13/03/2014 - 10:49

Regis profit down on higher costs

13/03/2014 - 10:49

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Gold miner Regis Resources has blamed higher production costs at its Duketon project for a 32 per cent slump in first half profit but says recovery efforts are proceeding in line with expectations after torrential rain caused extensive flood damage to the site.

Gold miner Regis Resources has blamed higher production costs at its Duketon project for a 32 per cent slump in first-half profit, but says recovery efforts are proceeding in line with expectations after torrential rain caused extensive flood damage to the site.

Regis posted a net profit of $45.7 million in the six months to December 2013, down from $67.4 million in the previous corresponding period.

It said the lower result was directly attributable to higher production costs at Duketon, which includes the Garden Well, Moolart and Rosemont mines.

The company's overall cash operating costs reached $723 per ounce during the period, up from $515/oz in the previous corresponding period..

Regis was also hampered by a lower average realised gold price of $1,488/oz, down from $1,631/oz.

While it almost doubled production at Garden Well, its biggest mine, gold recovery fell from 92 per cent to 87 per cent.

Regis flagged in January that gold recovery at Garden Well was likely to be lower than initially expected until plant upgrades are completed later this year.

The gold miner suffered a major setback last month when torrential rain caused extensive flooding at Garden Well and Rosemont.

Regis said at the time that it would be forced to suspend full operations at the mines for at least three months as it completed remedial works.

The company said today that its transition towards recommencement of full mining activities was proceeding in line with expectations.

Regis shares were trading 14.5 cents higher at $2.655 at 10:45am WST.

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