The share price of mid-tier Aussie gold producer Gold Road Resources Ltd [ASX:GOR] is well in the green today, up 12.2% at time of writing to $1.14.
GOR had been in an uptrend for the first half of 2019. The first gold bar from their half-owned Gruyere Tier 1 gold mine caused a significant surge during July.
During this time, GOR and their partner Gold Fields Ltd [NYSE:GFI] have been ramping up the Gruyere mine.
Gold Fields also sold a 9.9% stake in GOR during this time as part of a debt reduction strategy, which shed around 27 cents off GOR shares.
Yesterday, however, GOR released their results for the September quarter, revealing their original predicted guidance for Gruyere in 2019 has been reaffirmed and expected to be at the upper end.
Other highlights from the September quarterly report include:
- Near 30,000 ounces of gold produced at Gruyere
- All-in Sustaining Cost (AISC) unchanged for next quarter, at $1,050 to $1,150 per ounce
- $65.3 million cash on hand
- Bullion of $5.8 million on hand
- 12,461 ounces of its share of gold from Gruyere sold at an average price of $2,052
GOR also joined both the ASX 200 and the VanEck Vectors Junior Gold Miners ETF in September 2019.
The update also discussed drilling at GOR’s wholly-owned Yamarna tenements.
Four RC holes in the Yaffler South prospects ‘intersected coherent and consistent mineralisations across one traverse’, revealing potential for the area.
How Gold Road will travel along the gold road
At time of writing, the gold price is US$1,489.83 per ounce, up around 0.4% from yesterday.
Volatility in the gold price has decreased recently, reflecting the apparent progression in the trade situation between China and the US.
And once the Brexit deal is out of limbo, the gold price could make a move.
If it’s a no deal, the price could be pushed up, which would have flow-on effects to the company’s share price.
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PS: In an exclusive new video interview, Greg Canavan talks all things gold with Richard Hayes, CEO of The Perth Mint. Click here to watch the full interview.