COLORADO SPRINGS, CO--(Marketwired - Apr 29, 2013) - Gold Resource Corporation (NYSE MKT: GORO) (the "Company") declares its monthly dividend for April 2013 payable on May 23, 2013 to shareholders of record as of May 13, 2013. The Company is modifying its monthly instituted dividend from $0.06 per share per month to $0.03 per share per month starting with the April dividend due to precious metal price market volatility and capital needed for current expansion activities. Gold Resource Corporation is a low-cost gold producer with operations in the southern state of Oaxaca, Mexico. The Company has returned over $81 million to shareholders in monthly dividends since declaring commercial production July 1, 2010, and offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery.
The Board of Directors approved a modification of the Company's instituted monthly dividend from $0.06 per share per month to $0.03 per share per month for now. Considerations for the decrease in the instituted dividend included the recent and dramatic market pullback in the spot price of physical gold and silver, which may reduce the Company's future net revenues. The Company is also currently in a construction phase to expand its El Aguila Mill, which targets a throughput increase to a nominal 1,500 tonnes per day capacity. Construction includes the installation of a second ball mill, new thickener surge tanks, and additional flotation cells to the El Aguila Mill's flotation circuit. Construction is targeted to be complete by the end of 2013. The dividend reduction also brings the payout ratio more in line with the Company's long-term target of one-third annual dividend distribution from Cash Flow from Mine Site Operations ("CFMSO").
"Multiple factors contributed to the decision to decrease monthly dividend distributions," Gold Resource Corporation's President, Mr. Jason Reid, stated. "Our long-term Company objective remains intact to distrib
I had GORO on my watch list to buy when gold reaches a sustained (long term) bottom. Now, that they cut dividend in 1/2, I will have to reconsider.
In my opinion, we are in a "suckers rally" for gold and mining shares. All going much lower.
"Multiple factors contributed to the decision to decrease monthly dividend distributions," Gold Resource Corporation's President, Mr. Jason Reid, stated.
Primarily the fact that the company lied about the sustainability of the dividend and so on and so forth.
The funniest part of the dividend cut is how the perpetual longs like Jim and Nanette Reeves and BarStupid, who have devoted hundreds of hours analalyzing SORO, refused to even consider that the upstanding Reids might pull the chair out from under them. The Reids even signaled this cut was coming, but they refused to process the warning. Clueless bagholders.
Then there is Always Wrongadeus worshipping the magical powers of the treasury depleting dividend. Ignoring the treasury depletion.......good strategy Wrongy. SORO has been a disaster in the making for two years now...maybe the cultists will finally open their eyes. At least David Reid bailed at the right time.