Mid-tier gold production and exploration company Gold Road Resources Limited (ASX: GOR) has released its financial results for the year to 31 December 2023.
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.
Key points:
Annual profit and cash flow generation
- Record revenue from gold sales for the full year of $472.1 million (2022: $382.9 million)
- Fully unhedged gold sales of 161,472 ounces (2022: 156,426 ounces) at an average realised gold price of $2,924 per ounce (2022: $2,448 per ounce)
- Record EBITDA for the 12-month period of $250.1 million (2022: $180.8 million) at an EBITDA margin of 53% (2022: 47%)
- Record net profit after tax for the 2023 financial year of $115.7 million (2022: $63.7 million)
- Record basic earnings per share of 10.73 cents (2022: 6.49 cents)
- Record operating cash flow for the 12 months to 31 December 2023 was $233.6 million (2022: $132.2 million)
- Record group free cash flow generated for 2023 was $140.2 million (2022: $77.5 million)
Strong balance sheet
- Gold Road ended the year in a strong position with cash and short-term deposits of $143.8 million (2022: $74.4 million) after cash outflows of $63.4 million related predominately to a strategic investment in De Grey Mining and cash dividend payments of $15.5 million
- Gold in circuit, doré and bullion on hand is estimated at $5.4 million
- Gold Road remains debt free
- Financial assets in the form of strategic investments valued at fair value of $465.0 million on 31 December 2023
Fully franked final dividend
- Fully franked final dividend of 1.0 cents per share determined for six months to 31 December 2023, in addition to the fully franked 1.2 cents per share interim dividend paid for the six months to 30 June 2023
Production and growth outlook
- Gruyere has produced 1,240,464 ounces since first gold in June 2019 (100% basis)
- Gruyere is guided to produce between 300,000 and 335,000 ounces in 2024 (100% basis)
- Gold Road has attributable mineral resources of 4.5 million ounces and attributable ore reserves of 1.83 million ounces as at 31 December 2023
- Studies and drilling commenced to test further mining opportunities beneath the Gruyere ore reserve and at the Gilmour mineral resource at Yamarna
- Large Australia-wide portfolio of greenfields exploration opportunities to be explored in 2024
