Regis Resources shares lift on 'reassuring' Q1 result
Make us a preferred source
Make us a preferred source on Google
The news: Regis Resources shares moved higher on the ASX, after the gold miner's first-quarter result met market expectations.
The numbers: Regis shares were up 1.4% to $2.81 by 3pm AEDT, after adding nearly 70% in the last 12 months.
The context: RBC Capital Markets analyst Alex Barkley noted that Q1 group production and cash results were pre-flagged, and Regis' new group all-in sustaining cost of $2,650 per ounce was in line with consensus forecasts.
Gold sales, which had not been pre-released, was 16% below production and market expectations, Barkley said. RBC expects this to reverse in Q2, however, with sales outweighing production.
Meanwhile, Regis' managing director Jim Beyer described the September quarter as "turbulent", after the miner was forced to write down the carrying value of its under-development McPhillamys mine in New South Wales after an environmental protection declaration by the federal government.
Beyer called the government's decision "very confusing and disappointing" and said it could now take five to 10 years to develop an alternative tailings storage facility, which had previously been permitted on the proposed mine site at McPhillamys.
What they said: "In our view, there is some potential for capex to continue tracking low vs guidance through the year," RBC's Barkley said.
"Operating metrics were broadly in line with our expectations, a reassuring outcome following a weather-affected 1H 2024."
The sources: ASX announcement, RBC Capital Markets research
