Mid-tier gold producer Gold Road Resources (ASX: GOR) has reported a strong profit for the half-year to 30 June 2022, declared a 1¢ a share fully franked interim dividend and reaffirmed its full-year production and cost outlook.
Gold Road owns 50% of the world-class Gruyere gold mine, in Western Australia’s north-eastern Goldfields, and has a portfolio of high-impact exploration projects around Gruyere and strategic investments in several smaller peers including a relevant 19.99% interest in De Grey Mining (ASX: DEG).
Highlights from Gold Road’s half-year report:
- Record revenue from gold sales totalled $196.5 million (June 2021: $129.6 million)
- Record gold sales of 79,606 ounces (June 2021: 60,525 ounces), with production benefiting from record throughput rates and record head grades
- Operating cash flow was $69.5 million (June 2021: $46.3 million)
- Group free cash flow generated of $44.6 million (June 2021: $11.2 million)
- Record EBITDA totalled $100.0 million (June 2021: $59.6 million)
- EBITDA Margin of 51% (June 2021: 46%)
- Consolidated net profit after tax of $39.9 million (June 2021: $19.1 million)
- Record cash and short-term deposits of $160.3 million (31 December 2021: $131.5 million)
- Gold Road remains debt free
- Fully franked dividend of 1¢ per share determined
- Gruyere remains on target to achieve 2022 annual guidance of 300,000 to 340,00oz and to grow annual production to a sustainable 350,000ozpa by 2023
- Gold Road’s annual AISC guidance remains unchanged at A$1,270 to A$1,470 per attributable ounce
- Four drill rigs operating at Yamarna (100%) and the Golden Highway (Gold Road 50%), as well as one operating on regional projects as the company continues to explore for a meaningful discovery.
“The six months to 30 June 2022 have been a successful one for Gold Road, despite the challenging global operating environment,” Gold Road managing director Duncan Gibbs said.
“Gruyere achieved record production for the half year in line with our outlook of growing production through 2022 and 2023. The record gold production resulted in strong free cash flow for Gold Road and a record net cash position.
“The successful completion of the DGO Gold takeover in June now provides Gold Road with an even more exciting platform for growth.
“Gold Road achieved a net profit after tax of $39.9 million for the half year. The Company continued to return income to shareholders in the form of six-monthly dividend payments and the board has determined to pay a dividend for the 6 months to 30 June 2022 of 1¢ a share.”