The US-based low-cost gold producer, with operations in southern Mexico, said the April dividend marks the 22nd straight monthly dividend declared by the company, and the increase represents a current annualized dividend of 72 cents per common share and a dividend yield of 2.7 percent based on Gold Resource Corp's Friday closing price.

The gold company has declared over $47 million in dividends since starting commercial production from its El Aguila mine in July 2010, and now offers shareholders the option to convert their cash dividends into physical gold and/or silver on a monthly basis.

"With record first quarter production, the increased April dividend to six cents per common share per month speaks to the positive outlook we have for the continued success and production trajectory of the Aguila Project," said president Jason Reid.

"We have set a strong base for our 2012 production goals, and our dividend policy continues to reward the owners of the company, its long term shareholders."

Last Thursday, the company reported preliminary results from a resource estimate compiled from drilling data at its underground La Arista vein system at the El Aguila project in Mexico.

Measured and indicated resources, over a 10-year mine life, include approximately 1.4 million gold equivalent ounces at a 1 gram gold equivalent cutoff from 4.4 million tonnes grading 2.13 grams per tonne (g/t) gold, 212 g/t silver, 0.32% copper, 1.23% lead and 4.11% zinc.

In March of last year, the company announced that it had begun the transition from processing lower grade, open pit ore, to processing underground ore from the high grade La Arista deposit at El Aguila.

The El Aguila project is located 120 kilometres southeast of the capital city of Oaxaca, Mexico and is a significant, newly discovered high-grade gold and silver system.

The company's exploration drilling is now focused on expansion of the Arista deposit, which remains open at both depth and along strike extensions. Currently, three underground and two surface drill rigs continue mine development and exploration of the Arista deposit.

For the quarter that ended March 31, 2012, the gold producer made around 30,500 ounces of precious metal gold equivalent from El Aguila, an increase of 308 percent from the first quarter of 2011.

Gold Resource Corp also said earlier this month that its first quarter output was in line with its 2012 outlook for annual production of between 120,000 to 140,000 ounces of gold equivalent.

The company has 100 percent interest in six potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. 

With a background of more than 30 years in management and financials, he served as vice-president, CFO and secretary for Metallica Resources for 11 years.

Prior to that, Blacketor worked for Bear Creek Mining (CVE:BCM), where he also held the role of CFO.

Additionally, he has held senior management positions with companies like Pincock, Allen & Holt Inc., and Touche Ross & Co.

A graduate from Indiana University, Blacketor holds a Master's of Business Administration and is also a certified public account in Colorado.

"Blacketor’s extensive mining industry experience strengthens our management team and will make an important contribution to the company’s aggressive growth profile," president Jason Reid said in a press release.

In February, the gold producer reported record annual results, with 2011 marking its first full year of production from its El Aguila operations in Oaxaca, Mexico.

The gold company, which began commercial production from its El Aguila project in Oaxaca, Mexico in July 2010, posted net income of $58.37 million, or $1.10 per share in the year to December 31, 2011, versus a loss of $23.07 million, or 46 cents per share in 2010.

El Aguila is located 120 kilometres southeast of the state capital city of Oaxaca, Mexico and has yielded several strong metal samples, including 36.0 grams per tonne (g/t) gold, and 3,100 g/t silver.

Gold Resource is a low cost gold producer focused on pursuing development of gold and silver projects.

The company has a majority stake in six potential high-grade gold and silver properties in Mexico's southern state of Oaxaca.

Shares of the company rose 72 cents, or 3.03 percent, to reach $24.47 each in trade on the AMEX Exchange on Monday afternoon.

Under his new role, Irvine will help develop the company’s Mexican operations and as well as projects outside Mexico.

Once in Mexico, he will aid country manager Juan Manuel Flores to continue development of the company’s El Aguila project, and to advance the Oaxaca mining unit's additional properties.

With more than 22 years of industry experience, Irvine holds a bachelor of science in geology and a bachelor of science in mining engineering from the University of New Brunswick and from Queen’s University in Ontario, respectively.

He has also worked in countries like Canada, Mexico and Central and South America. In the past six years, Irvine has helped start-up three new mining operations in Bolivia, Argentina and Mexico.

“We are pleased to welcome Rick to the company,” Gold Resources president said in a statement Monday.

