Regis Resources extends gains as Morgans hikes target price
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The news: Regis Resources extended recent gains on the ASX after Morgans hiked its target price on the gold miner.
The numbers: Regis shares were up 3.7% to $2.38 by 12:15pm AEDT, after seeing steady daily increases since reporting a positive September quarter result last week.
Morgans reiterated its 'add' rating and lifted its 12-month target price from $2.01 to $3.22.
The context: Morgans analyst Ross Bennett said the prevailing gold price enables Regis to produce "substantial" free cash flow funding growth, debt repayment, strong earnings metrics, dividends and buy-backs.
He noted that Regis' hedge book closure in FY24 "fully exposes" the miner to spot gold prices and improves earnings metrics from its Tropicana and Duketon South mines.
Meanwhile, Bennett flagged that Environment Minister Tanya Plibersek's recent refusal to approve the miner's McPhillamys gold mine effectively halts project development, resulting in a $192 non-cash impairment.
However, the decision reduces Regis' immediate requirement for material development capital expenditure, the analyst said.
The source: Morgans research
