Australian (ASX) Stock Market Forum

GOR - Gold Road Resources

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I'm not taking a strong interest in GOR since I've not added to my 5,000 shares, but some of the articles and commentary elsewhere have seeded doubts. As said, I haven't looked into it seriously, so just second hand.

But it's said that De Grey's reserve is refractory ore and the plan is to incorporate a high pressure oxygenation (POX) stage into the processing circuit. It's going to be a more complex plant than most and it'll be expensive?

Also the management has come under sustained criticism on forums for not using the heavy free cashflow from Gruyere to the benefit of shareholders. The management has an easy 'lifestyle' gig because they don't have operational responsibility for Gruyere for their 50% ownership and they have spent a lot of the passive income on ineffectual exploration endeavours. True? I don't know, but I will be interested to see what they are paying themselves for a seemingly untaxing job - when I can be bothered.

I don't see DEG as past the orphan stage at all once they have settled funding: they have to build a complex plant in time and within budget, ramp up and demonstrate effective production. Dacian Gold was into production with a shiny new plant but it was demonstrated to be smoke and mirrors and collapsed.

Held
Might add some time/ pbly not though
 
DEG has around 10m ozs in the ground, I do not think funding it will be issue, delays may occur around construction and achieving production targets like all mining companies.
I thought it was a good move for GOR shareholders when they acquired DGO which gave them around 15% of DEG which now stands at 19%.
I don’t think we can term them a lifestyle company without comparing to other miners with the same MC, if salaries and fees are substantially higher then questions may need to be asked.
Performance has been pleasing so I won’t be making waves.
 
brerwallabi said:
Performance has been pleasing so I won’t be making waves.
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Well not to get into it too much until I bother to confirm for myself what is rumour at my level, but on the face of it I don't see why anyone would compliment GOR management on performance. Other than discover and define the deposit where is performance? They did not build the mine and plant, they are not active partners in the mining and they have not converted the large passive cashflow into notable new discovery.

Held
 
The run up to $2.00 was the performance that impressed, its recent fall shows the risk that’s involved in any miner.
Can we blame management for a labour shortage and having an interest in an acquisition?

I continue to hold and look forward to seeing it reach the two mark again.
 
GOR’s share of De Grey falls to 17.85% from 19.99% after DEG’s credit raising, still a substantial amount.
How much more money DEG will need in the future I can’t guess at, nothing ever goes to plan in the mining industry.
 
A couple of slides from GOR’s investor presentation released today on 2023 performance compared to 2022 and production guidance for 2024 calendar year.
Looks like everything back on track after the labour shortage early year and that substantial rain event that hit parts of WA.
 

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bettamania said:
Everybody hate this GOR especially all BO system traders
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i don't HATE GOR , i just don't love it enough to buy more at the current prices

however maybe my patience will be rewarded and the share price will return to attractive levels again

sub $1.20 will have me considering IF to buy more
 
bettamania said:
Everybody hate this GOR especially all BO system
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What’s the issue with the hatred of GOR.
I don’t trade it I hold it, I think if it meets its production targets and AISC doesn’t run away it could achieve $2.00 again.
I can understand the frustration that same may have trading GOR with its frequent sudden drops.
 
brerwallabi said:
What’s the issue with the hatred of GOR.
I don’t trade it I hold it, I think if it meets its production targets and AISC doesn’t run away it could achieve $2.00 again.
I can understand the frustration that same may have trading GOR with its frequent sudden drops.
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lived through a similar phase with OZ Minerals , took a lot of faith , the courage to buy into the slides , etc etc eventually got myself into a very nice position .. and along came BHP and all i got was a wad of cash ( and more issues in BHP )

hopefully GOR will endure in the long term
 
Q4 out.
I don't know, but what I drew from it was a pretty massive 'Corporate All In Cost' (CAIC) which they try to attribute to a two week rain event in April, but also in the report they imply a good May in which production recovered.

Seems more likely that the much higher strip ratio and also lower recoverability is the more likely cause. I do remember that months ago they dropped a bomb about higher strip in future.

They are significantly ramping up tonnage of mining however with two new pit stages coming online, which lf I read right looks like tripling the tonnage rate to be mined?

They have 100% owned Yamarna mine project to add in the future - vaguely cal 2026 for mine readiness. Resource of 0.5m ozs there @ 2.44g/t within 50k straight line from Gruyere plant.

Nice investment p'f at $478m which is mostly the De Grey holding.

So sort of a mixed bag with higher leverage to gold price (being high cost). Rather be in it than RRL anyway.

Held

Screenshot_20240731_120407_Samsung Notes.jpg
 
Could have put this in a few threads. Maybe there needs to be a gold M&A thread, cause it looks like it's heating up.

Anything could happen here.

Screenshot 2024-08-07 at 3.20.42 PM.png


But with respect to Emerald and Capricorn, if the talks did in fact take place, as some have suggested, it shows that top industry players are taking the need for consolidation seriously to gain investor attention.

While consolidation in the industry has been said to be pressing, it’s always been the personalities which have stood in the way in the top ranks.

The share price of Emerald Resources has been a strong performer based on expectations of its projects in locations such as Cambodia, and it’s not inconceivable that Mr Hart would want to take advantage of that uplift through a deal.

The value of Gold Road for both Mr Clark and Mr Hart of Gold Road is getting to operate Gruyere because they are both highly skilled operators.

One other miner to watch is Northern Star, which may be interested in De Grey Mining once it has the processing plant of its Super Pit gold mining asset running smoothly.

Gold Fields chief executive Michael Fraser told journalists he had not had direct approaches from parties wanting to buy its stake in Gruyere or right to operate the mine.

Meanwhile, De Grey Mining boss Glenn Jardine said the company did not have anything to disclose regarding approaches, following speculation Agnico Eagle may have weighed a bid for the $2.7bn gold miner.

However, the company is moving forward with development of Hemi, and while some believe now could be the right time to buy the business to influence the way that the mine was developed, others say that any suitor would be best to wait to launch a buyout proposal until the project had ramped up and allow De Grey to take much of the risk.
 
The market unhappy with the GOR report, which now seems to suggest that M&A costs were the reason for higher admin costs.
Gold production was down due to the previously mentioned weather related events.
Guidance for the second half of the year is much higher.
Either way, I reckon its probably a good time to enter, as I can see some upside here.
And it pays a dividend.
In for a few.
Mick
 
Plenty to look forward to in GOR, especially from the exploration side with considerable drilling to commence shortly.
This second half which will be relatively rain free till the latter part of the year should see guidance met hopefully over 300,000 ozs.
The dividend this half has halved to $0.005 fully franked, I guess it might just pay for a breakfast for me.
 
am currently up more than 35% on this one

feel free to buy my share ( of the cheaper GOR shares available today )
 
Tyre Kicker said:
I think the GOR so has been extremely disappointing considering the gold price.

Anyone else see why the sp hasn’t risen a lot more?
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Dividend payment day today.
I have no idea why it is unloved, but I am happy to keep holding.
I expect the next quarterly to have better production figures and better free cash flow.
But then my expectations have been dashed in the past.
Mick
 

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