Mid-tier gold production and exploration company Gold Road Resources Limited (ASX: GOR) has released its activity report for the quarter ending 30 September 2022.
Gold Road’s production comes from its half-share of the Gruyere gold mine, in Western Australia’s north-eastern Goldfields.
September quarter highlights:
- Production and Guidance
- Gruyere produced 83,635 ounces of gold (100% basis) at an AISC of A$1,426 per attributable ounce during the September 2022 quarter (June quarter: 85,676 ounces at an AISC of A$1,250 per attributable ounce).
- The strong production quarter was aided by record high head grades and higher metallurgical recovery.
- Gruyere remains on target for 2022 annual production guidance of 300,000 – 340,000 ounces (150,000 – 170,000 ounces attributable) at an attributable AISC of between A$1,270 – A$1,470 per ounce.
- Financial and Corporate
- Gold Road’s gold sales totalled 39,525 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 in November 2022. Gold doré and bullion on hand on 30 September 2022 increased to 2,675 ounces.
- Gold Road’s attributable operating cash flow from Gruyere for the quarter was $51.4 million.
- Free cash flow of $15.7 million for the quarter (June quarter: $43.6 million) before the payment of dividends of $9.0 million, a $79.4 million investment in De Grey Mining Ltd shares acquired on-market, and DGO Gold Ltd transaction costs of $3.1 million.
- Cash and equivalents decreased to $91.4 million (June quarter: $161.3 million) following the dividend payment, transaction costs and on-market share purchases, with no debt drawn.
- Gold Road completed the recommended takeover of DGO Gold Ltd in August 2022.
- On 5 October 2022, Gold Road was allocated 25,987,000 De Grey Mining Ltd shares at a price of $1 per each as part of an institutional placement of 130,000,000 shares. This allocation maintains Gold Road’s 19.99% relevant interest in De Grey.
- Discovery
- Gold Road currently has three drill rigs operating at Yamarna (100%) and the Gruyere JV Golden Highway (Gold Road 50%) as the company continues to actively explore for a meaningful discovery.
A program of RC and diamond drilling was completed at the Golden Highway, designed to expand and better define known mineralisation. Results received to date are encouraging and include 10m at 8.61 g/t from 14m and 5m at 16.76 g/t from 43m.