Regis Resources Limited (ASX: RRL), a mining company which mainly focuses on gold production and exploration, announced its December quarterly update on 23 January 2019.
As stated by Regis Resources Managing Director Mr. Jim Beyer, that they are grateful to report a robust set of results not just on the operations front but also in exploration activities.
The management stated that Gold production has continued as planned and All in Sustaining Costs (AISC) for the year to date are slightly better than expectations. Mr. Beyer also mentioned that in the current financial year Regis’ production would be at the mid to upper end of guidance range, i.e., 340,000-370,000 oz and AISC costs coming in at the lower end of guidance, i.e., $985-1055/oz.
Beyond this year’s production, the management is very pleased to be getting started on the development of mining for their high-grade Rosemont underground project. Based on current schedules, the company is expecting that new high-grade ore source will increase their gold production rates by the end of this year and this trend will continue for at least the next three years.
Duketon Operations: In December 2018 quarter, the Duketon Gold Project reported strong operations with 90,487 ounces of gold produced, (over the prior quarter which was 90,879 ounces). This indicates that the production is in line with the previous quarter and above the midpoint of annual production guidance.
Duketon operations have reported a half year production of 181,366 ounces.
Duketon Northern Operations (DNO): In December quarter, Duketon Northern Operations produced 22,174 ounces of gold at an AISC of $941 per ounce. Production was down from the September quarter due to the fall in processed head grade and throughput at the Moolart Well mill. It is anticipated that the processed head grade will move up slightly and be in the order of 1.0g/t for the March 2019 quarter.
Duketon Southern Operations (DSO): In this quarter, Duketon Southern Operations produced 68,313 ounces of gold at an AISC of $1,000 per ounce. Gold production was high from the September quarter due to an increase in processed head grade and mill recovery as a result of the ore feed from Tooheys Well commencing during the quarter. Throughput was marginally impacted due to lower availability from a scheduled mill reline and major mill shutdown.
Mining volumes were up 8% compared to the previous quarter. This represents an improved equipment utilization which allows additional waste movement at Tooheys Well. Due to this, strip ratio’s at Duketon Southern Operations increased to 8.4 in the December 2018 quarter.
The Duketon project reported an operating cash flow of $76.4 million in December quarter, (over the prior quarter which was $77.9 million). During the quarter, Regis sold 114,966 ounces of gold at an average price of A$1,718 per ounce up, (over the prior quarter Regis sold 71,310 ounces at A$1,660 per ounce).
Stock performance: On 23 January, the shares of RRL closed the day’s session at A$4.950, down by 3.774%. Today, the shares have plunged by 4.85%, trading at A$4.71 (as at 12:52 PM, 24 January 2019). The company has 507.7 million outstanding shares with the market cap of circa $2.51 Billion. The stock has delivered the negative return of 1.59% over the past six months. During the last one month, RRL delivered the positive return of 4.87%.
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