Regis shrinks production, ups cost guidance

Goldminer Regis Resources has narrowed its production target and has lifted its cost estimate for the 2024 financial year after releasing its quarterly results. 

Shares in the Subiaco-based goldminer were down as much as 13 per cent following the release of its June quarter results and FY24 outlook this morning. 

Regis produced a total of 458,400 ounces of gold for FY23, hitting the lower end of its guidance range of 450,000 to 470,000 ounces, which was narrowed in April due to lower-than-expected production during the March quarter.

The miner recorded an all-in sustaining cost of $1,805 per ounce in FY23, within its guidance range of $1,795 to $1,845 per ounce.

In today’s announcement, Regis revealed it would be targeting a lowered production range of between 415,000 to 455,000 ounces of gold for FY24.

The goldminer is also estimating higher costs with an all-in sustaining cost target of $1,995 to $2,315 per ounce for FY24, up from $1,795 to $1,845 per ounce in FY23.

For the June quarter, Regis produced 122,500 ounces of gold at $1,851 per ounce, which it said includes $200 per ounce of non-cash stockpile inventory adjustment.

Regis' Duketon operation produced 90,600 ounces at an AISC of $2,026 per ounce, while its Tropicana asset, a JV project with AngloGold Ashanti, produced 31,900 ounces at an AISC of $1,259 per ounce for the quarter.

Sales for the period totaled $337 million and cash and bullion at the end of the quarter was $243 million.

“It was pleasing to deliver a strong quarter of gold production and cash generation to finish the year,” managing director Jim Beyer said.

“With commercial production declared at Garden Well underground (Duketon) and Havana open pit (Tropicana), the company continues the transition out of its investment phase at these operations.

“On completion of hedge book deliveries by the end of this financial year, at current gold prices, we are looking forward to a significant increase in cash flow.”