Mid-tier gold production and exploration company Gold Road Resources Limited (ASX: GOR) has reported its production and exploration results for the three-month period to 30 September 2023.
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.
Highlights:
Production and Guidance
- Gruyere produced a record 88,668 ounces of gold (100% basis) at an AISC of A$1,682 per attributable ounce during the September 2023 quarter (June quarter: 76,053 ounces at an AISC of A$1,620 per attributable ounce).
- 2023 annual production guidance is unchanged at between 320,000 – 350,000 ounces (160,000 – 175,000 ounces attributable) and AISC is anticipated to remain within guidance of between A$1,540 to A$1,660 per attributable ounce
Financial and Corporate
- Gold Road’s gold sales totalled 44,321 ounces at an average sales price of A$2,946 per ounce. Gold doré and bullion on hand on 30 September 2023 was 1,736 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 $93.5 million (June quarter: $68.3 million).
- Record free cash flow of $51.7 million for the quarter (June quarter: $30.4 million).
- Gold Road’s Corporate All-In Cost (CAIC), which includes growth capital, corporate and exploration costs, was A$1,959 per ounce.
- Cash and equivalents increased to $209.3 million (June quarter: $157.2 million) prior to the dividend payment and investments in October, with no debt drawn.
- On 28 September 2023, Gold Road committed to subscribe for 59,675,554 shares in a two-tranche institutional placement by De Grey Mining Ltd (ASX: DEG) at $1.05 per share to increase its strategic shareholding to 19.9%.
- As at 30 September 2023, Gold Road held listed investments with a market value of approximately $345.1 million, which excludes the aforementioned subscription for further shares in De Grey Mining.
- Following a strong half-year result, on 5 October 2023 Gold Road paid a fully franked interim dividend of 1.2 cents per share for the six months to 30 June 2023.
Discovery
- At the Gruyere JV (50% Gold Road), results continue to be received for drilling completed in the previous quarters at the Golden Highway. Significant intersections received included 6m at 4.0 g/t Au from 30m, 5m at 7.0 g/t from 69m and 13m at 2.8 g/t from 22m.
- At Yamarna (Gold Road 100%) three drill rigs are operating at the Jatz, Hopwood and Gallagher prospects.
- At Mallina (Gold Road 100%) RC drilling was completed, intersecting encouraging geology and gold results, with follow-up diamond drilling scheduled for October. Other on-ground activities included soil sampling and mapping.
- At the Greenvale and Galloway projects (Gold Road 100%) in Queensland, on-ground activities including soil sampling, rock chipping, mapping and geophysical surveys are ongoing with drilling scheduled for 2024.
