S&P/ASX 200 Index (ASX: XJO) gold share Gold Road Resources Ltd (ASX: GOR) is shining bright again today.
Gold Road shares closed yesterday trading for $3.18. In morning trade on Thursday, shares are changing hands for $3.20 apiece, up 0.6%. This sees the Gold Road share price up 73.9% since this time last year.
For some context, the ASX 200 is up 0.4% today and up 6.7% over the past 12 months.
Here's what's catching ASX investor interest today.
ASX 200 gold share lifts on record gold sales prices
Investors are bidding up Gold Road shares today following the release of the miner's June quarterly update.
The ASX 200 gold share reported its Gruyere gold mine – Gold Road's 50:50 joint venture with Gold Fields Ltd (NYSE: GFI) – produced 72,980 ounces of gold (on a 100% basis). That's up from 71,226 ounces in the March quarter.
On the cost front, the all-in sustaining cost (AISC) came in at AU$2,928 per attributable ounce over the three-month period. That also sees costs up, with AISC in the March quarter of AU$2,658 per attributable ounce.
Looking ahead, the miner reiterated its expectations that Gruyere's full-year production will be at the lower end of guidance of 325,000 ounces to 355,000 ounces of gold. (That equates to 162,500 ounces to 177,500 ounces of gold attributable.)
Management also expects AISC to be around the top end of guidance of between AU$2,400 to AU$2,600 per ounce.
In other core metrics, the ASX 200 gold share reported quarterly gold sales of 37,741 ounces at a record average sales price of AU$5,131 per ounce.
And free cash flow generated for the June quarter increased to $44.7 million, up from $34.1 million in the prior quarter.
Cash and equivalents increased by 18.8% over the quarter to $242.1 million.
What's happening with the Gold Road acquisition?
The June quarter also saw the ASX 200 share receive a takeover bid from Gold Fields on 5 May.
Under the proposal, Gold Road shareholders will receive $2.52 per Gold Road share (less any special dividend paid prior to implementation of the scheme). Shareholders will also get a variable cash consideration equal to the full value of their proportionate holding in Northern Star Resources Ltd (ASX: NST).
Gold Road holds 49,258,234 shares in Northern Star.
Management said they intend to declare a fully franked special dividend should the scheme – which remains subject to various conditions – become effective.
The Gold Road board said they continue to unanimously recommend that shareholders vote in favour of the scheme, in the absence of a superior proposal.
