The Regis Resources Limited (ASX:RRL) share price is sliding lower for the second day in a row.
The dip follows on from the release of the company’s quarterly update. The Regis Resources share price fell 5.7% yesterday on the back of its activity report for the quarter ended 30 September. That slump appears to have continued into today’s session.
At the time of writing, the Regis Resources share price is $2.01, 6.07% lower than its previous close.
Let’s take a look at how the first quarter of financial year 2022 went for the gold miner.
What’s weighing on the Regis Resources share price?
The Regis Resources share price is falling once more and its quarterly activities report, which details a drop in production, might be to blame.
Over the quarter just been, Regis Resources saw its gold production fall 11% on that of the previous quarter.
While its production dropped, the company’s all-in sustaining costs increased by 9.7% to reach $1,521 per ounce.
Regis Resources’ managing director Jim Beyer said the tough quarter was due to pre-planned lower production colliding with unexpected challenges.
One unexpected weight on the company’s production was its high staff turnover.
The increased turnover forced the company to employ less experienced workers and implement more staff training.
Regis Resources noted staff turnover seemed to be an industry-wide issue over the quarter, driven by heightened demand for workers due to COVID-19 travel restrictions in Western Australia.
Additionally, it noted soon-to-be mandatory COVID-19 vaccinations might impact its staff retention in the future.
Despite the quarter sounding particularly bleak for Regis Resources, the company retained its previously issued guidance.
Over financial year 2022, the company expects to produce between 460,000 and 515,000 ounces of gold.
It also expects its all-in sustaining costs to be between $1,290 and $1,365 per ounce for the 12 months ending 30 June 2022.