Regis Resources Ltd (ASX: RRL) shares are having a good session on Thursday.
In morning trade, the ASX 200 gold stock is up 3% to $2.05.
This latest gain means that the gold miner's shares are now up 18% since this time last month.
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Why is this ASX 200 gold stock charging higher?
Investors have been bidding Regis Resources shares higher today after it released a quarterly update for the three months ended 30 September.
According to the release, the gold miner's solid operational performance allowed it to deliver its third consecutive quarter of cash and bullion build.
During the quarter, the Duketon operation produced 57,500 ounces from its open pit and underground operations. Whereas the Tropicana operation produced 37,000 ounces for the three months. The latter is a significant improvement on production from the weather impacted prior quarters.
This meant that total group production for the first quarter of FY 2025 came in at 94,500 ounces. While this was down 11.2% quarter on quarter from 106,400 ounces during the fourth quarter of FY 2024, it is run rating in line with its production guidance for the full year.
Management continues to target production of 220,000 ounces to 240,000 ounces from Duketon and 130,000 ounces to 140,000 ounces from Tropicana in FY 2025.
This represents full year production guidance of 350,000 ounces to 380,000 ounces. Based on its current run rate, the ASX 200 gold stock is on course to achieve the high-end of its guidance range.
Management highlights that this solid operational performance across the business, paired with record gold spot prices, delivered a third consecutive quarter of meaningful cash to the balance sheet. At the end of the first quarter quarter, Regis Resources' cash and bullion balance was $380 million. This represents a build of $85 million from the prior quarter.
It also highlights that its total cash and bullion increase over the three quarters since closing its legacy hedge book is now a sizeable $225 million.
A full quarterly update will be released by the ASX 200 gold stock later this month on Thursday 24 October.
Should you invest?
Analysts at Goldman Sachs believes that Regis Resources' shares are fully valued now. Earlier this week, the broker put a sell rating and $1.95 price target on them.
Though, it is worth noting that this broker note was from before the release of this update. So, there's always a chance that Goldman will update its financial model in the coming days.
