Mid‐tier gold producer and exploration company Gold Road Resources (ASX: GOR) has provided its annual report to shareholders for the period ended 31 December 2020. The company also announced it will pay a fully franked final dividend in respect of the six months to 31 December 2020 of 1.5 cents per share to be paid on 14 April 2021.
FULL YEAR HIGHLIGHTS:
Inaugural Operational Annual Profit
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Revenue from 126,434 ounces of gold sales for the full year totalled $294.7 million (2019: $75.4 million).
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EBITDA for the 12 month period totalled $170.6 million (2019: $9.8 million loss).
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EBITDA Margin increased to 58% (2019: loss).
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Consolidated Net Profit after Tax for the 2020 financial year of $80.8 million (2019: $4.7 million loss).
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Basic earnings per share of 9.2 cents.
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Operating cash flow for the 12 months to 31 December 2020 was $142.7 million (2019: $34.0 million).
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Group free cash flow generated for 2020 was $105.5 million (2019: $20.0 million outflow).
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Free cash flow of $817 per ounce of production for 2020.
Strong Balance Sheet
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Gold Road ended the year in a strong position with cash and short-term deposits of $126.4 million (2019: $101.3 million).
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Gold Road became debt free after fully repaying borrowings on 21 July 2020 (borrowings at 31 December 2019: $78.5 million).
Fully Franked Maiden Dividend Determined for six months to 31 December 2020
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Fully franked dividend of 1.5 cents per share determined for six months to 31 December 2020.
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Aligned to Dividend Policy of 15% to 30% of free cash flow for the six-month period.
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Half year dividend yield of 1.42%.
First Full Year of Production Completed and Strong 3 Year Outlook
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Gruyere celebrated its first full calendar year of gold production, having produced 258,173 ounces (100% basis).
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Attributable annual production delivered at AISC of A$1,273 per ounce and CAIC of A$1,592 per ounce.
Gold Road Managing Director and CEO Duncan Gibbs commented:
“The year 2020 was Gold Road’s first full year as a producer. It was a year where we were able to pay down all our borrowings and generate over $105 million in free cash flow. The year 2020 also saw us declare a first full year net profit after tax of $80.8 million, and the Board determined to pay a maiden dividend for the six-months to 31 December 2020 of 1.5 cents, just 15 months after attaining commercial production at Gruyere.
“Following 18 months of production experience, in February 2021 we announced our 3 Year Outlook at Gruyere that sees the operation lifting from 258,173 ounces in 2020 to a sustainable 350,000 ounces by 2023 (100% basis). Gruyere is a Tier-1 gold mine and we are only beginning to unlock its potential.
“Gruyere and Gold Road have experienced no material production impacts as a result of the COVID-19 crisis. I wish to thank the Gruyere team, our employees, contractors and suppliers for their diligence and excellent performance through this difficult time.”
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