Why Regis (ASX:REG) lowered its full-year production guidance

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Why Regis (ASX:REG) lowered its full-year production guidance

 Why Regis (ASX:REG) lowered its full-year production guidance
Image source: Jaromir Chalabala,shutterstock

 Highlights

  • Regis Resources has lowered its production guidance for the full year.
  • The company expects a rise in production in the second half of the current year.
  • At 10:18 AM (AEST), the stock was trading at AU$1.78, down nearly 2%.

Regis Resources Ltd (ASX:RRL) on Monday announced a change in its production guidance following a technical incident involving a wall slip at its Rosemont main pit. The gold production and exploration firm noted that other operational challenges have also restricted its ability to absorb the loss of high-grade feed.

The full-year production guidance for the company’s Duketon operations has been lowered to 300,000 to 340,000 ounces, from 340,000 to 380,000 ounces. Total production is now likely to be in between 420,000 and 475,000 ounces, down from 460,000 to 515,000 ounces.

However, the production guidance for the company’s Tropicana operations continues to remain unchanged.

“As a consequence, the all-in sustaining cost (AISC) guidance range for Duketon is now $1540 to 1610 an ounce, up from $1340 to 1410 an ounce. The company range is now $1425 to 1500 an ounce, up from $1290 to 1365 an ounce. The guidance for Tropicana is unchanged in relation to costs,” Regis said in its latest FY22 guidance update.

Source: © Theohudayanto  | Megapixl.com

Expectations of a rise in production in second half

The company expects a rise in production in the second half of the current year. The lift in production is due to “increased mill feed-grade at its Moolart well, increased mill feed grade and throughput at its Garden Well and increased underground mine grade at Rosemont.”

 Regis’ stock price

 The company’s stock has delivered a negative year-to-date (YTD) return of nearly 10%. In the past year, the stock fell over 51%. In the past month, the stock fell by nearly 10%.

At 10:18 AM (AEST), the stock was trading at AU$1.78, down nearly 2%.

 

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