Strong quarterly recovery lifts Regis Resources
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Regis Resources were up 1.5% to $2.02 in early trade after the gold miner reported an increase in cash on the back of higher prices, despite a dip in September quarter production.
RBC Capital Markets analyst Alex Barkley said the performance came in ahead of market expectations.
"We had expected a longer mill maintenance at Duketon and a slower ramp up into H2FY25 at Tropicana. Importantly, production continues to improve at Tropicana following the rain-affected quarters earlier in CY24. We believe this puts them in good stead for hitting FY25 guidance.
"In our view, the strong quarterly result is compelling, and we continue to see value in the stock. We remain Outperform."
Regis Resources' September quarter output falls
The news: Gold producer Regis Resources says record gold prices have helped deliver an increase in cash despite a fall in September quarter production.
The numbers: The company reported gold production of 94,500 ounces for the three month period, down from 111,400 ounces delivered a year ago. It has maintained full-year production guidance between 350,000 and 380,000 ounces.
The context: Regis said its Duketon mine in Western Australia delivered 57,500 ounces in the quarter, while the Tropicana mine output rose to 37,000 ounces, which it said was a significant improvement from weather-impacted prior quarters.
The gold miner posted full-year production of 417.7 thousand ounces in FY25, but it slumped to a $186 million loss after writing down the carrying value of its under-development McPhillamys mine in NSW after an environmental protection declaration by the federal government. Regis will outline quarter performance in more detail on 24 October.
The source: ASX
