Gold Road doubles half-year profit

Number of records for gold miner

The Gruyere gold mine in WA

The Gruyere gold mine in WA

The company owns 50% of the Gruyere gold mine in Western Australia in joint venture with Gold Fields.

Revenue was A$196.5 million off the back of record half-year gold sales of 79,606 ounces.

Operating cashflow was $69.5 million, while free cashflow was $44.6 million.

EBITDA was up 40% to a record $100 million at a strengthened margin of 51%.

Gold Road reported a consolidated net profit after tax of $39.9 million, more than double the $19.1 million profit reported for the first half of 2021.

The company declared a fully franked 1c per share interim dividend, double the 0.5c payout this time last year.

Managing director Duncan Gibbs said it was a strong first half of 2022, despite challenging global operating conditions.

"Gruyere achieved record production for the half year in line with our outlook of growing production through 2022 and 2023," he said.

"The record gold production resulted in strong free cash flow for Gold Road and a record net cash position."

The debt-free company closed the half with record cash and short-term deposits of $160.3 million.

Gold Road reaffirmed full-year guidance of 300,000-340,000oz of gold (100% basis) at all-in sustaining costs of $1270-1470 an ounce.

The company has four drill rigs operating at the 100%-owned Yamarna project and 50%-owned Golden Highway project, and one operating regionally.

In June, Gold Road closed the takeover of DGO Gold, giving it a 20% stake in gold developer De Grey Mining.

"The successful completion of the DGO Gold takeover in June now provides Gold Road with an even more exciting platform for growth," Gibbs said.

Shares in Gold Road were up 0.4% to $1.26, giving the company a market capitalisation of $1.35 billion.

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