Gold Resource Corporation (NYSE MKT:GORO) had a weaker than anticipated second quarter due to lower metal prices, water management difficulties and an unauthorized work stoppage but the company expects improvements for the rest of the production year.
The Mexico-focused gold and silver miner, operating from its El Aguila mine in Oaxaca, said it produced 6,788 ounces of gold, 580,326 ounces of silver ounces, generating US$23.3 million in net revenue for the quarter ending on June 30.
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:
"Halfway through the 2015 production year, the Company has produced 15,135 ounces of gold and 1,370,625 ounces of silver, delivering approximately 96% of expected gold production and 92% of expected silver production of the Company's lower range 2015 annual Outlook”, said Gold Resource Corporation's CEO and President, Mr. Jason Reid.
The Company believes the lower range of its 2015 annual production guidance is achievable:
“Many of the challenges during the second quarter are behind us, such as the ancillary effects of the protest and work stoppage and third quarter mine improvements are underway, including implementing long-term solutions to help remediate the excess water issues," Reid said.
GORO produced 14,858 ounces AuEq at a total cash cost of $533 per ounce, realizing average metal price sales of US$1,201 per ounce gold and $16.70 per ounce silver for the second quarter, respectively 5.9% and 11.9% lower compared to the same period a year ago.
The Company recorded net income of $0.8 million, or $0.01 per share with cash flow from mine site operations totaling US$9.4 million.
Gold Resource predicts many mineral draw points from its six properties, along its 55 kilometer mineralized trend, to feed both circuits of its Aguila mill. The gold and silver producer with 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.
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 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.