Regis Resources (ASX:RRL) shares jump as it posts record gold production

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Highlights

  • Regis Resources’ total gold production rose 20% to a quarterly record of 123.9koz.

  • Regis said its overall annual gold production of 437koz was consistent with its FY22 production guidance.

  • Regis expects the annual production to further rise in FY23.


Regis Resources Ltd (ASX:RRL) on Tuesday announced a  record rise in gold production in the June quarter of 2022. The ASX-listed mid-tier gold producer’s total gold production rose 20% to a quarterly record of 123.9koz, Regis Resources said in its latest production update. Regis Resources also expects the annual production to further rise in FY23.

Following this update, shares of Regis Resources were trading at AU$1.54, up 5.86% at 10:10 AM (AEST). The stock has fallen over 19% on a year-to-date (YTD) basis and over 40% in the past year. The share price has declined over 20% in the past month.

Regis Resources also said that its overall annual gold production of 437koz was “consistent with FY22 production guidance of 420koz-475koz.” Notably, the overall annual production recorded a 17% rise on FY21 annual production. While Duketon’s gold production surged 24% to 92.8koz, Tropicana’s gold production rose 10% to 31.1koz

What did Regis Resources’ management say?

Regis Resources’ Managing Director Jim Beyer said, “We have seen reliable delivery on our improvement plans that were developed and implemented to address the operational challenges we experienced in the first half of the year. This has seen the company deliver an improved performance despite the challenging external conditions.”

Beyer also said that latest production was comfortably within the company’s FY22 production guidance. Regis would now release its full June quarter report including FY23 production and cost guidance on 26 July 2022.

Regis Resources’ half-year results

For the half-year ended 31 December 2021, Regis Resources reported a 69% fall in net profit after tax (NPAT) to AU$26.5 million. But Regis reported a 22% rise in revenue to AU$489 million from 216,651 ounces of gold sold at an average price of AU$2,256 per ounce.

Regis Resources’ EBITDA stood at AU$196 million, while EBITDA margin was 40%.

Meanwhile, the share price of Regis Resources was in the news a couple of days back amid reports that mining billionaire Andrew Forrest was looking to raise his stake in the gold producer. The report stated that Forrest was looking to acquire a 15% ownership in Regis for AU$1.48 per share, valuing the stake at AU$168 million.


 


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