The Gold Road Resources Ltd (ASX: GOR) share price is on watch this morning after the miner announced record gold production during the quarter ended June 2020. Gold Road Resources's Gruyere mine produced 71,865 ounces of gold during the quarter and remains on track to meet annual guidance.
What does Gold Road Resources do?
Gold Road Resources is a mid-tier Australian gold producer with a mine and exploration projects in the Yamarna Greenstone Belt in Western Australia's north-eastern Goldfields. Gold Road owns 50% of the Gruyere gold mine, which was developed in a joint venture with Gold Fields Limited. The mine produced its first gold in June 2019 and is forecast to produce an average of 300,000 ounces annually for at least 11 years.
What did Gold Road Resources announce?
Gold Road Resources released its most recent quarterly production report this morning showing Gruyere produced 71,865 ounces of gold during the quarter at an all-in sustaining cost (AISC) of $1,233 per ounce. AISC for 2020 is now expected to fall between $1,150 and $1,250 an ounce, up from previous guidance of $1,100 to $1,200 an ounce. The company made gold sales of 28,700 ounces during the quarter at an average price of $2,498 an ounce.
The Gruyere mine celebrated its first 12 months of gold production on 30 June 2020. In that time the mine has produced 230,590 ounces of gold. This was delivered at an average AISC of $1,155 per ounce attributable to Gold Road Resources. The company ended the June quarter in a strong position with cash and cash equivalents of $109.1 million, giving a net cash and equivalents position of $84.1 million. The company became debt free this month after having repaid its remaining $25 million in debt.
How has Gold Road Resources been performing?
The Gold Road Resources share price is up 41% over 2020 and 139% since its March low. The miner has been helped by the rising gold price, which has gone from $2,200 at the start of 2020 to closer to $2,600 currently.
The company experienced no material production impacts as a result of COVID-19 and is a relatively low cost gold producer. In 2020, Gold Road Resources has provided production guidance of 250,000 to 285,000 ounces of gold.
