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Regis Resources has completed the retail component of its 1 for 3.08 fully underwritten accelerated non renounceable pro rata entitlement offer to fund the acquisition of the Tropicana gold mine


The company only received $30 million of applications as part of the offer, representing a total take-up rate of approximately 20 per cent.


Approximately 46 million shortfall of shares under the offer will be allotted to the underwriter and sub-underwriters of the retail entitlement offer.


The company issued 57 million new shares under the offer at $2.70 a share, raising $153.9 million.




.... not a ringing endorsement

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  • 3 weeks later...

RRL has been one of my worst performing gold stocks.

On paper it looked great - a very low P/E of 7, forward P/E of 8, div yield of 4.6%, annual production just shy of 400k ounces at an AISC of a tad below 1300 an ounce.

With gold prices consistently above 2300 an ounce, seemed like a pretty good deal.

The devil of course, is in the detail.

One of the problems is their hedge book.

Todays announcement that they have "rationalised" the dreaded book, still shows the co committed to 100,000 ounces per year at the miserly price of $1571 per ounce for the next three and a bit years.

So roughly a third of their production is committed to a sell price below their AISC. Thats not a good look.

The recent announcement that the investors only took up 20% of the shares the Company was hoping for in the raising to pay for the Tropicanna mine should indicate to management that there might be a problem. Todays price shows it below that rights issue price, and unless gold rockets to dizzy heights, its hard to see it rising much.

Perhaps the fact that Tropicanna was scheduled to produce 380 to 430 k ounces in 2021 at an AISC of $1,730 to $1,860 made them think it was not really that much value adding for the dollars being thrown at it. Assuming best case scenario of the lowest AISC and highest production, and gold stays at 2450, they would expect to pick up about 80 mill per year from the third share. When they paid 903 mill to get that third share, it does not look so good. It would take ten years just to break even.

Looks like RRL might have to go the way of DCN, PRX and SBM.



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  • 1 year later...

Andrew Forrest’s Wyloo has walked away from plans to significantly increase its stake in gold miner Regis Resources.

Wylos broker, Barrenjoey, told clients on Friday morning that the Thursday night raid had fallen short of its 15 per cent target and would not proceed.

We received interest for in excess of 12% of the company, the message said.
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  • 4 weeks later...

June quarter produced some solid results for Regis Resources (ASX: RRL) and in turn meant record year of gold production.

The last three months of 2021-22 saw production reach a new high of 123,900 ounces at an AISC of $1,591/oz.

Duketon, the company’s WA mine, produced 92,800 ounces of gold at an AISC of $1,706/oz, and Tropicana, 31,100 ounces of gold at an AISC of $1,157/oz

The 2021/22 gold production hit 437,300 ounces, within guidance of 420,000 to 475,000 ounces, while annual AISC of $1,556/oz was slightly above guidance of $1,425 to $1,500/oz.

Regis CEO Jim Beyer said the company had overcome a number of challenges throughout FY22, and to deliver gold production within guidance was a testament to the Regis team’s commitment and capability.

With the plant modifications at Duketon complete, resource models performing to expectation and Garden Well South underground coming online, Regis is well positioned to deliver a strong FY23, he said.

The company is in a solid financial position with two operating sites that generate strong operating cash flows and building a portfolio of potential growth options capable of delivering our target to be a 500,000oz per year producer. We are looking forward to continue delivering on our growth plans over the next three years.

Regis says it is looking for a small increase in production for 2022-23 at a slightly higher cost estimate.

It said in the report that 2023 guidance is the range of 450,000 ounces to 500,000 ounces at an AISC of $1,525 to $1,625/oz

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