Regis rallies on improved output

Shares in Subiaco-based gold producer Regis Resources closed the day up 10 per cent after reporting solid gold production for the month and financial year, despite costs ringing in at the higher end.

Total output from the company’s Duketon and Tropicana operations was 123,900 ounces for the June quarter, 20 per cent more than the previous period.

That contributed to total production for the 2022 financial year of 437,300 ounces, falling within Regis’ guidance range of 420,000 ounces to 475,000 ounces.

It marks a 17 per cent improvement on the last financial year.

Costs are expected to fall at the higher end of Regis’ $1,425 per ounce to $1,500 per ounce guidance on account of general inflationary pressures.

The update follows reports that Andrew Forrest’s Wyloo entity had sought to up its exisitng stake in Regis last week.

Regis’ managing director Jim Beyer said the company had delivered on improvement plans implemented to deal with operational challenges in the first half of the year.

The comments come after the ASX-lister said it wouldn’t declare an interim dividend for the financial year back in February after first half profits fell close to 70 per cent.

“We have seen reliable delivery on our improvement plans that were developed and implemented to address the operational challenges we experienced in the first half of the year,” Mr Beyer said.

“The company is now well set for increased annual gold production into FY23.”

A full report for the June quarter is expected this month.

Fellow WA focussed gold developer Westgold also flagged higher output for the year, posting group production of 72,591 ounces for the quarter and 270,878 ounces for the year.

Regis Resources closed the ended the session up 10.7 per cent to trade at $1.60, with Westgold Resources up 5.75 per cent at $1.29.