Regis rebounds with better qtr

Regis Resources has shown signs of improvement with increased quarterly gold production and lower costs, in both cases delivering a better outcome than the company's own guidance.

The Perth-based gold miner said it had achieved record gold production of 88,818 ounces in the September quarter at a pre-royalty cash cost of $745 per ounce.

Regis sold about 22,000 more ounces of gold than in the June quarter, recording 81,923 ounces sold at a marginally increased price of $1,424 per ounce.

It also increased its cash flow from operations from $21.1 million to $27.4 million.

“This operational cash flow was a strong result given that included the payment of an extra $14 million to MACA to fully repay the amounts accrued under the extended credit terms granted at the time of the pit flooding in February,” Regis said in a statement.

Welshpool-based contractor MACA was conducting mining activities at Regis’ Duketon project when it was hit by torrential rain in February.

The fallout led to Regis reporting a 32 per cent slump in first-half profit and eventually, falling out of the S&P/ASX 100 index.

In July, Regis said it faced up to $280 million in write-downs at its Garden Well, Rosemount, Duketon and McPhillamys operations.

It put exploration and feasibility work at McPhilamys on hold due to falling gold prices.

Regis’ share price closed 4.5 per cent higher at $1.38 per share.