GOR - Gold Road Resources

[Padowan]

Comparing GOR to SLR... not quite apples to apples...
GOR
Up and coming gold play.
Good prospects.
Trading volume increasing.
SP breaking new ground, likely to bring volatility.
Some large volume trading days in the last 12 months, around 100 million vol.
Fairly low AISC.

SLR
Gold and copper play.
Actively trading last 6 months.
Currently SP around half of it's 2012/13 highs.
Longer in the tooth than GOR

In the current market, who knows?
Both look like nice apples of different varieties which the market seems to like.

F.Rock

From GOR investor pres, they are Cleary messaging their views on relative value

 

[fergee]

Great tailwinds for GOR right now, as long as they don't have to shut don't for anything over a month or so. AUD gold at record highs + Cheaper oil looks very promising for them for the rest of the year. Hedge books will be interesting next report to see if they have added hedges during this price rise.

 

[fergee]

Gold Road presentation at Denver gold forum

Key take aways from this for me were:

The winding up of the hedge book now that debt has been repaid, currently 25% of projected annual production is hedged.

The up and coming dividend payment.

Looking to organically grow and possibly acquire assets inline with current strategy, they won't be investing in risky jurisdictions.

Hoping to prove up an asset large enough to become a 100% owner operator.

Lot of money being spent drilling on 100% owned ground.

All in all sounded good to me, fantastically managed company.

 

[fergee]

DIVIDEND POLICY IN PLACE

•  Target an annual aggregate dividend payout of 15%-30% of free cash flow for each calendar year in two half yearly payments*
•  Subject to a minimum net cash balance of A$100M (US$72M) (after payment of any dividend)
•  A$65.7M (US$47.3M) in Franking Credits1
•  Anticipate inaugural dividend declared for 6 month period ended 31 December 20202
•  Dividend reinvestment plan to be established

 

[Ferret]

My second pick for the 2021 comp.

Up and coming gold miner and could do well if things get shaky again in 2021.

 

[Dona Ferentes]

Blimey

down 8% on production numbers

... Due to disruptions to processing plant operations at the Gruyere Gold Mine, production at Gruyere for the June 2021 quarter will be approximately 52,000 to 55,000 ounces (100% basis). As a consequence of the lower than expected gold production, and additional plant maintenance, All-in Sustaining Costs (AISC) per ounce for the June 2021 quarter are anticipated to be in a range of A$1,675 to A$1,800 (Gold Road attributable), subject to final end of quarter accounts.

The disruptions to Gruyere’s processing plant operations included a torn mill feed conveyor belt, which resulted in temporary repairs and reduced processing rates while specialist personnel and materials for the belt replacement were obtained. Following the shutdown of the milling circuit to replace the conveyor belt, a coupling on the ball mill failed. As a result, processing continued at a reduced rate, with only the SAG mill in operation.

Repairs to the ball mill were completed late on Friday, 25 June 2021, with the processing plant returning to normal operations over the weekend. The root cause of the coupling failure is under engineering investigation, with the objective of preventing potential future failures.

At this stage, Gold Road anticipates gold production for the 2021 calendar year will be within the lower half of guidance (260,000 to 300,000 ounces on a 100% basis). AISC for the 2021 calendar year are anticipated to be between $1,325 and $1,475 per attributable ounce, with lower June 2021 quarter production and higher maintenance and labour costs the main contributors to an increase from guidance of between A$1,225 – A$1,350.

