GOR is down -5% year-to-date, putting it in the middle of the pack of ASX gold stocks from a performance perspective. In our opinion, the stock currently screens expensively; hence, we aren’t planning to switch our gold exposure across our portfolios at this stage.
GOR has proven to be a high beta play on the gold price while in general, it has underperformed the overall ASX gold sector. While we believe the stock will follow the underlying gold price we don’t see the need to take on the increased volatility that the stock has delivered post-COVID, there’s already plenty on offer with the majors!
We chose to look at GOR this morning because it’s been a standout underperformer so far this year which by definition makes it a prime candidate for a sharp bounce i.e. year-to-date GOR is down -13.7% compared to NCM which has rallied +3.2%. This $1.2bn WA company has recently acquired DGO Gold with no competition but the stock continues to move in an amplified manner to the underlying gold price. We feel this is a great vehicle...
Gold Road Resources Limited is an Australia-based company that is primarily engaged in mine operations through a joint venture22, sale of gold and mineral exploration. The Company’s segments include Operations and Exploration. The Operations segment consists of the Gruyere joint operation with Gold Fields. The Exploration segment includes the activities of all mineral exploration, including all joint venture tenements. The Company’s projects include Gruyere Gold Mine and the Golden Highway. Its Gruyere Gold Mine is located approximately 1,200 kilometers northeast of Perth in Western Australia’s north-eastern Goldfields, is a 50:50 joint venture between Gold Road and Gruyere Mining Company Pty Ltd. The Golden Highway is located approximately 25 kilometers west of the Gruyere Gold Mine on the western side of the Yamarna Greenstone Belt. Its discovery includes Yamarna Terrane, which is located approximately 200 kilometers east of Laverton in Western Australia.
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