Gold Road Resources shares lower as CY25 guidance disappoints
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More news: Shares in Gold Road Resources tumbled after the gold miner's 2025 guidance fell short of estimates.
Gold Road shares were down 3.9% to $2.38 by 12:45pm AEDT, having lifted by more than 70% over the last 12 months.
RBC Capital Markets analyst Alex Barkley said Gold Road's production guidance was roughly in-line with consensus estimates, however, all-in sustaining cost (AISC) guidance of between $2,400 and $2,600 per ounce was 16% above average forecasts.
Gold Road eyes 'substantial increase' in Gruyere production
The news: Gold Road Resources has raised expectations for its 50% owned Gruyere gold mine in Western Australia following disruptions to output last year, which saw the gold miner miss its annual production guidance.
The numbers: Gold Road has set 2025 annual guidance for Gruyere at 325,000 to 355,000 ounces, compared to 2024 production of 287,270 ounces.
The context: The miner said that the "substantial increase" in production will be driven by works completed in 2024, giving it full access to the site's ore body and enabling the delivery of higher grade run-of-mine ore from the mine to the process plant.
Meanwhile, Gold Road said that Gruyere's three-year production outlook ranges between 335,000 and 375,000 ounces per year. The increasing production is expected to be delivered by higher mill head grades and improving plant throughput rates, following the commissioning of a third pebble crusher in 2023 and further upgrades to the processing plant circuit planned in 2025.
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 sources: ASX announcement, RBC Capital Markets research
