Gold Resource Corp (NYSE MKT: GORO) has declared its monthly dividend of 3 cents per common share for May, payable on June 24 to shareholders of record as of June 11.
The dividend payment was lowered in April from 6 cents per share in light of the dramatic drop in gold prices.
The company, a low-cost gold producer with operations in the southern state of Oaxaca, Mexico, has returned more than $83 million to shareholders in monthly dividends since starting commercial production in July 2010.
It also offers investors the option to convert their cash dividends into physical gold and silver.
Earlier this month, Chief Executive Officer of Gold Resource Corp, William Reid, speaking in a conference call, reiterated the significance of the milestone reached by the company in the first three months of the year; that of the reduction of the company's accumulated deficit to zero.
"We have earned back from operations all the money spent by the company in its history. That's an accomplishment that many companies never achieve."
Reid, speaking at the conclusion of a quarter that saw $9.5 million returned to shareholders in dividends and cash flow from mine site operations came in at $25.9 million, reaffirmed the company's dedication to the pursuit of dividend payments, which he said was "very important to our philosophy."
"Our mantra has been to turn as much back to the owners as possible. We may have been the first company to have paid dividends a month after commencing production. We are very proud of the fact that we have paid back more than the IPO price was in September 2006. We have a shareholder-friendly dividend focus."
The cost per share in Gold Resource at the time of the company's IPO was $1.00, an amount that was surpassed as of the payment of the June 2012 dividend, at which point the total dividends declared since the company's start of commercial production in July 2010 reached $1.01 per share.
Reid also reiterated the Mexico-focused gold and silver miner's target of returning to shareholders one third of cash flow from mine site operations because of the yellow metal's volatility and the desire to "maximize returns to the owners," but pointed out that the desire to pay dividends tied directly or indirectly to the price of gold carries with it the implication that when the price of the metal falls, the dividend payout may also have to be reduced.
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