Why Regis Resources Shares Are Down Today (ASX:RRL)

Why Regis Resources Shares Are Down Today (ASX:RRL)

The Regis Resources Ltd [ASX:RRL] share price are slightly down today after releasing their full-year financial results.

Regis is an ASX-listed mid-tier gold company operating in Western Australia and New South Wales.

A 27% drop in net profit after tax

Regis revenues for the year came in at $819 million (an 8% increase from last year’s $757 million), after selling 367,285 ounces of gold at an average price of $2,229 an ounce.

For the full year ending on 30 June 2021, Regis Resources recorded a net profit after tax of $146 million, a 27% drop from last year’s $200 million.  This was mainly on higher costs and higher depreciation and amortisation.

Managing Director, Jim Beyer said:

Regis Resources has delivered another year of solid production for FY21 generating an EBITDA of $403 million, a net profit after tax of $146 million, a net profit after tax margin of 18% and operating cash flows of $276 million. While delivering this result, Regis executed a genuinely transformational transaction through the acquisition of a 30% interest in the Tropicana Gold Project which delivers on our strategic objectives to grow as a safe, responsible, reliable, long life, low cost gold producer, generating strong financial returns.

In April this year, Regis announced it was buying a 30% stake on the Tropicana gold project located in Western Australia from IGO Ltd [ASX:IGO] for $903 million.

REVEALED: What’s Next for Aussie Gold Stock Prices? Learn more.

What’s next for the RRL Share Price?

Regis has declared a fully franked final dividend of 3 cents per share, bringing the total dividend for the year to 7 cents a share.

After paying back $61 million in dividends to shareholders, the company has a total of $269 million in bullion and cash.

For the financial year 2022, Regis Resources expects group production to come in between 460,000–515,000 ounces with an AISC of between $1,290–1,365 an ounce. Of that total, between 340,000–380,000 will be coming from Duketon and between 120,000–135,000 from Tropicana.

Share price was down around 2.7% after the announcement and was trading at $2.49 cents a share at time of writing.

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Best,

 

Selva Freigedo

The Daily Reckoning

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