Regis has strong quarter

GOLD miner Regis Resources is guiding for a slightly improved production year in fiscal 2017 as its cash pile continues to build.
Regis has strong quarter Regis has strong quarter Regis has strong quarter Regis has strong quarter Regis has strong quarter

Michael Quinn

Production of 78,471 ounces in the June quarter saw the Western Australia operator produce just over 305,000oz in FY16, with a forecast for FY17 of between 300,000 and 330,000oz at all-in-sustaining-costs of $A980 to $1050/oz  being made by management.

The debt-free Regis has cash and bullion of $123 million, with shareholders undoubtedly keen to see just what their management plans to do with the growing pile.

Regis has current reserves of just over 2 million ounces, which at current production rates provides 6-7 years of operation.

The company's performance continues to improve after a number of major issues were revealed in 2014.

From October 2012 to July 2015 the combination of the falling gold price and operational hiccups saw Regis' share price decline from $5.77 to $1.14.

However the much improved Australian dollar gold price and much improved operational performance have seen a return to market form, with the stock currently heading back toward the $4 per share mark.

Shares in Regis were up 6.5% to $3.77 in morning trade today, capitalising the company at $1.9 billion.