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Highlights
- RRL’s gold sales surged by 12% YoY in FY23 to AUD 1,133.7 million.
- Van Eck Associates Corporation has the maximum stake in RRL, with a shareholding of circa 9.71%.
- By the end of FY24, the company expects the hedge book to be closed out.
- Free cash flow is expected to increase in FY24 and further accelerate in FY25.
Regis Resources Limited (ASX:RRL), which claims itself to be the fourth largest Australia-based gold producer on ASX, has operations in the Duketon and Tropicana gold belts. The company is also engaged in tapping opportunities via gold exploration, assessment and development activities in the Western Australian and New South Wales regions.
In the financial year 2023 (FY23), RRL registered double-digit growth in gold sales as it increased by 12% YoY to AUD 1,133.7 million. During the stated period, 458,893oz of gold was sold at an average price of AUD 2,471 per ounce, and gold production stood at 458koz at an AISC of AUD 1,805 per ounce.
The period saw a statutory net loss after tax of AUD 24 million, comprising a pre-tax AUD 115 million adverse impact from the hedge book.
In FY23, the company paid a 100% franked dividend of AUD 15 million.
Here’s the historical financial trend of RRL.
Top 10 shareholders of RRL
The top 10 shareholders of RRL have nearly 36.72% shareholding in the company, while the top four shareholders have nearly 23.16% stake in the firm. Van Eck Associates Corporation and Dimensional Fund Advisors, L.P. have the highest stake in RRL, with a shareholding of ~9.71% and ~5.00%, respectively.
Recent business updates
Through an ASX filing dated 7 September 2023, the company informed that shareholding of its director, Paul Arndt, has increased in the company as he acquired 19,026 ordinary shares for a consideration of AUD 29,903.68.
On 24 August 2023, the company announced that its annual general meeting (AGM) for the financial year ended 30 June 2023, will be held on 23 November 2023.
Outlook
In FY24, the company expects to deliver gold production of 415-455koz at an AISC of AUD 1,995-2,315/oz, including AUD 200/oz of non-cash stockpile draw. Free cash flow is projected to improve in FY24 and accelerate in FY25.
The company intends to deliver production of 500koz in FY27.
By the end of FY24, the hedge book is expected to be closed out. With this development, RRL is expected to witness an increase of over AUD 150 million in pre-tax cash flow.
Share performance of RRL
RRL shares closed 1.96% down at AUD 1.5 apiece on 26 September 2023, with a market capitalization of AUD 1.17 billion. With this, RRL's share price has appreciated by 9.49% in the past one year and dropped by almost 20% in the last three months.
The 52-week high of RRL is AUD 2.46 apiece, recorded on 14 April 2023, while the 52-week low is AUD 1.355 apiece, recorded on 27 September 2022.
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency, is 26 September 2023. The reference data in this report has been partly sourced from EODHD/Others.
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