THE BOURSE WHISPERER: Gold Road Resources (ASX: GOR) provided the market with an update on 2019 production guidance for the Gruyere gold project Joint Venture with Gruyere Mining Company, a member of the Gold Fields Limited group.
Gold road Resources intimated that with first gold on target for the June 2019 quarter, the Gruyere Project is anticipated to achieve commercial production during the second half of this calendar year.
Ramp‐up to full nameplate capacity is expected to be completed within six to seven months of first gold.
Gold production for year 2019 is estimated between 100,000 and 120,000 ounces with Gold Road’s share of guided production estimated to be 50,000 to 60,000 ounces.
Once commercial production is declared, all‐in sustaining costs for the remainder of 2019 are expected to be between $1,050 and $1,150, which the company said was slightly higher than the forecast life‐of‐ mine average of $1,025 per ounce, as production ramps up to full nameplate capacity.
Prior to commercial production being declared, production costs (net of revenue from any gold sold) will be capitalised.
The final forecast capital (FFC) cost estimate remains at $621 million and Gold Road anticipates funding a total share of the FFC cost of $284 million.
As of 31 December 2018, Gold Road’s remaining share of capital development costs is approximately $40 million.
Gold Road’s remaining share of JV management costs is approximately $10 million.
As at 14 February 2019 the Gruyere JV had mined 185,000 tonnes of ore, from which a substantial stockpile of ore is being amassed in preparation for initial production to facilitate a smooth ramp up during 2019.
“It is good to see the Gruyere project develop from conceptual plans through Feasibility Study to a well‐designed large scale, long‐life, low‐cost operation that is on the threshold of delivering substantial value for our shareholders,” Gold Road Resources chairman Tim Netscher said in the company’s announcement to the Australian Securities Exchange.
“We look forward to pouring first gold in the June 2019 quarter.”