COLORADO SPRINGS, CO--(Marketwire - May 10, 2011) - Gold Resource Corporation (GORO) (NYSE Amex: GORO) today announced its first Company profit while reporting financial results for the first quarter ended March 31, 2011. Gold Resource Corporation is a low-cost gold producer with operations in the southern state of Oaxaca, Mexico.
2011 Q1 HIGHLIGHTS
-- Record revenue of $11.3 million
-- Company's first profit of $2 million, or $0.04 per share
-- Produced 7,479 ounces precious metal gold equivalent
-- Cash cost of $87 per gold equivalent ounce
-- Generated $8.8 million mine gross profit
-- Dividend distributions of $4.8 million, or $0.09 per share for quarter
-- Transitioned to processing Arista underground ore in March, 2011
-- Continued Arista underground mine development
Overview of Q1 2011 Results from El Aguila Project
Gold Resource Corporation's El Aguila Project produced 7,479 ounces of precious metal gold equivalent at a cash cost of $87 per gold equivalent ounce and sold its gold at an average price of $1,373/ounce and silver at $34/ounce. The mine generated a gross profit of $8.8 million.
For the three months ended March 31, 2011, the Company reported its first net income of $2 million, or $0.04 per share, compared to a net loss of $7.3 million or ($0.15) per share for the three months ended March 31, 2010. Net income per share in the three months ended March 31, 2011 increased as a result of generating record revenues from sales of metals concentrate.
The Company's Q1, 2011 mill production throughput rate from the open pit mineralization averaged 829 tonnes/day and mill head grade averaged 3.35 grams per tonne gold and 39 grams per tonne silver with recoveries averaging 81% gold and 75% silver. Mill throughput rate from the La Arista underground polymetallic mineralization averaged 501 tonnes/day and mill head grade averaged 1.94 grams per tonne gold, 405 grams per tonne silver, 0.92% lead and 1.92% zinc with recoveries averaging 86% gold, 89% silver, 90% lead and 74% zinc. The Company focused on lead and zinc separation during initial optimization and did not focus on copper separation, but expects to in Q2 2011. The underground ore processed came from development work, which dilutes grade more than what is expected from actual mining of the vein, which will start in Q2 2011.
The Arista mine was impacted from an anomalous storm on April 20th that flooded the lower levels and caused damaged to the mine and some equipment. All work stopped and the mine has been undergoing cleanup and repairs. This has delayed continued development work and mining by at least one month, which may temporarily impact production at some point in the future.
Gold Resource Corporation's President, Mr. Jason Reid, stated, "Our first-ever profitable quarter of $0.04 per share marks another milestone in the Company's progress and underscores our potential at this early stage. We are still targeting 90,000 ounces precious metal gold equivalent production this year."
Mr. Jason Reid continued, "We remain consistent in our long-term objective to return cash back to the owners of the Company: its shareholders. Using cash flow generated from mine operations, the Company declared and paid its shareholders a $0.03 per share dividend each month during the quarter and increased the dividend declared in April 2011 to $0.04 per share."
About GRC:
