Mid-tier gold production and exploration company Gold Road Resources Limited (ASX: GOR) has released its production and exploration report for the three-month period to 31 March 2024.
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. In addition, Gold Road also has a significant investment portfolio.
The company will be holding an investor and analyst conference call discussing the March 2024 quarter results at 10.30am AEDT (8.30am AWST) today. A live webcast of the briefing will be available on the company’s website at www.goldroad.com.au/webcast. A recording of the webcast briefing will be available on Gold Road’s website following the conclusion of the webcast.
HIGHLIGHTS
Production and Guidance
- Mining and processing operations have resumed at Gruyere, with consumables transported via the Northern Territory and Warburton to the east of Gruyere while repairs continue on the Great Central Road, Gruyere’s main supply route from the west. As stated previously, production at Gruyere was impacted by sustained rainfall and extended road closures during March and into April.
- Gruyere produced 64,323 ounces of gold (100% basis) at an AISC of A$2,194 per attributable ounce during the March 2024 quarter (December quarter: 74,659 ounces at an AISC of A$1,973 per attributable ounce).
- Following the rain event, 2024 annual guidance for Gruyere continues to be anticipated to be in the lower half of guidance of between 300,000 and 335,000 ounces (150,000 to 167,500 ounces attributable) and the upper half of attributable AISC of between A$1,900 and A$2,050 per ounce. Impacts of the rain event will result in lower than previously anticipated production in the June quarter.
- As stated previously, mining rates were at desired rates during February and early March (prior to the rain event) and production remains guided to continue to ramp up through the calendar year with stronger production performance anticipated for the second half of the year.
- Drilling commenced to test further mining opportunities beneath the Gruyere ore reserve.
Financial and Corporate
- Gold Road’s gold sales totalled 32,325 ounces at an average sales price of A$3,137 per ounce. Gold doré and bullion on hand on 31 March 2024 was 1,825 ounces.
- Gold Road’s attributable operating cash flow from Gruyere for the quarter was $57.9 million (December quarter: $69.6 million).
- Free cash flow was $5.5 million (December quarter: $13.8 million).
- Gold Road’s corporate all-in cost, which includes growth capital, corporate and exploration costs, was A$2,638 per ounce.
- Cash and equivalents were approximately $146.2 million (December quarter: $149.8 million) with no debt drawn following payment of a $8.9 million, fully franked final dividend of 1c per share dividend.
- At 31 March 2024, Gold Road held listed investments with a market value of approximately $469 million.
Discovery
- Rain events significantly impacted exploration efforts during the quarter and delayed or suspended programs at Gruyere, Yamarna (including Gilmour) and Mallina.
- Encouraging RC drill intersections were returned from immediately north of the Gilmour resource at Yamarna and included 4m at 7.37 g/t Au.
