Gold Road Resources Limited (ASX: GOR) has provided an update on the March 2025 quarter production at the Gruyere Gold Mine, a 50:50 joint venture with Gruyere Mining Company Pty Ltd, a subsidiary of Gold Fields Ltd. Production is expected to be lower due to maintenance issues, but the company remains on track to meet its full-year guidance.
March Quarter Production Declines
Gruyere’s gold production for the March 2025 quarter is expected to be between 70,000 and 73,000 ounces (100% basis). This marks a decline from the December 2024 quarter, which recorded 91,631 ounces. The lower production is due to maintenance on the primary crusher and the failure of two conveyor belts. The Gruyere JV has identified the causes and is implementing recovery plans.
Mining activity continues to ramp up and is currently at an annualised rate of approximately 72 million tonnes per annum (Mtpa). Further improvements are expected.
Full-Year Guidance Remains Unchanged
Despite the production decline, Gold Road has maintained its 2025 annual guidance. The Gruyere JV expects to produce between 325,000 and 355,000 ounces (162,500 – 177,500 ounces attributable) at an attributable All-in Sustaining Cost (AISC) of A$2,400 – A$2,600 per ounce.
The company will release a full quarterly report next month, detailing production, costs, and attributable AISC.
Gruyere: A Tier 1 Asset
The Gruyere Gold Mine is a Tier 1, low-cost, long-life asset located in Western Australia. Gold Road and Gold Fields each own 50% of the operation. Gruyere has a mine life exceeding 10 years and produced a record 321,984 ounces in 2023.
Key metrics for Gruyere include:
- Average annual production: ~350,000 ounces
- Mine life: Over 10 years
- Ore Reserve: 3.67 million ounces
- Mineral Resources: 6.04 million ounces
Gruyere’s Discovery and Development
Gold Road discovered the Gruyere deposit in October 2013 at the South Dorothy Hills Trend, 25 km northeast of Central Bore. Within 10 months, the company defined a significant high-grade deposit and announced a maiden JORC 2012 Mineral Resource of 3.8 million ounces at 1.23 g/t gold.
The Open Pit Mineral Resource has since grown to 153 million tonnes at 1.33 g/t for 6.69 million ounces, making it one of Australia’s largest virgin gold discoveries.
Following feasibility studies, Gold Road sold 50% of the project to Gold Fields Ltd in November 2016 for A$350 million and a 1.5% Net Smelter Return royalty on production over 2 million ounces. This deal fully funded Gold Road’s share of development capital and reduced project risk.
Construction started in 2017 and was completed in 2019. First March gold was delivered in the June 2019 quarter.
Gruyere’s Operations
Gruyere is located about 1,200 km March northeast of Perth in Western Australia’s northeastern Goldfields. Gold Fields operates the mine on behalf of the JV.
Mining and processing run 24/7, with personnel working 12-hour shifts. The site employs about 679 people, most commuting by jet from Perth in a 90-minute flight. Some workers from Laverton and Cosmo Newberry travel by bus, a two-hour journey each way.
Since production began in June 2019, Gruyere has yielded 1,240,464 ounces of gold (100% basis) as of 31 December 2023. Based on the 2023 Ore Reserve update, the mine life will extend until at least 2032. An additional 2.8 million ounces of resources exist below the open-pit Ore Reserve.
Production Outlook and Future Plans
Gold Road’s updated three-year production outlook, released in April 2023, reaffirms sustainable annual production of 350,000 ounces until 2032. The Gruyere JV’s Life-of-Mine plan includes a seven-stage open March pit, with increasing throughput and grades supporting lower AISC and strong margins at current gold prices.
The Golden Highway Expansion
The Golden Highway, formerly the Attila-Alaric Trend, lies 25 km west of Gruyere March within the Yamarna Greenstone Belt. The deposit holds:
- Mineral Resources: 720,000 ounces
- Ore Reserves: 300,000 ounces
Mineralisation extends over 50 km along sheared mafic and intermediate March volcanics within the Yamarna Shear Zone. The Golden Highway Ore Reserve contains 6.9 million tonnes at 1.29 g/t for 290,000 ounces, while its Mineral Resource is 14.4 million tonnes at 1.44 g/t for 670,000 ounces.
Gold Road remains committed to maximising Gruyere’s potential March and driving long-term value through exploration and operational efficiencies.
Investor’s Outlook
Stock Performance
Gold Road Resources Limited (ASX: GOR) experienced a 5.49% decline in its share price, closing at $2.495, down $0.145 today. This drop follows the announcement of lower-than-expected gold production at the Gruyere Gold Mine for the March quarter.
The company’s March market capitalisation stands at $2.86 billion, with 1,085,160,105 shares on issue. Despite the short-term price decline, Gold Road remains on track to meet its full-year guidance, maintaining investor confidence in its long-term operational stability.
Trading Volume and Market Sentiment
Gold Road has seen significant trading activity over the past five days, with today’s volume reaching 5.7 million shares, the highest in the period, indicating strong market interest in response to the production update.
| Date | Trading Volume (Million) |
| Mar 12 | 3.3M |
| Mar 13 | 4.1M |
| Mar 14 | 4.4M |
| Mar 17 | 2.8M |
| Mar 18 | 5.7M (highest in 5 days) |
The increased trading March volume suggests that investors are actively repositioning, with some taking advantage of the lower price. While the short-term outlook may be impacted by the temporary production decline, Gold Road’s solid operational fundamentals and robust annual production guidance of 325,000 – 355,000 ounces remain key factors supporting long-term value.
Investors will be closely watching the full quarterly report, expected next month, for further insights into production costs, AISC, and any updates on the Gruyere recovery plans.