“Rick brings a wealth of experience uniquely matched to our goal to grow the company's current operations in Mexico and globally.”

Last week, Gold Resource reported record annual results, with 2011 marking its first full year of production from its El Aguila operations in Oaxaca, Mexico.

The gold company, which began commercial production from its El Aguila project in Oaxaca, Mexico in July 2010,  posted net income of $58.37 million, or $1.10 per share in the year to December 31, 2011, versus a loss of $23.07 million, or 46 cents per share in 2010.

El Aguila is located 120 kilometres southeast of the state capital city of Oaxaca, Mexico and has yielded several strong metal samples, including 36.0 grams per tonne (g/t) gold, and 3,100 g/t silver.

Gold Resource Corp. is a low cost gold producer focused on pursuing development of gold and silver projects.

The company has a majority stake in six potential high-grade gold and silver properties in Mexico's southern state of Oaxaca.

The Mexico-focused producer, which began commercial production from its El Aguila project in Oaxaca, Mexico in July 2010, said the dividend is payable on March 23, 2012, to shareholders of record as of March 12, 2012.

The payment represents the twentieth dividend in as many months of commercial production.

The company has now returned over $36 million to its shareholders through dividends since the start of commercial production in 2010.

In late January, the company unveiled preliminary fourth quarter and record full year production numbers, paving the way for a robust outlook in 2012.

The gold company said it produced around 66,125 ounces of precious metal gold equivalent in 2011, in line with its own outlook of between 60,000 to 70,000 ounces for the year.

Of the total 2011 output, 19,900 ounces of gold equivalent was produced in the fourth quarter, Gold Resource Corp said.

The company also said that as part of its normal operating procedure, the Aguila mill was shut down during the last 10 days of 2011 and the first five days of 2012 for routine maintenance, holidays and the installation of an expanded cleaner flotation circuit.

The new circuit is part of the gold producer's ongoing mill optimization, and could provide opportunities for future expansion.

The Aguila mill is now back online and based on the company’s prior and current performance, it has set its 2012 outlook for production in the range of 120,000 to 140,000 ounces gold equivalent.

It is also targeting a cash cost between $50 to $150 per ounce of gold equivalent in 2012.

The Mexico-focused producer, which began commercial production from its El Aguila project in Oaxaca, Mexico in July 2010, said the dividend is payable on February 23, 2012, to shareholders of record as of February 10, 2012.

The payment represents the nineteenth dividend in as many months of commercial production.

The company has now returned over $36 million to its shareholders through dividends since the start of commercial production in 2010.

Last November, Gold Resource Corp posted record third-quarter earnings on the back of soaring commodity prices in the period.

For the quarter that ended September 30, the Denver-based gold producer posted a net profit of $15.2 million, or 27 cents per share, up from a loss of $1.1 million, or a loss of 2 cents per share, a year earlier.

Revenue in the period soared to $37.8 million from $10 million a year earlier.

Gross profit from its El Aguila mine came in at $31.17 million, way up from $7.08 million in the third quarter of 2010.

El Aguila is located 120 kilometres southeast of the state capital city of Oaxaca, Mexico and has yielded several strong metal samples, including 36.0 grams per tonne (g/t) gold, and 3,100 g/t silver.

Last March, the company announced that it had begun the transition from processing lower grade, open pit ore, to processing underground ore from the high grade Arista deposit at El Aguila.

Gold Resource Corp has 100 percent interest in six potential high-grade gold and silver properties in Mexico’s southern state of Oaxaca.

In November, Gold Resource Corp posted record third-quarter earnings on the back of soaring commodity prices in the period.

For the quarter that ended September 30, the Denver-based gold producer posted a net profit of $15.2 million, or 27 cents per share, up from a loss of $1.1 million, or a loss of 2 cents per share, a year earlier.

Revenue in the period soared to $37.8 million from $10 million a year earlier.

Gross profit from its El Aguila mine came in at $31.17 million, way up from $7.08 million in the third quarter of 2010.

El Aguila is located 120 kilometres southeast of the state capital city of Oaxaca, Mexico and has yielded several strong metal samples, including 36.0 grams per tonne (g/t) gold, and 3,100 g/t silver.

