notre dame polo shirt Gold Resource Corp reports sixth year of profitability
Gold Resource Corporation (NYSEMKT:GORO) announced a sixth consecutive year of profitability on Wednesday, reporting $4.4mln in net income or $0.08 per share and said it was targeting 2017 annual production of 27,500 ounces gold and 1,850,000 ounces silver.
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 has returned $109mln 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 Proven Probable gold and silver Reserves increased by 31% and 17% respectively
“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 Company is targeting 2017 annual production (with ranges based on plus or minus 5%) of 27,500 ounces gold and 1,850,000 ounces silver. The target range was estimated based on the Company’s 2017 mine plan, the area of the deposit scheduled to be mined during the upcoming year, planned development during 2017 of the Switchback vein system and estimated grade fluctuations.
In 2017, the Company remains focused on mining tonnes based on net smelter return (“NSR”) values per tonne of all metals to maximize cash flow. The Company will continue to focus on its overall margin from both precious and base metal production. Base metal production results in lower production costs per tonne and per ounce when used as a credit against production costs. The Company targets sufficient precious and base metal production in 2017 to support its plans for capital expenditures, exploration, dividends, taxes and future growth.
Year End 2016 Oaxaca Mining Unit Proven Probable Reserve Update
The Company recently updated its 2016 Oaxaca Mining Unit Proven and Probable (“P Reserve Report as of December 31, 2016 in which it not only replaced the tonnes mined during 2016, but increased reserve tonnage by 15% to 1,891,500 tonnes grading 2.75 grams per tonne (“g/t”) gold and 165 g/t silver.
The updated report shows gold grades increased by 14%, gold ounces increased by 31%,
silver grades increased by 2% and silver ounces increased by 17%.