Gold Road Lowers 2025 Production to 310,000–320,000 Ounces Amid Operational Setbacks
Gold Road Resources has lowered its 2025 gold production guidance and raised cost estimates following operational setbacks at the Gruyere joint venture mine.
- 2025 gold production guidance reduced to 310,000–320,000 ounces
- Attributable production now expected between 150,000–160,000 ounces
- All-in Sustaining Costs (AISC) revised upward to A$2,600–2,800 per ounce
- Operational issues include primary crusher maintenance and conveyor belt failures
- Mining ramp-up progressing slower than anticipated at approximately 68 million tonnes annually
Production Guidance Revision
Gold Road Resources Limited has announced a downward revision to its 2025 full-year gold production guidance, citing operational challenges at the Gruyere gold mine. The joint venture, equally owned by Gold Road and Gold Fields Ltd, has encountered maintenance issues with its primary crusher and failures in conveyor belt systems, alongside lower than expected ore volumes. These factors have collectively contributed to a production shortfall year-to-date.
Updated Production and Cost Expectations
As of 31 August 2025, total gold production at Gruyere stands at 196,554 ounces on a 100% basis, falling short of earlier projections. Consequently, the company now anticipates annual production between 310,000 and 320,000 ounces, down from the previous range of 325,000 to 355,000 ounces. Gold Road’s attributable share is expected to be between 150,000 and 160,000 ounces, a notable decrease from prior guidance.
Alongside the reduced output, the All-in Sustaining Cost (AISC) per ounce is expected to rise to between A$2,600 and A$2,800, compared to the earlier forecast of A$2,400 to A$2,600. This increase reflects the operational disruptions, although partially offset by lower overall mining expenditure.
Operational Ramp-Up and Future Outlook
Mining activity is currently running at an annualised rate of approximately 68 million tonnes, with the planned ramp-up of total movement rates progressing more slowly than anticipated. The company’s management, led by CEO Duncan Gibbs, will likely focus on resolving these operational bottlenecks to stabilise production levels and control costs moving forward.
While the revised guidance signals a challenging period for the Gruyere joint venture, the company remains committed to addressing these issues. Investors will be watching closely for updates on operational improvements and any further impact on production and cost metrics.
Bottom Line?
Gold Road’s revised guidance underscores operational risks at Gruyere, setting the stage for a critical period of recovery and cost management.
Questions in the middle?
- What specific measures are being implemented to resolve the primary crusher and conveyor belt issues?
- How will the slower mining ramp-up affect longer-term production targets beyond 2025?
- What impact might these operational challenges have on the joint venture partnership dynamics with Gold Fields?
