in the second quarter. It recorded a net loss of $1.37 million, or three cents per share, compared to a net profit of $4.13 million, or seven cents per share a year ago. The miner said mill expansion was the main reason for the loss and expects costs to drop once the mill runs at full capacity.
The company sold 19,992 ounces of precious metal during the quarter, at realized average prices of $1,386 per ounce of gold and $23 per ounce of silver. Precious metals prices dropped dramatically in the second quarter, with the price of gold tanking 23% during the period, hurting miners everywhere.
Total cash costs were higher, at $645 per ounce of gold equivalent, including a five per cent royalty, compared to $509 per ounce in the same period last year. 
The gold miner, with cash and equivalents of $30.4 million at quarter end, realized $12.5 million in cash flow from mine site operations and distributed dividends of $6.4 million or 12 cents per share for the three month period.
The company said it continues to target increased production levels in anticipation of increased milling capacity later this year, expecting a decrease in production costs with higher mill throughput.

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