Gold Road Resources Ltd (ASX:GOR)

May 29, 2015 | Price: $0.47

Growth Portfolio

Overview: Gold Road Resources Ltd (“Gold Road”, “the Company”) is an Australian minerals company focused on gold exploration in Western Australia. Its primary asset the Gruyere Project near Laverton, where Measured, Indicated and Inferred Resources have been delineated totalling 137Million tonnes (Mt) grading 1.24g/t for 5.5million oz. A Scoping Study into a 5Mt pa open pit and underground mining operation was completed during 2015. Gruyere is part of a regional exploration license holding covering 5000km2. A Joint Venture has been established with Sumitomo Metal Mining over approximately 2,900km2 of the licenses where Resources have yet to be delineated.

Catalysts: Economic potential of the Gruyere Project is supported by its progression to a Pre Feasibility Study which is targeted for completion at year’s end. Gruyere’s large scale, long life, and under-explored surroundings have the potential to attract interest from established miners. Deep drilling at Gruyere and appraisal of regional targets are scheduled to further demonstrate the potential of Gold Road’s land package.

Hurdles: Gold Road is reliant on external capital and will require further funding to develop a mining operation in the Yarmana district. There is no guarantee existing resources can be converted into economically recoverable reserves, and that down-trending gold prices won’t continue.

Investment View: Gold Road offers speculative exposure to the gold mining industry. We are attracted to the magnitude of its land package in the Yarmana region, existing resource inventory at Gruyere, and track record of low discovery costs. As the Company advances Gruyere toward PFS completion and demonstrates additional prospectivity within its land package – we expect takeover interest to build and initiate coverage with a ‘spec buy’ recommendation.

May 29, 2015

Spec Buy

$0.47

CORPORATE SUMMARY

TICKER GOR.ASX
INDUSTRY Mining
SHARES ON ISSUE 595.1m
14m options
MARKET CAP $276m
NET CASH $15M
ISSUED CAPITAL $92.5M

ASSET OVERVIEW

NAME Gruyere Gold Project
LOCATION Western Australia
STATUS Resource
ORE RESOURCE 137Mt @ 1.24g/t Au
METAL INVENTORY 5.5m Oz Au

BOARD OF DIRECTORS

CHAIRMAN Ian Murray
EXEC DIRECTOR Justin Osborne
TRACK RECORD
VALUE CREATION Strong
OPERATIONS Strong
CAPITAL MARKETS Fair

SHAREHOLDERS

PLATYPUS ASSET MANAGEMENT 8.6%
VAN ECK 8.3%
RESOURCE CAPITAL FUNDS 5.2%
TOP 20 30%

Disclaimer

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this report is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

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