 

[divs4ever]

now i am tipping GOR in the August comp. NOT because i believe it will go to the moon in August , but hoping my reverse luck kicks in so i can buy it cheaper

currently i am biasing my stock purchases strongly towards gold producers , and to date i haven't bought any GOR ( but hope to )

the reasons i think it will slide is .. there was some disappointment in the recent results , AND i expect the gold commodity market to continue to be surpressed , partly to flush investor into treasury bonds ( real gold bugs will take real bullion or coins HOME with them )

so with Comex prices pushed lower , some gold producers making bold moves ( and acquistions ) i am expect some money to flow out of GOR in the next month or two

DYOR

please note this is personal opinion NOT advice or a recommendation

 

[divs4ever]

again for September , i pick GOR

again i am accessing my 'finger of doom ' by selecting GOR

now i bought one parcel in August and have a small chance of a second parcel in August , but to me the underlying pressures should continue until at least the middle of September , so may as well try for a second ( or third ) parcel

now around options expiry date in September should be very interesting , there are various attempts to ramp up the 'fear trade' ( flush investor's funds into bonds and US dollars ) a positive hint for those looking for lower gold/silver prices .

what would be hysterical would be a market meltdown producing those cheap buys and THEN the rush to gold and silver ( and producer miners ), that pushed me towards the lead at the end of the month

will that happen .. i have no idea , but then how much ' unimaginable ' has happened it least two years

so with Comex prices pushed lower , some gold producers making bold moves ( and acquisitions ) i am expect some money to flow out of GOR in the next month or two

DYOR

please note this is personal opinion NOT advice or a recommendation

good luck everybody

 

[divs4ever]

NET PROFIT AND DIVIDEND DETERMINED FOR 6 MONTHS TO 30 JUNE 2021 Half Year Highlights Six Month Profit

 Revenue from 60,525 ounces of gold sales for the 6 months totalled $129.6 million (June 2020: $135.1 million)1
 EBITDA for the 6 month period totalled $59.6 million (June 2020: $61.0 million)
 EBITDA Margin of 46% (June 2020: 45%)
 Consolidated Net Profit after Tax for the 6 months of $19.1 million (June 2020: $23.4 million)
 Basic earnings per share for the 6 months of 2.17 cents (June 2020: 2.66 cents)
 Operating cash flow for the 6 months to 30 June 2021 was $46.3 million (June 2020: $59.6 million)
 Group free cash flow generated for the 6 months was $11.2 million (June 2020: $27.7 million) Strong Balance Sheet
 At 30 June 2021 Gold Road reports cash and short-term deposits of $124.4 million (December 2020: $126.4 million) and remains debt free Fully Franked Interim Dividend Determined for Six Months to 30 June 2021
 Fully franked dividend of 0.5 cents per share determined for six months to 30 June 2021
 Aligned to Dividend Policy of 15% to 30% of free cash flow for the six-month period Strong 3 Year and Longer Term Growth Outlook
 3-year production outlook shows a 35% to 50% increase in annual production to a sustainable circa 350,000 ounces per annum by 2023 supported by renewable energy power upgrade
 Progress continues towards an updated Gruyere Ore Reserve, expected in the second half of 2021
 Deep drilling commenced beneath Gruyere Ore Reserve,with initial results encouraging
 During the period, Gold Road had up to five drill rigs operating at Yamarna and up to two drill rigs operating at Yandina as the Company continues to actively explore for a meaningful discovery. Gold Road Managing Director and CEO Duncan Gibbs commented: “Gruyere has now produced 476,648 ounces (100% basis) since first pouring gold on 30 June 2019. Despite a one-off production interruption in the June Quarter, Gruyere continued to deliver a strong half year profit and EBITDA to Gold Road, and the Board has determined to pay a dividend for the six-months to 30 June 2021 of 0.5 cents per share.
The outlook for the second half of 2021 is stronger at Gruyere, in line with our 2021 guidance and 3 Year Outlook that sees the operation lifting production to a sustainable 350,000 ounces by 2023 (100% basis).
The already extensive mine life 1 Revenue, EBITDA, cash flow and NPAT excludes the sale of 1,800ounces of unsold gold held in bullion and doré at 30 June 2021. Financial results are Gold Road attributable unless otherwise stated. Page 2 of 2 looks set to grow further with our reserve update later this year.
Geotechnical work on this Reserve update has shown the potential to steepen fresh rock open pit slopes by up to 4 degrees which should have a favourable impact on mine life. During the half year, we also began to unlock the potential for further extensions beneath the open pit resource at Gruyere, with Gold Road reporting a 50% attributable Maiden Underground Inferred Mineral Resource, and the Gruyere Joint Venture commencing a programme of deeper drilling that has returned some promising initial results. I am also very encouraged by our exploration progress at our 100% owned Yamarna project and expect further headway here in the coming 6 to 12 months as we look for a meaningful discovery.
Gruyere and Gold Road have experienced no material production impacts as a result of the COVID-19 crisis. I wish to thank the Gruyere team, our employees, contractors and suppliers for their diligence and excellent performance through this difficult time.” Interim Dividend Information As a result of the ongoing financial performance of the Company, the Board has determined the following fully franked interim dividend to shareholders for the six months ended 30 June 2021:
 Dividend amount 0.5 cents per share fully franked  Ex-Dividend date 27 September 2021
 Record date 28 September 2021
 Dividend Reinvestment Plan election date 29 September 2021
 Price calculation period 30 September 2021 to 13 October 2021 (inclusive)
 Payment date / Issue date 28 October 2021 Gold Road has announced a Dividend Reinvestment Plan (DRP), which will apply to the dividend announced today.
The DRP allows existing shareholders to invest their dividends back into the Company with no fees, brokerage or other transaction costs on shares acquired under the DRP.
A 2.5% discount to the applicable 10-day volume weighted average price will apply to allotments for the dividend announced today. Details of the DRP along with the DRP rules have been released in a separate announcement today. Participation in the DRP is not automatic, and eligible shareholders must elect to participate.
Shareholders can make their DRP election online at https://www.computershare.com.au/easyupdate/gor any time before 7pm (AWST) on 29 September 2021. Shareholders are encouraged to ensure their contact details and payment preferences held with the share registry are up to date via https://www.computershare.com.au/easyupdate/gor.

