Mid-tier gold production and exploration company Gold Road Resources Limited (ASX: GOR) has reported its financial results for the year to 31 December 2022, headlined by record gold sales, a profit of $63.7 million and a final fully franked dividend of 0.5c per share.
Gold Road’s core asset is a 50% interest in the Gruyere gold mine, in WA’s north-eastern Goldfields. In addition, Gold Road has built an extensive exploration and investment portfolio.
“The year 2022 saw record gold production from Gruyere. As a result, net profit after tax increased to $63.7 million for 2022,” managing director Duncan Gibbs said.
“We also successfully completed the DGO Gold takeover and have an exciting and strategic portfolio of investments and exploration assets.”
Operational Annual Profit
- Revenue from gold sales for the full year totalled $382.9 million (2021: $274.8 million) at an average realised gold price of $2,448 per ounce (2021: $2,210 per ounce)
- Record gold sales of 156,426 ounces (2021: 124,335 ounces)
- EBITDA for the 12-month period totalled $180.8 million (2021: $120.2 million)
- EBITDA Margin of 47% (2021: 44%)
- Consolidated Net Profit after Tax for the 2022 financial year of $63.7 million (2021: $36.8 million)
- Total comprehensive profit of $130.9 million after an increase in the fair value of financial assets (ASX listed securities)
- Basic earnings per share of 6.49 cents (2021: 4.18 cents)
- Operating cash flow for the 12 months to 31 December 2022 was $132.2 million (2021: $89.2 million)
- Group free cash flow generated for 2022 was $77.5 million (2021: $22.1 million)
Strong Balance Sheet
- Gold Road ended the year in a strong position with cash and short-term deposits of $74.4 million (2021: $131.5 million) after cash outflows of $121.8 million that predominantly relate to the DGO Gold Ltd takeover and strategic investment in De Grey Mining Ltd
- Gold dore and bullion on hand is estimated at $6.4 million Gold Road remains debt free, and all gold production is unhedged
- Financial assets in the form of liquid investments valued at fair value of $406.5 million
- Fully franked dividend of 0.5 cents per share determined for six months to 31 December 2022
Strong Production and Growth Outlook
- Gruyere has produced 918,479 ounces since first gold in June 2019 (100% basis)
- Gruyere remains on target to grow annual production to a sustainable 350,000 ounces per annum from 2023
- Gold Road’s attributable mineral resources increased to 4.8 million ounces while attributable ore reserves fell slightly to 2.0 million ounces
- Successful takeover of DGO Gold Ltd to establish a strategic portfolio of investments and exploration assets