A strong performance at its Mexico operations helped Gold Resource Corporation (NYSEAMERICAN:GORO) post net income of US$3 million in its third quarter, compared to a loss of US$781,000 in the same period a year ago.
The miner posted record gold production in the three months to end September at 11,165 ounces of gold, aided by the contribution of its new Nevada (Isabella) mine, which added 3,703 ounces.
The quarter also saw 477,297 ounces of silver generated, which, along with base metal revenue, resulted in revenue for the firm of US$40.1 million (2018: US$24.2 million).
As previously reported, GORO recently increased its gold production outlook across all its mines by 42% to 38,400 ounces.
During the quarter, the firm paid US$0.3 million to shareholders in dividends or US$0.005 per share. Cash and equivalents at the end of the quarter came in at US$8.8 million.
"Our Oaxaca mining unit’s strong operational results, coupled with our continued ramp up of our Isabella Pearl mine, which recently declared commercial production, resulted in record gold production for the third quarter,” noted Jason Reid, the president and CEO at GORO.
"The company is on a trajectory to increase its future global annual gold production by more than 100 percent," he added.
"We are also on a trajectory of shifting the company’s primary revenue distribution to gold with continued excellent exposure to silver and base metals.
A multi-jurisdictional mining company
"In addition, we have become a multi-jurisdictional mining company with two producing mining units and a vast property portfolio. These and other positive results enabled the company’s board of directors to increase the monthly instituted dividend 100 percent with last week’s October dividend declaration.”
At the Mexico mines (Arista, Aguila open pit and Mirador mine), the firm sold 10,887 of precious metal gold equivalent ounces in the third quarter at a total cash cost of US$197 per ounce (after by-product credits), benefiting from strong base metal production and sales.
Average realized metal prices during the quarter for Mexico included US$1,490 per ounce gold and US$17.08 per ounce silver, the firm noted.
GORO sold 4,044 gold ounces from its Isabella Pearl mine at an average realized price of US$1,481 per ounce.
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