The Regis Resources Limited (ASX: RRL) share price is having a strong day.
In morning trade, the gold miner's shares are up 9% to $1.58.
Why is the Regis Resources share price jumping?
Investors have been bidding the Regis Resources share price higher this morning in response to the release of an update.
According to the release, the company delivered record gold production during the fourth quarter.
Regis Resources reported a 20% quarter on quarter increase in total gold production to 123.9k ounces. This reflects a 24% increase in Duketon gold production to 92.8k ounces and a 10% lift in Tropicana gold production to 31.1k ounces.
This took the company's annual gold production to 437k ounces. This is up 17% year on year and in line with its guidance of 420k ounces to 475k ounces.
Inflationary pressures persist
One slight negative that could be holding back the Regis Resources a touch today is that inflationary pressures are persisting and weighing on margins.
The release notes general industry inflationary pressures have continued across its operations and are expected to lead to its all-in sustaining cost (AISC) coming in slightly above the top end of its FY 2022 cost guidance of $1,425 to $1,500 per ounce.
Management commentary
Regis Resources' Managing Director, Jim Beyer, was pleased with the quarter. He said:
We are very pleased to deliver a record quarter of gold production for the June 2022 quarter. We have seen reliable delivery on our improvement plans that were developed and implemented to address the operational challenges we experienced in the first half of the year. This has seen the company deliver an improved performance despite the challenging external conditions.
The result is a record production performance for the quarter and overall annual gold production that sits comfortably within FY22 production guidance. The company is now well set for increased annual gold production into FY23. We look forward to releasing the full June Quarter Report along with company guidance later in the month.
