Regis Resources Limited
Regis Resources Limited
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Gold miner Regis Resources has acquired a strategic, 35 tenement holding surrounding its 3 mills Duketon gold operations in Western Australia from Duketon Mining for $A20M cash and up to $5M in contingent payments.
The deal triples Regis’ landholding rights in the Duketon Greenstone Belt to ~3,000km2, 90% of the belt, along strike and adjacent to its existing resources and processing plants at Moolart Well, Garden Well and Rosemont. Duketon Mining retains the nickel rights over 5 of the tenements.
Higher material movements at the Duketon South project and higher contractor costs at Duketon North have offset West Australian miner Regis Resources’ record gold production and higher sales, pushing June year (FY19) NPAT to $A163.1M (FY18: $174.2M) on sales revenue of $652.5M ($604.4M).
Gold sales were 369,721oz (359,750oz) at average realised prices of $1,765/oz ($1,680/oz) against AISC of $1,029/oz ($901/oz). EBITDA declined to $306.8M ($312.5M) while operating cash-flow improved to $329M ($301M).
Regis Resources has posted another record production year with output from its sole-producing Duketon Gold Project in Western Australia up to 363,418oz in the June 2019 year (FY 19) from FY 18’s 361,373oz.
The result, at the upper end of production guidance, came with ASIC up to $A1,029oz from $901oz and cash costs, including royalties, up to $897oz from $794oz.
Despite an easing of Q4 19 gold production, Regis Resources has managed another full year 363,420oz record. By Mark Mentiplay
Increased Mar 2019 qtr (Q3 19) gold production to 91,087oz from Q2 19’s 90,487oz at Regis Resources’ Duketon Gold Project, 350km NE of Kalgoorlie in Western Australia, has the company heading for the top end of 340,000oz-370,000oz FY2019 guidance.
The Q3 19 increase was at pre-royalty cash costs up slightly to $A767oz from $765oz and AISC to $1,019oz from $985oz, with cash flow from operations up to $89.3M from $76.4M.
A new study has flagged increased ore tonnes, grade and gold production at lower costs and a longer LoM from increased resources at Regis Resources’ Rosemont underground operations, part of its Duketon Gold Project in the Western Australia goldfields. 1st ore is expected from Rosemount in the Sept 2019 qtr and 1st production tonnes in the Mar 2020 qtr.
A bundle of new, improved numbers and resources/reserves have combined to increase gold prodn and cut costs at Regis Resources’ new Rosemount underground operation. By Mark Mentiplay
Regis Resources has seen its Dec 2019 half (H1 19) net profit after tax slide 6% on H1 18 to $A79.85M, despite increased gold sales, revenue and net cash flow.
Regis Resources MD Jim Beyer is confident the West Australian miner will achieve the mid-to-upper end of its FY19 guidance after the Duketon gold project 350km NE of Kalgoorlie produced 90,487oz with AISC at the lower end forecast at $A985/oz in the Dec qtr (Q2), from 90,879oz at $923/oz in Q1.
Guidance remains 340,000-370,000oz at $985-1,055/oz.
Cash and bullion at end-Dec was $206.7M ($190M).
Australian producer Regis Resources’ underground growth strategy at its Duketon gold project in the WA Goldfields is advancing with the award of a $A113M, 3-year development and production contract to Barminco.
The underground development, directly below the current Rosemont openpit, is targeting a maiden resource of 1.4Mt @ 5.1g/t for 230,000oz.
MD Jim Beyer says Rosemont’s initial underground development provides an excellent platform for growth through exploration from an established underground footprint.