• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Fat Tail Daily

Investment Ideas From the Edge of the Bell Curve

  • Menu
    • Commodities
      • Resources and Mining
      • Copper
      • Gold
      • Iron Ore
      • Lithium
      • Silver
      • Graphite
      • Rare Earths
    • Technology
      • AI
      • Bitcoin
      • Cryptocurrency
      • Energy
      • Financial Technology
      • Bio Technology
    • Market Analysis
      • Latest ASX News
      • Dividend Shares
      • ETFs
      • Stocks and Bonds
    • Macro
      • Australian Economy
      • Central Banks
      • World Markets
    • Small Caps
    • More
      • Investment Guides
      • Premium Research
      • Editors
      • About
      • Contact Us
  • Latest
  • Fat Tail Series
  • About Us
Latest

Gold Road Resources [ASX:GOR] Shares Drop on Reduced Production Guidance

Like 0

By Fat Tail Daily, Thursday, 22 June 2023

Gold Road Resources announced its lowered annual forecast from the WA Gruyere Gold Mine project after its shares tanked by 8.45%, although it retains a positive long-term outlook.

Shares of Gold Road Resources [ASX:GOR] tanked by 8.45% today, trading at $1.59, after lowering production guidance from the WA Gruyere Gold Mine project.

The mid-tier Australian gold producer has seen incredible growth in the past year, remaining buoyant despite depressed gold prices — with shares up by 32.23% in the last 12 months.

With commodity prices and interest rates up, Gold Road has managed to stay ahead of the competition, performing 17% above the sector this year.

But with disappointing news today, what’s next for the company?

ASX:GOR Gold Road Resources stock chart news 2023

Source: TradingView

Rain on Gold Road Resources parade

Gold Road is projecting its annual production from Gruyere mine to be between 320,000–­­350,000 ounces — down from 340,000–370,000 ounces.

The company’s statement today sought to explain the shortfall, commenting:

‘Reliability and utilisation of the production drills and availability of blasting resources were below expectations for the quarter.

‘These factors, together with a recent significant rain event, have negatively impacted ore and waste mining at Gruyere.’

Gruyere mine is a 50:50 joint venture between Gold Fields and Gold Road Resources. The project began in 2016 when Gold Road sold 50% to Gold Fields for $350 million — plus a 1.5% Net Smelter Return Royalty.

Under the agreement, Gold Fields managed the operation at Gruyere while Gold Road retained responsibility for the exploration of the joint venture tenements.

The Gruyere mine sits approximately 1,200 kilometres from Perth in WA and has been producing for three and a half years — totalling approximately 918,500 ounces.

With an MRE of 6.69 million ounces, it stands as Australia’s seventh largest gold mine with a project mine life of 10 years.

Gold Road Resources’ outlook

While the short-term share price has tanked after the latest news, the outlook for Gold Road is still positive long-term.

Gold is currently around values seen in March last year. Little momentum has been found since the top spot it hit in early May this year — at $2,015 per ounce.

But with market instability on the horizon, many experts are bullish on gold long-term as central banks ramp up their purchasing to shore up reserves and hedge against inflation.

ASX:GOR Gold Road Resources Quarterly Demand

Source: ICE Benchmark, World Gold Council

With a longer outlook, Gold Road may appear as a good buying opportunity for some investors for a company that has provided value in the past.

On paper, the production requires minimal growth capital, offering good margins at the current gold prices.

The life-of-mine has also been reaffirmed to 2032, and it appears Gruyere is on track to deliver two million ounces during 2025.

However, past performance is no indicator of future performance.

So, what could trip Gold Road moving forward?

On 13 June, Gold Road announced the extension of its open-pit mining contract with MACA to continue its mining services for the next five years — covering drill and blast, load and haul, crushing and screening. If further issues arise on the site, the relationship could sour and a lengthy disentanglement could occur.

A recovery plan is currently being developed with contractor MACA that will include bringing in additional equipment to boost production. However, until that is developed, the likelihood of costs rising is high.

Gold Road has said they will review AISC per ounce for their next quarterly report.

The ball may have been dropped by Gold Road, but what is stopping you from getting into gold?

How to buy and store gold in Australia in 2023

In a world where people are feeling more pressure in their finances than ever, this makes it even more important to find ways to build and protect your wealth.

How are you meant to do this with the increasing interest rates, sky-high energy bills and general dismal high cost-of-living environment?

Everyone is in the same boat right now.

It’s those emotions that are holding a lot of budding investors back from some real potential – and that’s often the best time to get into a market.

Fat Tail Investment Research’s gold bug Brian Chu, editor of Gold Stock Pro and host of The Bullion and Bordeaux Hour, has some ideas for you to explore.

Click here for Brian’s latest gold report.

 

Regards,

Fat Tail Commodities

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Comments

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments
Fat Tail Daily

Fat Tail’s Premium Subscriptions

Publication logo
Fat Tail Investment Research

Latest Articles

  • An oil price spike is in the offing now
    By Callum Newman

    Here’s one way to stop any speculative fever developing in the stock market. Get a big war going. That’s a real risk right now after the US attacks on Iran.

  • The Shopping Revolution No One Saw Coming
    By Charlie Ormond

    Amazon just sacrificed its most sacred business principle. You should be asking why.

  • While Markets Snooze, This Microcap is Flying
    By Murray Dawes

    While markets tread water due to the Middle East conflict, Murray and Callum go hunting for opportunities at the tiny end of the market. They find a great one that is ready to run.

Primary Sidebar

Latest Articles

  • An oil price spike is in the offing now
  • The Shopping Revolution No One Saw Coming
  • While Markets Snooze, This Microcap is Flying
  • Commodity Cycle: Are You Seeing It Now?
  • From geek to God: the trillion dollar maven

Footer

Fat Tail Daily Logo
YouTube
Facebook
x (formally twitter)
LinkedIn

About

Investment ideas from the edge of the bell curve.

Go beyond conventional investing strategies with unique ideas and actionable opportunities. Our expert editors deliver conviction-led insights to guide your financial journey.

Quick Links

Subscribe

About

FAQ

Terms and Conditions

Financial Services Guide

Privacy Policy

Get in Touch

Contact Us

Email: support@fattail.com.au

Phone: 1300 667 481

All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

Fat Tail Logo

Fat Tail Daily is brought to you by the team at Fat Tail Investment Research

Copyright © 2025 Fat Tail Daily | ACN: 117 765 009 / ABN: 33 117 765 009 / ASFL: 323 988