Regis Resources Limited
Regis Resources Limited
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The start of mining at Gloster in the Duketon project in the Sept qtr will support West Australian miner Regis's decision to lift its gold production guidance to 300,000-330,000oz at AISC of $A980-1,050/oz for the coming year.
Duketon delivered 305,084oz at $927/oz in the year to June (FY16), beating forecasts for both output and costs. After its early repayment of its remaining $20M bank debt, Regis ended the year with cash and bullion of $123.3M.
Regis has taken advantage of the strong cash-flows from its 100%-owned Duketon project in Western Australia to repay the $A20M outstanding under its Macquarie Bank financing free, leaving it debt-free apart from normal trade creditors and leases.
The company held cash and bullion of $129M prior to the repayment and exec chairman Mark Clark says it's continuing to build its position while paying fully franked dividends of $50M in the last 9 months.
Australian miner Regis posted its fourth consecutive production increase, delivering 75,656oz from the three mines at its Duketon operations in WA in the March qtr (Q3FY16), up from 75,544oz in Q2. Mining efficiencies included renegotiation of the Moolart Well earthmoving contract improved AISC to $A856/oz (Q2: $918/oz).
YTD production of 226,616oz keeps Regis on track for the upper end of its FY16 guidance of 275,000-305,000oz. Mining of the Gloster satellite pit is expected to start in the Sept qtr, with first gold to the Moolart Well mill in the Dec qtr.
West Australian miner Regis is confident of finding even more after delivering maiden ore reserves of 361,000oz gold in the Gloster and Barneygo satellite deposits at its wholly owned Duketon project, replenishing the full FY2016 forecast production. They represent an 18% boost to Duketon's last quoted reserve base of 2Moz from March 2015.
Besides extending Duketon's mine life, exec chairman Mark Clark says they highlight the growth potential from satellite deposits and broader exploration. Gloster is due for mining from the Sept qtr, with Barneygo to slot in later.
US gold giant Newmont Mining is selling its entire 97.2M share, 19.45% stake in Australian miner Regis Resources to institutional investors for $US182M, Reuters reports.
Newmont, which mines about 5Moz of gold pa compared with about 300,000oz pa for Regis, says it’s sold nearly $1.9B in non-core assets since mid-2013.
Malagasy Minerals’ shareholders have approved the acquisition of the 650,000oz Karlawinda open cut gold project in Western Australia’s Pilbara region, a $A1.5M raising that will give investor Centrepeak Resources Group 19% and Regis Resources 9.9% of the company to be renamed Capricorn Metals.
The acquisition of Karlawinda owner, privateer Greenmount Resources P/L, gives it 50% of Malagasy.
Regis remains at the upper end of its FY16 guidance with Dec qtr (Q2) production from its Duketon gold project in Western Australia of 75,544oz (Q1: 75,416oz). AISC of $A918/oz ($973/oz), at the lower end of guidance.
Cash flow from operations was $49.8M ($50.8M), finishing the period with cash and bullion of $98.5M ($98.1M) after payouts of $30M dividend and $4.6M tax.
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.