COLORADO SPRINGS – February 28, 2017 – Gold Resource Corporation (NYSE MKT: GORO) (the “Company” or “GRC”) today announced a sixth consecutive year of profitability reporting $4.4 million in net income or $0.08 per share. The Company also confirmed its previously announced 2016 annual mill production of 27,628 gold ounces and 1,857,658 silver ounces for 53,023 precious metal gold equivalent ounces (at a realized 73.1:1 silver-to-gold ratio). The Company announced its 2017 precious metal Outlook targeting a plus or minus 5 percent production range consisting of 27,500 ounces gold and 1,850,000 ounces silver. Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. The Company has returned $109 million to its shareholders in monthly dividends since commercial production commenced July 1, 2010, and offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery.
2016 ANNUAL HIGHLIGHTS
- 6th consecutive year of profitability
- $4.4 million net income, or $0.08 per share
- $83.2 million net sales
- 27,628 gold ounces produced; 1,857,658 silver ounces produced
- 53,023 precious metal gold equivalent ounces produced (73.1:1 realized silver-to-gold ratio)
- 48,725 precious metal gold equivalent ounces sold
- 1,035 tonnes copper, 4,049 tonnes lead and 14,302 tonnes zinc production
- $548 total cash cost per precious metal gold equivalent ounce
- $970 all in annual sustaining cash cost per ounce (“AISC”)
- $14.2 million cash and cash equivalents
- $3.3 million physical gold and silver bullion treasury
- $1.7 million annual dividends paid, or $0.03 per share, including $0.01 per share special dividend
- $109 million total dividends paid over 77 consecutive monthly distributions
- Expanded Arista deposit, Aguila Project, Oaxaca, Mexico
- Significantly expanded size of the Switchback vein system, Arista deposit, Oaxaca Mexico
- Ramp development cross-cut Switchback vein system, Aguila Project, Oaxaca, Mexico
- Received final mine permit and commenced development at the “Mirador Mine”, Alta Gracia Project, Oaxaca, Mexico
- Acquired high-grade Isabella Pearl project, Nevada, U.S.A.
- Acquired high-grade Mina Gold exploration property, Nevada, U.S.A.
- 2016 Proven & Probable gold and silver Reserves increased by 31% and 17% respectively
2016 Aguila Project Overview
“I am very proud to announce that 2016 delivered Gold Resource Corporation’s sixth consecutive year of profitability, four years of which were in a difficult bear market,” stated Gold Resource Corporation CEO and President, Mr. Jason Reid. “Our Company posted annual net income of $4.4 million or $0.08 per share, returned $1.7 million back to our shareholders through dividends, and continued to invest in the Company’s future growth in both Mexico and Nevada while adding cash from operations to our bank account. Our numerous successes during 2016 were accomplished without raising money, without diluting shareholders through equity sales and without going into debt.
”For the year ended December 31, 2016, the Company sold 48,725 precious metal gold equivalent ounces at a total cash cost of $548 per gold equivalent ounce. Realized 2016 average sales prices were $1,256 per ounce gold and $17.18 per ounce silver. The Company recorded revenues of $83.2 million, mine gross profit of $22.4 million, and net income of $4.4 million, or $0.08 per share. Base metal production generated $37.8 million in revenue for 2016.
The calculation of our cash cost per ounce contained in this press release is a non-GAAP financial measure. Please see "Management's Discussion and Analysis and Results of Operations" contained in the Company’s most recent Form 10-K for a complete discussion and reconciliation of the non-GAAP measures.
Original Article: http://www.goldresourcecorp.com/releases/GRC-2017-02-28-2.pdf
