The Gold Road Resources Ltd (ASX: GOR) share price has moved lower after an early trade peak despite the release of positive HY20 results.
At the time of writing, The Gold Road share price has dropped 0.53% to $151 after an peak of $1.55 in early morning trade. This compares to the S&P/ASX 200 Index (ASX: XJO) which is down 2.1% after a market sell-off in the United States overnight.
Let's take a look at the gold miner's results for the first half of the financial year.
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How did Gold Road perform in FY20?
For the six-month period ending 30 June, Gold Road produced 131,460 ounces of gold at an all-in sustaining cost of $1,186 per attributable ounce. This was led by its Gruyere Project starting commercial production on 1 October 2019.
Operating cash flow came in at $59.6 million, up 465% from $12.8 million on the prior year. The increase resulted from gold sales revenue at the Gruyere Project.
Gold Road sold 60,400 ounces of gold at an average price of $2,237 per ounce, thanks to the rising spot price of gold. This reflected revenue from gold sales of $135.1 million for the first half of the year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) totalled $61 million compared with a $23 million loss on the prior year.
Consolidated net profit after tax was $23.4 million vs a $16.9 million loss in HY19.
The mid-tier gold miner recorded a strong balance sheet with cash on hand $73 million, and debt free after paying $25 million of borrowings on 21 July 2020.
What did management say?
Managing director and CEO Duncan Gibbs was pleased with Gold Road's result. He said:
June saw us celebrate our first year of gold production at Gruyere… We are seeing some positive signs in terms of throughput and recoveries, but we are still on the journey of improving plant availability as we continue to transition into fresh rock. The strong cash flow performance at Gruyere has enabled us to pay down all our debt within less than 10 months from declaring commercial production and this leaves us in a very strong position.
Mr Gibbs went on to say the company was continuing an exploration push in the underexplored Yamarna Greenstone Belt.
The half year saw us realign strategy to increase the likelihood of us making meaningful discoveries, as befits a company of our size. The relatively shallow aircore drilling completed so far this year will lead to deeper bedrock drilling of new targets over the coming 6 to 12 months.
About the Gold Road share price
The Gold Road share price has risen 190% since falling to its 52-week low of 80.5 cents in March. From reaching an all-time high of $2.02 achieved in July, the Gold Road share price is up 11% since the start of the calendar year.
