- Regis Resources (RRL) increases production in the June quarter following the partial acquisition of the Tropicana Gold Project in Western Australia
- The company acquired the project in May which contributed 17,317 ounces of gold at an all-in sustaining cost (AISC) of $2121 per ounce
- Regis’ Duketon Gold Project saw a record production of 96,829 ounces at an AISC of $1254 per ounce
- Positively, cash and bullion increased from $202 million at the end of the March quarter to $269 million at the end of June
- Company shares are up 7.66 per cent to trade at $2.67
Regis Resources (RRL) increased production in the June quarter following the 30 per cent acquisition of the Tropicana Gold Project in Western Australia.
Quarterly production totalled 114,145 ounces of gold at an all-in sustaining cost (AISC) of $1387 per ounce.
Gold sales totalled $279 million at an average realised price of $2222 per ounce.
Broken down, the Duketon Gold Project saw a record production of 96,829 ounces at an AISC of $1254 per ounce which marks an improvement from the 85,748 ounces at an AISC of $1388 per ounce produced in the previous quarter.
Duketon is made up of the Rosemount, Moolart Well and Garden Well areas with Garden Well producing the highest amount of gold during the quarter.
The Tropicana Gold Project, which was partly acquired in May, contributed 17,317 ounces at an AISC of $2121 per ounce. The high AISC reflects high strip ratios and low production due to relatively low mill head grades.
Regis acquired 30 per cent of the project by paying IGO (IGO) $888.6 million which it funded through a combination of a $650 million equity raise and a $300 million loan facility.
The company said the transaction helped to expand and diversify its production profile, strengthen operating cashflows and add multiple near mine growth opportunities.
Over FY21, Regis produced 372,870 ounces of gold at an AISC of $1373 per ounce.
Tropicana is targeted to produce between 450,000 and 500,000 ounces of gold after the 2022 financial year.
Positively for the company, cash and bullion increased to $269 million from $202 million at the end of the March quarter.
Company shares were up 7.66 per cent to trade at $2.67 at 12:46 pm AEST.