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Goldfields-based miner Gold Road Resources (ASX:GOR) has today warned shareholders there could be lower than expected output from its Gruyere mine through the March quarter after two conveyor belts derailed.
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The bad news saw the $2.75 billion miner dip more than 4% in value, to $2.53 a share.
Also denting Gold Road’s ability to hit its quarterly targets is that its primary crusher at its Western Australian project needs “unforeseen maintenance” – not ideal.
Numbers-wise, this means the WA miner will miss its targets by nearly 20,000 ounces; whereas it trucked out 91,631 ounces in December’s quarter, it’s looking like Gruyere will produce closer to 70,000 to 73,000 ounces this time around.
The company said it’s already working hard on solutions to the whole situation and hopes to overcome the delay quite quickly. “The Gruyere joint venture has investigated the cause of these issues and developed recovery plans.”
Full-year output and cost guidance will remain unchanged though, Gold Road promised.
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Gold Road still expects to hit around 350,000 ounces of gold through 2025; the miner is hopeful this will then sell for as much as A$2,600 an ounce.
GOR shares last sold at $2.53 after its 4.17% dip Tuesday morning.
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