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Record first half as Gold Road reports strong cash flow, earnings and dividends - Investor Insight

Mid-tier gold production and exploration company Gold Road Resources Limited (ASX: GOR) has reported its financial results for the six-month period to 30 June 2023.

Gold Road’s principal asset is a half-share in the Gruyere gold mine, in Western Australia’s north-eastern Goldfields. The Gruyere JV is a 50:50 joint venture with Gold Fields (JSE: GFI), which manages and operates the Gruyere gold mine.

Highlights:

Record haf-year performance and profit

• Revenue from gold sales for the six months totalled $229.0 million (June 2022: $196.5 million)
• Gold sales of 80,115 ounces (June 2022: 79,606 ounces), with production benefiting from record throughput rates for the half year
• Operating cash flow for the six months to 30 June 2023 was $110.3 million (June 2022: $69.5 million)
• Group free cash flow generated for the six months to 30 June 2023 of $74.6 million (June 2022: $44.6 million)
• EBITDA for the six-month period totalled $122.6 million (June 2022: $100.0 million)
• EBITDA margin of 54% (June 2022: 51%)
• Consolidated net profit after tax for the six months of $55.7 million (June 2022: $39.9 million)
• Basic earnings per share of 5.17 cents (June 2022: 4.52 cents) for six months

Growing Cash Position

• Gold Road ended the half year with cash and short-term deposits of $152.6 million (31 December 2022: $74.4 million)

Fully franked interim dividend

• Fully franked dividend of 1.2 cents per share determined for six months to 30 June 2023 (June 2022: 1.0 cents)

Production Outlook

• Gruyere is on target to achieve restated 2023 annual guidance of 320,000 to 350,000 ounces (160,000 to 175,000 ounces attributable)
• Gold Road’s annual AISC guidance remains unchanged at A$1,540 to A$1,660 per attributable ounce

Strong Exploration and Investment Portfolio

• Strategic listed investments in De Grey Mining Ltd and Yandal Resources Ltd valued at $416.1 million on 30 June 2023.
• Drilling continuing at the Mallina and Yamarna Projects with on-ground activities commenced at the Greenvale Project.
• Drilling completed at the Golden Highway Project (Gold Road 50%) in preparation for feasibility level studies.

"The six-month period to 30 June 2023 has broken several financial records for Gold Road with the strong result reflecting the consistent performance of the processing plant, a supportive Australian dollar gold price and Gold Road’s production being fully unhedged," managing director Duncan Gibbs said.

"The company continued to return income to shareholders in the form of six-monthly dividend payments and the board has determined to pay a dividend for the six months to 30 June 2023 of 1.2c. In determining the dividend, your board has considered the potential requirements to support growth and future operating conditions."

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