Australian (ASX) Stock Market Forum

GOR - Gold Road Resources

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GOR is slowly clawing its way back.

It’s fall from just over two dollars to $1.39 on basically a increase in AISC and a labour shortage was a bit of a knee jerk reaction.
The good things about this company it has a long life mine, no debt, no hedging, exposure to DEG, pays a small dividend.
Cash and equivalents on books still an impressive $150million.
There is further exploration and drilling to commence in new areas.
If the gold price continues to grow I can see GOR follow it.
The share price has recovered to $1.64
 
Labour shortage was easily fixed and happy to buy the dip.

GOR1.PNG
 
The company revealed setbacks to planned production due to last week’s record rainfall in parts of the WA Goldfields .... Gold Road (ASX:GOR) disclosed that its 50% owned Gruyere mine faced curtailed work in the open pit for a week or more, affecting production for the March quarter but maintaining guidance for the June 30 year, albeit at the lower end of the forecast range.
 
RESPONSE TO MEDIA SPECULATION

Gold Road Resources Limited (Gold Road or the Company) notes media speculation in The Australian regarding the potential acquisition of an interest in the Greenstone Gold Mines in Canada.
Gold Road confirms its participation in a sale process conducted by Orion Resource Partners (USA) LP for Greenstone Gold Mines.

This participation remains on going and Gold Road has not entered into any definitive acquisition agreements with respect to Greenstone Gold Mines.
Gold Road continues to evaluate strategic opportunities and will only pursue acquisitions if it is in the best interests of its shareholders. The Company will keep the market informed in accordance with its continuous disclosure obligations.

This release was authorised by the Managing Director and CEO, Duncan Gibbs.

For further information, please visit www.goldroad.com.au or contact:

i hold GOR
 
divs4ever said:
RESPONSE TO MEDIA SPECULATION

Gold Road Resources Limited (Gold Road or the Company) notes media speculation in The Australian regarding the potential acquisition of an interest in the Greenstone Gold Mines in Canada.
Gold Road confirms its participation in a sale process conducted by Orion Resource Partners (USA) LP for Greenstone Gold Mines.

This participation remains on going and Gold Road has not entered into any definitive acquisition agreements with respect to Greenstone Gold Mines.
Gold Road continues to evaluate strategic opportunities and will only pursue acquisitions if it is in the best interests of its shareholders. The Company will keep the market informed in accordance with its continuous disclosure obligations.

This release was authorised by the Managing Director and CEO, Duncan Gibbs.

For further information, please visit www.goldroad.com.au or contact:

i hold GOR
Click to expand...
Thanks for that news, obviously not well received with the price dropping 12 cents.
Greenstone has four properties.
Located in the Geraldton-Beardmore Greenstone Belt in Ontario, Canada, the properties are made up of several claim groups having a cumulative strike length of more than 105 kilometres along the district's most prospective geological structures. The properties have excellent access to infrastructure, including the Trans-Canada Highway (Canada's national highway) and the TC Energy’s natural gas pipeline, which extends along its length.
Orion Mine Finance own 40% of Greenstone and are in partnership with Eqinox Gold Corp, the release from GOR does not mention anything about Eqinox.
Nothing happening there so it will be a long while off before they reap any benefit if they ever do.
I guess that they have do something with all that cash.
 
Excerpt from Greg Canavan's note to subscribers today.
'Fat Tail Investment Advisory'
He also comments on EVN (negatively), AWC (which he made a buy quite a while ago) and why he's not currently recommending gold stock buys (they're no longer contrarian)

Gold Road to raise equity?

While I’m on gold, just a quick update on GOR.

It revealed this week that it was potentially looking at buying a 40% stake in Canadian miner Greenstone Gold. The price tag is reportedly around $1 billion.

When news of this hit, the share price fell 7% on fears of a large capital raising.

This is certainly a concern. GOR’s share price has underperformed this year due to labour availability issues impacting costs and production. In my view, the share price trades below a reasonable estimate of intrinsic value.

Issuing shares below intrinsic value is not a value-enhancing move.

However, GOR has a reasonably good record of creating shareholder value over the years. So you should give it the benefit of the doubt. It has grown its equity value from 38 cents per share in 2019 to an estimated 94 cents per share by the end of this financial year.

That’s an annual compound growth rate of 19.8%. What’s more, it hasn’t done so by increasing debt along the way. It’s in a healthy net cash position.

This strong balance sheet gives it the option to fund a good portion of any transaction with debt. That means fewer shares issued via a capital raising. But the cost of that debt wouldn’t be cheap in this market.

The key in any corporate transaction is to get an equivalent amount of value in return for the cost you incur. It remains to be seen whether this deal will be completed.

Held
 
finicky said:
Excerpt from Greg Canavan's note to subscribers today.
'Fat Tail Investment Advisory'
He also comments on EVN (negatively), AWC (which he made a buy quite a while ago) and why he's not currently recommending gold stock buys (they're no longer contrarian)

Gold Road to raise equity?

While I’m on gold, just a quick update on GOR.

It revealed this week that it was potentially looking at buying a 40% stake in Canadian miner Greenstone Gold. The price tag is reportedly around $1 billion.

When news of this hit, the share price fell 7% on fears of a large capital raising.

This is certainly a concern. GOR’s share price has underperformed this year due to labour availability issues impacting costs and production. In my view, the share price trades below a reasonable estimate of intrinsic value.

Issuing shares below intrinsic value is not a value-enhancing move.

However, GOR has a reasonably good record of creating shareholder value over the years. So you should give it the benefit of the doubt. It has grown its equity value from 38 cents per share in 2019 to an estimated 94 cents per share by the end of this financial year.

That’s an annual compound growth rate of 19.8%. What’s more, it hasn’t done so by increasing debt along the way. It’s in a healthy net cash position.

This strong balance sheet gives it the option to fund a good portion of any transaction with debt. That means fewer shares issued via a capital raising. But the cost of that debt wouldn’t be cheap in this market.

The key in any corporate transaction is to get an equivalent amount of value in return for the cost you incur. It remains to be seen whether this deal will be completed.

Held
Click to expand...
The Money of Mine lads had an interesting take on these yesterday, worth a listen if you hold.

I don't have any.
 
Gold Resources have pulled out of the sales process with Orion so the Greenstone deal is off.
A sigh of relief from myself.
There could well have been a collective sigh of relief from shareholders.
Slight recovery from the big fall to $1.63 today.
 
I think it’s a pretty good move, they had the cash, a lot smarter then the previous thoughts of that frozen land.
 
Sean K said:
Hang on, didn't they announce they had all of their entitlement?

View attachment 176596
Click to expand...
they ( GOR ) might wait for lower ( later on )

or .. there might be some other tempting opportunities , elsewhere

( BHP bought a lot of fragmented interests in juniors when they acquired OZL , maybe some of them are up for grabs )
 
Sean K said:
Hang on, didn't they announce they had all of their entitlement?

View attachment 176596
Click to expand...
Well they state they took up all their entitlement, so I would rather beli3ve the company, I think she has her knickers in a twist trying to relate owning 19.9% to the entitlement and maintaining that amount.
Obviously he never graduated in applied mathematics.
 

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