Gascoyne Resources Ltd (ASX:GCY) has met guidance, delivering gold production of 71,153 ounces for the 2022 financial year from the Dalgaranga Gold Mine in Western Australia.
This is within the company’s full-year production guidance range of 70-75,000 ounces.
Gold production for the June quarter, at 16,298 ounces, was down on the record of 21,669 ounces achieved in the March quarter, reflecting the impacts of inclement weather and significantly increased COVID-19 cases in Western Australia over the past few months.
Considerable near-mine exploration success
Despite this, the company posted a solid quarter at Dalgaranga and achieved full-year guidance, while at the same time enjoying considerable near-mine exploration success as reported during the quarter.
The company poured 16,597 ounces of gold and sold 16,882 ounces at an average realised price of $2,620 per ounce, all unhedged, generating more than A$44 million in revenue in the June quarter.
Following the repayment of the remaining $10 million of convertible note debt on March 31, 2022, Gascoyne remains free of corporate debt and also remains gold-hedge free.
Solid cash position and debt-free
Gascoyne’s net cash position at the end of the June quarter was $30.8 million, just a slight reduction on the net cash position of $31.2 million at the end of the March quarter.
This is notwithstanding that the company invested $3 million in delineating future sources of production through highly successful exploration and resource definition drilling at Gilbey’s North, Gilbey’s Eastern Footwall and Plymouth.
Managing director Simon Lawson said: “We were challenged by a range of factors during the June quarter, but we have been able to meet these challenges head-on and deliver a full-year production outcome in line with our guidance numbers.
“A combination of rain events and increased absenteeism caused by COVID-19 impacted our mining activities during the quarter, but the team has worked extremely hard to ensure that we could deliver on our undertakings to the market in a safe and environmentally responsible manner."
“A future that looks increasingly bright”
“Our balance sheet remains very healthy with a net cash balance in excess of A$30 million, no corporate debt and no gold hedges in place. This enables us to continue to invest in our future – a future that looks increasingly bright as new zones of mineralisation continue to be delineated at Gilbey’s North and Gilbey’s Eastern Footwall," he said.
"Like all mining companies in Western Australia, we are faced with the challenge of increased input costs and increased competition for personnel. We continue to do all we can to proactively manage our cost base and we have had good success in retaining our employees.
“Where we have had to replace an employee, our value proposition as an employer has proven successful in attracting new employees.”