Jefferies cautious on Australia's Gold Road Resources after weak production forecast

Gold Road Resources

18/03/2025 20:37

** Jefferies remains cautious on Gold Road Resources GOR.AX, 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 miner 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 earlier projection of 86,000 ounces

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

** Gold Road up 22.4% so far this year, as of last close

 (Reporting by Nikita Maria Jino in Bengaluru)

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