This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Gold Resource's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Any business, particularly an underground mine is a long term endeavor. We have demonstrated our ability to build and to execute. We have aggressively built the La Arista underground mine and have a strong cash flow to show for it. Even with half our targeted mill production this quarter, we achieved a great deal. We were profitable for the second quarter. We produced more gold than Q2 of '12 than we did in Q2 of '11. We paid for significant and increased development underground. We bought 1.3 million with gold and silver bullion to diversify our treasury. We paid the Mexican government, $8 million in estimated taxes. We paid the owners of the company, the shareholders 9.5 million in dividends. We accomplished all this and still added about 775,000 to our bank account this quarter over the cash we had in the bank at the end of last quarter.

Now, if we can do this with a quarter that is less than half our targeted mill production, consider the cash we will accumulate with achievements of our targeted quarter. This speaks to the cash generating power of this deposit and this project and with increasing cash; this management has certainly demonstrated its bias for distributions to the owners. The company has distributed dividends to the owners, the past 25 consecutive months and thus far, this year, had distributed about 33% of our cash flow from mine site operations. The company remains fully committed to dividends.

I had consistently stated on our conference calls and elsewhere that production is and will always be dependent on the development of the mine. An underground mine is by definition a challenge of constant development as you constantly mine. We have carried out these grueling demands since the beginning, they are not new and they will be with us till the end of the mine.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.65 -0.66%
FB $101.93 0.92%
GOOG $681.92 -0.32%
TSLA $150.01 4.40%
YHOO $26.75 -1.30%


Chart of I:DJI
DOW 15,660.18 -254.56 -1.60%
S&P 500 1,829.08 -22.78 -1.23%
NASDAQ 4,266.8370 -16.7550 -0.39%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs