Regis Resources Limited
Regis Resources Limited
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Contract miner MACA will extend its relationship with Regis Resources at the Moolart Well gold project in Western Australia with the award of an openpit mining services contract expected to generate $A115M revenue over 5 years.
The new contract covers drilling and blasting, loading and hauling at the expanded Moolart Well and satellite pits including Anchor, Petra, Lancaster, Dogbolter and Gloster. Operations director Geoff Baker says it's a testament to MACA's hard work at Moolart Well since Jan 2010.
Regis plans an immediate start to field work after executing formal agreements with Duketon for a gold exploration JV covering four tenements close to its Moolart Well project north of Laverton in Western Australia.
The tenements are seen to be more prospective for gold than nickel, and the JV covers gold rights only. Regis says it will seek more longevity and profitability close to its gold processing plant while Duketon focus on its core nickel exploration efforts.
Regis lifted gold production for the year to June to 310,204oz, within its original guidance – up from 270,759oz in FY2014.
The Australian miner finished the year with Q4 production of 75,372oz (Q3: 65,949oz) at all-in sustaining costs of $A1,148/oz ($1,159/oz). Strong operating cash-flow of $47.6M from its Duketon operations boosted Regis’s cash and gold bullion holdings to $73.1M from $45.8M.
Australia, the world’s second largest gold producer, produced 69t of gold in the Mar 2015 qtr, 5t or 7% less than the previous qtr, but little changed from Mar 2014 qtr, according to mining consultants Surbiton Associates’ latest survey of the industry.
Wet weather conditions and operational problems saw Australia’s short Mar qtr gold production fall by 5t.
Regis Resources is relying on stronger performance from Garden Well and Rosemont to pull it out of the slump that saw its March quarter production fall 18% to 65,949oz and cash costs rise 20% to $936/oz.
Australian gold producer Regis is basing its hopes on stronger fourth quarter performance at its Duketon operations to meet the lower end of its full-year guidance after a troubled March quarter (Q3 FY15) afflicted by rainfall and pitwall failures.
Regis produced 65,949oz at a cash cost of $A936/oz (before royalties) for the three months, down from 80,065oz at $782/oz. If it achieves 75,000oz in the June quarter, the company will sneak home over the 305,000oz bottom end of its FY15 guidance.
Saracen Mineral Holdings is getting the old band (team) back together as it begins the big adventure of restarting the Thunderbird gold mine about 45km south of Leinster in Western Australia.
Regis posted an after-tax profit of $A47.7M for the half-year to Dec 2014 (H1 FY15), up from $45.7M a year earlier, due to increased production from a full six months of operations at Rosemont and higher production at Moolart Well.
Revenue rose 24% to $240.5M ($195.5M) from gold sales of 168,680oz (131,060oz). Gold price fell 4% to $1,426/oz against cash costs that rose 6% to $763/oz.
Regis Resources remains confident it will reach production guidance from its Duketon gold project in Western Australia despite a new range of challenges that threaten to cut its March quarter output by nearly 20%.