In March, the company announced that it had begun the transition from processing lower grade, open pit ore, to processing underground ore from the high grade Arista deposit at El Aguila.

Gold Resource said the monthly dividend is payable on December 23 to shareholders on record as of December 12, and is the eleventh dividend handed-out this year.

The company, which began commercial production in July 2010 from its El Agula mine, is a low-cost gold producer with operations in southern Mexico.

This latest dividend increases the total dividends declared since production to 63 cents per share, with the company returning over $33 million to its shareholders.

Gold Resource has a 100 percent stake in six potential high-grade gold and silver properties in Mexico’s southern state of Oaxaca.

Earlier this month, the company posted record third-quarter earnings on the back of soaring commodity prices in the period. Revenue in the period soared to $37.8 million from $10 million a year earlier. Gross profit from its El Aguila mine came in at $31.17 million, way up from $7.08 million in the third quarter of 2010.

During the third quarter, the company produced a record 25,289 gold equivakent (AUEq) ounces, up 88 percent from the prior quarter, at a cash cost of $154 an ounce. Average realized prices was $1,702 per ounce of gold in the quarter and $38 per ounce of silver.

Last night, the company declared its instituted monthly dividend of $0.05 per common share for September payable on October 24, 2011 to shareholders of record as of October 17, 2011. This is the fifteenth dividend in as many months of commercial production and ninth of 2011.

The plan, to be effective immediately, is an attempt to improve the company's share price, which it claims is undervalued. Shares of Gold Resource hiked 7.04% as of 1:58 pm EDT to $20.07 on the Amex Exchange.

Gold Resource said it can repurchase the shares in open market transactions at prevailing market prices. The amount of repurchase and timing of the buy back is to be determined by management based on its evaluation of market conditions, among other factors, it added.

The company also said the program has no pre-established closing date, and may be suspended or discontinued at any time.

"Management believes that at current price levels the company's stock is undervalued and represents an attractive investment opportunity . . . in addition to an opportunity to further reduce its already tight capital structure," said president Jason Reid.

"With only fifty-three million shares outstanding as a producer, in an industry where most producers have hundreds of millions of shares outstanding, this share buyback may further leverage our ability to distribute out meaningful monthly future dividends."

Since declaring commercial production in July 2010 at its El Aguila project in Mexico, Gold Resource has returned over $25 million to shareholders via monthly dividends.

Production at its El Aguila project has produced more precious metal in the first two months of the third quarter than the total prior quarter, the company said. Ore grades, mill throughput, and recoveries have improved mineral production.

The El Aguila property is located approximately 120 kilometres southeast of the capital city of Oaxaca, Mexico, and has yielded several strong metal samples, including 36.0 grams per tonne (g/t) gold, and 3,100 g/t silver.

The project entered commercial production at the start of July in 2010, and has been responsible for the company's steady pay out of $24.6 million to shareholders to date, through monthly dividends.

"Our team is doing an excellent job and we are very proud of their continued mill optimizations, mine development and overall accomplishments," said president Jason Reid.

"Presuming mill optimization and throughput levels continue during September, we could potentially see substantial production growth in the third quarter.

"As we have stated before, our production growth is primarily a function of mine development, increasing the number of working stoped and the buildup of underground ore stockpiles."

Indeed, the company's growth has been well-noted. In July, Gold Resource announced it had reported record profits of $2.0 million, despite flooding at its underground La Arista deposit on account of a freak storm in April.

It generated $11.3 million in revenues from sales of metals concentrate during the quarter, and made a gross profit of $8.8 million directly from El Aguila. The project produced 7,479 ounces of gold equivalent at a cash cost of just $87 per ounce in the three month period.

Standardized drilling is currently being carried out at the La Arista vein system, as is exploration for the development of the high grade deposit.

Gold Resource, whose stock on the AMEX closed on Friday at $22.00 per share, said it has yet to determine the completion date for a mineral resource estimate at La Arista, but is targeting release of the report by year-end.

Harry Norman: Hello, this is Harry Norman for Proactive Investors and welcome to another Proactive audio interview.

Today is the 12th of August, 2011, and I’m talking with Bill Reid, President, CEO and Director of Gold Resource Corporation, listed on the NYSE AMEX exchange, metals and mining sector.  Stock ticker GORO.  Share price $26.22 million.  Market Cap $1,389.61 million.  Gold Resource Corporation shares are also listed on the Frankfurt exchange.  Web address goldresourcecorp.com.

