On 19 October 2018, Regis Resources Limited (ASX: RRL) released its September quarter report and exploration update. Following which the share price of the company increased by 4.125 percent as on 19 October 2018.
The company announced that in September quarter it has produced 90,879 ounces of gold which is in line with the last quarter production result and it is above the midpoint of FY 2019 production guideline of 340- 370Koz. The stripping ratio for the first quarter of FY 2019 declined from 4.4 in the previous quarter to 7.
The Pre-royalty cash cost for the quarter is $793 per ounce and all in sustaining cost is $923 per ounce, both of these costs are well below the lower end of FY 2019 guidance. The first ore mined and stockpiled at Tooheys Well is ready and it is planned for delivery to the Garden Well processing facility in the second quarter of FY 2019.
During the September quarter of 2018, the drilling focused on near mine exploration across key projects. A total of 56,074 metres of drilling was completed as part of the resource/reserve extensional drilling programmes while 21,343 metres was completed at other gold prospects and across regional targets. During the quarter, the company sold 71,310 ounces of gold at an average price of $1,660 per ounce.
In the September quarter, the company paid $40.6 million in dividends. The capital expenditure increased by $15.3 million due to prestrip of new satellite projects and TSF lifts. Moreover, $1.9 million was spend on long lead items for Rosemont Underground. At the end of the quarter, the company was having cash and bullion of $77.9 million.
At Duketon, the gold production was increased by 10 percent as compared to the previous quarter due to the 9 percent increase in head grade through the Moolart Well processing facility. The processed grade improved during the quarter due to the recommencement of mining at the Gloster satellite deposit which provided higher grade ore for processing. In the latter part of the September quarter, the focus was to mine more ore at the Gloster deposit to replenish the satellite ore stockpile in anticipation of the mining fleet being relocated to the Dogbolter and Anchor deposits to continue pre-production mining of these projects. In New South wales (NSW), seven DD holes were completed during the quarter at the Discovery Ridge satellite gold deposit to infill the existing resource and test the northern down plunge extension of mineralization.
In September quarter, the company appointed Mr. Jim Beyer as the Managing Director and Mr. James Mactier as Non-Executive Chairman as part of board and management succession planning.
In the last six months, the share price of the company decreased by 17.01 percent from $4.820 to $4.00 as on 18 October 2018, and traded at a PE level of 11.560x. RRL’s shares traded at $4.165 with a market capitalization of circa $2.03 billion as on 19 October 2018 (AEST 2:00 PM).
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