Gold Road share price one to watch after revising 2019 production numbers

The Gold Road Resources Ltd (ASX: GOR) share price looks set to fall this morning after the company revised its 2019 production numbers in its after-market quarterly update.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Gold Road Resources Ltd (ASX: GOR) share price looks set to fall this morning after the company revised its 2019 production numbers in its after-market quarterly update.

What did Gold Road announce yesterday?

In one of the last releases on the ASX, Gold Road provided an update on its Gruyere Gold Project with the first gold poured "elevating Gold Road to the ranks of ASX-listed gold producers."

Gruyere is a joint venture with Gold Fields Ltd, which is operating and managing the Project, and represents a big step forward for the mid-tier Aussie gold explorer and producer.

Gold Road's guidance for 2019 gold production was revised to 75,000–100,000 ounces (100%) for calendar 2019, as previously announced on 19 June 2019.

In the report, Gold Road indicated that a ramp-up to nameplate production is anticipated over the next six to seven months from commissioning of the ball mill early in the September 2019 quarter.

According to management, the Gruyere Gold Project remains in line within the company's final forecast capital cost estimate of $621 million and mining continues to track ahead of schedule.

In terms of exploration, Gold Road reported that drilling is focused on the Gilmour deposit and Morello prospect in the 100% owned Southern Project Area.

Results from drilling designed to support an evaluation of a Maiden Mineral Resource at Gilmour included 2.06 metres at 12.40 grams per tonne from 357.2 metres, and 4 metres at 496 grams per tonne at 199 metres.

According to Gold Road's report, initial Gilmour metallurgical test work indicates potential recoveries ranging from 89% to 99%, with 28% to 82% of gold recovered by gravity separation.

On the balance sheet side of things, Gold Road reported that as at 30 June 2019 it had cash at bank of $63 million with $65 million of debt drawn down from its $150 million facilities available.

How has the Gold Road share price performed?

While this morning's reaction to the revised gold production numbers will be one to watch, the Gold Road share price is still 113% higher than it was at the start of the year.

With a $1.26 billion market cap, Gold Road is looking to climb its way into the same echelon as other major gold players including St Barbara Ltd (ASX: SBM) and Regis Resources Ltd (ASX: RRL) by ramping up production activity.

The ASX gold miners have generally performed well in 2019 as geopolitical uncertainty and concerns over global economic growth have sent investors heading for the traditional safe haven asset.

Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »

Father in the ocean with his daughters, symbolising passive income.
Dividend Investing

I'd spend $8k on these ASX 200 shares today to target a $6,102 annual passive income

I believe these ASX 200 shares will continue rewarding passive income investors for years to come.

Read more »

Three businesspeople leap high with the CBD in the background.
Share Market News

Boom! ASX 200 blasts to new record highs

ASX 200 investors just sent the benchmark index into uncharted territory.

Read more »