In afternoon trade, the gold miner’s shares are up 7% to $2.66.
Why is the Regis Resources share price racing higher?
Investors have been bidding the Regis Resources share price higher today following the release of a strong fourth quarter update.
According to the release, Regis Resources achieved quarterly gold production of 114,145 ounces with an all-in sustaining cost (AISC) of $1,387 per ounce. This was driven by record production of 96,829 ounces at Duketon with an AISC of $1,254 per ounce and two months of production at Tropicana.
This brought its full year production to 372,870 ounces with an AISC of $1,373 per ounce.
Regis Resources’ Managing Director, Jim Beyer, commented: “Production from Rosemont underground lifted to record levels and this saw our production for the year from Duketon finish within the guidance range and AISC only slightly above. Completion of the Tropicana acquisition and record production at Duketon resulted in record Regis quarterly production of over 114koz for the June quarter.”
Also giving the Regis Resources share price a boost was its strong sales for the quarter.
The company reported total quarterly gold sales of $279 million, with an average realised price of $2,222 per ounce after adjusting for hedging. The latter was up from $2,014 per ounce in the previous quarter.
FY 2022 guidance
Another positive that appears to be supporting the Regis Resources share price was its guidance for FY 2022.
The release reveals that management is expecting its full year gold production to increase to 460,000 to 515,000 ounces. This comprises Duketon production of 340,000 to 380,000 ounces and Tropicana production of 120,000 to 135,000 ounces.
In addition, the company is expecting its AISC to be lower in FY 2022. It is forecasting an AISC of $1,290 to $1,365 per ounce.
Finally, growth capital is expected to be in the range of $155 million to $165 million, with exploration costs of $43 million.