Regis Resources (ASX:RRL) shares jump as it posts record gold production

July 05, 2022 12:21 PM AEST | By Ashish

Regis Resources (ASX:RRL) shares jump as it posts record gold production — Image source: © Theohudayanto | Megapixl.com

Highlights

Regis Resources’ total gold production rose 20% to a quarterly record of 123.9koz.

Regis said its overall annual gold production of 437koz was consistent with its FY22 production guidance.

Regis expects the annual production to further rise in FY23.

Regis Resources Ltd (ASX:RRL) on Tuesday announced a record rise in gold production in the June quarter of 2022. The ASX-listed mid-tier gold producer’s total gold production rose 20% to a quarterly record of 123.9koz, Regis Resources said in its latest production update. Regis Resources also expects the annual production to further rise in FY23.

Following this update, shares of Regis Resources were trading at AU$1.54, up 5.86% at 10:10 AM (AEST). The stock has fallen over 19% on a year-to-date (YTD) basis and over 40% in the past year. The share price has declined over 20% in the past month.

Regis Resources also said that its overall annual gold production of 437koz was “consistent with FY22 production guidance of 420koz-475koz.” Notably, the overall annual production recorded a 17% rise on FY21 annual production. While Duketon’s gold production surged 24% to 92.8koz, Tropicana’s gold production rose 10% to 31.1koz

What did Regis Resources’ management say?

Regis Resources’ Managing Director Jim Beyer said, “We have seen reliable delivery on our improvement plans that were developed and implemented to address the operational challenges we experienced in the first half of the year. This has seen the company deliver an improved performance despite the challenging external conditions.”

Beyer also said that latest production was comfortably within the company’s FY22 production guidance. Regis would now release its full June quarter report including FY23 production and cost guidance on 26 July 2022.

Regis Resources’ half-year results

For the half-year ended 31 December 2021, Regis Resources reported a 69% fall in net profit after tax (NPAT) to AU$26.5 million. But Regis reported a 22% rise in revenue to AU$489 million from 216,651 ounces of gold sold at an average price of AU$2,256 per ounce.

Regis Resources’ EBITDA stood at AU$196 million, while EBITDA margin was 40%.

Meanwhile, the share price of Regis Resources was in the news a couple of days back amid reports that mining billionaire Andrew Forrest was looking to raise his stake in the gold producer. The report stated that Forrest was looking to acquire a 15% ownership in Regis for AU$1.48 per share, valuing the stake at AU$168 million.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.