DYOR

i hold GOR

let's see how the market takes this

( i have a small buy order in @ $1.15 )

 

[Sean K]

( i have a small buy order in @ $1.15 )

Been following, the cheese looks like a nice tasty deposit and if POG goes north in concert with production up to 300m oz + then this should be on every gold bugs cheese platter.

Would be looking very oversold at $1.15, unless POG tanks.

 

[divs4ever]

am expecting another gold price manipulation push to try to make the major currencies look like they have value ( and their bonds investment grade )

i am of the 'gold is an inert , lifeless metal ' school ( aka the world revolves around gold )

 

[Dona Ferentes]

blimey

Gold Road Resources has blamed production problems and unscheduled maintenance for a downgrade to annual production guidance to between 250,000 and 260,000 ounces of gold. This compares to prior guidance between 250,000 ounces and 300,000 ounces.

It also warned its all in sustaining cost (AISC) guidance is under review as a result of the downgrade.

 

[Sean K]

A couple of interesting announcements out the past week. Gazumping the bid for Apollo and now a material increase in Gruyere to be provided. Exciting days for GOR holders. Have been interested but have been focussed on explorers.

 

[Garpal Gumnut]

I've been in and out of GOR and considering a re-entry.

They seem to be having some dramas with an acquisition.

gg

 

[Telamelo]

I've been in and out of GOR and considering a re-entry.

They seem to be having some dramas with an acquisition.

View attachment 141744

gg

I got out of GOR recently @ $1.54 (after reading/assessing quarterly report) as sensed share price was heading lower... switched into GCY instead & you guessed it gone lower as well lol given the current gold price weakness.

Been averaging down as feel GCY a chance of being a possible takeover target during 2022/23

Watching GOR to see if it drops lower to around $1.10-$1.20 range as then worthwhile picking up a parcel for sure imho

 

[Garpal Gumnut]

I got out of GOR recently @ $1.54 (after reading/assessing quarterly report) as sensed share price was heading lower... switched into GCY instead & you guessed it gone lower as well lol given the current gold price weakness.

Been averaging down as feel GCY a chance of being a possible takeover target during 2022/23

Watching GOR to see if it drops lower to around $1.10-$1.20 range as then worthwhile picking up a parcel for sure imho

Same here funnily enough re getting out of GOR at about similar price.

