Regis Resources (ASX:RRL) - Managing Director and CEO, Jim Beyer
Managing Director and CEO, Jim Beyer
Source: Regis Resources
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Regis Resources (RRL) slips in early trade after flagging soft quarterly production and sales figures over the three months to the end of September
  • The company says it produced 102,000 ounces of gold over the September quarter compared to the 114,000 ounces produced over the June quarter this year
  • At the same time, Regis tabled $179 million in quarterly sales revenue — almost 36 per cent lower than the $279 million in sales revenue last quarter
  • Managing Director Jim Beyer the September quarter was always expected to be soft, but some unplanned short-term operational issues made things worse than expected
  • Shares in Regis Resources are down 3.07 per cent and trading at $2.21 at 11:28 am AEDT

Gold miner Regis Resources (RRL) has slipped in early trade after flagging soft quarterly production and sales figures over the three months to the end of September.

The company this morning told investors it produced just under 102,000 ounces of gold over the quarter at an all-in sustaining cost (AISC) of $1521 per ounce.

For reference, Regis produced over 114,000 ounces of gold at an AISC of $1387 per ounce over the June quarter this year.

Meanwhile, the ASX 200-lister sold around 82,000 ounces of gold at an average of $2178 per ounce over the September quarter, translating to roughly $179 million in quarterly sales revenue — almost 36 per cent lower than Regis’ sales revenue the quarter before.

Over the three months to the end of June, Regis sold just under 125,000 ounces of gold a $2222 per ounce for $279 million in sales revenue.

Managing Director Jim Beyer said the September quarter was a “difficult” one for the company, though Regis had already anticipated the lower production as per its 2022 financial year guidance.

“While the quarter was always expected to be soft due to activity schedule, some unplanned short term operational issues did arise,” Mr Beyer said.

“These impacted on production timing and are expected to be recovered over the remaining financial year.”

Higher quarterly expenses saw the company’s cash position dip in September, with Regis holding $208 million in cash and bullion at the end of September, compared to the $269 million held at the end of June.

The lower cash position was largely driven by increased capital expenditure for Regis’ flagship Duketon and Tropicana projects, which combined cost the company $77 million over the September quarter, compared to $47 million in the June quarter.

Regis said the bulk of the extra spending came from increased pre-strip costs, deferred waste costs, and infrastructure costs. However, dividend payments, income tax, and exploration costs also drove quarterly expenditure higher.

What’s next for Regis?

Despite the lower quarterly production and sales numbers, Regis maintained its 2022 financial year guidance, forecasting annual production of between 460,000 ounces and 515,000 ounces of gold between Duketon and Tropicana.

Regis predicted full-year C1 costs of between $1070 and $1135 per ounce, with annual AISC pegged at between $1290 and $1365 for FY22.

Shares in Regis Resources were down 3.07 per cent and trading at $2.21 at 11:28 am AEDT. The company has a $1.68 billion market cap.

RRL by the numbers
More From The Market Herald
The Market Herald Video

" Pilbara Minerals (ASX:PLS) set to increase production at Pilgangoora

Pilbara Minerals (ASX:PLS) is set to increase spodumene production at its Pilgangoora operation to 680,000 dry…
The Market Herald Video

" Liontown Resources (ASX:LTR) lands offtake agreement with Ford, reaches FID decision

Liontown Resources (ASX:LTR) has executed a binding offtake agreement and funding facility with global automaker, Ford.
The Market Herald Video

" Northern Star Resources (ASX:NST) looks to expand Kalgoorlie Super Pit

Gold miners Northern Star Resources (ASX:NST) flags potential to spend up to $1.4 billion to expand…
The Market Herald Video

" OIO approves Ampol’s (ASX:ALD) sale of Gull New Zealand

Ampol (ASX:ALD) has confirmed the sale of its Gull business in New Zealand to Allegro Funds…