The Regis Resources Limited (ASX: RRL) share price is catching the eyes of investors today.
In afternoon trading, shares in the $1.5 billion gold mining company are fetching $1.96, up 6.8% from its previous close.
Why is the Regis Resources share price shining today?
Investors are scrambling to buy shares in Regis Resources on Monday. This is despite the mining company not providing any announcements today.
Given the lack of corporate fodder, the catalyst for the company’s higher share price appears to be a broader one. In this case, a jump in the precious metal’s price looks to be the suspect behind the miner’s positive performance.
Amid a backdrop of increasing tensions between Ukraine and Russia, the price of gold has rallied ~1.5% since Friday morning. As a result, the safe-haven commodity is now holding at US$1,853 per ounce — putting prices on par with those hit on 25 January 2022, as shown in the chart below.
However, views are mixed on whether Russia is set to proceed with an attempted invasion. On one side, United States officials have warned that an attack could happen at any time. Whereas, Ukraine’s President Volodymyr Zelenskyy remains steadfast that there is a lack of evidence to indicate Russia will make a move.
Nonetheless, it appears investors are not taking any chances and are increasing their exposure to a risk-off hedge.
This is supported by other gold miners, beyond Regis Resources, experiencing share price appreciation today. Some names include Evolution Mining Ltd (ASX: EVN), Northern Star Resources Ltd (ASX: NST), and Newcrest Mining Ltd (ASX: NCM).
What else?
Regis Resources recently appeared at the Bell Potter Unearthed conference. In its presentation, the company highlights a ‘step change’ in gold production in FY22. This was put down to its 30% interest in Tropicana, a 2.3 million ounce resource North-East of Kalgoorlie.
The mining company shared production guidance of 120,000 ounces to 135,000 ounces in FY22. Additionally, Regis expects this to be at an all-in sustaining cost of A$1140 to A$1230 an ounce.
Finally, the Regis Resouces share price is still down 43.6% over the last 12 months.
The post Why is the Regis Resources (ASX:RRL) share price having such a stellar start to the week? appeared first on The Motley Fool Australia.
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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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