Gold production from Gold Road Resources’ (ASX:GOR) Gruyere joint venture (JV) slipped over the December quarter, though the company still managed to reach the lower end of its annual production guidance.
The $2.11 billion market capitalisation company says it produced 74,653 ounces of gold from the Western Australian mine over the December quarter from the JV — a decrease of nearly 16% from the September quarter’s production of 88,688 ounces.
Gruyere is owned in a 50:50 partnership between Gold Road and Gruyere Mining Company, a member of Johannesburg-listed mining giant Gold Fields (JSE:GFI).
The December production figures take Gruyere’s total 2023 production to just shy of 322,000 ounces, touching the lower end of Gold Road’s annual guidance of between 320,000 ounces and 350,000 ounces of gold.
Gold Road attributes the weaker December quarter to ‘disappointing mining performance arising from unexpected labour availability issues’, according to a statement released to the ASX today (3 January).
Gold sales also dipped in December, with Gold Road selling 37,037 ounces of gold at an average price of $3,040 per ounce. For comparison, gold sales in December topped 44,321 ounces at an average of $2,946 per ounce.
As for its processing operations, Gold Road says it processed 2.2 million tonnes at a head grade of 1.1 grams per tonne (g/t) gold and a gold recovery of 93.1% for the December quarter. This compares to the 2.4 million tonnes processed at a head grade of 1.16 g/t gold with a recovery of 93.2% over the September quarter.
Gold Road ended 2023 with 1,989 ounces of gold doré and bullion on hand and $149.8 million cash and cash equivalents in the bank.
The company says it will release more details about its December quarter financials and production, including annual attributable all-in sustaining costs, in its forthcoming December quarterly report.
Write to Joshua Smith at Mining.com.au
Images: Gold Road Resources