- Gold Road Resources (GOR) reports lower quarterly production at the Gruyere Gold Mine in Western Australia
- The mine produced 53,132 ounces of gold at an all-in sustaining cost (AISC) of $1659 per ounce in the June quarter compared to 66,213 ounces at $1386 per ounce in the March quarter
- The increase in AISC is attributed to lower production which was the result of a torn conveyor belt having to be repaired and replaced and other delays
- Gold Road expects 2021 production to be within the lower half of its guidance which is between 260,000 and 300,000 ounces
- Looking ahead, the gold stock is completing a 12,000-metre diamond drilling program and will update the Gruyer Ore Reserve Estimate later this year
- Company shares ended the day 1.19 per cent in the green to close at $1.28
Gold Road Resources (GOR) has announced softer production results from its Gruyere Gold Mine in the June quarter.
The Western Australia-based mine is held in a 50:50 joint venture with Gruyere Mining Company.
Gruyere produced 53,132 ounces of gold in the June quarter compared to 66,213 ounces in the March quarter. Production was delivered at an all-in sustaining cost (AISC) of $1659 per ounce compared to $1386 per ounce in the prior quarter.
The increase in AISC can be attributed to lower production which was the result of a torn conveyor belt having to be repaired and replaced. The ball mill also experienced a delayed restart which contributed to the lower production.
Gold Road sold 28,425 ounces of gold at an average sales price of $2145 per ounce compared to 32,100 ounces sold in the March quarter at an average price of $2138 per ounce.
The gold stock revealed it expected gold production for the 2021 calendar year to be within the lower half of its guidance which is between 260,000 and 300,000 ounces.
In terms of finances, the company generated $13.3 million in operating cashflow, and spent $14.75 million on investing activities and $15.7 million on financing activities.
At the end of the quarter, Gold Road had $124.38 million compared to the $141.5 million it started with.
Looking ahead, the company is completing a 12,000-metre diamond drilling program which began in April and is aimed at testing mineralisation below the current underground mineral resource.
Gold Road will also update the Gruyere Ore Reserve Estimate later this year which is expected to extend the depth of the mine’s open pit.
Company shares ended the day 1.19 per cent in the green to close at $1.28.