Gold Road Resources (GOR) Q3 2024 earnings summary

Executive summary

• Gruyere gold production increased to 68,791 oz (100% basis) in Q3 2024 at an AISC of AUD 2,551/oz, with production ramping up and positioned to meet annual guidance.

• Free cash flow improved to AUD 19.8 million, reversing a prior outflow, and cash and equivalents rose to AUD 109.2 million, with no debt drawn.

• Listed investments grew in value to about AUD 630 million, with an unaudited unrealized gain exceeding AUD 200 million.

• Gruyere mine life extends to at least 2032, with ongoing studies for underground expansion and new projects.

• The operation is positioned for a strong December quarter and 2025, targeting 350,000 oz per annum.

Financial highlights

• Quarterly revenue was AUD 121 million from 32,507 oz sold at a record unhedged price of AUD 3,719/oz.

• Free cash flow for the quarter was AUD 19.8 million, up nearly AUD 30 million from the prior quarter.

• Corporate all-in cost (CAIC) fell to AUD 2,980/oz, benefiting from the absence of prior one-off costs.

• The company remains debt-free, with liquid assets totaling approximately AUD 0.7 billion, including listed investments valued at AUD 579.6 million.

• A fully franked dividend of AUD 4.5 million was paid during the quarter.

Outlook and guidance

• 2024 annual production guidance for Gruyere is 290,000–305,000 oz, with output expected at the lower end due to earlier rain disruptions.

• Attributable AISC guidance for 2024 is AUD 2,050–2,200/oz.

• The operation is expected to sustain 350,000 oz per annum through 2025, with sufficient exposed ore to secure next year's production.

• Guidance and multi-year outlook will be updated in January.

• Yamarna Mine Readiness Project targeting mine readiness from 2026, with a reserve update expected in 2025.