Mid-tier gold production and exploration company Gold Road Resources Limited (ASX: GOR) has provided a preliminary production and financial update for the December 2023 quarter.
Gold Road’s principal asset is a half-share in the Gruyere gold mine, in Western Australia’s north-eastern Goldfields. The Gruyere JV is a 50:50 joint venture with Gold Fields (JSE: GFI), which manages and operates the Gruyere gold mine.
Key points:
- 2023 annual production delivered to lower end of guidance
- 2023 annual production from Gruyere totalled approximately 321,978 ounces (160,989 ounces attributable) meeting the lower end of annual guidance of 320,000 – 350,000 ounces.
- Annual attributable AISC will be provided with the fully reconciled production numbers in the quarterly report later this month.
- December quarter production impacted by lower mining productivity
- Gruyere produced approximately 74,653 ounces of gold (100% basis) during the December 2023 quarter (September quarter: 88,668 ounces).
- Production was lower quarter-on-quarter due to disappointing mining performance arising mainly from unexpected labour availability issues during December.
- Gruyere ore tonnes processed totalled 2.2Mt at a head grade of 1.1 g/t Au and a gold recovery of 93.1% for the quarter.
- Financial and corporate
- Gold Road’s gold sales totalled 37,037 ounces at an average sales price of A$3,040 per ounce.
- Gold doré and bullion on hand on 31 December 2023 was approximately 1,989 ounces. Gold Road continues to be unhedged and 100% exposed to the spot gold price.
- Cash and equivalents decreased to approximately $149.8 million (September quarter: $209.3 million) with no debt drawn, following investments and a dividend payment totalling $74.2 million during the quarter.
- At 31 December 2023, Gold Road held listed investments with a market value of approximately $465 million.