Bill, thank you very much for joining us for this interview.

Bill Reid: Thank you, Harry.  It’s my pleasure.

Harry Norman: Please would you give investors a brief introduction to Gold Resource Corporation and what makes the company stand out from the crowd.

Bill Reid: Yes, I’d love to.  We went public in September of 2006.  We have a great property in the southern state of Oaxaca, Mexico, and we decided in April 2007 to go forward with the mine.  So we built a mine, a mill, all the infrastructure and, I’m proud to say, three years and three months later—which is kind of fast in the mining business—we declared commercial production July 1st of 2010.  What’s exciting is that we have a high-grade deposit, which we’ll go over in a moment, and things are going really well.

Harry Norman: Please would you talk us through the salient points of Gold Resource Corporations’ second quarter earnings, which were released earlier this week?

Bill Reid: Yes, we were very pleased with results, but I must mention that on April 20th we had a freak storm that flooded the lower levels of our underground mine, so we had to repair and clean all that up.  So April and May were sub-par months, even though people kept everything operating—except for the mine, we had stockpiles.  But even with the difficulties, the second quarter we set record revenue at $20 million, we had record net income of $4.9—before the extraordinary item which was the flood—we paid record dividends of $6.4 million.  So what we’re really excited about is we paid for absolutely all of our activities, including the dividend, and we put an additional $4 million in our bank account.

Harry Norman: What can you tell us about the La Arista Underground Deposit’s current life-of-mine and grade, Bill?

Bill Reid: The recent deposit is our main deposit.  We’ve drilled it out to a certain extent—it’s still open in all directions but with depth and along strike.  We have announced that we have eight years, it’s 3 million tons of mineralised material that grades about 6.5 grams gold, 506 grams silver, copper’s 0.6%, lead’s 2.2%, and zinc is 6.5%.  

So I really like these polymetallic deposits because the base metals—which in this case they could be a mine unto themselves—actually pay for the operating costs, so it lowers our cost.

Harry Norman: What are your current cash costs per ounce at La Arista, and where do you see these cash costs going, Bill?

Bill Reid: We’re targeting for 2011, 60,000 to 70,000 ounces of gold equivalent—that’s converting the silver into gold, so we can talk about gold equivalent.  And we’ve set as our target $100 cash costs to produce those ounces. Now for the first six months of this year we stand at $126 in costs per ounce, so we’re pretty close.  

The grades are actually running only about half of what I just mentioned a moment ago, because we’re in the very top of the deposit and we’re more or less just starting to ramp up.  So we’re very pleased with the way it’s going at this point in time.  

Now what we’re looking at longer term is that by 2013 we are targeting 200,000 ounces gold equivalent at $0 cost, and of course the $0 cost comes about because our lead, zinc and copper pays for all the operating costs.  So we like to make our story very simple—200,000 ounces gold equivalent at $0 cost.

Harry Norman: What can you tell us about Gold Resource Corporation’s exploration and development targets and priorities?

Bill Reid: We have a fantastic property position in this state of Oaxaca.  We have, on a very important, what I call structural trend, we have over 48 kilometres.  At one end, the east end, is La Arista deposit, and that’s, of course, where most of our drilling is taking place right now.  

We’re continuing to expand and infill drilling at the Arista deposit and also if the mining department  needs a few holes, to see what’s out ahead.  We’ll put those in for them.  We have about three or four drill rigs operating at the La Arista deposit.  

Now at the very other end of our property position we have the El Rey mine, which we drilled a couple of years ago, and we discovered a high-grade vein system that’s about 1 to 2 metres wide.  It only has gold—doesn’t have base metals—but it’s running about 1 ounce gold per ton.  So we’re actually putting in a hoist and refurbishing a small shaft that was there so we can get underground, do some test mining on these veins, and get a bulk sample.  So we’re very excited with El Rey.  I hope to, maybe, be producing 100 or 200 tons a day from the El Rey by the end of the year.  

We also have other properties in between and we’re exploring those, such as Alta Gracia has a drill rig and we’re moving forward.  So we have a large position, an exciting position, and it will provide, we believe, a pipeline of projects to feed this mill over many years.

