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- Australian gold miner Regis Resources (RRL) has reported record half-year profits for July to December 2019
- In today’s half-year report, Regis recorded growth in sales revenue, earnings, and profits
- This growth came despite slightly lowered gold sales and gold production from its Duketon project
- Still, company management said Duketon is still on track to meet its forecast earnings guidance
- Regis shares are up just under six per cent today, currently worth $4.54 each
ASX 200-listed gold miner Regis Resources (RRL) has tacked on a healthy six per cent to its share price today after its latest half-yearly report.
The share price spike was inspired largely by the company’s record net profit after tax, which peaked at $93.4 million for the half-year from July to December 2019. This figure is 13.5 per cent higher than the same period the year before, which saw Regis pull in just under $80 million in profit.
In fact, compared to the same time in 2018, Regis saw steady growth across the board. Revenue from gold sales over the half-year increased 17 per cent to $370.7 million. On the back of the gold sales, Regis’ recorded earnings before tax, interest, depreciation and amortisation (EBITDA) of $185.6 million for the half-year — 26.78 per cent higher than the year before.
Interestingly, however, Regis sold marginally less gold than the same period in 2018 in terms of ounces sold — the bolstered revenue came from an increased sale price. In the 2018 half-year period, Regis sold 186,000 ounces of gold for an average $1696 per ounce, while in 2019 the company sold 183,000 ounces for an average $2063 per ounce.
Going hand-in-hand with the slightly lower sales volume is a slightly lower production rate for 2019 from Regis’ flagship Duketon project in Kalgoorlie, Western Australia.
In 2018, Regis mined 2.52 million bank cubic metres (bcm) of ore and 13.1 million bcm of waste. In 2019, the company mined 2.06 million bcm of ore and 13.39 million bcm of waste. Still, with a slightly stronger recovery rate, Regis’ total produced gold was only marginally smaller, coming in at roughly 178,000 ounces in 2019 compared to 2018’s 181,000 ounces.
Nevertheless, Regis Managing Director Jim Beyer said the record profits prove the reliability and quality of Duketon.
“We continue to deliver solid cash flow with robust net profit margins of 25 per cent which has allowed the Company to undertake a period of significant capital investment towards the development of the Rosemont underground and new satellite deposits at Dogbolter-Coopers, Baneygo and Petra,” Jim said.
On the back of the record half-year, the company is shelling out a fully franked eight-cent interim dividend to shareholders to reward them for their support.
Looking ahead, Regis said despite the lower production rate, Duketon is still on track to meet its production guidance of between 340,000 and 370,000 ounces of gold.
Just after lunchtime AEDT, Regis shares are trading 5.94 per cent higher at $4.54 per share. The company has a $2.31 billion market cap.
