Perth based gold production and exploration company, Regis Resources Limited (ASX: RRL) has reported consistent quarterly gold production of 91,087 ounce in March quarter. The quarterly production was in line with the previous quarter and above the midpoint of FY19 guidance.
During the March quarter, the company’s Duketon project generated operating cash flow of $89.3 million, an increase from the $76.4 million recorded in the previous quarter due to a higher delivered gold price.
The company sold 76,817 ounces of gold during the quarter at an average price of A$1,838 per ounce compared to 114,966 ounces at A$1,718 per ounce in the December 2018 quarter. As per the company’s announcement, the Physical gold sales were lower than the previous quarter due to the timing of gold deliveries at the end of the month which resulted in a significant balance of gold on hand at the end of the March quarter.
At the end of March, the company had a total of 25,236 ounces of gold on hand which was subsequently sold in early April 2019 at an average price of $1,842 per ounce.
During the quarter, the company commenced the development of its first underground operation at Duketon. In February 2019, the company began the Portal development at the southern end of the Rosemont Main open pit, representing an important step in delivering on the underground growth strategy that Regis has been pursuing at Duketon.
The company is expecting to see its first development ore during the upcoming September quarter.
For FY 2019, the company is expecting gold production to be in the mid to upper range of 340,000-370,000 oz and AISC at the lower end of guidance between $985-1055/oz.
During the quarter, the company announced a half year net profit after tax of $79.9 million for the six months to 31 December 2018, representing a 6% decrease from the record first half net profit after tax of $84.6 million reported in FY18. Further, the company declared a fully franked interim dividend of 8 cents per share which was paid in March 2019, representing a payout ratio of 13% first half revenue and 51% of net profit after tax for the six months.
As per the company’s Managing Director, Jim Beyer, the 2019 March quarter was a solid production quarter which continued the excellent start in the first half of the year.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $4.790, down by 1.033% during the day’s trade with a market capitalisation of ~$2.46 billion as on 29 April 2019. The counter opened the day at $4.800 and reached the day’s high of $4.870 and touched a day’s low of $4.775 with a daily volume of ~ 1,378,764. The stock has provided a year till date return of 1.89% & also posted returns of 10.25%, -6.20% & -8.68% over the past six months, three & one-month period respectively.
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