Record after-tax profit for Gold Road Resources in 2023 calendar year

Neil WatkinsonKalgoorlie Miner
Gold Road Resources managing director and chief executive Duncan Gibbs.
Camera IconGold Road Resources managing director and chief executive Duncan Gibbs. Credit: Carwyn Monck/Kalgoorlie Miner

Gold Road Resources posted record calendar year gold sales revenue and net profit after tax for 2023 despite production issues continuing to hamper the Gruyere mine 160km north-east of Laverton.

Gold Road last Friday said its net profit after tax was $115.7 million in 2023, up from $63.7m in 2022.

The company, which operates Gruyere in a 50:50 joint venture with South African giant Gold Fields, had a net profit of $36.8m in 2021.

Gold Road on Friday said revenue from gold sales for the full year totalled $472.1m, up from $382.9m in 2022.

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Fully unhedged gold sales of 161,472 ounces was an improvement on 156,426oz in 2022, with the average realised price of $2924/oz also better than the $2448/oz of 2022.

The company said earnings before interest, tax, depreciation and amortisation was also a record, at $250.1m, compared with $180.8m in the previous year, with the margin improving to 53 per cent from 47 per cent.

And operating cash flow was a calendar year record of $233.6m, up from $132.2.m in 2022, while free cash flow was a record $140.2m, up from $77.5m.

Gold Road said it ended the year with cash and short-term deposits of $143.8m, up from $74.4m on December 31, 2022, after cash outflows of $63.4m related predominately to the strategic investment in De Grey Mining, and cash dividend payments of $15.5m

Gold in circuit, dore and bullion on hand was estimated at $5.4m.

The company said Gruyere had produced 1,240,464oz since first gold was poured in June 2019.

However, it said 2024 production guidance was 300,000oz-335,000oz.

When reporting its 2022 results, Gold Road said it was aiming to grow annual production to 350,000oz from 2023.

However, it produced only 321,984oz last year, prompting managing director and chief executive Duncan Gibbs last month to deliver a serve to mining contractor MACA, which had been hampered by a “personnel problem”.

“It’s not just numbers, it’s having the right skills, particularly when you’re getting into the maintenance areas and blast crews,” Mr Gibbs said.

“We were down effectively an entire fleet over the Christmas and new year period.”

Mr Gibbs also suggested Gold Fields was not getting the results out of Gruyere that it should be.

Gruyere produced 314,647oz in 2022, and 246,529oz in 2021.

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