COLORADO SPRINGS, CO, United States, via ETELIGIS INC., 08/07/2014 – – Gold Resource Corporation (NYSE MKT:GORO) (the "Company") reported production results for the second quarter ended June 30, 2014 of 24,172 ounces precious metal gold equivalent (AuEq) (calculated at actual sales price ratio of 67:1), which generated $33.7 million in revenues and net income of $7.8 million for the quarter, while decreasing its total cash cost per ounce AuEq by 32% over the second quarter of 2013.Gold Resource Corporation is a gold and silver producer with operations in the southern state of Oaxaca, Mexico.The Company has returned over $98 million to shareholders in monthly dividends since commercial production commenced July 1, 2010, and offers shareholders the option to convert their cash dividends and take delivery in physical gold and silver.
2014 Q2 HIGHLIGHTS
-24,172 ounces AuEq mill production
-20,647 ounces AuEq sold
-$438 total cash cost per ounce AuEq (after by-productcredits and including 5% royalty)
-32% decrease in total cash cost per ounce AuEq fromQ2 2013
-$19.4 million Cash Flow from Mine SiteOperations
-$7.8 million net income, or $0.14 per share
-$1.6 million dividend distributions, or $0.03per share for quarter
-$10.2 million Cash and Cash Equivalents increasefrom prior quarter to $29.6 million
-1,098 tonnes milled per day, a 27% increase over2013 annual average
-$8.5 million by-product credits, or $411 perounce AuEq sold
Overview of Q2 2014 El Aguila Project Results
Gold Resource Corporation's El Aguila Project produced 24,172 ounces AuEq at a total cash cost of $438 per ounce.Realized average metal price sales during the quarter were $1,276 per ounce gold and $19 per ounce silver.Net income totaled $7.8 million, or $0.14 per share.Cash Flow from Mine Site Operations totaled $19.4 million.The Company paid $1.6 million to shareholders in dividends or $0.03 per share during the quarter.Cash and cash equivalents at quarter end totaled $29.6 million,increasing 98% during the first six months of 2014.Gold and silver prices decreased 7.9% and 17.4%, respectively, from the second quarter of 2013.
"The Company delivered strong second quarter operating results with production increasing 2% compared to first quarter, and increasing 17% over second quarter of 2013," stated Gold Resource Corporation's CEO and President, Mr. Jason Reid."Total cash costs of $438 per precious metal gold equivalent ounce sold, calculated after by-product credits and including royalties, was 32% lower than second quarter of 2013.The Aguila Project continues to generate profits even in today's lower precious metal price environment, allowing the Company to invest in its Oaxaca Mining Unit, build its treasury, and distribute monthly dividends to our shareholders.The Company remains on track to meet its annual production outlook of 85,000 to 100,000 ounces of precious metal gold equivalent."
Below is a table of the key production statistics for our El Aguila Project during the three and six months ended June 30, 2014 and 2013:
About GRC:
Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital.The Company has 100% interest in six potential high-grade gold and silver properties in Mexico's southern state of Oaxaca.The Company has 54,179,369 shares outstanding and no warrants.Gold Resource Corporation offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery.For more information, please visit GRC's website, located atwww.Goldresourcecorp.comand read the Company's 10-K for an understanding of the risk factors involved.
Cautionary Statements:
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "plan", "target", "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements.Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that production will continue at any specific rate.Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Company's 10-K filed with the SEC.
See Accompanying Tables
The following information summarizes the results of operations for Gold Resource Corporation for the three and six months ended June 30, 2014 and 2013, its financial condition at June 30, 2014 and December 31, 2013 and its cash flows for the six months ended June 30, 2014 and 2013.Thesummary datafor the three and six months ended June 30, 2014 is unaudited; the summary data for the year ended December 31, 2013 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2013, but do not include the footnotes and other information that is included in the complete financial statements.Readers are urged to review the Company's Form 10-K in its entirety, which can be found on the SEC's website atwww.sec.gov.
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 Operation" contained in the Company's most recent Form 10-Q and Form 10-K for a complete discussion and reconciliation of the non-GAAP measures.
Contacts:
Corporate Development
Greg Patterson
303-320-7708
