Gold Road Resources (ASX:GOR), a mining company with a significant stake in the Gruyere gold mine in WA, along with shareholdings in De Grey Mining and Yandal Resources, has announced a 20% increase in its interim dividend after revealing impressive financial results for the six months ending on June 30.
The company witnessed a 16% surge in revenue, reaching $229 million for the first half, compared to $196.5 million in the same period of 2022. Consolidated net profit after tax for the six months stood at $55.7 million, up from $39.9 million in June 2022.
Gold Road Resources declared an interim dividend of fully franked 1.2 cents per share, marking an increase from the previous 1 cent per share.
In the final results report, CEO Duncan Gibbs stated, "The six months to 30 June 2023 has broken several financial records for Gold Road. The strong result reflects the consistent performance of the processing plant, a supportive Australian dollar gold price, and Gold Road’s production being fully unhedged."
EBITDA for the six-month period witnessed a 22% increase, rising to $122.6 million from the previous $100 million.
The company reported a total cost of sales, including amortisation and depreciation, amounting to $123.1 million (compared to $113.8 million on June 30, 2022), generating a gross profit from operations of $105.9 million (up from $82.7 million in June 30, 2022). The company attributed the increase in gross profit to a higher average gold price realized for sales and a rise in the volume of gold sold.
Gold Road concluded the half-year with cash and short-term deposits totaling $152.6 million, a significant increase from the $74.4 million in FY22. The company remains debt-free.
Gold Road's Gruyere mine, co-owned with Gold Fields, is on track to achieve the restated 2023 annual guidance of producing 320,000 to 350,000 ounces of gold. The company's full-year All-In Sustaining Cost (AISC) guidance remains unchanged at $1,540 to $1,660 per attributable ounce.
The company's exploration and investment portfolio also showcased strength, with strategic investments in De Grey Mining and Yandal Resources valued at $416.1 million as of June 30, 2023.
Gold Road continues its drilling activities at the Mallina and Yamarna projects in WA, with ground activities commencing at the Greenvale project.
