Gold Road Resources Ltd (ASX: GOR) shares are shooting higher today after the company released its 2020 full-year results to the market this morning. At the time of writing, the Gold Road share price has leapt 8.5% to $1.15.
Let's take a look at how the ASX gold producer has been performing.
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What did the company report?
The Gold Road share price is gaining after the company reported it had paid down all its borrowings over the financial year while generating $105 million in free cash flow.
As at 31 December 2019, Gold Road had $78.5 million in debt, which was fully repaid by 21 July 2020. The company ended the year with $126.4 million in cash and short-term deposits, up from $101.3 million year on year.
Over the course of 2020, Gold Road sold 126,434 ounces of gold, achieving revenue of $294.7 million. That's up 291% from the $75.4 million in revenue reported for 2019.
The company reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of $170.6 million compared to a $9.8 million EBITDA loss in 2019.
Gold Road reported a consolidated net profit after tax (NPAT) of $80.8 million. In 2019 NPAT was a $4.7 million loss. Earnings per share (EPS) came in at 9.2 cents, while the gold producer achieved free cash flow of $817 per ounce of production for the year.
Commenting on the full-year results, Gold Road CEO Duncan Gibbs said:
The year 2020 was Gold Road's first full year as a producer… Following 18 months of production experience, in February 2021 we announced our 3 year outlook at Gruyere that sees the operation lifting from 258,173 ounces in 2020 to a sustainable 350,000 ounces by 2023 (100% basis).
Gruyere is a Tier-1 gold mine and we are only beginning to unlock its potential. Gruyere and Gold Road have experienced no material production impacts as a result of the COVID-19 crisis.
The company paid a maiden dividend of 1.5 cents for the half-year through to 31 December, for a half-year yield of 1.4%.
Gold Road share price snapshot
Over the past 12 months, the Gold Road share price has fallen by more than 12%. That compares to a 17% gain on the All Ordinaries Index (ASX: XAO).
With the gold price down 12% so far in 2020, year to date the Gold Road Resources share price is down nearly 18%.
