Colorado Springs, July 01, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Gold Resource Corporation (NYSE American: GORO) (the “Company”) today announced the milestones of a decade of production, generating over $1 billion in revenue and distributing over $114 million in shareholder dividends from its Oaxaca Mining Unit in Mexico. Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. The Company has returned consecutive monthly dividends since July 2010 and offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery.
The Company announced commercial production from its Oaxaca Mining Unit (OMU) on July 1, 2010 estimating the Arista Mine’s life of mine at a minimum of nine years while only having three to four years of internally delineated resource at that time. Today, July 1, 2020, marks the milestone of one full decade of production from the OMU exceeding the Company’s then nine-year 2010 mine life estimate. With approximately four years of current proven and probable reserves, there is a strong possibility of a second decade of production ahead for the OMU. The Arista mine has grown extensively over the past decade with the discovery of numerous vein systems and a geologic structural setting conducive for possible new vein system discoveries. Discoveries to date represent approximately only 2% of the Company’s 560 square kilometer land package along a 55-kilometer mineralized trend with potential to not only expand existing deposits but discover new ones as well.
The Company’s philosophy of dividend distributions has remained intact over the last decade with 120 consecutive monthly dividend distributions since July 1, 2010. Shareholders have received over $114 million in dividends since July of 2010, which represents approximately 10% of revenues generated.
“A decade of production success marks a milestone from our Oaxaca Mining Unit and is the ultimate triumph over the numerous mining industry challenges and metal market volatility over that time frame,” stated Gold Resource Corporation’s CEO and President, Mr. Jason Reid. “To return ten percent of total gross revenues back to shareholders in dividends is a second milestone few other mining companies will ever pursue or achieve. In addition, our Oaxaca Mining Unit’s success lead to the formation and building of our Nevada Mining Unit. We are proud to say 2019 marked our ninth consecutive full year of profitability since announcing commercial production, and as we look to the future, we optimistically see another decade of production ahead in Oaxaca. The Oaxaca Mining Unit has grown into the keystone asset of the Company and shareholders are very fortunate this large and powerful high-grade epithermal system has delivered its first billion dollars of production and may ultimately deliver several more.”
Mr. Reid continued, “I would like to thank the dedicated and hardworking team of professionals at Gold Resource Corporation who have delivered these ten years of successful production. In addition, I would also like to thank the Company’s Board of Directors who not only believed in the project, but also supported and shaped our unique approach to the business of mining. Finally, I would like to thank our shareholders who have supported us over the last decade. The Company eyes a similar milestone announcement in July of 2030.”
Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. The Company targets low capital expenditure projects with potential for generating high returns on capital. The Company has returned $114 million back to its shareholders in consecutive monthly dividends since July 2010 and offers its 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 at www.goldresourcecorp.com and read the Company’s 10-K for an understanding of the risk factors involved.
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, the scope, duration, and impact of the COVID-19 pandemic on mining operations, Company employees, and supply chains as well as the scope, duration and impact of government action aimed at mitigating the pandemic may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Also, 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.