Gold Resource Corporation (NYSE MKT:GORO) a gold and silver producer with operations in Mexico, has declared its monthly instituted dividend of $0.01 per common share for May 2015 payable on June 23, 2015 to shareholders of record as of June 11, 2015.
Shareholders have the option to convert their cash dividends into physical gold and silver and take delivery.
The gold and silver producer with operations in Oaxaca, Mexico and exploration in Nevada, USA, which returned over $103 million to shareholders in monthly dividends since it became a commercial producer on July 1, 2010, has started to look for a replacement for Joe Rodriguez, who recently resigned as Chief Financial Officer.
Rodriguez is leaving amicably to pursue other career opportunities and John Labate will take over as interim CFO, until Gold Resource finds a successor.
Labate has over thirty years of financial management and accounting experience and knows the resource sector well, having consulted for Gold Resource. He has served as the Chief Financial Officer for Golden Star Resources Ltd., Constellation Copper Corporation and Crown Resources Corporation.
On May 8, Gold Resource Corp reported a net income of US$5.1 million, or US$0.09/share for the first quarter of 2015 on sales of US$28.4 million, all generated at its Aguila Project in Mexico, based on the production of 19,347 of precious metal gold equivalent (AuEq) ounces.
The company says it remains on track to reach its annual production outlook of 80,000 to 90,000 AuEq ounces at a 64.1:1 ratio.
The company’s cost cutting measures, which helped to keep production costs at US$416 per AuEq ounce, contributed to the robust performance despite lower market prices for precious metals year over year. Cash flow from operations for the quarter was US$15.8 million.
The favorable Q1 2015 results follow a stellar 2014 annual performance for Gold Resource, which last March recorded its highest annual production ever for both gold and silver and 28 percent lower cash costs.
For the year ending December 31, the Mexico-focused miner said it produced record gold and silver ounces, for a total of 83,903 ounces of gold equivalent. Gold output increased 4.7 percent over 2013, while silver production rose 8.7 percent.
As gold and silver prices remain low, Gold Resource continues to focus on mining tonnes, based on the net smelter return values per tonne of all the metals, to maximize cash flow, paying more attention to margins and less on ounces while looking for opportunities to cut costs and other efficiencies.
Separately, Gold Resource expects to replace all the tonnes mined again this year by testing the extensions of its Arista deposit, which has a total of 1.54 million tonnes of reserves grading 7.21 grams per tonne (g/t) gold equivalent. It is also planning to further explore the new polymetallic Switchback vein system discovery at the project, with a total of three exploration drills currently in operation at its Oaxaca operations.
The exploration budget for 2015 at its Mexico mining unit is $9.7 million, the company said.