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.
