What: Shares in gold miner Regis Resources Limited (ASX: RRL) have plunged 24% today to a 52-week low of $1.73 after the company issued an operating update and production guidance for 2015. The share price has now fallen 52% in the past year, making the stock a worse performer than Newcrest Mining Limited (ASX: NCM) which has fallen 29%, and a much worse performer than the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) which has gained 8.5%.
So what: In February Regis was forced to halt trading in its shares as the miner assessed the damage caused from a "major rainfall and flooding event" at its Duketon mine site. At the time of the weather event, management was unable to provide guidance to investors regarding the effects the interruption would have on volumes and grades over both the remainder of 2014 and in 2015.
Now what: Management has now qualified and released its expectations for 2015 and judging by the selling down of its share price, investors didn't like what they saw. Guidance for 2015 across Regis' three mines is for a grade of 1.11- 1.23 grams per tonne, production of 305,000 – 355,000 ounces and a net cash cost of $835 – $915 per ounce.
