Gold Road Resources (ASX:GOR) profit is off to a slow start

Perth based miner, Gold Road Resources (ASX:GOR) posted a fall in profit in the first half of this year.

The update comes after the miner warned investors a month ago that several disruptions at its Gruyere Gold Mine was set to weigh on their headline production numbers.

With infrastructure and equipment failures pressuring their output, their torn mill feed conveyor belt at Gruyere put a handbrake in processing rates as they waited for replacement parts.

Gold Road generated $129.6 million in revenue on sales for 60,525 ounces of gold, down from $135.1 million from the same period in 2020.

Net profit after tax fell 18.2 per cent to $19.1 million while earnings before interest, tax, depreciation, and amortisation fell 2.3 per cent to $60,980 million. However, EBITDA margin advanced by one percentage point to 46 per cent.

The company is set to pay a fully franked interim dividend of 50 cents in October.

Looking ahead, the gold miner aims to bump their annual production in the next three years from 35 per cent to 50 per cent. They’re banking on a sustainable output of around 350,000 ounces per year by 2023.

Shares in Gold Road Resources (ASX:GOR) are trading 1.2 per cent lower at $1.26.


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