The Regis Resources (ASX:RRL) share price is dropping 6%. Here’s why

The Regis Resources share price is falling today, down 6% in late morning trade. We take a look at the ASX miner’s latest results.

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The Regis Resources Ltd (ASX: RRL) share price is falling today, down 6% in late morning trade. At the time of writing, the share price has recovered slightly, trading at $3.14, down 5.14%.

We take a look at the ASX miner’s financial results for the half-year ending 31 December (H1 FY21).

What results did Regis Resources report for H1 FY21?

The Regis Resources share price is dropping after the company reported a net profit after tax (NPAT) of $84.8 million. Down 9.2% from the $93.4 NPAT reported in H1 FY20.

The company sold 72,990 ounces of gold at an average price of $2,317 per ounce, reporting revenue for the half-year of $401.0 million. That’s up 8% from the $371.4 million of revenue in the previous corresponding period (pcp).

Earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at $198.6 million, up 7% year-on-year.

Regis reported a strong balance sheet with $147.8 million in cash flows from its operating activities. Additionally, it reported cash and bullion of $220.0 million as at 31 December (and using that date for the gold price).

The company produced 172,977 ounces of gold during the half-year at an all-in sustaining cost (AISC) of $1,356 per ounce.

Management Commentary

Commenting on the results, Regis managing director, Jim Beyer, said:

Regis has again delivered another solid profit result with a half-year profit after tax of approximately $84.8 million and operating cash flows of $147.8 million. A net profit margin of 21% and robust operating cash flows for the half-year continue to point to the strength of the Duketon operations.

During the half-year, the board approved the development of the Garden Well underground mine. This will become the second underground mine at the Duketon operations. Indeed, it will be a welcome addition to Regis’ production profile once developed.

Regis will pay an interim dividend of 4 cents per share (cps), fully franked, with an ex-dividend date of 10 March and payable on 25 March.

Regis Resources share price snapshot

The Regis share price has struggled to hold onto the strong gains it posted following the broader ASX recovered from last year’s COVID-fuelled market selloff. Over the past 12 months, Regis shares are down 30%, compared to a 0.5% loss on the S&P/ASX 200 Index (ASX: XJO).

Year-to-date the Regis share price is down 18%.

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