Today, Gold Road Resources [ASX:GOR] released its preliminary production update for the March 2022 quarter.
Gold Road is a mid-tier gold producer with a 50% stake in the Gruyere Gold Mine in Western Australia. Gruyere is a 50-50 joint venture with Gold Fields Ltd.
Gold Road’s gold production rises
Gold Road’s total gold sales for the quarter came in at 35,080 ounces at an average price of AU$2,434 per ounce. This also included delivering 8,700 ounces at an average price of AU$1,911 per ounce into forward sales contracts.
During the quarter, Gruyere produced 71,135 ounces of gold, up from the 67,813 ounces it produced in December. This was in line with expectations.
Gruyere processed a total of 2.1 Mt of ore at a head grade of 1.17 grams per tonne of gold, with gold recovery coming in at 91%.
Gold Road said it ended the quarter with $139.9 million in cash and cash equivalents, and no debt.
What’s next for Gold Road Resources?
The company expects production rates will increase throughout 2022 to be in line with their yearly guidance of 300,000–340,000 ounces.
Gold Road Resources recently made a takeover offer for DGO Gold [ASX:DGO] for $308 million in shares. If it goes through, it will give GOR a 14.4% stake in De Grey Mining, the owner of the 9 million ounce Mallina Gold Project.
As Gold Road’s Managing Director Duncan Gibbs said:
‘The acquisition of DGO aligns with Gold Road’s strategy to invest in high quality gold projects in tier one jurisdictions. In particular, Gold Road views the substantial shareholding in the owner of the high quality Hemi Gold Discovery, combined with our 50% ownership of the Gruyere Gold mine, as an exciting opportunity to participate in two of the most significant gold discoveries in Western Australia this century.’
At the time of writing, shares for Gold Road Resources are trading at $1.50, down 0.67% from yesterday’s close.
Investing in gold stocks is one way to get some exposure to the yellow metal. Another is to invest in real physical gold. Check out our free report on ‘How to Buy and Store Real Gold in Australia in 2022’.
Regards,
Selva Freigedo,
For The Daily Reckoning Australia
