Production at Gruyere was below expectations, largely because of a build in gold-in-circuit. Macquarie believes the open pit and process plant optimisation will drive outperformance over the medium term.
Guidance is unchanged. Outperform rating maintained. Target rises to $1.50 from $1.40. Given the weakness in gold stocks in 2021 Macquarie believes high margin producers such as Gold Road will perform well compared with peers.
Sector: Materials.
Target price is $1.50.Current Price is $1.29. Difference: $0.21 – (brackets indicate current price is over target). If GOR meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
