Mid-tier gold production and exploration company Gold Road Resources (ASX: GOR) has released its June quarter activities report, for the three-month period to 30 June 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 and exploration portfolio.
HIGHLIGHTS
Production and Guidance
- Gruyere produced 62,535 ounces of gold (100% basis) at an AISC of A$2,441 per attributable ounce during the June 2024 quarter (March quarter: 64,323 ounces at an AISC of A$2,194 per attributable ounce).
- Following the regional rain event in the Eastern Goldfields, quarterly production was impacted with Gruyere not operating for the first half of April and a ramp-up to normal production occurring through the remainder of the month. After seven weeks of closures, the Great Central Road re-opened to all traffic on 30 April, with normal supply lines and operations fully reinstated.
- Despite record mining and plant throughput in May, the protracted rain event impacts to mining and gold production and the associated increase in AISC/oz have resulted in 2024 annual guidance for Gruyere being revised to 290,000 – 305,000 ounces (145,000 – 152,500 attributable) at an attributable AISC guidance of between A$2,050 and A$2,200 per ounce.
Financial and Corporate
- Gold Road’s gold sales totalled 31,216 ounces at an average sales price of A$3,532 per ounce. Gold doré and bullion on hand on 30 June 2024 was 1,879 ounces.
- Gold Road’s attributable operating cash flow from Gruyere for the quarter was $74.2 million (March quarter: $57.9 million).
- Free cash outflow was $9.7 million for the quarter (March quarter: $5.5 million inflow).
- Gold Road’s Corporate All-In Cost (CAIC), which includes growth capital, corporate and exploration costs, was A$3,186 per ounce for the June 2024 quarter.
- Cash and equivalents were $86.0 million (March quarter: $146.2 million) with no debt drawn. During the quarter, Gold Road participated in De Grey Mining Ltd’s entitlement issue in May 20245 with an investment of $50.8 million, and a one-off tax payment of $22.6 million was also made.
- At 30 June 2024, Gold Road held listed investments with a market value of approximately $478.4 million.
Discovery
- Drilling continues to test further mining opportunities beneath the Gruyere Ore Reserve. Recent results include 142.73 metres at 1.78 g/t Au from 600.27 metres.
- Yamarna Mine Readiness Project – encouraging results have been returned from drilling at Gilmour with a best result of 2 metres at 43.59 g/t Au from 212 metres and include 7 metres at 6.65 g/t Au from 64 metres from Gilmour North.
- Initial fieldwork has returned exceptional rock chip results of 37 g/t Au at Balter (Western Australia) and 53.7 g/t Au at Galloway (Queensland), validating the potential for the exploration project areas to host high-grade gold mineralisation.
