Bullion’s romp beyond the record $2000 an ounce level in Aussie dollar terms has prompted investors to take a closer look at the pantheon of ASX-listed local gold producers – despite some problems in the mid-tier that have tarnished the sector.
Gold Road is a gold explorer that’s aggressively evaluating the large-scale resource potential of its Yamarna project in WA. The company’s production and corporate credentials have been significantly enhanced.
Gold Road (ASX: GOR, Share Price: $0.35, Market Cap: $196m) is one of our long-standing emerging gold exposures that we introduced to our Portfolio during December 2010. Gold Road has maintained aggressive and focused exploration and appraisal activity with respect to its vast Yamarna Belt gold project – an underexplored region encompassing an area of 5,000 sq km area within WA’s Yilgarn Craton.
Bell Potter has again upped its price target for Gold Road (GOR) as drilling results swamp previous expectations. A month after lifting to 21c minerals analyst Peter Arden has raised his target to 26c and his base case mid-term valuation to 35c. Even the 26c may now prove too conservative as drilling continues along the extensive W.A. shear zone GOR controls.
First half results revealed a -$2.3m loss from corporate costs. The company spent $72m on developing Gruyere and Macquarie expects the share of Gruyere capital expenditure to total $107m over the second half of 2018, representing a peak in expenditure.
The WA govt has been funding academic exploratory drilling of the Gruyere area to determine the geology of the region and at 1.1km down, has run into the Gruyere porphyry. This implies the Gruyere resource runs impressively deep, the broker suggests.