Regis Resources Limited
Regis Resources Limited
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West Australian gold miner Regis Resources has posted a fall in profit despite higher revenue in the June year (FY21), ahead of the step-up in scale that is following its acquisition of a 30% stake in AngloGold Ashanti’s Tropicana mine.
Regis posted $A146M after-tax profit for the 12 months, down from $200M a year earlier, on gold sales revenue of $819M (FY20: $757M).
The decision by AngloGold Ashanti and its new 30% JV partner Regis Resources in Western Australia’s Tropicana gold mine to proceed with a final cutback to mine deeper ore in the Havana pit will translate into a $A470M revenue boost for contractor Macmahon.
The cutback, to extend the life of the openpit mine by four years from 2023 to 2027, will add 155Mt to the material to be mined from 2024.
The acquisition of a 30% stake in the Tropicana project promises a material step-up in scale for Australian miner Regis Resources after posting gold production of 372,870oz at AISC of $A1,373/oz for the June year (FY21), up from 352,042oz at $1,246/oz in the previous year.
The result included two months’ contribution of 17,317oz at $2,121/oz for its share of production from AngloGold Ashanti’s 70%-owned Tropicana mine and a strong 355,553oz from its Duketon Operations.
Gold miner Regis Resources has lifted its mineral resources to 10.4Moz and ore reserves to 4.8Moz following the inclusion of 30% of the Tropicana Gold Mine, 330km ENE of Kalgoorlie in Western Australia, from IGO on completion of its $A903M cash acquisition ($889M after adjustments) in May this year.
Tropicana resources stand at 145Mt at 1.6g/t Au for 7.64Moz (100%) and 44Mt at 1.6g/t for 2.29Moz (30%), with reserves of 49Mt at 1.7g/t for 2.69Moz (100%) and 15Mt at 1.71g/t for 0.81Moz (30%).
Regis Resources has completed its $A903M cash acquisition ($889M after adjustments) of 30% of AngloGold Ashanti’s 400,000oz-plus gold Tropicana project, 330km ENE of Kalgoorlie in Western Australia, from IGO.
The acquisition of one of Australia’s 5 largest producing gold mines was funded by a $650M equity raising and a $300M, 3-year loan facility from the Bank of America. AngloGold decided not to exercise its pre-emptive right over Tropicana.
Western Australia-focused gold miner Regis Resources’ Mar 2021 qtr (Q3 21) cash flow from operations has fallen to $A67.2M from Q2 21’s $100.1M on gold production down to 85,748oz from 91,411oz and a lower gold price.
Ore milled was down to 2.37Mt from 2.46Mt, head grade easier to 1.23g/t from 1.24g/t, recovery to 91.9% from 92.8% and AISC jumping to $A1,388oz from $1,317oz.
$A23.5M of foreign exchange gains has lifted miner IGO’s Mar 2021 qtr (Q3 21) net profit after tax to $41.9M from Q2 21’s $8.8M, which included $38.9M of FX losses, offsetting falls in gold-nickel-copper output.
However, adjusted net profit after tax fell to $25.6M from $38.6M, with revenue and other income down 21% on the prior qtr to $185.7M from $235.9M, primarily as a result of lower metal volumes sold. Underlying EBITDA fell to $92.7M from $120.9M.
The acquisition by Regis Resources of a 30% stake in AngloGold Ashanti’s Tropicana gold mine in Western Australia will go ahead after the South African-based international gold major chose not to match the $A903M price being paid by the local producer.
Regis agreed last week to acquire the minority stake in the 400,000oz-plus project for $A903M from current holder IGO, subject to AngloGold’s pre-emptive right right to match the offer.
Regis Resources has signed a conditional binding agreement with IGO to acquire IGO’s 30% of the Tropicana Gold Project, 330km ENE of Kalgoorlie in Western Australia, for $A903M cash.
Gold miner Regis Resources has lifted mineral resources at its late 2020 acquired Ben Hur project in Western Australia 34% to 10.3Mt at 1.2g/t Au for 390,000oz, including a maiden reserve of 3.5Mt at 1.1g/t Au for 130,000oz, assuming a $A1,600oz gold price.
The company says the reserve feeds straight into Regis’ strategy of internal value growth through mine life extension for its Duketon operations, 40km N of Laverton, WA.