The board of midtier Australian miner Gold Road Resources has opted to declare a dividend for the six months to June 30, despite a rain-impacted half-year and its negative impact on free cash flow.
Gold Road, which owns the Gruyere mine in a joint venture with Gold Fields, declared a dividend of $0.05 a share.
“In determining the dividend, your Board has shown confidence in future cash flow generation following the impact on cash flow from unprecedented weather events experienced in the first half of 2024,” said MD and CEO Duncan Gibbs on Monday.
The first half of 2024 was challenging for Gold Road, with production exploration severely impacted by the regional rain events that forced a seven-week closure of the main access road to the Gruyere mine.
Gibbs said that, despite the weather-related production challenges, Gold Road’s unhedged production benefitted from record high gold prices.
The company delivered revenue of A$211.7-million in the six months to June 30, down 17% on A$229-million a year earlier. Net profit after tax reduced by 12.6% to A$43.1-million.
Free cash flow took a beating, reducing by nearly 80% year-on-year to a negative A$4.2-million.
However, Gibbs said that Gruyere was “well set to deliver against our expectations of this high-quality orebody”.
“I expect to see a ramp-up in gold production through the remainder of 2024 with a sustained improvement in mining rates to support higher levels of gold production in future years.”
The guidance for Gruyere was revised to 290 000 oz to 305 000 oz (100% basis) in July.
Edited by: Creamer Media Reporter
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