Harry Norman: You have strong views on dividend distributions to shareholders.  Please would you talk us through your corporate philosophy in regard to dividends, Bill?

Bill Reid: Yes, I can say that this company is being run for the shareholders.  And the reason I can say that is you don’t have the typical caretaker management here, you have the owner management.  Management are some of the largest individual shareholders of this company.  So an important philosophy of ours, right from the beginning, was to distribute as much cash back to the owners as quickly as possible.  And we’ve done that.  

I told you we declared commercial production July 1st, 2010.  We declared our first dividend July 31st, that was 3 cents, and we have been paying 3 cents a month until April of this year when we raised that to 4 cents a month. So we’ve returned, to the shareholders, over $22 million, if you include July at this point.  This is in line with our idea and our philosophy that one-third of the margin, or cash, that we generate from the project, one-third should go to pay taxes—because we’re profitable—one-third to build the company and one-third back to the owners of the company.  

We are profitable but we don’t have to pay any taxes right now because of the tax law’s carry-forwards, so through the second quarter we have generated new cash of $36 million and we have distributed $18 million back to the shareholders.  So we’ve lived up to what we said we would do and we were [?? 0:06:47] the company and 50% to the shareholders.  And, of course, at some point we’ll be paying taxes here, so then it will be one third.

Harry Norman: So, with the recent dividend distribution of $6.4 million, leaving you with $42 million in the bank, what is Gold Resource Corporation’s financial situation going forward, Bill?

Bill Reid: We’re very pleased, like I said, in the second quarter, even though under difficult circumstances, the operation paid for everything that we did, including the dividend.  And we put $4 million in the bank.  Our production will be better in the third quarter than it was in the second, and we’re looking at, basically, being fully funded.  In other words we don’t see, for the foreseeable future, the need to issue any more shares—we’ve been very tight with out capital structure, we only have 53 million shares outstanding as a producer, and that’s somewhat rare—so we’re very pleased with where we are and, financially, things are going really well.

Harry Norman: What can the investment community expect from Gold Resource Corporation over the next 12 to 18 months?

Bill Reid: As I said we have a very exciting growth profile, we’re targeting 60,000 to 70,000 ounces this year, maybe 140,000 to 150,000 next year, and then, by 2013, 200,000 ounces at our $0 cost.  So we have one of the better growth profiles out there, we also are one of the lowest-cost gold producers—I think the average cost to produce an ounce of gold now is almost $600—so we have that going forwards.

We also have the ability to explore one of the more exciting exploration projects out there, today, what we have in Oaxaca.  And we’ve stated that we would like to get in the position, which we think we will before too long, to be able to pay the dividends back to the shareholders in kind—in either gold or silver—if they so elect.  

So there’s a lot of exciting things coming down the road with Gold Resource Corporation and we hope everybody will take a hard look at us.

Harry Norman: Remember Proactive Investors is not an investment advice service.  Make sure you register at proactiveinvestors.com, or proactiveinvestors.de for our weekly newsletter, which will keep you informed about our articles, interviews and events.

Thank you for listening.

END AUDIO

The gold miner increased its August dividend by one cent to $0.05 per share. The dividend is payable on September 23, to shareholders on record as of September 12.

The company also announced it has instituted a regular monthly dividend policy to replace its special dividend policy.

This August payment represents the fourteenth dividend since the company entered commercial production at its El Aguila project in Mexico in July 2010. Since then, Gold Resource has returned approximately $0.48 per share, or $24.6 million in total, to shareholders in the form of special dividends.

"With record production, record revenue and record dividends paid in the second quarter, the increased August dividend to five cents per share per month, coupled with the fact that it has now been instituted, speaks to the positive outlook we have for the continued success and current production trajectory of the Aguila project," said president Jason Reid.

"Monthly production is increasing, ore grades and increasing and we continue making good strikes on the underground mine development.

"Our dividends reward the owners of the company, its long term shareholders."

Despite some challenges at its El Aguila project due to a freak storm in April, the company reported record second quarter results, beating its first ever profit recorded in the first quarter.

Gold Resource also managed to generate record revenue in the latest quarter of $20.7 million, versus $11.3 million in the previous three month period - an increase of 83%.

