INVESTORS AND MEDIA 
In the news
The news: Gold Road Resources has reported an expected drop in its March quarter output largely due to heavy rainfall affecting operations at its Gruyere mine site in Western Australia.
The numbers: The miner produced 63,243 ounces of gold in the three months to March, a 14% drop from the preceding quarter. All-in sustaining costs also jumped 11% to $2,194 an ounce. Sales also dipped to 32,325 ounces from 37,037 ounces during the December quarter.
Gold Road's share price fell 0.62% to $1.61 in early trading on the ASX and over the last 12 months has fallen 13.44%.
The context: Gold Road said operations continued to be affected by heavy rainfall and the ongoing closure of the main supply road. The ASX-listed firm owns a 50% interest in the Gruyere gold mine in Western Australia that it owns jointly with the mine's operator, Gold Fields.
RBC Capital Markets analysts said in a note that while the company was now using an alternate but convoluted supply chain system to overcome the weather impact, this was likely to come at an incremental cost.
The analysts had an 'underperform' rating on the stock and rated its sentiment on Gold Road as 'negative'. It had a price target of $1.30.
What they said: "The timing of road remediation remains unclear, hence the timeframe of any cost and/or production impacts remains unclear. If haul road access remains impaired, this could bring CY24 guidance into doubt," the analysts said.
