Mid-tier Australian gold producer Gold Road Resources (ASX: GOR) has today announced a net profit of $36.8 million for the year to 31 December 2022 and declared a final, fully franked dividend of 0.5¢ per share, continuing the company’s run of regular cash returns to shareholders.
Gold Road, which owns 50% of the world-class Gruyere gold mine in WA’s north-eastern Goldfields and has an industry leading greenfields exploration program, has also released its 2021 Annual Report and its second annual Sustainability Report, titled Advancing Our Future.
Gruyere celebrated its second full calendar year of gold production, having produced 603,832 ounces since first gold in June 2019 (100% basis) with Gold Road’s attributable production to date achieved at an AISC of A$1,373 per ounce. Gruyere remains on target to grow annual production to a sustainable 350,000 ounces per annum by 2023.
Gold Road’s attributable ore reserves grew to 2.23 million ounces while attributable mineral resources grew to 4.71 million ounces during 2021.
“The year 2021 saw a significant increase in attributable reserves and resources, and positive progress from our exploration efforts at Yamarna,” managing director Duncan Gibbs said.
“Net profit after tax was $36.8 million for 2021.
“The company continued to return income to shareholders in the form of six-monthly dividend payments and the Board has determined to pay a dividend for the six-months to 31 December 2021 of 0.5 cents.”
Revenue from gold sales for the full year totalled $274.8 million at an average realised gold price of $2,210 per ounce. Gold sales were 124,335 ounces, with production at Gruyere impacted by mill performance issues in the June and September quarters. EBITDA for the 12-month period totalled $120.2 million and the EBITDA margin was 44%.
Gold Road’s consolidated net profit after tax was $36.8 million, for basic earnings per share of 4.18¢. Operating cash flow for the 12 months to 31 December 2021 was $89.2 million and group free cash flow generated was $22.1 million.
Gold Road ended the year in a strong position with cash and short-term deposits of $131.5 million and debt free.