Regis shares climb with analysts upbeat on Q3 results
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The news: Shares in Regis Resources climbed on the ASX after the gold miner reported its third quarter results and reaffirmed its full-year guidance.
The numbers: Regis shares were trading 3.6% higher at $2.18 by 12:50pm AEST.
RBC Capital Markets analysts were 'positive' on the company and had a price target of $2.40.
The analysts said the March quarter was a "good result" for Regis, with gold production of 91,000 ounces in-line with analysts' expectations.
The production result fell towards the lower end of Regis' pre-guided range of 90,000 to 95,000 ounces, as the company experienced more heavy rain in Western Australia since its mid-quarter update, with ongoing haul road issues impacting other operators in the region.
RBC said that despite a weaker quarter, Regis generated free cash flow (FCF) of $31 million, an annualised 8% FCF yield, and maintained their original FY24 gold and all-in sustaining costs guidance.
The context: RBC analysts said they expect a better fourth quarter for Regis now that operations have fully restarted. While "some negative perceptions" of Regis' consistency could contribute to its inexpensive value, the analysts believe the March quarter results will help build investor confidence in the stock.
The sources: RBC Capital Markets research, ASX announcement
