Regis shares plunge but analysts take positives from Q4 result
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More news: Regis Resources continued to tumble on the ASX after the gold producer recorded lower year-on-year production at a higher average cost per ounce.
Regis was the worst performing stock across the ASX 200 by 12:25pm, with its share price down 8.9% to $1.74.
However, RBC Capital Markets analyst Kaan Peker said Regis' Q4 result was "broadly in line" and that the result "provides a good entry point for [Regis'] strong value".
Peker noted that Regis' FY25 gold and all-in sustaining costs guidance was in line with their forecasts, but worse than consensus by 5% and 13% respectively.
But "the big FY25 guidance delta" was Regis' capital expenditure guidance of $110 million to $125 million, which compared to RBC's forecast of $250 million, he said.
Regis Resources shares plunge despite meeting guidance
The news: Gold producer Regis Resources met its full-year production and cost guidance, but output came in lower than the previous year at a higher average cost per ounce.
The numbers: Regis shares tumbled 6.96% to $1.77 in early trading on the ASX and over the last 12 months has fallen 19.2%.
Regis posted full-year gold production of 417.7 thousand ounces (koz), within its guidance range of 415 koz and 455 koz, but lower than last year's total of 458.4 koz.
All-in sustaining costs came in at $2,286 per ounce, meeting guidance of $1,995 to $2,315, but higher than $1,805 in FY23.
Growth capital of $93 million also fell within Regis' $85 million to $95 million guidance range.
The company posted a record cash and bullion position of $295 million as of 30 June. Last year's total was $243 million.
Regis set FY25 gold production guidance of 350 koz to 380 koz, and AISC between $2,440 per ounce to $2,740 per ounce.
The context: Regis said that a "healthy gold price tailwind" helped it meet its FY24 guidance, as its mines continue to recover from extreme wet weather.
In March, Regis flagged lower production after heavy rainfall affected operations at its Duketon and Tropicana mines in Western Australia.
The source: ASX announcement
