Gold Resource Corporation is a mining company focused on production and pursuing development of select, high-grade gold and silver projects that feature low operation costs and produce high returns on capital. The Company has 100% interest in four high-grade gold and silver properties in Mexico's southern state of Oaxaca.
Gold Resource Corp unveils Q4, full year preliminary production, sets 2012 outlook
Gold Resource Corp (AMEX:GORO) unveiled Monday preliminary fourth quarter and record full year production numbers, paving the way for a robust outlook in 2012.
The gold company, which began commercial production from its El Aguila project in Oaxaca, Mexico in July 2010, 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.
“We are pleased to have produced over 66,000 gold equivalent ounces in 2011, which is a credit to our team in Oaxaca, Mexico,” said president Jason Reid.
The company also said Monday 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 company added.
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.
“We look forward to achieving our 2012 targets as we continue on our trajectory for aggressive production growth,” continued Reid.
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.
The company has now returned over $36 million to its shareholders through dividends since the start of commercial production in 2010.
Full financial results for the fourth quarter and the 2011 fiscal year will be available by February 29, the company said.
Gold Resource Corp has a 100 percent interest in six potential high-grade gold and silver properties in Mexico’s southern state of Oaxaca.