Gold Road Resources has faced another production setback at its Gruyere gold mine, just as it recovered from last year’s weather-related disruptions.
Shares in Gold Road fell 4.5% in early trading on Tuesday after the company—joint operator of the mine with South African giant Gold Fields—warned that March quarter output would decline compared to the record-breaking December period.
The company cited maintenance work on the primary crusher and the failure of two conveyor belts as the cause, estimating March quarter production at 70,000 to 73,000 ounces. However, Gold Road reaffirmed its 2025 annual production and cost guidance, maintaining forecasts of 325,000oz-355,000oz at an all-in sustaining cost of $2,400-$2,600 per ounce.
Despite the setbacks, the Gruyere joint venture has identified the mechanical issues, implemented recovery plans, and continues ramping up mining operations. The mine is currently running at an annualized rate of 72 million tonnes per year, with further improvements expected.
The latest challenges follow Gruyere’s strong performance in 2024, when it bounced back from severe rainfall disruptions in March that temporarily halted operations. The mine produced 287,270 ounces of gold last year, including a record 91,631 ounces in the December quarter.
Gold Road also reported record financials for 2024, achieving its highest-ever net profit after tax of $142.2 million on record gold sales revenue of $528 million. The company also recorded its best-ever earnings before interest, tax, depreciation, and amortization (EBITDA) at $294.4 million and an operating cash flow of $250.6 million for the year.
At the close of trading on Tuesday, Gold Road shares had fallen 13 cents, or 4.9%, to $2.51.