Up 111% in a year, why is the Gold Road share price slipping on Monday?

ASX 200 investors are bidding down Gold Road shares today. But why?

| More on:
A boy holds a gold bar with a surprised look on his face.

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Gold Road Resources Ltd (ASX: GOR) share price is edging lower today.

Shares in the S&P/ASX 200 Index (ASX: XJO) gold stock closed Friday trading for $3.44. In morning trade on Monday, shares are changing hands for $3.43 apiece, down 0.2%.

For some context, the ASX 200 is down 0.6% at this same time.

Despite today's minor dip, the Gold Road share price remains up 111% since this time last year. And that's not including the fully franked 1.5 cent per share final dividend the miner paid eligible shareholders on 31 March.

Here's what's happening today.

Gold Road share price dips on guidance update

ASX investors are pressuring the Gold Road share price following an update on the miner's production and cost guidance for the full 2025 calendar year at its Gruyere JV gold mine, located in Western Australia.

The mine is a 50:50 joint venture with Gruyere Mining Company, a member of the Gold Fields group (Gold Fields), which manages and operates the mine.

At its half-year results release on 29 August, the ASX 200 gold stock had reported on issues with its primary crusher maintenance, the failure of conveyor belts, and lower than anticipated ore from the mine over the six-month period.

That now looks like it will impact the company's full-year gold production.

Management said that year-to-date gold production to 31 August of 196,554 ounces (on a 100% basis) was lower than they'd expected.

"Mining is currently at an annualised rate of approximately 68 million tonnes with a planned ramp-up of total movement rates progressing more slowly than anticipated," the miner said.

With this in mind, Gold Road now expects 2025 annual gold production to be between 310,000 ounces and 320,000 ounces (150,000 ounces to 160,000 ounces attributable). That's down from the previous guidance of between 325,000 ounces and 355,000 ounces (162,500 ounces to 177,500 ounces attributable).

The Gold Road share price also isn't getting any help today from the company's revised cost guidance.

Despite moderately lower total mining expenditure, the lower gold production forecast led management to increase their full-year 2025 all-in sustaining cost (AISC) guidance to be between $2,600 and $2,800 per ounce. That's up from the previous AISC cost guidance of between $2,400 and $2,600 per ounce.

AISC per ounce averaged $2,794 per attributable ounce for the first six months of 2025.

For some idea of why the Gold Road share price has been racing higher this year, for the six months to 30 June, the miner reported a group consolidated net profit after tax (NPAT) of $107.0 million, up 148% year on year.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Gold

A woman blowing gold glitter out of her hands with a joyous smile on her face.
Gold

Watch this ugly duckling ASX 200 gold stock in 2026

Some brokers see a further 50% upside for the soaring gold share.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Gold

Why are Northern Star shares crashing 10% today?

A disappointing update is weighing heavily on this gold miner's shares.

Read more »

A man leaps from a stack of gold coins to the next, each one higher than the last.
Gold

Here's what I think investors in Northern Star shares can look forward to in 2026

Northern Star shares surged 73% in 2025. Here’s what investors can expect from gold prices, dividends and growth in 2026.

Read more »

gold, gold miner, gold discovery, gold nugget, gold price,
Gold

Is it too late to buy these two highflying ASX gold stocks?

Let's find out.

Read more »

A man in a business suit looks at a gold phone with his head in an exploding cloud of gold dust.
Gold

Gold stars: 5 best ASX 200 gold shares of 2025

The best share price gains were seen among the small and mid-cap gold stocks.

Read more »

Gold bars and Australian dollar notes.
Gold

ASX gold stock tumbles on big merger news

What did the gold miner announce today? Let's find out.

Read more »

A woman holds a gold bar in one hand and puts her other hand to her forehead with an apprehensive and concerned expression on her face after watching the Ramelius share price fall today
Gold

What on earth is going on with ASX 200 gold stocks like Northern Star today?

Investors are punishing ASX 200 gold stocks today. But why?

Read more »

A few gold nullets sit on an old-fashioned gold scale, representing ASX gold shares.
Gold

Can surging ASX 200 gold shares like Evolution Mining keeping smashing the benchmark in 2026?

Most ASX 200 gold shares, like Evolution Mining, have doubled investors’ money or more in 2025. What can we now…

Read more »