Gold Road Posts $107M Net Profit on $349M Revenue, Maintains Gruyere Guidance

Financial Performance Highlights

Gold Road Resources Limited has delivered a striking financial performance for the half-year ended 30 June 2025, with net profit after tax soaring 148% to $107 million compared to $43.1 million in the prior corresponding period. This surge was underpinned by a 65% increase in revenue to $349.2 million, driven by both a higher average gold price of $4,858 per ounce and increased gold sales volume of 71,876 ounces.

EBITDA more than doubled to $201.8 million, reflecting operational leverage from the Gruyere Gold Mine joint venture. Despite higher costs, including increased exploration expenses and corporate service costs related to the ongoing acquisition scheme, the company maintained a strong gross profit margin, benefiting from the gold price environment.

Operational Overview and Guidance

The Gruyere Gold Mine, a 50, 50 joint venture with Gold Fields Limited, produced 144,206 ounces of gold in the first half of 2025, with processing impacted by unplanned plant downtime that lowered throughput and mill head grade. The all-in sustaining cost (AISC) per attributable ounce rose to A$2,794, above the prior year, reflecting these operational challenges.

Gold Road reaffirmed its full-year Gruyere production guidance of 325,000 to 355,000 ounces (162,500 to 177,500 ounces attributable), but anticipates production at the lower end of this range and AISC at the higher end, signaling a cautious outlook on near-term operational efficiency.

Strategic Corporate Developments

Significantly, Gold Road entered into a Scheme Implementation Deed with Gruyere Holdings Pty Ltd, owned by Gold Fields Limited, proposing a full acquisition at a fixed cash price of $2.52 per share plus a variable component linked to Gold Road’s stake in Northern Star Resources Limited. The scheme is subject to shareholder and court approvals, with a pivotal shareholder meeting scheduled for 22 September 2025.

The company plans to declare a fully franked Special Dividend contingent on the scheme’s implementation, which will affect the final cash consideration. This transaction marks a major strategic shift for Gold Road, potentially consolidating its assets under Gold Fields and unlocking shareholder value.

Balance Sheet and Investments

Gold Road’s balance sheet strengthened markedly, with cash and cash equivalents rising to $232 million and financial assets at fair value increasing to $921 million, largely due to market appreciation and the acquisition of Northern Star shares following a recent scheme involving De Grey Mining Limited. The company’s net assets grew by $226 million, reflecting robust operational cash flow and investment gains.

Exploration remains active, with ongoing drilling programs targeting underground expansion at Gruyere and advancing the high-grade Gilmour Project, which contributed to a 5% increase in Ore Reserves. The company’s commitment to exploration signals a focus on sustaining long-term resource growth despite near-term operational headwinds.

Looking Ahead

As Gold Road navigates the critical shareholder vote on the acquisition scheme, investors will be watching closely for the outcome and its implications for the company’s future. Operational challenges at Gruyere and the timing of the Special Dividend add layers of complexity to the near-term outlook. Nevertheless, the company’s strong financial position and strategic assets position it well for the next phase, whether as an independent miner or as part of Gold Fields.