Gold Road Resources – Update

Gold Road Resources is under Algo Engine buy conditions and along with NCM is our preferred gold exposure.

The company provided financial statements for the 6 month period ending June 30, which displayed revenue $135mn, EBIT, $36mn and EPS of $0.026.

Key points include:

Gold Road repaid all debt whilst retaining the undrawn facility of A$100M (US$71M). Net cash and equivalents of A$84M (US$60M) at 30 June 2020.

71,865 ounces produced* at attributable AISC of A$1,233/oz (US$875/oz)2.

Quarterly free cash flow of A$23.8M (excl. unsold bullion
and dore).

GDX – Gold ETF

The below post is a copy of a publication on the 18th of October. Since making the post, gold stocks have performed well and we now look to trim the gains and rotate into oversold industrial & REIT names.

Vaneck Vectors Gold Miners  is under Algo Engine buy conditions following the entry condition earlier this year at $30. It is a current holding in our ALL ASX ETF model portfolio.

GDX ETF has corrected from $45 to $38 over the past 8 weeks. We feel buying support will now begin to increase.

Individual names are also now appearing on the radar, such as Newcrest Mining Northern Star Resources, Evolution Mining, OceanaGold and Gold Road Resources.