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Gold Road Resources (ASX:GOR) - Managing Director & CEO, Duncan Gibbs - The Market Herald
Managing Director & CEO, Duncan Gibbs
Source: The Australian
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  • Gold Road Resources (GOR) sold over $83 million worth of gold over the December 2020 quarter, with gold production falling comfortably within company guidance
  • The billion-dollar gold stock told investors this morning it produced almost 71,000 ounces of gold over the three months to the end of December
  • At the same time, Gold Road sold almost 35,000 ounces of gold over the three months
  • At an average price of $2412 per ounce of gold, this means the company made $83.4 million in gold sales over the quarter
  • Gold Road's sales and production numbers fall comfortably within its guidance for the quarter
  • Meanwhile, Gold Road has also hit some exploration success at its wholly-owned Yamarna Discovery in Western Australia
  • Shares in the company are up almost one per cent this morning to $1.26 per share

Gold Road Resources (GOR) sold over $83 million worth of gold over the December 2020 quarter, with gold production falling comfortably within company guidance.

The figures were revealed in the company's latest quarterly report wherein the billion-dollar gold stock revealed it produced 70,794 ounces of gold over the three months to the end of December — 26.6 per cent higher than the 55,919 ounces produced over the September quarter.

This takes annual production for the 2020 calendar year to just over 258,000 ounces — comfortably within Gold Road's guidance of between 250,000 and 270,000 ounces of gold.

This production comes from the Gruyere Gold Mine, which Gold Road operates in a 50/50 joint venture with the Gruyere Mining Company.

Importantly, this production rate translated to 34,554 ounces of gold sold. At an average price of $2412 per ounce, this means Gold Road made roughly $83.4 million through gold sales over the quarter.

The company also made good on some of its hedged gold over the quarter, delivering 6115 ounces into forward sales contracts at an average $1801 per ounce.

This means at the end of December, the company's forward sales contracts totalled 73,080 ounces at an average contract price of $1857 per ounce — representing around a quarter of predicted production from January 2021 through November 2022.

Moreover, Gold Road produced gold at an all-in sustaining cost (AISC) of $1265 per ounce, which is an improvement on the September quarter's $1488 per ounce.

For the 2020 calendar year, average AISC was $1273 per ounce, once more within the company's guidance of between $1250 and $1350 per ounce.

Gold Road boosted its cash position by almost $30 million over the December quarter, with $132.9 million on hand at the end of 2020.

Exploration highlights

While the company produced and sold gold within its guidance, Gold Road also had some exploration success over the quarter.

Best results came from the Gilmour deposit and Smokebush prospect at the company''s wholly-owned Yamarna Discovery in Western Australia.

These results include a 4.9-metre hit at 5.16 grams per tonne of gold from 353.1 metres at Gilmour and a 15-metre hit at 6.37 grams per tonne of gold from 144 metres at Smokebush.

Investors have reacted relatively well to today's update, with Gold Road shares up 0.96 per cent at 11:53 am AEDT to $1.26 each.

GOR by the numbers
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