Gold Resource Corp (AMEX:GORO) announced Thursday it increased its August dividend and instituted a monthly dividend policy to replace its special dividend policy.
The gold miner increased its August dividend by one cent to $0.05 per share. The dividend is payable on September 23, to shareholders on record as of September 12.
The company also announced it has instituted a regular monthly dividend policy to replace its special dividend policy.
This August payment represents the fourteenth dividend since the company entered commercial production at its El Aguila project in Mexico in July 2010. Since then, Gold Resource has returned approximately $0.48 per share, or $24.6 million in total, to shareholders in the form of special dividends.
"With record production, record revenue and record dividends paid in the second quarter, the increased August dividend to five cents per share per month, coupled with the fact that it has now been instituted, speaks to the positive outlook we have for the continued success and current production trajectory of the Aguila project," said president Jason Reid.
"Monthly production is increasing, ore grades and increasing and we continue making good strikes on the underground mine development.
"Our dividends reward the owners of the company, its long term shareholders."
Despite some challenges at its El Aguila project due to a freak storm in April, the company reported record second quarter results, beating its first ever profit recorded in the first quarter.
Gold Resource also managed to generate record revenue in the latest quarter of $20.7 million, versus $11.3 million in the previous three month period - an increase of 83%.
The company produced 13,457 ounces of gold equivalent at a cash cost of $156 per ounce, generating a $17.2 million gross profit from the El Aguila mine.
Production is set to only increase, as the company has now begun processing ore from its high grade La Arista deposit, with lower cash costs and greater output levels expected in the future.