Mid-tier gold production and exploration company Gold Road Resources (ASX: GOR) has provided its half-year financial results.
HIGHLIGHTS:
First year of production completed
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Gruyere maintained a high level of safety performance and suffered no material impact on operations from COVID-19.
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Gruyere celebrated its first 12 months of gold production on 30 June 2020, having produced 230,590 ounces (100% basis) since first pouring gold on 30 June 2019.
Inaugural six month profit
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Gold produced over the six months to 30 June 2020 was 131,460 ounces (100% basis) at an AISC of A$1,186 per attributable ounce.
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Operating cash flow attributed to Gold Road over the six months to 30 June 2020 was $59.6 million.
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Gold Road sold 60,400 ounces of gold at an average price of A$2,237 per ounce over the six month period.
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Revenue from gold sales for the half year totalled $135.1 million (30 June 2019: Nil).
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EBITDA generated over the six month period totalled $61.0 million (30 June 2019: $23.0 million loss).
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Consolidated Net Profit after Tax for the half year of $23.4 million (30 June 2019: $16.9 million loss).
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Unsold ounces of 5,330 ounces at end of period due to COVID-19 balance sheet precautions2
Strong balance sheet
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Gold Road ended the half year in a strong position with cash of $73 million. Cash and equivalents totalled $109.1 million. Borrowings totalled $25 million resulting in a net cash and equivalents position of $84.1 million.
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Gold Road became debt free3 after repaying $25 million of borrowings on 21 July 2020.
Gold Road Managing Director and CEO Duncan Gibbs commented: “June saw us celebrate our first year of gold production at Gruyere. The journey has been an exciting one and an outstanding performance for an operation in its first year of production. But the journey continues for us as we look to unlock further efficiencies at Gruyere. We are seeing some positive signs in terms of throughput and recoveries, but we are still on the journey of improving plant availability as we continue to transition into fresh rock.
“The strong cash flow performance at Gruyere has enabled us to pay down all our debt within less than 10 months from declaring commercial production and this leaves us in a very strong position. 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. Our exploration push continues in the underexplored Yamarna Greenstone Belt. The half year saw us realign strategy to increase the likelihood of us making meaningful discoveries, as befits a company of our size. The relatively shallow aircore drilling completed so far this year will lead to deeper bedrock drilling of new targets over the coming 6 to 12 months.”
