Tuesday, 10 September 2013

Gold Resource Corp's CEO to retire, president Jason Reid succeeds

Gold Resource Corp (NYSE MKT:GORO) has said that its CEO, William Reid, will retire frm the company at the end of the month. 
William Reid will continue to serve as chairman to assist with the management transition, with current president Jason Reid to take the helm, effective October 1. 
Jason will also continue to serve as president, and as a director, having been appointed president in July 2010. He also served as VP of corporate development for Gold Resource Corp prior to this, from January 2008, and was named to the board of directors in 2010. He joined the company in 2006. 
"The Board of Directors believes he has been instrumental in managing the company from its evolution as a precious metal explorer to a precious metal producer and dividend payer and will continue to provide a continuity of strategy, culture and vision for the organization," the Gold Resource Corpstatement read.
William Reid, in the release Tuesday, commented on his departure: “I come to this retirement decision with appreciation for all of the people I have known and worked with during my career.  I embark on my retirement with the strong belief that the company is in great hands to continue building value for its shareholders."
The board has also appointed Bill Conrad to serve as vice-chairman, the company said, with Conrad being the company's longest tenured independent director, serving on the board since the gold producer went public in 2006. Conrad is also chairman at PetroShare Corp, a privately held oil and gas exploration company, and is a director at Synergy Resources
The gold producer, with operations in the southern state of Oaxaca, Mexico, has returned more than $88 million to shareholders in monthly dividends since starting production in July 2010. The stock, which has exploded eight-fold since it began trading publically in 2006, has a yield of about 4%.
In August, 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 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, after cutting its monthly dividend in half earlier this year in response to the precipitous precious metals price drop. 
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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