Regis Resources [ASX:RRL] Jumps 10% On Record Gold Production
Western Australian gold miner Regis Resources [ASX:RRL] rose 10% this morning following record quarterly gold production.
Despite the jump this morning, RRL shares are down 35% over the past 12 months, with gold stocks hit hard lately on the back of rising costs and uncertain outlook.
Gold has been trading at the lowest price in five months, at around US$1,800 an ounce.
Regis Resources’ record results
Regis Resources announced it attained ‘record results’ for the June 2022 quarter.
RRL reported total group production for gold in June rose 20%, a quarterly record of 123.9k oz — beating March’s totals of 103.1k oz.
Gold production in Duketon also saw an increase of 24%, up 92.8k oz on March’s 74.8k oz.
Gold production rose in Tropicana, too, by 10% — up from 28.3k oz 31.1k oz.
Regis did report that inflationary pressures have impacted operations. FY22 AISC is expected to be ‘slightly above’ the top end of RRL’s FY22 cost guidance ($1,425 to $1,500/oz).
Regis has said it will confirm whether this is the case when it releases its June quarter results on 26 July.
Nonetheless, RRL said the improved production performance over the quarter saw its cash and bullion balance rise by $60 million to $227 million.
Managing Director of Regis Resources Jim Beyer said:
‘We are very pleased to deliver a record quarter of gold production for the June 2022 quarter. We have seen reliable delivery on our improvement plans that were developed and implemented to address the operational challenges we experienced in the first half of the year. This has seen the company deliver an improved performance despite the challenging external conditions.
‘The result is a record production performance for the quarter and overall annual gold production that sits comfortably within FY22 production guidance. The company is now well set for increased annual gold production into FY23. We look forward to releasing the full June Quarter Report along with company guidance later in the month.’
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For The Daily Reckoning Australia