COLORADO SPRINGS, CO -- (Marketwire) -- 11/15/12 -- Gold Resource Corporation (NYSE MKT: GORO) (the Company) today announced results for its third quarter ending September 30, 2012. Gold Resource Corporation is a low-cost gold producer with operations in the southern state of Oaxaca, Mexico.
2012 Q3 HIGHLIGHTS
•22,336 ounces precious metal gold equivalent (AuEq) produced •18,059 ounces (AuEq) sold •54% AuEq production increase over prior quarter •$23.8 million mine gross profit generated •$13.1 million pretax income, or $0.26 per share •$7.3 million net income, or $0.14 per share •$9.5 million dividend distribution, or $0.18 per share •$6.6 million physical gold and silver in treasury •Continued physical gold and silver dividend program
Overview of Third Quarter 2012 Results from El Aguila Project
Gold Resource Corporation's El Aguila Project produced 22,336 ounces (AuEq) before payable metal deductions. The Company sold 18,059 ounces precious metal gold equivalent (AuEq) at a total cash cost of $459 per ounce AuEq in the third quarter. Average prices realized on sales during the quarter were $1,769 per ounce gold and $32 per ounce silver. Mine gross profit generated was $23.8 million. The Company paid $9.5 million to shareholders in dividends. The Company continued its physical dividend program where shareholders have the option to convert their cash dividends to physical gold and/or silver.
"Our 54% increase in third quarter production was the result of overcoming many challenges including increasing water, increasing CO2 gas and mine development hurdles," stated Gold Resource Corporation's President, Mr. Jason Reid. "We continued to upgrade our management team which I believe was in large part the reason behind the increase in production. The positive takeaway from the quarter should include increased production, continued profitability, lowered total cash costs, and returning $9.5 million in dividends to the owners of the Company," stated Mr. Reid.
The Company will host a conference call at 11:00 a.m. EST on Thursday, November 15. Conference call details can be found on the Company website at www.goldresourcecorp.com.
Below is a table of the key production statistics for our El Aguila Project during the three and nine months ended September 30, 2012:
Production and Sales Statistics La Arista La Arista Underground Underground Mine Mine ------------------- --------------------- Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September September September September 30, 30, 30, 30, --------- --------- ---------- ---------- 2012 2011 2012 2011 --------- --------- ---------- ----------Production SummaryMilled: Tonnes Milled 76,786 57,156 211,792 112,372 Tonnes Milled per Day 835 621 773 621Grade: Average Gold Grade (g/t) 4.17 3.89 4.08 3.02 Average Silver Grade (g/t) 320 491 365 438 Average Copper Grade (%) 0.43 0.47 0.44 0.44 Average Lead Grade (%) 2.14 1.30 1.88 1.18 Average Zinc Grade (%) 4.43 2.91 4.01 2.58Recoveries: Average Gold Recovery (%) 88 89 89 90 Average Silver Recovery (%) 94 93 93 93 Average Copper Recovery (%) 75 78 74 75 Average Lead Recovery (%) 64 77 69 78 Average Zinc Recovery (%) 80 77 77 73Mill production (before payable metal deductions)(2) Gold (ozs.) 9,047 6,371 24,611 9,855 Silver (ozs.) 739,576 841,820 2,317,110 1,472,486 Copper (tonnes) 245 211 687 369 Lead (tonnes) 1,051 569 2,734 1,027 Zinc (tonnes) 2,705 1,281 6,567 2,117Payable metal sold(2) Gold (ozs.) 7,287 5,605 20,317 13,219 Silver (ozs.) 599,501 780,317 1,982,868 1,356,806 Copper (tonnes) 214 189 596 270 Lead (tonnes) 869 497 2,231 888 Zinc (tonnes) 1,993 938 5,003 1,422Average metal prices realized Gold (oz.) $ 1,769 $ 1,702 $ 1,690 $ 1,553 Silver (oz.) $ 32 $ 38 $ 31 $ 37 Copper ( tonne) $ 8,161 $ 8,835 $ 8,162 $ 8,869 Lead (tonne) $ 2,107 $ 2,346 $ 2,080 $ 2,402 Zinc ( tonne) $ 1,999 $ 2,182 $ 1,997 $ 2,185Gold equivalent ounces produced (mill production)(2) Gold Ounces 9,047 6,371 24,611 9,397 Gold Equivalent Ounces from Silver 13,289 18,918 42,038 31,270 --------- --------- ---------- ---------- Total Gold Equivalent Ounces 22,336 25,289 66,649 40,667 --------- --------- ---------- ----------Gold equivalent ounces sold(2) Gold Ounces 7,287 5,605 20,317 13,219 Gold Equivalent Ounces from Silver 10,772 17,535 35,974 32,651 --------- --------- ---------- ---------- Total Gold Equivalent Ounces 18,059 23,140 56,291 45,870 --------- --------- ---------- ---------- Total Cash Cost per Gold Equivalent Ounce(1) $ 459 $ 260 $ 396 $ -
