Regis Resources slips after approval for Havana underground mine
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More news: Shares in Regis Resources have dropped more than 3% to $1.72 after the gold producer said its joint venture with Anglogold Ashanti has approved the development of the underground Havana mine in WA.
The green light will result in Regis' share of incremental capital expenditure of $34 million, for an incremental production of 55,000 ounces, with first additional gold production targeted in the third quarter of FY27.
RBC Capital Markets analyst Alex Barkley said the formal announcement shifts production entirely onto underground, with reserve stockpiles depleted by FY26.
What they said: "In FY29 we expect a substantial drop in production to 50,000 ounces from 125,000 oz in FY28. Strong potential for underground extensions and expansion means our current life-of-mine production forecasts could be conservative," the analyst said in a note.
"Our underground estimates remain at the current ~2Mtpa being produced from the steady-state Boston Shaker."
Regis JV approves development of Havana project
The news: Gold producer Regis Resources’ joint venture with Anglogold Ashanti has approved the underground development of the Havana project.
The numbers: The green light for the project will expand operations at the JV’s Tropicana mine in Western Australia.
Regis said its 30% share in the project will involve incremental capital expenditure of $34 million, for an incremental production of 55,000 ounces, with first additional gold production targeted in the third quarter of FY27.
The context: The Havana underground project, which will be the third mine at Tropicana, will deliver incremental production primarily between 2027 and 2029, the company said.
Regis last month reported a hefty net loss after writing down the value of its its under development McPhillamys project in New South Wales.
The sources: ASX announcement, RBC Capital research
