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Highlights

  • Gold Road is an Australian company engaged in gold exploration and production across Queensland, Western Australia and South Australia
  • In 1HFY23, the company’s revenue increased by 16.5% YoY to AUD 229 million
  • Van Eck Associates Corporation has the highest stake in GOR with a shareholding of nearly 10.46%

Gold Road Resources Limited (ASX: GOR) is an ASX-listed gold exploration and production company. The firm manages its Tier 1 mine and exploration projects across Western Australia, South Australia, and Queensland. The company owns 50% of the Gruyere gold mine.

In the first half of financial year 2023 (FY23), the company saw a 16.5% YoY rise in revenue to AUD 229 million, and 39.6% YoY increase in NPAT to AUD 55.7 million. Operating cash flow during the period stood at AUD 110.3 million, up 58.7% over the previous corresponding period. In 1HFY23, gold sales were 80,115oz.

The company’s performance during the half was driven by unhedged production, supportive Australian dollar gold price, among other favourable factors.

Top 10 shareholders of GOR

The top 10 shareholders of GOR have around 33.18% shareholding in the company, while the top four have nearly 21.99% shareholding. Van Eck Associates Corporation and The Vanguard Group, Inc. have maximum stake in the company with a shareholding of ~10.46% and ~5.00%, respectively.

Recent business update

Through an ASX-filing dated 29 January 2024, the company informed that in the December quarter, gold production was 74,659oz from Gruyere at an AISC of AUD 1,973 per attributable ounce, down 15.8% QoQ. Gold production fell because of delays in accessing higher grade ore from the open pit.

Gold sales for the quarter stood at 37,037oz, on a 50% basis and average sales price was AUD 3,040 per ounce.

In FY23, Gruyere produced 321,984oz of gold, which led to attributable gold production of 160,992oz at an AISC of AUD 1,662 per ounce for the year.

Outlook

In FY24, Gruyere is expected to deliver gold production of 300,000-335,000oz. For the year, attributable gold production of 150,000-167,500oz is expected at an attributable AISC of AUD1,900-2,050/oz.

The focus is to advance drilling and exploration across the projects including Mallina, Gruyere JV, Yamarna, and Greenvale & Galloway. The company is committed to tapping merger and acquisition opportunities.

Share performance of GOR

GOR shares closed 0.342% up at AUD 1.465 apiece on 6 February 2024. Including today’s gain, GOR’s share price has dropped by 24.29% in the last nine months, and in the past three months, it has decreased by 23.10%.

GOR’s 52-week high of AUD 2.04 was recorded on 28 December 2023, while 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 06 February 2024. The reference data in this report has been partly sourced from REFINITIV.