PERTH (miningweekly.com) – ASX-listed gold miner Gold Road Resources this week reported lower gold production and revenues for the six months to June, having warned shareholders previously of lower production from the Gruyere joint venture (JV), in Western Australia.

Gold Road announced revenues of A$129.6-million from the sale of 60 252 oz during the six months ending June, compared with the A$135.1-million generated in the previous corresponding period, from the sale of 60 400 oz of gold.

The JV operation produced 119 345 oz of gold for the first half of 2021, compared with the 131 460 oz delivered in the previous corresponding period.

“Gruyere has now produced 476 648 oz since first pouring gold in June 2019. Despite a one-off production interruption in the June quarter, Gruyere continued to deliver a strong half-year profit and earnings before interest, tax, depreciation and amortisation (Ebitda) to Gold Road, and the board has determined to pay a dividend for the six months to June of 0.5c per share,” said Gold Road MD and CEO Duncan Gibbs.

Ebitda for the six months to June was recorded at A$59.6-million, compared with the A$61-million reported in the same period last year, with Ebitda margins rising from 45% to 46% in the same period.

Gold Road reported a consolidated net profit after tax of A$119.1-million, compared with the A$23.4-million in the previous corresponding period, with operating cash flows for the six months under review declining from A$59.6-million to A$46.3-million.

“The outlook for the second half of 2021 is stronger at Gruyere, in line with our 2021 guidance and three-year outlook that sees the operation lifting production to a sustainable 350 000 oz by 2023. The already extensive mine life looks set to grow further with our reserve update later this year,” said Gibbs.

“Geotechnical work on this reserve update has shown the potential to steepen fresh rock openpit slopes by up to 4^o which should have a favourable impact on mine life.

“During the half-year, we also began to unlock the potential for further extensions beneath the openpit resource at Gruyere, with Gold Road reporting a 50% attributable maiden underground inferred mineral resource, and the Gruyere JV commencing a programme of deeper drilling that has returned some promising initial results. I am also very encouraged by our exploration progress at our 100%-owned Yamarna project and expect further headway here in the coming 6 to 12 months as we look for a meaningful discovery.”