Proactive Investor's  Instablog

Proactive Investor
Send Message
Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
My company:
My blog:
  • Gold Resource Declares Dividend, Shares Rise 0 comments
    Aug 23, 2013 2:37 PM | about stocks: GORO

    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.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: GORO
Back To Proactive Investor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.