The Regis Resources Limited (ASX: RRL) share price was a poor performer in June.
During the month, the gold miner's shares sank a very disappointing 35%.
Why did the Regis Resources share price sink in June?
There were a couple of catalysts for the weakness in the Regis Resources share price in June.
The first is a disappointing mineral resource update. That update revealed that its group ore reserves had fallen to 4.14Moz. This compares to 4.83Moz a year earlier.
In addition to this, concerns over its production during the second half have been weighing on its shares. Regis' production has been impacted by absenteeism and labour availability problems.
And while it hasn't updated the market recently about its performance, disappointing updates from sector peers are pointing to tough operating conditions during the recently completed fourth quarter.
It was for this reason that analysts at Morgan Stanley downgraded the company's shares to an underweight rating and slashed the price target on them to $1.75.
Is this a buying opportunity?
While brokers may not be overly positive on the Regis Resources share price, one mining magnate appears to be.
Last week, Fortescue Metals Group Limited (ASX: FMG) Chair, Andrew 'Twiggy' Forrest tried to snap up a 15% stake at $1.48 per share for his Wyloo business. This represented a 13.8% premium to its last close price and valued the stake at $168 million.
However, Forrest's fill or kill order fell short of the mark and therefore was cancelled. He still reportedly owns a stake of 4.9%.
While this transaction failed it clearly shows that Forrest sees a lot of value in the Regis Resources share price after this recent weakness. If others feel the same way, July could end up being a significant better month for its shares.
