The Regis Resources Limited (ASX: RRL) share price was a poor performer in June.
During the month, the gold minerâs 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. Regisâ production has been impacted by absenteeism and labour availability problems.
And while it hasnât 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 companyâs 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 âTwiggyâ 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, Forrestâs 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.
The post Why did the Regis Resources share price sink 35% in June? appeared first on The Motley Fool Australia.
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More reading
- These are the 10 most shorted ASX shares
- Here are the 3 most heavily traded ASX 200 shares on Friday
- Why Austal, Mesoblast, Regis Resources, and Zip shares are charging higher
- ASX 200 midday update: Regis Resources jumps, BHP and Rio Tinto drop
- Regis Resources share price jumps 11% amid Twiggy Forrest raid
Motley Fool contributor James Mickleboro 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 Scott Phillips.
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