Mid-tier gold production and exploration company Gold Road Resources (ASX: GOR) has released its March quarter activities report for the three-month period to 31 March 2025.
Gold Road’s principal asset is a half-share in the world-class 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. In addition, Gold Road also has a significant investment and exploration portfolio that included a 17.3% stake in De Grey Mining, which is in the process of being taken over by Northern Star Resources.
Gold Road’s management, led by managing director Duncan Gibbs, will be hosting an investor and analyst call today at 10.30am AEDT (8.30am AWST). Register for the call here.
HIGHLIGHTS
Production and Guidance
- Gruyere gold production of 71,226 ounces (100% basis) at an All-in Sustaining Cost (AISC) of A$2,658 per attributable ounce during the March 2025 quarter (December quarter: 91,631 ounces, AISC of A$1,811 per attributable ounce).
- 2025 annual guidance for Gruyere is maintained at 325,000 – 355,000 ounces (162,500 – 177,500 attributable) at an attributable AISC of between A$2,400 and A$2,600 per ounce.
Financial and Corporate
- Gold sales of 34,135 ounces at a record average sales price of A$4,555 per ounce. Gold doré and bullion on hand on 31 March 2025 increased to 3,311 ounces.
- Gold Road’s attributable operating cash flow from Gruyere for the quarter was $106.6 million (December quarter: $141.7 million).
- Free cash flow generated for the quarter of $34.1 million (December quarter: $76.2 million).
- Gold Road’s Corporate All-In Cost (CAIC), which includes growth capital, corporate and exploration costs, increased to $3,058 per ounce for the March quarter (December quarter: $2,266 per ounce).
- Cash and equivalents increased to $203.8 million (December quarter: $173.9 million) with no debt drawn. The market value of Gold Road’s listed investments was approximately $1 billion at 24 April 2025 (31 December 2024: $742.7 million).
- On 7 March 2025, Gold Road received a confidential non-binding indicative takeover offer from Gold Fields Ltd. After careful consideration and engagement with Gold Fields, the board of Gold Road unanimously formed the view that the proposal materially undervalued the company and was highly opportunistic. Accordingly, the board rejected the proposal. On 24 March 2025, Gold Fields publicly announced the terms of its confidential proposal and rejection by Gold Road.
- On 22 April 2025, the Federal Court of Australia approved the acquisition of De Grey Mining Limited by Northern Star Resources Limited by way of a scheme of arrangement, with the scheme legally effected on 23 April 2025. Gold Road will hold 49,258,234 shares in Northern Star from the Implementation date of 5 May 2025.
Discovery and Growth
- The Gruyere drilling program (~60,000 metres) is progressing well with up to four rigs operational during the quarter.
- On 20 January 2025, Gold Road announced the results of the Gilmour Gold Project Pre-feasibility Study. The PFS projected a pre-tax free cash flow estimated at A$377 million at a flat A$3,500 per ounce and A$569 million at a flat A$4,300 per ounce gold price, mine life of five years averaging 50,300 ounces per annum at an average AISC of $2,004 per ounce, producing a life of mine total production of 0.25 million ounces at 3.9 g/t Au from the underground and open pit.
