Gold Road Resources (ASX: GOR) posts record earnings in FY23. Will this be repeated in FY24?

Highlights

• In six months ended 30 June 2023, the company broke multiple financial records
• In 1HFY23, the company reported 22.6% YoY rise in EBITDA to AUD 122.6 million
• Van Eck Associates Corporation has the highest stake in the firm, with a shareholding of around 10.46%

Gold Road Resources Limited (ASX:GOR) is a gold exploration and production company which operates Tier 1 mine and explorations projects across Queensland, South Australia and Western Australia. The total area covered by these projects is approximately 14,000 square kilometers.

The AUD 1.83 billion market cap firm delivered record performance and profit in the first half of the financial year 2023 (FY23), ended 30 June 2023. The period saw double-digit growth in profit and revenue. The performance was backed by supportive Australian dollar gold price and completion of unhedged production.

During the stated period, revenue increased by 16.5% YoY to AUD 229 million, EBITDA grew by 22.6% YoY to AUD 122.6 million and gold sales surged by 0.6% YoY to 80,115 ounces.

Top 10 shareholders of GOR

The top 10 shareholders of GOR have around 33.09% shareholding in the company, while the top four have around 21.98% shareholding. Van Eck Associates Corporation and The Vanguard Group, Inc. are the two biggest shareholders in the company with a shareholding of ~10.46% and ~5.00%, respectively.

Recent business update

On 3 January 2023, the company released December quarter update. During the period, gold sales stood at 37,037 ounces at an average sales price of AUD 3,040 per ounce. During the quarter, gold production from 50%-owned Gruyere mine was nearly 74,635 ounces on a 100% basis and in FY23, Gruyere produced nearly 321,978 ounces of gold.

Later in January 2024, full December 2023 quarterly results can be expected.

Through an ASX-update dated 26 October 2023, the company shared its September quarter update. The quarter witnessed gold sales of 44,321 ounces at an average sales price of AUD 2,946 per ounce. A record free cash flow of AUD 51.7 million was reported during the September quarter.

Outlook

In FY23, Gruyere produced approximately 321,978 ounces of gold, meeting the lower end of guidance. Attributable AISC guidance for the year remains the same at AUD 1,540-1,660 per ounce.

Studies have commenced at Golden Highway Project, 50%-owned by GOR and mining is anticipated to start in 2026. At Queensland Project, 100%-owned by GOR, drilling is expected to start in 2024.

Moreover, the company is committed to boost production and tapping mergers and acquisition opportunities.

Share performance of GOR

GOR shares closed flat at AUD 1.695 apiece on 9 January 2024. GOR’s share price has decreased by 8.87% in the past 12 months and has increased by 6.60% in the past six months.

The 52-week high of GOR is AUD 2.04, recorded on 28 December 2023, and the 52-week low is AUD 1.385, recorded on 27 February -2023.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 09 January 2024. The reference data in this report has been partly sourced from EODHD/Others.

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