Gold Road Resources Limited

Gold sales revenue was $156 million, operating cash flow was $107 million, and free cash flow was $34 million for the March quarter. Gruyere produced 71,226 ounces at an all-in sustaining cost of $2,658 per ounce, with lower throughput and lower head grade due to maintenance issues at the primary crusher and mill conveyors. Cash and equivalents finished at $204 million, including $17 million of unsold doré/bullion, and the company said it remained debt-free with close to $1.1 billion of liquid assets including listed investments. Forward guidance was unchanged: full-year production of 325,000 to 350,000 ounces on a 100% basis and AISC of AUD 2,400 to AUD 2,600 per ounce.

Duncan Gibbs said the quarter was operationally disappointing because plant issues constrained throughput and grades, but he emphasized that those problems are now resolved and that March saw record crusher throughput as stockpiles were rebuilt. He repeatedly pointed to recovery in the second half of the year and said the company expects to remain within annual production and cost guidance. He also framed the quarter around long-term growth, citing the Gruyere underground study, Gilmour, and a strong gold price backdrop as reasons for optimism.

John Mullumby said the quarter translated into $156 million of gold sales revenue and $107 million of operating cash flow, with March alone delivering 60% of the quarter’s revenue and cash flow as Gruyere recovered. He noted $204 million in cash and equivalents at quarter-end, including $17 million of unsold doré/bullion, and said the quarter included $40 million of sustaining CapEx, of which $30 million was capitalized stripping, plus a $13 million fully franked dividend. He highlighted a $34 million free cash flow result and said the company remained debt-free with just over $1 billion in investments.

Analysts focused on the De Grey stake and whether Gold Road would hold it or pursue an in-specie distribution; Duncan Gibbs said there is no advantage in speculating now and called in-specie distribution the least effective option they have considered. Questions also centered on the operational recovery path, and management said mining volumes should continue improving, with throughput expected to recover to high-9-million-tonne-per-annum rates after the crusher and conveyor fixes. On underground development, Gibbs said drilling is the critical path now and that pre-feasibility-style studies could begin late this year or early next year, while Gold Fields was told to reengage behind closed doors if it wished to revisit its proposal.