Regis Resources (ASX:RRL) - Managing Director and CEO, Jim Beyer
Managing Director and CEO, Jim Beyer
Source: Regis Resources
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  • Regis Resources (RRL) announces an increase in gold production from its Duketon and Tropicana gold projects in Western Australia for the December quarter
  • The gold miner produced 108,281 ounces of gold at an all-in sustaining cost (AISC) of $1,530 per ounce, up from 101,989 ounces in the September quarter
  • Regis sold 136,057 ounces of gold for $313.4 million, up from 82,050 ounces sold for $178.7 million in the prior quarter
  • Due to a recent geotechnical incident, Regis downgraded its Duketon FY22 gold production guidance from 340,000-380,000 ounces to 300,000-340,000 ounces, taking group production guidance from 460,000-515,000 ounces to 420,000-475,000 ounces
  • RRL shares are trading 12.6 per cent lower

Regis Resources (RRL) has reported an increase in gold production for the December 2021 quarter but has downgraded its FY22 guidance for its Duketon operation in Western Australia.

The gold miner produced a total of 108,281 ounces at an all-in sustaining cost (AISC) averaging $1,530 per ounce, up from 101,989 ounces in the September quarter.

Production came from Duketon in the state’s North-Eastern Goldfields region and the Tropicana joint venture project located 330 kilometres east-northeast of Kalgoorlie.

Duketon comprises the Moolart Well, Garden Well and Rosemont mines, which produced a combined total of 74,829 ounces of gold at an AISC of $1,728 per ounce, with Garden Well contributing 34,421 ounces in the three-month period at $1,618 per ounce.

Following closely behind was the Tropicana JV, which accounted for 33,453 ounces of Regis’ total gold output at an AISC of $1,002 per ounce.

It owns a 30 per cent stake in the Tropicana gold operation, with the majority 70 per cent owned by ASX-listed AngloGold Ashanti (AGG).

Regis sold 136,057 ounces of gold during the December quarter for revenue of $313.4 million, compared with the September quarter’s 82,050 ounces in sales fetching $178.7 million.

The company downgraded its production guidance for the Duketon operation and increased its cost guidance for the 2022 FY after a wall slip at the Rosemont main pit and other operational challenges limited its ability to absorb the loss of high-grade feed.

The revised production guidance for the Duketon operation stands at between 300,000 and 340,000 ounces of gold, down from 340,000-380,000 ounces, while its guidance for Tropicana remains unchanged for FY22.

Total Regis group production guidance has decreased from 460,000-515,000 ounces to 420,000-475,000 ounces.

The AISC guidance for Duketon now ranges from $1,540 to $1,610 per ounce, up from $1,340-$1,410 per ounce, and overall comes in at between $1,425 and $1,500 per ounce, compared with the previous estimate of $1,290-$1,365 per ounce.

“Whilst disappointed with the commercial impacts of the recent geotechnical slip, we were pleased to see our geotechnical monitoring and safety management protocols ensured no people were harmed,” Managing Director Jim Beyer said.

The $1.5 billion-dollar company generated operating cashflow of $21.2 million from Duketon and $46.2 million from Tropicana in the December quarter for a total of $67.4 million, down from $92.5 million in the preceding quarter.

At the end of the quarter, Regis had a cash and bullion balance of $180 million.

The company expects stoping to commence at the Garden Well South underground mine towards the end of the June quarter and a study relating to a potential new underground production area under the Garden Well main pit to be completed later this quarter.

RRL shares were down 12.6 per cent to $1.84 at 1:40 pm AEDT.

RRL by the numbers
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