Mid-tier gold production and exploration company Gold Road Resources Limited (ASX: GOR) has released its December Quarter activities report and provided production guidance for calendar 2024.
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. In addition, Gold Road also has a significant investment portfolio.
Key points:
Production and Guidance
- Gruyere produced 74,659 ounces of gold (100% basis) at an AISC of A$1,973 per attributable ounce during the December 2023 quarter (September quarter: 88,668 ounces at an AISC of A$1,682 per attributable ounce).
- Quarterly production was lower quarter on quarter due to delays accessing higher-grade ore from the open pit. Labour availability impacted the ore mining rate.
- 2023 annual production from Gruyere was 321,984 ounces, delivering at the lower end of annual guidance of between 320,000 – 350,000 ounces. Gold Road’s attributable 160,992 ounces of production was delivered at an attributable AISC of A$1,662 per ounce falling just outside of guidance of between A$1,540 to A$1,660 per attributable ounce.
- 2024 annual production is guided at between 300,000 and 335,000 ounces (150,000 to 167,500 ounces attributable) at an attributable AISC of between A$1,900 and A$2,050 per ounce.
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 1,989 ounces. Gold Road continues to be unhedged and 100% exposed to the spot gold price.
- Gold Road’s attributable operating cash flow from Gruyere for the quarter was $69.6 million (September quarter: $93.5 million).
- Free cash flow was $13.8 million for the quarter (September quarter: $51.7 million).
- Gold Road’s Corporate All-In Cost (CAIC), which includes growth capital, corporate and exploration costs, was A$2,390 per ounce for the December 2023 quarter.
- Cash and equivalents decreased to approximately $149.9 million (September quarter: $209.3 million) with no debt drawn following investments and a dividend payment totalling $74.3 million during the quarter.
- As at 31 December 2023, Gold Road held listed investments with a market value of approximately $465 million.
- During 2023, Gold Road’s attributable Mineral Resources of 4.50 million ounces and attributable Ore Reserves of 1.83 million ounces decreased by 0.29 million ounces and 0.19 million ounces respectively, largely as a result of mining depletion.
Discovery
- At Mallina (Gold Road 100%) in the Pilbara, a diamond drilling program was completed, intersecting encouraging geology and associated gold results. An airborne magnetic survey and a geological mapping campaign were also completed.
