CAPITAL MARKETS

Gold Road maintains returns despite profit drop

GOLD Road Resources maintained profitability for 2022, despite production issues at its 50%-owned Gruyere operation in Western Australia.

Staff reporter
The Gruyere gold mine in WA

The Gruyere gold mine in WA

Revenue of A$274.8 million was about $20 million lower from the sale of 124,335 ounces of gold at an average realised price of $2210 an ounce, compared to $2330/oz in 2020.

EBITDA fell to $120.2 million from $170.6 million, while the margin dropped to 44% from 58%.

Operating cashflow was $89.2 million, while free cashflow was $22.1 million.

Gold Road's full-year net profit after tax was $36.8 million, down from $80.8 million a year earlier.

The company declared a final fully franked dividend of 0.5c per share, taking full-year dividends to 1c per share.

Gold Road remains debt-free and had $131.5 million cash at the end of 2021.

Shares in the company dropped 1.2% to $1.675, giving it a market capitalisation of $1.4 billion.

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