Regis Resources Shares Up By ~2.25% On ASX- A Quick Look

Regis Resources Limited (ASX:RRL) is into gold mining and is engaged in the development and exploration of gold within Australia and Africa region. McPhillamys Gold Project in the Central Western region of New South Wales and Production of gold from Duketon Gold Project in the North Eastern Goldfields have been key to the group’s operations. The 100% Duketon Gold Project which is about 130 kilometres north of Laverton in Western Australia expands through its three principal gold mining projects at Moolart Well, Garden Well and Rosemont.

Although the company has not disclosed any price sensitive information today (15 February 2019), the share price of the company is up by 2.251% on ASX.Â

The company continues to drive a performance-based culture, underpinned by its values. It has demonstrated a commitment to the effective environmental management of all activities, with the board focusing on ESG and safety. The company consistently maintains a sustainable performance and a positive work culture to increase productivity.

In the corporate presentation for January 2019, the company informed that it has achieved a record gold production in FY2018 with 361,373 oz gold at A$901/oz AISC, an 11% increase in ounces produced. There has been an 86% increase in the ore reserves to 4.06 million ounces in FY18.

In FY 2018 the company’s revenue increased by 11.0% to A$604 million. Further, the company’s EBITDA increased by 23% to A$312 million. The Net profit after tax was up 26% to A$174 million. In FY 2018, the company had strong dividend growth, with dividend payments increased by 7% to 16 cents per share, putting cumulative dividend payments at A$326 million since 2013. In FY 2018, the All-in sustaining costs reduced by 5% to A$901 per ounce. Cash and bullion at 30 June 2018 were of A$208.8 million, an increase of A$57 million. Earnings per share increased by 25% to 34.6 cents per share.

The key investment highlights of the company include a reporting of its consistent and continuous production performance from the Duketon Operations in Western Australia. It maintained a portfolio of growth projects with McPhillamysand Discovery Ridge being one of Australia’s largest undeveloped open pittable gold resources. Regis maintained a low-cost gold production.

The Q2 highlights for FY19 include the unchanged guidance with gold production in the mid to upper range of 340,000 -370,000 oz and AISC at the lower end of guidance between A$985-1055/oz. The company has reported Quarterly production of 90,487 ounces for December quarter which is above the midpoint of FY2019 guidance and it also reported AISC of A$985 per ounce which is at the lower end of FY2019 guidance.

On the price-performance front, the stock of Regis Resources last traded at $5.450, increased by 2.251% during the day’s trade with a market capitalisation of $2.71 billion. The stock has generated a YTD return of 12.21% and posted significant returns of 23.95%, 28.43% and 10.58% over the last six months, three months and one-month period respectively. It has a 52-week high price of $5.510 and a 52-week low price of $3.650 with an average trading volume of ~2.71 million. The stock is trading at a PE multiple of 15.40x with an EPS of AUD 0.346 and with an annual dividend yield of 3.0%

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