Gold Road Resources Limited (ASX: GOR) has released a preliminary production and financial update for the June 2022 quarter. The Gruyere JV is a 50:50 joint venture with Gruyere Mining Company Pty Ltd, a member of the Gold Fields Ltd group, which manages and operates the Gruyere gold mine.
June Quarter Production
- Gruyere produced a record 85,676 ounces of gold (100% basis) during the quarter (March quarter: 71,135 ounces), in line with expectations.
- Gruyere ore tonnes processed totalled 2.4Mt at a head grade of 1.22 g/t and a gold recovery of 91.3%. It was the highest quarterly throughput and highest average head grade achieved at Gruyere to date.
- Production rates remain in line with annual guidance of 300,000 – 340,000 ounces (150,000 – 170,000 ounces attributable).
- Gold Road and Gruyere have to date had no material impact on gold production from COVID-19.
Financial and Corporate
- Gold Road’s gold sales totalled a record 44,526 ounces at an average price of A$2,496 per ounce and included delivery of 8,700 ounces at an average price of A$1,977 per ounce into forward sales contracts.
- The company ended the quarter in a strong position with cash and equivalents of $161.3 million (March quarter: $138.0 million) and no debt drawn. This cash and equivalents position is after over $11 million of one-off cash payments during the quarter to fund the settlement of a DGO finance facility and DGO transaction costs following the change of control of DGO Gold Ltd.
- Successful outcome of recommended takeover of DGO Gold Ltd. Gold Road holds a relevant interest of 97.9% and the offer has moved to compulsory acquisition of the remaining shares in DGO Gold Ltd.
- Gold Road (via the acquisition of DGO Gold Ltd) now holds a 14.4% shareholding in De Grey Mining Ltd, a 6.8% shareholding in Dacian Gold Ltd, a 20.1% shareholding in Yandal Resources Ltd and a diverse portfolio of exploration tenements.
- Gold Road currently has four drill rigs operating at Yamarna (100%) and the Golden Highway (Gold Road 50%) as the company continues to actively explore for a meaningful discovery.
Further details will be available in the full June 2022 quarterly report, which is scheduled for release later this month.