Mid-tier, dividend-paying gold producer Gold Road Resources Limited (ASX: GOR) has reported a preliminary production and financial update for the September 2022 quarter ahead of the release of the full report later this month.
Gold Road derives its gold production from the Gruyere JV, a 50:50 joint venture with Gold Fields Ltd which manages and operates the Gruyere gold mine. Further details will be available in the full September 2022 quarterly report scheduled for release later this month.
Highlights
- Gruyere had another strong quarter, producing 83,635 ounces of gold (100% basis) during the quarter (June quarter: 85,676 ounces), in line with expectations.
- Gruyere ore tonnes processed totalled 2.2 Mt at a head grade of 1.26 g/t Au and a gold recovery of 92.3% for the quarter. This is the highest average quarterly 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’s gold sales totalled 39,524 ounces at an average price of A$2,380 per ounce and included delivery of 9,500 ounces at an average price of A$1,899 per ounce into forward sales contracts. Gold Road’s remaining hedge contracts total just 6,480 ounces and will cease next month.
- The company ended the quarter with cash and equivalents1 of $91.4 million and no debt drawn. This followed strong cash generation at Gruyere, an increase in unsold bullion and doré, $9 million in dividend payments and the on-market purchase of 78.4 million De Grey Mining shares.
