The Regis Resources Limited (ASX: RRL) share price is up 1% to $4.80 on Wednesday, after the gold mining company gave a positive update for the third quarter of FY2018. Earlier today, the stock hit a multi-year high at $4.86
Regis produced 85,000 ounces of gold in the March 2018 quarter, 8% less than in the previous quarter, but still enough for the company to refine its full-year production guidance to a range of between 355,000 ounces and 360,000 ounces – at the upper end of the previous forecast.
Year-to-date all-in sustaining costs (AISC) of production of $873 per ounce appear particularly low if compared with the company's FY2018 guidance of between $940 and $1,010 per ounce, or with that of $1,100 to $1,150 per ounce of industry peer Saracen Mineral Holdings Limited (ASX: SAR). Its quarterly result was positively received by the market yesterday.
Regis's margins are particularly wide, with gold sold at an average $1,688 per ounce during the quarter, which is about $100 per ounce higher than Saracen's price. Operating cash flow of $71 million allowed the company to maintain its cash balance almost intact at $168 million, while paying an interim dividend of 8 cents per share.
