Regis Resources Ltd (ASX: RRL) is an ASX gold production and exploration company based in Western Australia. This gold stock fell more than 8% on Friday following earnings season results.
The fall comes after a strong 12 months.
Let's see what investors were reacting to.
Image source: Getty Images
What did the company report?
Regis Resources reported the following results on Friday for FY25:
- Net Profit After Tax increased to a record of $254M
- EBITDA was a record of $780M at a margin of 47%
- Record cash flows from operating activities of $821M and record cash and bullion of $517M debt free and unhedged
- A final fully franked dividend of 5 cents per share totalling $38M
- FY26 guidance of 350koz-380koz at an AISC of $2,610-$2,990/oz including $170/oz of non-cash stockpile draw
Managing Director, Mr Jim Beyer commented:
FY25 demonstrated continued reliable operating performance translating into record cash outcomes. We ran to plan, generating record EBITDA of $780M, record $821M of operating cash flow, repaid $300M of debt, and closed the year with a record $517 million in cash and bullion.
The company also said production guidance for FY26 is consistent with FY25.
According to the FY 25 presentation, Regis has taken advantage of the current gold price environment by utilising available mill capacity to include lower margin, profitable ounces, without deferring the already planned lower cost production.
This approach enhances near-term value while supporting healthy margins and cash generation.
Why did the stock price fall?
Shares in Regis Resources closed on Friday trading at $4.07 each.
Despite the positive earnings results, this was an 8% fall from the day prior.
It's possible many investors were profit taking as this gold stock has risen more than 130% over the last 12 months on the back of strong commodity prices and defensive investing decisions.
Should you buy the dip on this gold stock?
Commentary out of Morgans indicates this price fall could be an opportunity for investors.
The broker said it expects continued earnings from the Gold stock.
FY25 was a ground-breaking year for RRL, achieving record revenue, cash balance, EBITDA and NPAT which drove a fully franked 5cps dividend, the first dividend since 2022. Looking to FY26, we expect continued disciplined delivery against production and CAPEX guidance. Assuming sustained commodity prices, we anticipate further strong earnings and cash generation, providing scope for ongoing capital management or growth initiatives.
The broker maintains a price target of $5.00 on Regis Resources shares following Friday's results.
From its current share price of $4.07, this indicates an approximate upside of 23%.
