Gold Road Resources has reported a 27 per cent quarter-on-quarter hike in the value of its listed investments but remains tight-lipped on whether it will make a move for De Grey Mining.
Gold Road Resources has reported a 27 per cent quarter-on-quarter hike in the value of its listed investments but remains tight-lipped on whether it will make a move for De Grey Mining.
Gold Road revealed the value of its listed investments – which include a 17.3 per cent stake in De Grey – climbed from $579.6 million to $740.6 million over the three months to December 31.
The increase is largely the result of share price appreciation at De Grey, which became the subject of a $5 billion takeover bid from Northern Star Resources in December.
De Grey shares shot up from around $1.50 each to just shy of $2 off the back of the bid, which offered shareholders $2.08/share.
Gold Road was previously linked to De Grey, having bought up a 19.99 per cent strategic stake in the Hemi gold project owner at $1 per share back in 2022.
Its place on the register has diluted slightly from that point, but it remains a kingmaker to Northern Star’s move for De Grey – a bid unanimously recommended by the latter’s board.
Gold Road’s intentions are still to be determined, with no update offered on whether it would accept the Northern Star offer or launch a bid of its own.
It comes as Gold Road reported improvement at the Gruyere gold mine joint venture, which missed calendar year production guidance after flooding earlier in the year.
Gruyere produced 91,631 ounces over the three months to December 31 and its 50 per cent owner Gold Road sold 47,745 ounces of gold at an average price of $4,093 per ounce from an unhedged position.
It was a marked increase from the 68,781oz produced at the project in the September quarter, as the mine bounced back from challenges associated with flooding which impacted performance in the first half of the calendar year 2024.
Production of 287,270oz just fell of annual guidance of 290,000 to 305,000 ounces for Gruyere, but Gold Road said a strong end to the year set the project up for strong 2025 performance.
It ended the quarter with cash and equivalents of 173.9 million and 1,782 ounces on hand.
Gold Road shares climbed 1.2 per cent, to $2.11.
Ramelius ups Spartan stake
The intrigue around Gold Road’s De Grey plans comes as Ramelius Resources confirmed its move to secure its own 19.99 per cent stake in Spartan Resources.
The Mark Zeptner-led gold play jumped on the Spartan register in mid-2024, buying up 8.9 per cent of shares on issue in July and creeping up to 19.99 per cent at the company’s $220 million capital raise in December.
Ramelius spent $68 million on Spartan shares from record underlying cashflow of $174.5 million for the December quarter.
It ended the quarter with $501.7 million of cash and gold in the bank, up from $438.6 million three months earlier.
Ramelius has maintained its investment in Spartan is strategic, in line with its strategy to invest in WA gold where it believes there is strong rationale.
Ramelius shares were up 3.5 per cent today, to $2.18.
