Mid-tier gold production and exploration company Gold Road Resources (ASX: GOR) has delivered first serious rewards from Gruyere after reporting that the world-class gold mine produced 70,023 ounces in the December quarter. The output was at the top end of the 75,000oz to 100,000oz quarterly guidance provided by Gruyere’s 50-50 owners Gold Road and Gold Fields.
HIGHLIGHTS:
Production and Guidance
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Gruyere produced 70,023 ounces during the quarter and 99,130 ounces for 2019 at the top end of guidance (75,000 to 100,000 ounces – 100% basis)
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Gold Road met cost guidance for the December 2019 quarter with AISC of A$1,102 per attributable ounce
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Gruyere ramp-up continues to progress well, with focus turning to further improving plant availability, maintenance and wear patterns
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2020 Mine Plan and guidance anticipated in the March 2020 quarter
Financial and Corporate
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As at 31 December 2019:
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Gold Road had cash of A$101.3 million
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Gold Road had net cash of A$20.9 million
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In January 2020, the better than expected cash generation from Gruyere enabled Gold Road to make a considerable debt repayment of A$38 million reducing the Company’s overall debt position from A$80.4 million at the end of the December 2019 quarter to A$42.4 million.
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Gold Road sold 37,104 ounces of its share of gold from Gruyere at an average price of A$2,033 per ounce during the quarter
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Final Capital Cost for Gruyere’s construction confirmed at A$610 million (100% basis), below budget of A$621 million
Discovery
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Extensional diamond and RC drilling was completed at Gruyere during the quarter with a Mineral Resource update expected in the March 2020 quarter
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Mineral Resources at Gilmour and Renegade (100% owned) declared totalling 3.5 million tonnes at 2.62 g/t Au for 297,600 ounces
Gruyere is a 50:50 joint venture with Gruyere Mining Company, a member of the Gold Fields Ltd group, who manage the Gruyere gold mine. Gruyere delivered another milestone with its first full quarter of production producing 70,023 ounces of gold (100% basis) and an All-in-Sustaining Cost (AISC) of A$1,102 per ounce attributable to Gold Road, both comfortably in line with guidance.
The excellent safety performance at Gruyere continued with a Total Recordable Injury Frequency Rate (TRIFR) of 3.5 at 31 December 2019. Gold Road’s (100% owned) exploration operations’ rolling 12 month TRIFR was 16.9 for the same period.