The company produced 13,457 ounces of gold equivalent at a cash cost of $156 per ounce, generating a $17.2 million gross profit from the El Aguila mine.

Production is set to only increase, as the company has now begun processing ore from its high grade La Arista deposit, with lower cash costs and greater output levels expected in the future.

The cash dividend, which has been increased to $0.04 per share, will be paid to shareholders of record as of Aug 11, payable on Aug. 23, 2011. The dividend, the thirteenth in as many months since commercial production, is a direct result of cash flow generated from the company’s El Aguila operations, located in the southern state of Oaxaca, Mexico.

The total dividends declared since production now stands at 43 cents per share.

Gold Resource Corp (AMEX:GORO) said Monday that it was added to the Russell 3000 and Russell Global indexes at the end of June. 

Russell Investments' indexes are used by investment managers and institutional investors for investment strategies. Russell reconstituted its set of US and global equity indexes on June 24, adding Gold Resource Corp, a low-cost gold producer with operations in southern Mexico. 

The relatively new gold producer has returned more than $20 million to shareholders in special dividends, since declaring commercial production at its El Aguila project in July of 2010. 

The company will hold its membership in the Russell indexes until the firm announces a new set in June of next year. 

"Gold Resource Corporation’s inclusion on the Russell 3000 and Global indexes this year marks another milestone in the Company’s evolution," said president Jason Reid. 

"Having successfully positioned the company among the elite class of low cost gold producers with an aggressive growth curve and a history of 12 consecutive monthly dividends, we are proud to be included in such a well-known and recognized index. 

"We believe this inclusion may increase Gold Resource Corporation’s visibility and recognition with the institutional investment community."

Indeed, in early May, the company posted its first ever profit and record revenue, as it continues to ramp up operations at its El Aguila project in Oaxaca, Mexico.

During the first three months of the year, the property produced 7,479 ounces of gold equivalent at a cash cost of just $87 per ounce. This marked a significant improvement from the first six months of production, when the company generated 10,493 ounces of gold at a cash cost of $217 per ounce.

In March, Gold Resource Corp also announced that it had begun the transition from processing lower grade, open pit ore, to processing underground ore from the high grade Arista deposit at El Aguila - well ahead of the original mid-year target.

"I am pleased and proud to report that the company’s second quarter will reflect record mineral production, revenue and earnings after achieving its first profitable quarter as a mining company during the first quarter of 2011," said president Jason Reid.

Indeed, in early May, the relatively new gold producer posted its first ever profit and record revenue, as it continues to ramp up operations at its El Aguila project in Oaxaca, Mexico, which began commercial production in July last year.

For the first three months of 2011, the Denver-based company recorded net income of $2 millon, or 4 cents per share. This compares to a net loss of $7.3 million, or 15 cents per share, in the year-ago period.

The company said the increase in earnings was a direct result of generating $11.3 million in record revenues from sales of metals concentrate. It also made a gross profit of $8.8 million directly from the mine.

During the quarter, the El Aguila project produced 7,479 ounces of gold equivalent at a cash cost of just $87 per ounce. This marks a significant improvement from the first six months of production, when the company generated 10,493 ounces of gold at a cash cost of $217 per ounce.

In March, the company announced that it had begun the transition from processing lower grade, open pit ore, to processing underground ore from the high grade Arista deposit at El Aguila - well ahead of the original mid-year target.

La Arista is the company's largest deposit discovered to date at the project, and as Gold Resource continues to ramp up and improve operations, the deposit is expected to result in higher average grade ore, lower cash costs and greater output levels.

The company expects to achieve this through by-product credits in addition to gold and silver; flotation optimization is underway to produce three separate concentrates: gold-copper, a lead-silver, and a zinc concentrate.

Impacts from a severe storm back in April, which affected the underground La Arista mine, have now been mitigated and cleaned up, the company said late last month.

Since beginning production at El Aguila in July last year, Gold Resource Corp has paid its shareholders a $0.03 per share dividend each month using cash generated from the mine, and recently increased the dividend in April to $0.04 per share. The total dividends declared since production now stands at $0.39 per share.

Last month, the gold producer added a sixth property of over 100 square miles to its Oaxaca mining unit, which includes El Aguila, as well as other exploration assets.