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Highlights:
- Gold Road, in its June quarterly report, shared that its Gruyere mine has produced a record 85,676 ounces of gold against 71,135 ounces in March quarter.
- The company attributed the production rise to record high head grades and high quarterly processing.
- Gold Road total sales totalled a record 44,526 ounces in June quarter.
- The company generated a free cash flow of AU$43.6 million in the given period.
Australian gold explorer and miner Gold Road Resources Limited (ASX:GOR), justifying its name, reported record gold production in its quarterly report for the period ended on 30 June 2022 (Q4 FY22). The company witnessed a robust quarter, with cash and equivalents reaching up to AU$161.3 million in June quarter from AU$138 million in March quarter.
The shares of Gold Road were quoted at AU$1.330 per share, up 7.692% at 11:30 AM AEST on the ASX today (28 July).
Details of Gold Road’s production update in the June 2022 quarter:
During the march quarter, Gold Road’s 50% joint venture Gruyere produced a record amount of gold - 85,676 ounces at an All-in Sustainable Cost of AU$1,250 per ounce.
The company reported a consistent growth in its gold production which was primarily driven by high head grades and high quarterly processing throughput.
After reporting a record production update, Gold Road said that Gruyere remains steady on the FY22 target to deliver 300,000 to 340,000 ounces of gold at an All-In Sustainable Cost between AU$1270 and AU$1470 per ounce.
The company also informed that its gold production was not impacted by COVID-19 in the given period.
Image source: © Bendicks | Megapixl.com
Details of Gold Road’s financial performance in the June quarter:
During the June quarter, Gold Road managed to sell a record 44,526 ounces of gold at an average price of AU$2,496 per ounce.
Based on the earnings in the June quarter, the company paid a fully franked dividend of 0.5 Australian cents per share to its eligible shareholders on 5 May 2022 for the six months since 31 December 2021.
The company also executed the takeover deal of DGO Gold Ltd in the given quarter. As of 30 June 2022, Gold Road held 97.9% interest, and the company is moving ahead to acquire all the outstanding shares of the company.
Gold Road reported a free cash flow worth AU$43.6 million in the quarter before paying dividends. Later the company spent AU$3.7 million to pay dividends; along with that, it also spent AU$12.2 million for the DGO Gold Ltd takeover.
At the end of the June quarter, Gold Road’s cash and equivalents stood at AU$161.3 million, compared to AU$138 million in the March quarter and with zero debt drawn.
Gold Road’s share price performance on the ASX:
Within the past 12 months, Gold Road’s share price has appreciated by 4.33% on the ASX. However, on Y-T-D basis, Gold Road’s share price has declined by 16.14% (as of 11:33 AM AEST, 28 July).
