Mid-tier gold production and exploration company Gold Road Resources Limited (ASX: GOR) has released its activities report for the June quarter.
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.
June Quarter highlights:
Production and Guidance
- Gruyere produced 76,053 ounces of gold (100% basis) at an AISC of A$1,620 per attributable ounce during the June 2023 quarter (March quarter: 82,604 ounces at an AISC of A$1,399 per attributable ounce).
- As guided previously, gold production decreased quarter on quarter due to mining delays (arising from low drill and blast availability) reducing the quantities of higher-grade run-of-mine ore from the open pit. The reduced ore mined resulted in a requirement to blend low-grade stockpiled ore through the processing plant, resulting in overall lower average plant head grade and produced ounces.
- As also previously announced, 2023 annual production guidance was revised to between 320,000 – 350,000 ounces (160,000 – 175,000 ounces attributable). 2023 annual AISC is now expected at the upper end of existing guidance of between A$1,540 to A$1,660 per attributable ounce.
Financial and Corporate
- Gold Road’s gold sales totalled 38,297 ounces at a record average sales price of A$2,961 per ounce. Gold Road’s production is fully unhedged. Gold doré and bullion on hand on 30 June 2023 was largely unchanged at 1,622 ounces.
- Gold Road’s attributable operating cash flow from Gruyere for the quarter was $68.3 million (March quarter: $72.1 million).
- Free cash flow of $30.4 million for the quarter (March quarter: $44.2 million).
Gold Road’s Corporate All-In Cost (CAIC), which includes growth capital, corporate and exploration costs, was A$1,949 per ounce for the June 2023 quarter. - Cash and equivalents increased to $157.2 million (March quarter: $127.9 million) with no debt drawn.
- As at 30 June 2023, Gold Road held listed investments with a market value of approximately $416.1 million.
Discovery
- At the Gruyere JV, RC and diamond resource definition drilling was completed at the Golden Highway (Gold Road 50%). The drilling will be used to finalise plans for incorporating the Golden Highway into the Gruyere JV Mine plan from 2026 onwards. Significant economic intersections were received including 7m at 15.94 g/t, 4m at 26.83 g/t, 3m at 34.55 g/t, 0.49m at 141 g/t, 2m at 32.41 g/t and 5m at 11.45 g/t.
- At Yamarna (Gold Road 100%), regional aircore drilling was completed over early-stage exploration targets.
- At Mallina (Gold Road 100%), RC drilling commenced with assay results returned for ~70% of the drilling completed to date. RC and diamond drilling will continue through the September quarter.
- At the Greenvale and Galloway projects (Gold Road 100%) in Queensland, land access agreements continue to be progressed, with on-ground activities commenced and drilling now scheduled for early 2024.
