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 safety performance marked by one lost time injury and production ramping up to meet annual guidance.

• Operating cash flow from Gruyere rose to AUD 89 million, with free cash flow improving to AUD 19.8 million and cash and equivalents closing at AUD 109.2 million, remaining debt free.

• Listed investments grew in value to AUD 579.6 million as of 30 September 2024, 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.

• Significant exploration progress at Mallina, Greenvale, Balter, and Yamarna, with drilling underway or planned and results expected in late 2024 and early 2025.

Financial highlights

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

• Operating cash flow from Gruyere JV was AUD 89 million, up 20% from the prior quarter; free cash flow was AUD 19.8 million, reversing a prior outflow.

• Cash and equivalents at quarter end were AUD 109.2 million, including AUD 14.5 million in doré and unsold bullion.

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

• Listed investments valued at AUD 579.6 million as of 30 September 2024.

Outlook and guidance

• 2024 annual production guidance for Gruyere is 290,000–305,000 oz (145,000–152,500 attributable) at an AISC of AUD 2,050–2,200/oz, with output expected at the lower end due to earlier rain disruptions.

• Mining and processing rates are set to sustain 350,000 oz per annum, with expectations for stronger cash build in the December quarter and into 2025.

• Guidance and multi-year outlook updates are expected in January.

• Yamarna Mine Readiness Project targeting mine readiness from 2026, with a reserve update and maiden ore reserve for Gilmore expected in early 2025.