Regis in acquisition mode

Regis Resources managing director Jim Beyer told the Diggers & Dealers forum in Kalgoorlie today that his company was on the lookout for acquisitions.

But he warned against making deals that did not stack up if the gold price were to tumble.

Regis is aiming to produce between 355,000 and 380,000 ounces this year at its Duketon gold mine near Laverton, and is targeting growth opportunities.

However, Mr Beyer said any corporate activity would need to make financial sense in a weaker gold market.

“The nature of our industry is cyclical, and we know it,” he said.

He added that the critical question was how long the current up-cycle would last.

Mr Beyer said he was confident it would last a number of years. 

“But it will turn like everything does,” he said.

“What we need to make sure is that when things get challenging the business doesn’t implode, because we made decisions that meant we looked good when the gold price was up and we don’t when the gold price goes into the other phase of the cycle.

“A rising tide floats all boats. What’s going to happen when the tide goes out?

“We need to make sure we haven’t done something that puts our shareholders and our fundamental business at risk.”

Mr Beyer did not comment on specific merger or acquisition plans, but said he would be watching IGO’s strategic review of its 30 per cent share of the Tropicana gold mine, which is operated by majority 70 per cent owner Anglo Gold.