Australia's Gold Road tumbles after lowering production guidance for mine

Gold Road Resources

22/06/2023 03:37

(Updates with fresh share moves, RBC comments)
    ** Shares of Australia's Gold Road Resources  GOR.AX  fall
as much as 9.03% to A$1.588 - set to mark worst day since
February 2022, if current losses hold 
    ** Stock of gold-focused mine operator hits lowest level
since March 24, top loser on the ASX200 Index  .AXJO  
    ** Co sees 2023 annual gold production at Gruyere mine
between 320,000 and 350,000 ounces, down from previous
expectation of 340,000 to 370,000 ounces 
    ** Says lower gold production rate and revisions to total
mining movement will impact all-in sustaining cost per ounce
guidance for the year as well 
    ** Adds rains alongside below-expectation reliability and
utilisation of production drills and availability of blasting
resources for the quarter have impacted production 
    ** Analysts at RBC say GOR's issues could form another
hurdle or delay in Gruyere reaching its milling target of 10
metric tonnes per annum, which RBC forecast to be reached from
Q3 CY24 
    ** "Today's downgrade could hurt strong market perceptions
of Gruyere, and we expect GOR to trade weaker" - RBC 
    ** RBC's price target for GOR is A$1.50 per share, alongside
a non-consensus "underperform" rating 
    ** GOR stock had risen 3.3% this year, as of last close

 (Reporting by Nausheen Thusoo in Bengaluru)
 ((Nausheen.Thusoo@thomsonreuters.com;))