Gruyere glitters for Gold Road growth
Wednesday, August 31st, 2022
Gold Road Resources has achieved strong net profit from record gold sales revenue of $196.5 million, up from $129.6m at the same time last year.
The figures were achieved from an output of 79,606 ounces as a result of record throughput rates and head grades.
The net profit after tax reached $39.9million, while EBITDA for the period totalled $100m, a new record. A fully franked dividend of 1 cent per share was determined.
Gold Road’s annual AISC guidance remains unchanged at $1270–$1470 per attributable ounce.
The Gruyere mine in Western Australia achieved record production for the half year in line with the outlook of growing production through 2022 and 2023, resulting in strong free cash flow for Gold Road and a record net cash position.
It remains on target to achieve 2022 annual guidance of 300,000–340,000oz and to grow annual production to a sustainable 350,000oz per annum by 2023.
On the growth outlook front, Gold Road’s acquisition of the remaining shares in DGO Gold, completed on August 4, means it has a 14.4 per cent shareholding in De Grey Mining, a 6.1 per cent shareholding in Dacian Gold, a 20.1 per cent shareholding in Yandal Resources, and a diverse portfolio of exploration tenements.
By June 30, four drill rigs were operating at Yamarna (100 per cent) and the Golden Highway (Gold Road 50 per cent) in WA, as well as one operating on regional projects as the company continues to explore for a meaningful discovery.
Gold Road managing director Duncan Gibbs said the six months had been a successful one despite the challenging global operating environment.
“The successful completion of the DGO Gold takeover in June now provides Gold Road with an even more exciting platform for growth,” he said.