Gold Road Resources Limited

This report is an updated version of the report published on 30 September 2024 at 12:26 PM AEST.

Section 1: Company Overview and Fundamentals Insights

Section 1.1: Company Overview: Gold Road Resources Limited (ASX: GOR) is an Australian company engaged in gold exploration and production activities. Its Tier 1 mine and exploration projects cover over 14,000 square kilometres across Western Australia, South Australia, and Queensland. The company owns 50% of the Gruyere gold mine. Kalkine’s Investor Report covers the Investment Highlights, Key Financial Metrics, Risks, and Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~29.65% of the total shareholding. Van Eck Associates Corporation and State Street Global Advisors Australia Ltd. are holding maximum stakes of 10.44% and 3.89%, respectively. 

1.4 Key Metrics: GOR’s quick ratio is recorded at 1.47x in 1HFY24 vs Industry Median of 1.32x. Below is captured other metrics:

Section 2: Business Updates, Financial and Operational Highlights

2.1 Recent Business Updates:

2.2 1HFY24 Results Highlights (for the 6 months ended 30 June 2024): Below mentioned are some key financial highlights:   

2.3 Historical Financial Trend

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

The stock has declined by ~2.00% in the last three months, and over the nine months, it decreased by ~12.98%. The stock has a 52-week low and 52-week high of AUD 1.365 and AUD 2.040, respectively, and is currently trading below the 52-week high-low average.

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 30 September 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.