Regis Resources shares plunge after production guidance misses estimates
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More news: Shares in Regis Resources plummeted in early trade despite the gold miner lifted its FY27 production guidance and reported higher output across its Garden Well and Rosemont Mills underground operations.
Shares plunged 9.4% to $5.58 at 11:16am AEST.
RBC Capital Markets analyst James Redfern maintains an “outperform” rating on the stock with an $11.10 price target. He stated that the upgraded guidance fell 3% below the RBC Capital consensus, noting that lower open pit production at the Tropicana site prevented the miner from hitting consensus targets.
However, Redfern noted that the miner remains well-positioned to continue its cash build momentum following a recent timing adjustment that solidified its quarter-end balance sheet.
Regis Resources lifts FY27 gold production guidance
The news: Regis Resources has upgraded its FY27 gold production guidance to between 360,000 and 400,000 ounces at an adjusted group all-in sustaining costs (ASIC) guidance of $2,990 to $3,390 per ounces, driven by higher margin output across its expanding Garden Well and Rosemont Mills underground operations.
The context: The miner’s FY26 guidance targeted gold production of between 350,000 and 380,000 ounces at an ASIC of $2,610 to $2,990 an ounce.
Regis expects output at its Duketon field to tick slightly higher in the FY27 compared to FY26. However, it trimmed its output at Tropicana due to lower open pit ore volumes, which will require a higher proportion of lower-grade stockpile mill feed.
Following a recent timing adjustment, the group revised its 30 June cash and bullion balance to $1.18 billion, from the previously reported $1.21 billion.
The sources: ASX, RBC Capital analyst note