Thanks for info on GCY, I'll have a look.

gg

 

[divs4ever]

i have an order in for extra GOR but not that close to the price action

only a small order but as part of a plan to calmly accumulate positions in gold producers

i would have preferred to parallel that with an accumulation of food producers , but i have found it difficult to find attractive targets at 'fair prices ' ( maybe i am too demanding )

 

[The Triangle]

On the half year results at roughly 124,000 ounces GOR made about $2250/oz revenue and had $2100/oz in costs - which left about $150/oz for other things (dividends). That's not a great margin to be playing with given we're seeing diesel and labor costs skyrocket and how difficult it is to get anything with a computer chip. So about $18 million cash for a $1.1 billion market cap. And using GOR shares to dilute holders into acquiring another junior which holds shares in other juniors??? Hmm...

From the recent quarter: "Free cash flow before payment of dividends was $1.1 million for the quarter" - Yet this is based on:
AISC of $1526/oz
Revenue of $2434/oz

However you choose to look at things this is not a great outcome. I liked GOR years ago when it looked like it was going to be a good high tonne/low cost operation but It seems to me this operation has just never quite hummed along as it should have.

From the feasibility: Estimated average all-in sustaining cost (AISC) of A$945 (US$690⁶) per ounce over LOM with a payback of less than one-third of LOM. So in less than 6 years costs have essentially gone up over 60% - is that inflation or incompetence? Blame covid?

 

[Sean K]

On the half year results at roughly 124,000 ounces GOR made about $2250/oz revenue and had $2100/oz in costs - which left about $150/oz for other things (dividends). That's not a great margin to be playing with given we're seeing diesel and labor costs skyrocket and how difficult it is to get anything with a computer chip. So about $18 million cash for a $1.1 billion market cap. And using GOR shares to dilute holders into acquiring another junior which holds shares in other juniors??? Hmm...

From the recent quarter: "Free cash flow before payment of dividends was $1.1 million for the quarter" - Yet this is based on:
AISC of $1526/oz
Revenue of $2434/oz

However you choose to look at things this is not a great outcome. I liked GOR years ago when it looked like it was going to be a good high tonne/low cost operation but It seems to me this operation has just never quite hummed along as it should have.

From the feasibility: Estimated average all-in sustaining cost (AISC) of A$945 (US$690⁶) per ounce over LOM with a payback of less than one-third of LOM. So in less than 6 years costs have essentially gone up over 60% - is that inflation or incompetence? Blame covid?

Can't find Half Yearly results but the Quarterly doesn't seem to match those Costs/ASIC? numbers of $2100. Looks like their 'equivalents' are quite a bit on the cash side. Must be what they get from DGO deal perhaps?

Last preso broad numbers:

 

[divs4ever]

On the half year results at roughly 124,000 ounces GOR made about $2250/oz revenue and had $2100/oz in costs - which left about $150/oz for other things (dividends). That's not a great margin to be playing with given we're seeing diesel and labor costs skyrocket and how difficult it is to get anything with a computer chip. So about $18 million cash for a $1.1 billion market cap. And using GOR shares to dilute holders into acquiring another junior which holds shares in other juniors??? Hmm...

From the recent quarter: "Free cash flow before payment of dividends was $1.1 million for the quarter" - Yet this is based on:
AISC of $1526/oz
Revenue of $2434/oz

However you choose to look at things this is not a great outcome. I liked GOR years ago when it looked like it was going to be a good high tonne/low cost operation but It seems to me this operation has just never quite hummed along as it should have.

From the feasibility: Estimated average all-in sustaining cost (AISC) of A$945 (US$690⁶) per ounce over LOM with a payback of less than one-third of LOM. So in less than 6 years costs have essentially gone up over 60% - is that inflation or incompetence? Blame covid?

well blaming Covid is popular , but then recently so is blaming Putin

am CAREFULLY looking to add , there are several mid-tier gold producers competing for my attention