The Gold Road Resources Ltd (ASX: GOR) share price is deep in negative territory today. This comes after the gold mining company provided a quarterly production update to the ASX.
At the time of writing, Gold Resources shares are down 7.25% to $1.32.
Let's take a look at how the company has performed for the last 3 months.
How did Gold Resources perform for the quarter?
Investors are heading for the hills, selling Gold Resources shares following a disappointing production update.
According to its release, Gold Resources announced it will fail to meet its gold production targets at the Gruyere Gold Mine.
The company advised that disruptions caused to processing plant operations are to blame. A mill feed conveyer belt became torn, thus requiring specialist personnel and equipment to replace the part. While the milling circuit was shut down to make the changeover, a coupling on the ball mill stopped working. As a result, processing rates temporary slowed down, with only the SAG in operation.
Repairs were made to the ball mill last Friday, with the processing plant returning to normal loads during the weekend. Gold Resources noted that it is currently investigating the cause of the issue to prevent any future occurrence.
For the June quarter, the company is expecting gold production to stand between 52,000 ounces and 55,000 ounces. All-in Sustaining Costs (AISC) is estimated to be in the range of $1,675 to $1,800 per ounce of gold.
Looking at the 2021 calendar year, Gold Resources is projecting to achieve gold production at the lower end of its guidance. The company is forecasting 260,000 to 300,000 ounces of gold with an AISC of $1,325 to $1,475. Higher maintenance and labour costs coupled with the lower June quarter production are said to be the main contributing factors.
Gold Resources share price summary
In the past year, Gold Resources shares have trodden almost 20% lower. However, in 2021, the company's share price is relatively flat.
Gold Resources has a market capitalisation of roughly $1.1 billion, with more than 880 million shares on its registry.
