Gold Resource Corp (NYSE MKT:GORO) declared Tuesday its August dividend of three cents per share, payable on September 23 to shareholders of record as of September 11.
The gold producer, with operations in the southern state of Oaxaca, Mexico, has returned more than $88 million to shareholders in monthly dividends since starting production in July 2010. The stock, which has exploded eight-fold since it began trading publically in 2006, and 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, after cutting its monthly dividend in half earlier this year in response to the precipitous precious metals price drop.
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.
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