Mid-tier gold production and exploration company Gold Road Resources Limited (ASX: GOR) has announced its activity report for the quarter ending 31 March 2022. Production is from the Gruyere Gold Mine, which is a 50:50 joint venture with Gruyere Mining Company Pty Ltd, a member of the Gold Fields Ltd Group (Gold Fields) that operates Gruyere.
Gold Road will hold an investor and analyst conference call to discuss the quarter at 10.30am AEDT (8.30am AWST) today. A live webcast of the briefing will be available on the company’s website. Please register your details at www.goldroad.com.au/webcast or by clicking here. A recording of the webcast will be available on the company’s website later today.
Production and Guidance
- Gruyere produced 71,135 ounces of gold (100% basis) at an AISC of A$1,526 per attributable ounce during the March 2022 quarter (December quarter: 67,813 ounces at an AISC of A$1,526 per attributable ounce).
- The increased production quarter on quarter was primarily due to improving head grades as well as continued strong quarterly processing throughput despite two scheduled plant shutdowns for relines of the SAG and ball mills, which were both successfully completed during the quarter.
- 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. Production is anticipated to increase steadily through 2022.
- During the quarter, Gold Road reported total attributable Mineral Resources of 102.2 million tonnes at 1.43 g/t Au for 4.71 million ounces and attributable Ore Reserves of 54.6 million tonnes at 1.27 g/t Au for 2.23 million ounces.
- Gold Road and Gruyere had no material impact on operations from COVID-19 during the quarter.
Financial and Corporate
- Gold Road’s gold sales totalled 35,080 ounces at an average price of A$2,434 per ounce and included the delivery of 8,700 ounces into forward sales contracts. Gold doré and bullion on hand on 31 March 2022 was 2,070 ounces.
- Free cash flow before payment of dividends was $1.1 million for the quarter (December quarter: $15.7 million), which included payment of $6.4 million in tax payments attributable to the prior period (as guided in the December quarterly report) and $10 million of adverse working capital movements which will unwind beneficially in the next quarter’s cashflows.
- Cash and equivalents increased to $138.0 million (December quarter: $135.5 million) and no debt drawn.
- On March 28, Gold Road determined a fully franked dividend of 0.5 cents per share for the six months to 31 December 2021.
- On April 4, Gold Road announced a recommended takeover offer for DGO Gold of 2.16 Gold Road shares for one DGO share. DGO owns a portfolio of prospective assets including a 14.4% shareholding in De Grey Mining Ltd, a 6.8% shareholding in Dacian Gold Ltd, a 20.1% shareholding in Yandal Resources Ltd. and an attractive portfolio of exploration tenements.
- Three drill rigs are currently active at the Yamarna Project (100% Gold Road). A total of 18,149 metres was completed during the March 2022 quarter.
- Encouraging results continue to be received from RC and aircore drilling completed at the Abydos, Waffler and Kingston prospects with follow-up programs in progress or completed and awaiting assays.