GOLD RESOURCE CORPORATION REPORTS FOURTH QUARTER AND YEAR END 2010 RESULTS
DENVER � Tuesday March 15, 2011 � Gold Resource Corporation (GORO) (NYSE Amex:
GORO) today announced financial results for the fourth quarter and year ended
December 31, 2010. CEO conference call scheduled March 16, 2011.
Gold Resource Corporation is a low-cost gold producer with operations in the
southern state of Oaxaca, Mexico.
Overview of Full Year 2010 Results from El Aguila
Project
Gold Resource Corporation declared commercial production July 1, 2010. In
the first six months of commercial production, Q3 and Q4 of 2010, the El Aguila Project produced 10,493 ounces of gold at a cash
cost of $217 per ounce, net of by-product credits, and sold its gold at an
average price of $1,201/ounce. The mine generated a gross profit of $9.8
million.
For the year 2010 the Company had a net comprehensive loss of $23 million or
($0.46/share) due primarily to expensing continued Project construction and
development costs and to non-cash items.
The Company�s 2010 mill production throughput rate averaged 755 tonnes/day and mill head grade averaged 3.7 grams per tonne gold. Extensive and unusually heavy rains
during the third quarter and first half of the fourth quarter of 2010
complicated production as lower grade stockpiles with less clay materials were
better suited to run during that time. Mill recoveries were 81% in the
third quarter and 74% in the fourth quarter, primarily because of the lower
head grade run during the fourth quarter. Mill recoveries averaged 77%
for the year ended December 31, 2010.
In November, 2010 the Company commenced underground mining and stockpiling of
the La Arista high-grade, polymetallic
mineralization at the El Aguila Project. The
Company announced March 14, 2011 making the transition from processing open pit
ore to processing Arista underground ore, in the
mill�s flotation circuit, ahead of the Company�s mid-2011 target. Ore
stockpiles remaining from the open pit mine will eventually be processed in the
mill�s agitated leach circuit. Mill optimization and ramp-up of the Arista polymetallic ore
continues.
Gold Resource Corporation�s President, Mr. Jason Reid, stated, �2010 was an
important year for Gold Resource Corporation as we emerged as a low cost gold
producer, an accomplishment achieved by few. We commenced commercial
production from our open pit in Q3, continued to optimize operations in Q4 and
are developing the Arista underground mine.
Even with the challenges of early production and inclement weather we are
pleased as the Project continued to demonstrate its low production costs of
less than $800,000 per month for the six months of commercial production and
produced a mine gross profit of $9.8 million dollars.�
�We expect continued reduction of unit cash cost per ounce of gold by using
industry standard base metal by-product credits from the Arista
deposit which, in addition to gold and silver mineralization, also contains
base metal mineralization of copper, lead and zinc. As we continue mill
optimization, ramp up and production from the Company�s largest deposit
discovered to date, La Arista, we look forward to
2011 as a transformational year for Gold Resource Corporation as we target
processing higher average grade ore, lower cash costs and greater production
levels in 2011.� stated Mr. Jason Reid.
Mr. Jason Reid continued, �We remain consistent in our long term objective to
return money back to the owners of the Company, its shareholders. Using
cash flow generated from mine operations, the Company declared and paid its
shareholders a $0.03 per share dividend each month since commencing commercial
production July 1, 2010.�
2010 Q3 & Q4 HIGHLIGHTS
� Achieved commercial production July 1, 2010
� Produced 10,493 ounces of gold at a cash cost of $217 per ounce
� Generated $9.8 million mine gross profit
� Dividend distributions of $0.18 per share for the six months of commercial
production
� Cash and cash equivalents of $47.5 million on hand at December 31, 2010
� Mining, stockpiling ore and continued Arista
underground mine development
Conference Call
Gold Resource Corporation�s CEO, Mr. William W. Reid, will host a 45 minute
conference call Wednesday, March 16, 2011 at 11:00 a.m. EST. Mr. William
Reid will update shareholders on year end results followed by a Question &
Answer period. The conference call will be recorded and posted to the
Company�s website in 3 to 5 business days from recording.
Date: Wednesday, March 16, 2011
Time: 11:00AM EST (9:00 AM Mountain)
Attendee Access Information:
Title: Gold Resource Corporation 2010 Year End Conference Call
Host Name: William W. Reid
Company Name: Gold Resource Corporation
US/CAN Toll free: 1-877-681-3373
Int�l Toll: 1-719-325-4811
Passcode: 1720397
Please dial-in to the meeting at least 5 minutes prior to the start time using
the attendee phone number and passcode.
To read entire press release including financials click or paste the following
link to your web browser:
http://www.goldresourcecorp.com/releases/GRC-2011-03-15-1.pdf
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