Image source: © Bashta | Megapixl.com

Highlights

  • Gold Road Resources is a mid-tier gold exploration and production company
  • In FY23, GOR’s revenue increased by 23.30% YoY to AUD 472.10 million
  • Van Eck Associates Corporation has the maximum stake in GOR with a shareholding of nearly 10.44%

Gold Road Resources Limited (ASX: GOR) is an ASX-listed mid-tier gold production and exploration company. The company manages Tier 1 mine and exploration projects in Queensland, South Australia and Western Australia. The key segments of the company are operations, investments and exploration.

In the financial year 2023 (FY23), the company posted net profit after tax of AUD 115.7 million, compared to AUD 63.7 million in the previous corresponding period. During the reported period, the free cash flow of the company jumped by 80.90% to AUD 140.2 million, driven by an increase in cash and short-term deposits accumulating to AUD 143.8 million.

The reported period saw a 23.30% YoY increase in the revenue to AUD 472.10 million and 38.33% YoY surge in EBITDA to AUD 250.10 million.

Worth mentioning here is that the company remained debt-free over the period.

Top 10 shareholders of GOR

The top 10 shareholders of GOR have around 28.05% shareholding in the firm, and the top four shareholders have 18.11% of the shareholding. Van Eck Associates Corporation and The Vanguard Group, Inc. have the highest stake in the firm with a shareholding of 10.44% and 2.80%, respectively.

Image source: © 2024 Krish Capital Pty. Ltd., Data Source: REFINITIV

Recent business update

Through an ASX update dated 18 April 2024, the company informed that as on 31 March 2024, the company generated free cash flow of AUD 5.5 million along with listed investments valuing at AUD 469 million, despite rain impact.

According to an ASX-filing dated 3 June 2024, in first quarter of FY24 (1QFY24), gold production stood at 64,323oz at Gruyere at AISC of AUD 2,194 per oz. In March, gold production got affected by rain.

Further, the company made a strategic investment in De Grey Mining with ownership share of 17.8% of the 10.5 Moz Hemi discovery. With this development, strategic investments figured at AUD 487 million as of 21 May 2024.

Outlook

In FY24, the company anticipates production of 300k – 335k ounces from Gruyere. Additionally, in FY24, the company expects to start potential mining opportunities below Gruyere Ore Reserves and at Gilmour Mineral Resources at Yamarna.

The company has allocated a budget of AUD 33 million towards drill testing and delineation of specified targets across the exploration portfolio.

In 2024, drilling is expected to begin at Mallina, Galloway and Greenvale. 

Share performance of GOR

GOR shares closed 0.315% higher at AUD 1.59 apiece on 18 June 2024, with a market cap of AUD 1.71 billion. GOR’s share price has dropped by almost 10.67% in the past one year and in the last three months, it has increased by nearly 2.58%.

The 52-week high of GOR is AUD 2.04, recorded on 28 December 2023, while the 52-week low is AUD 1.365, recorded on 22 February 2024.

GOR Daily Technical Chart, Source: REFINITIV

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 18 June 2024. The reference data in this report has been partly sourced from REFINITIV.