Regis Resources shares lift as Bell Potter hikes target price
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The news: Shares in Regis Resources advanced after Bell Potter hiked its target price on the gold miner, following visits to its Duketon and Tropicana mines in Western Australia.
The numbers: Regis shares were up 1.73% to $4.70 at 1:344pm AEST, extended gains of nearly 160% over the last 12 months.
Bell Potter retained its 'hold' recommendation but raised its target price 2% from $4.72 to $4.82.
The context: Bell Potter analyst David Coates said Regis is increasing focused on underground operations as open-pit production at its 100% owned Duketon mine and 30% owned Tropicana mine come to an end.
He expects open-pit mining to be largely complete by the first half of fiscal 2029 at both Duketon and Tropicana, with both projects targeting development of three to four underground operations to sustain production over the longer term.
Both projects are "highly prospective" for underground resource growth, Coates said, and have demonstrated track records of resource growth, conversion and replacement.
What they said: "We remain attracted to [Regis'] all-Australian, multi-mine asset portfolio, its demonstrated leverage to the gold price, sector leading cash generation and its fully unhedged, debt free position," said Coates.
The source: Bell Potter research
