Gold Road Resources (GOR) H2 2023 earnings summary

Executive summary

• FY23 statutory NPAT rose 81.7% YoY to $115.7m; revenue increased 23.3% to $472.1m, reflecting higher Gruyere gross profit and a stronger gold price environment.

• Gruyere produced a record 321,984 oz, up from 314,647 oz, but finished at the lower end of production guidance.

Financial highlights

• Gold sales revenue was $472.1m from 161,472 oz sold, versus $382.9m from 156,426 oz in FY22; average realised price rose to $2,924/oz from $2,448/oz.

• Gross profit increased to $220.9m from $148.4m; cost of sales rose to $251.2m from $234.5m, partly reflecting higher inventory charges.

• EBITDA was $250.1m versus $180.8m; EBIT was $170.1m versus $97.5m.

• Operating cash inflow reached $233.6m, up from $132.2m; cash and cash equivalents increased to $143.8m from $74.4m.

Outlook and guidance

• 2024 priorities include improving Gruyere production and performance with JV partner Gold Fields, and pursuing growth through discovery or a value-accretive transaction.

• 2024 STI targets include delivery within stated gold production and AISC guidance, continued exploration and resource growth, and stronger ESG performance.

• 2024–2026 LTI criteria link awards to discovery or value-accretive transactions, relative and absolute shareholder returns, and EPS growth; EPS hurdles exclude non-recurring items.