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.

| More on:
A businessman holds his glasses in concern, indicating uncertainly in the ASX share price

Image source: Getty Images

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%.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Two workers on site discuss the next stage of this civil engineering job, one points his hands upwards.
Share Gainers

Why did this ASX nickel share surge 23% today?

Investors keep rewarding ASX listed metals and mining companies in 2022.

Read more »

A woman sits at her computer with hand to mouth and a contemplative smile on her face although she is considering or thinking about information she is seeing on the screen.
Growth Shares

Why I think the EML share price is a long-term buy

Here's why I think EML shares are looking very good value for the long haul.

Read more »

a man sits on a rocket propelled office chair and flies high above a city
IPOs

Aurora Energy Metals share price rockets 35% on ASX debut

This lithium and uranium explorer debuted the ASX in style.

Read more »

Share Fallers

Why Boral, Eagers Automotive, PolyNovo, and Serko shares are dropping

These ASX shares are under pressure on Wednesday...

Read more »

a man with a wry smile is behind ascending piles of coins as he places another coin on top of the tallest stack.
Share Market News

Can ASX 200 banks really see a 15% profit jump if the cash rate hits 1%?

These analysts are predicting big returns for banks in the rising interest rate environment.

Read more »

An office worker and his desk covered in yellow post-it notes
Share Market News

Here are the 3 most heavily traded ASX 200 shares on Wednesday

We take a look at the most traded ASX 200 shares by volume today.

Read more »

Share Gainers

Why BlueScope, Firefinch, Monash IVF, and South32 shares are pushing higher

These ASX shares are on form on Wednesday...

Read more »

Five happy miners standing next to each other.
Share Gainers

3 ASX mining shares surging more than 10% today

Metals and mining stocks continue to be rewarded in 2022

Read more »