Gold Road Resources (ASX: GOR)
Presented its activity report for the quarter ending 30 September 2023.
During the September 2023 quarter, Gruyere delivered quarterly gold production of 88,668 ounces (100% basis), delivered at an AISC of A$1,682 per attributable ounce to Gold Road (June quarter: A$1,620 per ounce).
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Gold Road – Gruyere JV Gold Mine at night.
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| Gold Road | ASX : GOR |
| Stage | Production (50% JV) |
| Metals | Gold |
| Market cap | A$2 Billion @ A$1.86 |
| Location | Laverton, Western Australia |
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Gold Road September Quarter 2023 Quarterly Report
Highlights
Gold Road Resources Limited (ASX: GOR) (Gold Road or the Company), presents its activity report for the quarter ending 30 September 2023.
Production is from the Gruyere Gold Mine (Gruyere), a 50:50 joint venture with Gruyere Mining Company Pty Ltd, a member of the Gold Fields Ltd Group (Gold Fields), which operates Gruyere.
During the September 2023 quarter, Gruyere delivered quarterly gold production of 88,668 ounces (100% basis) (June quarter: 76,053 ounces).
Production was delivered at an All-in-Sustaining Cost (AISC) of A$1,682 per attributable ounce to Gold Road (June quarter: A$1,620 per ounce).
Production and Guidance
Gruyere produced a record 88,668 ounces of gold (100% basis) at an AISC of A$1,682 per attributable ounce during the September 2023 quarter (June quarter: 76,053 ounces at an AISC of A$1,620 per attributable ounce).
2023 annual production guidance is unchanged at between 320,000 – 350,000 ounces (160,000 – 175,000 ounces attributable) and AISC is anticipated to remain within guidance of between A$1,540 to A$1,660 per attributable ounce.
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Financial and Corporate
Gold Road’s gold sales totalled 44,321 ounces at an average sales price of A$2,946 per ounce. Gold doré and bullion on hand on 30 September 2023 was 1,736 ounces. Gold Road continues to be unhedged and 100% exposed to the spot gold price.
Gold Road’s attributable operating cash flow from Gruyere for the quarter was
$93.5 million (June quarter: $68.3 million).
Record free cash flow of $51.7 million for the quarter (June quarter: $30.4 million).
Gold Road’s Corporate All-In Cost (CAIC) which includes growth capital, corporate and exploration costs was A$1,959 per ounce for the September 2023 quarter.
Cash and equivalents increased to $209.3 million (June quarter: $157.2 million) prior to dividend payment and investments in October, with no debt drawn.
On 28 September 2023, Gold Road committed to subscribe for 59,675,554 shares in a two tranche institutional placement by De Grey Mining Ltd (ASX:DEG) at $1.05 per share increasing its strategic shareholding to 19.9%.
As at 30 September 2023, Gold Road held listed investments with a market value of
approximately $345.1 million which excludes the aforementioned subscription for further
shares in De Grey Mining.
Following a strong half year result, on 5 October 2023, Gold Road paid a fully franked interim dividend of 1.2 cents per share for the six months to 30 June 2023
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Discovery
At the Gruyere JV (50% Gold Road), results continue to be received for drilling completed in the previous quarters at the Golden Highway. Significant intersections received included 6 metres at 4.0 g/t Au from 30 metres, 5 metres at 7.0 g/t Au from 69 metres and 13 metres at 2.8 g/t Au from 22 metres.
At Yamarna (Gold Road 100%) three drill rigs are operating at the Jatz, Hopwood and Gallagher prospects.
At Mallina (Gold Road 100%) RC drilling was completed, intersecting encouraging geology and gold results, with follow up diamond drilling scheduled for October. Other on ground activities included soil sampling and mapping.
At the Greenvale and Galloway projects (Gold Road 100%) in Queensland, on ground activities including soil sampling, rock chipping, mapping and geophysical surveys are ongoing with drilling scheduled for 2024.
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To read the full news release, please click HERE
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If you need clarification of any information contained in this note, or have any questions, I will be delighted to assist – Please email andrew@city-investors-circle.com
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Disclosure
At the time of writing the author holds shares in Gold Road Resources.
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