ASX-listed Gold Road Resources has reported a sharp increase in its corporate all-in cost for the June quarter, rising to A$3 542/oz from A$3 058/oz in the March quarter.

This cost includes growth capital, corporate expenses and exploration activities and represents the most significant financial movement reported by the company during the period.

Gruyere, Gold Road’s principal asset in Western Australia, produced 72 980 oz of gold on a 100% basis at an all-in sustaining cost (AISC) of A$2 928/oz attributable. This represented a slight increase from the March quarter, which recorded 71 226 oz at an AISC of A$2 658/oz.

The company indicated on July 17 that full-year production from Gruyere is expected to be at the lower end of the 2025 guidance range of 325 000 oz to 355 000 oz (162 500 oz to 177 500 oz attributable to Gold Road).

AISC is projected to come in near the upper limit of the guidance range, which is between A$2 400/oz and A$2 600/oz.

Gold Road recorded gold sales of 37 741 oz at a record average sales price of A$5 131/oz for the quarter. Gold doré and bullion on hand at the end of the period had decreased to 2 027 oz.

Attributable operating cash flow from Gruyere reached $138.6-million, up from $106.6-million in the March quarter. Free cash flow also increased to $44.7-million compared with $34.1-million in the prior quarter.

Cash and equivalents rose to $242.1-million from $203.8-million over the three-month period. Gold Road had no debt drawn at quarter-end. The market value of the company’s listed investments stood at about $827.3-million as of July 14, down from $892.7-million on March 31.

During the quarter, Gold Road completed a transition in its equity portfolio. It previously held a 17.3% interest in De Grey Mining. On May 5, Northern Star Resources acquired De Grey through a court-approved scheme of arrangement. As a result of the transaction, Gold Road now holds more than 49.2-million shares in Northern Star.

On the operational front, the company continued drilling campaigns at both Gruyere and Gilmour. The Gruyere diamond drilling programme, targeting about 60 000 m, progressed in line with expectations for width and grade. By the end of the quarter, about 23 000 m had been completed, with up to five rigs operating.

At Gilmour, a combined diamond and reverse circulation (RC) drilling programme totalling around 30 400 m also continued in line with expectations. A single RC rig focused on near-surface infill drilling immediately north and south of the orebody, while two diamond drill rigs explored potential extensions to inferred resources.

In a major corporate development, Gold Road announced on May 5 that it had entered into a scheme implementation deed with Gold Fields.

Under this agreement, Gold Fields would acquire 100% of Gold Road’s issued share capital through a scheme of arrangement. If implemented, shareholders would receive a fixed cash payment of $2.52 a share, adjusted for any special dividend paid beforehand.

An additional cash component would be based on the value of Gold Road’s holding in Northern Star.

Gold Road has stated its intention to pay a fully franked special dividend should the scheme proceed, with the final amount dependent on the franking account balance at the time. The transaction remains subject to approval by shareholders and other customary conditions.

The board of directors has expressed support for the transaction, unless a superior proposal emerges. Directors have confirmed their intention to vote in favour, subject to the continued endorsement of the deal by an independent expert.

A detailed scheme booklet is expected to be distributed to shareholders in August. A vote is scheduled for September, with implementation to follow shortly thereafter, if approved.