The Motley Fool

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.

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.

For those looking for a more high-risk, high-reward play this year, this ASX buy-rated cannabis stock could be a good option for a diversified portfolio.

One ASX Stock For An Estimated $US22 Billion Marijuana Market

A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming. To the tune of an estimated $US22 billion.

Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.

Here's the best part: we think there's one ASX stock that's uniquely positioned to profit immensely from this explosive new industry... taking savvy investors along for what could be one heck of a ride.

AND, this is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.

Simply click below to learn more on how you can profit from the coming cannabis boom.

Click here to find out more

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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!