ASX 200 gold stock Regis Resources is tumbling 12% today. Here’s why

S&P/ASX 200 Index (ASX: XJO) gold stock Regis Resources Ltd (ASX: RRL) is plummeting after the company dropped its full-year production guidance following a disappointing March quarter.

The Regis Resources share price is currently $2.15, 11.16% lower than it was at Friday’s close. It hit an intraday low of $2.13 a share earlier this morning, a 12% drop.

For comparison, the ASX 200 is up 0.34% right now.

ASX 200 gold stock tumbles on guidance downgrade

It’s a rough day for those invested in ASX 200 gold stock Regis Resources. The company has today dropped its full-year production guidance to between 450,000 ounces and 470,000 ounces while its all in sustaining costs (AISC) have risen to $1,795 to $1,845 an ounce.

It previously tipped its financial year 2023 production to come in between 450,000 ounces and 500,000 ounces at an AISC of $1,525 to $1,625 an ounce.

The downgrade came on lower-than-expected gold production in the March quarter, as well as changes to mine schedules and inflationary pressures. The company produced 103,728 ounces of gold over the first three months of 2023.

Its disappointing production was largely due to the slower-than-expected ramp-up of the Duketone Garden Well South underground, unplanned maintenance at the Rosemont process plant, lower underground performance at Tropicana, and wet weather events.

It also lifted its growth capital forecast to $195 million to $205 million today – up from $180 million to $190 million.

On a positive note, all non-weather-related issues have since been rectified. The company’s production is back on track in the early part of the current quarter.

Regis Resources managing director Jim Beyer commented on the update driving the ASX 200 stock lower today, saying:

The performance in the March quarter was below expectation, however, we remain on track to deliver the long-term plans for the company.

Over the last two years we have been investing heavily in our existing operations for a future of growth. We are coming to the end of that investment period and looking forward to entering the cash build phase over the June quarter.

Not to mention, the company’s cash and bullion balance lifted $53 million last quarter to $204 million. That includes a $67 million tax refund.

Regis Resources share price snapshot

Today’s fall included, the Regis Resources share price is still 4% higher than it was at the start of 2023. Though, it has fallen 11% over the last 12 months.

Comparatively, the ASX 200 has gained 6% year to date and has slumped 2% since this time last year.

The post ASX 200 gold stock Regis Resources is tumbling 12% today. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper 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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