PERTH (miningweekly.com) – Increased gold production and higher gold prices have resulted in ASX-listed Gold Road Resources reporting solid interim results for the six months ended June.

The gold miner on Tuesday reported that the group had achieved a consolidated net profit after tax of A$39.9-million for the half-year, up from the A$19.1-million achieved in the previous corresponding period, while earnings before interest, taxes, depreciation and amortisation increased from A$59.6-million to A$100-million in the same period.

Gold sales revenue in the six months to June reached A$196.5-million, up from the A$129.6-million achieved in the first half of the 2021 financial year, as gold sales increased from 60 525 oz to 79 606 oz, and average gold prices rose from A$2 141/oz to A$2 443/oz.

Gold Road told shareholders that at the end of June, the company’s hedge totalled 15 980 oz at an average price of A$1 832/oz with monthly deliveries through to November 2022.

The Gruyere joint venture with Gold Fields celebrated three years of gold production at the end of June, having produced 760 644 oz since first pouring gold in 2019. This was delivered at an average all-in sustaining cost of A$1 373 per attributable ounce to Gold Road for the period.

Over the six months to June, Gruyere mined a total of 5.3-million tonnes of ore at an average grade of 1.14 g/t for 193 793 contained ounces. Total material movement and the rate of ore mining continued to advance ahead of process plant requirements with ore stockpiles growing to 5.9-million tonnes at 0.74 g/t gold.

Mined grades lifted to record highs as mining advanced through higher grade zones in the deeper sections of the Stage 2 pit, along with the mining of higher grade oxide and fresh ore from the Stage 3 pit.

Gold Road noted that total ore processed for the six months to June was a record 4.6-million tonnes at a record head grade of 1.20 g/t gold, and a gold recovery of 91.1% for a record 156 811 oz of gold produced.

Production rates steadily increased during 2022 as expected, largely owing to improving head grades and an improvement in plant utilisation owing to reduced scheduled and unscheduled maintenance downtime.

Gold Road in January released annual guidance for 2022 of between 150 000 oz and 170 000 oz at an attributable all-in sustaining cost of between A$1 270/oz to A$1 470/oz. This guidance is in line with Gruyere’s production outlook that shows an increase in annual production to a sustainable 350 000 oz/y of which 175 000 oz/y would be attributable to Gold Road, by 2023.