Gold Road Resources sinks after slashing production guidance
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More news: A sell-off in Gold Road Resources saw the gold miner become the worst performing stock across the ASX 200, after slashing its annual production guidance.
Gold Road shares were down 3.2% to $1.66 by 12:45pm AEST.
Gold Road cuts guidance due to heavy rainfall
The news: Gold Road Resources has cut its annual production guidance after heavy rainfall affected operations at its Gruyere mine site in Western Australia during March and April.
The numbers: The miner produced 62,535 ounces of gold in the three months to June, a 1% drop from the preceding quarter, which had also seen a 14% decline due to bad weather.
All-in sustaining costs (AISC) also jumped 11% for the quarter to $2,441 an ounce. Sales also dipped 3.4% to 31,216 ounces in the June quarter.
The context: Gold Road now expects 2024 production guidance to be 290,000 to 305,000 ounces, down from its previous guidance of 300,000 to 335,000 ounces. AISC cost guidance has been revised upwards between $2,050 and $2,200 per ounce, from the prior range of $1,900 to $2,050 per ounce.
The company attributed the changes and lower output to the protracted regional rain event in early March, which resulted in the suspension of processing and mining operations through the first half of April, with the closure of the main supply road.
The ramp up to normal operations at Gruyere was initially supported by the transport of consumables through an alternate supply route from the Northern Territory. The ASX-listed firm owns a 50% interest in the Gruyere gold mine in Western Australia that it owns jointly with the mine’s operator, Gold Fields.
The source: ASX announcement
