Australia's Gold Road Resources slips; brokerages cautious after weak production forecast

Gold Road Resources

19/03/2025 24:10

Updates with share moves and comments from Macquarie

** Shares of Gold Road Resources extend losses for a second consecutive session, down 3.6% at A$2.42

** Stock hits its lowest level since March 3

** Jefferies remains cautious on the gold miner as production continues to be hampered by reliability issues at the company's jointly owned Gruyere project in Western Australia

** Brokerage reiterates its "hold" rating and a PT of A$2.6

** Gold Road on Tuesday said it anticipates production from Gruyere in the range of 70,000 ounces to 73,000 ounces for March quarter, vs 91,631 ounces in the December quarter

** Jefferies revises March-quarter Gruyere production estimate to 71,000 ounces from an earlier projection of 86,000 ounces

** Macquarie now expects Gruyere production for CY25 to be 325,000 ounces, at the lower end of outlook

** However, Jefferies says operational improvements and a supportive gold price should yield strong cashflows and shareholder returns

** Stock up 18.1% so far this year, including current session's moves

 (Reporting by Nikita Maria Jino in Bengaluru)

 ((Nikita.Jino@thomsonreuters.com;))