Regis Resources share price charges higher on record gold sales

The Regis Resources Limited (ASX: RRL) share price is up 4.1% in early trade.

Regis Resources shares closed yesterday trading for $1.59 and are currently trading for $1.67.

This comes following the release of the ASX gold miner’s full-year results for the 12 months ending 30 June (FY22).

Highlights below.

Regis Resources share price leaps higher on gold sales

• Record gold sales of $1.02 billion, up 24% from FY21
• Earnings before interest, taxes, depreciation and amortisation (EBITDA), after adjustments, of $336 million, down from $403 million in FY2021
• Statutory net profit after tax (NPAT) $14 million, down from $146 million the prior year
• Final fully franked dividend of 2 cents per share declared
• Cash and bullion of $231 million as at 30 June

What else happened during the year?

Regis Resources recorded 439,310 ounces of gold sales fetched at an average price of $2,312 per ounce.

The miner reduced its hedging by 100,000 ounces over FY22 to 220,000 ounces as at 30 June. Approximately 75% of gold sold is exposed to the spot gold price.

Atop record sales, the Regis Resources share price also could be getting a lift as the miner reported achieving record gold production over the 12 months of 437,000 ounces at an all-in sustaining cost (AISC) of $1,556 per ounce.

The company said the decline in EBITDA and the EBITDA margin of 33% was partly due to $74 million of non-cash cost adjustments relating to its stockpile inventory.

Statutory NPAT, meanwhile, was hit by $60 million of non-cash post tax cost adjustments relating to stockpile inventory and surrendered exploration leases.

Regis had a net debt position of $69 million as at 30 June.

Investors wanting to grab the final dividend have until 12 October, when the stock trades ex-dividend.

What did management say?

Commenting on the FY22 results sending the Regis Resources share price higher today, managing director, Jim Beyer said:

FY22 was a year of consolidation for Regis. We invested heavily at both Tropicana and Duketon to set the company up for its growing production and cash flow profile. The financial performance was significantly impacted by a combination of the ongoing impacts of COVID and inflationary cost pressures in particular during the second half of the financial year.

The considerable investments made in FY22 across both mining and processing, positions the company to further increase production and operating cash flow going forward.

What’s next?

Regis Resources provided guidance for FY23 of 450-500,000 ounces of gold at an AISC of $1,525 to $1,625 per ounce.

Looking ahead, Beyer said, “In FY23, underground production at Duketon will increase with commissioning of the Garden Well South underground operation, while at Tropicana, completion of the Havana cutback will expose higher grade open pit ore.”

Regis Resources share price snapshot

The Regis Resources share price is down 13% in 2022, compared to a year-to-date loss of 8% posted by the All Ordinaries Index (ASX: XAO).

Comparing apples to apples, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down 21% this calendar year.

The post Regis Resources share price charges higher on record gold sales appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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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