Gruyere Hits 91,631 Ounces at A$1,811 AISC as Gold Road Boosts Cash Flow

• Gruyere gold production hits record 91,631 ounces at A$1,811 AISC
• 2024 annual production slightly below guidance at 287,270 ounces
• 2025 production guidance raised to 325,000–355,000 ounces with higher AISC
• Record quarterly free cash flow of A$76.2 million and cash reserves of A$173.9 million
• Significant exploration progress including Gilmour pre-feasibility study and deep drilling at Gruyere

Record Production and Cost Efficiency at Gruyere

Gold Road Resources (ASX: GOR) capped off 2024 with a standout December quarter, reporting record gold production of 91,631 ounces from the Gruyere Gold Mine at an all-in sustaining cost (AISC) of A$1,811 per attributable ounce. This marked a significant improvement from the previous quarter’s 68,781 ounces at A$2,551 per ounce, reflecting enhanced mining productivity and higher-grade ore access.

For the full year, Gruyere produced 287,270 ounces (143,635 attributable), narrowly missing the annual guidance range of 290,000 to 305,000 ounces. The average AISC for 2024 was A$2,211 per ounce, slightly above the guided range of A$2,050 to A$2,200, impacted by weather disruptions earlier in the year.

Strong Financial Performance and Elevated Cash Flow

Gold Road’s financial metrics mirrored operational gains, with record quarterly gold sales of 47,745 ounces at an average price of A$4,093 per ounce, generating sales revenue of A$195.4 million. Operating cash flow attributable to Gold Road surged to A$141.7 million, while free cash flow reached a record A$76.2 million, a substantial increase from A$19.8 million in the prior quarter. Cash and equivalents rose to A$173.9 million, bolstered by disciplined capital management and no debt drawdown.

The company’s Corporate All-In Cost (CAIC), which includes growth capital and exploration expenses, decreased to A$2,266 per ounce, underscoring improved cost control and operational leverage.

Ambitious 2025 Outlook and Exploration Momentum

Looking ahead, Gold Road has set a 2025 production target for Gruyere of 325,000 to 355,000 ounces (162,500 to 177,500 attributable) with an expected AISC of A$2,400 to A$2,600 per ounce. The higher cost guidance reflects increased waste stripping, a tailings dam lift, inflationary pressures, and infrastructure investments including a 200-room camp extension to support expanded mining activities.

Exploration remains a core growth pillar. The Yamarna Mine Readiness Project advanced with the completion of a pre-feasibility study (PFS) for the Gilmour deposit, revealing a maiden ore reserve of 0.19 million ounces at 4.10 g/t gold and a projected five-year mine life generating A$377 million in free cash flow at a conservative gold price of A$3,500 per ounce.

Additionally, a substantial 60,000-metre diamond drilling program is set to commence beneath the Gruyere open pit in early 2025, targeting mineralisation down to 1,200 metres depth. This program aims to upgrade resource classification and explore underground mining potential to extend Gruyere’s mine life beyond 2032.

Expanding Portfolio and Strategic Investments

Gold Road’s portfolio diversification continued with exploration activities across multiple projects including Mallina, Balter, Greenvale, and Galloway, alongside a farm-in agreement with Iceni Gold at the Guyer Prospect. The company holds a significant 17.3% stake in De Grey Mining, which is undergoing a takeover by Northern Star Resources, adding strategic value to Gold Road’s investment holdings.

With a discovery budget of A$34 million approved for 2025, Gold Road is well-positioned to leverage its extensive tenement holdings and exploration expertise to drive organic growth and shareholder value.

Bottom Line?

Gold Road’s record-breaking quarter and robust exploration pipeline set the stage for sustained growth, but rising costs and ambitious expansion plans warrant close market scrutiny.

Questions in the middle?

• How will Gold Road manage the anticipated cost pressures in 2025 while scaling production?
• What impact will the deep drilling beneath Gruyere have on extending mine life and production profiles?
• How might the Northern Star takeover of De Grey Mining influence Gold Road’s strategic investment returns?