Gold Road weathers plant troubles to deliver dividend
Gold Road Resources has managed a barrage of processing plant issues at the Gruyere gold joint venture in Western Australia to achieve $129.6 million in revenues during the first half of 2021. The company’s revenue was lower than the $135.1 million it recorded in the six months to June 2020. However, its earnings before interest, taxes, depreciation, and amortisation (EBITDA) of 46 per cent was a percentile higher than last year at $59.6 million.
The company is expecting stronger performance in the second half of the year, having dealt with plant issues in June at the Gruyere gold mine in Western Australia, which is a JV with Gold Fields. Gruyere’s processing plant suffered a torn mill feed conveyor belt, causing temporary repairs and lower processing rates, resulting milling circuit to be shut down. The operation’s ball mill then failed following the replacement, forcing processing to continue at a lower rate leaving only the semi-autogenous grinding (SAG) in operation. It returned to normal operations in early July.
Gold Road Chief Executive Officer Duncan Gibbs said
“Gruyere has now produced 476,648 ounces 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.”
Gold Road’s exploration activity has also revealed underground potential beneath the open pit resource.