Regis keeps output steady amid portfolio expansion

Regis Resources’ full year gold production guidance remains unchanged at 340,000 to 370,000 ounces, despite a slight drop in output during the September quarter.

In the September quarter, Regis produced 87,633 ounces of gold, compared with June’s 90,966 ounces. Cash flow from operations during the period was $82.5 million, also below the $85.2 million recorded in the June quarter.

Regis sold 71,702 ounces of gold this quarter at an average price of $2000 per ounce, compared with 106,628 ounces at $1832 per ounce in June.

Gold sales were less than the previous quarter because of end of the month gold deliveries, which resulted in a significant increase in gold on hand at the end of September, 23,815 ounces, compared with 7886 ounces of gold on hand at the end of June.

September also saw a decrease in the cash cost before royalties, from $949 per ounce in June to $914 per ounce in September, driven by a larger proportion of costs associated with new satellite pits being classified as capital.

Regis managing director Jim Beyer was not fazed by the fall in production and was instead pleased with the progress made on future projects.

“Another solid and reliable performance by the Regis team delivering production of 87,633 ounces for the quarter,” Beyer said.

“We also saw good progress on a number of our future growth-related projects while continuing to pay a dividend.”

Regis did strengthen its asset portfolio in the September quarter, most notably acquiring a large strategic tenement holding in Western Australia’s Duketon Greenstone Belt.

The company increased its landholding to cover 90 per cent of the Duketon Greenstone Belt for $20 million cash and a further $5 million in contingent payments.

Regis also celebrated progress at its Goldfields-Esperance region Rosemont underground mine, achieving its first ore from development, and actual development ore mined was significantly above the expected 10,000 tonnes of ore.

There was over 1200 lineal metres of development at Rosemont for the quarter, approximately 550 metres of which was in the north and south declines.

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