Gold Resource Corporation (NYSE MKT:GORO) produced approximately 6,788 ounces of gold, 580,326 ounces of silver as well as base metals of copper, lead and zinc during the second quarter at its Arista mine in Oaxaca, Mexico.
GORO said it faced some challenges in the second quarter. In addition to lower metal prices, mine development slowed due to water inflow management issues and an illegal work stoppage.
The company decided to lower grade ore blocks outside of the original mine plan to deal with these issues. But, said the company in a statement, improvements in water management, mining conditions and labor issues are being addressed and resolved in the current quarter:
“Many of the challenges during the second quarter have passed, such as the ancillary effects of the protest and work stoppage”, said GORO in a statement.
In the first half of 2015, GORO has fallen slightly below its production target, but it maintains its 2015 annual Outlook of producing approximately 31,500 gold ounces and 2,970,000 silver ounces.
The company's preliminary production total of some 15,135 ounces of gold and 1,370,625 ounces of silver, delivered respectively 48.0% and 46.1% of the lower range 2015 outlook.
On an actual realized sales precious metal gold equivalent (AuEq) silver to gold ratio of 72:1, the Company has produced approximately 34,204 ounces for the first half of 2015, compared to 36,551 ounces AuEq when using the original beginning of year budgeted silver to gold ratio of 64.1:1 which reflects the drop in precious metal prices.
GORO, which has operations in Oaxaca, Mexico and exploration in Nevada, USA has returned over $104 million to shareholders in monthly dividends since the start of commercial production in July 1, 2010.
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.