Gold Road Resources (GOR) Q2 2024 earnings summary

Executive summary

• Gruyère produced 62,535 oz gold at A$2,441/oz AISC in Q2 2024, with operations recovering after a severe seven-week rain event and road closures in April, and record mining and processing rates achieved in May.

• Gold Road remains debt-free with A$86 million in cash and equivalents after a A$50.8 million investment in De Grey Mining and a one-off A$22.6 million tax payment.

• The investment portfolio was valued at approximately A$478.4 million at quarter end.

• Exploration advanced at Yamarna, Gilmour, Balter, Greenvale, and Galloway, with high-grade results supporting future growth and mine readiness targeted for 2026.

Financial highlights

• Gold sales revenue for the quarter was A$110.3 million from 31,216 oz sold at an average price of A$3,532/oz.

• Attributable operating cash flow from Gruyère was A$74.2 million, up 30% quarter-on-quarter.

• Group free cash outflow was A$9.7 million, or A$16 million including investments, after tax payments.

• Liquid assets total nearly A$0.6 billion, including listed investments valued at A$478.4 million.

• Corporate All-In Cost (CAIC) was A$3,186/oz for the quarter.

Outlook and guidance

• 2024 Gruyère production guidance was revised to 290,000–305,000 oz (145,000–152,500 attributable), down from 300,000–335,000 oz, due to rain impacts and operational risks.

• AISC guidance increased to A$2,050–A$2,200/oz, up from A$1,900–A$2,050/oz, reflecting lower production, higher royalties, and increased sustaining CapEx.

• Mining rates are expected to ramp up in H2 2024 to 65–70 Mtpa to ensure reliable ore supply for 2025 and beyond.

• September quarter may face limited ore availability, with stronger performance anticipated in December and 2025.

• Exploration and mine readiness studies to continue at Yamarna, with drilling at Mallina, Balter, and Greenvale planned for later in 2024.