The news: Gold Road Resources shares slipped on the ASX after the Perth-based gold miner reported a hit to half-year profit, as heavy rainfall in March and April impeded output at its Gruyere mine in Western Australia.
The numbers: Gold Road shares fell 4.4% to $1.74 by 2:10pm AEST.
The miner reported net profit after tax of $43.1 million, down 12.6% compared to the prior corresponding period. EBITDA lowered 28.4% year on year to $94.2 million while revenue from gold sales fell 17.3% to $211.7 million.
Last month, Gold Road reduced its full-year production guidance to between 290,000 and 305,000 ounces, from its previous guidance of 300,000 to 335,000 ounces. All-in sustaining cost guidance was revised upwards to between $2,050 and $2,200 per ounce, from the prior range of $1,900 to $2,050 per ounce.
Gold Road declared an interim dividend of 0.5 cents per share, down from 1.2 cents at the same point last year.
The context: Gold Road managing director and CEO Duncan Gibbs described the first half of FY24 as “challenging” with gold production and exploration efforts impacted by regional rain events that forced a seven-week closure of the main access to its Gruyere mine in Western Australia.
However, Gibbs noted that Gold Road benefitted from record high gold prices in the six months to June.
What they said: “Gruyere is now well set to deliver against our expectations of this high-quality orebody,” Gibbs said.
“I expect to see a ramp-up in gold production through the remainder of 2024 with a sustained improvement in mining rates to support higher levels of gold production in future years.”
